Definition and Concept of Entrepreneurship

Entrepreneurship means starting your own business by identifying a problem in society and creating a solution for it, while taking risks and using resources wisely to earn profit. The person who does this is called an entrepreneur.

Three Things That Define Entrepreneurship

1. Innovation
Bringing a new idea or a better way of doing something.

2. Risk Taking
Investing time, money, and effort without guaranteed success.

3. Value Creation
Creating something useful for customers and society.

Simple Understanding

A normal person sees a long queue at a restaurant and gets frustrated.
An entrepreneur sees the same queue and thinks, “I should open a faster and better restaurant here.”

Real World Examples

• Mark Zuckerberg saw that people had no easy way to connect online, so he created Facebook.
• A student in Pakistan noticed that finding home tutors was difficult, so he created an online tutoring platform and turned it into a business.

Exam Focus

• Entrepreneurship = Opportunity + Risk + Innovation + Value Creation
• An entrepreneur is not just a businessman; he is also an innovator and problem solver.
• A businessman runs an existing idea, while an entrepreneur creates something new.