FACTORS OF PRODUCTION ENTREPRENEURSHIP EXAMPLES VERIFICATION
Verification is concerned about practicality to implement an idea and explore its usefulness to the society and the entrepreneur. This is the last thing to verify the idea as realistic and useful for application. Most creative ideas can be linked to an individual’s interest or curiosity about a specific problem or area of study. This is like seeding process, not like planting seed. To generate an idea, the entrepreneurial process has to pass through three stages: In this article, we shall restrict ourselves to only these two aspects of entrepreneurial process.įigure 4.1: The Entrepreneurial Process 1.
Entrepreneurial job is restricted to two steps, i.e., generation of an idea and preparation of feasibility report. To establish and run an enterprise it is divided into three parts – the entrepreneurial job, the promotion, and the operation. All the successful entrepreneurs like Bill Gates (Microsoft), Warren Buffet (Hathaway), Gordon Moore (Intel) Steve Jobs (Apple Computers), Jack Welch (GE) GD Birla, Jamshedji Tata and others all went through this process. Entrepreneurial Process:Įntrepreneurship is a process, a journey, not the destination a means, not an end.
If an entrepreneur does not have the willingness to assume risk, entrepreneurship would never succeed. In the intervening period (time gap between the conception and implementation of an idea and its results), an entrepreneur has to assume risk. New ideas are always tentative and their results may not be instantaneous and positive.Īn entrepreneur has to have patience to see his efforts bear fruit. The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation and implementation of new ideas. “Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.” Without profit potential, the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity. In other words, entrepreneurship is a continuous effort for synergy (optimization of performance) in organizations. Entrepreneurship compels an individual to continuously evaluate the existing modes of business operations so that more efficient and effective systems can be evolved and adopted. Related to innovation:Įntrepreneurship involves a continuous search for new ideas. Since this value creation activity is performed continuously in the midst of uncertain business environment, therefore, entrepreneurship is regarded as a dynamic force. Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilisation of scarce resources.
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