Summary on Entrepreneurship
What is the definition of entrepreneurship and who is an entrepreneur?
We all have often seen so many entrepreneurs and great leaders who have established their own businesses. When we hear the term entrepreneur, we constantly start thinking of a great individual who has started or established their own ventures having great inner capabilities summed up of hard work, dedication, time, scarifies, and motivation on their own. This is valid, as the academic definition of entrepreneurship is meant by “The process of setting up a business or an organization with the right aim to make profits or provide services as for social needs.”
After having an idea about what Entrepreneurship it is now time to look at who is an entrepreneur.
An entrepreneur is a person who invests resources and assets in a new business venture, bears most of the risks, and reaps financial rewards in the form of profits and income. The entrepreneur is widely regarded as an innovator who introduces new ideas to extend their product portfolios and raise profits, as well as a decision-maker who formulates and implements appropriate plans in response to societal requirements, including those of their customers and employees.
The key role of Entrepreneurs
Entrepreneurs play an important part in the economy because they use their refined skill set to take their company to new heights by investing their time and money to meet market demands. Risk-taking is rewarded in the form of greater earnings and sales revenues, fame, and continuous business expansion in successful entrepreneurship. A business owner is also responsible for the following.
· Take leadership — Entrepreneurs who are attentive, and plan can demonstrate interest. Taking measures to start a business can also show real commitment.
· Being innovative: Entrepreneurs can demonstrate innovation by altering, adapting, and developing their products and company processes. When starting a company, being innovative may entail adapting current company concepts and goods.
· Identifying opportunities — Entrepreneurs must be able to reach out and recognize opportunities, such as which new goods to launch and which areas to develop into. When it comes to launching a business, opportunities refer to coming up with a company idea and finding opportunities to put it into action.
· Managing resources — Entrepreneurs must be skilled at organizing resources, which means they must be able to handle authority, cash flows, facilities, products, and any other business resources effectively. When launching a business, it is critical that the entrepreneur organizes each resource efficiently.
Types of Entrepreneurs
There is no such thing as a one-size-fits-all approach to entrepreneurship. There are various types of business and organization, as well as many types of entrepreneurs. The seven most prevalent types of entrepreneurs are listed below. Which personality type — or a mix of personalities — are you?
· Home-based business — Entrepreneurs that work from home are self-employed. They operate their company on their own or with a small number of staff, with their headquarters being their own house. Working from home offers these entrepreneurs flexibility and control, as well as the ability to choose their own schedules, increased productivity. There is no storefront, no street advertising signs, and no customer parking for these enterprises, and even if they could market it's all been digitalized. Examples — Online bookstores, Freelance assignment writers, Graphic designers.
· Based on the internet — Internet-based entrepreneurs do business entirely online and rely on virtual technologies to support their operations. A website can be used to deliver a service or sell a product. Some internet-based enterprises can also be run from home. Example — Virtual assistants, as well as marketplace sites like eBay and Amazon, and AliExpress, are examples.
· Lifestyle — Lifestyle entrepreneurs can make money from a cash-generating activity or even build a business based on interest. These enterprises are not designed for rapid expansion and offer a range of a small number of people. Example — A used book business or a modest market booth offering homemade baked products are two examples.
· Exceptional potential — High-potential entrepreneurs typically run businesses with a workforce of 20 to 500 workers. These businesses are frequently fast-paced, have rapid growth rates, and generate cutting-edge technology and breakthroughs. Most of the high-potential entrepreneurs’ start-up activity is focused on technology and the internet. They are frequently able to obtain capital more quickly than other types of businesses. Example — Fast-growing technology corporations and major IT firms are two examples.
· Social business — Social entrepreneurs are driven by a desire to make a positive difference in the world. They start a company to provide solutions to social problems. They are also known as charity or non-profit entrepreneurs. Non-profit organizations, foundations, governments, and non-governmental organizations are common sources of funding for social entrepreneurs. Sarvodaya Shramadana Movementare and IDIRIYA are two examples of non-profit organizations in Sri Lanka.
· Venture — Venture capitalists invest in enterprises with both money and managerial and technological skill. Venture capitalists are cautious about the businesses they invest in, and up to 98 percent of startups seeking funding are turned down. Venture capital firms, in addition to individual angel investors and venture capitalists, exist. Examples include CBC’s Dragons’ Den and huge corporations such as those in Silicon Valley.
· Franchise business — Franchise-format entrepreneurs open a franchise or chain in their local business region with the direction and support of the franchisor. These entrepreneurs adhere to the franchise’s structures and have less independence and autonomy than other sorts of business owners. They do, however, benefit from the lower risk of being a member of a well-established franchise. Example — KFC, Mac Donald’s.
Entrepreneurial principals for Success in 2021
Entrepreneurs must be aware of and understand certain principles in order to commence a successful firm. Below are five principles that act as a useful guide for both new and growing entrepreneurs. According to research, these 5 concepts can be learned by experience although starting a business can be an educational experience itself.
1. Entrepreneurs should never expect to generate money quickly, and this should never be their goal — Before starting a new business, it is critical for entrepreneurs to conduct research. This implies that both parties should commit to experimenting with new business models in various ways. Furthermore, entrepreneurs must not be in a hurry to generate money, but rather must comprehend what entrepreneurship is all about. For example, it is preferable to come up with a game-changing idea than pursuing negative cycles, implying that entrepreneurs must be prepared to stay in the game for the foreseeable future.
2. It is always preferable to seek the appropriate opportunity, even if it takes time, then chasing after mirages — This means its always better to wait for the right opportunity and at the same time, grab opportunities when it arises. Of course, we are not advocating that business owners wait indefinitely for the right opportunity. Rather, the goal here is for entrepreneurs to ensure that they have the essential grip on things to seize on the chance, as well as an idea and a business model that will create opportunities if they are having trouble getting the company off the ground.
