Concept of Entrepreneurship
You may be speculating why people consider entrepreneurship even though they know that it brings a huge amount of risk for those who initiate it. Individuals embrace entrepreneurship for a variety of reasons. A few want to bring something new to the world while many want to work for themselves. Entrepreneurship gives them the ability to give employment to others. You must have seen your friends highly talented and skilled but working for someone else. If you are equally or more potential than your friends but do not want to work for someone else, the entrepreneurship is the right choice for you. Before we dive deep into the discussions on what is entrepreneurship, it is important to understand the concept of Entrepreneurship and why individuals show interest in entrepreneurship.
Characteristics of Entrepreneurship
Winning as an entrepreneur is not only about having great ideas and enough money. Many people misunderstand that entrepreneurship is possible if they just have money which is not true. If you want to become a genuine entrepreneur, you must possess certain traits that are necessary for the efficient execution of duties related to the business. Remember if you do not have these skills, you can learn them over a period since they are essential for success in any business. Entrepreneurship is considered by the below-mentioned features:
- A clear understanding of product or service
- Dynamic nature of the functions
- Economic orientation in everything they do
- Innovation is the key
- Risk bearing is inevitable
- Profit potential
- Possess basic Money Management Skills
Importance of Entrepreneurship
Entrepreneurs are often considered as the national assets to the maximum possible extent as they can activate the production and consumption cycle to keep the economies alive. Entrepreneurship is the vibrant process of generating incremental wealth and inventing matters of value that have an impact on the welfare of an entrepreneur. It offers civilization with an immense amount of goods and services and enriches the growth of societal welfare. The key significance of entrepreneurship is the innovation of job prospects, innovation, and enhance the economy. The image shown below exhibits why Entrepreneurship is important.
Types of Entrepreneurship
Even though entrepreneurship is the whole process of building, launching, and operating a business, there are many distinct types of entrepreneurship. Individuals have differing ambitions and ideas for the kind of businesses they want to build. Everybody manages their business based on their individuality, abilities, and attributes. Some individuals think that with hard work they can find victory, while others may use capital to help them get there. For some entrepreneurs, profits are less valuable than providing a social good. Even If every type of entrepreneur encounters similar encounters, they may prefer to tackle them in their way. Each type of entrepreneur sees disputes exclusively and has different means to overcome them. In this section, let us see some of the important types of entrepreneurship pursued by individuals. There are innumerable interpretations of what is entrepreneurship and types of entrepreneurship. Below is the list of the most common types of entrepreneurship.
Let us quickly understand each one of them.
- Technological Entrepreneurship
The individual who pursues technological entrepreneurship is popularly known as Technopreneurs, who make the best use of technology to come out with innovative products and services. They redefine the way technology can be leveraged to solve individuals’ problems and ease their life. The products and services introduced by Technopreneurs are backed by recent and trending technologies.
Example: Wipro, Infosys, Tata
- Cultural Entrepreneurship
Those who initiate cultural entrepreneurs are individuals who will have a lot of interest in cultural change. They run the business to promote culture, generate revenue, and use the same for the promotion of culture. Spiritual tourism is the best example.
- Opportunistic Entrepreneurship
A proverb goes “Hit the iron when it is hot” goes rightly with the opportunistic entrepreneurs who wait for the right opportunities and the movement they find it, they become active to pursue their entrepreneurial goals.
Examples: Amazon, FedEx, Swiggy, etc
- Acquisitive Entrepreneurship
This type of entrepreneurship discovers from the compilation of discernible features and skills that lets as well as enhances the productivity of the business and other related capabilities is known as Acquisitive Entrepreneurship. It provides something that is of new value, a good environment, and achieves the facilities technically. It improves to outlast the business in this world of rivalry. The underscored point is that some disappointments never stop them from discovering and creating new skills but also inspire them to figure out such new things all the time.
Example: Shutterstock is the best example for Acquisitive Entrepreneurship
- Incubative Entrepreneurship
Generating new business ideas in the existing business is known as Incubative Entrepreneurship. The employees can come up with new business ideas considering the existing business models and practices.
Example: Nokia, Microsoft, Google, and Apple always discover new technologies and design a wide array of service products for the markets.
- Imitative Entrepreneurship
This is types entrepreneurship in which an entrepreneur reproduces an existing product or service that is already marketed. Franchise business is the best example of imitative entrepreneurship.
Example: Pizza Hut, McDonald’s, Café Coffee Day
- Cyber Entrepreneurship
As we already know, the internet is a treasure of opportunities for individuals, business organizations, and society. The Internet has made it possible to run business over computers and smartphones. In cyber entrepreneurship, the entrepreneur identifies, builds, operates business over the internet connecting people spread across different geographical locations. eCommerce sites are the best examples.
Examples: Amazon, Flipkart, eBay, Swiggy Ola, Uber
- Social Entrepreneurship
Social entrepreneurship is a kind of entrepreneurship in which individuals identify social problems and then apply entrepreneurial skills to solve those problems for social change. The social entrepreneurs in their true sense, work for building a better world.
Examples: NGOs, Foundations, Trusts, Charitable Institutions
In this kind of entrepreneurship, an employee performs entrepreneurship inside an association to translate a feasible idea into a business chance. These employees can even be managers in an outfit who are encouraged and innovative sufficient to invent while holding up to the risks engaged in entrepreneurship of any type. Intrapreneurship is often characterized as Corporate Entrepreneurship, where there are proper structures are in place to promote the likelihood of success and growth. This is a great system for the corporate employees who feel demoralized by the run of the mill endeavours and obligations. These employees often look for opportunities to transform in the perspective of the mechanism, the product, or the procedures to bring about a positive change in how things are done within the association. The absence of such prospects may affect them to leave the organization and start pondering how to become a profitable entrepreneur. Though, when developed, these employees can bring about profits and tougher procedures within the organization. This is a win-win situation, both for the business and the worker.
We can also consider entrepreneurship as the act of entrepreneur takes to transform factors of production to something of value for humankind. So, an entrepreneur may have an idea, but the entrepreneurship is the inclination to accelerate that idea into action. Consequently, we see the entrepreneur as a pioneer, a foundation of employment, and an originator of new products and services.
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