Entrepreneurship: Meaning, Definition, Function and Importance of Entrepreneurship

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Meaning of Entrepreneurship

  • Entrepreneur is a person who tries to do something new, visualises a business opportunity, organises the necessary resources for setting up the business and bears the risk involved.

  • Entrepreneur may be termed as an innovator, an organiser and a risk bearer.

  • An innovator,

    • The entrepreneur introduces new products in the market.

    • Finds out new markets for existing products.

    • Introduces new production technology.

    • Launches new marketing strategy

  • He bears the risk and uncertainties associated with the business activities

  • Entrepreneurships can be described as a creative and innovative response to the environment and the process of giving birth to a new enterprise

  • Response can take place in any field of

    • Social endeavour

    • Business

    • Agriculture

    • Education

    • Social work


“Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk taking, and through the communicative and management skills to mobilize human, financial, and material resources necessary to bring a project to fruition.”

Function of Entrepreneurship

  • Identifying and using the opportunities exist in the market

  • Converting the ideas into action

  • Undertaking promotional activities to launch an enterprise

  • Striving for excellence in his/her field of work

  • Bearing the risk and uncertainties involved

  • Harmonising

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Importance of Entrepreneurship

  • Entrepreneurship is essential for economic development

  • Helps the formation of capital by bringing together the savings and investments of people

  • Provides large-scale employment opportunities and increases the purchasing power of the people

  • Promotes balanced regional development in the country

  • Helps in reducing concentration of economic power (power to own the factor of production in a few hands).

  • People have now begun to realise the crucial role the entrepreneurs have to play for achieving the goal of economic development.

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