Enterpreneurship, Enterpreneur and Enterprise|| Dynamic Innovators
Entrepreneurship, Entrepreneur and Enterprise
Enterpreneurship:
The term Start-up and Entrepreneurship is being very common among the youths aimming for a prosperous future these days!
Entrepreneurship in itself is a very big term containing from a small shop ownership to the ownership of MNCs.Literally very big!
For the new kids on the block, it can be quite confusing as to what is the difference between an entrepreneur, an entrepreneur and an enterprise. Here we are going to look at the major differences and interrelationships between them.
Entrepreneurship is basically the process. The process of developing, organising and running a new business to generate profit while taking on financial risks.
Broadly speaking, entrepreneurship is turning your ideas into a business model and earning profit out of it by taking on all the financial risks.
Entrepreneurship has the potential to minimise the difference of income among the upper and lower economic class of society. Also, it has the potential to satisfy the personal thirst of success and prosperity. That’s probably the reason why the rate of increase of entrepreneurship in our country India has increased from 5.3% in 2020 to 14.4% in 2021 according to Global Entrepreneurship Monitor (GEM) India Report(21-22).
While aspiring entrepreneurs have the potential to earn massive fame and fortune by starting a successful business, entrepreneurship is not without its hazards.It is full of pros and cons.Here are some profits and loss of entrepreneurship.
Advantages of entrepreneurship
- Total control of the workplace.
- Work flexibility
- Potential of unlimited earning.
- Place for creativity.
- Experiment and research friendly.
- Provides room to follow your passion.
Disadvantages of entrepreneurship
- Financial risk
- Mental pressure and greater responsibilities
- Higher competition
- Uneven income
- Working long hours
Concept of Entrepreneur 
The word “entrepreneur” is derived from the French verb “entreprendre”. It means Undertaker, adventurer and projector.
Entrepreneurs basically are people who have ideas and who work to create a product or services that people will buy. Entrepreneur is the person who starts a business or venture to make profit taking on all the financial risks.
These are the innovators who come up with new ideas in the market and create the competition of being the best among their competitors!
An entrepreneur is not always someone who introduces new ideas but also the one who comes up with improved and advanced quality of products and services already in use.
Entrepreneurs come in all shapes, sizes and forms from a small shop owner to the owners of big business ventures and includes all those who have ambition to start a business and work for their own self.
Characteristics of Entrepreneurs:
1) Need for achievement(nAch) –individuals who are high in nAch are more likely than those who are low in nAch to engage in activities or tasks that have a high degree of individual responsibility for outcomes, require individual skill and effort, have a moderate degree of risk, and include clear feedback on performance.
2) Willingness to take risk- A willingness to take risks can give an entrepreneur a competitive edge. For example, opening a second shop where other business owners are afraid to open one could pay off with a loyal customer base. Taking out a loan could give the business owner the necessary start-up capital needed to fund his business.
3) Locus of control- individuals with an internal locus of control would be likely to seek entrepreneurial roles because they desire positions in which their actions have a direct impact on results.
4) Self-efficacy- self-efficacy can be seen as task-specific, self-confidence. An individual with high self-efficacy for a given task will exert more effort for a greater length of time, persist through setbacks, set and accept higher goals, and develop better plans and strategies for the task. A person with high self-efficacy will also take negative feedback in a more positive manner and use that feedback to improve their performance.
5) Flexibility- Most of the successful entrepreneurs measure the pros and cons of a decision and tend to change if the situation demands. They never feel reluctant to revise their decisions. They are people with an open mind without rigidity.
6) Innovativeness- Successful entrepreneurs are innovators. They constantly put their efforts in introducing new products, new methods of production, opening new markets and recognizing the enterprise.
7) Perseverance- Entrepreneur has got the quality of sticking to the job he decides to undertake. Once committed to a specific goal and course of action, entrepreneurs become absorbed in it. They personally solve the problems that come across their way while setting up the project. They also work sincerely until the whole project is successfully implemented.
8) Strategic Vision- Unlike routine tasks for which structures and processes provide a frame of reference, creation of enterprises deals with unmet needs and gaps that are relevant in the present and the future around which both competitive forces and uncertainty operate. Mitton (1989) suggests that entrepreneurs have a knack looking at the usual and finding the unusual. This would lead to what is commonly referred to as an entrepreneurial vision. Strategic vision in this context as future oriented goal setting, based on environmental analysis, for determining the content of enterprise action.
In addition to afore-mentioned characteristics of entrepreneurs, researchers have identified some other characteristics, those are decision maker, independent, arbitrageur, coordinator, positive self- concept, analytical mind, creative, interpersonal communication skill ability etc.
Functions of an Entrepreneur:
1. Function of initiation: The entrepreneur takes the initiative to start the business. (S)He has to make decisions with regard to production and marketing.
2. Function of choice of location: The entrepreneur has to locate the
business where production and marketing facilities exist or can be
created.
3. Function of innovation: The entrepreneur introduces new scientific findings and technologies; new use of products already known; or a new market for the same.
4. Function of coordination: The entrepreneur has to coordinate, direct and supervise the work and other factors of production.
5. Function of risk and uncertainties: The entrepreneur has to face risk and uncertainties and search for necessary alternatives. (S)he thinks, organises and operates the business and is responsible for losses or gains from the business.
Types of Entrepreneurs
Ramachandran and Ray (1998) described the typology of entrepreneurs based on outcomes of entrepreneurial ventures. Empirical evidence suggests the existence of the following four types of entrepreneurs.
1. Mobile Entrepreneur: This type of entrepreneur leaves the venture when it reaches the final stage of venture creation and looks for a new opportunity to create another one. They prefer to move from venture to venture. They are the true Schumpeterian entrepreneurs. etc
Examples: Mohan of good night.
2. Managerial Entrepreneur: This type of entrepreneurs prefers to
continue in the same venture by transforming themselves to fit the
changing demands of the matured organisation and business.
Examples: Fords of Ford Motors. etc
3. Innovative Entrepreneur: This type of entrepreneur creates an
entrepreneurial organisation by choice and design and remain
engaged in their pursuits of innovation and creation to come up with
novel products, technology and sometimes bring up new ventures
around the mother organisation.
Examples: Bill Gates of Microsoft. Etc
4. Empire Builder: These types of entrepreneurs go on creating a chain of new ventures one after another without losing the ownership control of them. In fact, they build on the strength of the existing ventures by using them strategically to promote the new ones.
Examples: J.N. Tata. Etc
An enterprise is the result of the process of entrepreneurship.It is a profit-oriented business organisation or company.
An enterprise can be a small shop or a company with many employees.
Enterprises operate to make a profit by producing goods and providing services.Then, they sell it to consumers to satisfy their needs and wants. Ultimately, the word enterprise is a synonym of business.
Types of enterprise:
Based upon the variables we are taking, enterprise can be of different types.
Considering the business size or no. of employees classify enterprise as-
Micro:less than 10 employees
Small:10-49 employees
Medium:50-249 employees
Large: more than 250 employees
And, based on legal status-
incorporate
Unincorporate
Examples of enterprise:Retail businesses, Manufacturing business, IT industries, Agri based firms, Automobile companies etc.
Comments
Post a Comment