Entrepreneurship is About?
One of the first things that come to mind when discussing entrepreneurship is about risk. Entrepreneurship involves risk, and in many ways, risk is a significant part of being an entrepreneur. In entrepreneurship is about risk, though, it is also often about the ability to recognize risk and capitalize on that risk when it presents itself. Just as in sports, when a player takes a chance there’s a certain amount of chance for injury, the same is true with entrepreneurship.
When discussing entrepreneurship is about risk, it’s also important to define what entrepreneurship is. Typically, when people describe entrepreneurship they are talking about the actions of an individual or group of individuals acting to create and produce something of value. With that definition in mind, entrepreneurship is seen as transformation or extraction of value from a situation. So, for the purposes of this article, we’ll limit our definition of entrepreneurship to the latter. By doing so, we not only simplify the process but also help to eliminate some of the potential arguments against entrepreneurship.
There are many people who argue that most businesses fail because entrepreneurs do not embrace failure. While there’s certainly nothing wrong with this in theory, I find that a large number of entrepreneurs actually embrace failure. Why do they do this? For many entrepreneurs, failure tells them that they have failed at doing what they set out to do, and they then go out and attempt again.
However, many people also become entrepreneurs in part because they see something that could have been a great opportunity missed. For example, let’s say that you’re interested in becoming a travel writer. If you miss out on the best opportunities, you may never have a successful travel writing career. Some people start their own travel company, and then they discover that there’s a much better opportunity available to them elsewhere. In this scenario, the entrepreneur misses out on an opportunity; however, the entrepreneur continues to pursue his or her other entrepreneurial passions.
The most common reason why people become entrepreneurs is because they see an opportunity that they would not otherwise ever have had. Consider the following examples of entrepreneurial opportunity: Someone opens a cafe; and four or five new customers start spending money at the cafe. The cafe owner realizes that he should pursue this opportunity aggressively, so he does just that. Within a short period, he has several employees, several cafes, and he’s become a national phenomenon. Is it any wonder that this entrepreneur would say that entrepreneurship is about seeing the opportunity before falling victim to it?
Another common reason why people become entrepreneurs is because they know how to run a business. Again, this is one of the most important elements in entrepreneurship. A person cannot succeed without a clear understanding of how a business operates. Entrepreneur quotes are filled with phrases such as, “knowing how to run a business,” or “having the knowledge.” These are obviously good attributes if you want to be successful. The real key, however, is learning to apply these concepts in the most practical way possible.
When reading through the above entrepreneurship definition, you will notice that the phrase, “knowing how to run a business” was not mentioned. In this case, the entrepreneur needs to learn how to market the product or service that he or she offers. They must also learn about how to make sure that their customers are happy with their purchases. It is not enough to say that you know how to run a business; you must be able to turn that knowledge into profitability.
This brings us to perhaps the most important point about entrepreneurship: entrepreneurship is not a short term endeavor. Indeed, true entrepreneurship is about being committed to the long-term success of a business. This commitment is what separates real entrepreneurs from those who merely dream of making lots of money, without investing any of themselves in the operation of their businesses. When people become entrepreneurs, they place a great deal of time, energy, and effort into making their businesses succeed.