Business and entrepreneurship
Business is an activity that involves buying and selling of goods and services at a profit margin or an enterprise that involves distribution of products to consumers at profit or is a way of life where individual pursue business as career with an aim of earning living or earning substantial profit. Business there for involves assuming risks, bridging a market gap or identifying problems and converting these problems to profitable opportunities.
Business is always with objective of successes that is being successful and provides goods or services of value to customers worthy their money. Business is associated with terms like; margin is a breakeven point where incomes are equal to expenditures, variable cost as per unit cost, growth and development where by development being better in provision of goods and services and growth involves generating a positive earnings or cash flows hence facilitating business expansion. Survival is the ability of a business to be a going concern that is remain in operation in a force-able future. Business should offer social responsibility to the environmental surrounding.
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Entrepreneur is a person who undertakes a business activity or an enterprise of which he/she has no background and faces considerable risks in the process.
Entrepreneurship is a process through which individuals identify opportunities, allocate resources and create value through identification of unmet needs or gaps and bridge it with suitable solution. Entrepreneurs therefore sees problems as opportunities then they take an action to identify the solution to such problems and the customers will be willing for the solved problems through purchasing goods or services provided to them.
Entrepreneurship consists of various aspects such as; creation process, devotion of time and efforts, assumption of risks and reward of independent satisfaction and profits. Entrepreneurship is described by three major thoughts which states risk taking meaning entrepreneurs are willing to talk risk and gain favorable profits, also creativity and innovation which shows entrepreneur is willing to develop a completely new business idea or improve an idea that is already existing in order to gain competitive hedge in the market . Final thoughts states opportunity seeking meaning entrepreneur perceives and ceases new profit opportunities ( Storey D & Greene F. 2010).
Entrepreneurship involves huge investments of capital, personnel, time and efforts with expectation of making high rewards or returns and assuming risks thereof. Entrepreneurship venture is associated with large amount of wealth creation, substantial innovations, high levels of potential growth, and high levels of risks.
Entrepreneurship plays a major roles in an economy and society such as creation of employment to citizens which improves standards of living of a country , earn a country foreign exchange, contributes to gross domestic product and national wealth of a country ,provide necessary goods and services to citizens at a reduced prices, helps to utilizes and conserve local resources and kills, provides revenue to government through payment of taxes and levies which is in turn used for development such as infrastructure and growth of an economy, provides opportunities on the job training, promote balanced economic development and growth within both rural and urban areas and promotes technology development and dissemination of information (Musenge K 2014 ).
More over Entrepreneurship is linked with some myths which include; Entrepreneurs are born and not made, entrepreneurs are academic and social misfits, money is only resource required by an entrepreneur to start a business, all entrepreneurs need is luck, starting a business is easy, those who make it are those from rich family background and entrepreneurs are extremely risk takers.
Entrepreneurship are of variety forms like ,Intra-prenuership is when you do entrepreneur where you are employed that is creating something new inside an existing company in order to gain bonus or wage. Public sector entrepreneurship involving creating value for citizens and takes place in government institutions. Collective entrepreneurship as a collective actions or activities that are profit oriented like SACCOS and investment clubs ( Grane F 2006, 19 ).
Political entrepreneurship is where gets a social and political benefits after providing common goods to the general public mostly these kind of venture is undertaken by political leaders who offer services to the citizens. Social entrepreneurship involves giving solutions to the society’s pressing social problems like churches and children homes.
Therefore entrepreneurship main objectives and goal is venturing into business by making constructive decisions and outlining best opportunities to be carried out and yield high returns or rewards. Business is venture by an entrepreneur through process of entrepreneurship. Which involves gathering ideas about a business (business ideas) from various sources which include shows and exhibitions , talking to successful business people, brainstorming, trend observation copying and improving somebody’s idea, building on your skills hobbies and interests and combining two existing business ideas in a new way.( Musenge K 2014 ).
Entrepreneur prepares a business plan after identifying a certain gap in the market. A business plan is an act of setting a business vision constructing business mission out of the vision, business objectives out of the mission business goals out of objectives and strategies to achieve the set goals.
A good business plan is very material for success of the business. The business plan will include all the activities or action to be performed in the course of business and there acts as pillar of the business. The business plan consists of Executive summary showing a brief summary of business, vision and mission statement. Business and industry profile ,products and services, marketing plan, business operations and organizations, human resources plan, financial plan, legal framework and harvest strategy or exit plan.
References
- Berman P. 1998. Small Business And Entrepreneurship. Canada Prentice Hall.
- Grane F( 2006 Vol.19 issue 3). Journal of small business and entrepreneurship
- Musenge K 2014 Entrepreneurship-Business Manual to Be a Successful Entrepreneur Lulu.com.
- Storey D & Greene F. 2010 Small Business And Entrepreneurship, 2010 Financial Times Prentice Hall
