From low-cost tools for marketing and design, to website and ecommerce solutions, to crowdfunding platforms, there have never been more resources for people interested in starting a new business venture. Perhaps that’s why there are over 31 million entrepreneurs in the United States alone.
Entrepreneurship isn’t simply about being self-employed or having a great business idea. In this article, we’ll define entrepreneurship and discuss what it takes to become a successful entrepreneur in today’s world.
What is entrepreneurship?
Essentially, entrepreneurship is the process of developing, organizing, and running a new business to generate profit while taking on financial risk. In a broader sense, entrepreneurship is the process of transforming the status quo by solving the most pressing problems and pain points in our society, often by introducing an innovative product or service or creating new markets.
Entrepreneurship is now a popular college major, with a focus on studying ideation, new venture creation, and profit driven models.
What is an Entrepreneur?
An entrepreneur is someone who has an idea and who works to create a product or service that people will buy, as well as an organization to support that effort. An entrepreneur takes on most of the risk and initiative for their new business, and is often seen as a visionary or innovator.
Entrepreneurs come in all shapes and sizes, including small business owners, content creators, startup founders, and anyone who has the ambition to build a business and work for themselves.
Common traits for entrepreneurs
7 types of entrepreneurs
Entrepreneurs are as diverse as they are dynamic. Here are seven different types of entrepreneurs.
Pros and cons of entrepreneurship
While aspiring entrepreneurs have the potential to earn massive fame and fortune by starting a successful business, entrepreneurship is not without its hazards. Here are some of the pros and cons.
Pros of Entrepreneurship
Cons of Entrepreneurship
What is the entrepreneurial mindset?
Becoming a successful entrepreneur starts with bringing an entrepreneurial mindset to your business venture. The entrepreneurial mindset a set of skills, beliefs, and thought processes entrepreneurs bring to the task of building a new business. The main elements of this mindset are:
Common entrepreneurship requirements
Beginning a start-up as an aspiring entrepreneur generally requires:
Why entrepreneurs start new businesses
According to research by Cox Business, the main reasons people engage in entrepreneurship and go out on their own, rather than staying employed, are:
In fact, an Intelligent Office study reported that 65% of employees would rather be entrepreneurs than work for someone else.
Deciding what kind of business to start
Finding a need or opportunity in the market and filling it is at the core of entrepreneurship and small business success. That doesn’t mean that starting a business similar to one already in existence can’t be successful, however.
In considering what kind of business to start, assess:
With an estimated 50% of new businesses failing in the first five years, entrepreneurs will also need to be committed, persistent, and adaptable to beat the odds.
Learn More about Entrepreneurship
Whether you’re looking to open an online store or change the world through social entrepreneurship, find more resources and inspiration to get started on your entrepreneurship journey!
Entrepreneurship FAQ
What is the main goal of entrepreneurship?
An entrepreneur’s main goal is not to make money, but rather to create value by improving people’s lives and changing the way they do business.
What skills do entrepreneurs need?
Entrepreneurs must have confidence, intelligence, a positive attitude, and the ability to receive and implement feedback. Other crucial skills for entrepreneurship include basic finance skills, managerial skills, and the ability to network and build strong relationships.
What are the benefits of entrepreneurship?
Because they’re self-employed, entrepreneurs can work flexibly, be creative, and exert total control over their business and decisions, all while following their passion and unlocking potentially unlimited earnings.
What are the key elements of the entrepreneurial mindset?
The main characteristics of the entrepreneurial mindset are: curiosity, independence, resiliency, persuasiveness, and a focus on helping others.
This content was originally published here.
