Entrepreneurship is not a new concept in society; it has been around for a long time and is used by many people to meet their daily needs. However, entrepreneurship is usually associated with trading activities. So, what is the precise meaning of entrepreneurship?
Definition of Entrepreneurship
Entrepreneurship is a term that can be defined by the word ‘entrepreneur.’ According to the KBBI, entrepreneurship combines two words: ‘wira,’ which means man or hero, and ‘usaha,’ which refers to activities requiring energy and thought to attain specific goals. Other meanings are provided by experts like Richard Cantillon. According to Richard Cantillon, entrepreneurship is a person’s endeavor to purchase items at a specific cost in the present, with the intention of selling them in the future at an unpredictable price.
Also read: The Difference Between an Entrepreneur and a Self-Employed
Concepts of Entrepreneurship
Entrepreneurship Definition, Concepts, and Characteristics
After understanding entrepreneurship, it is essential to be familiar with its concepts. There are at least five fundamental concepts of entrepreneurship, as follows:
-
Agility
Agility is the ability of a person to quickly change directions without losing their balance. This ability allows them to survive any changes that may arise since changes will constantly occur over time; therefore, an entrepreneur must be flexible in reading conditions.
-
Endurance or Resilience
Endurance is an entrepreneur’s ability to endure and continuously suppress labor capacity. This will allow the business to endure any circumstance, including the recent pandemic. Companies with a high level of resilience will be able to survive in the marketplace.
-
Speed
The second concept of entrepreneurship is speed, which refers to the ability of people to move continually and quickly. Why is speed essential? Speed is crucial since entrepreneurs must be able to innovate rapidly to meet market needs against their competitors.
-
Flexibility
Flexibility is a person’s ability to adapt to any environment. Flexibility is vital since it allows entrepreneurs to optimize their abilities wherever they are without complaining or criticizing the circumstances.
-
Strength
The final concept is strength, the physical ability to optimize other concepts for a business to operate optimally.
Also read: 10 Successful Young Indonesian Entrepreneurs Starting a Business from Scratch
Advantages of Entrepreneurship
This entrepreneurial activity has numerous advantages for both business owners and others. What exactly are they?
-
Assisting Economic Growth
Everyone engaging in entrepreneurial activities will immediately have a direct role in economic growth, locally, nationally, or throughout Indonesia.
-
Creating New Job Opportunities
New jobs are automatically created when a new business is established. Entrepreneurship naturally creates new job opportunities since a business requires employees to produce goods.
Also read: 15 Advantages and Benefits of Being an Entrepreneur
-
Creating a Business According to Interests
You will be in charge of your work if you own a business. Therefore, having a business is frequently associated with working for yourself. For instance, you can start a business in your field, such as cooking, by opening a restaurant.
-
Following the Trend
The next advantage of owning a business is capitalizing on current developments. You can update and notice new information that is trending to help your business flourish.
Also read: 14 Business Goals and Objectives Entrepreneurs Should Know
Characteristics of Entrepreneurship
You must not be sloppy when running a business; you must possess entrepreneurial characteristics. These characteristics will facilitate the establishment and maintenance of a company. Here is the explanation.
-
Discipline
The first characteristic of entrepreneurship is discipline, which refers to running a business optimally, such as defining clear targets, setting the appropriate time, etc.
-
Self-sufficiency
In addition, there is a second characteristic of entrepreneurs, namely self-sufficiency. It would help if you made your own decisions without relying on others.
Also read: 13 Bad Characteristics Entrepreneurs Should Avoid
-
Honesty
The next entrepreneurial characteristic is honesty. It is essential to have so consumers may trust and be interested in purchasing the offered products and services.
-
High Commitment
Entrepreneurs must be highly committed because the business can only grow and advance with them.
-
Innovative
Changes in consumer needs are unavoidable. Consequently, business owners must be inherently innovative, so that they are not surprised by current changes and their products can continue to develop.
Also read: Business Risks Definition: Types and How to Overcome Them
Entrepreneurship Goals
Entrepreneurship Definition, Concepts, and Characteristics
The following are some of the big and small goals of entrepreneurship:
-
Improving Societal Well-being
The existence of entrepreneurial activity can help boost societal well-being, as demonstrated during the pandemic.
-
Motivating the Establishment of Small Businesses
People who operate large businesses must have the motivation or character of a business actor and, therefore, can motivate others to start their businesses.
-
Encourage a Spirit of Continual Innovation
A person will feel strengthened by engaging in entrepreneurial activity, which encourages them to continue to innovate so the business may continue to run and grow.
Also read: What Is a Business Proposal, The Definition, and Benefits
Traits of Entrepreneurship
For a business to run effectively and grow rapidly, one must have entrepreneurial characteristics. Some of them are:
- Strong Ambition to Succeed, Particularly in Business or Entrepreneurship.
- Possess a Strong Sense of Responsibility, Mainly Committed to the Business.
- Have Instincts or Solutions for Any Potential Business Risk.
- Have Confidence and Trust that Their Products are of High Quality.
- Able to Accept Praise and Criticism of the Product with Discretion so the Business Can Continue Improving.
- Have a Positive Attitude so that Business Activities are Full of Energy and the Ideas Generated are Maximised.
- Have a Vision for the Future so that the Business Does Not Exist Solely in the Present.
- Have an Excellent Organizational Personality so the Business Structure can become more Organized and Efficient.
- Can Handle Money Effectively. Since Business is always associated with profit or loss, business actors must be capable of managing money effectively.
Also read: The Difference Between an Entrepreneur and Entrepreneurship
These are some explanations of the ins and outs of entrepreneurship, ranging from the definition, concepts, benefits, goals, to the entrepreneurial traits that should be possessed. Hopefully, by understanding it, you can become a business actor who continues to innovate well.
