What is Entrepreneurship?
is the process of designing, launching and running a new business, which mostly
may start as a small business, and the people who create these types of
businesses are called entrepreneurs.
is also described as the “capacity and willingness to develop, organize
and manage a business venture along with any of its risks in order to make a
Different types of
different types of ventures are:
– A Sole proprietorship is also known as a sole trader or simply put
proprietorship which is a type of enterprise that is owned and run by only one
person. The owner is always in direct control in all aspects of the business
and is legally accountable for the finances of the business including debts,
loans, loss, profit etc.
2) Partnership – A business that
is formed by two or more people to carry on a business together with shared
capital investment and usually shared responsibilities including all the finances.
– A limited partnership, or LP, is another version of partnership, and even
though it is not as common, it’s great for businesses that are looking to raise
capital from investors who aren’t interested in working the day to day aspects
of certain operations.
4) Limited liability
– Limited liability Company also known as LLC is when the ownership of
companies is divided into small units called shares. People can buy these and
become shareholders – part owners of the business. In this case, all profits
and losses are moved from the business to the LLC members.
– A non-profit organization is a business organization that’s intended to
promote educational or for charitable purposes. The “non-profit”
means that any money earned by the company must be kept by the organization to
pay for its expense, programs, etc.
6) Cooperative – Cooperative is a
business that’s completely owned and operated for the benefit of the members of
the organization that uses its services. Meaning, whatever is earned by the
cooperative is then divided amongst the members themselves and isn’t required
to be paid out to any other stakeholders.
7) Franchise – Franchise is a
business that uses the name, logo and trading system of an existing successful
business. It is basically a legal document that defines a commercial
relationship between the owner of a trademark or trade name and an individual
or group that wants to use that identification in a business. For example,
McDonald’s or Ben and Jerry’s, etc.
Different types of
1) Small Business
business entrepreneurship basically means an entrepreneur or an individual who
starts and runs his or her business with very limited resources and planning
while taking into account all the various risks and rewards of the business
2) Scalable Startup
small businesses, scalable startup entrepreneurship is when entrepreneurs start
a company knowing from day one that their vision could possibly change the
world. They start from a creative idea and take on the investors required who
will eventually turn this idea into a higher, more profitable company or
3) Large Company
companies or large enterprises are those companies that are already well
established. They continuously grow through more innovative ideas, advanced
technology, customer tastes or new competitors etc. Having a larger business
obviously means more responsibilities, taking higher risks but at the same
time, there is the benefit of that company being more stable or better known
entrepreneurs are creators or innovators whose main focus is on creating
products and providing services that solve the social needs and problems. But
unlike scalable startups their goal is to make the world a better place, not to
take market share or to create wealth for the founders. They may vary in
different types of organizations such as nonprofit, for-profit, or hybrid.
both the public and corporate sector.
sectors are state-owned organizations that mostly tend not to have profit as a
major objective. The public sector provides services that benefit not one
individual but the majority of society. For example, healthcare, educational
system restaurants, tourism etc.
sectors are a section that contains companies/industries. They are the
industrial development of the society. They represent the “producer” and
“development” side of the economy. We are the consumers and they are the
service providers. For example, the primary sector of the business activity;
firms in farming, fishing and all other industries that extract natural
The similarities and
differences between sole proprietorship and partnership.
of the similarities between these two ventures is that they both have unlimited
liability, meaning that the owners would be held responsible for paying off all
of the company debts personally if the company can’t make its payments.
main difference between sole proprietorship and partnership would be that any
profit or loss that the sole trader makes will be kept for themselves, whereas
with partnership all profit and losses will be equally divided between however
many partners exist.
between Limited Liability Company and franchise
similarity between these two types of ventures is that their shareholders or
owners are referred to as members of the company. Also in most cases, LLC and
franchise have limited liability.
LLC has multiple shareholders, the profit and loss are divided equally among
however many shareholders there are whereas with a franchise, the share of
profits or revenue has to be paid to the franchiser each year.
The similarities and
differences between Sole proprietorship and nonprofit organizations
main difference is that whatever is earned by the sole will be kept for
themselves whereas with the non-profit organization is a business organization
that’s intended for charitable purposes. The “non-profit” means that
any money earned by the company must be kept by the organization to pay for its
expense, programs, etc.
How micro and small
businesses impact on the economy.
and small businesses can have a major impact on the economy as they have
multiple benefits. For instance, many jobs are created by small firms and, even
though each one may not be able to employ enough staff members, collectively
the small business sectors a significant amount of the working population in
most countries. Small businesses often supply specialist goods and services to
important industries in a particular country. For example, the car industries
like Toyota or Ford often depend on small specialist suppliers of high-quality
audio equipment or headlights etc.