3. Make an investment in people and form effective teams — Entrepreneurs must ensure that they have the correct team in place before they begin their enterprise, just as they would with the earlier concept. After all, the enterprise will not be able to capitalize on the potential until it has a staff in place. Furthermore, entrepreneurs must guarantee that their workforce is enthusiastic, dedicated, and, most importantly, shares the founders’ vision and objective.
4. What matters is execution and delivery? — All talk and no action will get a new business nowhere, so it is critical for entrepreneurs to make sure they walk the walk and follow through on their promises.
Indeed, having a game-changing idea and a superb team in place is not enough until the entrepreneur understands the art of execution.
5. Self-actualizing visionaries are required of entrepreneurs — Great entrepreneurship is about listening to one’s inner voice, creating jobs and opportunities for others, being aware of community prosperity as a result of the venture rather than having a “me, me, me” mentality, and, most importantly, translating one’s vision into success.
Factors affecting Entrepreneurship.
Entrepreneurship is critical for every economy’s success. The rise of entrepreneurship is credited to countries that have prospered. As a result, governments and individuals all around the world seek to promote this idea. This article discusses the elements that contribute to the rise of entrepreneurship and, as a result, the growth of any given area’s economy.
1. Economic Factors — The economy, which encompasses elements like overhead facilities, money availability, labor & skills, and risk, among other things, has a significant impact on entrepreneurship. Having a strong set of economic considerations not only helps to lower production costs but also to increase profit. Risks are also increased when there are insufficient economic resources or a small market for goods and services.
2. Personal Aspects — Personal elements also have a big impact on business because they reveal how much spirit entrepreneurs have. Maturity, efficiency, leadership qualities, risk ability, and confidence, among other attributes, are required. If entrepreneurs possess these attributes, there is a strong likelihood that their business will be favorably impacted.
3. Factors of a Social and Cultural Nature — The existence of rational decision-making in society will aid in the creation of effective business judgments. In developing countries, issues such as education, training, and research are given a low priority. Religious and cultural elements, on the other hand, have a significant impact on an entrepreneur’s ability to make judgments.
4. Threats from competitors — In a culture where competition is healthy and contributes to general development, business thrives. In some circumstances, unhealthy rivalry stifles the development of entrepreneurship. Even with huge corporations in the pool, as we have seen, a plethora of small subsidiary sectors emerge. It is ideal for the government to provide conditions that promote healthy competition.
5. System of Support — The success of a firm is heavily influenced by the support system. Advisory services, expenditure, and financial institutions, all contribute to a strong support system. Additionally, the cost of inquiry and study must be considered. The environment’s support system is critical to the overall development of entrepreneurship.
6. Factors of Psychology — Psychological elements are frequently confused with personal factors. The truth, however, is quite different, and they play a vital role in success as well. In the sphere of entrepreneurship, the most important psychological aspect is an entrepreneur’s desire to succeed. Furthermore, the motivation of the person who is beginning or running the firm must be considered. It is one of the most underappreciated aspects that most people overlook. If one can master these attributes, one’s chances of success increase dramatically.
The Topmost Well-Known Entrepreneurs of all time from the past to the present, the most prominent entrepreneurs in history.
Oprah Winfrey, sometimes known as “Orpah” Gail Winfrey, is an American philanthropist and entrepreneur best known for her multi-award-winning broadcast “The Oprah Winfrey Show” (1986–2011). With a net worth of 2.7 billion dollars, she is the wealthiest African American of the twentieth century.
Steven Paul Jobs was an American business leader, industrial designer, investor, and media mogul who lived from February 24, 1955, to October 5, 2011. He was the chairman, CEO, and co-founder of Apple Inc., as well as the chairman and majority shareholder of Pixar, a member of The Walt Disney Company’s board of directors following Pixar’s acquisition, and the founder, chairman, and CEO of NeXT. Jobs, along with his early business partner and fellow Apple co-founder Steve Wozniak, is widely regarded as a pioneer of the personal computer revolution of the 1970s and 1980s.
William Henry Gates III is an American business entrepreneur, software developer, investor, author, and philanthropist who was born on October 28, 1955. He is a co-founder of Microsoft Corporation, where he served as chairman, CEO, president, and chief software architect, as well as being the company’s largest individual shareholder until May 2014. He is regarded as one of the most well-known entrepreneurs of the microcomputer revolution of the 1970s and 1980s.
Joanne Rowling (pen name J. K. Rowling) is a British author, philanthropist, film producer, television producer, and screenwriter who was born on July 31, 1965. Her most famous work is the Harry Potter fantasy series, which has won numerous honors and sold over 500 million copies, making it the best-selling book series in history. Rowling had full approval on the scripts and was a producer on the final films, and the books form the basis for a popular film series.
Disney, Walter Elias He was an American entrepreneur, animator, writer, voice actor, and film producer who lived from December 5, 1901, to December 15, 1966. He was a pioneer in the American animation industry, introducing various innovations in cartoon production. Disney has the record for most Academy Awards won by an individual as a film producer, with 22 wins out of 59 nominations. Among other awards, he received two Golden Globe Special Achievement Awards and an Emmy Award. The Library of Congress has listed several of his films in the National Film Registry.
Conclusion
Finally, entrepreneurship must be viewed as a means of self-transformation and, as a result, becoming a change agent. For this to happen, the entrepreneur must be able to meet the larger system’s environmental, social, and economic expectations while also driving themselves to achieve their goals. The most essential driver of success is the balance between inner desires and external expectations.
