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B.Com 1st Year, Subject: ED – 1st Sem, Unit – 2 – Entrepreneurship:, Concept, Meaning, Definition, Characteristics, Importance of entrepreneurship, Challenges, Issues and barriers of entrepreneurship, Meaning of Entrepreneurship, The word entrepreneurship originates from the French word entrependre, which means “to undertake”, Entrepreneurship is the key to innovation, productivity and effective competition., When a person realizes his ability or capacity and makes its practical use and establishes new business unit this activity is known as entrepreneurship., Definition of Entrepreneurship:, Entrepreneurship can be defined as someone’s willingness to take higher risks and organize, manage and develop a business organization in a market that constantly evolves. Generally, the innovators, inventors, leaders and pioneers are the entrepreneurs. We can say that entrepreneurship is a process of an entrepreneur’s action in the search of something new such as thinking about gaining profitable opportunities by accepting the risk and take their enterprise to the higher level., Concept of Entrepreneurship :, Entrepreneurship is an innovative function. It is a leadership rather than an ownership. The process of innovation may be in the form of:, Introduction of a New Product, Opening of a New Market, Use of a New Method of production, The conquest of New Source of supplying Raw Materials, Characteristics of Entrepreneurship, Have a look at the main features of the entrepreneurship:, 1. Profit chances, The chances of profit are the level of return to the person who is taking risks and developing an idea into its business venture. The actions of the entrepreneurs will likely remain abstract and a paper leisure activity without the potential of the profit., 2. Creativity and Persuasiveness, There is a need to have the creative capacity for recognizing and pursuing the opportunities in a successful entrepreneurship. The entrepreneurs should possess great selling skills and be persistent., 3. Innovation, The entrepreneurship continuously demands a continuous search for innovative ideas. The entrepreneur should evaluate the present modes of business operations for developing more efficient and effective systems. In a simple definition, it is a continuous effort for optimization of performance in an organization., 4. Risk Bearing, As we defined above, the entrepreneurship is the willingness to take risks. The individuals should arise out of the implementation and creation of the creative ideas. They should believe that new ideas take some time to offer results and their results may not be instantaneous., 5. Vision, Probably, one of the biggest responsibilities of the entrepreneur is to decide the direction of the business. There is a need to have proper vision. If a company doesn’t have this, they will likely get lost in the sea., 6. Excellent Business Skills, A successful entrepreneur always has the ability to set up the internal procedures, systems, and processes required to operate a company. He/she should focus on sales, revenue, and cash flow all the times. They always evaluate the current talents and professional network., Importance of entrepreneurship, The main importance of entrepreneurship is the creation of job opportunities, innovation, and improve the economy., The man behind the entrepreneurship is an action-oriented and highly motivated individual who is ready to achieve goals., 9 importance of entrepreneurship are;, Growth of Entrepreneurship., Creation of job opportunities., Innovation., Impact on community development., The consequence of business failure., Political and economic integration of outsiders., Spawns entrepreneurship., Enhances the standard of living., Promotes research and development., Challenges faced by new entrepreneurs., Developing the Vision and Business., Raising Capital for Startup. ..., Assembling a Business Team. ..., Finding the Right Business Location. ..., Finding Good Employees. ..., Finding Good Customers. ..., Dealing with Competition. ..., Unforeseen Business Challenges and., Issues or problems of Entrepreneurship, The entrepreneur face numbers of problems in promotion of units and during production, marketing , distribution, raw material and availing the incentives offer by state Government., A - Infrastructural problem, Location, Power, Water, Post office, Communication, Non-availability or irregular supply of raw material, Transportation, B - Financial Problem, Capital, Working Capital, Long term funds, Taxation, Marketing, Raw Material, Technology, Governament policy, Barriers to Entrepreneurship, Environmental Barriers, Non – availability of raw materials, Lack of skilled labor, Lack of good machinery, Lack of infrastructures, Lack of fund, Other environmental barriers, Personal Barriers, Unwilling to invest money, Lack of confidence, Lack of motivation, Lack of patience, Inability to dream, Social Barriers, Law status, Custom and tradition of people