An Enterprise is a business-oriented organization formed especially so founders can pursue entrepreneurial endeavors for a profit. An enterprise has the purpose of attracting customers, selling goods and services and earning profit. Entrepreneurship refers to the process of creating a new enterprise and bearing any of its risks, with the view of making a profit. Entrepreneurship operates under an ecosystem called an entrepreneurship ecosystem. The ecosystem comprises of government programs and schemes which encourage entrepreneurship, non-governmental organizations that provide advisory services to entrepreneurs, and other organizations that promote and support entrepreneurship directly or indirectly. Entrepreneurship is not confined to starting a new business but it about facing challenges at each step. It is an important tool for bridging the gap between science and the marketplace, wherein a new enterprise is formed and new products and services are brought to the market.
Characteristics of Entrepreneurship
- Economic Activity: Entrepreneurship involves designing, launching and running a new business enterprise in order to earn the profit ensuring best possible use of resources. Business involves mobilizing of funds from buying and selling of products or services and entrepreneurship induces such processes in an economy.
- Creativity and Innovation: Entrepreneurship is about discovering new ideas and implementing it in business. Entrepreneurs continuously evaluate current modes of running a business and identifies new methods and techniques for operating the business effectively and efficiently. In entrepreneurship, we consider new ways of solving the existing problems and presenting the solution in most effective and innovative ways.
- Risk Bearing: “Willingness to assume the risk” is the essence of entrepreneurship without which he/she cannot succeed. It occurs due to the creation and implementation of new ideas. Such ideas are often uncertain, and so the result may or may not be positive and instant. Entrepreneurs engage in ‘never happened before’ projects and are always keen to experimenting projects which are unique and uncertain. This establishes entrepreneurs as risk-takers.
- Profit: The activity of entrepreneurship is undertaken with the sole objective of making the profit. It is also the reward of the efforts made and risk taken by the entrepreneur. Every business operating in the market have the solo objective of making profit. Entrepreneurial projects are also profit-focused.
- Leadership: An entrepreneur has a vision. However, it takes a lot of resources to turn that vision into reality. One of these resources are the people that the entrepreneur hires to perform various functions like production, supplying, accounting. Entrepreneurs has to undertake various roles while establishing a business, hence they need to have a leadership quality so that they have convince investors and other stakeholders about the roles.