18 Nature and Characteristics of Entrepreneurship (Explained) - Googlesir

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18 Nature and Characteristics of

Entrepreneurship
Updated on: August 29, 2019 — 6 Comments
The ability to establish the new enterprise, directing and controlling it and adventure capacity to make
changes and carrying out various new improvements in the enterprise is called ‘entrepreneurship’ and
there are many types of features of entrepreneurship.
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Nature and Characteristics of Entrepreneurship

Following characteristics of entrepreneurship describe the nature of entrepreneurship:
1. Risk Bearing Spirit

This is the fundamental characteristics of entrepreneurship. Entrepreneurship is the spirit or capacity for
bearing risks.
Various types of risks are to be faced, right from the establishment of the business enterprise to its
operation and entrepreneur is also required to possess the strength to provide a guarantee against the
uncertainty.
In modern business, risk bearing has become important, due to increasing complications in the business.
Bonus: 10 Concept of Entrepreneurship (Updated).
2. Ability to Innovate
Entrepreneurship is an innovative activity, through which creative ideas may be implemented.
Entrepreneurs give proper attention to new opportunities, new techniques, new commodities, new raw
material, new production or distribution system, new trade, new machinery, new management system etc.
In the developed economy.
Besides, it is true that entrepreneurship is a creative innovative response to the environment. In this
regard, Peter F. Drucker has said: “innovation is a specific tool of entrepreneurship.”
3. A Lifestyle
Entrepreneurship is a systematic Lifestyle because every person has to be imaginative and creative to
achieve goals in life.
Not only that, but he has to also up possess the ability to formulate plans, to take decisions and to
implement the plans and decisions. This is the must follow the characteristic of an entrepreneur.
Related: 12 Main Functions of an Entrepreneur (With Examples).
4. Environment Oriented Activity
Entrepreneurship is an open and external activity, linked with the economic, social, political, cultural and
physical environment.
The entrepreneurs take the risk of producing improving and making changes in the products or services.
According to Schumpeter, “entrepreneurship is the creative response to every external condition.”
5. Universal Activity
Entrepreneurship is a Universal activity because the enterprise is required in all walks of life, like
education, health, medical, politics, Army, sports, etc.
Characteristics of
Entrepreneurship
Besides, it is equally required in all types of businesses, whether big or small, and in all these works and
activities, risk bearing, innovations, and leadership are required. This makes entrepreneurship a Universal
activity.
Related: 19 Factors Influencing Entrepreneurship Development.
6. Motivational Activity
Entrepreneurship motivates the Businessman and Industrialist to create new ideas, to implement them, to
search for various new opportunities and to make constructive thinking.
Hence, entrepreneurship is a motivational activity.
7. Creation of Resource
Entrepreneurship transforms the unuseful resources into useful products/services. Like the transformation
of raw materials and goods into resources.
Entrepreneurship increases competence to use productive sources because some economic values are
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linked with them. Thus, entrepreneurship is a process ABOUT US
to develop utility, economic values and the ability to
create wealth.
In this regard, Peter F. Drucker has said: “Without entrepreneurship, every machinery is garbage and
every mineral is a slap, or entrepreneurship may convert the heap of soil into gold.”
Related: 12 Essential Steps in Planning Process (Explained).
8. Practice-Based on Knowledge
Entrepreneurship is a practice based on Knowledge because an entrepreneur creates quality for the
enterprise, on the basis of his knowledge and experience and he attains high achievements.
9. Creative Activity
Entrepreneurship is a constructive and creative activity, the reason being that it provides inspiration to
persons for searching for new opportunities and also for creative thinking and implementations thereof.
Besides, in this activity, constructive activities are carried out also by making changes in the resources of
production, designs of the commodities, quantity, and Markets of the commodities, etc.
As a result, capital formation and other activities go on continuously in the country.
Related: 20 Types of Entrepreneurship (Explained).
10. Management is the Tool of Entrepreneurship

In any enterprise, management is the vehicle of implementations of entrepreneurial plans and decisions.
Changes and improvements in entrepreneur are introduced only by management.
Characteristics of
Entrepreneurship
Not only that, by increasing the use of management, in new activities, new business, non-business
organization entrepreneurship have developed. Thus, management is the tool of entrepreneurship.
11. It is Based on Principles, Not on Intuition

Entrepreneurship is based on certain principles. This is not only a spirit emerging from intuition or inner
inspirations of any individual. Rather, it is based on principles and thoughts of Economics, Law,
Physiology, Sociology, and Statics, etc.
Hence, a successful entrepreneur is required to have knowledge of these subjects. Hence,

entrepreneurship is based on principles, and not intuitions.
Related: 37 Essential Qualities of Successful Entrepreneur (Must Know).
12. Result of Different Changes

Entrepreneurship is not an economic activity or event alone, but is the result of the following changes:
1. Social, political, scientific and Technical changes.

