ENTREPRENEURSHIP : A WAY OF GREAT THINKING

ENTREPRENEURSHIP: A WAY OF GREAT          THINKING

Entrepreneurship is the process of designing, launching and running a new startup, which is often initially a small business.

Entrepreneur

Who are Entrepreneurs?

Entrepreneurs are the person who senses the burning issue of society takes out the solution to these issues, make a profit out of the solution, execute it as business and make corrections in the solutions when needed according to the need of consumers.

What is Entrepreneurship?

Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit." While definitions of entrepreneurship typically focus on the launching and running of the startup, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand, or a combination of all of these."

A broader definition of the term is sometimes used, especially in the field of economics. In this usage, An entrepreneur is an entity which has the ability to find and act upon opportunities to translate inventions or technologies into products and services: "The entrepreneur is able to recognize the commercial potential of the invention and organize the capital, talent, and other resources that turn an invention into a commercially viable innovation." In this sense, the term "Entrepreneurship" also captures innovative activities on the part of established firms, in addition to similar activities on the part of new businesses.

The successful startups when grows with time, become a business. These startups sometimes grow at such an extent that they capture the whole of the market.

Traits of a Successful Entrepreneur:

1. Ability to plan:

Entrepreneurs must be able to develop business plans to meet goals in a variety of areas, including finance, marketing. production. sales and personnel.

2. Communication skills:

Entrepreneurs should able to explain, discuss, sell and market their goods or services.

3. Marketing skills:

Good marketing skills, which result in people wanting to buy goods or services, are critical to entrepreneurial success.

4. Interpersonal skills:

The ability to establish and maintain positive relationships with customers and clients, employees, financial lenders, investors, lawyers and accountants, among others, is crucial to the success of the entrepreneur's business venture.

5. Basic management skills:

Even if entrepreneurs hire others to deal with the day-to-day tasks of the business, entrepreneurs need to know whether their company has the correct resources.

6. Leadership skills:

The ability to develop a vision for the company and to inspire employees to pursue it is imperative for success.

Functions of entrepreneur:

There are various functions an entrepreneur performs. Few of the most important are discussed below:

1. Innovation:

Innovation and creativity are at the heart of the functions of an entrepreneur. Innovation implies doing new things or doing the same things in a new manner. It may be: Introduction of a new product or service, new methods of production, discovering new markets or finding a new source of material etc.

Under the context of the changing environment, the entrepreneur locates the most feasible opportunity for the venture as well as improved or distinct technology that gives competitive advantages or a new opportunity to prosperity.

Innovation is a creative means to add new utilities to existing situations or products. Entrepreneurship through innovation creates innovative products or operations for human society.

2. Taking Initiative:

This unique function of entrepreneurship provides our civilization with a wide variety of products, ways of actions, production techniques, etc. Therefore, taking initiative with such end and qualification is the prime function of entrepreneurship in every economy.

3. Risk management and Risk-Taking:

Entrepreneurship takes the risk for the new venture. For innovative actions in the field of production technology for new products in a volatile market and new raw materials used in production. Moreover, it also takes the risk for theft, robbery, snatching market fall and hooliganism that may be involved with new entrepreneurship. 

Though risk-taking is unavoidable, yet entrepreneurs prefer to take moderate risks in those situations, where they have some degree of control. They do not prefer situation which involves either extreme of risk or uncertainty.

4. Analyze Opportunities and Threats:

An entrepreneur has to be a seeker of opportunities. The environment may present a number of opportunities before an entrepreneur. He needs to analyze such opportunities from time to time and choose the most appealing one at the right time for creating a new venture. He should possess the capability and skills to formulate strategies for the new business venture, keeping in mind the threats being posed to the venture.

5. Preparing a Business Plan:

A business plan is a written document containing the details about  every aspect of the proposed business venture. It is a tedious task drafting a convincing and viable business plan. Preparation of the Business plan is necessary to convince the potential investors and financial institutions about the viability of the venture so as to get it funded and to provide a road map for the people internal to the organization.

6. Organization of the Venture:

The entrepreneur brings together various factors of production like capital, manpower, machinery, land and building etc. to start a venture. He needs to have a suitable skill to deploy suitable resources in the right activities at the right time in order to avoid wastage and to optimally utilize the resource in starting up the new venture

7. Development and Growth of the venture:

Many of newly established ventures are not able to survive for long. They require the active involvement of the entrepreneur during development and growth stage as well. During the growth stage of a new venture when it starts growing in size, an entrepreneur needs to delegate the routine activities to other colleagues/subordinates in the organization while providing strategic vision and direction to the firm as the leader.

8. Supervision and Control:

When routine matters are delegated to the sub-ordinates, it becomes imperative to have a suitable control mechanism in place so that the entrepreneur may track the overall wellbeing of the enterprise. Personal observation, reporting and more sophisticated techniques of control may have to be employed.

9. Decision Making:

Entrepreneurs has to decide upon equipment to be used quality, price and its variation, deficiency, capital structure, the feasibility of the project, organizational structure, philosophy of management, etc. that will guide, run and prosper the new venture or distinct attempt for entrepreneurship.

10. Technology Transfer and Adaptation:

Entrepreneurs throughout the world bring invented technology from different comers of the world and make it appropriate by making required adjustments for local conditions. This function of entrepreneurship involves identifying appropriate technology with market potentials and adapts it into the local environment. Sometimes, the technology uses indigenous materials that reduce cost and wastage of resources. This entrepreneurial function virtually makes the world

11. Fostering Autonomy:

Entrepreneurship is an exposure of creative faculty that provides personal satisfaction and independence. The unique freedom to think differently is the impetus for entrepreneurship. Thus, entrepreneurship Fosters autonomy to advent something new of value by the application of devoted efforts and time.

12. Social Responsibility:

Entrepreneurship with its innovative technology somehow promotes human efforts. It restarts closed industries with innovative managerial strategies and techniques. It also motivates new entrepreneurs and attracts them to engage into an entrepreneurial venture.

Entrepreneurship provides new products or ideas that give momentum and diversity into society. Therefore, entrepreneurship performs social responsibility that protects the welfare, benefit and economic gain of the society. It also promotes the community standard by providing jobs and amenities.

13. Public Relations:

Entrepreneurship is a new venture that requires social acceptance by the regulatory bodies and the public at large. The government, as well as the persons’ who will be subject to entrepreneurship, would be convinced through public relations to accept and to allow the entrepreneur to execute an entrepreneurial venture. 

History tells that many entrepreneurs were disregarded, coerced and even eliminated for their entrepreneurial activities. Failure is costly and therefore, public relation is a significant function of entrepreneurship.

14. Experience Sharing:

Entrepreneurship may spread in society through publishing and sharing its success stories. Thus, entrepreneurship holds workshops, industrial visits through which the entrepreneurial experience in different counties may be shared with a widespread adaptation of success. This function will benefit the economies of the countries as well as the world bodies,

15. Managerial Roles:

Entrepreneurs perform several managerial roles to keep their venture functioning with success. The roles are interpersonal roles that consist of a figurehead role, leadership role, and liaison role; informational roles that include recipient role, disseminator role, and the spokesperson role; decisional roles that consist of an entrepreneurial role, disturbance-handler role, resource allocator role, and the negotiator role. 

The entrepreneur also does the associated managerial functions such as planning, organizing, leading and controlling.

16. Balanced Economic Development:

Sustainable economic development requires a balanced development among various regions and sectors of a country. Every country tries to ensure such a situation that makes industrialization throughout the country “possible. Entrepreneurs make it possible by establishing business ventures in various parts of the country in various sectors of the industry.