What is Entrepreneurship? Definition, Importance, How to Become one?

Introduction

Nurturing a unique business idea and actively pursuing one’s aspirations has become a prevalent and empowering trend in contemporary times. We often follow our passion to create something new and try to make a living out of it. Sometimes, people looking for a job find it easy to start something of their own. Even people with stable jobs try to follow their passion besides their regular job.

All of these lead to entrepreneurship. You might want to know, “What is entrepreneurship?” and why is it important? This blog will explore all about entrepreneurship.

What is the Meaning of Entrepreneurship?

Entrepreneurship is the process of creating a business to make a profit. But, in reality, entrepreneurship involves more than that. It also means making significant decisions that will impact thousands.

Now, this brings us to the next question, which is, “What is the definition of an entrepreneur?”. An entrepreneur is a person who forges multiple businesses from the ground. An entrepreneur bears all the risks of forming an organisation. And they also take hold of most of the profits.

Check out our free courses to get an edge over the competition

What Is Entrepreneurship Development?

Entrepreneurship development enhances the expertise of an entrepreneur. The process focuses on strengthening the understanding of how to develop, maintain and organise your business. Key objectives of the procedure include the following:

• Acquiring the essential skills and qualities of an entrepreneur through distinctive methods.
• Recognising unique business ideas among future entrepreneurs.
• Enhancing self-employment through entrepreneurship.

Importance of Entrepreneurship

Now, let’s answer the question, “What is the need for entrepreneurship?” 

• Innovation
  Entrepreneurs are always motivated to create something new. Sometimes, this means something that will change the world for the better. New technologies, new ideas, and solving pertinent issues on a global scale are the fruits of entrepreneurship.
• Social Contribution
  Entrepreneurs contribute largely to society. The more affluent entrepreneurs pay considerable taxes, increasing national income and enhancing the nation’s development. Some entrepreneurs also positively contribute to various social and environmental issues.
• Job Creation
  Entrepreneurs create job opportunities by employing skilled and talented individuals across diverse roles. These recruitments strengthen the business while also addressing the burning issue of unemployment.

Advantages and Disadvantages of Entrepreneurship

Entrepreneurship has both positives and negatives. Let’s look at the pros and cons of entrepreneurship.

Advantages

• As entrepreneurship is self-employment at the core, you can work at your own pace and time.
• Often, entrepreneurs are fueled by their passion to start a new business. It means you can make a living out of what you love doing.
• A perfect entrepreneurial mindset and the ability to implement the business idea effectively can lead to earnings in large numbers.
• Entrepreneurial ventures mean total control, which enables quick decision-making by entrepreneurs.
• Entrepreneurship enhances creativity. As an entrepreneur, you are constantly motivated to innovate and devise new ways to make your business successful.

Disadvantages

• Entrepreneurship often entails single-handedly managing large teams, which can mean working long hours.
• For success as an entrepreneur, you must invest a lot of money upfront. If your business idea doesn’t work, it can be stressful, and it takes time to start getting substantial returns from your venture.
• Starting a new business means facing a lot of competition. Both big companies and other entrepreneurs are your rivals.
• Being an entrepreneur can be mentally and physically challenging. Your employees will always rely on you since you’ll make all the decisions.

Take up the MBA from GGU to learn more about entrepreneurship and business management.

What Are the Skills Required for Entrepreneurship?

Although anyone with a positive mindset and proper funding can become an entrepreneur, specific skills make successful ones stand out. 

• Communication
  Communication is a significant part of managing an entrepreneurial venture. It allows an entrepreneur to convey plans and ideas to employees and stakeholders. Additionally, being open to all the feedback you get is another essential aspect. So, active listening is equally crucial.
• Business Management
  One of the most significant skills required is business management. It enables entrepreneurs to make all the right decisions for the growth of the business. If you can use this skill effectively, you can ensure your business witnesses increased growth and profitability.
• Creativity
  Creativity is the skill that differentiates one entrepreneur from another. If you can think out of the box, you have a higher chance of success. In addition, if you can analyse a problem from different perspectives, it will help you in the longer run.
• Sales
  As an entrepreneur, your primary goal is to sell your products or services. You will require sharp sales skills for that. The better your sales skill, the better your chances to expand. Communication skill often helps in sales.
• Marketing
  Sales and marketing go hand-in-hand for any business. So, marketing skills are as significant as sales. Marketing allows the entrepreneur to promote their offerings to the target consumers.
• Leadership
  Leadership skill is an integral part of entrepreneurship. With proper leadership skills, you can earn the trust and satisfaction of your employees. It results in better performance and, in turn, growth for the business.

