Entrepreneurship is the creation of value by taking on risk in the use of human, financial and natural resources.
Entrepreneurship is about drafting a business plan, starting a business according to the drafted plan and running this business by managing the project drafted according to the business plan.
A good portion of businesses in their infancy face lack of funding, bad business decisions, government policies, economic crisis, lack of market demand, pandemics or a combination of all of these.
Entrepreneurs translate inventions or technologies into products and services. Those who are good entrepreneurs oversee the start-up and growth of the business by identifying opportunities to do business, finding and managing valuable resources to do business.
The opportunity to become an entrepreneur requires four criteria:
- a combination of resources to bring profit;
- the ability to find suitable people with special skills to do a specific jo;
- risk-taking;
- organization of human, financial and natural resources.
Entrepreneurs operate in an ecosystem called the entrepreneurial ecosystem, which includes:
- Government programs and services that promote entrepreneurship and support new entrepreneurs and businesses
- Non-governmental organizations such as small business associations and organizations providing advice and mentoring to entrepreneurs (eg through entrepreneurship centers or websites)
- Small business advocacy organizations lobbying governments for increased support for entrepreneurship programs and more small business friendly laws and regulations.
- Entrepreneurial resources and facilities (eg business incubators and seed accelerators)
- Entrepreneurship education and training programs offered by schools, colleges and universities
- Financing (eg bank loans, venture capital financing, angel investment and grants of government and private funds).
The entrepreneur is an innovator – a designer of business ideas and processes. Good managerial skills of entrepreneurs make it possible to build good teams, this skill is known as leadership or leadership, which is one of their basic skills.
The entrepreneur focuses his entire career and fortune on risk-taking to provide products and services that the market may require. This is at the core of the opportunities offered by markets and requires that, in the case of new products and services, the entrepreneur look beyond the uncertainty about this product or service.
For this they use several strategies that can be:
- Innovation with products and services, and new processes
- Listening to the customer’s voice
- Customer and market adaptation
- Continuous improvement of processes
- Discovering and using new business models
- Finding solutions to the problems that arise in the path of entrepreneurship
- Use of technology
- Use of business intelligence
- Use of management strategies
- Development of future products and services
- Optimized talent management
- Different marketing strategies
- Etc.
Many businesses need more capital than the business itself can provide. Private and public capital options help with this.
Entrepreneurs face taxes to be paid. Nowadays there are many studies related to business taxes and ultimately they are divided into two types of studies: studies that explain that taxes help entrepreneurship and studies that explain that taxes harm entrepreneurship.
For example, some studies argue that:
- corporate taxes create an incentive to become an entrepreneur to avoid double taxation;
- a higher corporate tax rate may reduce the entrepreneurial share of a state;
- states with inheritance or property taxes tend to have lower enterprise rates when using a tax-based measure;
- states with a more progressive personal income tax have a higher percentage of individual owners, etc.
However, entrepreneurs, after paying taxes and other duties, own all the rest of the money left over from doing business and use it for various purposes, but without forgetting to expand their business, as one of the main goals.
So, value creation, for those who do business, can bring more value.
Written by
Dr. Enriko Ceko, External lecturer for the JUMP Team
Head of Economics and Management Department, at University College “Qiriazi”, lecturer at University College “Wisdom”, Senator of World Business Angels and Investments Forum and Lecturer at WBAF Business School, Global Entrepreneurship Department, Humanitarian Ambassador of International Peace Association for Albanian Nation, President of Conservative Academy, Executive Director of Albanian Center for Sustainable Development, Executive Director of Albanian Center for Waste Recycling.
Photos by:
https://www.ecs.baylor.edu/synergy/2016/index.php?id=930610
https://www.gbnews.ch/a-journey-into-entrepreneurship/
