“The introduction of entrepreneurship is the first decision that an entrepreneur takes to build a company.”
A wise man once said, “If you want to run fast, first pick up a heavy object.” The same could be said for entrepreneurship. To start an entrepreneurial venture, one must be smart. However, few people would know what they need in order to do so. What is an entrepreneur? What factors define an entrepreneur? How do they differ from other entrepreneurs?What are the components of entrepreneurship?
But first, let us discuss why someone would want to start an entrepreneurial venture. Why would a person become an entrepreneur? There are two main reasons: 1) because he wants to make money, or 2) he wants to help people. Let’s be frank: many people want to make money. Though they may not realize it, ambition motivates them to become entrepreneurs.
While the desire for financial gain is one of the most common startup ambitions it’s not by far the only one. Many people with a company already in operation yearn to start another one. They feel they can make more money, improve their quality of life, or even save the world by running a company that they started themselves. So what is the idea of an entrepreneur? What goes into it and why would anyone become one?
As mentioned before, many people have an urge to start their own business to get rich or help people. But let’s be honest for a minute and admit that there is another reason why people enter into entrepreneurship: because of greed or ambition. Let us suppose that you want to get rich by running a business.
You want to be wealthy, and you dream of having enough money to live a comfortable life without ever having to work another day in your life. If this is your ambition, then entrepreneurship can be your path to the ultimate gold mine. But if you really want the money and glory for yourself then it’s time for you to become an entrepreneur. To run a successful business you must have passion for it, and above all else an insatiable desire for wealth or glory.
Components of Entrepreneurship
The idea of entrepreneurship is a very controversial subject. Every student knows what an entrepreneur is, but not every student knows what makes a person an entrepreneur.At first glance it seems like the question, “What is an entrepreneur?” doesn’t have many answers. But when you look closely at your definition of an entrepreneur it becomes clear that you actually know many things about them; you just didn’t realize it before.
Entrepreneurs are people who start new businesses, or run existing ones and make money for themselves and their investors, or their companies’ owners (which in the case of most large corporations can be thousands to millions of people). They are people who have a passion for the world of business, people who want to make things work or create and they have the drive and determination to achieve their goals. That’s all there really is to it. No one thinks of themselves as an entrepreneur, because they don’t know what it means.
Any time you think about starting a business or creating something new, you’re thinking like an entrepreneur: you’re thinking about what will sell, what will be profitable, who will be your customers, how you’ll get them to buy your product or service and so forth. This is the entrepreneurial spirit. The term Entrepreneurship has been defined as: “The process of creating a business, developing it, and running it for the purpose of making money”. This is about as clear as a definition gets.
What is the Difference Between an Entrepreneur and an Other Business Owners?
The main difference between an Entrepreneur and a regular business owner is that the latter does not make any money from his or her business. He/she may make significant profit from his/her investment OR from his/her revenue, but profits generated by the revenue are being used for other purposes. On the other hand, an entrepreneur makes money from his or her business. He/she may lose money in his/her business but he/she can make a profit by earning an ROI and making profit margin. A regular business owner’s profit is generally used to pay off their debt and their investments while entrepreneurs can use it to run their business and make profits.
How Do We Recognize a New Entrepreneur?
To answer this question you need to understand that there are no true signs of someone who has started a new business. However there are different behaviors that describe the real “signs” of someone who is going into entrepreneurship for the first time.