If you want to nurture your entrepreneurship skills, check out the MBA from Deakin Business School in association with upGrad.

Reasons Behind Becoming Entrepreneurs

People become entrepreneurs for various reasons. Everyone has a motivation that has pushed them into this role. Here are a few of these reasons:

• You can be your boss
  Several entrepreneurs have started their businesses out of the necessity to become their boss. These people face various problems working under someone else.
• Unemployment issues
  Unemployment is a burning issue now. People often don’t give in to the situation; instead, they try something new by becoming entrepreneurs.
• Ambitions
  Entrepreneurs are often driven by ambition. They aim to succeed and put in much effort to reach their goals. They work hard to achieve what they aspire for.
• Flexibility
  Some seek to become an entrepreneur, as they dislike the concept of fixed working hours. They prefer flexibility in the working hours as well as the place of work. These unrestricted conditions make them pursue their own business venture.
• Corporate antipathy
  Several entrepreneurs do not like to work in the corporate culture and hence start their businesses.
• Social contribution
  Many entrepreneurs start their businesses because they are passionate about creating new things. They usually want to contribute positively to the community they belong to.

How To Become a Successful Entrepreneur?

There are a few things that can help you in becoming a successful entrepreneur. Some of them are listed below.

• Acquire new skills: Try to learn new skills that will open new opportunities for you. It does not matter where you mastered them. The only thing that matters is how skilful you are.
• Build a network: You need investors, employees and consumers to build a business from scratch. And you can achieve that by having a solid network.
• Identify problems: Entrepreneurs must be quick at recognising problems and finding solutions. It is how most of the new technologies have found their way to us.
• Start with stable funding: Another crucial aspect is to begin with a secure source of money and, if you can, avoid debts. This will bring you peace of mind and financial stability, as you won’t need to worry about loans and interests. It allows you to focus entirely on your business and its operations.
• Be positive: Always keep a positive mindset and stay true to your words. If you manage that, it can help you earn respect from your employees, customers and competitors.
• Learn from failures: Remember that failure is just a path to success. You may fail once or twice but will succeed if you are determined enough. It will help in taking risks and avoid making mistakes from the past.

Learn MBA courses from the world’s top universities.

Notable Entrepreneurs From Around World

There are millions of entrepreneurs around the world. But, a few of them have established themselves as exemplary. They have contributed significantly to the society. Notable among them include:

• Bill Gates
  Bill Gates founded Microsoft, a software company, in 1975, along with co-founder Paul Allen. Microsoft has remained one of the world’s most famous personal computer software companies.
• Mark Zuckerberg
  Zuckerberg, a Harvard University dropout, and his friends co-founded Facebook from a dormitory at Harvard University in 2004.
• Jeff Bezos
  Jeff Bezos started Amazon (named Cadabra at the beginning) in 1994 as an online bookstore, which has become one of the largest e-commerce platforms.
• N.R. Narayana Murthy
  One of the most famous entrepreneurs in India, N.R. Narayana Murthy, co-founded Infosys in 1981 and served as the CEO until 2002. The initial capital required to start Infosys was a mere 10,000 rupees.

Different Types of Entrepreneurship

Entrepreneurs can create various types of businesses based on their mindset. Each type of entrepreneurship has distinct objectives and strategies for achieving success. The types of entrepreneurship are:

• Small Business Entrepreneurship
  These businesses don’t prioritise rapid expansion or the establishment of new branches. They are frequently owned by families or close-knit groups of friends.
• Scalable Startup Entrepreneurship
  These businesses start from scratch but focus on growing and making higher profits. Scalable startups attract investors for their uniqueness.
• Large Business Entrepreneurship
  Large business entrepreneurship focuses on generating a profit. It uses an existing model to expand. These often undertake innovative businesses to enhance their reach.
• Social Entrepreneurship
  Social entrepreneurship does not set profit-making as its priority. It often derives from a passion to give something back to society.
• Innovative Entrepreneurship
  Innovative entrepreneurship is fueled by creating a new product or idea. This new product will impact the market severely and improve life conditions.

Conclusion

Entrepreneurship offers a prime avenue for self-expression while enabling the pursuit of monetary gain from one’s passions. When people transform their creative ideas into real businesses, they can bring their unique visions to life and make lasting money. This mix of personal satisfaction and financial promise makes entrepreneurship an exciting choice for those who want to combine their creativity with business skills.

If you want to start your entrepreneurial venture, the MBA from Liverpool Business School programme by upGrad is perfect for you. The programme provides in-depth insights into business management through an up-to-date curriculum globally acknowledged by recruiters.