Characteristics Of Entrepreneurship

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Characteristics of Entrepreneurship

The characteristics of entrepreneurship are discussed below:

(i)    Economic Activity:
Entrepreneurship involves the creation and operation of an enterprise. Therefore, it is essentially an economic activity concerned with of value or wealth.

(ii)    Creative Response to Environment: Entrepreneurship involves innovation or introduction of something new. It is a creative response to the environment. An entrepreneur recognizes the need for change and initiates it. He does things in new and better ways.

(iii)    Purposeful Activity:
Entrepreneurship is the purposeful activity of an individual or a group of individuals who seek to earn profits through the production and distribution of economic goods and services.

(iv)    Dynamic Process: Entrepreneurs thrive on the changing environment which brings new opportunities for business. Flexibility is the hallmark of a successful entrepreneur.

(v)    Risk Element:
Entrepreneurs make decisions in the face of uncertainty. Therefore, risk is an inherent and inseparable element of entrepreneurship. Until the new venture idea becomes popular element of entrepreneurship. Until the new venture idea becomes popular amongst the customer, it runs a family high degree of risk of incurring losses.

(vi)    Creator of Organization: An entrepreneur assembles and co-ordinates other factors of production, i.e., land, labour and capital Managerial skills and leadership are other very important facets of entrepreneurship.

(vii)    Gap Filling Function: It is the job of an entrepreneur to fill the gaps between needs and goods and services. He has to complete the inputs and provide the knowledge about the production process.

(viii)    Optimum use of Resources:
An entrepreneur optimizes the use of resources by arriving at the most productive combination that will provided the society the needed goods and services.

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