Entrepreneurship
Entrepreneur has an important contribution in the economic development of any country. The resources of country are best utilised by the entrepreneur. Entrepreneur take the risk of using the resources of the country and complete the task of new creation. At present, entrepreneurs are emerging as a source of inspiration for young people. Today's youth consider entrepreneurs like Bill gates, Mukesh Ambani, Mark Zuckerberg, Narayana Murthy, Kumar mangalam Birla as their ideal and this is the reason that in the survey conducted by the opinion research council of the United States, young people between the age group of 18 to 24 years of them, 58% express their desire to start their business.
The emergence of entrepreneurship took place with humans taking risks of business and facing uncertainty. Entrepreneurship has become very important in the present age. Today, the world acknowledges the importance of entrepreneurship that the economic advancement of a nation is dependent on entrepreneurship. Today, governments of different countries are their entrepreneurs respect, control and urge them to invest, the same factor explain the importance of entrepreneurship.
According to a survey 78% of the influential people believe that entrepreneurship will determine the trend of the country.
The development of entrepreneurship is happening at very fast in our country. In the world, our country is second in the entrepreneurship development index. It is a sign that Indian youth is now interested in setting up a business of their own. There are adequate infrastructures available for the development of entrepreneurship in our country, exemptions and concessions are are provided in government policy and control for the entrepreneurship development.
What is Entrepreneurship?
In the modern Times, the field of entrepreneurship has expanded, in fact, the establishment of new Ventures, its direction and control, change in the enterprise and creativity, the ability to take risk of corrective action is called entrepreneurship. Those who are disqualifications are known as entrepreneurs.
According to Howard Johnson, “ Entrepreneurship is the composite of three basic elements- Inventions, Innovation and Adaptation.”
In essence, entrepreneurship is the process in which entrepreneur create creative innovation by exploring opportunities, raises the risk of social innovation and the business to be dynamic, in which the entrepreneur establishes and operates new business organisations and courage to offer the new product or service.
Nature of Entrepreneurship:
The following key features of entrepreneurship are found:
1. Innovation:
At present, entrepreneurship is not the only act of performing traditional task, but it involves innovative technology, innovative products or any other kind of innovation. Only when the entrepreneur adopt innovation in his business, it is justified to put him in the category of entrepreneur. Peter drucker has written “Innovation is a speciality of Entrepreneurship.”
2. Risk bearing:
Entrepreneurship is synonymous with risk taking ability. An entrepreneur rises the risk by establishing and operating a new venture, presenting innovative production in the market, investing his wealth, time and hard work to determine pricing between the market's uncertainties. An entrepreneur values are always surrounded by high trends, change in customers interest, competition, changing government policies,etc.
3. Based on Principles, not on intuition:
Entrepreneurship is based on principles. It is not based on intuition of a person. Entrepreneurship is based on the principles of business science, economics, psychology, law sociology, management.
4. Professional Activity:
Entrepreneurship in the present age is a professional and earned qualification. If a person wants to achieve this qualification, then he can acquire qualifications by getting educational training in various teaching and training institutes. Not only that, various government organisations are currently operating programs and schemes to develop and awaken the entrepreneurship Trend.
5. A Process of Searching Opportunities:
Entrepreneurship is a process of finding opportunities. An entrepreneur seeks entrepreneurial opportunities and executes the problems of individuals in their needs and aspirations, social and technological changes, competition, etc. As there is no small hotel or restaurant for eating in an industrial area, entrepreneur open a new tiffin centre there to find new opportunities in the problem of individuals.
Importance of Enterpreneurship:
Entrepreneurship is the pillar of economic and industrial progress of a country. This is a reflection of the economic and industrial development of the country.
Entrepreneurship plays an important role in all situations, weather the economy of any nation is developing or developed, whether the ideology of that nation is capitalist or communist or socialist, whether the leadership of that nation is Republican or monarchy or authoritarian.
The importance of entrepreneurship can be explained by the following points-
1. Basis of Economic Development of Nation:
Entrepreneurship helps in fast and balanced development of the country. Entrepreneurship is not only the basis of business activities but by generating employment opportunities in the country, it increases the national income by utilising the resources, thereby strengthening the capital formation and the rapid development of the country.
2. Helps in establishing new enterprises:
Innovative industries are established by the entrepreneur. Entrepreneurs also establish new industrial units in the risky areas by arranging necessary resources. Many enterprises have been set up by various industrial houses in the country and inspired by these, new entrepreneurs are also setting up industries of new products by making many decisions.
3. Promotes Capital Formation:
As a result of entrepreneurship, an entrepreneur develops an expanse innovative ventures and develops existing industries. For this, he utilizes the capital of public and its public through debentures. Generating an investment and encourages saving and promotes capital formation. According to Razor Naskat,“ Only entrepreneurship in developing countries can play a key role in breaking the impregnable fortress of capital and can accelerate economic powers in capital formation.”
4. Helps in execution of Government Policies and plans:
Through entrepreneurship there is not only implementation of industrial policy, but it also plays an important role in implementing other schemes and policies made for the development of the country. Entrepreneurship provides participation in various public welfare schemes run by the central and state governments and assist in their implementation.
5. Encourage to research and investigation:
Entrepreneurship emphasizes innovation and innovation can be related to product, technology or Market. Continuous research an investigation work is done to maintain innovation and at the present time, different departments have also been started in the undertakings. The main task of research in investigation department is to adopt a scientific approach and to innovate.
Forms of Entrepreneurship:
Generally, entrepreneurship can be classified in the following manner:-
A) On the basis of Size:-
1. Big Entrepreneurship.
2. Small Entrepreneurship.
B) On the basis of Ownership:-
1. Private Entrepreneurship.
2. Joint Venture Entrepreneurship.
3. Co-operative Entrepreneurship.
C) On the basis of Leadership:-
1. Self or personal.
2. Group.
A) On the basis of Size:
1. Bg Entrepreneurship:-
Search business house where a lot of cash is involved as an investment in big machine and a big number of labourers are used in the business to produce the goods on a large scale and for management purpose these organisation or business houses appoint professional personnel.
2. Small Entrepreneurship:-
This business houses are small in size and have limited resources. Mostly when people start their own business with limited capital on a small scale. Such businesses require less finance and capital to start and limited resources to flourish.
B) On the basis of Ownership:-
1. Private Entrepreneurship:
When the risk of carrying business is borne by anyone individual only and the initial investment and the further introduction of finance is the responsibility of that one individual only, that business is called private entrepreneurship.
2. Joint Venture Entrepreneurship:
Those ventures or business where the government with the private houses invest in certain types of sector which are important for the working of the economy. Mostly search of venture and partnership between the government and private business house is seen in backward areas or underdeveloped sectors. It helps in increasing the growth rate of the economy and providing employment.
3. Cooperative entrepreneurship:
When certain people of society come together for the benefit of the members as whole and share the profits and losses of the business together and undertake the business mostly not for the profits or distributing the prophet among the members of the holders of the units of the cooperative society. Search forms of business provide employment opportunities and support. Women cooperative entrepreneurship is the best example of such form of business.
C) On the basis of Leadership:
1. Self or Personal:
It is such form of business in which all the major decisions are taken by one single person. He has the whole-sole control of the business and he take the full sponsor beauty of the business as he has the total authority.
2. Group:
It is such form of business where a group of people takes the major decisions. The group has the responsibility distributed among them and they work jointly together and have let down clear rules guiding the powers, duties, authorities and responsibilities among themselves. The main thing is that they work together and not depends solely on one person.
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