Entrepreneurship is the act of being an entrepreneur, which is a French word meaning “one who undertakes an endeavor”. Entrepreneurs assemble resources including innovations, finance and business acumen in an effort to transform innovations into economic goods. The most obvious form of entrepreneurship is that of starting new businesses; however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity.
The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population.
According to A.H. Cole, “Entrepreneurship is the purposeful activity of an individual or group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods or services”.
Entrepreneurship promotes small business in the society. Government has accepted the fact that small firms have a crucial role to play in the economic development of the country. Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. Small businesses are an essential part of our future economic prosperity because of the following reasons;
- Employment generation: entrepreneurial development is looked at as a vehicle for employment generation through promotion of small business. India, being far more developed and forward looking country than some of the third world countries, can provide lead to entrepreneurial development activities. However, India can benefit from the well- documented success experiences of developed countries like USA, Japan and UK in the field of employment generation and small business promotion. Steady growth in consumer spending, expanding retail sales, a strong housing market, continued expansion of the service sector, low rates of inflation and of labor cost increases and failing interest rates contributed to a healthy environment for small business. In India, the government policies, political and economic environment greatly encourage the establishment of new and small enterprises. Self- employment and small scale industry schemes have been further liberalized during the last decade.
- Small business dynamism: great dynamism is one of the qualities of the small and medium enterprises. This quality of dynamism originates in the inherent nature of the small business. The structure of small and medium enterprises is less complex than that of large enterprises and therefore facilitates quicker and smoother communication and decision- making. This allows for the greater flexibility and mobility of small business management. Also, small enterprises, more often make it possible for owners, who have a stronger entrepreneurial spirit than employed mangers, to undertake risk and challenges.
- Balanced economic development: small business promotion needs relatively low investment and therefore can be easily undertaken in rural and semi-urban areas. This in turn creates additional employment in these areas and prevents migration of people from rural to urban areas. Since majority of the people are living in the rural areas, therefore, more of our development efforts should be directed towards this sector. Small enterprises use local resources and are best suited to rural and underdeveloped sector. This in turn will also lead to dispersal of industries, reduction in concentration of economic power and balanced regional development.
- Innovations in enterprises: business enterprises need to be innovative for survival and better performance. It is believed that smaller firms have a relatively higher necessity and capability to innovate. The smaller firms do not face the constraints imposed by large investment in existing technology. Thus they are both free and compelled to innovate. Entrepreneurship development is accelerating the pace of small firm’s growth in India. An increased number of small firms are expected to result in more innovations and make the Indian industry compete in the international market.
Are Entrepreneurs Born or Made?
There are so many opinions about this issue about entrepreneur and the relationship between entrepreneur and innovation. We need to think about what makes an entrepreneur, what are their objectives as an owner of a business, what should be the main skills and what kind of challenges and tasks they needs to face when running out a company. Entrepreneur have a personality that allows them to believe and take risks as well as enjoy the process that other people find distasteful, some people think that they can do something better then another one in any aspects of the business.
Entrepreneur is made by own business for a long time as well as the experiences from the past. No one can become or do business without experience. An entrepreneur is the person who undertakes a business. They are someone who organize the factors of creative new product or service and they know how to catch up opportunities to turn a dream into reality. They have skills as vision, motivation and determination as well as has initiative and desire to take risks in order to benefit from the profit. They should be creative, innovative and confident about what they are doing as well as just themselves know what exactly they are doing to make dream come true.
It have some argument between entrepreneur is born or made. There are many people who believe that an entrepreneur must possess personality traits such as vision, passion and drive that are innate and cannot be taught. In fact, entrepreneur is not quiet born or made because for some people who was born and grow up in the business family. They inherited from the family’s business but not ensure that they can develop or control it without experience and necessary skills to do the business better or develop it. Otherwise, they can learn from their family about the family’s business , it’s one of the kind experience they have in theory. In fact, we undeniable that they can do business easier than another one who don’t have any experience or they are not lucky that they are not inherited from their family.
Otherwise, entrepreneur are not born at all. People born without a family history or natural tendency toward entrepreneurship should shelve their dreams and stay in their cubicles? In fact, some people can do their own business and make it develop without money when they started, because the important things in this issue that they brave and preparing themselves dealing with any risks in the business market. Business market is not easy to enter as some one think but when they can enter as they are half successful in my opinion. As we know, everything have to be start from the zero if we don’t have anything such as the big mind that money. I will give some examples case to prove this issue and made it more clearly. Some opinions given that we can not start the business without experience and necessary skill as well as some important information about the business in various aspect. To become the entrepreneur is not really easy as some people think but the first important things to become the successful entrepreneur that you always prepare yourself face to face with any risks in business or so many challenges and task to placing the product into the market as well as use the strategy right thing right time and know how to manage cost. In fact, for those who are want to become success entrepreneur, they have to know that money is not the important thing at all for best business. They need to have some necessary skill such as : marketing or some attitude to attract rather than another thinks. Knowledge about marketing and financial is very important to prove that you can enter and develop business in the business market or not. Otherwise, they can prove that they have enough all the things to compete in the economics market or another business market is the big concern that how to control, maintain and develop a business. Thus, an entrepreneur can also be made because they have to have the knowledge and skills to make a business on their own work because of anyone always have the innovation skill when we born but how to develop it is another problems. Any dummy can start a business, but it takes a knowledgeable person to make it grow and prosper. It’s undeniable that money drive the business, but money is not at all to do the business without the knowledge as well as the experience to improve and give the best strategy to do the best business and become an successful entrepreneur. Beside, the good entrepreneur is not only know how to making money but they have to aware how to being best than the others, to make their own identity in the world, to prove them self, but they also have desire of successful wok as well as the feeling how they want it become true. Entrepreneur aware that all the things are not just in image but they should to think about how to make their dream come true in the real life. Therefore, entrepreneurship is a combination of personality type, passion, and knowledge. Some people may be natural entrepreneurs and immediately open a business, others will have studied and trained long and hard before doing so, and while each may enjoy some success, neither will be as successful as the person who possesses the inherent qualities and has spent the time to get and education and experience the business world.