Entrepreneurship Fundamentals

What are the basics of entrepreneurship? Entrepreneurship is a great way to explore new opportunities, go where no one has gone before, and contribute to making our world a better place. However, the road to success is often filled with many obstacles and challenges. This is where the true entrepreneurial spirit of an individual is tried and tested.

Everyone has their own reason to pursue entrepreneurship. Some want to control their own destiny whereas others wish to set their working hours with freedom. As an entrepreneur, it's you who calls all the shots and determines your income level.

Another important question that most beginners ask is about the advantages and disadvantages of entrepreneurship. What are they?

There are numerous advantages and disadvantages of being an entrepreneur. But at any given time the advantages far outweigh the disadvantages.

The advantages of entrepreneurship include freedom, ability to innovate, profits, time management, and discipline.

Whereas the disadvantages include Market risk, Increased workload, financial uncertainty, acquiring funds, high stress, etc.

Entrepreneurship is about freedom and creativity but at the same time, it also comes in with stress and uncertainties in the beginning. It's up to you to be able to get past the difficult phase and be successful.

But Are Entrepreneurs Born or made? The truth is that entrepreneurs can be both born and made. There are two schools that answer the debatable question of “Are entrepreneurs born or made” ever since the origins of an entrepreneur. A born entrepreneur is someone who has innate, “entrepreneur signs” such as risk-taking, creativity, curiosity, hard-working, perseverance, resilience, and leadership skills that allow them to take on entrepreneurial roles. They are then given opportunities to develop these natural skills in order to become an entrepreneur.

On the other hand, a made entrepreneur is someone who does not have these innate qualities but instead learns by experience or in spite of their lack of natural inclination in entrepreneurship. They use their acquired skills in entrepreneurship in order to be successful.

But why should you choose Entrepreneurship?

There are multiple reasons why individuals choose entrepreneurship as a career choice and lifestyle. Entrepreneurs have the ultimate control over their lives, work hours, and location. This is the top reason why people choose entrepreneurship over any other career. But the entrepreneurial journey is not for everyone as it comes with a lot of risk and responsibility. But if you are up for it, then nothing can stop you from pursuing your passion while making money. Being an entrepreneur not only ensures your success but also makes way for the success of your future generations.

Are there any specific advantages of an online business over the traditional model?

There are tremendous benefits of being an entrepreneur and if you operate an online business, the benefits grow multifold.

It's far easier than ever to launch an online business. It needs far less investment, offers flexible working hours, provides extremely low operational costs, and provides you the ability to offer services worldwide. An online business has high accessibility, low cost of marketing is easy to scale, and is ideal for niche products.

In this era of the internet and young entrepreneurs no longer need high investments and heavy machinery to start a business. Most billionaires today are in the online space and this trend is most likely to continue in the coming years.

How should an entrepreneur keep himself motivated? There are a few ways to keep an Entrepreneur’s Motivation going. Having a passion for what you do is one of those ways. It is clear that without a strong love for something, it's hard to persevere through difficult times. Moreover, if you are determined and have a clear goal-oriented attitude no one can stop your journey to success.

The most important aspect of entrepreneurship is avoiding burnout. It occurs when entrepreneurs are often exhausted and overwhelmed, which subsequently leads to losing motivation. It's important to keep your eye on the prize and gain the necessary skillsets through your journey.

But are there any myths attached to entrepreneurship?

Entrepreneurship is fraught with myths and misperceptions. These myths of entrepreneurship are typically based on the stories of the founders who actually did not know what they were doing when they started their businesses.

One of the myths of entrepreneurship is that it is only for techies, programmers, and people who have been working for computer companies for a long time. In fact, entrepreneurship can be pursued by anyone with an idea and a passion for implementing it in real life.

Some of the common myths associated with entrepreneurship include it needs a lot of time to succeed, it’s more expensive than you think, It all depends on the idea, luck is the only deciding factor for success and lastly, it’s easy to be an entrepreneur.

