What is Entrepreneurship by Rashi Pandey

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New consumer items, new manufacturing and transportation methods, and new markets provide the essential energy that keeps the capital engine turning... [The process] is always revolutionizing from within, killing the old and constantly creating the new. Capitalism is defined by this process of Creative Destruction.?

Photo by Chalo Garcia on Unsplash

The American identity revolves around entrepreneurship. The American experiment is a massive business effort, rooted in the frontier spirit of independence, adventure, and self-reliance, as well as a devotion to democratic values of fairness and cooperation. Entrepreneurs, both past and present, are prominent in our popular culture, and the opportunity to strike out on one's own is woven into the social fabric of our country.

Entrepreneurship appears to be ubiquitous, but what exactly is it?

Entrepreneurship is a difficult idea to define. Despite extensive interest in the topic and universal acknowledgement of its economic relevance, there is still a lack of agreement on how to define entrepreneurship specifically. The term ?entrepreneur' is derived from the French word 'entreprendre' (to undertake), and it has a wide range of meanings and applications.

Modern conceptions of entrepreneurship reflect this ambiguity. Some individuals describe it as small business owners or self-employed people, while others limit it to businesses that employ people. Others still adhere to the ?Schumpeterian? dynamic approach, which emphasizes the production of something new or improved in order to capitalize on a commercial opportunity ? particularly significant product or process innovations, as well as the growth-oriented firms built around them.

Similarly, economics (incentives, markets), management (opportunity, process), sociology (influence, norms), psychology (motivation, biases), anthropology (history, culture), geography (co-location, regionalism), and law all play a role in the study of entrepreneurship (contracts, firm structure). The study of entrepreneurship encompasses both processes and states of being, enterprises and persons, internal organization and external environment, market motivations and extra-rational conduct, and temporal or lifecycle characteristics, as evidenced by this breadth of disciplines. To put it another way, entrepreneurship is a multifaceted phenomenon.

In terms of scope and domain, our recommended definition of entrepreneurship and associated ideas includes the following elements:

Individuals or a group of individuals (entrepreneurs) exploit a business opportunity by bringing a new product or process to market, or by significantly upgrading an existing good, service, or method of production. This process is usually carried out by a new firm (a start-up), but it can also happen in an existing small business that makes a significant change in product or strategy (see below on growth).
An entrepreneur is a person who arranges the means of production in order to engage in entrepreneurship, which is typically fraught with danger and uncertainty.
Entrepreneurs may form joint ventures with other entrepreneurs (co-founders) or collaborate with an established organization (e.g., corporate or university spin-outs).
A start-up company is a commercial entity founded by an entrepreneur or a group of entrepreneurs for the purpose of coordinating the entrepreneurship process under a common ownership structure.
Growth is a defining trait of start-ups, whether as a stated corporate goal or as a result of their success. What distinguishes entrepreneurial endeavors from small businesses, and entrepreneurs from small business owners, is a desire or ability to grow ? for entrepreneurs, growth is the primary goal, not becoming their own boss or other non-monetary criteria.
A second fundamental characteristic of start-ups is that they are transient ? the stage of "starting up" is one of several in a company's lifecycle (e.g., sustained existence, acquisition or public offering, decline, or closure) and so must come to an end. The process of forming and developing growth-oriented companies in their early, formative years is the focus of entrepreneurship, entrepreneurs, and start-ups research and policy priorities.

To summarize, entrepreneurship is the process of establishing and growing a business with the goal of providing something new or improved to the market, or by better managing the means of production. This process is primarily organized through the formation of a start-up firm, is handled by entrepreneurs, frequently at great personal and financial risk, and lasts only a short time as a phase in the lifetime of a business. A crucial difference between start-ups and other small or early enterprises is the desire (realized or unrealized) to expand significantly. Companies either develop out of the start-up phase and become viable businesses, get purchased or sold to public investors, or decay and eventually shut down as new businesses emerge to take their place.