Entrepreneurship is a creative and innovative action process of entrepreneurs towards establishing an enterprise. Following are some of the main natures of entrepreneurship:
- Economic Activity
- Creation of Value
- Risk Bearing
- Dynamic Process
- Special Skills and Leadership
- Human Relations
Table of Contents
Innovation Essence of Entrepreneurship
Entrepreneurship is an innovative function as it involves doing things in a new and better way. Innovation is the process of doing new things. It can be a new product, a new source of raw material a new market, a new method of production, not yet applied in a particular branch or, manufacturing, etc.
Economic Activity
Entrepreneurship is basically concerned with the economic activities i.e. production and distribution of goods and services. It is also concerned with the optimum utilization of available factors of production and resources.
Creation of Value
Entrepreneurship is virtually a creative and purposeful activity. It leads to the creation of new products, services, approaches, resources, technologies, and markets that contribute some value to a community or marketplace.
Risk Bearing
Risk is an inseparable element of entrepreneurship. An entrepreneur assumes the uncertainty of the future. In the pursuit of profit, there is the possibility of loss also.
Dynamic Process
Entrepreneurship is a dynamic function. Flexibility is the tool for a successful entrepreneur. An entrepreneur should adopt all the changes in the environment which bring useful opportunities for business.
Special Skills and Leadership
Entrepreneurship calls for special skills to handle situations as they unfold. An entrepreneur must have the ability to lead and manage in every situation.
Entrepreneurship involves the ability to create and build something from practically nothing. It is the ability to build a founding team to complement the entrepreneur‘s skills and talents. Entrepreneurship can grow and flourish only if its founders have the required managerial and leadership skills.
Human Relations
Entrepreneurship is the ability to work with other people and taking responsibility is a key to success. It is the ability to make the team, the efforts of which would result in gains for the enterprise in every aspect.
FAQs Section
What is the nature of entrepreneurship?
The nature of entrepreneurship is:
1. Economic Activity
2. Creation of Value
3. Risk Bearing
4. Dynamic Process
5. Special Skills and Leadership
6. Human Relations.
