Definition Of Entrepreneurship:
Entrepreneurship is a term widely used in the business environment, under its relationship with the creation of companies, new products, or their innovation.
The word entrepreneurship is of French origin entrepreneur which means ‘pioneer’. However, in the twentieth century, the economist Joseph Schumpeter places the entrepreneur as the center of the economic system, mentioned that “profit comes from change, and this is produced by the innovative entrepreneur.”
Entrepreneurship has its origin at the beginning of humanity since man is characterized by taking risks to generate opportunities for economic growth that can provide a better quality of life for both himself and his family.
What is the positive role of Entrepreneurs?
- Entrepreneurs add national income
As we create new businesses, so will opportunities for people. On the other hand, the effect of increased employment is that higher-income contributes to a better national income in the form of higher tax revenues and what will allow us to invest in public spending. The government can use this revenue to invest in other distressed sectors and human capital.
- Entrepreneurs create new businesses
Trends in the world are always changing, it will make entrepreneurs always update their business and system to maintain their business. People’s demand will always change and get bigger, so it will also give people the opportunity to start their own business.
- Entrepreneurs generate social impact
Why social impact? It has a unique way of offering goods and services that can break tradition by making people open-minded about what happened in other countries as you need to know the trends of the world. entrepreneurs break with tradition and indirectly support freedom by reducing dependency on outdated systems and technologies. In general, this translates into a better quality of life, higher morals, and economic freedom.
- Entrepreneurs provide job opportunities
When people start a new business, they will need additional people to support and develop the business on top of that. It means that job opportunities will increase and people who previously did not have a job will have the opportunity to pursue a career. In addition, the opportunities in entrepreneurship will allow you to learn many things that will shape you to be an experienced person.
What are the negative effects of entrepreneurship?
The first disadvantage of having an entrepreneurial spirit is that if in any case in this way we can let our imagination fly in order to innovate in our enterprise and give it an original look, many times those ideas will not be the correct ones … so our ability to insist and resist is the one that shines.
In this way, we will have to persevere until we come up with the right idea, which means that we must fail or fail many times before having a really profitable good business.
The second disadvantage that we have when having an entrepreneurial spirit is that as entrepreneurs we have more freedom of our time, and if we do not organize ourselves in the most appropriate and orderly way, it will be a long, long time without achieving any previously set goal.
This is solved with a prior organization and discipline, we must often be hard on ourselves so that we can continue to grow, there will no longer be anyone to tell us what to do and how to do it.
The third disadvantage has to do with responsibility and workload. Although it is true that as an entrepreneur you must take care, mostly at the beginning, by yourself of all areas of your business, the negative is that many times you will feel very exhausted and you will not fulfill what you have proposed.
The solution is to let other people do the work, it is the best since you buy other people’s time and also the effort. The interesting thing about using financial leverage.