Learn All About What Is Entrepreneurship?

What is Entrepreneurship?

What is Entrepreneurship?

Entrepreneur is a topic related to small business management. In this article we will learn that what is meant by entrepreneurship?

An entrepreneur is someone, who establishes a new business, accepting the highest risk of losses, in the desire for rewards. The setting-up of a new business with new ideas, known as entrepreneurship.

The concept of entrepreneurship, for the first time established in the 1700s - its meaning and definition were developed after that.
Many people think of entrepreneurship as starting their own business. Many economists think that starting a business is a little different.

According to some economists, an entrepreneur is a businessman, who takes the risk of starting a new business plan in the hope of a profit. Some experts see it as an innovative business venture that markets its ideas. Some economists say that businesses survey the market and provide what they need. Entrepreneurs who identify the new needs of the people and execute a new business plan, fall into the category of entrepreneurs.

The economist Joseph Schumpeter (1883-1950) analyzed, how innovation and creativity in business create change. Schumpeter described business as a force for "creative destruction." The business combines new and old factors to create new ones. In this way, it helps to abandon old industries and establish new ones. New ways of doing business take away old ways.

Business expert Peter Dirker (1909-2005) furthered this idea. He described the entrepreneur as someone who seeks change. Sees change as an opportunity and seeks to take advantage of it. The growth of the business world is due to entrepreneurship. The journey of advancement from the typewriter to the modern computer is an example of progress in the field of communication.

Entrepreneurship is an essential component of development. All economists today agree that the basis of business growth is entrepreneurship. In the developing world, successful small businesses are a source of employment and increase income. Are the cause of poverty reduction. Government policies play a key role in business development in third-world countries. The government encourages business, by providing interest-free loans, subsidies, tax breaks, and other benefits.

The Business and Industry Advisory Committee of the Organization for Economic Co-operation and Development (OECD) said that promoting entrepreneurship is important. Entrepreneurship policies create jobs. These policies quicken the journey of economic growth. The risk of business loss can be reduced with the cooperation of government officials. Business protection can be provided through government laws. The country's laws on property rights and the competitive market system should be conducive to business.

The culture of an area or community can affect business. The entrepreneurial potential of a community depends on social attitudes. Different levels of entrepreneurship can arise due to cultural differences. Social differences affect the profit and loss of a business. A community that respects skilled people and puts them at the forefront. It is also possible to discourage business in such a community. A culture or policy that elevates a self-made individual or entrepreneur can encourage people to pay more attention to business.