Factors Of Production Entrepreneurship

Factors Of Production Entrepreneurship

Almost every day, in business news and across entrepreneurship blogs, we come across stories of successful entrepreneurs. These individuals started their establishments from scratch. I mean, from nothing. But today, many of them are smiling to the bank. Entrepreneurs are celebrated when they succeed, not when they fail. So, if you are planning to tread this path, you need to know what it takes to become an entrepreneur.

What are the factors of production entrepreneurship?

Entrepreneurship is one of the factors of production, while others are land, labor, and capital. The entrepreneur is responsible for mobilizing other factors of production to start a business and make profits. If he or she doesn’t swing into action, the other factors wouldn’t be useful. The entrepreneur is also the risk-taker. He or she makes all the decisions, and if the business succeeds or fails, the entrepreneurs take the praise or blame.

Continue reading to know more about this topic!

What Is Entrepreneurship?

The term “entrepreneurship” might sound appealing to some individuals. While for others, it’s a risk they aren’t willing to take. Nevertheless, before you embark on this journey, it is advisable to figure out what being an entrepreneur entails. That way, you can decide if it’s a path you are willing to tread or not.

So back to the question, what’s the meaning of entrepreneurship? I have provided a few hints regarding the definition of the term. There’s also nothing wrong with restating it. An entrepreneur is the vision bearer. He or she conceives the business idea and mobilizes other factors of production to make it a reality.

The entrepreneur has to source for money to run the business. He or she can get funds from family, friends, and personal savings or investors. And at the beginning of the company, he or she might need to nurture the business. That means work harder than anyone else. The reason is to ensure he or she doesn’t fail.

The term “entrepreneurship” might sound enticing and straightforward. But keep in mind that there are bumps, roadblocks, discouragement, disappointment, and the desire to quit, on the road to success. There’s a high possibility that every entrepreneur will come across these things. How you manage them, understanding of the business and a strong will to succeed will see you through these hard times.

In a nutshell, you need to understand that being an entrepreneur isn’t easy. First, you are starting a business you haven’t done in your life from scratch. Secondly, whether you believe it or not, there are internal and external factors that may attempt to hinder you.

Why Entrepreneurship Is A Great Idea

Every journey will begin in life, has advantages and disadvantages, and entrepreneurship isn’t an exception. However, there are reasons entrepreneurship will always remain a reasonable decision for any individual.

These are the reasons people like Mark Zuckerberg of Facebook started his company. Many believe the desire to encourage social interaction was the brain behind the launching of the company, but that’s not the only reason. Mark knew the business would be viable in time to come. The idea of being a boss also appealed to him.

Today, Facebook is worth a fortune, the same as other companies. Let’s take a look at the reasons being an entrepreneur is a great idea.

Puts you in control of your destiny:

If you don’t like to be bossed around, then entrepreneurship is going to suit you. As an entrepreneur, you are the boss. The decisions are yours to make. You control the business and decide what to do each day. There’s nothing more satisfying than being in a position where you are the one who is calling the shots.

Opportunity to transform lives:

Entrepreneurship gives you the opportunity and platform you crave to change lives. Your products or services can help to solve problems and better the lives of people. However, you can equally achieve this while working for others, but being an entrepreneur; you can decide the magnitude of the impact on the lives of others.

The prestige of being a business owner:

Take a look at Facebook CEO Mark Zuckerberg. Even though there are other investors, he’s still the founder of Facebook. There is a unique feeling one derives from being a business owner. Building a successful startup from scratch is also quite a considerable achievement.

Opportunity to travel as you wish:

There’s a common belief that entrepreneurs work harder than those they hire. They put in more hours than everyone else. Therefore, they might not have the chance to travel for an extended period. Unfortunately, that’s not the case. When you establish a business and hire qualified persons to handle the different tasks, you will have enough time for yourself. As an entrepreneur, you can travel to any location and extend your return date at will. No one is going to question or get you fired.

Have time for your family:

The beginning period of a startup business is always demanding. Entrepreneurs invest more time and resources in their companies, and the reason is to get the company off the ground. They might not have enough time for their family at this point. But things change as the business grows. They can host their kids’ birthday parties and attend school functions, including any other activity without worries.

Create a means of livelihood for people:

Google, a business that started as a research project, currently has over 103,549 employees working for them. Assuming the idea didn’t come to fruition, then individuals who are currently working for the company wouldn’t have a means of livelihood. An entrepreneur might be pursuing a dream, but he’s not the only one that might benefit when it materializes. The people he or she employs will also feel the impact, too.

Make money for yourself:

Whether you support it or not, money is relevant and highly needed. The primary reason people create a business is to make a profit. You can claim yours is to build a legacy or make a name for yourself. But let me ask you this critical question; how long do you intend to keep funding that business? An entrepreneur’s interest is to have a company that can generate enormous profit. It’s from the profit that works get paid, and supplies required for the smooth running of the business will be acquired.

4 Traits Successful Entrepreneurs Have

There’s nothing like a full proof map to attain entrepreneurial success or greatness. Let no one convince you that such exist. Take out time to observe two or more successful entrepreneurs out there. You will discover that they all share similar traits. Those traits help to contribute to their entrepreneurial success.

Let’s take a look at them quickly.

Trait# 1: Determination to succeed

Successful entrepreneurs are those that create clear goals before they even start their businesses. They know who to hire, how to boost sales, and scale up the business. These tasks are highly demanding. But because successful entrepreneurs have the determination to succeed, they tend to handle the pressure well.

Trait# 2: Risk-takers

Some of the world’s most successful entrepreneurs today are people who aren’t afraid to take risks. If not for this trait, the majority of them wouldn’t have achieved one percent of what they have today business-wise. An example is Facebook’s CEO, Mark Zuckerberg. Mark and his friend agreed to invest $1000 each into the business. Today, Facebook is worth a fortune.

It is not the amount of money they invested that quantifies the risk they took. Besides, risks aren’t only in monetary terms. The fact that Mark Zuckerberg left everything behind, including dropping out of school to devote time to his business is a considerable risk in itself.

Trait# 3: Willingness to learn

One needs to stay sharp and be open to learning new things to be successful as an entrepreneur. You will always have competition in any business niche you occupy. Everybody wants to be the best in their niche.

However, constant learning will help you develop a proper understand of your business and create new strategies that will offer a competitive advantage. So, successful entrepreneurs aren’t only willing to learn. They also tend to learn and adapt to new challenges faster.

Trait# 4: Confidence

Confidence is one fundamental trait that will ensure one’s entrepreneurial success. You are confident that you can get specific tasks done and do them well. Having this trait can also drive investors to invest their hard-earned money in a business. Even if the financial forecast of the company sounds good on paper, it’s the confidence of the entrepreneur that drives investors to release their funds.

Conclusion

Entrepreneurship is a journey that comes with a series of challenges. There’s no quick route to success; neither is there a foolproof map. There’s also no guarantee that your startup business will be successful. You should also know that success in business has nothing to do with capital, as there are multi-billion dollar companies that started with a fund of $1000. Instead, the success of the business lies in the hands of the entrepreneur. That’s because he or she is responsible for recruiting people and decision making.

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