Basic Concept of Entrepreneurship – The basic concepts of entrepreneurship are not new developments and Until the 19th-century when entrepreneurs were just only regarded as the persons who take risks, people who face uncertainties and persons that create Enterprises. These days, right from the very beginning of the 20th century, the entrepreneurship description was being accepted as persons who are innovators. To become an entrepreneur, there are skillset you must have in place, examples of such entrepreneurial skills are Business management skills, Teamwork and leadership skills, Communication and listening, Customer service skills, Financial skills, Analytical and problem-solving skills, Critical thinking skills, Strategic thinking and planning skills.
So, the concepts of entrepreneurs have been ever changing varying with time and place. This article discusses the basic concepts of entrepreneurship so you may just take a glass of wine and read gently to digest all information in this content;
Here are the Basic Concepts of Entrepreneurship
1. Interest & Vision
The 1st factor for your success in an entrepreneurial journey is interest. And for the fact that entrepreneurship as a whole pays you off according to the level of performance put in place rather than the time you have spent on a particular effort, then it means that entrepreneurs are expected to work in an area, field or sector that interests her. If not, she will not be able to keep to the high level of work ethics in the role, and she is most likely going to fail in the venture.
This interest we are talking about must also go a long way to translate into a vision for the industry’s growth. And even though the day-to-day activities of a business venture has proven to be interesting to an entrepreneur, it is not just enough for achieving success in entrepreneurship unless he or she is ready to turn this interest into a vision of growth & expansion. This vision is expected to be strong enough that you as an entrepreneur can successfully employ it in communicating to your investors and employees.
2. Diverse Areas of Skill
All of your interest and vision as an entrepreneur cannot make up for a total when there is no applicable skill. As the chairman of a company or an establishment whether he has employees or he does not, an entrepreneur is expected to be able to wear many hats & he must be able to do so effectively. For example, if he or she to start a business that is creating mobile games, he should be able to have good level of knowledge in mobile technology, knowledge of gaming industry, the game design, knowledge of mobile application marketing or knowledge of programming.
3. Financial & Emotional Investment
An entrepreneur is expected to invest in his company. This investment may be anything less tangible, which might include the time the entrepreneur spends or the skills or reputation the entrepreneur brings with her, but it also seems to be involved in a significant investment of assets with better value, if even they are cash, real estate or into the intellectual property. An entrepreneur who will not, who is not eligible or who cannot invest in her establishment cannot let others to do same and so he or she cannot expect the business to succeed.
4. Organization & Delegation
While most of the new businesses are established as a one-man show, successful entrepreneurship is accompanied by quick growth as well as stable growth. This implies that you hire other people to do specialized jobs. From the above reason, it could be deduced that entrepreneurship requires extensive organization and it hugely relies on delegation of tasks.
It is crucial for entrepreneurs to pay keen attention to all details that goes on in their establishment, but if they wish that their companies will succeed, they are expected to learn how to hire the right people for their required job roles and they would let them do their jobs with little or no interference coming from management.
5. Risk & Rewards
Entrepreneurship needs you to take a lot of risk. The measurement of this risk will have an impact on the amount of time and money you will likely invest into your business. Moreover, this risk also seems to relate directly to the available rewards that we be involved in the process.
An entrepreneur that focus on investing in a franchise will most likely pay for someone else’s business plan and he gets a respectable income, on the other hand, an entrepreneur who is running an groundbreaking innovation will have to risk everything on an assumption that a revolutionary action will work in the market. If such a revolutionary is not correct, she can get rid of everything. However, if the entrepreneur happened to be right, he or she may suddenly get wealthy.
6. Learning From Your Failures
It is not just to fail but are you able to rise despite all circumstances surrounding your failure? One of the most vital lessons that entrepreneurs should have at the back of their minds is to learn how to deal with failure. You should always know that Failure is a segment of any business, and it’s crucial if you bear in mind that it’s not over when you fail, it is not the end of the world. In fact so you can keep running no matter how many times you failed, many successful entrepreneurs have failed for countless times before they are able to find the success that now keeps them running.
The main thing here is to learn from your failures. Each time your plan do not work out, you should dedicate enough time to analyzing what was actually wrong that led to it and what you may likely do differently should in case you encounter same problem next time. This analysis will assist you in improving your chances of success in the nearest future.
Entrepreneurship is a multi-faceted and complex endeavor, but these are the basic concepts that all successful entrepreneur are expected to master.
These concepts are all covered in the process of opportunity identification, in the creation of value, in risk management, the level of resourcefulness, the networking you are building, sales and marketing, as well as financial literacy. By mastering the basic concepts highlighted in this content, entrepreneurs can be able to accurately set themselves up for huge progress in their businesses.
Frequently Asked Questions
What are the four (4) types of entrepreneurship?
Most often, the types of entrepreneurship are broken into 4 categories: these are listed below;
large company or intrapreneurship.
What are the 7 keys of entrepreneurship?
Don’t take ‘no’ for an answer. …
Learn from the best. …
Stay hungry and ambitious. …
Never stand still; evolve with the times. …
Nurture long-term business relationships. …
Inspire those around you. …
Trust your gut instinct, not just your spreadsheet!
What are the 5 keys to entrepreneurship?
They’re Innovative. …
They Aren’t Afraid to Take a Chance. …
They’re Willing to Work Hard. …
They Know How to Manage Money and People. …
They Are Passionate About What They Do.
What are the 7 characteristics of entrepreneurship?
What are the five characteristics of entrepreneurship?
Humility and self-awareness.
Highly adaptable and future orientated.
Risk-taker and not afraid of failure.
What are the most important entrepreneurial traits?
Product or service knowledge.
Ability to network.
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