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An entrepreneurship is a business or other organization started by an entrepreneur, or business person. The enterprise can be for profit or be a non-profit venture. Business management skills, marketing knowledge, an understanding of the demand of the product or service as well as risk management analysis are all crucial considerations in an entrepreneurship.
Risk management is important when starting up a new business, especially as many entrepreneurships fail in the first year. Expenses have to be covered and the entrepreneur must have the initiative and time available to invest in the enterprise. The risks such as start-up funds that could be lost have to be calculated and then deemed acceptable by the prospective entrepreneur before he or she goes ahead with the entrepreneurship.
The demand for the product or service also has to be calculated carefully by the prospective entrepreneur. What is the expected demand for the product or service? Will the business be able to meet the expected demand? These are just some of the questions that need to be answered before deciding if an entrepreneurship is a good idea.
Marketing knowledge is also essential for the entrepreneur. He or she must understand how to promote the product or service, what price it should be sold for, how and when the product will be produced and how and where the product will be sold. There are many marketing details to be figured out if the entrepreneurship is to be a success.
Business management skills such as planning, budgeting, record-keeping and negotiating are also important to an entrepreneurship. The entrepreneur must be able to work well alone on many different aspects of the business, at least until employees are hired. Entrepreneurships are considered beneficial to the economy as they usually create new jobs as they experience growth.
Non-profit entrepreneurships can provide needed community services, but they require the same skills as for-profit businesses. These entrepreneurships must meet regulations about how donations are used and often must have their finances publicly displayed. Most non-profit entrepreneurships rely on volunteers to meet their objectives.
There are a lot of people who claim entrepreneurs are essential to economic growth. There is some merit to that claim. Sam Walton, after all, started Walmart from nothing, Henry Ford helped launch the automotive industry and Edison bought us electric lights on a massive scale. Those entrepreneurs were able to see needs and meet them.
There are some efforts in various states and locations that exist to help entrepreneurs get the space, funding and equipment they need to turn their ideas into companies that employ thousands of people. Business incubators attached to colleges, for example, are built for that very purpose.
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