Blog 7- Entrepreneurship

We frequently hear that so and so is an entrepreneur who has established their own company.
When we hear the term entrepreneur, we usually think of someone who has started or is
establishing their own business, or someone who has struck it rich on their own. This is correct,
as entrepreneurship is defined as the process of establishing a business or an organisation for
profit or for social purposes. To distinguish and separate commercial entrepreneurship from
social and charitable entrepreneurship, we have used the phrases for profit or for social needs. It's
time to define who an entrepreneur is and what he does now that we've defined entrepreneurship.

An entrepreneur is the one with the business plan, he gathers all the necessary resources needed
to put into action and he is only the one responsible for the success or failure of the business.
Note the emphasis on the phrase "responsible for success or failure," as the entrepreneur differs
from the professional manager in that the former either invests his or her own resources or raises
capital from outside sources, and thus bears the risk of failure as well as reaping the benefits of
success, whereas the latter, or the professional manager, performs the job and the work assigned
to him or her for a monetary reward. In other terms, an entrepreneur is a risk-taker and an
inventor who also creates new businesses, whereas a professional manager is merely an executor.

Attributes
To begin with, an entrepreneur must be an innovator with a game-changing idea or a possible
fresh concept that can compete in a congested market. Investors typically invest in ideas and
concepts that they believe will provide adequate returns on their capital and investments, thus the
entrepreneur must have a truly creative idea for a new enterprise.

Leadership Qualities
Apart from that, the entrepreneur must have outstanding organisational and people management
abilities because he or she must start from the ground up, bond with his or her staff, and get
along with the other stakeholders to assure the venture's success.

Furthermore, the entrepreneur must be a leader who can inspire his or her staff, as well as a
visionary and someone with a sense of mission, as the entrepreneur is responsible for motivating
and driving the enterprise. This suggests that an entrepreneur's main skills and traits include
leadership, values, team-building ability, and managerial competencies.

Risk Taker
We've spoken about what entrepreneurship is, what abilities and characteristics entrepreneurs
require, and how they engage in creative destruction. This does not imply that all entrepreneurs
are successful; the fact that they might be victims of creative destruction, as well as a lack of
other characteristics, means that the majority of new ventures do not last more than a year. When
businesses fail, the obvious question is who bears responsibility for the failure and who loses
money. The entrepreneur either invests his or her own money or raises capital from angel
investors and venture capitalists, which implies that if the company fails, both the entrepreneur
and the investors lose money. Note that, as previously said, employees and professional
managers lose their jobs, and their money is not at risk unless they are venture partners. As a
result, the entrepreneur is the venture's risk taker, which means that the firm's success or failure
reflects on the entrepreneur.

Need for a Nurturing Ecosystem

Finally, notice how the word "nurturing ecosystem" is used. This means that, just as
entrepreneurs cannot succeed if they lack the necessary characteristics, they cannot succeed if
they live in an environment or country that does not encourage risk or tolerate failure, and, more
importantly, is unable to provide them with the financial and human capital they require to
succeed. This means that the United States remains the preeminent country for entrepreneurship
because it has the ecosystem required for entrepreneurs to succeed, whereas in many other
countries, finding funding, working through red tape, and ensuring that environmental factors do
not inhibit entrepreneurship is often impossible or difficult. But, as the time is changing , a lot of
policies are being made in India, so as to encourage entrepreneurship.