Over the last decade, entrepreneurship has become an increasing trend with growing significance in the global market. In fact, millions of people or approx. 15 percent of the adults in 35 different nations are building a new business. There can be multiple reasons behind this concept. You might always wanted to be your own boss and chase your innovative ideas or hope to achieve better financial rewards by changing your outlook on how you can do a business. There are universally four main demographics found in the scope of entrepreneurship that have come up with a much faster pace in in recent times. These include women entrepreneurs, senior entrepreneurs, young entrepreneurs, and minority entrepreneurs.
Regardless of who is setting up new businesses and what is entrepreneurship all about, choosing free enterprise is the most emergent trend around the world. As economy continues to struggle making people get laid off, there is a bigger number of people who are realizing the rewards of becoming entrepreneur. This also has caused the desire of becoming a corporate employee with 9-to-5 working hours to lose its steam by the time.
So, what is entrepreneurship? The idea of free enterprise is multilayered. In fact, you will find assorted, diverse, and to some extent, conflicting sets of meanings of the term. Entrepreneurs are commonly said to be the players behind the monetary growth and innovation. They act as the movers and shakers who are known for creating new industries, removing existing bests from their places, and opening new frontlines for everyone around.
From Mark Zuckerberg, the honorable owner of Facebook to Google’s Sergey Brin to Elon Musk of Tesla, we see widespread culture diligently circulating one success story after another. There are many countries that develop comprehensive policies in the interest of entrepreneurship. There are also designated funds set aside for entrepreneurs to invest in startups through government-run business capital schemes. Even so, there are experts who say that all this captivation and belief in entrepreneurs is not properly justified, and entrepreneurs still need to find the ways how they can push the technological edge and bring the kind of revolution that administrations actually want.
What Is Entrepreneurship from Economic Viewpoint
It might be a bit of difficult to get an exact idea of what is entrepreneurship all about. Explaining its economic side, however, is somewhat easy with certain variables including risk bearing, resource mobilization, and innovation. Below is brief description of each factor.
- Innovation – Under this approach, entrepreneurs are those who perform new sets of productive resources. Their innovation is the main element which distinguishes them from those who are far away from entrepreneurship. Although starting a new business venture seems to be the most prevalent aspect of being an entrepreneur, there are other aspects too that one cannot overlook. Free enterprise also includes the beginning of changes in terms of consequent growth in the number of goods produced as well as in the current structure of organizational relations.
- Risk Taking – This is indeed an important factor that can perhaps better explain the idea of entrepreneurship on economic perspective. Mostly entrepreneurs are intended to take risk as they are ready to bear uncertainties in the market dynamics. They may not unescapably risk their own funds but risk other personal resources such as reputation and the likelihood of being more profitably working somewhere else.
- Resource Deployment – this point clarifies the way entrepreneurship reflects its awareness to apparent profit prospects in the economy. In other words, resource deployment entails how the insight and intellect of an entrepreneur is reflected through the allocation of available resources in search of gainful opportunities. Also, this helps entrepreneurs distinguish themselves from non-entrepreneurs, and boosts their ability to identify persistent challenges, synthesize the information and take meaningful actions based on it.
There are many people who seek to solve their curiosity for the basic question that reads “what is entrepreneurship”. Abovementioned are merely some conceptualized ideas about this term based on innovation, risk taking, and resource deployment. Besides these variables, free enterprise can be understood as a combination of personal characteristics, objectives, and motivations of the player in the game of entrepreneurship.
The Negative Side of Entrepreneurship
Several studies reveal that there is no universally positive relationship found between innovation and free enterprise. Although most leading economies of the world such as the United States believe in positivity between startup ideas and innovation, there are other developing countries that find it negative. These economies are most likely to observe innovations backed by the current businesses, not startups.
There are entrepreneurs who pursue a different kind of opportunities that are mainly based on imitation and broadcasting of others ideas, not on their own innovations. Typically, startups are not found as efficient as existing companies. And it is likely that government’s support for entrepreneurship can influence the economic effectiveness, limiting implementation opportunities for innovative ideas.
As patent applications measure, no one can deny the massively diverse impact of startup proportions on creativity and industrial development. It is, however, only possible with rich countries that can afford new changes or transformation with more entrepreneurships to be resulting in more revolution. For under-developing countries, on the other hand, the rise in startup proportions will result in less and limited groundbreaking activities. In short, the relationship between innovation and free enterprise vastly varies from country to country, and that is why success stories do not necessarily echo in all parts of the world.
Often, the idea of what is entrepreneurship is stretched by viewing the success stories of top entrepreneurs. For many people, free enterprise an easy way to make money but they do not see the hardship these successful people went through. Likewise, entrepreneurship is not that difficult as some people assume. It’s just like creating a tall building which requires your time and effort. It also needs you time to learn how to establish a business and putting efforts to achieve the desired success. In most cases, entrepreneurship is not difficult if you have a success plan to follow.