Business Studies Ch-20 Entrepreneurship: Meaning, Objectives and Importance of Being an Entrepreneur (For CBSE, ICSE, IAS, NET, NRA 2022)

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The assumption of risk and responsibility in designing and implementing a business strategy or starting a business is called entrepreneurship. A teacher teaches in a school, a worker works in a factory, a doctor practice in a government hospital, a clerk serves in a bank, a manager works in a business concern to earn his living. On the other hand, a shopkeeper, a factory owner, a businessman, a doctor having his own clinic, earn money by running their own concerns. These are the examples of people who are self-employed. However, there are several self-employed individuals who not only create jobs for themselves but also generate jobs for many others. They may be termed as ′ entrepreneurs.

Meaning of Entrepreneurship

  • Entrepreneurship is the act of being an entrepreneur, which can be defined as “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods” . This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new business. The capacity and willingness to undertake conception, organization, and management of a productive venture with all possible risks and seeking profit as a reward.
  • An entrepreneur is a creative thinker. He is an innovator, who volunteers to take risk and invest money. In the process he generates jobs, solves problems, adds values and seeks excellence.
  • Thus, we find that, entrepreneurship consists of practices and skills of a person constantly trying for growth and excellence. This is being done by innovating an idea, object, product or service and put it to social use. To be an entrepreneur you need to possess some qualities. However, entrepreneurship is also referred to as a career oriented purposeful task that can be learnt. It may be noted here that, in the context of country՚s economic development, entrepreneurship is not always confined to big business. It is equally important to have small enterprises. As a matter of fact, the economic growth and prosperity of many developed and developing countries are because of emergence of small enterprises.


After studying this lesson, you will be able to:


Importance of Being an Entrepreneur

The role of entrepreneurship and an entrepreneurial culture in economic and social development has often been underestimated. Over the years, however, it has become increasingly apparent that entrepreneurship does indeed contribute to the economic development. Transforming ideas into economic opportunities is the crux of entrepreneurship. History shows that economic progress has been significantly advanced by pragmatic people who are entrepreneurial and innovative, able to exploit opportunities and willing to take risks. Entrepreneurs produce solutions that fly in the face of established knowledge, and they always challenge the status quo. They are risk-takers who pursue opportunities that others may fail to recognize or may even view as problems or threats.

Importance of Being an Entrepreneur

Provides Employment to the People

People often hold a view that all those who do not get employed anywhere jump into entrepreneurship, but in reality, now a days most of the business are set by those who have other options available with them.

Contributes Towards Research and Development System

Almost 2/ 3rd of all innovations are due to the entrepreneurs. Without the boom of inventions, the world would have been a much dry place to live in. Inventions provide an easier way of getting things done through better and standardized technology.

Creates Wealth for the Nation and for the Individuals as Well

All individuals who search business opportunities usually create wealth by entering into entrepreneurship. The wealth created by them plays a significant role in the development of the nation. The entrepreneurs contribute to the economy, in the form of products, and services their ideas, thoughts, and inventions are also of a great help to the nation.

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