Concept of Entrepreneurship

The word “entrepreneur” was derived from the French verb enterprendre, which means “to
undertake.” This is pinpointing to those who “undertake” the risk of enterprise. The enterprise is created
by an entrepreneur and the process is called “Entrepreneurship.” Entrepreneurs are innovators. They are
willing to take the risks and generate unique ideas that can provide profitable solutions to the needs of
the market and the
society.

Enterprise: An enterprise is a comprehensive and purposive endeavor marked by substantial planning,

resource allocation, and specific objectives. It encompasses diverse undertakings such as business
initiatives or projects aimed at realizing defined aims.

Entrepreneurship: Entrepreneurship pertains to the process of identifying, developing and managing

business idea, product and services with the aim of generating profit and growth.

Corporation: A corporation is a distinct legal entity established through the process of incorporation. It
possesses autonomous legal existence, conferring the ability to enter into contracts, hold assets, and
conduct commerce. Corporations typically confer limited liability protection to their shareholders,
mitigating personal liability beyond their invested capital.

In simple words:

Enterprise: A business idea/plan or project you want to start, like opening a bakery.

Entrepreneurship: Taking action on that plan with innovation and risk-taking.

Company: The team you gather to make your plan happen, like the bakers, decorators, and cashiers in
the bakery.

Corporation: Elevating your company to an official legal status, like giving your bakery a special badge
that says "official business."

So, an entrepreneur begins with an enterprise, uses entrepreneurship to form a company, and
can later choose to turn that company into a corporation for extra official status.
Businesses are the backbone of the economy. Entrepreneurs play an important role in developing the
economy through providing the needed products and services including the solution to the problem of
unemployment. Entrepreneurship is encouraged by the economy because it can provide a lot of
opportunities for the unemployed people. It will increase per capita income, improve standard of living,
and increase individual savings, provide revenue to the government in the form of income tax, value
added tax, export duties, import duties, and balanced regional development.

RELEVANCE OF ENTREPRENEURSHIP

1. Development of Managerial Capabilities - this means that one of the benefits

an entrepreneur gets is to develop his managerial skills.

2. Creation of Organizations - which means that because of entrepreneurship

many organizations will exist.

3. Improving Standard of Living - this means that entrepreneurship can lift up the

economic status of an individual.

4. Means of Economic Development - this means that not only the life of the

entrepreneur is improved but also the society where the business is located.