What is an Enterprise?

Enterprise refers to a for-profit business started and run by an entrepreneur. And we will often
say that people running such businesses are enterprising. The roots of the word lie in the French
word entreprendre (from prendre), meaning ‘to undertake’, which in turn comes from the Latin
“inter prehendere” (seize with the hand).

Entrepreneurship is the creation or extraction of economic value. With this definition,

entrepreneurship is viewed as change, generally entailing risk beyond what is normally
encountered in starting a business, which may include other values than simply economic ones.

Entrepreneurship is an act of being an entrepreneur, or "the owner or manager of a business

enterprise who, by risk and initiative, attempts to make profits". 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. Early-19th-century French economist Jean-
Baptiste Say provided a broad definition of entrepreneurship, saying that it "shifts economic
resources out of an area of lower and into an area of higher productivity and greater yield".
Entrepreneurs create something new and unique—they change or transmute value. Regardless of
the firm size, big or small, it can take part in entrepreneurship opportunities. There are four
criteria to becoming an entrepreneur. First, there must be opportunities or situations to recombine
resources to generate profit. Second, entrepreneurship requires differences between people, such
as preferential access to certain individuals or the ability to recognize information about
opportunities. Third, taking on a level of risk is a necessity. Fourth, the entrepreneurial process
requires the organization of people and resources.

An entrepreneur uses their time, energy, and resources to create value for others. They are
rewarded for this effort monetarily and therefore both the consumer of the value created and the
entrepreneur benefit.

An entrepreneur is an individual who creates and/or invests in one or more businesses, bearing
most of the risks and enjoying most of the rewards. The process of setting up a business is
known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new
ideas, goods, services, and business/or procedures.

Entrepreneurs usually start an enterprise – with the associated risks – to make a profit, and for
one of several reasons:

•Problem-solving. They see a particular issue that they feel they can solve.

•Exploit ideas. They have a new idea or product they believe will be successful.

•Filling a gap. They see a gap in the market they believe they can fill.

•Competitive pricing. They believe they can produce something on the market cheaper and offer
it at a lower price.

•Knowledge-based. Where they believe they can supply specialist knowledge that customers will
pay for.

The exploitation of entrepreneurial opportunities may include:

Developing a business plan

Hiring human resources

Acquiring financial and material resources

Providing leadership

Being responsible for both the venture's success or failure

Risk aversion

Entrepreneurship may operate within an entrepreneurship ecosystem which often includes:

Government programs and services that promote entrepreneurship and support entrepreneurs and
start-ups

Non-governmental organizations such as small-business associations and organizations that offer

advice and mentoring to entrepreneurs (e.g. through entrepreneurship centers or websites)
Small-business advocacy organizations that lobby governments for increased support for
entrepreneurship programs and more small business-friendly laws and regulations

Entrepreneurship resources and facilities (e.g. business incubators and seed accelerators)

Entrepreneurship education and training programs offered by schools, colleges and universities

Financing (e.g. bank loans, venture capital financing, angel investing and government and
private foundation grants)

A project undertaken or to be undertaken, especially one that is important or difficult or that

requires boldness or energy

1. Sole Proprietorship

Although often the smallest of companies, these represent the foundation of the UK’s market
economy. These can include ‘trade’ business, such as painters and decorators, or the owners of a
single retail unit. And, in the modern era, many online businesses can fall into this category,
from smaller enterprises selling products via Etsy or similar platforms to larger ones with a
website and app.

2. Partnership

Partnerships usually consist of a small number of individuals who share ownership and decision-
making (as well as profits). In some cases, such as legal firms, each partner may bring a
particular speciality to the businessto expand the overall services. In some cases, there may be a
type of hierarchy where there are senior and junior partners.

3. Private Limited Companies (Ltd.)

This sort of free enterprise has been legally incorporated and will have its own legal identity. It
will have a set of shareholders who shoulder a limited amount of liability for any debts the
enterprise incurs. Those shareholders will appoint directors to oversee overall operations and
decisions of the business, though the relevant managers will oversee the day to day operations.

4. Public Limited Companies (PLC)

Often confused with private limited companies, PLCs differ in that shares in the enterprise can
be sold to the general public. To do this, they have to meet certain regulatory and legal criteria
regarding the business’s financial health, transparency of their accounts, how long they have
been trading, and more. Being able to sell public shares can be useful in raising funds for things
like expansion.

Wage employment includes any salaried or paid job under contract (written or not) to another
person, organization or enterprise in both the formal and informal economy. People with
disabilities often face many barriers to finding decent wage employment; however, access to
wage employment should always be considered an option for people with disabilities interested
in work.

Self-employment is the state of working for oneself rather than an employer. Tax authorities will
generally view a person as self-employed if the person chooses to be recognised as such or if the
person is generating income for which a tax return needs to be filed. In the real world, the critical
issue for the tax authorities is not whether a person is engaged in a business activity (called
"trading" even when referring to the provision of a service) but whether the activity is profitable
and therefore potentially taxable. In other words, the activity of trading is likely to be ignored if
no profit is present, so occasional and hobby- or enthusiast-based economic activity is generally
ignored by the tax authorities. Self-employed people are usually classified as a sole proprietor (or
sole trader), independent contractor, or as a member of a partnership.

