Entrepreneurship is the act of being an entrepreneur. Which is French word meaning ” to undertake”. Entrepreneurs assemble resources including innovations, finance and business acumen in an effort to transform innovations into economic goods. This may result in new organizations or may be part of revitalising mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new business; however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization, it is referred to as entrepreneurship and may include corporate venturing, When large entities start spin-off organizations.
Meaning and Definition of Entrepreneurship
According to Joseph Schumpeter___” Entrepreneurship as defined essentially consists in doing things that are not generally gone in the ordinary course of business routine”.
According to F. Drucker___” Entrepreneurship occurs when resources are redirected to progressive opportunities not used to ensure administrative efficiency.” He further states that entrepreneurship is not natural, it is not creative. It is work. Entrepreneurship requires entrepreneurial management.
Characteristics of Entrepreneurship
- Economic Activity: It involves the creation and operation of an enterprise. Therefore, it is essentially an economic activity concerned with of value of wealth.
- Purposeful Activity: It is a purposeful activity of an individual or a group of individuals who seek to earn profits through the production and distribution of economic goods and services.
- Accepting Challenges: It means accepting challenges amidst risk and uncertainty. While accepting entrepreneurship as a career, the entrepreneur accepts the challenges of all odds and puts his efforts to convert the odds into viable business opportunities by pooling the resources together for building and running the enterprise.
- Decision Making: A decision is a course of action which is consciously chosen from among a multiple of alternatives to achieve the desired result. As entrepreneurship involves both risk and uncertainty, decision making is crucial on the part of the entrepreneurs to establish and run the enterprise successfully.
- Risk Taking: This feature implies assuming the responsibility for loss that may occur due to unforeseen contingencies of the future. Entrepreneur, by his deep insight and scientific approach, analysis the situation objectively and reduces the risk considerably on one hand and enhances the profit factor on the other.
- Dynamic Process: It thrive on the changing environment which brings new opportunities for business, Flexibility is the hallmark of a successful entrepreneur.