Enterpreneurship

Bella Jacintha^*
*Correspondence: Bella Jacintha, School of Management, BITS University, Bangladesh, Email:

Introduction

Entrepreneurship is that it's the method of starting a business or a corporation for profit or for social needs. An entrepreneur is someone who develops a business model, acquires the required physical and human capital to start out a replacement venture, and operationalizes it and is liable for its success or failure. Attributes of Entrepreneurs Moving to the talents and capabilities that an entrepreneur must have, first and foremost, he or she has got to be an innovator who features a game changing idea or a potentially new concept which will achieve the crowded marketplace. Note that investors usually tend to take a position in ideas and ideas which they feel would generate adequate returns for his or her capital and investments and hence, the entrepreneur must have a very innovative idea for a replacement venture.

• Leadership Qualities

• Creative Destruction and Entrepreneurship.

Principles of Entrepreneurship

• It is usually not the case that Entrepreneurs should make money fast and this could not be the goal • It is usually better to seek out the proper opportunity albeit it takes time rather than chasing mirages

• Invest in people and build successful teams

• It is usually not enough to possess everything in situ. Execution and Delivery are what matters

• Entrepreneurs must be self actualizing visionaries

Entrepreneurial Finance

This article discusses the varied sorts of financing for brand spanking new ventures Need for Financing Any new venture needs financing and hence, entrepreneurs need to decide where to urge funding from, the way to invest, and the way much to borrow. this text cares with the sources of entrepreneurial finance which the entrepreneur has access to. Indeed, one among the central preoccupations for entrepreneurs is where and from to urge the funding so as to kick starter their ventures and hit the bottom running.

Bootstrapping

This form of financing the ventures applies when entrepreneurs invest their own money, or offer stakes in their venture to individuals reciprocally for his or her services, also as includes other sorts of financing like delaying payments to partners, offering equity to employees and other stakeholders etc. The important point to notice about bootstrapping is that it are often actualized only the entrepreneur doesn't need significant amounts of capital as all the methods mentioned above relate to investments that are limited in their capital mobilization. Another important aspect of this sort of financing is that entrepreneurs typically offer equity reciprocally for work done which may be a non ¬monetized sort of financing referred to as equity .

External Financing

This type of financing is that the commonest for entrepreneurs and this category includes all the kinds of financing mentioned subsequently. in comparison to bootstrapping where the entrepreneur raises money either from internal sources or by offering equity reciprocally for work, external financing often involves sourcing capital from external sources which are tangible and immediately monetized sorts of financing. aside from the kinds of external financing described below, private equity or equity to large investors reciprocally for financing is usually the norm for entrepreneurs.

Angel Investors

Angel Investors because the name implies are actually and metaphorically the Knights in Shining Armour to the entrepreneurs as they not only invest their own monies but also are known to guide the entrepreneurs in actualizing a successful business model. Indeed, Angel Investors also are known to take a position in new ventures as a way of doing good for society also on share their wealth with new and up and coming entrepreneurs who they (The Angel Investors) think have a game changing idea. Moreover, Angel Investors in many cases are successful entrepreneurs themselves and hence, mentor the new entrepreneurs within the same way managers and role models mentor promising employees. it's also the case that in recent years, Angel Investors have invested nearly 3 times the quantity of cash as raised through venture capitalists.

Venture Capitalists

Venture capitalists differ from Angel Investors within the sense that while the latter invest their own money and sometimes do so for giving back to society, the previous invest in new ventures with capital that their professionally managed investment firms have accumulated from private investors. In other words, venture capitalists often act as representatives of people and trusts with capital to spare and do so for profit oriented purposes instead of the for fun investments by Angel Investors. Further, venture capitalists need a compelling business model and its presentation by the entrepreneurs as they're within the business of investing for profit and hence, got to generate returns on their capital.

Buyouts

This type of financing happens when the entrepreneur sells his or her stake within the venture to individual or a gaggle of investors. However, buyouts also are wont to ask instances when private equity firms devour stakes in new ventures where the bulk stake remains with the entrepreneur. Moreover, buyouts are latter stage investments which mean that by the time the buyouts happen, the venture is already into its growth phase or within the process of being on the road to profitability. Having said that, it must be noted that buyouts also happen when the investors realize that ventures have good assets which may fetch returns also as have the potential to grow and generate value within the future. Buyouts also can be hostile meaning that the entrepreneur could be forced to offer up his or her stake in cases where the private equity or the opposite investors decide that a change of ownership would be good for the venture.

Summary

Finally, entrepreneurship must be seen as a start line to rework oneself and within the process become a change agent. For this to happen, the entrepreneur must be both be ready to fulfill environmental, social, and economic expectations from the larger system and at an equivalent time, must drive themselves within the pursuit of their dreams. Indeed, the balance between inner aspirations and external expectations is that the most vital determinant for fulfillment.