Definition: Entrepreneurship generally refers to the act of Creating a new venture in the market, bearing all its possible risks and making a profit out of it. It is also an active act of developing, managing, and holding a business, in order to undertake manufacturing function, production planning process, organizing raw materials like material, labor and funds. Entrepreneurs take full advantage of new technologies and other available resources. These resources and technologies offer a huge potential for gaining profit. They provide enormous scope for innovativeness.
There are many programs and schemes initiated by governmental organizations and banks for providing support to budding entrepreneurs. This has led to emergence of many entrepreneurial institutions and organizations, which are responsible for training, supporting and aiding entrepreneurs. Programs like Startup India, Make Your Business Online, accelerator program and Technovation incubator programs have proved to be extremely useful in paving the way to support new ideas. Programmes like Entrepreneur First, Inventors Financing, accelerator fund and accelerator program were instrumental in helping entrepreneurs to pursue their plans.
As per the current scenario, entrepreneurial activity has become one of the main drivers behind social change. Entrepreneurs have shown a lot of commitment towards social change. There are many programs started by governments and private organizations for providing support to entrepreneurs. The best part of this social change agenda is that it fosters the development of small businesses and at the same time, it helps them bring down the levels of disparity and poverty. This has become an important feature of the globalization as well.
There are some measures that are implemented to help small business entrepreneurs. Policy makers have made a conscious effort to facilitate the growth of small entrepreneurs. Development of policies for social change has been a conscious attempt from policy makers to bring down disparity and poverty among various segments of the society. While measures like micro-finance schemes, grants and scholarships have been introduced to encourage entrepreneurs, there are still some other policies like Startup Companies Act, social investment bonds and tax credit schemes, that are being implemented to promote entrepreneurship.
To make things simple, there are now professional investors, venture capitalists and angel investors. These groups are taking an active part in the business of entrepreneurship and they are providing necessary seed money, business advice and helping entrepreneurs find exit strategies. Many programs are being promoted by these groups for training entrepreneurs to manage finances.
However, there are programs that may include entrepreneurs with high capital. They offer loans to small businesses at relatively higher rates. Depending upon the equity invested, they may include entrepreneurs with a net worth of one million dollars to five million dollars. Some venture capitalists also provide a third party option called a ‘use-and-cap’ option to provide a higher rate of return. These programs are increasingly popular as the economy starts to pick up.
In terms of investment capital for startups, there are many options available, both locally and on the internet. The best approach is to talk to local investors in your area and find out whether they are willing to invest. Local investors are generally more willing to invest in a startup that is in their neighborhood or within a geographical area close to their home. This helps to ease the burden of initial start-up costs, which may be daunting to many new businesses.
However, there are no magic spells for success. In order to become an entrepreneur, you need to have a sound business plan, hard work, and determination. An entrepreneur should also be passionate about their cause, whether it is social causes or business interests. Remember that true entrepreneurs are never satisfied and always seek to improve their craft, which leads to perpetual growth and development.