The concept of entrepreneurship is “big” and involves many detailed concepts. Let’s look closer at the concept of entrepreneurship to be sure we understand its scale. Consider the following characteristics of entrepreneurship.
Entrepreneurship:
√ Is action-oriented. The key word in this characteristic is “action”; something is always moving. Owning a start-up most likely means managing it as well, at least at the beginning. The management concept means many things: making sure your business runs smoothly and efficiently; finding a market for your product; meeting the changing demands of your product in the marketplace; having in place the necessary operations to allow your business to operate successfully; and maintaining a productive and efficient workforce.
√ Involves calculated risks. The key word in this characteristic is “calculated”. There is risk involved in every business. You can do preparation to make sure you minimize risk as much as possible but sometimes, you get surprises, both positive and negative. However, someone must take responsibility for the decisions. That person is you. The more planning you do, the more you can minimize risk and increase the likelihood of success.
One of the challenges in starting a business is financing. It takes money to start and maintain a business, whether it is a one-person operation or a larger operation. It is not easy to have an accurate financial estimate in the beginning. That’s why it is important to plan for the unexpected; consider the calculated financial risks during the start-up time. This step is even more important if you have a family and dependents.
Your Turn: What are some of the other risks in starting your own business? List some of the other risks involved with starting a business and some ways to minimize those risks. Which of these risks would apply to your personal situation if you were to start a business?
Potential Risk Way to Minimize Risk
√ Involves much planning. The key word in this characteristic is “planning.” Operating a successful business involves knowing how to do many things and having many skills and talents. A good piece of advice for any entrepreneur is to “do your homework” and educate yourself in every aspect of the business opportunity you want to pursue.
Having the power to set your own policies (such as working hours) and having the power to keep all the profits provides a wonderful sense of independence. While the prospect of independence is exciting, it also brings responsibilities and challenges. In the long run, if your business does poorly, you are still responsible for your business debts. It is critical to understand and accept the financial responsibilities and legal ramifications of establishing a business before you make that final decision.
√ Starts small and grows. The key word in this characteristic is “grows.” It takes time for a business to grow. Success does not happen overnight. Hopefully, this growth will be positive. What can you expect from the experience?
Your Turn: Starting your own business presents many challenges as well as the potential for many rewards. Make a list of the challenges and rewards that you see for yourself if you were to start your own business.
Entrepreneurship:
√ Is action-oriented. The key word in this characteristic is “action”; something is always moving. Owning a start-up most likely means managing it as well, at least at the beginning. The management concept means many things: making sure your business runs smoothly and efficiently; finding a market for your product; meeting the changing demands of your product in the marketplace; having in place the necessary operations to allow your business to operate successfully; and maintaining a productive and efficient workforce.
√ Involves calculated risks. The key word in this characteristic is “calculated”. There is risk involved in every business. You can do preparation to make sure you minimize risk as much as possible but sometimes, you get surprises, both positive and negative. However, someone must take responsibility for the decisions. That person is you. The more planning you do, the more you can minimize risk and increase the likelihood of success.
One of the challenges in starting a business is financing. It takes money to start and maintain a business, whether it is a one-person operation or a larger operation. It is not easy to have an accurate financial estimate in the beginning. That’s why it is important to plan for the unexpected; consider the calculated financial risks during the start-up time. This step is even more important if you have a family and dependents.
Your Turn: What are some of the other risks in starting your own business? List some of the other risks involved with starting a business and some ways to minimize those risks. Which of these risks would apply to your personal situation if you were to start a business?
Potential Risk Way to Minimize Risk
√ Involves much planning. The key word in this characteristic is “planning.” Operating a successful business involves knowing how to do many things and having many skills and talents. A good piece of advice for any entrepreneur is to “do your homework” and educate yourself in every aspect of the business opportunity you want to pursue.
Having the power to set your own policies (such as working hours) and having the power to keep all the profits provides a wonderful sense of independence. While the prospect of independence is exciting, it also brings responsibilities and challenges. In the long run, if your business does poorly, you are still responsible for your business debts. It is critical to understand and accept the financial responsibilities and legal ramifications of establishing a business before you make that final decision.
√ Starts small and grows. The key word in this characteristic is “grows.” It takes time for a business to grow. Success does not happen overnight. Hopefully, this growth will be positive. What can you expect from the experience?
Your Turn: Starting your own business presents many challenges as well as the potential for many rewards. Make a list of the challenges and rewards that you see for yourself if you were to start your own business.
