Entrepreneurship concept, features and functions

English word Entrepreneurship is enterprise or business enterprise or industrial enterprise. And the word Entrepreneur is derived from the French word Enturveder. It means ‘To undertake’.

Therefore, it can be said that the initiative is to start something independently with responsibility.  And when an initiative is taken in the field of business, it is called business enterprise or industrial enterprise.

Entrepreneurship refers to the firm determination to take risks in the hope of making a profit.  In the broadest sense, a business venture is an attempt to form a business organization by combining the means of production with the risk of profit and lead it to success.  Such as: running hotel-restaurant, fish farming with pond rent, gardening with land lease, buying mango, making pickles and selling etc.

Dr.  A.  R.  According to Khan,

Analyzing the above discussions and definitions, the following concepts of business venture or industry are found:

1. This is a creative work.

2. It involves the effective use of production materials.

3. It involves predicting potential opportunities for future traders.

4. Innovation of new products, services or ideas, introduction of new production techniques, introduction of markets, finding new sources of raw materials and setting up of new industrial establishments.

Therefore, the attempt to take a business organization towards success by combining the materials of production with risk is called business enterprise or industrial enterprise.

He who initiates business is the entrepreneur of business. That is to say, a person who with strong morale and courage tries to succeed by building and running a business even though the results are uncertain, is a business entrepreneur or entrepreneur. Entrepreneur is a change agent of a business.

The entrepreneur takes the initiative to establish an industry or business by inventing a new product or idea. He coordinates between the materials of production. He tries to succeed with all the responsibilities and risks of running the organization.

Henry Ford, the founder of the American Ford Company, Bill Gates, the founder of Microsoft, Mark Zuckerberg, the founder of Facebook;  Successful industrialists in Bangladesh are Zahurul Islam, Randa Prasad Saha, Junab Ali, Samson H Chowdhury, Dr. Hosne Ara Begum and others.

J.  B.  According to him,

In the light of the above discussion and definitions we can say about the entrepreneur that:

 

1. Entrepreneur is a creative, courageous and hardworking person.

2. Entrepreneurs collect production materials and use them properly.

3. He took all the risks.

4. He invents new products, services or ideas.

5. He finds new markets for the product.

6. He introduced new techniques of product production.

7. Entrepreneurs are responsible for setting up, managing and controlling an organization.

Therefore, the person or persons engaged in the effort to lead the business to success by combining the materials of production with risk is called business entrepreneur or entrepreneur.

Business entrepreneur or entrepreneur is a symbol of change in business or business style.  He combines the materials of production through risk and uncertainty. Then take the business to success through your own efforts.  Basically, this work effort of the entrepreneur is called business enterprise. So to better understand business venture, you need to know about its various aspects and components.  Below are some features of the business venture:

1. Legal economic work: The business venture must be economic. Economic work refers to any work done for the purpose of earning money or income.  However, this work must be valid in the law of the country. For example, if someone starts a liquor factory with orange juice, we will not call it a business venture. Because such work has not been given legitimacy in our country.

2. Related with earning profit: Business enterprise must be with profit. Must be relevant.  Through this, there is a possibility of earning profit along with employment of the entrepreneur. Entrepreneurs can earn a lot more profit if they succeed in their work.

3. Taking risk: The risk of financial loss is called risk. Risks exist in business ventures all the time.  Because there is no guarantee that there will be profit by selling the product. Therefore, the entrepreneur has to take risks in procurement, management, control, development, financing, etc. of production materials. No risk, no gain;  High risk, high gain. That is, there is no risk, no profit; The higher the risk, the higher the profit.  However, he has to take this risk in moderation.

4. Creative and innovative activity: Creativity is about introducing a new idea. Entrepreneurs are endowed with creative personalities. He accelerates innovation through a creative mindset. He introduced new products and improved methods instead of old products and methods. He discovered new sources of raw materials and created new markets for the products. This creativity or initiative is the intellectual property of the entrepreneur. So entrepreneurship is not a conventional business activity.

5. Collecting factors of production: Collecting factors of production such as land, labor, capital and organization through business enterprise.  Setting up and running a new business requires space, labor and money. These elements have to be organized by establishing relationships with different departments. Then it has to be directed towards the goal through proper coordination.

6. Creating employment: Entrepreneurs create employment opportunities for themselves and others through business ventures. Business enterprises need a lot of people in the production process and product marketing. So massive employment is created.