The importance of
small businesses and business start-ups to the growth of the social economy
consumers invest in small businesses they are essentially giving the money back
to their own local community. A thriving start-up business will generate high
levels of revenue, which means that the business will pay higher taxes,
including local taxes. This money can then be used for the social or economic
growth of the country. All great businesses were small at one time. The Body
Shop began in one small rented store in 1976. The founder, Hewlett-Packard
started assembling electrical equipment in a garage and it is now a
multinational information technology company known as HP. In other words, the
large firms of the future are the start-ups of today and the more small
businesses are encouraged to become more established and expand, the greater
the chances are that the social economy will benefit from large-scale
organizations in the mere future.
traits and skills of a successful Entrepreneur
Innovation/Persuasiveness – An entrepreneur may not be an inventor in the
traditional sense, but they only need to be able to carve out a new niche in
the market and attract customers in innovative ways and present their business
as being different from others in similar markets. This requires an
entrepreneur to have the original idea and ability to do things differently.
– It is never an easy option to either setup or runs your own business. It is
in fact, hard work and may take a long time, which is why a successful
entrepreneur will have a willingness to work hard, be ambitious and focus all
energy on their work.
3) Multi-skilled – An entrepreneur
has to be able to do multitasking. One has to be able to make the product (or
provide the service), promote it, sell it and keep the accounts in order.
4) Leadership skills – The entrepreneur
has to lead by his or her example and has to have the personality that
encourages people in the business (fellow employees) to follow him/her and be
driven and motivated by them.
5) Self-confidence – Many business
start-ups fail multiple times, yet this would not discourage a true
entrepreneur. They must have the self-confidence in themselves so that they can
believe and achieve what they are after and bounce back from any setbacks that
may occur along the way.
6) Risk-taking – When starting out
a new business and wanting to expand it, entrepreneurs must be willing to be
able to take risks in order to see further results. Often the risk they must
take is by investing their own savings in the new business.
Entrepreneurs and Managers.
Who is an Entrepreneur? As discussed above,
an entrepreneur is someone who is willing to take financial risks of starting
and managing a new business venture.
1) The real motivation for an entrepreneur
is the sense of achievement.
2) Their main focus is business start-ups.
3) The status of an entrepreneur would be
known as the “owner”.
4) Their ultimate reward would be the profit
their business makes.
5) An entrepreneur would look for new
opportunities and creative ideas to develop their business.
6) They are responsible to change situations that
may put the business at risk.
7) They represent the organizations in all important negotiations for
example the government.
Who is a Manager? A
manager is someone who is responsible for setting objectives, organising
resources and motivating the staff so that the organisations aims or goals
1) The motivation for a
manager is authority or power.
2) Their main focus is
3) The status of a manager
would be known as an “employee”
4) Their reward would be
the given salary.
5) A manager encourages
new ideas from within the business and would hold meetings aimed at putting
the new ideas into effect.
6) They are responsible
for how the business should respond to threats for example new competitors
7) They conduct
negotiations and build links between business and other organizations.
Aspects of the
entrepreneurial personality reflect entrepreneurial motivation and mindset.
1) Passion – Entrepreneurs are
not in it for money. While that may be an added bonus, they are more motivated
because it is what they love. Building a business takes a lot out of a person;
it takes time, effort, hard work. It means putting in longer hours extra work.
Therefore, if they don’t love what they do, if they are not passionate about it
success will never be achieved.
2) Versatility – When an
entrepreneur is just starting out, there will be many times where it may seem
like getting your business off the ground will never happen. But true
entrepreneurs don’t think like that, they will remain optimistic about the
future. They will somehow always manage to pick themselves back up even when
times may seem tough. The ultimate key to becoming a successful entrepreneur is
to be goal-oriented, regardless of how many loopholes one has to go through in
order to reach it.
– Being passionate and dedicated is indeed important but being inflexible about
client needs or market needs may lead to failure. Successful entrepreneurs will
welcome each and every suggestion that may come their way in order to customize
or optimize their clients’ needs or markets needs. Therefore having the
capacity to be adaptable to changes and difficulties is vital for a business to
How background and
experience can hinder or foster entrepreneurship
has the ability to enable one to understand the outside world with the basic
knowledge and skills required to deal with day to day issues. In any society,
the educational system has a profound effect and a significant role in
entrepreneurial values. If a person is unable to access good education or basic
education then the odds of him or her becoming a successful entrepreneur is
in a study by Hardimani, it was revealed that Zamindar family helped to gain
access to political power and rise to a higher level of entrepreneurship. The
background of a family in manufacturing provided source of industrial
entrepreneurship. Basically, the social status of the family influenced
characteristics and the influence of personal background and experience to
specific successful entrepreneurs.
Huffington is the co-founder of the “HuffPost”. She experienced failure
multiple times including once where her second book was rejected by 36
publishers. Huffington’s mother once told her “Failure is not the opposite of
success, it’s a stepping stone to success” This is what kept her going. Her
ultimate motivation was her passion for writing. Ultimately, many years later
she watched “HuffPost” come alive even then there were mixed reviews. But it
didn’t stop her. “HuffPost” is now a multibillion-dollar news outlet around the
world and has been going strong since 12 years.
entrepreneurs have the ability to tolerate rejection or any form of failure. If
one truly has a vision and is driven by a passion for something that they
believe in then there is nothing that can drive it out of them.