Entrepreneurial spirit

Entrepreneurship is the process of designing, launching and running a new business which is often initially a small business and the people who create these businesses are called entrepreneurs.

Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit". While definitions of entrepreneurship typically focus on the launching and running of businesses due to the high risks involved in launching a start-up, a significant proportion of businesses have to close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand – or a combination of all of these.

In the 2000s, the definition of "entrepreneurship" expanded to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable and then decide to exploit them, whereas others do not and in turn how entrepreneurs use these opportunities to develop new products or services, launch new firms or even new industries and create wealth. The entrepreneurial process is fundamentally uncertain because opportunities cannot be discovered or identified prior to their actualization into profits. What appears as a real opportunity ex-ante might actually be a non-opportunity or one that cannot be actualized by entrepreneurs lacking the necessary business skills, financial or social capital.

Entrepreneurs tend to be good at perceiving new business opportunities and they often exhibit positive biases in their perception (i.e. a bias towards finding new possibilities and seeing unmet market needs) and a tendency towards risk-taking that makes them more likely to exploit the opportunity. An entrepreneur may be in control of a commercial undertaking, directing the factors of production – the human, financial and material resources – that are required to exploit a business opportunity.

Entrepreneurs act as managers and oversee the launch and growth of an enterprise. Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation. The exploitation of entrepreneurial opportunities may include:

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