What are Entrepreneurship and what does it have to do with my business? Entrepreneurship is basically the extraction or creation of value from something existing already. With that definition alone, entrepreneurship is seen as innovation, usually involving great risk besides what is normally associated with starting a new venture, which can include other hidden values apart from economic ones. For one thing, there is risk in all business ventures. The chance that you might fail in your business venture is always there. Entrepreneurs do not see this as an obstacle but as a chance for them to maximize their profits.
For some people who consider themselves as real estate tycoons, the opportunities provided by entrepreneurship can be compared to getting an almost perfect deal on a piece of property. With that said, many entrepreneurs look at investing in business as an opportunity rather than as a burden. Just like a real estate tycoon who makes an investment to secure his financial security, many entrepreneurs look at investing in business as their only option. They seek financial security in return for the risks involved in entrepreneurship.
Although it is not really easy to define entrepreneurship, let us come up with a list of things that entrepreneurship involves: Creating something out of nothing, Seeing the potential in something that is already existing, Seeing the need and filling the needs of consumers, Risk taking, Research and developing new ideas. Now, we can summarize the major components of entrepreneurship. These are basically the core principles of entrepreneurship.
So, what about creative destruction? One way of looking at it is that it is one component of entrepreneurship that is related to risk taking. When an entrepreneur combines the elements of entrepreneurship and creative destruction, it makes him/her more prone to failure in business. In other words, creative destruction brings death and disaster to an entrepreneur’s new venture. It is the destruction of a new venture by forces that are beyond its control.
This part of entrepreneurship may sound grim, but it’s true. When new technology and innovative products are introduced, some or most of the original creators of those products will tend to fail in their businesses. Sometimes they failed because they were unable to think creatively and they failed to implement the proper processes and measures that would have ensured their success. In other cases, the innovators will be accused of ruining the industry and may be sued for stealing trade secrets.
As previously stated, the start-up costs involved in a venture can be costly. However, this should not stop entrepreneurs from trying to start a business because they would be doing the world a big favour if they can successfully launch a start-up business that is profitable after few years. Start-ups may not make a lot of money immediately but a successful venture will eventually generate a significant amount of income. If you can do the numbers, then you can easily calculate the chances of making a profit on your start-up venture. However, it must be noted that the longer a start-up lasts, the more difficult it is to make it profitable due to the high risk involved.
What is entrepreneurship is also linked to what is known as sustainable business. A sustainable business model means that the resources dedicated to the start-up operation are utilized to create a steady income that will not wane once the business has already been established. The majority of the start-ups that eventually become profitable are those that have incorporated a good entrepreneur definition into their business plans. They realize that they must carefully consider all the aspects of their operations in order to make a profit. By so doing, they have minimized their chances of encountering problems that could potentially derail their businesses.
What is entrepreneurship is a very important issue that requires careful attention from many entrepreneurs. It is a concept that takes into consideration many important factors. By doing so, it becomes easier for new opportunities to emerge. Additionally, by applying a correct entrepreneur definition to the new ventures being constructed, there is an increased chance of profitability. This makes entrepreneurs better prepared for all the potential opportunities that present themselves in the future.