All these myths have been busted by multiple mentors and veterans but still most if not all young beginners get caught up in them.

Entrepreneurship is not only beneficial for you as an individual but also provides a great opportunity for the nation to prosper. From new job opportunities to increasing the average national income, entrepreneurship plays a huge role in a nation’s economic development. Research and Development is the backbone of many industries and is especially important for the development of new solutions. Entrepreneurship has been shown to promote research and is a key factor in innovation, as these entrepreneurs are willing to take risks and invest their time and money in high-tech solutions.

What degree should an entrepreneur take in order to improve his skill set and gain success? An MBA helps you to acquire multiple skills that include basic financial, accounting, HR skills along with business knowledge through workshops and seminars. For those of you who are wondering how could they get an MBA when they are super busy working on their business? The answer to this is an online MBA.

Multiple top MBA schools offer online MBA programs for you to pursue learning more skills that can help you in the business. Some of these top B-Schools include Harward, Wharton, Michigan Ross, and more.

Not everyone gets into a job for entrepreneurship, but another thought could be to get a job. What jobs can you get with an entrepreneurship degree?

There are multiple jobs you can get after an entrepreneurship degree that includes, business consulting, HR manager, mid - top-level management jobs, sales representatives, and more. The entrepreneurship jobs help you to acquire skills such as business planning, analysis, the functionality of an enterprise, management capabilities, and even domain knowledge.

As an aspiring entrepreneur, I would highly recommend you to take up an entrepreneurship job and try to learn the basic entrepreneurial skills in order to have great success in business.

“What’s the difference between entrepreneur and businessman?“ Where do you find yourself? Are you a businessman or an entrepreneur?

The main difference lies in the fact that an entrepreneur is willing to bite the bullet and go against the grain, taking higher risks than usual to operate a successful business.

Whereas a business owner is looking for profit and does not care much for innovation unless it comes naturally during the course of his business. Major differences between an entrepreneur and a business owner include the ability to innovate, the growth path that includes a unicorn status, vision, and the hustle to reach your goal along with the risk.

For a more practical experience, you can go and attend multiple entrepreneurship conventions. There are multiple events and conferences internationally for entrepreneurs, but it's important to understand what conference to attend and what’s in your best interest. When deciding to attend an event you must bear in mind the three most important things. You get exposure, opportunities, growth, and learn a lot from the speakers present. The most famous entrepreneurship conferences will start from January 2022.

What are the important characteristics required to be an entrepreneur?

There are multiple characteristics required to be an entrepreneur but innovation is one of the most important characteristics. As the owner of a business or a startup what you need is an idea that helps you differentiate from others businesses operating in the market. Another important characteristic of entrepreneurship is the ability to take risks. Being an entrepreneur is a test of one’s patience and mental endurance.

Patience is an important characteristic of an entrepreneur.  Entrepreneurship is not as easy as it seems to someone in a regular job.

Another important attribute required to be an entrepreneur is perseverance. Perseverance is the ability to persist or continue doing something until you achieve success. One of the main challenges you face as an entrepreneur is, constant failure and little success, especially at the beginning of your journey. Here’s when perseverance helps you get ahead in the game and continue fighting for success.

An entrepreneur's skills are different from the characteristics of an entrepreneur. The skills an entrepreneur must have to include effective communication, critical thinking, time management, decision making, courage, ability to handle pressure, empathy, customer management, negotiation, and management.

But why does an entrepreneur need all these skills?

It's important for you to work on acquiring the aforementioned abilities so as to succeed in the long term. At the same time, each entrepreneur has to make sure they are not wasting their time on skill sets they don't have, but instead focus on what they are best at. Certain skills are necessary for every startup business, such as marketing and sales. But the rest of the skills you need depends on the type of business one operates in.

An entrepreneur has a vision, a desire to see something come to fruition, and the persistence to see it through. The best way to understand the anatomy of an entrepreneur is to look at the most common behaviors and values.

