Impact Of Entrepreneurship On Business Management

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Entrepreneurship is defined as the process of designing, launching and running a business. It typically begins as a business idea such as starting a small business, offering a product or service. What is unique about this venture is the possibility and level of risk involved for instance lack of funds, an unforeseeable economic crisis or poor business decisions. Entrepreneurship is about how people identify opportunities, evaluate whether they are viable and then decide to exploit them or not. The decision to exploit an opportunity or not depends on several factors that the entrepreneur is responsible for including cost versus how much the idea will generate, the market demand, and the risks involved. An entrepreneur is thus an innovator …show more content…

Jobs are created which leads to creation of wealth and stability of the economy as well as good conditions of a prosperous society. By coming up with new and innovative ways of doing things, national assets are activated, for instance infrastructure development. When businesses remain in the same domain for a long time, they experience the glass-ceiling effect and are unable to proceed. Introduction of new products and technologies therefore enable the development of new markets, and employment which in turn creates better national income in terms of taxes and government spending (Bruce, 2005) In addition to the benefits of entrepreneurship to the economy, it also enables people to be independent. Business people enjoy independence in that they can make their own decisions and they are I charge of their own work. One can toy around with unconventional means of doing things which eventually creates creativity and innovativeness. Again the entrepreneurs become part of motivation and inspiration to others in the society. One can follow their passion, which implies freedom unlike when one is employed and they have to follow laid down rules. The only downside to this is that the entrepreneur is responsible for all the risks including making huge losses (Bruce, 2005). There are many benefits of innovation to a society, but unregulated entrepreneurship may lead to problems such as pervasive

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