‘Entrepreneurship has always been important. The concept of a person or group of people using their minds and creativity to solve a problem is both the foundation of a business and also basis of human progress” – (https://richardhlucas.wordpress.com)An entrepreneur is a person who accepts a large risk in order to use their creative initiative to start a company. Entrepreneurial activity is the backbone of the economy, and leads to economic growth, creates job opportunities, and raises stability and creativity. However, entrepreneurs face a large number of challenges in their business ventures. They conquer these challenges through the use of financial strategies and other important planning.
The Role of Entrepreneurs in Society…show more content… According to The Oxford English Dictionary, an entrepreneur is “a person who sets up a business or businesses, taking on financial risks in the hope of profit”. Entrepreneurial development has become extremely important, because it is crucial to economic expansion. Entrepreneurs produce and provide goods and services for customers and consumers to purchase. The items that billions of people rely on daily are formed as products from business, and most of the time are designed by the entrepreneurs themselves. Therefore, entrepreneurs occupy a dominant position in the economy. Entrepreneurs actively pursue disequilibrium in the wants and needs of customers, and the goods and services that are available. They use their energy, creativity, intrinsic motivation, and passion to generate a solution to this imbalance in a market place, and thus businesses are born. However, entrepreneurship is not an end location, but a process. One must combine the key elements of entrepreneurship in order to successfully create a business.
Key Elements of Entrepreneurship
There are many key elements that contribute to entrepreneurial success. The most important component behind any business is innovation. Innovation is the process of converting an idea into a consumable good or service, and is crucial for every business venture.
Preparation is imperative for entrepreneurs, as the more preparation is done, the more likely the business is to succeed.…show more content… Issues facing Entrepreneurs
One of the most prevalent issues facing entrepreneurs is the problem of funding the company. Most business owners choose to use a financial loan as a way to get money to start the business. While this is one method, in order to be considered for a bank loan, entrepreneurs must have an extremely detailed business plan. As well as this, if the bank loan is approved, entrepreneurs must be prepared to pay back interest. Entrepreneurs can also borrow money from family and friends, without interest, however this may mean that a portion of the business is expected in return.
Another important problem that may face new business starters, is the issue of finding customers. Many people are already devoted to brands, as the devotion has developed since their childhood. Entrepreneurs are pushed to discover new and exciting ways to attract customers to their companies.
Many of the problems that entrepreneurs face can be remedied through the use of strategies and