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Entrepreneurship Definitions – The best Guidelines
Hello, The word entrepreneurship has many meanings. After carefully discussing all the available ones, we can conclude that entrepreneurship is a system of operating business in which the opportunities present within the scope of a market are exploited. Self-employment requires that any opportunities available within the economic system be used in the creation and functioning of new organizations.
What is Entrepreneurship?
A potential entrepreneur must show interest in searching for investment opportunities in the market so that they can successfully run the venture based on identifiable opportunities. Thus, undergoing the above responsibilities of an entrepreneur, the term entrepreneurship is ultimately defined as a function, consisting of several functions:
- Providing self-employment
- Use available resources
- Novelty applies to novel concepts
- Bringing together several factors of production into tangible form.
- Identifying and exploiting business opportunities within the available market.
- Who is an Entrepreneur?
Entrepreneurs are business people who can detect and sense the availability of business opportunities in any given scenario. They will utilize these opportunities to create new products by employing new production methods in different markets. They will also function in different ways by using various resources that will give them profit. It is important to note that although most entrepreneurial businesses start small, the owners of such businesses need not be small scale owners.
They could, in fact, be big business owners, who first try and test the waters before investing big time in the business. Small business owners dread risk, but successful entrepreneurs are very innovative and know how to operate profitably in a business environment, even if the risk is very high.
In fact, innovation is the lifeblood of any kind of entrepreneurs; this is one of the tools that helps them gain an advantage over established players in the market. Entrepreneurs are, thus, defined as individuals or groups of individuals who carry out entrepreneurship activities that are based on their innovative approaches to solving real-world problems.
Types of Entrepreneurs:
Based on their working relationship with the business environment they are functioning in, various types of entrepreneurs can be found. The chief categories are these four types of entrepreneurs, i.e.
- Innovative entrepreneurs.
- Imitating Entrepreneurs.
- Fabian Entrepreneurs.
- Drone Entrepreneurs.
- Let us now discuss each of them in detail.
- Innovative Entrepreneurs: This type of entrepreneur is more interested in introducing some new ideas into the market, organization, or in the nation. They are drawn towards innovations and invest a lot of time and wealth in doing research and development.
- Imitating Entrepreneurs: These are often disparagingly referred to as copy cats‘. They observe an existing successful system and replicate it in a manner where all the deficiencies of the original business model are addressed and all its efficiencies are retained. These entrepreneurs help to improve an existing product or production process and can offer suggestions to enhance the use of better technology.
- Fabian Entrepreneurs: These are entrepreneurs that are very careful in their approaches and cautious in adopting any changes. They are not prone to sudden decisions and try to shy away from any innovations or change that doesn‘t fit their narrative.
- Drone Entrepreneurs: These are entrepreneurs who do not like a change. They are considered as old school‘. They want to do business in their own traditional or orthodox methods of production and systems. Such people attach pride and tradition to even outdated methods of doing business.
Roles of an Entrepreneur:
Entrepreneurs fulfill the following three dominant roles:
- Economic Change
- Social Change
- Technological Change
These are referred to as behavioral roles. All entrepreneurs have these common characteristics and decide to become an entrepreneur due to the factors or circumstances in their lives which made them think the way they do. To do their work effectively and operate a successful business, these entrepreneurs should perform certain roles. These roles are the same as the basic managerial roles.
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