Concept of Entrepreneur
Before exploring the idea of entrepreneurship, it’s critical to understand what an “entrepreneur” is and who qualifies for the role. An entrepreneur is a person who shows action by setting up a business to seize an opportunity and, in a position as the decision-maker, decides what, how, and how much of goods or services will be produced. An entrepreneur manages and oversees the business operations in addition to providing risk capital as a risk taker. In most cases, the entrepreneur is the only owner, a partner, or the person who holds the majority of the stock in a corporation. The equation given represents what an entrepreneur actually is, so if one wants to be one of them, one should follow it.
Business = Entrepreneur + Capital = Products + Clients
Concept of Entrepreneurship
The dynamic process of generating additional wealth is called entrepreneurship. This wealth is produced by those who take on the biggest financial, personal, and/or professional risks necessary to provide value for a good or service. The actual product or service may or may not be brand new or special, but the entrepreneur must find a way to add value by acquiring and allocating the appropriate talents and resources. Additionally, it was widely acknowledged that entrepreneurs act as agents of change, give businesses fresh, original ideas, and aid in their expansion and profitability.
As a result, entrepreneurship is a field of study and the result of complex socioeconomic, psychological, technological, legal, and other aspects. It combines financial resources, technological innovation, and human potential.
Differences between Entrepreneur and Entrepreneurship
Although the terms “entrepreneur” and “entrepreneurship” are sometimes used interchangeably, they have different conceptual meanings. The following are the differences between the two concepts, i.e., entrepreneur and entrepreneurship”:
| Entrepreneur | Entrepreneurship |
|---|---|
| 1. He is a person. | 1. It is a plan of action. |
| 2. He is an administrator. | 2. It is an administration. |
| 3. He is a risk-bearer. | 3. It is a risk-bearing activity. |
| 4. He is an innovator. | 4. It is a process of innovation. |
| 5. He combines factors of production. | 5. It is the process of using factors of production. |
| 6. He is an initiator. | 6. It is a step toward taking the initiative. |
| 7. He is a leader. | 7. It is nothing but leadership. |
| 8. He is a visualizer. | 8. It is a vision of business. |
| 9. He is a creator. | 9. It is a creation. |
| 10. He is an organizer. | 10. It is an organization. |
| 11. He is a communicator. | 11. It is communication. |
| 12. He is a technocrat. | 12. It is a technology. |
| 13. He is a decision-maker. | 13. It is decision-making. |
| 14. He is a planner. | 14. It is a plan. |
| 15. He is a motivator. | 15. It is motivation. |
| 16. He is a programmer. | 16. It is an action program. |
From the above, it proves that an entrepreneur is a person who unites all the factors of production, whereas entrepreneurship is a process of generating ideas and innovations that are converted into action. The entrepreneurial functions are collectively termed entrepreneurship. Without entrepreneurs, there is no entrepreneurship. It is the action part of being an entrepreneur.
