Characteristics of an Entrepreneurship
An Entrepreneurship is the pursuit of opportunity beyond resources controlled - Prof. Howard Stevenson
It is important to understand that an Entrepreneurship is a Process. So when you talk about the Characteristics of an Entrepreneurship, you must talk about the characteristics of that process and not about the Characteristics of the Entrepreneur who is carrying out that process. So please don't mix-up characteristics of Entrepreneurship with Characteristics of an Entrepreneur. Let us discuss some Characteristics of Entrepreneurship.
10 Characteristics of an Entrepreneurship:
1) Systematic Process: An Entrepreneurship is a Systematic process of creation, management and controlling of a venture. It is not a random activity. It is a process of step-by-step pursuit of an opportunity purposely. Entrepreneurs aren't born. Anyone can develop Knowledge, Skills, Expertise, temperament, Entrepreneurship mindset required to follow the systematic process of Entrepreneurship. It is certainly not a God-Gift.
2) Lawful Pursuit: Entrepreneurship is about creating a legal entity. There are some legal compliances which one has to follow while pursuing the opportunity purposely. Just because it involves risk, one shouldn't think that illegal ways are accepted in Entrepreneurship.
3) Value Creation: The purpose of Entrepreneurship is a creation of Value. It can be personal, Social, Political or even cultural value.
4) Creation of Venture: If someone inherits a business from his Father, he/she can't be called Entrepreneur. The most important characteristics of Entrepreneurship is this process helps 'Creation of an Organization, a Venture'. Such ventures start with some ideas and produce something of value, create a new market and new customers etc.
5) Economic Process: An entrepreneurship is an economic process. Whether one runs a Business or Non-Profit Organization it involves monetary transactions. Profit maximization of stakeholders is the main goal of a For-profit organization.
6) Dynamic force: Entrepreneurship is a dynamic process. A venture is carried out in Socio-political, Economical, technological environments which keeps changing time to time. Entrepreneurship evolves in such a dynamic environment, therefore it is a dynamic force.
7) Risk-bearing/ Risk Assumption: Entrepreneurship involves different kinds of risks wiz. Financial Risk, Technological Risk, Career Risk, Social Risk, Psychic Risk etc. Risk of failure is always high when one starts a venture. The essence of entrepreneurship is the 'willingness to assume risk' arising during a pursuit of the opportunity beyond resources controlled. Ideally, the risk needs to be moderate and calculated.
8) Innovation-oriented: An Entrepreneurship involves a continues search of new ideas. Innovation is the cost-saving and revenue-enhancing for the organization. Entrepreneurship involves creative thinking. Innovation can be about new products, services, markets, ways of distribution etc. To remain competitive and relevant with time Entrepreneurship always needs to be innovation-oriented.
9) Rewards oriented: Entrepreneurship process involves reaping of rewards. A for-profit business starts a new business only in the hope of earning good profits. He will invest his energy, Efforts, Money only when he will see profit potential in the business model. While Non-Profit organizes has different rewards in mind like Satisfaction of Social work they do, Recognition of their Brand in Society, Self-development, Reputation and Independence of work. Without rewards, entrepreneurship is just a theoretical leisure activity.
10) Challenging yet Empowering Process: Entrepreneurship is an empowering process. It boosts the economy of a nation due to its very nature of the creation of ventures which in turn creates products and services, innovates new technologies and sometimes even fields. A man who pursues an opportunity with inadequate resources in hands gets empowered during the process of the growth of the organization. Entrepreneurship is a challenging process but at the same time, it is empowering too which brings a lot of sense of independence.
- Deepak Doddamani
Founder, Ashwamedh Foundation, Founder and CEO Stocksbaazigar
(MMS, B.Tech, NET in Management, NCIAP, NCMP Level - 4)