What makes up the anatomy of an entrepreneur decides whether he will succeed or fail. Having a long-term vision along with the right mindset are the most important attributes of an entrepreneur. These along with the passion, determination to succeed, and optimism are integral to the anatomy of an entrepreneur. It's important to understand that small attributes like these are what decides the success of your business.

At the same time, we must discuss, exactly is the role of an entrepreneur in a startup?

There are multiple roles that an entrepreneur has to deliver on. These include successful execution of the idea, troubleshooting, recruiting the right employees, and partnering with the right people. He has to be always on the lookout for new opportunities and take calculated risks to achieve their goal. Moreover, an entrepreneur must acquire the necessary skills for success, be a pro at marketing and sale along with effective handling of the company accounts. An entrepreneur has to lead from the front and take the business out of all the troubles towards success.

There are numerous challenges that entrepreneurs face. These include startup costs, limited time, lack of expertise, funding, lack of experience, lack of motivation, and more. But how to overcome these challenges?

These challenges are common for most entrepreneurs and are not something that can be solved overnight.

What you need is a strong passion, focus, and team to mitigate risks and overcome such challenges at the outset. Most of these challenges can be overcome through critical thinking, perseverance, and sharp focus on the goal you want to achieve. It's important to keep your eyes on the reward and work with dedication towards achieving it.

Although there are different barriers to entrepreneurship these must be dealt with perseverance and optimism. The most common barriers that entrepreneurs face include lack of money, knowledge, fear of failure, lack of confidence, lack of experience and expertise, waiting for the perfect idea, and lack of motivation.

As apparent, most of these barriers are internal and are the outcome of individual characteristics. These can be easily overcome through hard work, passion, and perseverance. Along with these, you need a lot of self-control, critical thinking, and motivation to be able to succeed in your journey.

There are certain assumptions that you can safely have at the beginning of your journey. These include “no guarantee of success, put in great effort and hard work, sacrifices, etc.

It's easy to assume that you will face multiple failures and that there is no sure shot method to succeed. You have to believe in yourself and put in a lot of hard work for success. There are still many who are afraid of starting up their own businesses because many successful business owners fail on their first attempts. But if you have the aforementioned assumptions in mind you can have a steady ride without many hurdles.

Moreover, entrepreneurship is not a one-size-fits-all kind of career. There are many different approaches to entrepreneurship and it is best to know what they are and study them before you decide which route you want to take. It is important to understand the different business approaches and how each one of them can help you grow your business.

The various approaches for entrepreneurship include having a unique idea, differentiated product, developing a loyal community, building an ecosystem. Another approach you can take is through your creativity like Zara and H&M brands providing unique products to all customers.

The process of entrepreneurship is complex and there are many challenges that entrepreneurs face. The stages of the entrepreneurship process are like a roller coaster. It starts with a new idea, which is always exciting and rewarding. And when the idea takes off, you might feel extremely happy and excited.

However, the long-term experience ends up being very different from what you expected it to be. Idea generation is the most important step in the process of entrepreneurship along with brainstorming and perfect execution. Effective execution of your idea decides whether your business will succeed or fail.

But how much does an entrepreneur make? Entrepreneur salaries are not defined. An entrepreneur's average salary around the world is anywhere between $58,000 to $70,000 USD per year. But is that for real? How much do entrepreneurs make a month? There is no fixed amount to entrepreneurship salary. The average salary of an entrepreneur varies depending on the type of business and its performance.

Isn’t Entrepreneur the owner of the business, then how does an entrepreneur's income or it matter what salary he draws? Every entrepreneur draws a salary from the business no matter if it's high or low, an entrepreneur is a human being with a need for basic necessities.

What are the different types of Entrepreneurship?

There are various types of entrepreneurship and a list of entrepreneurs who have made it big in their niche. They all have their own missions, goals, and target markets. The core idea of entrepreneurship has evolved over time, and there are now many different types of entrepreneurs that exist today instead of just one traditional type.

