Entrepreneurship is the process of creating or extracting economic value in ways that generally entail beyond the minimal amount of risk, and potentially involving values besides simply economic ones. It refers to an individual or a small group of partners who strike out on an original path to create a new business. Entrepreneurs are individuals who create and operate new businesses, taking on financial risks in the hope of profit. They combine resources, skills, and vision to bring forth new products, services, or solutions that meet market demands and create value.
Entrepreneurship involves innovation and risk-taking, and is an indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive global marketplace. Entrepreneurs act as managers and oversee the launch and growth of an enterprise. They typically create a business plan, hire labor, acquire resources and financing, and provide leadership and management for the business.
Entrepreneurship is not limited to starting new businesses, but also includes the ability to translate inventions or technologies into products and services. It is a resource that economists categorize as integral to production, along with land/natural resources, labor, and capital.
The entrepreneurial mindset combines several different skills that require careful development for the successful achievement of a business idea. For example, an entrepreneur must be able to balance an understanding of how business works — including from a financial and operational perspective — with a drive for innovation.
In summary, entrepreneurship is the process of creating or extracting economic value by starting a new business venture, taking on financial risks, and potentially involving values besides simply economic ones. Entrepreneurs are individuals who combine resources, skills, and vision to bring forth new products, services, or solutions that meet market demands and create value.
