Question

Definition of entrepreneur and entrepreneurship

Answer 1

Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs.

Answer 2

An entrepreneur is an individual who starts and operates a business with inadequate capitals and plans, and is accountable for all the risks and rewards of his business venture. Business considerations usually involve a new product or service rather than an existing business model.

Such entrepreneurial enterprises target higher returns with the same high level of uncertainty. Entrepreneurs are prepared to assemble their financial security and careers, to spend capital on an uncertain venture from time to time, to arrange necessary capital, raw materials, manufacturing locations and skilled workers. Marketing, sales and distribution are other significant features which are organized by entrepreneurs.

Even if some of these works have been outsourced, the risk is still done by the entrepreneur. It distinguishes entrepreneurship from selling and selling existing goods or services in the form of inheritance and / or running existing businesses, startups for salaries or working for entrepreneurs, commission agents, or franchisees or dealerships.

Small Business vs. Entrepreneur Ventures

There is a good line between being a small business (SB) owner and an entrepreneur - in roles really is very common - but there are different differences that separate them. Small businesses usually deal with known and established products and services, while entrepreneurial enterprises focus on new, innovative offerings. Since of this, small business owners tend to deal with recognized dangers and entrepreneurs face unknown risks. (For related reading, see: How to manage entrepreneurial risks.)

Limited growth with continuous profitability is expected in most small businesses, while entrepreneurial enterprises increasingly target growth and higher returns. As a result, entrepreneurial enterprises generally influence economies and communities in a significant way, resulting in an impact on other areas such as job creation. Small businesses are more limited in this perspective and are limited to their domains and groups.