Entrepreneurship

 

Entrepreneurship concept is now popular in the world. This is the driving force of an economy. To compete the current world it is important. Now in Sri Lanka the government identified the importance of the entrepreneurship and entrepreneurs. There are so many motivational activities specially among the school children. Also competition are conducted.

 

Definitions of entrepreneurship

Examples :

·        An entrepreneur is someone who perceives an opportunity and creates an organization to pursue it. The entrepreneurial process includes all the functions and activities entrepreneurial and actions associated with perceiving opportunities and creating organizations to pursue them.                                                                                                                                                          William D Bugrave.

·        “An entrepreneur is the person who destroys the existing economic order by introducing new products and services, by creating new forms of organization, or by exploiting new raw materials”                                                                                                                                                   Joseph Schumpeter

·        “Entrepreneurship is the bridge between capital and labour”                             Oxford dictionary

·        “Entrepreneurship is facing up to uncertainties”                                   Richard Nantinut

 

 “Entrepreneurship is the process of extracting the environmental opportunities creatively and generating innovation while bearing risks.

Or

“Entrepreneurship is the process of producing innovations by managing risks and identifying business opportunities to satisfy human needs and wants”

 

Entrepreneurship is important for the following reasons.

·        To create innovations

·        To face rapidly changing world

·        To face competitiveness in world

·        to give leadership to the changing world

·        To uplift the living standards of people

·        To satisfy Human needs and wants

·        To face the challenges due to technological changes

·        Create employment opportunities

·        Gain Personal, social and economic benefits

 

The relationship between entrepreneurship and businesses

Ø  The process of producing innovations and managing risks to satisfy identified human needs and wants is known as entrepreneurship.

Ø  To satisfy human needs and wants, the production of goods and services, distribution and all the other related activities in it, can be explained widely as businesses.

·        Accordingly, the production of goods and services and all other related services in it are engaged by businesses as well as through entrepreneurship. But, identifying business opportunities, risk management and innovations are done by entrepreneurship when compared with businesses.

·        Accordingly it is clear that all enterprises are businesses whereas all businesses are not enterprises. Similarly, the end result of entrepreneurship is known as business.

 

Relationship between entrepreneurship and economic development

·        The national product will increase because of the innovations of entrepreneurship.

·        Contribution to economic development by generating new job opportunities

·        Expansion of market activities and formation of new competitive markets are reasons for the economic development and formation of new competitive markets for economic development

Increase in production           New employment opportunities        Increase in income level               increase in purchasing power                        increase in demand for goods

·        Starting new business is a reason for economic development

The benefits of entrepreneurship

Through entrepreneurship, individual, institutional, social and economic benefits can be gained.                         Examples:

Individual benefits

·        To make use of individual abilities.

·        Get higher benefits through higher commitments.

·        Creating social status and acceptance.

·        Having self-satisfaction.

·        Obtaining personal and financial gains.

Institutional benefits

·        Being easy to face competition

·        Expansion of business activities.

·        Continuous development.

·        Expansion of market shares

·        Becoming the expertise in the industry.

Social and economic benefits

·        Creation of new employment opportunities.

·        Creation of income opportunities.

·        Arising of opportunities to consume new goods and services.

·        Developing the standard of living.

·        Using regional resources for production

·        Development of new markets.

 

Trends in entrepreneurship

·        Social entrepreneurship

·        Global Entrepreneurship

·        Green Entrepreneurship

·        Intra Entrepreneurship

·        Woman entrepreneurship

Global Entrepreneurship

Engaging in trade globally is meant by this. In other words, no matter wherever in the world, with the use of technology, the ability to work beyond the borders through communication with any other country or countries or places in the world. Distribution of goods and services successfully from one place to all over the world to supply products for fulfilling identified consumer needs and wants of each country is harvesting the yield of entrepreneurship globally. It is important here to have known about other cultures. It is important for this to maintain good relationships with other countries and nations. Opportunities can be generated by identifying differences among nations and among cultures.

 

Social Entrepreneurship

This means to engage in innovations to solve social problems with the intention of social service. Benefits such as mental satisfaction, acceptance, praise, mutual help etc... are expected through social entrepreneurs. The aim of social entrepreneurship is to make the

world a better place.

 

Green Entrepreneurship

This refers to the activities done with awareness of an entrepreneurial view to positively

impact the natural environment with high risk for environmental and social problems or needs. Green entrepreneurs consider that protecting the environment is their core concept. They are very sensitive for environmental issues. They positively impact on natural

environment through their business activities.

 

Intra Entrepreneurship

Creative people who are in different posts in organisations make changes in products and

production methods. Top managers motivate those people to work creatively. This kind of

entrepreneurship that introduces changes in an organisation and implements them within

an institute is known as intra entrepreneurship.

Process of Entrepreneurship.

All the functions that are used to do the activities such as identifying business opportunities

and formulating an organisation to use them is known as entrepreneurial process.

Steps of entrepreneurial process

·        Discovery

 

·        Concept development and preparing business plan.

 

 

·        Resourcing

 

·        Actualization

 

 

·        Harvesting

Step 1 – Discovery

At the first step of the entrepreneurial process, an entrepreneur generates ideas, identifies

opportunities through environmental study and studies the market place as well.

Step 2 – Concept development and preparing business plan.

In this step a business plan is prepared. It presents a detailed program which clarifies the

business idea.

Step 3 – Resourcing

In this step, the entrepreneur identifies financial, human and physical resources that are needed to start the business and he tries to acquire them.

Step 4 – Actualization

In this step the entrepreneur carries out the operational activities and he uses resources to fulfill the aims of business.

Step 5 – Harvesting

This is the step in which the entrepreneur takes decisions regarding the future growth and

development of the business.

 

Steps of entrepreneurial process (alternative)

·        Identifying opportunities

·        Preparing business plan

·        Defining the required resources

·        Continuing the business