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Entrepreneurship

Concept of Entrepreneurship

Categories: Accounting And Marketing

Concept of Entrepreneurship

Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship connected with land, labour, natural resources and capital can generate a profit.

Key Takeaways

  • A person who undertakes the risk of starting a new business venture is called an entrepreneur.
  • An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which aggregates capital and labor in order to produce goods or services for profit.
  • Entrepreneurship is highly risky but also can be highly rewarding, as it serves to generate economic wealth, growth, and innovation.
  • The way entrepreneurs file and pay taxes will depend on how the business is set up in terms of structure.

How Entrepreneurship Works

Entrepreneurship is one of the resources economists categorize as integral to production, the other three being land/natural resources, labor, and capital. An entrepreneur combines the first three of these to manufacture goods or provide services.

  1. Overcoming bureaucracy
  2. Hiring talent
  3. Obtaining financing
 

Three thinkers were central to the inclusion of entrepreneurs: Joseph Schumpeter, Frank Knight, and Israel Kirzner. Schumpeter suggested that entrepreneurs—not just companies—were responsible for the creation of new things in the search for profit.

Course Curriculum:

  • Pursue a Verified Certificate to highlight the knowledge and skills you gain

Firstly Appeared at: pftpedu