The ability to establish the new enterprise, directing and controlling it and adventure capacity to make changes and carrying out various new improvements in the enterprise is called ‘entrepreneurship’ and there are many types of features of entrepreneurship.
Nature and Characteristics of Entrepreneurship
Following are the nature and characteristics of entrepreneurship:
1. Risk Bearing Spirit
There are fundamental characteristics of entrepreneurship.
Entrepreneurship is the spirit or capacity for bearing risks.
Various types of risks are to be faced, right from the establishment of the business enterprise to its operation and entrepreneur is also required to possess the strength to provide a guarantee against the uncertainty.
In modern business, risk-bearing has become important, due to increasing complications in the business.
Related: Entrepreneur and Risk-Taking Capacity – Explained.
2. Ability to Innovate
Entrepreneurship is an innovative activity, through which creative ideas may be implemented.
Entrepreneurs give proper attention to new opportunities, new techniques, new commodities, new raw material, new production or distribution system, new trade, new machinery, new management system, etc. In the developed economy.
Besides, it is true that entrepreneurship is a creative innovative response to the environment.
“Innovation is a specific tool of entrepreneurship.”
Related: 15 Roles of Entrepreneur as Innovator (Explained).
3. A Lifestyle
Entrepreneurship is a systematic Lifestyle because every person has to be imaginative and creative to achieve goals in life.
Not only that, but he has to also up possess the ability to formulate plans, to take decisions and to implement the plans and decisions.
This is the must follow the characteristic of an entrepreneur.
Related: 12 Main Functions of an Entrepreneur (With Examples).
4. Environment Oriented Activity
Entrepreneurship is an open and external activity, linked with the economic, social, political, cultural and physical environment.
The entrepreneurs take the risk of producing improving and making changes in the products or services.
“Entrepreneurship is the creative response to every external condition.”
5. Universal Activity
Entrepreneurship is a Universal activity because the enterprise is required in all walks of life, like education, health, medical, politics, Army, sports, etc.
Besides, it is equally required in all types of businesses, whether big or small, and in all these works and activities, risk-bearing, innovations, and leadership are required.
This makes entrepreneurship a Universal activity.
Related: 19 Factors Influencing Entrepreneurship Development.
6. Motivational Activity
Entrepreneurship motivates the businessmen and Industrialist to create new ideas, to implement them, to search for various new opportunities and to make constructive thinking.
Hence, entrepreneurship is a motivational activity.
7. Creation of Resource
Entrepreneurship transforms the unuseful resources into useful products or services.
Like the transformation of raw materials and goods into resources.
Entrepreneurship increases competence to use productive sources because some economic values are linked with them.
Thus, entrepreneurship is a process to develop utility, economic values and the ability to create wealth.
“Without entrepreneurship, every machinery is garbage and every mineral is a slap, or entrepreneurship may convert the heap of soil into gold.”
Related: 15 Major Importance of Creativity in Entrepreneurship.
8. Practice-Based on Knowledge
Entrepreneurship is a practice based on Knowledge because an entrepreneur creates quality for the enterprise, on the basis of his knowledge and experience and he attains high achievements.
9. Creative Activity
Entrepreneurship is a constructive and creative activity, the reason being that it provides inspiration to persons for searching for new opportunities and also for creative thinking and implementations thereof.
Besides, in this activity, constructive activities are carried out also by making changes in the resources of production, designs of the commodities, quantity, and Markets of the commodities, etc.
As a result, capital formation and other activities go on continuously in the country.
10. Management is the Tool of Entrepreneurship
In any enterprise, management is the vehicle of implementations of entrepreneurial plans and decisions.
Changes and improvements in entrepreneurs are introduced only by management.
Not only that, by increasing the use of management, in new activities, new business, non-business organization entrepreneurship have developed.
Thus, management is the tool of entrepreneurship.
Related: 15 Key Features of Effective Management Control System.
11. It is Based on Principles, Not on Intuition
Entrepreneurship is based on certain principles. This is not only a spirit emerging from intuition or inner inspirations of any individual.
Rather, it is based on principles and thoughts of Economics, Law, Physiology, Sociology, and Statics, etc.
Hence, a successful entrepreneur is required to have knowledge of these subjects.
Hence, entrepreneurship is based on principles, and not intuitions.
Related: 37 Essential Qualities of a Successful Entrepreneur (Must Know).
12. Result of Different Changes
Entrepreneurship is not an economic activity or event alone, but is the result of the following changes:
- Social, political, scientific and Technical changes.
- Changes in social values, government policies, organizations and education.
- Science, population, cultural and physiological events, etc.
Thus, as a result of the above changes, the approach and thoughts of people are continuously changing and entrepreneurial tendencies are also developing.
13. Business Oriented Attitude
Entrepreneurship is a business-oriented attitude because it provides inspiration to interest taking individuals and organizations, for having business-oriented imaginations, for making plans and for establishing industries.
Besides, it also provides inspiration to people to become the entrepreneur and establish any enterprise.
As a result, various new business enterprises established in society.
This is the major characteristic of entrepreneurship.
Related: 19 Role And Importance Of Managerial Economics (Step-by-Step).
14. Result Oriented Behaviour
Entrepreneurship always puts emphasis on a result, and not on destiny.
Hence, every entrepreneur believes in achieving results through their efforts and Labour.
Besides, they Pay attention to gaining achievements, through their result-oriented behavior, strong plans, and sound decisions.
Thus, entrepreneurship is a result-oriented behavior.
15. Professional Activity
In the present context, entrepreneurship is not inborn quality but an acquired quality, because if someone desires to acquire this ability, he will have to participate in entrepreneurial development programs organized by various institutions and organizations.
This is now becoming a profession due to the following reasons:
- The ability of entrepreneurs is being enhanced and developed through education and training.
- The government is also introducing various schemes to create interest and attitude towards entrepreneurship.
Now entrepreneurship is not only a talent by birth, rather this is an earned talent, but entrepreneurship is also thus emerging as a professional activity.
Related: 18 Characteristics of an Entrepreneur (Explained).
16. Process of Personality Development and Role Transformation
Entrepreneurship is a process of personality development and rural transformation because the entrepreneur adopted new ideas new activities and new behavior besides he is continuously occupied with those activities until his identity is not established as an innovator.
Hence, “entrepreneurship is not the only adoption of some new work or behavior, but this is also the transformation of personality, through which he establishes the new identity.
Related: 20 Types of Entrepreneurship (Explained with Examples).
17. It is not a Personality Trait but a Behaviour
Entrepreneurship is not a personality trait, but it is a behavior.
Because the person who bears risks and performs innovative and creative functions grows as a Big Entrepreneur day by day.
Besides, every person, through the development of decision-making capabilities and entrepreneurial behavior, can become a big entrepreneur.
“Entrepreneurship is not the trait of personality, rather this is a behavior.”
18. Equal Essential for all Businesses and Economics
Entrepreneurship is equally essential for all businesses, big or small and in all types of economies, developed or developing.
It is essential for the development and survival of every business.
Entrepreneurship exists in all societies and economies, in different forms.
Thus, it is evident that entrepreneurship is equally important for all business and economics.
Thus, now you know the nature and characteristics of entrepreneurship.
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