Entrepreneurship Essay Example | Topics and Well Written Essays - 2250 words

Entrepreneurship - Essay Example But many economists have proved that the usefulness of the term is not just limited to â€Å"starting of one’s business† (Sobel, 2008), it is more than that. From then the meaning has become more prominent and understandable to everyone. Entrepreneurs are the individuals who start business and operate their business and are fully accountable for the profit or loss in their business. For example if a person who intends to be a successful entrepreneur has to possess few important qualities. Success in business is ascertained by the innovation and the types of actions that are taken in the course of the business. To be a successful entrepreneur a person has to think about innovation. Innovation is needed because the market is becoming competitive and there exist a number of competitors. In order to stay one step ahead of the competitors entrepreneurs have to be innovative and have to take the right business concepts to deal with the business (Sobel, 2008). Entrepreneurship - Definition Stevenson has defined â€Å"Entrepreneurship† as the search for new opportunities with the resource constraint. Whenever an entrepreneur recognizes that there is a small window of opportunities they grab it and try to exploit the opportunity as far as possible. According to Peter Drucker, entrepreneur is defined as someone who searches for change, adopt that change and exploit those changes as an opportunity (Grebel, 2001). After introducing a business an entrepreneur should show progress in order to attract more resources so as to bring the business to a stable condition from where he/she can think of making the best business. The opportunities that the entrepreneurs seek may entail: embracing an innovative product constructing a new business model which can bring in success to the business creation of a more improved version of the existing product Target new set of customers with the existing products (Eisenmann, 2013). Example of entrepreneurship The example of entrepreneurship can be given through the basic steps that are followed to start a new venture. They are as follows: Creating a business plan: This is a very critical part of the process where an overview of the business should be made along with the industry background. It also includes the type of product/services the business is looking forward to launch and the business model they are going to use. The main focus is on the market segment they are going to address their products to. The trend of the market is also analysed in order to get the whole picture of the market. This is basically done to make sure that whether the trend will make profit for the business or will hurt the business. The start-up cost is also estimated in the business plan so that they do not face financial uncertainties and face loss. Choosing the Business approach: This is the testing stage for the previous step. The step tests whether the customers will buy what they have planned to sell. The best way to do so is to communicate with the potential customers and see their reaction about the product. The reactions in this initial stage indicate whether the company will be successful or not. Raising the capital for the business: This stage is a very critical stage for the entrepreneurs as they have to face the problems of raising capital for the business. Investors are reluctant to invest in the venture at first without checking whether the business is viable or not. Choosing the legal structure: If the investment is made by the