Explain entrepreneurship and discuss its importance.

Entrepreneurship12345: Entrepreneurship refers to the process of creating a new enterprise and

bearing any of its risks, with the view of making a profit2. It involves an individual or a small
group of partners who strike out on an original path to create a new business1. The entrepreneur
is often seen as an innovator, a source of new ideas, goods, services, and business procedures4.
They are action-oriented and highly motivated individuals who are ready to achieve goals 6.
Entrepreneurship can take various forms, from small businesses to scalable startups, and even
within large companies in the form of intrapreneurship12.

Importance of Entrepreneurship768:

Economic Growth: The success of the products and services created and sold by entrepreneurs
cascades to other businesses and markets7.

Wealth Generation: Entrepreneurs frequently target new markets and tap audiences outside the
focus of established firms, creating new sources of revenue and profits7.

Innovation: Entrepreneurship is the incubator of innovation. It goes beyond discovery and does
implementation and commercialization of innovations6.

Job Creation: Entrepreneurship firms contribute a large share of new jobs6.

Community Development: Entrepreneurs foster a sense of community among people with

common goals and interests, whether in a single neighborhood or across continents7.

Improves Standard of Living: By providing new products and services, entrepreneurship

enhances the standard of living of people6.

In summary, entrepreneurship plays a pivotal role in the growth of the economy, creation of job
opportunities, innovation, and community development. It’s a dynamic process that requires a
combination of skills, creativity, and business sense12345768.

Discuss three main reasons people decide to become entrepreneurs.

Corporate Entrepreneurship123: Corporate entrepreneurship, also known as intrapreneurship,
refers to the process of creating new business, solutions, or services within an existing company
to provide value and generate new revenues2. It leverages the parent company’s assets, market
position, capabilities, or other resources1. This process creates a foundation for boosting
revenue and innovation in the company2. It motivates employees to take necessary actions and
helps the company achieve its goals2.

Use of Corporate Entrepreneurship in Established Firms 4567: Corporate entrepreneurship is

crucial for established firms as it helps them sustain their competitive advantage with
innovativeness, courage, risk propensity, and entrepreneurial leadership5. It applies the
principles of entrepreneurship to the larger context of established firms, focusing on the
development and utilization of innovation and strategic renewal to continuously grow the
bottom line4.

Here are some ways established firms use corporate entrepreneurship:

Innovation and Strategic Renewal: Firms such as Amazon, Apple, and Google continue to
outperform their peers by engaging in corporate entrepreneurship, which allows them to
develop new products and processes4.

Employee Empowerment: Firms empower their employees to act entrepreneurially by

cultivating a culture that includes an entrepreneurial orientation within the firm 4.

Creating New Business Models: Companies that put greater emphasis on creating new business
models grow their operating margins faster than the competition1.

In summary, corporate entrepreneurship is a strategic approach used by established firms to

foster innovation, drive growth, and maintain a competitive edge in the market 4536712.

Discuss three main reasons people decide to become entrepreneurs.

Sure, here are three main reasons why people decide to become entrepreneurs:

Pursuing Their Passion1: Many individuals choose to become entrepreneurs to pursue their
passion. Starting a business gives someone enthusiastic about a certain industry or hobby the
chance to live that passion every day1. This passion drives entrepreneurs to overcome
challenges and find creative solutions1.

Independence and Autonomy12: Entrepreneurship provides the opportunity for independence

and autonomy. It enables people to make choices and have control over their future 1. Those
who value their individuality and liberty are prepared to tolerate and even embrace the risks
associated with entrepreneurship1.

Desire for a Flexible Lifestyle2: Entrepreneurship offers a lifestyle that isn’t bound by the
traditional nine to five. While it involves hard work, there’s much more flexibility to the
entrepreneurial lifestyle than what corporate life permits2. As the old adage goes,
entrepreneurship is living a few years of your life like most people won’t so that you can spend
the rest of your life like most people can’t2.

These are just a few of the many reasons why people choose to become entrepreneurs. The
decision is often driven by a combination of personal, professional, and financial factors 12.
Identify four main characteristics of successful entrepreneurs.
Sure, here are four main characteristics of successful entrepreneurs:

Curiosity1: Successful entrepreneurs have a distinct personality trait that sets them apart from
other organizational leaders: a sense of curiosity. An entrepreneur’s ability to remain curious
allows them to continuously seek new opportunities1.

Innovation12: Entrepreneurs are innovators who come up with new ideas and turn them into
profitable business opportunities. They are comfortable with discomfort and pushing the limits
of their comfort zone2.

Risk-Taking12: Entrepreneurs are willing to take calculated risks. They understand that starting a
new business comes with an inherent amount of risk, but they are prepared to face these
challenges head-on12.

Resilience12: Entrepreneurs are resilient and have the ability to bounce back from failures. They
see challenges as opportunities to learn and grow12.

These characteristics are not exhaustive, and successful entrepreneurs often possess a unique
combination of traits that enable them to overcome obstacles and achieve their goals 12.