The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. ” As a business management student, I understand the idea of business itself. In my opinion; risk, capital, innovation, and proper management, are the four key factors that makes up entrepreneurship. Of course, if an entrepreneur lacks, at least, one of those, his business has a high arability of crumbling down into the ground sooner or later.There are a lot of factors that has to be considered first before an entrepreneur sets up a business.
I have limited and vague ideas of the risks that an entrepreneur has to take in order for him to put up a business. Basically, we all know that putting up, or even thinking of a one of kind business venture, is not an easy task. We, as rational human beings, tend to think about the details of the plans that we are about to make. From the smallest, tiny, bit of details, up to the biggest and grandest parts of our Lana, we want to ensure the flawlessness of the choices that we have made and will make.In contrary, we also have fear. We do not necessarily fear the idea of making the wrong choices, it is failing that we fear the most.
What entrepreneurs do, instead of running away from the questions and doubts that they have, they close their eyes, and take the risk. Entrepreneurs try numerous and countless times before they finally give up. However, It has never been Just solely about the risk, but also about the amount of trust and funding that one has on his product, or service, that could cake a business a success.
Starting a business without an excess amount of capital would be like getting into war without enough and proper ammunition. It would be fatal as it is indeed a basic necessity. How would an entrepreneur put his plans into work without the funding that he will need? There are fixed costs that he has to pay even before the start of the business. Plus, the amount of money that he will need for his first employee’s salary, the cost of production, the utility bills, and so on and so forth.In case of lack of funds, n entrepreneur can ask for financial assistance or loans from banks who offers such services, provided the entrepreneur provides the right documents needed in order for the loan to be granted. As an another business sector, banks and loaning companies do not quickly release loans whenever someone asks for it. They study the business plan that the applicant has proposed, think about whether the applicant is worthy of the loan, and if he will be able to pay the amount he has asked through the business or in other forms.
Innovation and proper management has to come from the entrepreneur himself.