The process of discovering new venture with creativity and innovation is called entrepreneurship. Entrepreneurship requires assumption of risk and reaping of awards. It brings resources together and provides option for self-employment to an individual. Entrepreneurship also creates employment opportunity for others.
Entrepreneurship is a mind set of creativity and risk taking. It is a process of identifying opportunities and bringing together factors of production to exploit these opportunities. Entrepreneurship results in creation of new venture by planning, organizing, operating and assuming the risk. It always aims for innovation, profitability and growth.
The entrepreneurial spirit has appeared as the engine of economic development. Entrepreneurship has resulted in millions of new ventures in the world. Entrepreneurship has appeared as the driving force for industrial and economic development. Therefore, the interest in the concept of entrepreneurship is growing in today’s world.
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.
- 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.
- Risk Assumption – 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.