Defining Entrepreneurship
One definition of Entrepreneurship is that it’s the art of generating innovative ideas that, if properly funded, generates profit. The profit could be from the sales of various products or services that were created by the idea. Such innovative ideas usually generate new companies. These ideas could also be taken to existing companies through which the idea is developed and the entrepreneur gets a percentage of the money or a job. What most people perceive entrepreneurship as is the start of a new business. They wouldn’t be wrong for thinking so as most entrepreneurial ventures start off as startup companies. However, the word has been broadened in recent years. It now incorporates a variety of different areas.
The profit could be from the sales of various products or services that were created by the idea. Such innovative ideas usually generate new companies. These ideas could also be taken to existing companies through which the idea is developed and the entrepreneur gets a percentage of the money or a job. What most people perceive entrepreneurship as is the start of a new business. They wouldn’t be wrong for thinking so as most entrepreneurial ventures start off as startup companies. However, the word has been broadened in recent years. It now incorporates a variety of different areas.
The profit could be from the sales of various products or services that were created by the idea. Such innovative ideas usually generate new companies. These ideas could also be taken to existing companies through which the idea is developed and the entrepreneur gets a percentage of the money or a job.
What most people perceive entrepreneurship as is the start of a new business. They wouldn’t be wrong for thinking so as most entrepreneurial ventures start off as startup companies.
However, the word has been broadened in recent years. It now incorporates a variety of different areas.
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Business Entrepreneurship Definition
Business entrepreneurship is probably the most common type of entrepreneurship there is. Although other forms of entrepreneurship do exist, this is the type that is perceived by most people as being “true” entrepreneurship. One business entrepreneurship definition is that it involves the creation of a new business based on an innovating idea. There are various types of business entrepreneurs as well. There are technical, non-technical and professional entrepreneurs. Technical entrepreneurs look towards mainly crafting a product and selling it. Technical entrepreneurs have more to do with the design, creation and quality of the product or service rather than its marketing and selling.
Non-Technical entrepreneurs deal more with the marketing and selling elements of a product or service. This could also include the distribution of a product as well. Professional entrepreneurs generate ideas, develop them and sell it. They could also start a venture and sell it. Professional entrepreneurs usually have multiple ideas and never stick to one venture. They start a business, get everything running and then sell it. They then use the money to start another business and thus repeat the cycle.
Trading Entrepreneurship Definition
Trading entrepreneurs mainly deal with the various activities that deal with the marketing, branding and the exchange of goods and services, i.e. a fitting Trading entrepreneur definition is to create and develop new ideas in order to make trading more effective and thus aim at enhancing sales. Social Entrepreneur Social entrepreneurs look at the social problems that plague society and are motivated to make the conditions of society better and make the problems disappear. Although they operate their own business, they not only have to make profits but their ventures and businesses must improve society and the environment.
Industrial Entrepreneurship Definition
Industrial entrepreneurs can be defined as being usually concerned with manufacturing activities that aim at developing new products in the industrial sector. Industrial entrepreneurs can even start new businesses that directly attribute to an industry (start of a factory). Corporate Entrepreneur Corporate entrepreneurship involves innovating ideas (creating or enhancing existing products and services) that directly benefit the company. Corporate entrepreneurs are given no external recognition but are praised within the company in the form of a raise, bonus, promotion or a combination of the three.
Agriculture Entrepreneurship Definition
Agricultural Entrepreneurship can be defined as being primarily related to the marketing and production of various agricultural products. Agricultural Entrepreneurship is also related to agricultural inputs. Examples of areas where agricultural entrepreneurs associate themselves include dairy, forestry, and horticulture. Production and marketing of agricultural inputs and outputs (Dairy, horticulture, forestry) Political Entrepreneur There are three different types of political entrepreneurs.
- The first is someone who is in some way related to the field of politics and creates new political groups, parties or projects to make a profit
- The second type is a political entrepreneur who makes profits through various government contracts, subsidies, and protection. Profit is made through various political arrangements.
- The third type is the more common politician. These political entrepreneurs use innovative ideas and policies to benefit their own political career or interest and all the while makes a profit.
Regardless of the type of entrepreneurship, each has a common primary aim between them and that is making a decent amount profit. Entrepreneurs could work alone and keep the profit with them or they may be part of a team. Those that are part of a team usually go on to create medium to large-sized businesses. Irrespective of your field, every entrepreneur needs capital to start their venture. The initial capital usually comes from either banks, investors or the entrepreneur(s). Entrepreneur(s) – This type of capital gives an entrepreneur the greatest degree of freedom. However, the entrepreneur does have to use his/her own money. If a team is made, all entrepreneurs invest money into the venture.
Requirements of Entrepreneurs
Banks only require that you pay the money back to them. This usually gives entrepreneurs a great deal of freedom as they are only concerned with paying the back. Most investors require that they receive a percentage of the profits on a periodic basis. However, angel investors not only require a percentage of the profits, they also require significant control in the business. This can modify the primary goals of the venture and does not give the founder a great deal of freedom to expand and develop the venture.
The Benefits of Entrepreneurship
The biggest benefit of entrepreneurship is the improvement of the economy. The degree of benefits to the economy also depends on whether the resident country is developed or developing. Entrepreneurship also open up new job opportunities. According to statistics, for every new business venture started, approximately three jobs open up. By introducing new jobs, you reduce unemployment and thus reduce poverty. The market that an entrepreneur enters is also enhanced because of their innovations. Perhaps a group of entrepreneurs created a new device that allows improves fuel efficiency in automobiles. Not only do the entrepreneurs make a substantial profit, they help the environment and enhance the industry and market.
The Downside
Entrepreneurship is not perfect and there are disadvantages to being an entrepreneur. Although the benefits of entrepreneurship far outweigh the disadvantages, there are disadvantages. The biggest downside to entrepreneurship is the risk involved. Not every venture is successful and quite a large amount of risk is involved. Many consider entrepreneurship a gamble. However, if every business in the world is looked at, every new venture or product that is released is a risk. Our entrepreneurship definition is that it’s the art of producing new ideas that can be modified to generate profit. You can go solo, make a team or sell your ideas. This choice is usually up to the entrepreneur.
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