What is Entrepreneurship? A Complete Guide (2023 Updated)
Entrepreneurship is a process of identifying a business opportunity and acquiring the necessary resources and coming up with solutions. In simple words, we can say that Entrepreneurship means to be your own boss.
Entrepreneurship is like saplings. One should invest their time, energy, and money on it during growing years before getting fruits.
Table of Content
- What is Entrepreneurship?
- Different type of Entrepreneurship
- Characteristics of being an Entrepreneur
- Importance of Entrepreneurship
- How to Become an Entrepreneur
- Benefits of becoming an Entrepreneur
- Final Thoughts
What is Entrepreneurship?
The process of developing, launching, and running a business along with some risk, some investments called Entrepreneurship. Entrepreneurship is a tough venture. It requires risk-taking ability, time, and patience to run a new enterprise.
The person who undertakes entrepreneurship is called Entrepreneur. An entrepreneur is a person who sees a problem, finds a solution to it, and goes out to implement the solution.
I always believe in a famous quote by “Naveen Jain”
“A person who sees a problem is a human being; a person who finds a solution is visionary, and the person who goes out and does something about it is an entrepreneur.” – Naveen Jain
Different types of Entrepreneurship
Most of us think running big companies comes under Entrepreneurship. But it is not so. There are different types of Entrepreneurship. We can divide Entrepreneurship into four types:
1. Small scale Entrepreneurship
In today’s world, most businesses are small-scale. The business which is local or we can say which serves the residents is categorized as small-scale entrepreneurship.
Small scale Entrepreneurship generally involves 1-2 people. They have a small number of clients in a nearby location.
Small scale Entrepreneurship is important to fight with obstacles of poverty and unemployment. The small-scale enterprise employs so many individuals in a nation alone.
Examples of small-scale entrepreneurship include hairdressers, grocery stores, plumbers, electricians, carpenters, consultants, etc.
2. Medium Scale Entrepreneurship
Medium Scale Entrepreneurship is directly managed by the business owner and they have some employees works under them. There are big and small operations daily in this Entrepreneurship. In Medium Scale Entrepreneurship, entrepreneurs have a significant number of clients and business contacts.
Medium Scale Entrepreneurship generally consists of Manufacturing Enterprise.
Manufacturing Enterprise is engaged in the manufacturing or production of goods or products from different raw materials. These produced goods are directly consumed by the consumers. There are plants and machinery involved in this type of entrepreneurship. Also, it leads to the jobs of many employees for the manufacturing unit.
Examples: Sugar, paper, soap, electronics manufacturing units.
3. Start-up Entrepreneurship
Start-up Entrepreneurship is started by entrepreneurs with a vision to change the world. They have some unique ideas, implementing that idea and launching their product in the market brings change to society.
Start-up Entrepreneurs want to bring some change in society with their thinking and implementation. They generally face some problems themselves or saw some problems in society or across the world and thinking some out-of-box ideas for the problems.
Investments in start-up entrepreneurship are done by some investors who encourage new entrepreneurs with out of box ideas.
Nowadays startup entrepreneurship is in trend and a new area of work for enthusiastic students or employees who want to become their own boss and at the same time do something constructive for society.
Examples of successful Startups in India are Paytm, Ola, Flipkart, Zomato, Swiggy, etc.
Courses to check out
4. Large Scale Entrepreneurship
Large Scale Entrepreneurship means huge companies that define their own life cycle. They offer new products in the market based on innovation as per customer needs. These have huge infrastructure and thousands of employees work in these companies. They have a huge annual turnover and create job opportunities for thousands of highly qualified candidates as well as ground staff.
Large-scale Enterprises provide industrialization in the country. They usually produce goods or products or devices as per customer needs.
Large-scale Enterprises also invest in research and development.
Examples are Reliance Industries, Apple Computers, Google, Iron and steel industry, textile industry, etc.
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Characteristics of being an Entrepreneur
Entrepreneurship is not everyone’s cup of tea. It needs a special set of characteristics to become a successful Entrepreneur.
- Risk-taker
Starting a new business is itself a risk. It takes a lot of courage to start a new venture. An entrepreneur needs to be risk calculative and ready to take that risk. Risk-taking ability is essential for being an entrepreneur.
“Everyone can tell you the risk. An entrepreneur can see the reward. – Robert Kiyosaki, founder of Rich Global LLC and the Rich Dad Company
- Innovator
To start a new venture, an Entrepreneur needs a new innovative idea to stand out in the market. Without innovation, it’s difficult to sustain the business. No growth comes without innovation.
