The Role Of Entrepreneurship In Business

Introduction

Entrepreneurship is more than just starting an individually owned proprietorship. It refers to being willing to take the risk of losing capital and time in pursuing a new investment venture with an aim of making profit. It usually involves the creative organization of an enterprise, raising capital, arranging the supply and production processes as well as managing operations (Smith, 2010). In that case, these things are not done in the usual or common way but through innovative methods informed by new ideas. Entrepreneurs, therefore, identify business opportunities, develop models of exploiting the opportunities and assemble resources to produce a new innovation.

The nature of entrepreneurship

Entrepreneurship is usually a creation

Most of the entrepreneurs invest in small businesses, or rather, start with small investments which are propelled into large multinationals by their creativity and desire to achieve more. While a business plan is one of the vital requirements for any business, it is the entrepreneur’s skill of turning challenges into business opportunities, decisiveness and ability to communicate dreams effectively that make the difference between success and failure (Textbook Equity, 2011; Smith, 2010).

A good example of the importance of an entrepreneur in business is the Steve Jobs’ impact on Apple. Jobs’ immense innovativeness and entrepreneurial skills helped the company rise to the rank of one of the most profitable firms in the United States. At the end of the 2012 financial year, the company posted a 66 million dollar net profit and is ranked the sixth largest computer manufacturer (Jinjin, 2013; Sharma, 2013). The rise of Apple was as a result of the company producing products that rival companies couldn’t match. For example, the development of Apple’s iPhone was driven by the need to gain a competitive edge over rivals, which led to the identification of an opportunity in the smartphone market. The company faced competition from established multinationals like Samsung Electronics and Nokia. Jobs realized that other companies were developing smartphones that suited

The plan acts as an action plan that guides one on how to complete tasks, a road map that ensures the entrepreneur remains on track and as a sales tool which can be used to market the business idea to investors where external funding is needed. A business plan answers questions about the venture and provides a sound basis for marketing the idea in a compelling manner. According to Lawrence & Moyes 2004), a good business plan should have the following elements; Executive Summary: This is a synopsis of the whole business idea and should not exceed two pages. It should describe the concept, identified opportunity, the product and its benefits, the target market, the marketing strategy, the competition, envisioned management and growth, amount of funding required and an exit strategy. This summary should be as compelling as possible, especially in explaining how the product solves a particular problem and the potential for profiting from the