These include startups, intrapreneurship, technical entrepreneurship, small business entrepreneurship, social entrepreneurship, digital entrepreneurship, and lifestyle entrepreneurship.

What is technology entrepreneurship?

Technology entrepreneurship is an investment in a project that assembles and deploys specialized technological knowledge for the purpose of creating value for a firm. An Internet Entrepreneur is an individual who innovates, creates, and builds new technologies. He is always trying to find the next big idea and build what he believes will be a high-tech product or service. The first generation of internet entrepreneurs and founders were largely tech-savvy people who built websites, and that’s what allowed them to create their own businesses. Since then, high-tech entrepreneurship has advanced at such an exponential rate that today there is no lack of technology entrepreneurs who can build a business without having any technical background.

Who is a serial entrepreneur?

Serial entrepreneurs have been emerging as a "completely new breed of entrepreneurs." The idea is that these individuals don't work on one project, but rather, they work on multiple projects simultaneously.

Serial entrepreneurs are people who create and sell a startup in order to start a new business. They are the ultimate risk-takers. They take their chances and dive into the unknown to see how their idea would fare in the market. The qualities of a serial entrepreneur include never getting satisfied with success, a natural ability to learn, persistence, confidence, a vision for the future, and great listening ability.

Freelancing can be a starting point for your business. A freelance startup is often small and can lead to big success at a later stage. A freelance entrepreneur is one who opens freelancing startups in any field including technology or designing. A freelance entrepreneur is often seen as the stepping stone for new businesses. And it is true, but it is also important to keep in mind that freelancing can be a very different path vs entrepreneurship. The major differences between a freelancer and an entrepreneur include the likeliness to be employed, control over their schedule, multiple work opportunities, and most importantly the amount they earn.

Then there is a term called intrapreneur. What is the difference between entrepreneurship and intrapreneurship?

The difference between entrepreneurship and intrapreneurship is that entrepreneurs need to start up their own businesses, whereas intrapreneurs work with an existing company and contribute to its success.

Entrepreneurship and intrapreneurship can work in conjunction with people from different fields in order to succeed. Intrapreneurs have the freedom to experiment and create their own projects, products, and services. They are entrepreneurs working within a company. Another view on intrapreneurs is that they are actually more like employees who work for themselves but happen to still work for their employer’s company.

Corporate Entrepreneurship is one of the new entrepreneurship models of doing things inside a corporation. It is also called corporate innovation or corporate transformation. Corporate entrepreneurship is best described as the process of creating value in an organization while maintaining its distinct legal entity.

Incorporating an entrepreneurship model into a company's culture can lead to better performance and a more innovative organization. This entrepreneurial mindset is an important part of a company's success because it promotes creativity, innovation, and risk-taking. Corporate entrepreneurship inculcates high energy levels, low risk, and the power of a big corporation behind you.

There are not just corporate entrepreneurs, we also have Micro-Entrepreneurs. Micro entrepreneurs are categorized as individuals who manage a small business and are considered to be the independent owners of a company with less than $10 million annual revenue.

They typically have a single location and focus on a specific niche or service and may not be large enough to attract major venture capital. They own and manage their business without having external funding or support and are typically focused on providing a niche service that is unique, creative, and profitable with low overhead costs compared to larger companies.

This helps them to stay competitive in the market. Examples of micro-entrepreneurship include handyman, car repossession business, personal trainer, barber, personal shopper, dog walker, etc.

A domain of entrepreneurship is digital entrepreneurship. A Digital Entrepreneur is a businessman who is either the owner or the founder of an online web-based solution. Online platforms such as Uber and Facebook are good examples of Digital businesses. In recent years there have been numerous multi-million dollar businesses that have come up in this space. This led to an internet boom with digital businesses gaining tremendous popularity. Digital entrepreneurship comes with a lot of benefits that include no infrastructure costs, high accessibility, and selling to a worldwide market.

There are multiple billionaires who have made it big through digital entrepreneurship, which includes Jeff Bezos, Mark Zukerberg, Bill Gates, Richard Branson, and more