“Innovation distinguishes between a leader and a follower.” – Steve Jobs, Co-Founder, and Chairman of Apple Inc
- Solution-Oriented
Do you want to be an Entrepreneur? If yes, then look for a problem around. Find a solution to that problem. And launch your solution as a fresh business idea. Hurray! Welcome to the world of Entrepreneurship.
- Visionary
To be a successful Entrepreneurship, an entrepreneur needs to have a clear vision of his new venture. With Vision, it’s easy to plan and steps can be taken accordingly.
“Entrepreneur is someone who has a vision for something and want to create” – David Karp, Founder and CEO TUMBLER
- Leadership Quality
An entrepreneur needs resources and manpower to run a venture. Entrepreneurship can’t be run alone. Leadership quality is a must for an Entrepreneur to bring out the best from his employees and guide them towards the right path of success.
- Enthusiastic
Imagine if you are not enthusiastic to do the work in your hand. What will be the output of that work?
It will be an average output. So, how can Entrepreneurship be successful with average outputs? An Entrepreneur needs to be enthusiastic to bring out the best from himself and energies his employees as well.
- Adaptable
There are many challenges faced by Entrepreneurs. There is not always a bed of roses. Sometimes, situations that are not favorable. Entrepreneurs need to be adaptive to such conditions and come out with new solutions.
- Creator
An entrepreneur is a creator. He must have a creative instinct to come up with unique and new ideas. An entrepreneur must have a desire to build new things.
- Curious
Curiosity gives new dimensions to an entrepreneur. If he is curious enough to learn new things, to implement new things like a kid then no one can stop a curious entrepreneur to be successful.
- Resilience
Resilience is a must for Entrepreneurship. Every enterprise faces difficult situations, up and down, and even starting your own venture is very challenging. Resilience needs to be engraved on an Entrepreneur mindset so that he can shine beautifully after every dawn.
- Competitive
When we look around, competition is everywhere. Any industry, any field we pick like sports, education, media, cinema. Entrepreneurship is very competitive as well. You launch an idea, in a few days there will be hundreds of new competitors come into the market and compete with you.
So, the Entrepreneur needs to be competitive and always look an eye for the competition to grow and improve further. Healthy competition is always good it allows you to blossom.
Importance of Entrepreneurship
Entrepreneurship is very important for the economical growth of a country. Entrepreneurship is the backbone of the economy of a country. We are highly dependent on various enterprises for jobs, different products, and daily needs. The importance of Entrepreneurship is as follows:
- Job creator/Employment
Entrepreneurship creates jobs. Unemployment is not good for any country’s growth. After completing graduation every youngster is looking for jobs. From where this job comes from? Who recruits the freshers? These are companies owned by various entrepreneurs who open job opportunities for young graduates.
Similarly, in every organization, jobs for experience, freshers, and ground staff all are needed for a successful running and free flow work cycle. So, with entrepreneurship may employment doors open.
“Someone is sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett
- Solution-oriented
A normal human being thinks about problems in the world. In a group, they discuss various problems in the world, country, society, and home. But there are very few people who think about the solution to the problems.
Let’s take an example: We are driving through a road. In between the road, there is a big stone and everyone is going on driving by the side of the rock. Everyone is discussing and cursing the person who brings the rock in between the road but no one bothers to step out and move the stone to the side. Until a solution-oriented person moves the stone to the side. See, the problem(stone) was the same for everyone but only one thinks about a solution and takes action.
That’s the entrepreneurship quality and only a few have those. Thus an entrepreneur is important for our society to bring solutions to problems.
- Brings Change
Entrepreneurship brings change to society through their work. Small Scale entrepreneurship services are needed by everyone. Not every person can do their all small and big task and household chores individually. Entrepreneurship brings change and the smooth functioning of society.
For example, Every individual can go to farmers directly to buy vegetables, fruits, grains, etc. there needs to be a vendor to bring farmer’s stuff to market. Similarly, we cant go to factories directly to buy stuff like soap, grocery items, etc. That’s why there is medium-scale entrepreneurship to bring this stuff into the market. These steps bring change to society and the common man.
- Contribute to Society
Entrepreneurship definitely contributes to society with all the above fields which we have seen. Entrepreneur’s contributions to society bring change and growth to the country.
- Motivation and Courage to Wannapreneurs
Entrepreneurs and their work definitely inspire and motivate our wantrepreneurs. There is a lot of scope and requirements for new entrepreneurs, new ideas, and innovation. Definitely, there are many wantrepreneurs across the globe, they get motivation from successful entrepreneurs to get their hands dirty in this area.
“All our dreams can come true if we have the courage to pursue them.” – Walt Disney
You can also become an entrepreneur and inspire others to be the ones.
How to Become an Entrepreneur
Now, get ready to become an Entrepreneur and enjoy the journey. Here are the steps to become an Entrepreneur.
