Introduction to Entrepreneurship

Introduction to Earning a Living

• People engage in activities to earn a livelihood for their families.
• Entrepreneurship is setting up a business, taking risks for profit, which is a way to earn a living outside of wages or salary

Defining Entrepreneurship

• Entrepreneurship involves setting up a business and taking financial risks for profit.
• It is undertaking innovations, finance, and business acumen to transform innovations into economic goods.
• This includes creating a new business opportunity, conception, organization, and management of productive activity.
• It also involves risk-taking, seeking profit as compensation

Qualities of an Entrepreneur

• Disciplined entrepreneurs focus on their business, strategize, and work daily towards their goals.
• Confident entrepreneurs believe in their success.
• Open-minded entrepreneurs see business opportunities everywhere.
• Self-starters initiate tasks without waiting for permission.
• Competitive entrepreneurs aim to outperform others and highlight their company's success.
• Creative entrepreneurs connect unrelated events and repurpose items.
• Determined entrepreneurs view defeats as opportunities and persevere.
• Entrepreneurs with strong people skills can sell products and motivate employees.
• Entrepreneurs with a strong work ethic consistently work hard.
• Passionate entrepreneurs genuinely love their work and research ways to improve their business.

Importance of Entrepreneurship

• Entrepreneurship contributes to economic and social development, transforming ideas into economic opportunities.
• Economic progress is advanced by pragmatic and innovative people who exploit opportunities and take risks.
• Entrepreneurship is associated with change, creativity, knowledge, innovation, and flexibility.

Benefits of Entrepreneurship

• Provides employment and helps people who may not find regular employment
• Contributes to research and development, with entrepreneurs responsible for 2/3 of all innovations, leading to better technology
• Creates wealth for both the nation and individuals, contributing to economic development through products and services

Functions of an Entrepreneur

• An entrepreneur must perceive opportunities, plan, organize resources, and oversee production and marketing.
• They must also innovate and bear risk.

Categories of Entrepreneurial Functions

• Risk-bearing functions are a key aspect as future demands are always uncertain.
• Administrative and decision-making functions which involve study of the market for opportunities
• Distributive functions are critical for fair allocation of funds to production factors.

Risk Bearing Function

• This is a vital part of entrepreneurship.
• Every business has risk, which relies on trends and consumer taste.
• Entrepreneurs take risks and if wrong, they bear the loss
• The surplus from sales after paying is the profit

Administrative and Decision-Making Functions

• Conceiving the business idea involves suiting nature, skill, and resources to it.
• Requires in-depth study of markets and business prospects.
• Entrepreneurs estimate business details of business and implements effectively.
• They look at all aspects of production of goods and services
• The entrepreneur supervises and controls activities to meet goals
• Requires coordination of production factors
• Entrepreneurs must have vision and control of business affairs.
• Innovation involves new products, cost reduction, design, markets, and industry organization.
• Innovation converts materials into resources or combines resources productively.

Distributive Functions

• Entrepreneurs organize production factors and allocate funds.
• Remuneration decisions must fairly compensate each factor of production.
• Satisfied factors of production benefit the entrepreneur.

Job Opportunities in Entrepreneurship

• Entrepreneurship focuses on implementing modern techniques in a business environment.
• It includes running organizations efficiently, managing employees, and developing new products.
• Many businesses begin as entrepreneurial activities, capitalizing on new ideas.

Education for Entrepreneurship

• Colleges offer degrees in entrepreneurship.
• Specializations include industrial management, new ventures, finance, and international business.
• Core curriculum includes microeconomics and entrepreneurship theory.

Careers in Entrepreneurship

• It offers unique opportunities with individual career challenges
• Graduates can find work in banking, franchising, research, or consulting.
• Many entrepreneurs are self-employed and opportunities are growing in IT and engineering.

Time to Start Entrepreneurship

• Time varies based on the sector.
• There is a vast range of choices
• No single timeframe for an entrepreneurship career can be set

Requirements for Entrepreneurship

• Need the right idea with proper training
• Need to create a business plan and target market
• Need to network and promote the idea

Earnings in Entrepreurship

• Salary varies based on venture and market success
• Unique and useful ideas could lead to high earnings.

Overview of entrepreneurship as a way to earn a living. Includes the definition, key aspects like risk-taking and innovation, and essential qualities of successful entrepreneurs such as discipline and confidence.