Introduction
Entrepreneurship is the process by which a group or individuals exploit the market opportunity by substantially improving the services, method of productions, and improving the existing goods or bringing new products in the market. Entrepreneurship is defined as readiness and ability to run, develop and organize a business enterprise, together with the management of uncertainties to make a profit (Li et al., 2018). Entrepreneurship connects with capital, land, labor and natural resources to generate profit. Its vision is defined by risk-taking and discovery, which is an indispensable part of the country’s economic capacity to succeed in the competitive and ever-changing global marketplace.
Entrepreneurship significance includes the creation of employment; it generates employment by providing entry-level jobs, which is required in gaining training and experience for unskilled employees. It supports the development and research services and new products needed to be tested and researched before being launched in markets (Li et al., 2018, p. 708). Entrepreneur, therefore, dispenses finance for development and research with universities and institutions. It has a significant impact on community development and society; society becomes more significant and diversified when the employment base is large.
Entrepreneurship is characterized by several factors that make it successful. These factors include the ability to take a risk to start a new venture. One should increase the chance of failure risk though, every entrepreneur needs to be able to evaluate and be courageous to take the risk. Innovation is another factor that makes entrepreneurship successful because it creates new ideas to start a company and earn profit. The other factor is leadership and visionary quality where for one to be successful needs to have a clear vision of a new venture and thus, turning ideas into reality and utilizing employees and resources. Leadership qualities are paramount in guiding employees to the right path of success (Li et al., 2018, p. 708). The other factors are knowing the product and being flexible; companies should know the product they are offering and be aware of the trends in the market. It is essential to know the available service and product that meets the current market demand.
Entrepreneurs Activities
Entrepreneurs’ activities are human enterprising actions in persuading the generation value by expansion and creation of economic activities. An entrepreneurial activity is phenomenon which is associated with entrepreneurship (Chitsaz et al., 2019, p. 1393). These activities include advertising, selling, manufacturing, distributing, and processing of services and goods. This includes contracting private corporations for eldercare services and do not include AAA, which is authorized to perform pursuant to older Americans. Such entrepreneurs’ activities include skills, responsibility, commitment, and freelancing.
Enterprise
Enterprise is another name for the business and it is a legal entity that possesses the rights to conduct business, such as establishing a bank account, entering into contracts, owning property, and incurring liabilities. It may be a nonprofit organization, a quasi-corporation, an unincorporated enterprise and a corporation (Baù et al., 2017, p. 921). It can also be defined as the willingness to take the new project to undertake a business venture.
The Difference between Serial Entrepreneurs, Intrapreneurs, and Owner-Managers
The Difference Between Entrepreneurship and Intrapreneurship
Entrepreneurship is defined as a dynamic process for creating incremental wealth, while intrapreneurship is entrepreneurship in an existing organization. The other difference is in the core objective where its crucial objective is to innovate new ideas regarding the social-economic value, while intrapreneurship’s core objective is to increase the organization’s market sustainability and competitive strength (Lafuente et al., 2019, p. 670). However, entrepreneurs are motivated to innovate for organizational financial gain and tad independence, while intrapreneurs are primarily motivated by enhancing the regarding the capacity of the autonomy and organization.
Entrepreneurs engage in activities and take total participation during the process of innovation. At the same time, intrapreneurs are involved in participation which is more delegated than authority. Entrepreneurs bear all types of risk while intrapreneurs hear and moderate risk (Lafuente et al., 2019, p. 670). Moreover, entrepreneurs are not bothered with status; they are sovereign and free individuals, while intrapreneurs in terms of status institutional employees expect freedom at work. Intrapreneurs keep the risky project as the secret where it is prepared because of high concern of mistakes and failure. At the same time, entrepreneurs recognize failures and mistakes in taking innovation efforts. The other difference between the two is that intrapreneurs collaborate to make decisions regarding the execution of ideas while entrepreneurs are independent in the decision of execution of ideas.
The Difference Between Entrepreneurs and Managers
Managers are supposed to render efficient and effective service in creating the entrepreneur’s venture to run the venture successfully. In contrast, entrepreneurs are supposed to start a venture of difference in providing distinct qualitative services and goods to the economy. Managers are servants of the venture organization who earn a salary, and he is not independent of the employer. At the same time, entrepreneurs are the owners of the ventures and holders of patented services and goods (Lafontaine and Shaw, 2016, p. 228). Managers do not risk because they are responsible for any systematic risks but not the threats associated with uncertainties while running the enterprise (Dvorsky et al., 2021). At the same time, entrepreneurs assume all dangers by facing uncertainties by merging both the unsystematic and systematic uncertainties.
Entrepreneurs are innovative and introduce new ventures ideas with the values and vision of entrepreneur in meeting the market change needs and address organization with modified, effective way and new differentiated goods. At the same time, managers are responsible for executing the innovation developed by the entrepreneur; in other words, managers mainly translate ideas developed by entrepreneurs. Managers have a low tolerance for ambiguity and seek to concrete the organization (Lafontaine and Shaw, 2016, p. 228). Moreover, entrepreneurs are not entitled to submit to any authority. Thus, they accept organizational roles and misfit the given authority by enacting their authority which will obey them.
