Entrepreneurship

The ability to start, organize and run a business enterprise by overcoming all the hurdles
and trying to maximize the profit is known as entrepreneurship. Starting a new venture is
the best example of entrepreneurship. T

As per economics, entrepreneurship is based on the profit earned with the help of land,
labor, natural resources, and capital. It plays a huge role in the development of a country
in this continuously changing world and competitive global market.

Who is an Entrepreneur?
A person who can establish, administer, and succeed in a new venture or start-up along
with the possibility of loss, to make more and more profit, is called an entrepreneur. The
entrepreneurs are known as the innovators who replace the old inventions with new ones
for the comfort of society.
Characteristics of Entrepreneurship

The main aim of all the businesses is to earn huge profits and increase the value of the
shareholders. Entrepreneurs hire skilled and professional human assets but not all of them are
successful. There are certain characteristics that make entrepreneurship successful. Some of
them are given below

o Ability to Take a Risk

There is always the possibility of having a loss in a new venture. So an entrepreneur
must be ready to bear a considerable amount of failure risk. For this purpose,
he/she needs enough courage and the ability to evaluate and take the risks, which
is the most important quality of an entrepreneur.
o Innovation
Innovation is one of the most demanding characteristics for successful
entrepreneurship to adapt to the changing business environment. Entrepreneurs
should be highly innovative to think of new and unique ideas, start a company,
and make profits. This innovation or change can be related to the launch of a new
product in the market or introducing a process that can do the same work more
effectively and efficiently.
o Visionary and Leadership Quality
An entrepreneur must have a clear vision of his/her start-up and ideas. Other than
this, leadership skills are also highly required to guide the employees and bring
harmony to the organization to achieve success.
o Open-minded
An entrepreneur must have the ability to convert every circumstance into
 an opportunity and use it for the company's benefit. For this purpose, the
entrepreneur must be open-minded. For example, the online transaction
company Paytm recognized the gravity of demonetization and accept the market
requirement of online transactions. To convert this opportunity into benefit, the
company expanded its business at a huge level by massive advertisement and
understanding the effect of the situation at the right time.
o Flexible
An entrepreneur should have enough flexibility to adapt to the changing business
environment and various situations. A business person should be always ready to
make changes in the products and services whenever required as per
the customers' tastes and preferences. Such an attitude helps in defeating the
competitors and attracting a huge number of customers.
o Know Your Product
For successful entrepreneurship, the owner of the company should have the proper
knowledge about the product and services that the company is offering. The owner
should also be aware of the latest trend and changes in the market to fulfill the
consumers' demand.
Types of Entrepreneurship

There are four main types of entrepreneurship which include the following:

1. Small Business Entrepreneurship

It includes all the businesses which are run and operated on a small scale, for
example, grocery store, carpenter, consultant, electrician, travel agent, plumber,
hairdresser, etc. Small businesses are owned by individuals with the help of their family
members or local employees. Their amount of profit is not so high and is enough to feed
their family not to set up a large-scale business. These entrepreneurs invest in the business
by taking small loans from banks, friends, or family.

2. Scalable Startup Entrepreneurship

This entrepreneurship is focused on bringing a positive and big change to the
world. Their prime source of capital is those investors who promote the entrepreneurs
with unique ideas and plans. Such entrepreneurship encourages scalable business and
experimental models so the appointment of the best and most deserving employees
can be done. This research-based model demands more venture capital to run the
business.
3. Large Company Entrepreneurship
These companies are run and operated at a very large scale and have their branches in
different places. They have a defined life-cycle. The main strategy of these companies is
to grow and sustain in the market by offering new and innovative products to the
customers. In most cases, these products are related to their main product. Large
companies are always aware of changes in technology, customer preference, and
taste, new competition, etc. These conditions create pressure on these companies to
use an innovative idea not only to manufacture the products but also to sell them to add
new customers and compete with other sellers. For this purpose, these companies either
buy an innovation enterprise or try to manufacture the products internally.

4. Social Entrepreneurship
Social entrepreneurship is aimed at producing those products and services that help in
solving the problems and issues of society and fulfilling social needs. These
entrepreneurs are focused on serving society not on earning profits.

Importance of Entrepreneurship

Entrepreneurship is very important not only for individuals but also for the whole
economy. It helps in increasing the GDP of a country and also improves the Human
Development Index (HDI). It promotes technology and modernization in the country.
Some of the vital roles played by entrepreneurship are as follows:

o Creation of Employment
One of the major importance of entrepreneurship is the creation of job
opportunities in the economy. It helps the un-experienced and fresher to get an
entry-level job not only to improve their resume but also to get experience,
training, and skills.
o Innovation
Entrepreneurship supports innovative ideas and plans. It provides new product
ventures, technology, services, market, etc. to the society which led to the
development of a nation and increases the standard of living. The innovation
saves time, money, and resources.
o Impact on Society
The large and diversified employment opportunities led to the development of
society. It supports the livelihood of the society with higher expenditure
on education, health, and sanitization, fewer slums, reduced poverty, etc. In
short, entrepreneurship takes a company towards a high quality of community life.
o Increase Standard of Living
By providing employment opportunities and increasing income, entrepreneurship
helps in improving the standard of living of a person. Here, the standard of living
means, more consumption of goods and services by an individual or household for
the betterment of life.
o Supports Research and Development
Before launching a new product or service into the market, it is must to do proper
research and testing to avoid any market uncertainty. For this purpose, the
entrepreneur discharges finance to research institutions and universities which
further helps in the promotion of research, general construction, and development
in the economy of a country.

Barriers to Entrepreneurship
Every entrepreneur establishes a start-up with the aim of making profits and defeating its
competitors. But it is not as easy as it seems. There are lots of issues, problems, or barriers
that can arise and affect the smooth running of the business. Some of the major barriers
to entrepreneurship are as follows:

o Environmental Barriers
The environment has an impact on the entrepreneurs also. They can be related to the lack
of resources or any other effect of nature. Various environmental barriers are as under:
o Non-availability of raw materials
o Shortage of skilled labors
o Change in technology
o Poor infrastructure
o Natural Calamity
o Financial Constraints
The availability of finance is one of the most common barriers that can affect
entrepreneurship. Poor management, delay in decisions, ineffective & inefficient
personnel, poor performance, etc. led to a delay in the source of finance.
o Personal Barriers
There are some personal barriers that can leave negative impacts on entrepreneurship.
These barriers are:
o Lack of confidence
o Lack of motivation
o Lack of patience
o Fear of failure
o Inability to dream
o Society Barrier
Sometimes society can also be a hurdle for entrepreneurship. These barriers are as follows:
o Entrepreneurial behavior
o Financial instability
o Socio-cultural norms
o Political Barrier

The political party and political conditions also play a major role in the economy
and business of that area. The political barriers include:
o Government's taxation policies
o Government's interest in the economic development
o Government's incentives and concessions