- Find your Niche
The first step is to found your niche. You should know about your area of interest in which you want to be an Entrepreneur. It can be farming, electronics, digital world, iron, textile, Ayurveda, etc. Identify your area of interest, the problem in that area which you can solve.
- Learn about your Niche
The next step is to learn about your Niche. Research about your niche. The problem area in your niche and the solution which you can offer as an Entrepreneur. Every small detail, even smaller than a needle must be clear to an entrepreneur about his niche.
- Upgrade your Skills
Before starting your enterprise upgrade your skills in your niche. Learn whatever is needed for a successful run and Entrepreneurship. Upgrade your technical skills, marketing, and sales skills, leadership qualities. Skills help an entrepreneur at every corner and it gives you an edge over your competition.
- Target Audience
Must be aware of your target audience. So, that u can implement your idea and execute it. For eg., if your target audiences are villagers, you can’t offer them packet milk, as they already have fresh milk in their village. You must be aware of the target audience before making your plan.
- Plan
You must have heard “Good planning means half work done”. Entrepreneurs plan everything. As an entrepreneur, your planning should be crystal clear. Plan everything, risk, mitigation plan, marketing strategies, execution of the plan, and timelines everything.
- Implement your Idea
As all planning is done, now it’s time to take action. You must have heard “If You’re Waiting For The Right Time, Stop… The Time Is NOW”. Once your planning and preparation are done, implement your idea, don’t wait much. Take required action during the Entrepreneurship journey.
- Sell your Idea
Now sell your idea in the market. It will not be a smooth sail but start selling. You might face some failures along the route but don’t lose hope. Perseverance is the key and keeps selling your idea.
“I’m convinced that about half of what separates successful entrepreneurs from the nonsuccessful ones is pure perseverance.” – Steve Jobs
- Network with People
Networking with the right people is important for entrepreneurs. You can learn a lot with the right people and networking helps in the growth of the business. With networking, you will get new clients, new deals.
- Promotions/ marketing
Get ready for implementing the right marketing strategies. Market your idea the right way. Spend on some good promotions and marketing strategies to take your venture to new heights.
- Earn
Now, it’s time to earn money. You have to spend lots of time, energy, and money on your Entrepreneurship. Now, it’s time to earn, time to get benefits.
Money is not everything for entrepreneurship, however, this is time to get a reward.
“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.” – President Franklin D. Roosevelt
Benefits of becoming an Entrepreneur
There are many benefits to becoming an entrepreneur. It’s a different kind of achievement.
You are your Own Boss
WOW! Doesn’t it seem exciting? Be your own boss. Your own freedom, your own creativity, your passion. You can give directions to your dreams. Is in it exciting!!
- The boss of Others as Well
Entrepreneurs are their own boss as well as the boss of others as well. Your employees work according to your plan. Entrepreneurs are leaders.
- Helps in Country Economy
Think you are contributing to your country’s economy. It feels great. You are a little part of your country’s growth.
- Creating Employment
Entrepreneurs provide/create jobs for so many people. Thus, many houses run because of an entrepreneur.
- New Ideas and New Products come into the Market
An entrepreneur is an entrepreneur because of new ideas, innovation, and new products he launches in the market. People will definitely know your product and you as its creator.
- Encouragement to Others
Many people looking for motivation, encouragement from people around them. A successful entrepreneur is an inspiration for many wantrepreneurs.
- Money
Money act as a reward for Entrepreneurs. All passion, hard work, planning, sleepless nights paid off definitely. Successful entrepreneurship and money along with that.
- Flexible Hours
Being an entrepreneur is not a 9 to 5 job. Entrepreneurship is more than that but you have the flexibility to work according to your creative hours.
- Power to Change the World
An entrepreneur has the power to change the world. It’s like a revolution. Does anyone know about the iPhone before 2007? Does anyone think about this smart technology before Steve Jobs? It’s his vision, his hard work that we can see smartphones in every hand across the globe. He changed the perception of technology. If he can change the world, so can we.
Best Quote I have come across, summarize the Entrepreneurship the best:
“An idea is like a play. It needs a good producer and a good promoter even if it is a masterpiece. Otherwise, the play may never open; or it may open but, for a lack of an audience, close after a week. Similarly, an idea will not move from the fringes to the mainstream simply because it is good; it must be skillfully marketed before it will actually shift people’s perceptions and behavior.”
― David Bornstein
Final Thoughts
I hope my article will inspire many wantrepreneurs. It will guide you and show some light on your future path. Entrepreneurship does not seem an easy path but definitely interesting, satisfactory, and mind-boggling.
If you are reading this article, then I am sure that you have the skills to be an entrepreneur.
Gear up yourself to enter the world of entrepreneurship!!
