Entrepreneurship is an important engine of growth in the economy. Entrepreneurship is the capacity and willingness to formulate, organize and manage a business venture along with anyone its risks to make a profit. Valuable example of entrepreneurship is the starting of new businesses. Entrepreneurship could be the process of starting a small business, typically a startup company offering an innovative product, process or maybe service. The entrepreneur perceives the opportunity and often displays biases in taking choosing one to exploit an opportunity.
Characteristics of Entrepreneurship
Entrepreneurship has the following characteristics:
Creating New Venture
Entrepreneurship is concerned with creation of new venture with new ideas. Such ventures starts as a small business to satisfy the unfulfilled needs in the market. These new ventures produce something new of value, create new market and new customers.
Strong networking abilities
A key part of being an entrepreneur is developing a network. While schools and events can provide an introduction, successful entrepreneurs must know how to maximize these opportunities to develop connections with experienced people in their field, investors, or advisors through strong networking skills.
One of the most important traits of entrepreneurs is self-motivation. When you want to succeed, you need to be able to push yourself. You aren’t answerable to anyone else as an entrepreneur, and that sometimes means that it’s hard to get moving without anyone to make you. You need to be dedicated to your plan and keep moving forward — even if you aren’t receiving an immediate paycheck.
Hard Work and Commitment
Entrepreneurship requires hard work and commitment through devotion of time and efforts. Hard work with enthusiasm is needed to make new ideas, developing plan, determination of required resources. Entrepreneurs have deep sense of personal responsibility and high level of energy.
“Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.” Without profit potential, the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity.
Entrepreneurship involves assumption of risks which implies possibility of loss. Probability estimates of the outcome of risk situations are made to calculate risk. Generally, new ventures tend to have high risk and high failure rate. Financial risk, career risk, social risk and psychic risk are involved in entrepreneurship.
Reaping Of Rewards
Entrepreneurship results in reaping of rewards. Rewards can be monetary benefits in terms of profit or non-monetary benefits in terms of personal satisfaction, self development, fame, reputation and independence in work. Monetary rewards serve as symbol of achievement and non-monetary rewards provide opportunities to make contribution toward social well-being and get social recognition.
Finally, successful entrepreneurs are passionate. They feel deeply about their product or service or mission. Passion is what will help you find motivation when you are discouraged and it will drive your forward. Passion is fuel for successful entrepreneurship. If you find yourself losing your passion, that might be the clue that it’s time to move on to something else (that stokes your passion). There are many serial entrepreneurs that create successful businesses, sell them, and then create something else.