Entrepreneurship is the creation of a new enterprise. Most entrepreneurial activities are profit oriented businesses. An entrepreneur is an individual who creates a new enterprise. When an enterprise is in the process of being created by an entrepreneur, it is often referred to as a new venture. New ventures contribute to economic growth. The essential quality of entrepreneurship is innovation. Innovation leads to creation of new and better products which improve the life styles of people. Henry Ford’s automobile improved the life style of Americans by providing them a better mode of transportation which was faster and convenient.
Entrepreneurship provides employment opportunities to a lot of people. Entrepreneurship offers an avenue for women in business. Recognizing this, Indian government has provided lot of facilities to help entrepreneurs and develop the entrepreneurial culture in the Indian society. Many government institutions like the development financial institutions provide financial and technical assistance to entrepreneurs. The venture capital funds run by the financial institutions provide even seed capital for new entrepreneurs. The state government run industrial development corporations provide counseling and technical assistance to entrepreneurs. Government of India is doing what all it can do to support entrepreneurs. They even provide marketing assistance to new ventures through various government agencies. But before one wants to become an entrepreneur one should possess some basic qualities. They are:
1. High level of self confidence.
2. High need for achievement.
3. High tolerance for ambiguity.
4. Innovative nature.
5. Risk taking ability.
6. Good educational background
7. Exceptional organizing ability.
8. Good contacts.
In order to succeed as an entrepreneur one has to develop these qualities. Before starting an enterprise a comprehensive business plan should be developed.
Steps in Developing a Business Plan:
Make a commitment to go into business to yourself
Analyze your strengths and weakness
Choose a product or service that best suits your strengths
Do market research for your product or service.
Choose a place for your business
Develop your marketing plan
Develop your financial plan
OTC: Over the counter exchange is a parallel setup to the stock exchanges. Small companies which cannot raise money in the capital markets can approach OTC for their financial requirement
Once you have made a comprehensive business plan you are ready to start getting into the operational aspects.
Finance is a major constraint for any new business venture. Here are some of the best sources of finance for an entrepreneur.
The investors are those who invest in public issues.
Sources of Funding a New Venture
* Wealthy individuals
* Venture capitalists
* Financial institutions
* Commercial banks
* Investing public.
A career as an entrepreneur will be most rewarding but at the same time the risk factor is high. If one has the necessary skills, starting his own venture is the right thing.
The efficient running of an enterprise depends on the skills of the entrepreneur. These skills can be developed by good education.