Concept of Entrepreneurship
The aptitude and preparedness to create, plan, and manage a business enterprise—along with all of its uncertainties—in order to turn a profit is what is meant by entrepreneurship. The setting up of startups is the most visible example of entrepreneurship.
In terms of economics, entrepreneurship involving land, labor, raw materials, and capital can be profitable. The entrepreneurial vision is defined by research and taking risks, and it is an essential aspect of a country’s ability to prevail in a world market that is always evolving and becoming more competitive.
Who is an Entrepreneur?
A person possessing the skills and drive to launch, manage, and be successful in a new enterprise while taking the risk involved is referred to as an entrepreneur. The launch of a new company venture is the best example of entrepreneurship. The market is opened up to new ideas by entrepreneurs, who often get recognized as innovators or sources for new ideas.
Entrepreneurship: A Solution to Society’s Problems
Entrepreneurship comes with a lot of great perks and rewards, apart from being a solution to society’s problems. The major solutions to this are pointed as follows:
- Satisfy the needs of people
- Generates employment
- Contributes to the development of the economy
- satisfaction to grow
- Develop leadership
- Adds value to society
- Reconnects and assists people
- Formation of capital
- Balanced regional development
- Improvement of per capita income
- Enhancement of standard of living
- National self-reliance
- Weaken the evil effects of monopoly
- Training for the next generation
- Satisfy the needs of people: Entrepreneurs solve many problems and bring a product or service to the world that people need to satisfy their desires.
- Generates employment: Entrepreneurs have the opportunity to get paid well. In addition to this, they can provide a livelihood to many of the unemployed in society.
- Contributes to the development of the economy: Entrepreneurs are forced to learn, change, adapt, get tough, and innovate, which allows the industry to grow and contribute to the development of the economy.
- Satisfaction to grow: Entrepreneurship fulfills the inner desire of entrepreneurs to prove who they are. It gives them satisfaction and helps them grow at a remarkable pace.
- Develop leadership: Entrepreneurship is rewarding when you mentor and train new hires and then witness their development and growth to become leaders in the industry. The skills of the people are very well developed through entrepreneurial activities.
- Adds value to society: Entrepreneurship enables the entrepreneur to add value to society. The products and services came into existence because of the efforts of entrepreneurs.
- Reconnects and assists people: Entrepreneurship helps entrepreneurs reconnect with and assist people. This unique and remarkable opportunity allows entrepreneurs to identify society’s needs and accordingly formulate their business policies and programs.
- Formation of capital: Entrepreneurs’ efforts to mobilize capital result in motivating investors to divert their idle savings to industrial securities. Investment of public money in the industrial sector helps the country use such resources for productive purposes. The growth rate of capital formation will increase, which is highly essential for the rapid economic development of a country.
- Balanced regional development: Entrepreneurs help to remove regional disparities by setting up industries in backward areas. This is because the government extends various concessions and subsidies to entrepreneurs who take the initiative to set up industries in underdeveloped regions.
- Improvement of Per capita income: Entrepreneurs possess the capacity to convert latent and idle resources into goods and services. This will increase the national income and wealth of a nation. This also leads to an increase in the net national product and per capita income of the country.
- Enhancement of Standard of Living: The initiative taken by entrepreneurs to set up industries helps in removing the scarcity of essential commodities. New, varied, and qualitative products would be manufactured to suit the requirements of different segments of the market. The goods are made available at a lower cost with large-scale production, which increases the purchasing power of consumers. All this leads to an enhancement of the standard of living for the people.
- National self-reliance: Entrepreneurs help manufacture indigenous substitutes for imported products, which reduces dependence on foreign countries. There is also the possibility of exporting goods and services, which leads to foreign exchange earnings for the country. This ensures economic independence, and the country becomes self-reliant.
- Weaken the evil effects of monopoly: The increasing number of entrepreneurs helps in the dispersal of economic power into the hands of many efficient managers of new enterprises. Thus, the increased number of enterprises helps weaken the evil effects of monopolies.
- Training for the next generation: Entrepreneurs help train the next generation of entrepreneurs. Therefore, the gap in the continuity of the enterprise is removed, and industrial activities are undertaken without any interruptions.
Thus, entrepreneurs and their entrepreneurship are key to the creation of new enterprises that energize the economy and rejuvenate established enterprises. Further entrepreneurship gives a solution to many of society’s problems, such as scarcity of goods and services, formation of capital, concentration of economic power, dependence on imports, low per capita income and standard of living, regional imbalances, etc.
