Elements of Entrepreneurship

There are many Elements of Entrepreneurship :

Economic and Dynamic Activity

Entrepreneurship is an economic activity as it entails the creation and operation of an enterprise with a view of creating value or wealth by ensuring optimum utilization of scarce resources. These activities are performed on a continuous basis in an uncertain environment; hence it is regarded as a dynamic force.

Associated to Innovation

Entrepreneurship deeply involves a search for new ideas on a continuous basis. It forces an individual to evaluate the existing modes of business operations continuously so as to evolve and adopt the more efficient and effective system.

Profit Potential

Profit potential is the likely level of return to the entrepreneur for captivating on the risk of developing an idea into an actual business venture. Without profit perspectives, the efforts of entrepreneurs would remain only a non-figurative and merely theoretical activity.

Creative and Purposeful Activity

Entrepreneurship is a creative and purposeful activity. It is a creative answer to the changing environment. Earning profit may not be sole objective but the introduction of something creative and new is the purpose of entrepreneurship.

Risk – Bearing

The core of entrepreneurship is the “willingness to assume risk arising out of the creation and implementation of new ideas. New ideas are always tentative and their results may not be instantaneous and positive. An entrepreneur has to have the patience to see his effort bear fruit. In the intervening period, an entrepreneur has to assume the risk.