Principles of entrepreneurship

The Principles

Entrepreneurship resides not only in the school of business, but also in the zeitgeist of liberal and contemporary culture. Fifty years ago the world was dominated by singular corporations that provided for nearly everything from phone lines to nuclear devices and radiators such as lasers (Bell laboratories).

However, today the world is spammed and clogged by the myriads of companies and proprietorships each yearning for their piece of the pie. Yes, we still do have those corporations that some consider to be bullies that monopolize in excess. Today, we as consumers and customers have more choices and thus more rationality in terms of how and why the product or service would, should, or could benefit us. Thus, that is or should be the basic mindset for an amateur yuppy seeking a self-employed vocation in the often gruelling world of commerce.

An entrepreneur as defined at reference.com [1] as, "a person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk". What the reference.com doesn't mention is that entrepreneur's are often faced with the impossible task of competing against the very giants of their respected industry, albeit computer software or infant shoes.

The word 'entrepreneur' derives from the french expression 'to take up'. 'Entrepreneur' refers to the trait of taking up new ideas, products and concepts in the marketplace. They find an unfilled need in the marketplace and fill it by developing an innovative solution to it. In return they seek some sort of significant compensation; often being but not limited to financial rewards. Other compensation may be aiding in the advancement of society, and having the ability to create their own work environment.

It helps for an entrepreneur to have a decent background in marketing, business management and economics. Also useful is knowledge of the product or service one intends to deliver to customers, budgeting and bookkeeping.

Often a newly sprouted entrepreneur the mindset analogy can be compared to the old "me against the world" and that's exactly what some new proprietors seek as they try to garner as many customers as possible providing quaility and affordabilty all while promoting their machinations either leading to huge success and eventual maturation or obscurity and even dissolvement. Successful entrepreneurs soon realize they must focus on delivering specific goods or services to specific customers rather than trying to be all things to all potential customers.

That is why the entrepreneur of today must be equipped and be prepared to face the difficulties of today's often hindering commercial world. If success does ever waiver for an entrepreneur he may seek to either choose to:
1. Convert and incorporate the entrepreneurship into an actual parternship or corporation
2. Sell the rights of the company or it's assets usually for reparations
Or even...
3. Remain as a one-manned company and continue as an entrepreneurship probably inheriting the rights to his son, family friend, etc.

However, with this said, there are many positives and negatives to converting a sole ownership but that topic is too broad and multitudinous to cover here, but work will be done in the future about the topic of the different types of incorporations. For now, you have learned a basic comprehension of the life of an entrepreneur, his competion and his many options as an entrepreneur, hopefully giving you a more potent sense of the principes of entrepreneurship as well as incorporation.

Business Plan

A business plan is a formal document that clearly defines a business idea and its feasability. It is often used for planning a new venture, a business expansion, and reviewing a businesses sucess or failure. It is most often used as a tool for investors, bankers, venture capitalists, and angels in acquiring startup capital.

More info coming soon...

• Steps in business planning