7. Creation of new wealth: The country's existing material resources are collected through business ventures. It is then used commercially.  For example: Entrepreneur makes furniture from wood. This increases the value of the asset.

8. Product or service: An important result of a business venture is the product or service. This product or service must have a monetary value.  Business initiatives are created from the idea of ​​a specific product or service.

9. Economic development: Economic development must take place through business ventures. Unemployment problem is reduced through business ventures. This increases the national income of the country. The result is economic development.

10. Social responsibility: In addition to making a profit in business ventures, one also has to fulfill social responsibility. Entrepreneurial work is conducted in the center of the society. For this we have to do good and welfare work for the society through business initiative.

So it can be said that business enterprise is the lifeblood of a country's economy. Economic prosperity is associated with the expansion of enterprise. This is a special kind of work, which involves business.

Business enterprise plays a key role in the socio-economic development of any country.  What level of work an entrepreneur can do depends on the socio-economic and political situation of the country. Developed countries do not have the facilities that exist, developing or underdeveloped countries. So in this case the nature of business enterprise functions is different. The business venture functions are discussed below:

1. Development of entrepreneurial thinking: The first step a business entrepreneur has is to develop entrepreneurial thinking. Entrepreneurs find market opportunities or gaps by realizing their own merits and availability of materials. He then developed his own initiative thinking accordingly.

2. Innovation: The success of an industrial organization depends on the invention, selection and use of suitable products, ideas or technologies. Most of the advanced technology is discovered and used in the developed world.  If you want to use any technology in the developed world, you have to adapt it to the surrounding conditions of your country and organization. Otherwise one has to invent any technology suitable for the country.

3. Organizing and leading: The first step of an entrepreneur is to give leadership and perform organizational work. Entrepreneurial initiative begins with the collection of materials with the idea of ​​specific work. The organizational work of the enterprise includes the selection of the type of organization, recruitment of necessary people, procurement and installation of equipment, observance of formalities etc.

4. Taking risk: Entrepreneurs always have to decide between risk and uncertainty.  Entrepreneurs work on new projects. As a result, they have to take all the responsibility of the organization. Entrepreneurs do not succeed when they do not take risks.

5. Decision making: Decision making is an important issue in any case. For this, one has to analyze the socio-economic condition of the earth, the amount of wealth accumulated, capital structure, availability of technology etc.  Entrepreneurs decide by examining all the feasibility of any project and play an important role in its implementation.

6. Performing social responsibilities: As an industrialist or businessman, the entrepreneur has responsibilities towards the society.  Entrepreneurs can reduce the unemployment problem of the society by setting up business establishments. Entrepreneurs can also collaborate with advice on creating new ideas.  He can also do social work such as construction of roads, construction of educational institutions and hospitals, providing tuition fees to poor and meritorious students.

7. Efficient management: Management is a subject which cannot be achieved without proper implementation. Entrepreneurs take the initiative as well as the management. That is why they have to be skilled managers. That is to say, all entrepreneurs are managers, but not all managers are entrepreneurs.

8. Creating novelties: In today's competitive business world, the tastes and tastes of consumers are constantly changing. In order to adapt to this variability, it is necessary to constantly change the type of business and the production of the industry. In this case, entrepreneurs always bring innovation as a symbol of change. In this way the entrepreneur tries to survive in the business competition in the world market.

9. Selecting proper technology: Entrepreneurs have to use new technology in keeping with the environment of their country. Entrepreneurs do this with their innovative energy and skills.

10. Financing: Financing is the work of raising money and using it properly for establishing and running a business. Money is the lifeblood of a business. Financing is more important when setting up a new business. The entrepreneur has to decide where to raise the necessary funds.  In addition, he has to be able to use the money properly.

11. Creating market: The aggregate of current and potential buyers of a product or service is called market. Entrepreneurs have to find new markets for their invented products and services. Therefore, it is necessary to keep a watchful eye on various strategies to increase the demand of potential buyers and consumers.  Otherwise, his discovery and invention would be in vain.

12. Research and development: Entrepreneurs invent new products and services, new ways of production. In order to make more profit in a competitive market, production costs have to be reduced and product quality has to be increased. This requires the discovery of new methods through research and development and the introduction of innovation in the field of production.

Therefore, it can be said that civilization would not have progressed so far without the progress of industry or trade. Industry and trade are the key to the development of a country.  Entrepreneurs play a major role in the development of industry and trade.

Entrepreneurs contribute the most to accelerate development, especially in developing countries.  For this the entrepreneur has to be diligent in performing the above work.