Entrepreneurship is the act of implementing a business initiative while taking actions to effectively handle risks for the growth of the business.
Tenacity of entrepreneurs
Entrepreneurs act as creators or managers of a business and they take the initiative to grow the business by undertaking risks. They supervise the creation and gradual growth of a business.
Entrepreneurs basically create new things in a business; they think of ideas and act on them regardless of the risk they pose. The size of the business does matter in entrepreneurship; it is mainly the capacity to translate ideas into products and services, while at the same time contributing to the growth of the business.
Perception of entrepreneurship
The term entrepreneurship can not be tied to just one discipline as it generously accommodates other disciplines like sociology, economic history and economics. Entrepreneurs (those who engage in entrepreneurship) are mostly studies based on what they do and the traits they pass off. Other times, they are studied as a large group based on what entrepreneurship is rather than paying attention to individual execution of the act.
Factors that promote entrepreneurship
Numerous factors have a bearing on the success of a business venture. There are lots of things to consider and most times the economy of the entrepreneur plays a huge part in the success of the venture.
- Small scale business friendly laws and regulations. The presence of advocacy organizations that demand for increase in governmental support of entrepreneurship schemes contributes to the flourish of business venture. Creation and implementation of small business friendly laws boosts entrepreneurship.
- NGOs (Non Governmental Organizations) that offer business advice to entrepreneurs and also provide little support helps in the growth of business ventures.
- Governmental support can also aid small businesses ventures.
- Training programs. Entrepreneurship education at schools, colleges or universities promotes initiative to start a business venture. Skills taught at these training programs also enable learners to efficiently start and manage business ventures. John Abio provides advice to entrepreneurs via his blog where he discusses about various subjects of business aspects.
- Provision of funds. The availability of funds helps entrepreneurs start up and build their business. Funds such as government grants, bank loans, private foundation grants, venture capital financing and NGO funding can boost a business venture.
Small business vs entrepreneurship
The term entrepreneurship is often confused with small businesses. Although entrepreneurial initiatives start out as small as small businesses most times, not all small businesses are entrepreneurial activities. This is because there are lots of small businesses that involves just the owner as the sole operator of the business, thus a sole proprietorship. Other small businesses have a limited number of employees and just produce a certain service or product without the goal of growing or developing.
This is in stark contrast with entrepreneurial activities which involves the taking of initiatives to grow a business regardless of risks.
Entrepreneurs develop a business plan, start implementation and employ the services of others while working towards the full implementation of the business plan.