Entrepreneurship is the process of bringing together factors of production, and organizing profit oriented activities, or the process of distributing economic goods and services for profit. An entrepreneur is a risk taker who possesses skills, such as knowledge and self-confidence. This individual bears the risk of starting a business venture, in the face of uncertainty about future conditions. Most successful entrepreneurs are self-motivated. Entrepreneurs start their own businesses because they do not like to work for others, but prefer to be their own boss and be responsible for the decisions they make. Entrepreneurs have the ability to spot a business opportunity and utilize it, with the hope of succeeding, rather than failing.
Entrepreneurship is a creative activity, as it tries new methods, rather than following routine methods. Entrepreneurship is closely related to innovation, as the success of entrepreneurship, largely, depends on the ability to respond to innovation. It has its objective of economic success, based on the utilization of new means of production. Entrepreneurship is a result-oriented activity, since it emphasizes high levels of achievement and performance. The qualities of an entrepreneur are acquired; thus, an entrepreneur need not be born as one, but can become one through progressive learning.
When selecting the type and size of a business venture, an entrepreneur should consider and conduct analyses on the factors below.
- Raising capital – most entrepreneurial activities, normally, depend on the availability of capital.
- Market research – it is the systematic collection of data regarding the consumer levels of demand for the product and cost.