‘Entrepreneurship is neither science nor art, it is a practice. It is living a few years of your life like most people won’t . So that you can spend the rest of your life like most people can’t.’ Historically the study of entrepreneurship reaches back to the work in the late 17th and early 18th centuries of Richard Cantillon and Adam Smith, which was the foundation of classical economics.
According to Nicollo Machiavelli, “Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage”.
An entrepreneur is a person who undertakes the process of entrepreneurship to create an enterprise. The word entrepreneur stems from the French term-‘entrependre’ which means one who undertakes. Light is the stimulus for phototropic plants. Analogous to this, change is the stimulus for an entrepreneur. An entrepreneur undertakes risks, responds to changes and creates profits.
The process of entrepreneurship is a combination of multitudinous factors tied together in a correlation-causation format.
The process of entrepreneurship can be divided into a few broad processes:
1. Vision Creation
This involves generating ideas and creating a long term vision for the upcoming enterprise.
i) The first step to vision creation is recognition. In this phase, the entrepreneur must identify his interests, skill sets and the industry he wants to pursue.
ii) The second step is initiation. Once the idea is in place, it has to be set into action. For this strategizing is important. Thinking about the necessary research and development, marketing strategies, investment measures is required.
iii) The third step is incubation. In this phase, more ideas and options are explored with the involvement of the subconscious mind along with conscious rationalisation. Decisions and plans are made.
2. Analysis and Study
This again involves three phases. This is done to test the viability of an idea and to check if it is sustainable or not.
i) Induction phase: In this phase, the analysis of the feasibility of the idea/vision is carried out by conducting a SWOT (strength, weakness, opportunities, threats) analysis.
ii) Verification phase: An idea must be practical to be applicable and useful. Thus after the induction phase, it is in this phase that the idea is verified to be realistic so that it can later be implemented.
iii) Illustration phase: Here business canvasses, revenue models etc are created to weigh in the pros and cons. This also helps to develop a business plan and strategy for the upcoming venture.
This is the final process of vision creation, analysis, and verification.
i) Operation: Based on the business plans, canvasses, revenue models etc various steps are taken to begin the execution process. For an enterprise to run various departments like business development, sales, research has to be established.
ii) Implementation: In this phase, once the necessary departments have been established, they come into effect and the planning and strategizing is set into action. In simple words, this is the stage in which the entrepreneur is finally running his enterprise.
iii) Promotion: Once the implementation occurs and the plans are set into motion, promoting and marketing the enterprise/idea becomes imperative. Promotion helps to attract customers and investors. It is the first step to branding.
Along with these phases and processes, there is one important process without which an enterprise cannot survive. Running an enterprise is no child’s play. It involves risks and therefore mechanisms that act as a shield to protect the enterprise in case of failures/losses or mismanagement must exist. It should have the same phases as disaster management i.e. mitigation, preparedness, response, and recovery. This process basically is the insurance of an enterprise.
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!!!!!! Happy Entrepreneurial Journey!!!!!