The Small Business Forum
Entrepreneurship as Business Creation
- While there is no unanimous agreement, and people define it differently, the emergent consensus is that entrepreneurship is about business creation, that the difference between entrepreneurs and non-entrepreneurs is simply that entrepreneurs create businesses while non-entrepreneurs do not.
- Business creation itself starts as a business idea and involves turning the idea into an actual business. It involves:
– Identifying an opportunity for the business idea
– Evaluating the opportunity
– Mobilising resources to carry out the business - A business idea can be defined as an expression of goods or services you may want to offer, based on your interest and general understanding of the market. A business opportunity is a situation in the market where the goods or services of your business idea can be sold at a price above cost, in significant quantities, and over a reasonably long period. Any business is created to meet an identified need. Profit is made in the process.
- As many businesses die early while many do not grow to potential, to have practical benefit, entrepreneurship may need to be defined, not only as business creation but also to include business growth.
Comments, Questions and Suggestions welcome.
drkibuka@thesmallbusinessforum.co.ke
+254-729524219
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