Self-employed people generally find their own work rather than being provided with work by an
employer and instead earn income from a profession, a trade, or a business that they operate. In
some countries, such as the United States and the United Kingdom, the authorities are placing
more emphasis on clarifying whether an individual is self-employed or engaged in disguised
employment, in other words pretending to be in a contractual intra-business relationship to hide
what is in fact an employer-employee relationship.

Self-employment provides work primarily for the founder of the business. The term
entrepreneurship refers to all new businesses, including self-employment and businesses that
never intend to grow big or become registered, but the term startup refers to new businesses that
intend to provide work and income for more than the founders and intend to have employees and
grow large.
In summary:

self-employment: an organization created with the primary intention to provide work to the
founder.

entrepreneurship: any new organization.

startup: a temporary new organization created with the intention to get bigger or at least have
employees.

In Nigeria, business terrains are war zones for entrepreneurs and investors, it is a terrain not
easily treaded upon except you have got extra ordinary courage and support from the
government. Business development and start-ups are not encouraged by the system or
government. The Nigerian business terrain is such a rough and tumble system, it has been either
consciously or unconsciously designed to naturally choke start-up and frustrate entrepreneurs,
here comes the interesting part, an average Nigerian is entrepreneurially driven, not government
nor the society at large has been able to annex this great strength, the call from business owners
and entrepreneur is to find a means to savage the frustration that encompasses the fresh starter
entrepreneurs in this country.

Nigeria business terrain is the most stringent and most expensive in the world, in Nigeria, young
entrepreneur grow up in the hustle, hostile and tough business terrain by facing challenges
ranging from power, to lease, to competition, to distribution, statutory agencies and government
bodies seeking various kinds of fees. Nonetheless, Nigeria is still an untapped treasure ground
for businesses, there are well over 100 natural resources in this country, and her wealth has only
come from one out the many, which is Oil and Gas, so if an investor or entrepreneur will look
away from oil and gas and focus on solving more pressing needs, that business will boom like
the oil and gas does for the oil magnets.

The above-mentioned issues make Nigeria a potential advantageous environment for business. A
nation with over 180 million populace, a multicultural nation with over 500 ethnicity, with plenty
of underdevelopment, this is sure a place to thrive in witty inventions. A potential entrepreneur
considers Nigeria for three reasons, the large market, the ever increasing desire to be amongst the
first to have it and be different.

What is the role of entrepreneur in wealth creation?

Wealth Creation and Sharing: By establishing the business entity, entrepreneurs invest their own
resources and attract capital (in the form of debt, equity, etc.) from investors, lenders and the
public. This mobilizes public wealth and allows people to benefit from the success of
entrepreneurs and growing businesses.

What are the roles of entrepreneurs in wealth creation and economic development?

Entrepreneurs make use of the resources in a country to produce more goods and services and
added value. This will, in turn, increase the Gross Domestic Product of the country. Also, SMEs
create employment income for people, thereby accounting for an increase in the per capita
income of Nigeria as a country.

How does entrepreneurship bring wealth to the economy?

Entrepreneurs boost economic growth by introducing innovative technologies, products, and

services. Entrepreneurs provide new job opportunities in the short and long term. Entrepreneurial
activity raises the productivity of firms and economies.

What is the importance of entrepreneurship development?

Entrepreneurship is important, as it has the ability to improve standards of living and create
wealth, not only for the entrepreneurs but also for related businesses. Entrepreneurs also help
drive change with innovation, where new and improved products enable new markets to be
developed.

Why innovation is important in entrepreneurship?

Successful innovation allows you to add value to your business so that you can increase your
profits—if you don’t innovate well, your business will plateau. Innovation helps you stay ahead
of the competition. With globalization and a rapidly changing market, there are more competing
businesses than ever before.
What is the importance of an entrepreneur?

What is the important of entrepreneur?

What is the role of entrepreneurship in wealth creation?

Wealth redistribution; when new products are created, or an entrepreneur enters into an already
existing market with a better product, wealth is moved in his direction, and both investors and
employees get a percentage of that.

Why is entrepreneurship important in the business world?

In entrepreneurship, unutilized resources, labor, and capital are utilized most efficiently.
Entrepreneurs take on risks in the hopes of making profit, or in the case of social
entrepreneurship, of solving a problem facing communities. So the significance of entrepreneurs
and the role of entrepreneurship go beyond the business world.

What is the role of entrepreneurship in Nigeria?

See the Role of Entrepreneurship on Wealth Creation in Nigeria. If you want to be rich, work for
yourself, this mantra and many others is what drives entrepreneurs, simply put, an entrepreneur
is in the business of wealth creation.

Why are entrepreneurs considered to be national assets?

Entrepreneurs are frequently thought of as national assets to be cultivated, motivated, and

remunerated to the greatest possible extent. Great entrepreneurs have the ability to change the
way we live and work.