Entrepreneurship : it's importance and qualities of a successful entrepreneur

 

The word Entrepreneurship is derived from the French word 'Entrepredre' which means 'to take responsibility for the work'. Initially in France, this word was not related to the economic world, but was used in relation to taking responsibility for military work.

Three main factors of production have been considered in economics – land, labor and capital. Somebody has to do the work of organizing the above mentioned three factors and putting them to a certain use, all these factors of production can actually produce and the person who does this is called an entrepreneur. The entrepreneur identifies the business opportunity and organizes the factors of production to take advantage of it and establishes the business and bears all the risks and uncertainties related to it.
The process of doing all this by the entrepreneur is called entrepreneurship. Importance of Entrepreneurship- It is the entrepreneur who organizes the factors of production and engages them in production. Therefore, entrepreneurship is necessary for the utilization of resources and economic development.

The importance of entrepreneurship is due to the following reasons-

1. Capital formation:  The entrepreneur creates capital by mobilizing his own savings and that of the people and invests it in productive works. It is an informal alternative to institutional capital formation Is. The invested capital increases the productive capacity of the economy.

2. Creation of employment opportunities –   Not only does the entrepreneur create self-employment for himself, but also for many people with different abilities and skills in the form of employees, raw material suppliers, marketers, agents, etc. for his organization. Generates employment/self-employment opportunities.

3. Efficient use of resources-  The entrepreneur focuses personally on the efficient use of resources and more production at less cost, hence he increases economic efficiency.

4 Growth in GDP-  Entrepreneur production done by the increase in total domestic product is done by different groups, which helps in the increase in total domestic production and economic development.

5. Types of simulations of the process of development is helpful-

:reduce regional Preventing 

:the centralization of means of production 

 :Disparity in demand and supply

6. To improve the condition: of education environment, livelihood etc. in the discharge area of ​​his tomb.

7. Innovation :  From identifying business opportunity to conducting business, conducts innovative experiments at many levels, introduces new products and benefits of innovations

8. Spreading the spirit of adventure – entrepreneurs succeed by taking business risks climbs the ladder. It serves as a source of inspiration for other budding entrepreneurs.

Entrepreneur and management are separate from each other. Entrepreneur is the owner of the business who initiates and organizes the resources to start the business for profit. The management is usually paid, who runs the pre- established business depending on the available resources. It is not necessary that an entrepreneur should be an expert in any field, but expertise in the field of work is expected from the manager.

Important qualities of a successful entrepreneur-

•Ability to take business initiatives at appropriate times

 •Willingness to bear risk and uncertainty and foresight towards decisions

 •Identifying opportunities and acting accordingly

•Obtaining information from all possible sources for adequate knowledge about the business environment

•Confidence and leadership skills

•Systematic planning

• Hard labor work

•Dominant personality

•Skilled supervision

••Sensitive to employees and other associates publication

What is the job of an entrepreneur?

(i) Identifying a business opportunity and generating an idea to make it a reality

(ii) Studying the possibilities and deciding about the form of business organization

(iii) Organizing the factors of production

(iv) Continuous innovation in business

(v) Carrying risk uncertainties

(vi) To arrange for placement in the organization i.e. human resource planning, recruitment, placement, training, performance, evaluation etc.