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What Are the Components of Entrepreneurship?

What Are the Components of Entrepreneurship?

Entrepreneurship has been in existence for a long while now. Different concepts of entrepreneurship can be traced back to as far as the early 18th century.

Are you shocked that it is that old and yet a lot of people are still practicing it? Well, it is. And, it has undergone several changes and evolution to adjust with the times and keep people ahead of their game.

Knowing the background, concept, and components of entrepreneurship is key to thriving in your business as a startup founder.

The Concept of Entrepreneurship

It is no secret that the concept of Entrepreneurship is centered on the idea of making gains (in most cases monetary) from an owned business. Yes, that’s right, you have to own a business to be considered an entrepreneur. That’s what makes you different from someone who works in an already owned business or establishment – the conventional 9 to 5 jobs.

Delving further, an entrepreneur is someone who owns and manages a business or establishment. Such an individual is responsible for bearing all the risks as well as enjoying the profits.

You may think that you just have to develop an idea that will sell and turn it into something tangible by building a business around it. Then boom! You are a successful entrepreneur. Unfortunately, there’s more to entrepreneurship than a great idea.

Before you think about all that, entrepreneurship is not that easy. You still have to do a lot of work to make your idea viable before you can even be considered an entrepreneur. And when you become one, you still have to play your cards right through the right strategies, team, and network to be considered a “successful entrepreneur.” So, you see, it is not that easy.

Components of Entrepreneurship

Since you now know what the concept of entrepreneurship implies, let us examine the entrepreneurship components.

1.   Mindset

What Are the Components of Entrepreneurship?

Entrepreneurship is more of an act of looking at something – an idea, innovation, or more, from a perspective different from the rest of the world (or most of it). Then, examining how an opportunity created by that thing can be used to make profits.

Mindset gives different resources their value. Take, for instance, what makes a diamond different from other stones? Or is paper currency different from mere paper?

The answer to this is your mindset – and the rest of the world too. To be an entrepreneur, you need to develop a mindset that challenges the status quo. A mindset that is unique, creative, and innovative to continue changing the game. Your mindset sets you apart from the rest of the world – a unique defining attribute of many entrepreneurs.

2.  Passion, Purpose, and Pursuit

To be an entrepreneur, you have to have a clear sense of your mission, your purpose. This may be to change the world, make a difference, solve a specific problem, contribute to humanity’s well-being, or merely make some extra cash. Entrepreneurs have a good sense of purpose. That is why they are goal-driven and inspired to win against all odds.

A person who finds purpose finds passion, or the other way round. Once you find your purpose, you are consumed with passion. Your passion can keep you going even on rainy days.

Once an entrepreneur finds a purpose, the next step is to pursue the purpose to achieve it or harness the best opportunity it presents.

3.  Vision

Where do you see your startup or business in a couple of years? As an entrepreneur, you should be able to answer this question comfortably anytime this question is asked. Another thing peculiar to entrepreneurs is their vision, their foresight.

All great entrepreneurs see beyond the present; they use their foresight in mapping out an outline that their businesses will fit in the future. This makes them energetic in doing what needs to be done. It could be completing necessary tasks, taking essential risks, establishing necessary cultures, and many more to put their businesses or establishments where they have visualized.

You need to set long-term goals, so you can work toward achieving them.

4.  Risk

Risk exists in all forms and sizes of businesses. Consistent success in a business is birthed from taking calculated risks. Since companies run and managed by entrepreneurs are owned mainly by single persons, it may be harder to take risks as there may be nobody to share them with.

You cannot do without taking risks in a business. How can you explore opportunities to gain a competitive edge if you don’t take risks? At the same time, you should not expose your business to excessive risks. Knowing when and when not to take risks is connected to the success of most successful entrepreneurs.

5.  Continuous development

One of the most notable attributes of successful entrepreneurs is their absolute preparedness in the face of most new challenges they face. How do they achieve this? They do this by developing themselves continuously. Developing yourself makes you prepared for any opportunity. So when it comes, you are ready to explore the opportunity.

To develop yourself, you may need to consult books, undergo training, pick up new skills, update your knowledge on your already known skills, and more. You can see it as a practice opening that will provide more opportunities.

6.  Approach to mistakes and failure

Every entrepreneur would have made mistakes at some point in their career; these mistakes may even lead to some degree of failure. However, the successful ones learn from their mistakes.

You should not see your mistakes as a failure but rather an opportunity to learn what works and what doesn’t. This makes you move on to the next idea swiftly.

Conclusion

The concept of Entrepreneurship excites everybody; even the wealthy are not left out. However, entrepreneurship as a concept is not easy, yet the number of entrepreneurs keeps increasing daily.

As an entrepreneur, first-time or not, learning these concepts and components and walking by them gives you an edge in the business sector. It sets you up for growth, puts your startup in a better position for success.

References

Entrepreneur: There Are 5 Major Components of an Entrepreneur. How Many Do You Have?

Sciencedirect: Key components and implications of entrepreneurship: A 4-P framework

Vistage: 5 characteristics of an entrepreneur

Investopedia: Entrepreneurship & Entrepreneurship Definition + Types

About AbstractOps

As a startup founder, handling business operations such as HR, finance, legal, and others, may be difficult. At AbstractOps, we specialize in simplifying the running of these operations and relieving you of the burden. We also help with employee orientation and training. To learn more about these services and benefit from them, send us an email at hello@abstractops.com

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