Entrepreneurship: What is it?

Entrepreneurship is the making or developing of value, thus can be viewed as change usually involving risks undertaken in a business. It can also be seen as the act of planning, starting and operating a new business, most often a small business at first before it grows. Either way, entrepreneurship involves the capacity to build a business from scratch taking in mind the risks that would be encountered in the process.

Activities involved in entrepreneurship

Entrepreneurship is an act that involves quite a number of activities to implement and actually ensure its bloom.

Entrepreneurs have to participate in these activities to ensure growth of their businesses.

  • Creating a business plan. This is a very important part of entrepreneurship. Without it, there would be no business to grow or develop. Entrepreneurs bring up ideas or plans they wish to implement to start a business it to grow a business.
  • Employing human resources. It is not uncommon to mistaken entrepreneurs as sole owners and sole person in a business. However, entrepreneurs actually do make use of other human resources. They hire employees under them and make use of their services to expand their business.
  • Getting financial and material resources. After creating a plan, the next step to implementing them is getting adequate funds and material resources to ensure the success of execution of plans. Without sufficient funds, it is actually difficult to grow the business as much as possible. For instance, if a business requires about $5000 to start, starting with a $1000 will largely impede the growth and evident development of the business.
  • Being a leader. An entrepreneur serves as a leader to employees working under their businesses. Without adequate leadership it will be very difficult to grow the business in the right direction. This is because humans have the tendency to lean toward individualism, hence without proper leadership the business grows in an uneven manner as there are too many cooks stirring the broth. However, with good leadership, there is a sequential process to activities done in the firm and there is a different individual heading specific units without overlapping, thus contributing to the growth of the business.
  • Showing responsibility for both failure and success. If the business fails or succeeds, the responsibility falls on the entrepreneur. Hence, the entrepreneur should be prepared for different outcomes of a business plan. This allows the entrepreneur to swiftly take action when the profit of the business is taking another course.
  • Averting (potential and unexpected) risks. Risks being an integral part of business, entrepreneurs have to be ready to deal with them when they emerge. Entrepreneurs should be able to foresee certain risks and gave the ability to take action when faced with unexpected risks. The ability to avert risks bears an impact on the success of the business.

John Abio creates an atmosphere for learning about entrepreneurship by educating and giving advice to new and developing entrepreneurs. He does this via the use of his blog which focuses on several subjects targeted towards improvement of business.

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