2. Changes in social values, government policies, organizations and education.
3. Science, population, cultural and physiological events, etc.
Thus, as a result of the above changes, the approach and thoughts of people are continuously changing
and entrepreneurial tendencies are also developing.
13. Business Oriented Attitude

Entrepreneurship is a business-oriented attitude because it provides inspiration to interest taking
individuals and organizations, for having business oriented imaginations, for making plans and for
establishing industries.
Besides, it also provides inspiration to people to become the entrepreneur and establish any enterprise.
As a result, various new business Enterprises established in society. This is The main Characteristic of
Entrepreneurship.
Bonus: 19 Role And Importance Of Managerial Economics (Step-by-Step).
14. Result Oriented Behaviour

Entrepreneurship always puts emphasis on a result, and not on destiny. Hence, every entrepreneur
believes in achieving results through their efforts and Labour.
Besides, they Pay attention to gaining achievements, through their result-oriented behavior, strong plans,
and sound decisions.
Thus, entrepreneurship is a result-oriented behavior. Nature and Characteristics of Entrepreneurship.
15. Professional Activity

In the present context, entrepreneurship is not inborn quality but an acquired quality, because if someone
desires to acquire this ability, he will have to participate in entrepreneurial development programmes
organized by various Institutions and organizations.
Nature of Entrepreneurship
This is now becoming a profession due to the following reasons:
The ability of entrepreneurs is being enhanced and developed through education and training.
The government is also introducing various schemes to create interest and attitude towards
entrepreneurship.
Now entrepreneurship is not only a talent by birth, rather this is an earned talent, but entrepreneurship is
also thus emerging as a professional activity.
Related: 18 Characteristics of an Entrepreneur (Explained).
16. Process of Personality Development and Role Transformation

Entrepreneurship is a process of personality development and rural transformation because the
entrepreneur adopted new ideas new activities and new behavior besides he is continuously occupied
with those activities until his identity is not established as an innovator.
Hence, Prof. Parekh and Nadkarni have started that “entrepreneurship is not the only adoption of some
New work or behavior, but this is also the transformation of personality, through which he establishes the
new identity.
Read More: 17 Importance and Role of Small-Scale Industries (Economy).
17. It is not a Personality Trait but a Behaviour

Entrepreneurship is not a personality trait, but it is a behavior. Because the person who bears risks and
performs innovative and creative functions grows as a Big Entrepreneur day by day.
Besides, every person, through the development of decision-making capabilities and entrepreneurial
behavior, can become a big entrepreneur. In this regard, Drucker has observed: “entrepreneurship is not
the trait of personality, rather this is a behavior.”
18. Equal Essential for all Businesses and Economics

Entrepreneurship is equally essential for all businesses, big or small and in all types of economics,
developed or developing. It is essential for the development and survival of every business.
Entrepreneurship exists in all societies and economies, in different forms.
Thus, it is evident that entrepreneurship is equally important for all business and economics.
Read More
17 Importance and Role of Small-Scale Industries (Economy)
22 Advantages and Disadvantages of Privatization (Economics)
19 Ways to Increase Productivity in Business (You Should Try)
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5 Main Types of Disequilibrium in Balance of Payments (BOP)
21 Importance and Role of Entrepreneur.
Mixed Economy: Definition, Features, Pros, Cons & Examples
19 Role And Importance Of Managerial Economics (Step-by-Step)
15 Essential Elements of Control Process in Management (Updated)
Business Cycle: Definitions, 5 Phases, Measures (+Diagrams)
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— 6 Comments
Comments
Carroll Vlashi says

November 15, 2018 at 7:58 PM
Hello, This is a fantastic website, thank you for sharing it with us for the great blog post.
Reply
priya sharma says

March 20, 2019 at 7:42 AM
very useful knowledge, thanks
Reply
Keita Aminata says
May 8, 2019 at 6:26 AM

I’am Amina keita and student of university sonfonia English departemnt particulary Business
management
Reply
Manma says
May 9, 2019 at 7:41 AM
how can i help you?
Reply
BusinessHAB says
October 23, 2019 at 1:58 AM
How much does it generally cost to start a money lending business?
Reply
Manma says
October 23, 2019 at 5:22 AM
depend on the type of business
Reply
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HOME CONTACT US PRIVACY POLICY ABOUT US

ENTREPRENEURSHIP AND CAREER MARKETING AND SALES BUSINESS MANAGEMENT