BLUEPRINT OF ENTREPRENEURSHIP.

Entrepreneurship/ Investodia/ getty images

Contributed by Naval Goel

The term' entrepreneur' is obtained from the French verb' entreprendre,' which implies' to start.' This relates to those who' carry' the threat of new businesses. An entrepreneur creates an enterprise. The creation process is called, 'Entrepreneurship.'

Entrepreneurship is both the analysis of the creation of new companies and the actual practice of commencing a new business – the word is used interchangeably. Entrepreneurship is a method of an entrepreneur's behaviour who is an individual always searching for something fresh and putting such thoughts into gainful possibilities by embracing the company's threat and uncertainty.

Who is an Entrepreneur?

An entrepreneur is a person who establishes a new business, carries most of the risks, and enjoys most of the benefits. The entrepreneur is generally seen as a visionary, a source of new thoughts, products, facilities and processes.

In any industry, entrepreneurs play a crucial role. These are the individuals who have the right skills and entrepreneurial spirit to foresee the present and future needs and bring fresh and innovative ideas to market. Entrepreneurs who remain unbeatable in taking on a startup's risks are honoured with revenue recognition and opportunities for continued development.

Entrepreneurial Process

The entrepreneurial process can be described as the measures taken to set up a new business. There are certain significant features in all the stages of the entrepreneurial process; which one has to monitor and follow to set up a business. It's a step-by-step approach one follows or has to follow while setting up an enterprise.

1.     Discovery

An entrepreneurial method starts with the generation of ideas where company’s possibilities are identified and evaluated by the entrepreneur. Identifying and assessing opportunities is a challenging job; an enterprise aims input from all individuals including staff, customers, channel associates, technical individuals, etc. to achieve an excellent company opportunity. The next stage is to evaluate it once the opportunity has been chosen. An entrepreneur can evaluate the effectiveness of an incentive by continually asking himself specific issues, such as whether the chance is worth investing in, whether it is adequately appealing, whether the alternatives suggested are viable, whether there is any competitive benefit, what is the threat linked with it. An entrepreneur must, above all, evaluate his abilities and hobbies, whether or not they align with business objectives.

2.                 Developing a Business Plan

An entrepreneur requires to produce a detailed company strategy once the opportunity is recognized. A company strategy is critical to any new venture's achievement as it serves as a benchmark and assessment criteria to see if the organization is progressing towards its defined objectives.

An entrepreneur must devote enough time to its development. The main elements of a company strategy are mission and vision declaration, goals and targets, capital requirements, products and services description.

3.                 Resourcing

The third stage in the entrepreneurial phase is resourcing, where the entrepreneur defines the sources from which it is possible to arrange finance and human capital. Here, the entrepreneur discovers the investors to carry out the company operations for his new company and the staff.

4.                 Managing Company

Once the resources have been collected, and the staff recruited, the next move is to start the company activities to attain the objectives set. First, an entrepreneur must decide on the leadership framework or hierarchy needed to resolve the operational issues when they occur.

5.                 Harvesting

The ultimate stage in the business cycle is harvesting wherein the entrepreneur chooses on the business' future opportunities, i.e. its growth and development. Here, the real progress is likened to the scheduled event, and then an entrepreneur takes the choice to stabilize or expand company activities.

6.                 Adaptability With Time

Monitoring and realizing when an organization needs to upgrade is crucial. Because if you don't keep dragging enhanced ideas to the table, somebody else's going to take away the market and thus the profit. Only the entrepreneurs need to stay ahead of the curve and adapt to the evolving circumstances of the industry.

Characteristics of Entrepreneurship

To see his efforts yield results, an entrepreneur must be patient. An entrepreneur must assume the risk in the interim period (time gap between the conception and implementation of an idea and its results). If an enterprise is not willing to take risks, entrepreneurship would never be successful.

The characteristics of Entrepreneurship is listed below:

1.     Economic and Dynamic Activity

Entrepreneurship is a financial activity because it includes establishing and operating a business to create value or prosperity by securing the optimal use of scarce assets. Therefore, since this practice of value development is carried out continually in the presence of an unsure business environment entrepreneurship is considered a vibrant force.

2.                 Related to Innovation

The continuous quest for fresh concepts is included in entrepreneurship. Entrepreneurship requires a person to continually assess current company methods to develop more efficient and productive technology. In other words, entrepreneurship is an ongoing attempt in organizations to work in tandem.

3.                 Profit Potential

The profit potential is the probable extent of the entrepreneur exchange or reward for carrying on the risk of creating a concept into a real company enterprise. "Without profit potential, entrepreneurs' attempts would stay only a free and conceptual recreation activity.

4.                 Risk Bearing

The principle of entrepreneurship is the' readiness to take risks' resulting from fresh concepts being created and implemented. New thoughts can be vague and may not have instantaneous and beneficial outcomes.

Importance of Entrepreneurship

The entrepreneurial method is to be pursued again and again whenever an entrepreneur takes up any new enterprise, and it is, therefore, a never-ending method.

The benefits offered by Entrepreneurship is listed below:

1.     Development of Managerial Capabilities

The most considerable importance of entrepreneurship is that it allows us to recognize and develop entrepreneurial organizational capacities. An entrepreneur should study an issue, identify its options, compare the cost-benefit-related options and lastly choose the highest choice. This workout allows sharpening an entrepreneur's decision-making abilities. Furthermore, entrepreneurs use these organizational capacities to create new techniques and products instead of outdated technologies and products that result in higher results.

2.                 Creation of Organisations

Entrepreneurship results in organizations being created when entrepreneurs gather and organize physical, human and economic assets and guide them through organizational abilities towards achieving goals.

3.                 Improving Standard of Living

Entrepreneurship enables to make a broad range of products and services accessible to the community by establishing productive organizations, resulting in higher living norms for individuals. Possession of luxury vehicles, portable devices, shopping centres' fast development, and so forth are indicators of people's increasing living norms, and all this is due to entrepreneurs' attempts.

4.                 Means of Economic Development

Entrepreneurship includes creating and using creative thoughts, maximizing production from provided funds, developing organizational abilities, as all these variables are so vital to a country's financial growth.

It's intriguing to embark on the entrepreneurial route to and be your boss. However, an entrepreneur faces demanding suppliers, shareholders, bankers, and above all clients. Since he operates for himself, the life of an entrepreneur seems much easier. The reality is that it's easier to work for other than for oneself. One needs to think 24 hours a day to make his enterprise successful, and thus this can be exhausting. So before entering into the industry, make sure you do your homework about yourself and market condition along with all your studies.