Business Entrepreneurship and Entrepreneurs

The contribution of business entrepreneurship and entrepreneur in the economic development of all the countries is very significant. The active participation of the entrepreneur is the basis of the economic affluence and development of the developed countries of the modern world. They are contributing through using the natural resources as well as human resources of the country along with their creativity. In this chapter we shall be able to know the various aspects of Business of entrepreneurship, Importance of business entrepreneurship for the development of socio economic development, features of a successful entrepreneur and details of removing constraints of entrepreneurship development.

After completing this chapter, we shall be able to

·         Explain the concept, features and activities of entrepreneurship

·         Differentiate between entrepreneurship and business entrepreneurship Describe the features and activities of business entrepreneurship

·         Describe the development of positive environment for business entrepreneurship

·         Relate between business entrepreneurship and risk Identify the attributes of a successful entrepreneur.

Entrepreneurship and Business Entrepreneurship

In your school, the Victory Day is surely observed every year through arranging some kind of functions. One of you has proposed that this year a drama can be staged. He also proposed to extend all kinds of co-operation. Staging drama is an arduous and creative job. In this case, selection of drama, characters, place and time has been fixed after discussion. This is kind of entrepreneurship that some of you has come forward to staging the drama. In general world, any kind of work effort can be termed as entrepreneurship. So, entrepreneurship can be on anything.

One more example can be given- a kind hearted person has been interested to set up a school for creating educational opportunity for the boys and girls of your area. He established the school from his own savings and collecting funds from other people. This is the result of his strong determination and entrepreneurship. In this way, all kinds of work of public welfare like establishing school, college, hospital and club etc. are the results of some one’s entrepreneurship.

Any kind of business is the outcome of effort of an individual or a group. Business entrepreneurship is identifying the business concept, establishing the business and operating it successfully. In particular, Business entrepreneurship is setting up business with a view to earn profit knowing the inherited risk of loss and successfully operating the business.

Mr. John used to think to do something different from his boyhood. He attended his family business of clothing after completion of degree from a local college. But he could not be satisfied with the business. He used to visit the market by the highway near his house. One day he realized that very often the vehicles stops here for simple repairing. Realizing the necessity of repairing, John formed capital from his own saving and some borrowings and established a workshop. Since he did not have the expertise in this job, he undertook three month training from the local Youth Development Center. Initially the earning from the business was not mentionable. But, because of hard working, efficient service and honesty, reputation of his business spread around and income started to increase as well. Having profit from this business, he is now planning to set up a petrol pump at the adjacent area.

Mr. John has taken risk to fulfill his willingness and worked hard with strong determination. These work effort is his business entrepreneurship.

The person who knowing the uncertainties of results, establishes business with strong determination and courage and runs the business successfully, he is the Business entrepreneur or Industry Entrepreneur. Business entrepreneurship and business entrepreneur these two words are closely related to each other. Business entrepreneur is he who attempts business entrepreneurship. Henry Ford of American Ford Company, Konosuke Matsushita founder of Japanese electronic manufacturing company Matsushita were the world famous entrepreneur. Form the biographies of the entrepreneurs from countries of home and abroad, it reveals that most of them started business with smaller scale. With the help of strong mind set, hardworking, perseverance, and work effort gradually they became owner of large industries.

Difference between entrepreneurship and business entrepreneurship

Entrepreneurship can be for anything. But, business entrepreneurship is the investment of money and labor to earn profit knowing the presence of risk. For example, suppose you can make beautiful things from bamboo and cane. You tried to make a new kind of cane chair, this is your entrepreneurship. If you start a shop for making things of bamboo and cane and successfully run the business then it will be business entrepreneurship. The primary objective of business entrepreneurship is profit and other entrepreneurship is public welfare.

Characteristics of Business Entrepreneurship

From analyzing the concept of business entrepreneurship the following characteristics and attributes are identified:

This is the work effort to establish business. Business entrepreneurship helps to successfully run all kinds of activities related to establishing the business.

·         Doing business knowing the existence of risk with a view to earn profit.

·         The result of business entrepreneurship is a business organization. The meaning of this is that the concept of business entrepreneurship helps to execute the thoughts in to reality.

·         The outcome of business entrepreneurship is goods or service.

·         Running the business successfully

·         Generating employment for self. An entrepreneur can generate his own source of income.

·         Generate employment for others. Business entrepreneurship can generate employment for others along with the entrepreneur himself.

·         Making of new asset. Business entrepreneurship helps to develop human resources and formation of capital.

·         In general it helps to develop the overall economy of the country. Business entrepreneurship can contribute in other areas also besides income generation and solving unemployment problem of the country.

·         Taking social responsibility along with earning profit. Business entrepreneurship encourages the entrepreneur to participate in various development work of the society.

Qualities of a Business Entrepreneur

From the feature discussion of business entrepreneurship, some idea can be inferred about the qualities of an entrepreneur. Some believes that the entrepreneurs are entrepreneur by born. This means that form the birth they inherit some qualities which helps them to be famous as a successful entrepreneur. At present days entrepreneur can be groomed up through education, training and providing various opportunities. Main qualities of and entrepreneur is-

·         Confidence

·         Independent mentality

·         velocity

·         Organizing capacity

·         Courage

·         Perseverance

·         Sensibility

·         Attentiveness

·         Flexibility

·         Creativity

·         Inventing capacity

·         Ability to work hard

·         Ability to take risk

·         Ability to collect capital

·         Desire for success

·         Mentality of facing challenge

·         Mentality of taking lessons from

·         Failure

The entrepreneurs are capable to identify and utilize the prevailing economic opportunities in the country. They show their sign of efficiency in availing the facility from the government for industry development. They plan on the limited resources to achieve their desired goal and takes effective steps to execute those plans. They take decision having details analysis on something. They assess the constraints against execution of their plan and try to remove them beforehand. Capability of coping up with the change environment and having influence on other people is also termed as special quality of an entrepreneur. Taking calculative risk is another characteristic of a successful entrepreneur. Making adjustment with the changed environment and desired goal is also a major characteristic of entrepreneurs.

