Understanding Entrepreneurship: Meaning, Nature, Finding Capital and Tips for Getting Started – Entrepreneurship, better known as entrepreneurship, is an activity that consists of the process of designing, launching and running the operations of a business or business.
Individuals who carry out entrepreneurial activities are commonly referred to as entrepreneurs or entrepreneurs . This word is taken from the French “Entreprende” which means “do”.
If entrepreneurship is explained in full, it has the following definition, “the capacity and willingness to develop and run a business activity include all the risks with the aim of gaining profit.”
Although in general the intent of entrepreneurship is focused on the activities of launching and running a start-up business, many entrepreneurial activities must eventually be closed due to lack of funds, making bad business decisions, economic crises, or a combination of them.
1. Entrepreneurship According to Experts
Entrepreneurship can also be interpreted as a process by individuals or groups to identify business opportunities to then gather the various resources needed to introduce this business to the public.
Meanwhile, according to Jean-Baptiste, entrepreneurship is moving economic activities from areas with low productivity to high productivity with more results.
Entrepreneurship activists, regardless of their size, can create something new and different. With this entrepreneurial activity they can change or add value to an item or activity.
In carrying out this entrepreneurship there are several criteria that need to be considered, first there needs to be an opportunity to combine resources to be converted into profits, both entrepreneurial activities require individuals with different characters, both for broad connections or the ability to get information about opportunities.
Third, taking risks is a must. Fourth, the entrepreneurial process requires individual arrangements and the resources used.
The concept of entrepreneurship was ignored in the late 19th century until the early 20th century, until finally the notion of entrepreneurship re-emerged in the late 1970s. In this 20th century, the notion of entrepreneurship was explained by the work of Joseph Schumpeter, an economist from Austria along with other Austrian economists such as, Carl Menger, Ludwig Von Mises, and Friedrich Von Hayek.
According to Schumpeter, entrepreneurial activists are individuals who are willing and able to turn a new idea into a successful innovation. They are considered as a party capable of replacing partially or thoroughly from poor quality innovations in the market and industry, and at the same time developing new models of products and businesses.
Many have the notion that entrepreneurial activities can bring economic progress, but this assumption is actually the result of an interpretation of endogenous growth theory and is currently still a debate within economists.
2. Characteristics of Entrepreneurial Activists
Nature of Entrepreneurship
In carrying out entrepreneurial activities, an activist must have several characteristics or characteristics that play an important role in the continuity of entrepreneurial activities.
Managing Ability , an entrepreneurial activist will face many aspects that must be managed starting from capital, assets, and employees. All aims to have business activities can run smoothly. For this reason, a good ability to manage must be possessed to be able to run this entrepreneurial activity effectively and efficiently to get the best results.
Team Building , as in the ability to manage, entrepreneurial activities will run smoothly and have the potential to develop rapidly when the entrepreneurial owner can build a team that is compact, solid and efficient. Building a team is not just about gathering talented individuals, but also looking for chemistry matches in the team that is built.
Willingness to learn , not infrequently when starting an entrepreneurial journey someone wears a lot of hats to make sure his business can go as planned. For this reason, they must be smart in seeking knowledge that is appropriate to the needs of entrepreneurial activities. However, along with this the activist must also have the ability to sort out what knowledge is needed and can be applied in entrepreneurial activities.
Dare to be at risk , Don’t be brave enough to take risks with your bravery. A good entrepreneurial activist, already has a calculation about the development opportunities of his business. Based on that estimate, the entrepreneur can decide whether the risks to be faced are in accordance with the success that can be achieved. Because many individuals who prefer to play safe and not dare to take risks to be able to plunge into a new field.
A good communicator , an entrepreneur must have a flexible communication style. He must be able to adjust the way of communication with the owner of the capital by discussing and speaking styles that are different from the field workers, while explaining the same thing. This is so that both parties can understand what the goals of this entrepreneurial activity have. A suitable communication style can also provide more moral encouragement for team members to be able to better understand vision and work better.
3. Funding Entrepreneurship Activities
Looking for Entrepreneurship
Entrepreneurial business activities just like other business activities, need a way to finance them. The following are some ways that can be done to find costs for this entrepreneurial activity,
Entrepreneurial resources, referred to in these resources are all assets owned by business owners and are used in the operations of everyday entrepreneurial activities. This resource is not limited to things that can be seen like, laptops, vehicles, or land and buildings. But it can also be an invisible thing, for example, specialization of work techniques, organizational structure, connections that are owned, to branding from entrepreneurial activities.
Bootstrapping , is a collection of all forms of business collecting funds that are carried out by themselves with the aim of reducing the amount of investment from large investors. Indeed this sounds strange, but the reason behind it is to maintain ownership or ownership of the entrepreneurial activities so that they are not focused on seeking profit. Because after being given a large amount of investment by a giant company, generally operational activities will be directed to seek profit without paying too much attention to the values that want to be held in the vision and mission of entrepreneurial activities.
In this bootstraping method activists of entrepreneurial activities collect capital from personal savings, or through personal loans and credit cards. They also minimize expenditure by using coworking or freelance services, also by asking for longer terms of payment to suppliers or preferring a leasing system rather than buying assets.
Not infrequently also this entrepreneurial activity includes the concept of lean manufacturing, which minimizes equipment owned by the company, or lean start-ups who choose to shorten the period of product development and market goods that are busy looking.
