Concept, Competencies, Functions and Risks of entrepreneurship
What is an Entrepreneurship?
In simplistic terms, entrepreneurship involves establishing and running a
business or multiple businesses, often taking financial risks to gain and
grow profits.
What is an Entrepreneur?
An entrepreneur establishes and invests in businesses, managing the
company and the uncertainties that come with it. But they also likely are
the primary financial beneficiary of the business. Establishing a business
is often referred to as entrepreneurial activity.
What Are the Concepts of Entrepreneurship?
Concept of entrepreneurship refers to the personal and professional
qualities entrepreneurs must possess to succeed in business
entrepreneurship. These qualities include mindset, skillset, and
knowledge.
Entrepreneurship is not a single concept but a collection of combined
attributes to accomplish business success. Entrepreneurs can learn and
adopt these attributes through education and training or by developing
innate qualities independently based on best practices
10 Key Concepts in Entrepreneurship
1. Risk-taking Concept
Entrepreneurship is a risky venture because success is not guaranteed.
Even with a great idea, the best team, and a solid business plan, there’s
always the risk of failure.
Although the financial risk associated with starting the business is the
most obvious, security, compliance, and reputational risks are involved
too. Entrepreneurs have to weigh the odds of success against the
potential rewards. If the benefits outweigh the risks, the business idea is
worth implementing.
2. Organization Concept
Entrepreneurs need to be organized to succeed. Running a business
entails engaging in different tasks and projects that have to be monitored
and managed. There are endless meetings, emails, clients, suppliers,
and other tasks that entrepreneurs must handle daily in the workplace.
To thrive in such a chaotic environment, entrepreneurs must possess
excellent organizational skills. And it should begin with keeping a clean
workspace. A messy desk or home office can make it almost impossible
to focus and do much work in record time.
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3. Vision Concept
Vision is important for entrepreneurs because it helps them to
understand where they want to go with their business and what they
want it to achieve. A vision expresses the purpose of the business, its
desired end state, the target market, and why it exists.
It’s an aspirational business statement that sets the tone for everything
that happens in the business. It can take many forms, but typically it’s an
idea for a product or service that addresses a need or solves a problem
in the marketplace.
A potential business owner must learn to see opportunities others might
miss. This step must come first before they think of drafting a business
plan or marketing plan. If you don’t have a business vision yet, you can
draw inspiration from your personal experiences, successful
entrepreneurs, and even scientific research.
Regardless of how entrepreneurs source their inspiration, they must
create a vision that resonates with their personality and passion. The
vision should be realistic and achievable.
4. Creativity Concept
Creativity is one of the most important traits of successful entrepreneurs.
It helps them generate new ideas, develop innovative products, and
provide unconventional solutions to people’s problems.
Entrepreneurs can express business creativity in different forms. It might
be a new product or service, a unique marketing plan, or an
improvement on an existing business model. Whatever it is, the creative
energy invested should help the business to stand out from the
competition and be memorable to its customers.
Creativity is a mindset, not a predetermined set of
actions. There are many small things entrepreneurs can do daily
to foster creativity. It could be keeping a journal, taking short
mental breaks, meditation, or reading biographies of inspiring
creative people.
Taking time to recharge and relax will allow your mind to
wander, which is also essential for creativity.
5. Innovation Concept
Many people use the words creativity and innovation interchangeably but
these terms are not as identical as they seem. Innovation involves
translating an existing idea into a product or service, whereas creativity
is the ability to develop new ideas independently.
Innovation is a must, whether you’re a business owner or someone still
looking for an idea to implement. When entrepreneurs develop unique
solutions, they capture the attention of their target market, increase
brand recognition, and build a loyal customer base.
6. Delegation Concept
Delegation helps businesses succeed by creating room for more
autonomy, allowing entrepreneurs to focus on the important parts of the
business. It also allows them to take some breaks and reduce the risk of
burnout. If left unchecked, stress can negatively impact productivity,
health, and even relationships.
To manage stress effectively, entrepreneurs must delegate tasks to their
teams. By delegating, entrepreneurs enable employees to take on more
responsibility and control in their roles, allowing them to become more
engaged and invested in their work.
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7. Persistence Concept
Persistence is one of the essential skills to becoming a successful
entrepreneur. Starting a company is not easy, especially when it involves
creating a new business model. There will always be setbacks along the
way, and it takes concrete determination to keep implementing a
business idea even when things aren’t going well. Entrepreneurs who
give up too soon may not see the benefits of their hard work.
8. Accountability Concept
Accountability is important to any entrepreneur because it shows
investors and employees that they are reliable and trustworthy. It also
helps their companies avoid lawsuits and bad publicity. Without
accountability, an entrepreneur may easily get distracted by other
alluring projects or interests with little to no value.
This entrepreneurship concept also keeps business owners in touch with
stakeholders, team members, and customers, allowing them to receive
real-time feedback and implement course corrections when needed.
Accountability also means keeping an eye on employees. Entrepreneurs
need to monitor employees’ performance and keep track of their work to
avoid lawsuits from unsatisfied customers.
9. Result-Oriented Concept
Being result-oriented is a key attribute of successful entrepreneurs. A
result-oriented entrepreneur is more concerned with the end goal than
the process. In other words, they’re more concerned with getting there
than with how they get there.
This mindset is invaluable for any business owner because it means
they’re willing to take risks and be flexible when necessary. It also allows
for a creativity level that may not be possible when the entrepreneur
focuses on the process.
10. Growth Mindset Concept
Having a growth mindset means seeing failure as an opportunity to learn
and improve rather than a setback. Successful entrepreneurs
understand that success comes from hard work, dedication, and practice
rather than natural talent or token luck.
This understanding assures them they can always grow professionally if
they invest the right amount of effort.
People with a growth mindset believe they can grow their businesses
through positive, incremental actions. They understand that building a
business takes time and effort, but they also know that they can learn
along the way.
What is an Example of Entrepreneurship?
Examples of entrepreneurship include small business ventures such as
restaurants and retail stores, where individuals have invested their own
capital and reap profits based on their businesses’ success. Several
startups like Facebook, Instagram, and Uber have demonstrated rapid
growth potential. These examples showcase the diverse range of
entrepreneurship from small businesses start-ups.
What is entrepreneurial competency?
Entrepreneurial competency is a set of skills and behaviour
needed to create, develop, manage, and grow a business venture.
It also includes the ability to handle the risks that come with
running a business. Without a doubt, business owners and startup
founders must possess most of the entrepreneur competencies to
succeed.
Just like other types of competencies, there are different sub-
categories here. The competencies could be technical,
behavioural, attitude-based, or productivity-based.
Those with an entrepreneurial zeal need to play three prominent
roles.
1. Creator
2. Organizer
3. Market maker
So the competencies for entrepreneurship are designed to help
people perform in these roles effectively.
