What Is Entrepreneurship Management? Describe its Importance

Entrepreneurship Management is the most important part of management, especially for those enthusiastic people who have an idea of a start-up. It is treated as one of the most important studies because entrepreneurship is one of the top trending topics of the 21^st Century.  

Further, the following is a brief introduction to the entrepreneurship and its definition, importance and roles in today’s business world.

What is Entrepreneurship?

Entrepreneurship is a process in which an individual or group of individuals together perform certain tasks and risk their time as well as money. These individuals are called entrepreneurs.

Entrepreneurs search opportunities through their exceptional skills and grow as fast as possible by utilizing innovative ideas despite having very few resources in control. There are two terms affiliated with entrepreneurship at some point that are entrepreneurial ventures and small businesses. There is a great difference between both terms that are defined below.

Entrepreneurial Ventures

The entrepreneurial ventures are such organizations that explore opportunities through having three factors in hand, i.e. innovative skills, constant growth and profitability. These three factors are the main goals of entrepreneurial ventures.

Small Businesses

The Small Businesses are such organizations that are owned, financed and operated independently. The following are the main features of small businesses.

• Fewer employees under 100
• Rare or not engagement with innovative ideas and modern trends
• Comprise little impact on the industry
• May be remain small by default or choice

Importance of Entrepreneurship Management

There are three things stated below, that define why entrepreneurship management is important.

1. Innovation is a process of experimenting, changing, transforming, and revolutionizing an entrepreneurial activity.
2. New Startups can contribute to reshaping the new firms through performing sufficient duties with innovative practices that may result in growth as well as the profitability of the entire firm.
3. Job Creation is another aspect that states the importance of entrepreneurship. New startups may require new staff, so the outcome will be much more beneficial for unemployed applicants.

Entrepreneurial Process

The entrepreneurial process comprises the following major factors.

1. Researching the Context: It covers society’s rules and regulations and the realities of new economy that are associated with the work of entrepreneurship directly or indirectly.
2. Identification of the opportunity and analyzing its advantages
3. Starting the Venture: It covers researching the feasibility, planning, organizing, and launching of the ventures.
4. Venture Management: It refers to managing process, growth and people.

What Do Entrepreneurs Do?

1. At first, an entrepreneur gets busy in examining the potential for the venture and the issues that are associated with the start-up.
2. If the venture is completed and running smoothly, the next thing that takes the attention of the entrepreneur is to manage it in a well-organized order.
3. Eventually, the entrepreneur needs to plan and manage the growth of the venture.

Preparation for Operating Small Business

The preparation for operating a small business requires enough concentration, time, and commitment. The most important factor in operating a business is to have a business plan, which should be effective and efficient enough to work appropriately. Regarding start-up, writing a business plan can be very technical.

Writing a Business Plan

A Business Plan is an official document that is prepared or written by the owner or the entrepreneur. It covers the vision of the owner, the nature of the business, the types of products or services, competitor analysis and how the company differs from its competitors, the goals of the company, strategies to achieve certain goals, production and marketing of the products, the management and finally, the financial sources of the business.

Besides, further necessary details are also included in the business plan. A Business Plan is written or prepared for the following purposes:

• To think the real aspects of the business and the aspects that are indirectly associated
• To get financing
• For measuring the progress
• For establishing credibility with others

Aside from all aspects, the plan should also provide a comparison of the abilities of the entrepreneur with the criteria for the production and marketing of a certain product or service. Further, the following terms lay in relation to entrepreneurship.

What is Change?

Commonly, change is known as an increment or decrement in the current level of anything, whereas in the business world, organizational change is termed as an alteration of any sort in structure, technology or people. Change is in the nerves of the organization by default and cannot be either eliminated or moved. Rather than removing or eliminating change, one should look for key issues related to change management.

Forces for Change

The gap for change is created by two forces, i.e. internal forces and external forces.

• Internal Forces

The primary origin of the internal forces is from the internal operations of an organization or from the effect created by external changes.

1. Changes in the workforce
2. Change in Strategy
3. Change in attitude of employees
4. New Equipment

• External Forces

External forces come from several sources.

1. Technology
2. The Marketplace
3. Government Rules and Regulations
4. Economic Changes
5. Labor Markets

Stimulating Innovation

For the sake of organizational success and effective entrepreneurship management, innovation is the most important factor across the marketplace. Sometimes, individual term creativity and innovation as a similar factor, whereas it is not completely true and even there is a great difference between them.

Creativity: – It is an ability to mix multiple ideas in an exceptional way or producing strange relations between effective ideas.

Innovation: – It is a process of transforming a creative idea into a product, service or a set of operations that meets the modern trends.

How to Foster Innovation?

1. Innovation is positively influenced by organic structures.
2. The convenient presence of organizational resources creates a critical building block regarding innovation.
3. Often inter-unit communication assists in breaking the barriers in innovation.