Whenever we talk about a business term it is essential to analyse its meaning, ENTREPRENEURSHIP i.e trying to identify market opportunities, arranging resources to bring an imaginative idea to a practical situation and investing these resources in order to attain long term gains.
The characteristics of entrepreneurship can be recognized as
- CREATIVE ACTIVITY i.e it involves innovation of products and techniques by keeping in mind the market;
- DYNAMIC PROCESS i.e. keeps in mind changing external environment;
- PURPOSEFUL ACTIVITY i.e. purposed to earn profits or bring a difference to the market ;
- INVOLVES RISK i.e entrepreneurial decisions are vast and can not be reverted easily and involve great deal of investments.
The dictionary defines an entrepreneur as a person who undertakes a commercial venture organizes it, raises capital to finance it or a major portion of the risk.
Characteristics of an entrepreneur include
- ability to bear risk,
- technical knowledge about production techniques and marketing,
- ability to gather financial and motivational resources
- ability to build a sound organization.
Also the are various TYPES of ENTREPRENEURS that constitute of
- INNOVATIVEi.e introduction of something new to the nation (e.g: Dhirubhai Ambani, Indian entrepreneur);
- IMITATING i.e. one who adopts a method of production or technology already adopted by someone else and may not be able to afford resources for entrepreneurial research;
- FABIAN i.e those who are cautious in adopting any changes and are shy and lazy to adopt new methods
- DRONE i.e. those who resist changes and continue to use old or traditional methods of production.