Entrepreneurship is the process of giving birth to a new enterprise –
Generally, entrepreneurship refers to the functions performed by an entrepreneur in establishing an enterprise. The person who set-up his business is called an entrepreneur. The output of the process, that is, the business unit is called an enterprise. Let us also consider the following definitions:
R.M. Hodgetts said, “Entrepreneurship is the process of organizing, managing, and assuring the risk of a business”.
According to Hisrich and his associates – “Entrepreneurship is the process of creating something new and assuming the risks and rewards”.
The term ‘entrepreneur’ was first introduced in economics by the early 18th-century French economist Richard Cantillon.
Entrepreneurs and entrepreneurship play a significant role in the socio-economic development of the nation. Entrepreneurs set up enterprises and generate employment for people in their enterprises. This helps in reducing unemployment, which is, the main causes of all socio-economic problems as well as results in socio-economic problems as well as results in increasing the total income of a country. Moreover, goods and services, produced by entrepreneurs after meeting the domestic demand are exported to foreign countries to earn foreign exchange. We are conscious that entrepreneurship is regarded as one of the four major factors of production, the other three being land, labor, and capital. The most understandable example of entrepreneurship is the starting of innovative businesses.
The significance of entrepreneurship is explained in the following points –
- Facilitates the transfer of technology.
- Improve the standard of living.
- Facilitate the balanced of economic development.
Entrepreneurship is the pursuit of the market opportunity to produce innovative goods and services. Once the enterprise gets established the entrepreneurial process becomes effectively recurring progress of opportunities. It becomes the process of allocating scarce resources judiciously to pursue value-adding opportunities.
Finally, we can say that Entrepreneurship is the process of giving birth to a new enterprise.