Business Or Hobby

An entrepreneur is a person who has possession over a new company, enterprise or venture, and assumes full accountability for the inherent risks and the outcome. Entrepreneurship is often difficult and tricky, as many new ventures fail in the first few months of starting.

Successful entrepreneurs are actually risk averse. They are successful because their passion for an outcome leads them to organise available resources in new and more valuable ways. In doing so, they are said to efficiently and effectively use the ‘factors of production.’ These factors of production are:-

• Natural resources

• Labour (human input into production using available resources).

• Capital

• Intelligence/Knowledge

• Creativity

A person(s) who can efficiently manage these factors in pursuit of real opportunity will expand and become successful. Entrepreneurs often have strong beliefs about a market opportunity and therefore organise their resources effectively to accomplish their goals.