Business risk is the uncertainties of earning profit form business. A successful, entrepreneur assesses the reasons of possible risk and their extent and can take preparation to face them beforehand. A successful entrepreneur has the quality of leadership. A successful entrepreneur accumulates capital, arranges financing for the organization and ensures their proper utilization in the business. He shows the efficiency in coordinating the general resources with the human resources of the company. He owns in depth knowledge of management. They have the up to date knowledge about coordinating with the technologies of ages. They innovates different production process and successfully implements them. They open new arena for industrial revolution.

An entrepreneur enjoys dealing with challenging works. They provide untiring effort and sacrifice self-comfort and luxury for achieving their business goal. They are so confident and reliable on their own decision that they continuously works to achieve their desired goal and keeps working until achieving the result. If they fail, they start again after analyzing the reason of their failure. Strong desire for achieving goal is a mentionable feature of their character. Real entrepreneur agrees with their fault and take lessons from them. Learning from own experiences and experience of others, application of those learning in work place is another special quality of their character. Successful entrepreneurs get satisfaction and pleasure from their success.

Contribution of Business Entrepreneurship in Economic Development

Suppose X is a developing Country. As per X Economic Review -2010, 50% of our national income comes from service, 20% comes from agriculture and 30% comes from industry. Industrial sector plays a vital role for the development of any country. The development of all the sectors including industrial sector is possible through development of business entrepreneurship. Business entrepreneurship can contribute to our socio economic development in the following way:

Proper utilization of resources

Business entrepreneurship ensures the uses of natural resources and human resources of our country. Increase of investment and proper utilization of resources is possible through establishing new industry.

Increase of national Income and Production

The national income increases through business entrepreneurship. As a result achievement of government target for national income becomes possible.

New employment generation

Entrepreneurs establish industry, operate and expand it along with government. As a result new employment generation becomes possible.

Development of Efficient Human Resources

X is a populous country. This large population can become our asset. Because, a successful entrepreneur turns the inefficient people to efficient through engaging them into productive works.

Reduces Dependability on others

We can reduce dependability on others through business entrepreneurship. We can become economically self-sufficient with proper utilization of business entrepreneurship.

Favorable Environment for Developing Business Entrepreneurship

If we observe the developed countries, then we will see that the main reason for their advancement is the positive environment for establishing business, operation and expansion. In our country we do not have deficiency in brilliance, mentality and efficiency. Our advancement is hindered only for the lack of positive environment. The following positive environment is necessary for development of business entrepreneurship:

Developed Infrastructural Element

There are some necessary facilities for operating business such as electricity, gas, communication etc. These elements are necessary for existence of positive environment for business entrepreneurship.

Government Assistance

With the help of business entrepreneurship, the business of the country can grow more and be enriched. Various government decisions like tax rebate, supplying capital with or without interest, etc. can make a positive environment for business entrepreneurship.

Socio-Economic Stability

Economic, Social and Political stability has a positive impact over creating positive business environment. The instability works in the opposite creates a negative impact.

Supportive Law and Order Situation

Establishment and operation of business is easier, if the law and order situation of the country is positive. On the other hand negative law and order situation is a threat to business entrepreneurship development.

Arrangement of Sufficient Capital

To successfully implement any kind of business entrepreneurship, sufficient capital is necessary. In this regard, the banking system of the country to be developed so that supply of capital to the entrepreneurs is ensured.

Opportunity of Training

Sometimes correct steps cannot be taken though opportunity prevails only because of lack of training. Through training positive elements for business environment can be created.

Relationship between Entrepreneurship & Risk

Mrs. Ishta Akter, the owner of M/s. Ishta Fashion House at Rapa Plaza in Dhaka is a successful entrepreneur. She helps her family and buys all the necessities with the income fro this business. Mainly, she started this business as a hobby, but now she earns mentionable amount from the business. But, she realized that more profit can be earned from the business of mobile phone considering its demand. Her family warned her that this business will be risky since she has no knowledge of the business. But, without caring the family members, she took a bank loan. Besides, she took some money from her running business and decided for importing mobile phones from abroad.

Buying and selling in a shop

On the other hand her competitors imported mobiles at lower price. As a result she incurred huge loss. The main reason for her such failure that she started the business without considering the risk associated in it.

There is always a relation exist between business entrepreneurship and risk. In some business, there is less risk and in some cases risk are high. Business associated with high risks accompanies the profitability of higher return. And the business having less risk involvement has low return. For example, we can say that groceries have less risk thus profit is also limited. On the other hand like the above mentioned case studies if there is probability of high profit, there is also higher risk association.

There is various types risk in business. The price of manufactured product or provided service can decline any time. Profit can be reducing for that reason. This possibility is business risk. On the other hand it may happen that the businessman expected a certain profit from the business, but in reality he earned a less profit. This is called monetary risk.

Establishing a business and running it properly is risky job. Besides, with the help of business entrepreneurship earning more is also possible through investing in profitable venture. But one has to keep in mind that a successful entrepreneur always assess the associated risk beforehand and tries to reduce that and always take tolerable risk. Excessive risk and over confidence may turn any plan in to a disappointment.

End

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