Looking for SME Investors , many investors now target entrepreneurial activities as a source of investment, hoping to have the fate of Facebook. Therefore looking for angel investors (individuals who want to invest capital in the form of convertible debts that can later be used as ownership shares) or Venture Capitalist which indeed focuses on investment in small and medium business models such as the majority of entrepreneurial activities, becomes an attractive choice for looking for capital but still has full creativity in its business activities.
Revenue Based Financing (RBF) , this model is also quite interesting to be used as a way to find capital by entrepreneurial activists. This capital search method makes the investor get results from monthly gross income with different nominal value each month, according to the percentage that was agreed at the beginning of the agreement period. In general, the RBF investor has a target of between three and five years to replace the initial investment provided. This model is mentioned to be among bank loans and angel investors / Venture Capital investors who need those who need real assets as collateral and a fixed percentage of payments every month, because the RBF Model has a percentage of payments in accordance with the income earned.
4. Tips for Running Entrepreneurship
4.1. Employ the Right Individuals
In carrying out entrepreneurial activities, an entrepreneur must be willing and willing to do anything to succeed in advancing entrepreneurial activities that are being built.
To simplify and get guaranteed results, building a good team is key.
Try to arrange a team that has similarities to the target of your entrepreneurial business customers, because they will have the same thoughts as potential customers so they can develop a more effective marketing strategy.
Look for team members who have high initiatives, so that the movement of the company will be more dynamic and not hampered because there are parts that work in an inappropriate rhythm.
In addition, build a diverse team, because according to research from the McKinsey Group, teams with more diverse members perform better than a team of individuals with the same character.
This diversity can also be a helper for entrepreneurial activities when it requires a different perspective, but still respects each other.
4.2. Working in a team
One of the advantages in entrepreneurial activities is to have the freedom to organize work styles that are in accordance with oneself. Even so, an entrepreneurial activist must be able to communicate well and have trust in his team members.
Like an expression ‘it takes a village to raise a child’, entrepreneurial activists must also be aware that it takes many people to be able to build a successful company. So the ability to work in teams is highly recommended.
If you are a person who is more focused on working alone, try using freelance services or build a team with minimal but effective communication. For example with a working model of remote working with progress meetings every week or two weeks.
It’s not just having a lot of competent team members, but also good delegating skills. So that the ability of a good delegation will be very helpful, by delegating work, entrepreneurial activists will also train team members to be better and have more satisfying work results.
Business activists must also be able to start delegating some jobs that do not require direct attention. This is useful so that entrepreneurial activists are not burdened with trivial activities and focus more on crucial activities that require more attention.
This indeed requires time, try slowly to be able to pass on some activities such as administrative work, then provide work with a higher level of responsibility.
4.3. Adapting Quickly
Like life that can never be predicted 100%, entrepreneurial activities also have a lot of unpredictable events. No matter how good our planning is, there is always a gap that escapes our thinking at the beginning.
Therefore, we must be able to adjust to the situation and think quickly. Especially if the events that occur are related to the future of entrepreneurial activities that are painstakingly built.
The speed of adaptation also helps us to face the competition that arises and develop our entrepreneurial activities.
We will continue to renew our work methods, marketing techniques, and other things, so that we can continue to compete, both with competitors and with our own jobs so as to produce better works.
4.4. Do not be afraid to fail
When starting entrepreneurial activities or even adapting to new things for the company, there will always be a possibility that the results will always be 100%.
But do not be discouraged if this happens, this is a very natural phenomenon that occurs especially in entrepreneurial activities that the majority have small scale teams.
What needs to be done when facing failure is not to deny it. Many who feel that failure is the end of everything, even though this is a valuable lesson. Recognize that there is a failure and analysis of the event, explore which aspects are still not in line with expectations or initial planning.
After getting the search results, determine whether anyone can correct this incident or it is better to start a new aspect with a different approach.
Use this incident when planning ahead, because it is not impossible that indeed the period of use is still not right, or there are some aspects that are still not supportive.
Entrepreneurial activities can survive and develop for the better if the entrepreneur can face a failure well. They see failure as an experience to get valuable lessons and use them as lessons for the future.
4.5. Get to know the limits that are owned
An entrepreneurial activist will be greatly helped if he knows the limits of his ability. By having this knowledge they will know which parts still need to be learned so that activities can develop.
They are also more voluntary to ask for input or assistance from outside parties, because of a big push to be able to develop their activities.
Many entrepreneurial activists are idealistic and feel that other people do not understand the intent and purpose of their entrepreneurial activities.
This makes it difficult for them to receive input given from others when facing an obstacle.
Whereas as a good entrepreneurial activist, he should be able to receive input given to be taken into consideration in making decisions.
Running entrepreneurial activities clearly has its own challenges which are certainly unique in each field.
For that, reading the stories of entrepreneurial activists can be very helpful, both to solve problems that arise, inspire when deadlocked, or even encourage you to take part in the world of entrepreneurship.
Lots of success stories are available, for example the story of Jack Dorsey when making Twitter or Mark Zuckerberg, which succeeded in making Facebook become one of the biggest technology companies.
Arianna Huffington from the Huffington Post about the world of media is also an interesting story, considering that this field has a considerable transition from print to digital.
You can even find out the story of the non-profit entrepreneurship Malala Fund run by Malala Yousafzai, to help educate girls.
Inspiration can come from anywhere and anytime. Make sure you are always ready to capture the opportunity to be better than yourself at this time.