Entrepreneurship is the process of developing, organizing, and running a new business to generate profit by solving consumer problems, while taking on financial risk.
Entrepreneurship is now a popular college major, with a focus on studying ideation, new venture creation, and profit driven models.
Pros
- Work flexibility
- Freedom
- Unlimited earning potential
- Total control
- Able to make decision quickly
- Creative
- Able to follow passions
Cons
- Financial risk
- Time demanding
- Personal Stress
- Greater responsbility
- High competition
- Unreliable income
- Long working hours
What is an Entrepreneur?
An entrepreneur is someone who has an idea and who works to create a product or service that people will buy, by building an organization to support those sales. An entrepreneur takes on most of the risk and initiative for their new business and is often seen as a visionary or innovator.
Entrepreneurship can be found in small business owners, content creators, startup founders, or anyone who has the ambition to build a business and work for themselves.
Common traits for entrepreneurs
- Enjoy freedom and flexibility
- Are inventive
- Are goal orientated and ambitious
- Think creatively
- Are fearless
- Problem solvers
- High self initiative
- Understand basic finance principles
7 types of entrepreneurs
What is the entrepreneurial mindset?
The entrepreneurial mindset is the attitude someone has to building a business. It means having an open mind, questioning everything, and being resilient.
Common Entrepreneurship Requirements
Beginning a start-up generally requires:
- A business concept or idea involving a product, service, process, or new technology
- People to support the work, whether as employees, vendors, or advisors
- A process by which the product or service will be delivered, or the technology will be developed
- Enough funding to support the development of the idea to the point that it generates revenue
- A peer reviewed business plan
Why New Businesses are Started
According to research by Cox Business, the main reasons people engage in entrepreneurship and go out on their own, rather than staying employed, are:
- Control: to be their own boss
- Ambition: to start something from scratch themselves
- Financial: opportunity to earn more money
In fact, an Intelligent Office study reported that 65% of employees would rather be entrepreneurs than work for someone else.
Decide What Kind of Business to Start
Finding a need or opportunity in the market and filling it is at the core of entrepreneurship and small business success. That doesn’t mean that starting a business similar to one already in existence can’t be successful, however.
In considering what kind of business to start, assess:
- Your interests and passions
- Your background and experiences
- Your financial resources
- Unmet market needs
- Problems you can solve
- Your network and connections
With an estimated 50% of new businesses failing in the first five years, entrepreneurs will also need to be committed, persistent, and adaptable to beat the odds.
