Entrepreneurship Meaning and Definition:
Entrepreneurship refers to the functions that are performed by an entrepreneur to establish an enterprise. In simple words, Entrepreneurship is an art to be an entrepreneur.
As a manager performs various activities for the management of an organisation similarly an entrepreneur implements the different process of Entrepreneurship to establish an organisation.
Entrepreneurship is a process which involves various activities to establish an enterprise. We can understand the meaning of entrepreneurship better from the following equation.
Entrepreneurship = Entrepreneur + Enterprise
(Process) (Person) (Object)
According to a Conference on Entrepreneurship held in the United States, the term Entrepreneurship was defined as follows:
“Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk-taking appropriate to the opportunity, and through the communicative and management skill to deploy human, financial and material resources necessary to bring a project to fruition.”
Although there are several characteristics of entrepreneurship, however, some of the main characteristics are explained below.
1) Decision Making:
A decision is the course of action which is consciously chosen 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 entrepreneurs to establish and run the enterprise successfully.
2) Accepting Challenges:
Entrepreneurship means always ready to take challenges especially in case of an uncertain situation. An entrepreneur gives is 100% to convert the odd situation into favourable opportunities.
This characteristic feature implies assuming the responsibility for loss that may occur unforeseen contingencies of the future. Entrepreneur, by his deep insight and scientific approach, analyses the situation objectively and reduces risk considerably on one hand and enhances the profit factor on the other.
4) Building Organization:
Organization building is the most critical skill needed for entrepreneurship as it facilitates the economic use of other innovation. Entrepreneurship presumes the initiative and skill of building an organization. It is by the delegation of authorities and proper leadership that the organization can be build up.
5) Skilful Management:
An entrepreneur role is very important for the effective management of an enterprise. He has to plan, research, organize, analyze, decide etc so that the organisation runs efficiently.
Two important characteristics of entrepreneurship, first doing things in a new and better way, which is the same as innovation and second is decision making under uncertainty. So innovation is one of the most essential characteristics of entrepreneurship.
7) Mobilization of Resources:
Resources are the help needed to carry out activities resulting achievement of the goal. They are difficult to find in the environment and required to be perceived, identified and mobilized by entrepreneurs to attain the business goal.
Entrepreneur vs. Entrepreneurship:
The term entrepreneur is often used along with entrepreneurship. But conceptually they are different, yet they are just like the two sides of the coin. Their differences are as follows:
- Entrepreneur refers to a Person, whereas Entrepreneurship refers to a Process.
- An entrepreneur is a Visualizer, on the other hand, Entrepreneurship is a Vision.
- An entrepreneur is a Creator, whereas Entrepreneurship is a Creation.
- An entrepreneur is an Organizer, whereas Entrepreneurship is an Organization.
- An entrepreneur is a Technician, whereas Entrepreneurship is Technology.
- An entrepreneur is Initiator, whereas Entrepreneurship is Initiative.
- Entrepreneur is Decision Maker, where as Entrepreneurship is Decision.
- Entrepreneur is Planner and Entrepreneurship is Planning.
- An entrepreneur is Leader and Entrepreneurship is Leadership.
- An entrepreneur is Motivator, whereas Entrepreneurship is Motivation.
- An entrepreneur is an Administrator, whereas Entrepreneurship is Administration.
- An entrepreneur is Communicator, whereas Entrepreneurship is Communication.
What is an Entrepreneur? Definition and Meaning