Introduction:
- Entrepreneurship is a process of
setting up a new business organization. It is the process where one decides to
build a business career by finding the market options and mobilizing the
available resources.
Following are the Characteristics of Entrepreneurship.
1.
Economic Activity: -An entrepreneur produces a new product for the
consumers as per their needs. He feels the need of this to satisfy human wants
and as well in exchange earn a better livelihood. It is a systematic plan
activity as per the skills and knowledge of an entrepreneur. Hence
entrepreneurship is an economic activity.
2.
Innovation:
- entrepreneurship is an innovation. The introduction of new combination of
various factors of production is innovation. A new product arrives in the
market, uses new production technology, discovers new source of supply of raw
materials and opens a new market for the specific product.
3.
Creative activity: -Innovation should have a strong support of
creativity. Introducing creativity in producing some new is a big challenge for
the entrepreneur. Thus creativity is an essential part of entrepreneurship.
4.
Organizational building: - It is an activity where various factors of
production have to be organized. Different factors like place utility, time
utility, form utility, etc. has to be considered to collect them under one roof
for new production.
5.
Managerial skill and leadership: -A person who wants to be a successful
entrepreneur should have more passion of doing something new than just earn
profit. Leadership and managerial skills are the most important facets (part)
of entrepreneurship.
6.
Risk bearing:
-Uncertainty is defined as a risk which cannot be insured against and is
incalculable. Entrepreneur is an agent who buys factors of production at
certain prices, in order to combine them into a product, to sell them at
uncertain prices in future. Thus they too are risk-bearing agents of
production.
7.
Gab filling function: -The most significant feature of entrepreneurship
is gap filling. It is the entrepreneur's job to fill the gap or make up the
deficiencies which always exist in the knowledge about the production function.
