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Characteristics Economic and Dynamic Activity:: Profit Potential
Characteristics Economic and Dynamic Activity:: Profit Potential
Characteristics Economic and Dynamic Activity:: Profit Potential
Characteristics
● Profit potential
Profit potential is the most likely level of return to the entrepreneur for taking on the risk of
starting a business.” Without profit potential, the actions of entrepreneurs would be only an
abstract and a hypothetical leisure activity.
● Risk bearing:
The essence of enterprise is the ‘willingness to assume risk’ arising out of the fabrication and
execution of new ideas. Uncertainty often follows new ideas and their results may not be
immediate and favorable. An entrepreneur should be patient to see his work produce results. In
the intervening period (time gap between the conception and implementation of an idea and its
results), an entrepreneur has to assume risk. If an entrepreneur is not willing to assume risk,
entrepreneurship would never succeed.
● Connected to innovation:
Enterprise involves a constant search for new ideas. Enterprise drives people to continuously
assess the existing methods of business operations so that more efficient and advantageous