The relevance of entrepreneurship include the following:
They add to national income: Entrepreneurs pay taxes, export what they produce and import materials for their work. This increases the GDP.
Wealth Creation and sharing: Investors, leaders and people with money, put their money into business. They do this by giving people the opportunity to work for them. This bring them wealth and when they pay the people who work for them, it refers to the sharing of the wealth.
Job Creation: Entrepreneurs have a job to do and they employ others to do that work for them. An entrepreneur who is in charge of a media house can not go on air, edit the sounds or video among others at the same time.
This is why they hire people to work for them and by doing so, they create jobs for people.
Development or balanced Regional Development: It is the responsibility of the government to bring development to a country but entrepreneurs help in a way the government would not have thought of developing.
If a company wants to open another branch in a rural area, and the roads leading to the place are not well constructed, they would repair it for the use of the company.
The same reason they would produce water and electricity when needed for the use of the company which would end up benefiting the people.
Classification of entrepreneurs helps us to examine their activities, consider their effort and develop policies in order to support them.
These are the people with no prior (majority or minority) business ownership or experience either as purchase or inheritor to undertake a business
They are habitual entrepreneurs or individuals who own more than one business simultaneously (either minority or majority share holders in a business).
These are people who tend to think not in terms of grand vision but in terms of what can be exploited in their environment.
They are characterized by restlessness. they are quick thinkers when it comes to manipulating resources.C
They participate directly in the work of the enterprise including participating manually in all faces of the production.
They may have had training in the industry such as apprenticeship or internship.
This is an entrepreneur who continuously comes up with new business ideas and starts new businesses.
These are people who are alone or work with others actively engaging in the creation of a new venture. They expect to be owners or part of the start up.
These are individuals with innovative solutions to societies most pressing economic problems.
They are ambitious in existence when tacking major social economic problems and offering new ideas.
Characteristics of an Entrepreneurs
- Risk taker: They take a calculated risk. An example,if someone who cannot swim, tries to save someone who is drowning, then the risk being taken is not calculated.
- Abundance of self confidence: Trusting in oneself and the business concept one has is a trait of an entrepreneur. There is a high possibility the product may not stand the test of time,
This is because, when there is no self confidence in the market and the product, the high level of competition will lead to the failure.
- Passion for the business: Despite the ups and downs, an entrepreneur will be able to break through if he or she has an interest in what he does .
- If there is passion for the Job, an individual or entrepreneur will do whatever it takes to get the work done.
- Flexible: An entrepreneur must be someone who is flexible,thus, the person must be tolerant and listen to the views of others and be open to criticism
- High level of energy
- Must see opportunity in every problem.