What is Entrepreneurship? When we think of entrepreneurship, businessmen and small-scale companies or businesses immediately come to mind. In reality, the definition of entrepreneurship varies depending on the perspective used. It may be a field in business or it may be an activity that people engage in. Describing the processes involved in it defines what entrepreneurship is. Understanding and looking for innovations, such as improving an existing product line, is one of the processes of entrepreneurship. But it is not simply about innovating, this process must be taken one step further to be considered as part of entrepreneurship.
The further step would be to transform innovation into economic goods, something that will generate income. In entrepreneurship, an individual or a group of individuals identifies a business opportunity by finding a prospective or valuable item, product, or activity that can be used for the business and generate sustainable profits. When the market value generated by the business opportunity or innovation is greater than the value of the combination of resources used to create the opportunity or innovation, then there is profit. Profit occurs when the value of the resources used to create a product increases through innovation.
The definition of entrepreneurship is based on a single but most important concept: discovery. Without discovery and innovation, there will be stagnation in the market economy as there will be no improvement. Entrepreneurship paves the way for economic growth as it supports economic growth through its discoveries and innovation. Through entrepreneurship, new and better things, processes and systems are created, recreated and discovered. There is no need to isolate the creation or discovery of new product lines or existing product lines. It can also be applied to methods of production, market, resources, or an organization or even an industry. Entrepreneurship can provide solutions for economic stability since it continually seeks the improvement and development of our resources to give them greater value.
Let’s take the following situations as an example of understanding what entrepreneurship is. Check the following situations:
ยท A housewife who knows how to cook delicious Indian cuisine starts selling them to the teachers and staff of the nearby school.
A downsized employee found another use for old vehicles, designs and repairs them, and made a play area for her pet daycare.
A scientist discovers a new element but does not attempt to identify practical uses for it.
All situations except the scientist show entrepreneurial spirit. Remember that undertaking is discovering or improving new lines of products, markets, processes, resources or organization. The housewife found a new market in her neighborhood, the nearby school, and took advantage of it to generate income. The downsized employee developed a new use for old vehicles. The situation with the scientist cannot be considered as entrepreneurship. There was no attempt to generate a market value for the new element as the scientist did not attempt to identify practical uses for it. If he created a product using the new element, that could be identified as entrepreneurship.