Entrepreneurship

Entrepreneurship

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  By Dr. VandanaSingh (researcher & educator)
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   The word“entrepreneur” is derived from the French verb enterprendre, which means ‘to undertake’. This refers to those who “undertake” the risk of new enterprises.  An enterprise is created by an entrepreneur. The process of creation is called “entrepreneurship”. Entrepreneurship is a process of actions of an entrepreneur  Entrepreneurship is a process of actions of an entrepreneur who is a person always in search of something new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the enterprise.
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   A personwho undertakes the risk of starting a new business venture is called an entrepreneur in other words An entrepreneur is a person who is devoted to search something new and exploit the novel notions and visions into gainful opportunities by bearing the risk involved in the process.  Entrepreneurship is high-risk but also can be high-reward, as it serves to generate economic wealth, growth, and as it serves to generate economic wealth, growth, and innovation.  Entrepreneurship is high-risk but also can be high-reward, as it serves to generate economic wealth, growth, and innovation.
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   “Entrepreneurship isthe invention, innovation and adaption”________ Howard Johnson  “Entrepreneurship can be described as creative and innovative response to the environment.”___________ prof. Rao and Mehta. Entrepreneur------------person Entrepreneurship------process Enterprise-------------outcome
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   Related toinnovation: Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an individual to continuously evaluate the existing modes of business operations so that more efficient and effective systems can be evolved and adopted.  Risk bearing: The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation and implementation of new ideas.
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   Economic anddynamic activity: Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilisation of scarce resources. Since this value creation activity is performed continuously in the midst of uncertain business environment, therefore, entrepreneurship is regarded as a dynamic force.  Profit potential: Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.
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   Essential inall types of business and activities.  Entrepreneurship is a behaviour not a personality trait  Professional activity  Result of changes  Result of high ambitions  It is global phenomenon  Independent life style  Independent life style  Pursuit of opportunities
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   Creation ofEmployment- Entrepreneurship generates employment. It provides an entry-level job, required for gaining experience and training for unskilled workers.  provide Innovation- It is the hub of innovation that provides new product ventures, market, technology and quality of goods, etc., and increase the standard of living quality of goods, etc., and increase the standard of living of people.
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   Impact onSociety and Community Development- A society becomes greater if the employment base is large and diversified. It brings about changes in society and assists the organisation towards a more stable and high quality of community life.  Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by increasing the income. The standard of living means, increase in the the income. The standard of living means, increase in the consumption of various goods and services by a household for a particular period.
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   Supports researchand development- New products and services need to be researched and tested before launching in the market. Therefore, an entrepreneur also dispenses finance for research and development with research institutions and universities. This promotes research, general construction, and development in the economy.  Life line of nation  Increased profit
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  1. Idea Generation Togenerate an idea, the entrepreneurial process has to pass through three stages: a. Germination: This is like seeding process. Most creative ideas can be linked to an individual’s interest or curiosity about a specific problem or area of study. b. Preparation: Once the seed of interest curiosity has taken the shape of a focused idea, creative people start a search for answers to the problems. Inventors will go on for setting up laboratories; designers will think of engineering new product ideas and marketers will study consumer buying habits. c. Incubation: This is a stage where the entrepreneurial process enters the sub­conscious intellectualization.
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  2. Feasibility study:Feasibility study is done to see if the idea can be commercially viable. It passes through two steps: a. Realisation : After the generation of idea, this is the stage when the idea is thought of as a realistic creation. The stage of idea blossoming is critical because ideas by themselves have no meaning. b. Verification/validation : This is the last thing to verify the idea as realistic and useful for application. verify the idea as realistic and useful for application. Verification is concerned about practicality to implement an idea and explore its usefulness to the society and the entrepreneur.
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  Idea Generation Incubation Preparation Germination Incubation Realisation Feasibility Study Validation