Typology of Entrepreneurship
Typologies exist in four entrepreneurial opportunities: allocative, construction, imitation, and discovery. All of these have individual characteristic and are based on prior knowledge, one’s current perspective and emotional sensitivity (Defourny and Nyssens, 2017). Typology is categorized into linguistic anthropology, cultural, biological, and archaeological.
Lifestyle and Growth Firms
A lifestyle business is set up by primary entrepreneur aiming to sustain a particular income level and help in providing the foundation for the enjoyment of a particular lifestyle. Firms in this sector depend more on founder skills, energy, contacts, and personality. Mainly lifestyle entrepreneurs focus on organization profitability and personal income, while growth entrepreneurs mostly focus on growth as they try to raise money.
Entrepreneurship in a Corporate Sector Context
Entrepreneurship and the public sector context is the promulgation of innovation regarding public policy initiatives that generate greater economic prosperity by transforming the status-quo economic environment to a more conducive unit. Entrepreneurs in the public sector create great importance by adding national income, thus increasing the rate of employment and earning, which contribute to high national income by increasing taxes and higher government spending (Mathias and Williams, 2017, p. 900). The government invests the revenue generated from taxes to help the struggling sectors and human capital. Public contextual are the factors that reflect a particular group, society, individuals and community.
Social Enterprise with Examples
A social enterprise is a business with specific social objectives as one of its goals in using commercial structure in running an organization. It aims to make a solid societal impact and maximize profit, used to fund their social programs (Defourny and Nyssens, 2017, p. 2482). Social enterprise takes many forms. It can be for both profit and nonprofit organizations. The common thing in social enterprise is that they adopt two different goals; the first goal is to reach cultural, social environmental outcomes and economic outline of the organization mission. The second goal is to generate profit. It operates under structures traditional business (Bidet, Eum and Ryu, 2018, p. 1267). The importance of understanding about social enterprise is its mission and its essential objectives where social enterprises earnings help to sustain business ventures because their profit is reinvested, thus helping achieve the social mission.
Social Entrepreneurs
A social entrepreneur is an individual who uses businesses as a platform for solving social challenges such as empowering women and reducing poverty. The individual has an objective of making a social impact instead of making a profit, and he operates by providing services and goods in an innovative fashion (Bau, Bide and Ryu, 2018, p. 1267). An example of a social entrepreneur is Urvashi Sahni, a social entrepreneur in India. She is the CEO and core founder of SHEF, dedicated to free education for disadvantaged girls in India.
The Growth of Social Enterprises Examples
Growth of social-economic enterprises is a process in which States improves the social wellbeing, political and the economics of their people. Social-economic growth influences all human aspects in the country. It is developed to provide solutions to new environmental, social and economic issues, thus satisfying the needs that have been ignored. For example, in 2015, France had its social and solidarity economy sector accounting 223,000 businesses, 2.34 million employees and 10.3 percent of national employment.
Factors that Influence the Decision to Start a Business
Entrepreneurship is one of the driving forces that is strengthening different countries’ economies. However, small businesses start-up is affected by different factors: start-up capital, location, staff, capital and finance, knowledge, business idea, demand, competition, and technology (Furtado, Goncalves and Costa, 2019). These are the factors that make small businesses not operate for more than ten years in the market. Many individuals are motivated to start up a business and fail to consider the factors mentioned above.
How Background and Experience can Hinder or Foster Entrepreneurship
The factors mentioned above hinder entrepreneurship because entrepreneurs, to be successful, should consider product, money, and marketing. The financing pattern is the essential factor that an entrepreneur should consider when starting up a business. They are several reasons that can foster or hinder entrepreneurship. The decline or growth of entrepreneurship depends on creed, religion, caste, race and family background (Furtado, Costa and Goncalves, 2019, p. 127). An important aspect that mainly affects entrepreneurship is how persons grow up and experience the past. They include:
National culture; affects entrepreneurship is the nation fails to give supportive conditions for the entrepreneur to be engaged and celebrated.
Type of education; nation’s education system plays a vital role in permeating the values of entrepreneurs amidst other individuals (Furtado, Costa and Goncalves, 2019, p. 1278). This becomes easy for people who understand the significance and benefits of entrepreneurship.
Economic conditions; if the nation efficiently provides infrastructure, labor needed, accessible capital and raw material, it will be easy to nurture entrepreneurship who will start a new business venture.
Characteristic traits; people must possess specific characteristics and traits to become successful entrepreneurs (Furtado, Costa and Goncalves, 2019, p. 1278). Individuals can be motivated to have courage in facing difficult situations.
They are several risks and rewards in starting a new business venture. Starting a new business venture entrepreneur will have impacted change in society. They consider that entrepreneurs are flexible and work according to their preferences (Furtado, Costa and Goncalves, 2019, p. 1278). However, they face an insecure flow of funds, which is one of the main problems for the company to gain profits. An entrepreneur is required to have a strict and steady schedule to achieve his objective.
Conclusion
In conclusion, entrepreneurship plays an essential role in the growth of the global economy and nation. The national government must take measures regarding the promotion of entrepreneurs by funding them. In this report discussion, we came to understand different types of entrepreneurs and their funding, which motivates the entrepreneur to grow faster. There are many types of entrepreneurship that people can adopt. We have also seen the role played by small scale and micro-companies that has impacted a lot and understood the primary reason behind the success of entrepreneurship.
Reference List
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