Enterprise stands for two things. One of them is a person who is willing to take the initiative to plan, start, and run a business successfully despite the risks involved. The second meaning of enterprise is business. Therefore, an enterprise defines personal skills and marketing.
What is Enterprise?
Entrepreneur: Enterprise as a Human Skill and Entrepreneurship
An entrepreneur started almost all the outstanding and successful company in the world has one thing in common, all of those businesses. You have heard about Apple’s Steve Job, Microsoft’s Bill Gates, and many other successful figures. All of them were entrepreneurs. Who is an entrepreneur? An entrepreneur is a person who, in the face of all adversity and risk, will successfully plan, start, and run a business.
An entrepreneur is someone who bears whatever fruit the business bears. If the company generates profit, then he gets to enjoy it all. On the contrary, if the business fails and brings in loss, he will have to shoulder the entire burden. Therefore, being an entrepreneur is about being responsible too. Entrepreneurs play an essential role in the economy too. Because of what they do, entrepreneurs bring new solutions to the market, which in return makes all our lives easier and keeps the wheel of the economy rolling.
Entrepreneurship is a part of the factors that go into production, and it is an integral part. Aside from entrepreneurship, the other factors of production are land, labor, capital, and natural resources. Land as a factor of production has a broad meaning. It can mean both farming lands and real estate upon which a business stands.
Essentially, what land means is the particular land that the company is operating upon. Natural resources refer to the assets a business can use from nature or the environment. These resources include gas, oil, coal, and much more. However, these resources are assets only when these are refined for use.
Labor in the factors of production refers to the employees who devote his skills is necessary to take a product from manufacturing to the market. Every employee starting from a waiter to a developer is included in labor. There was a time when labor affected the economic value.
Capital is an essential factor of production. Capital refers to the money needed to start and run a business. Without capital, the other factors of production cant are utilized. Capital is what entrepreneurs use to bring their products to the market.
All these factors of production are useless if the person wielding them isn’t an entrepreneur. What good are money and other resources and assets if you’re not willing to take the risk and launch a successful business?
Attributes of an Entrepreneur
All the greatest entrepreneurs in the world had some common traits or characteristics. All of them had the will power to start something new, take initiatives. They did it alone or with friends. Regardless of whom they started the business with, all entrepreneurs have to will power to take initiatives. Organizing a business is an essential skill for an entrepreneur. A business can’t function amidst total disarray. Therefore, a business needs to be organized.
Organizing includes running the business properly and making important decisions. For example, what is the entrepreneur trying to produce, how will he do it, and where is the market for it, an entrepreneur has to decide these. Aside from these practical problems, he also needs to determine how his business will be financed, where the investment will come from, and how he will utilize that money. He must utilize the factors of production and assign the right person to their rightful position. In short, he has to run the business effectively and efficiently.
The tasks of an entrepreneur don’t stop after organizing; he needs to oversee if everything is running smoothly in the right direction. For this, that person has to be in control and steer the wheels of the business himself. He is the master of his faith, and none can take his responsibility from his hand.
An entrepreneur is nothing if they don’t have a risk-taking mentality. Starting a business means there will be risks involved; there will be adverse situations. The entrepreneur not only has to go through these risks but has to foresee such events and try his best to minimize the risk.
The more the risk, the larger the profit. The number one attribute of an entrepreneur is innovative thinking. A successful entrepreneur brings new solutions to the table of existing problems. Not only that, but they also have to come up with ideas that benefit the entire community. The answer can be a new product or an updated version of an old product. All in all, innovation is the first and foremost quality an entrepreneur must-have.
Business: An Enterprise
Besides standing for social skills, the enterprise also means business, usually called a company. However, the words aren’t interchangeable. There are different types of ownership, each differentiating from the other based on legal ownership.
Sole Proprietorship is the sort of business where there is only one owner, and that owner alone manages all the aspects of the company. The owner gets whatever the business brings him, be it profit or loss. The owner of the business also bears all liabilities and faces all the risks.
When a small group of people come together and start a business where each of them has expertise in different aspects of that business, that is called a partnership business. In a partnership business, the owners jointly make decisions, and the risk and profit will be divided among the partners.
There are two types of companies, public and private companies. The difference between the two is that a public company has the right to issue shares, while a private company does not. Companies enjoy benefits like reduced income tax, limited liabilities, corporate veil, and also the separate entity of a business.
The separate entity of a company means that the owner’s assets stay untouched in case of bankruptcy.
In conclusion, the enterprise defines both people and businesses, both of which are closely connected.