Light

Entrepreneurship

Definition

Entrepreneurship refers to the process of starting and managing a business venture, taking on financial risks in order to make a profit.

Analogy

Think of entrepreneurship as being like the captain of a ship. The entrepreneur is responsible for steering the ship (business) towards success, navigating through rough waters (challenges), and making strategic decisions to reach their destination (profit).

Related terms

Innovation: Innovation refers to the creation or improvement of products, services, or processes that bring value to customers. It is an essential aspect of entrepreneurship as entrepreneurs often need to come up with new ideas or find better ways of doing things.

Risk-taking: Risk-taking involves accepting uncertainty and potential losses in pursuit of entrepreneurial opportunities. Entrepreneurs are willing to take calculated risks in order to achieve their goals.

Opportunity cost: Opportunity cost is the value of the next best alternative that must be given up when making a decision. Entrepreneurs need to consider opportunity costs when allocating resources and making choices for their businesses.