What is Entrepreneurship?
Entrepreneurship is both the study of how new businesses are created as well as the actual process of starting a new business – the term is used interchangeably. An entrepreneur is someone who has an idea and who works to create a product or service that people will buy, by building an organization to support those sales.
Entrepreneurship is now a popular college major, with a focus on studying new venture creation.
Starting a business generally requires:
- A business concept or idea involving a product, service, process, or new technology
- People to support the work, whether as employees, vendors, or advisors
- A process by which the product or service will be delivered, or the technology will be developed
- Enough money to support the development of the idea to the point that it generates revenue
Why New Businesses are started
According to research by Cox Business, the main reasons entrepreneurs go out on their own, rather than staying employed, are:
- Control – to be their own boss
- Ambition – to start something from scratch themselves
- Financial – opportunity to earn more money
In fact, an Intelligent Office study reported that 65% of employees would rather be entrepreneurs than work for someone else.
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:
- Your interests
- Your background and experiences
- Your financial resources
- Unmet market needs
- Problems you can solve
- Your network and connections
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.