21st century: During the present century two characteristics are associated with the entrepreneur they are innovation and creativity. Creativity is the ability to bring something new into existence. While innovators are practical people and create from the opportunities available in reality.
Following principles of innovation have emerged leading to the success of entrepreneurs:
- Action-oriented and searching for new ideas
- Making the product service simple and understandable
- Trying, testing, and revising
- Learning from failures
- Hard work is the key to success
Revolution of entrepreneurship
Digital entrepreneurship is a term that describes how entrepreneurship will change, as business and society continue to be transformed by digital technology. Digital entrepreneurship highlights changes in entrepreneurial practice, theory, and education. Top Ranked MBA college in Bangalore
Digital entrepreneurship includes everything that is new and different about entrepreneurship in a digital world, including:
- New ways of finding customers for entrepreneurial ventures.
- New ways of designing and offering products, and services.
- New ways of generating revenue, and reducing costs.
- New opportunities to collaborate with platforms and partners.
- New sources of opportunity, risk, and competitive advantage.
Social entrepreneurship: Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs, in which they develop, fund, and implement solutions to social, cultural, or environmental issues. This concept may be applied to a wide range of organizations, which vary in size, aims, and beliefs
A social entrepreneur is interested in starting a business for greater social good and not just the pursuit of profits.
Social entrepreneurs may seek to produce environmentally-friendly products, serve an underserved community, or focus on philanthropic activities. Best MBA college in Bangalore
Social entrepreneurship is a growing trend alongside socially responsible (SRI) and ESG investing.
Entrepreneurs create social value by coming up with businesses that help underprivileged people through employment opportunities, by investing money in promotion and advertising campaigns for building awareness about Spur social development: entrepreneurs are trying to contribute towards societal development by addressing issues in the economy such as education, poverty, gender equality, etc. ( IBM ) ( LGBT )
Transformation ( Tata, ITC , Infosys )
Entrepreneurship school of thoughts
Economic Theory of Entrepreneurship
According to this theory, an entrepreneur executes all activities due to economic incentives. The supporters of this theory, the profit motive is the prime driving force that changes an individual into an entrepreneur. As such an entrepreneur emerges due to incentives and economic profit.
The inner drive of a man is associated with economic gains, which drive him into economic activities. Therefore, they regard economic gains as a pre-condition for the supply of entrepreneurs
Thus, the desire of increasing actual income and economic gains exist in any type of society. This tendency creates the spirit of economic development. They believe that the economic incentive is the basic condition of entrepreneurship.
It means that an entrepreneur finds those situations in which he can earn profit by producing goods at low cost or purchasing goods at fewer prices and selling those goods at higher prices in the market, he will take all possible steps and tend to act. No doubt, he is a seeker of profitable opportunities.
Overall this theory emphasizes economic gains and economic incentives which emerge for the entrepreneurial class in society.
Entrepreneurship as a behavioral phenomenon
- There is no definition of entrepreneurship.
- Entrepreneurship depends on the opportunities available in the environment.
- Availability of capital resources.
- Reward philosophy
- Opportunity to generate profit
- Scope for optimization of resources.
- Platform to innovate and acceptance of the same.
MYTHS ABOUT ENTREPRENEURSHIP
- Entrepreneurs Are High-Risk Takers: like all prudent businesspeople, entrepreneurs know that taking high risks is a gamble. Entrepreneurs are neither high nor low-risk takers. They prefer situations in which they can influence the outcome, and they like challenges if they believe the odds are in their favor.
- Entrepreneurs are born: experts generally agree that most entrepreneurs were not born; they learned to become entrepreneurs. The recent proliferation of college and university courses on the subject supports this point. Entrepreneurship is currently being successfully taught.
- Entrepreneurs are mainly motivated to get rich: New businesses usually take from one to three years to turn a profit. In the meantime, you’re considered to be doing well if you break even. During the business start-up stage, entrepreneurs do not buy anything they do not need, such as fancy cars. Most drive junk cars and use their surplus money to pay off debt or reinvest it in the business. Their focus is on creating a company with a strong financial base for future expansion.
Realities of entrepreneurship
- Not everybody gets startup capital: Many people assume that entrepreneurs are born that way — and that only people who have certain natural talents can be entrepreneurs. However, the truth is that almost anyone can become an entrepreneur if they can learn the necessary skills.
- Entrepreneurs only make some of their own rules: Part of the allure of entrepreneurship is getting to be your own boss and call your own shots. In some ways, this is true. You’ll get to set your own schedule and come up with your own office rules. But in other ways, the modern entrepreneur is a slave to circumstance, mentors, investors, and customers.
- It takes to a good idea to start but a lot more to succeed: Even the very best ideas — ones with the potential to disrupt an entire industry — need proper execution to become reality. Ideas are important, but so are planning, talent, leadership, communication, and a host of other factors.
Conclusion:- The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. Entrepreneurship combined with land, labor, natural resources, and capital can produce a profit. The entrepreneurial spirit is characterized by innovation and risk-taking and is an essential part of a nation's ability to succeed in an ever-changing and increasingly competitive global marketplace.
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