ENTREPRENEURSHIP: The concept of entrepreneurship is thought differently in several contexts. Entrepreneur may be a person of who invents change and anyone who wants to figure for fulfilling his or her dreams. Scholars have defined the term over a period of your time in numerous ways as per their suitability and concept. for outlining entrepreneurship here are some prominent definitions; Peter Drucker (1964): An entrepreneur pursuits for change, responds thereto and avail opportunities. Innovation could be a precise tool of an entrepreneur hence a successful entrepreneur converts a source into a resource.
“Entrepreneurs use individual initiative, and interact in calculated risk-taking, to form new business ventures by raising resources to use innovative new ideas that solve problems, meet challenges, or satisfy the wants of a clearly defined market.”
“Entrepreneurship involves bringing about change to attain some benefit. This benefit could also be financial but it also involves the satisfaction achieving something by innovation.”
SMALL BUSINESS AND ENTREPRENEURSHIP
People fairly often use the terms “entrepreneur” and “small business owner” interchangeably. There are significant differences in these terms. On the identical time they’ll have much in common.
Creating wealth- a business established by an entrepreneur creates significant wealth which is except for several crores of rupees as compared to profit generated by small prosperous business units.
Time consumed for creating wealth-entrepreneurs do create wealth with in no time as compared to small business takes entire life to form that quantity of wealth; as an example, nowadays entrepreneurial businesses like Snapdeal, Whatsapp, Facebook and lots of more.
Risk factor – higher is that the risk higher is that the profit this theory applies to entrepreneurship business in addition as compared to the little business units which proceeds with minimum risk theory.
Innovative and concept creation- entrepreneurship support the speculation of creation of recent business idea which can be implemented differently as compared to traditional business practice.
CONCEPTS & FEATURES OF ENTREPRENEURSHIP
Entrepreneurs are the pioneers of innovative concepts within the business, they generate out of the box ideas and develop a vision a way to make that concept a reality and further they take high risk to implement their dreams to convert them to reality. They involve themselves in developing the business, but failure or success of venture also relies on calculating individual capacities, and evolving techniques to beat difficulties. Below are certain features which form the premise for the conceptual foundations of the entrepreneurship;
Calculated risk – the chance factor is high but should be always calculated. Successful entrepreneurs always take calculated risks as they put their time, resources and money at stake to fulfil their vision and dreams. They work restlessly to attain their goals and also put their personal reputation at stake.
Successful entrepreneurs also understand the importance of failures. They learn from their failures and convert them into success. the most important source of learning for them is from their own failures within the recent past.
Financial responsibility – Most of the time entrepreneurs are the primary generation business people and lack in terms of monetary stability. Businesses require finance and just in case of entrepreneurs it became essential for optimum utilisation of monetary resources to urge successful. For the start-up business is difficult to urge the loan sanctioned and generate finances from the open market even. Thus financial responsibility is one in all the important characteristics of the concept of entrepreneurship.
Creative and innovation– An entrepreneurship venture starts with innovation and creativity for thinking of product which isn’t available within the present market. Right from the conceiving of the concept of such product to generating the specified infrastructure and taking that product through all the stages of the merchandise life cycle it’s all where creative and innovation plays a awfully important role.
Management skills – Modern management concept focuses upon leading by example and here in entrepreneurship also it’s only those people that got success who know the way to guide from the front and the way to manage people at the rear simultaneously. they have to be clear in their communication of the business idea and be able to get that done through others also.
ENTREPRENEURSHIP AND INNOVATION
Creativity is that the ability to supply ideas while innovativeness is that the ability to device the suitable ideas. An entrepreneur must be creative and innovative so on be ready to solve problems, manage with business challenges, and execute activities successfully. An entrepreneur’s innovativeness is reflected within the following ways:
Conceptualising New Ideas: Initiative is that the ability to initiate the operations on a thought. Entrepreneurs are pioneers of latest business ideas. they are doing not watch for favourable conditions to act on a brand new idea. They act on them and solve obstacles and push to form the conditions favourable.
Be absorb Latest Information: An entrepreneur is often open for information and always a step ahead with its competitors in acquiring latest and new information which supports business.
Translating Ideas into a Business: Perfect ideas and knowledge don’t seem to be enough to form a business success.
An “average” idea acted upon and developed is much better than a “very good” concept that dies because it’s not followed up. Entrepreneurs are action-oriented and translate good ideas to actions.
ENTREPRENEURIAL SKILLS
Despite the very fact many researchers try and define the subject but there’s not well said set of skills that an entrepreneur must have. Here are certain skills which the successful entrepreneurs have are as under;
A. Personal Characteristics
The personality traits of an individual are first and foremost requirements behind the success of a person. Here are few traits considered significant for entrepreneur;
Initiative: Initiative is that the initiative towards the success only at the moment one learns to proceed further and resolve all the problems that arise within the path of success.
Optimism: It’s an advantage, and it’ll take you out from the failures and keep yourself motivated so you can also lead your team further to counter the matter.
Vision: One must be able to foresee the long run opportunities and challenges yet. This ability provides a grip to beat the competition and threats to the business.
Successful entrepreneurs always keep a detailed eye on the new trends in business and technology and react accordingly.
Risk tolerance: Entrepreneurship will take you to somewhere where path is filled with risk factors but it’s vital to be tolerant and think wisely the way to overcome from the unwanted problem.
B. Interpersonal Skills
Human resources is that the most significant asset of a successful organisation and as an entrepreneur, you’ve got to form your workforce always motivated and focused on the target. to own such a piece force one must have great interpersonal skills along with your workforce, customers, dealers, investors, and public normally. Some people are extraordinary in their interpersonal skills as compared to others, but it’s evident that this skill are often improved by way of learning and practising. the categories of interpersonal skills you will need include:
Appropriate communication skills: Communication is blood of the successful business and thus entrepreneur who wish to achieve success in his business venture must have appropriate communication skills which he will practice with investors, workforce, policymakers, community and most significantly customers.
Negotiation and listening: Being an honest listener can make or break your business as an entrepreneur. ensure that you’re skilled at active listening and wisely responding because every word you skip listening may lead your business down and each word wrongly spoken will take your customers or perhaps efficient workforce away.
Ethical behaviour: does one cope with people supported respect, integrity, fairness, and truthfulness? If you’re not good at reflecting ethical behaviour you will find it hard to create a cheerful, committed team of staff, customers or suppliers.
Leadership and Motivation: are you {able to} lead and motivate others to follow you and deliver your vision? And are you able to delegate work to others? As a successful entrepreneur, you’ll need to rely upon others to urge beyond a awfully early stage in your business – there’s just an excessive amount of to try to to all on your own!
Personal Relations: A successful entrepreneur has to be superb at maintaining personal relations with all those that is helpful in business in a technique or the opposite.
C. Critical and inventive Thinking Skills
As an entrepreneur, you furthermore mght must come up with new ideas, and keep choices about opportunities. However, creativity could be a skill that you just can develop if you invest the time and energy in following techniques;
Recognizing Opportunities: does one recognize opportunities after they present themselves? ready to} spot a trend? And are you able to create a thought to require advantage of the opportunities you identify?
Ability and Problem Solving: Are you ready to see situations from a spread of perspectives and are available up with original ideas? How good are you at springing up with sound solutions to the issues you’re facing? Tools like Cause & Effect Analysis, is simply a number of the problem-solving tool that you will have to be conversant in.
D. Practical Skills
Here are certain practical skills required for successful business;
Planning and Organizing: Effective planning is that the blue print for the success and similarly organising five M’s in an efficient manner will cause successful completion of the project. One must have the skills, skills, and capabilities necessary to realize goals. He also knows the way to develop a transparent, well thought-through business plan, including developing and learning from appropriate financial forecasts.
Decision Making: Decisions are sometimes right or wrong, on the other hand it’s accountability and responsibility of the one who takes decisions. How good are you at making decisions? One need knowledge in several areas when starting or running a business.
