Entrepreneurial activity
Entrepreneurial activity means the purchase of or investment in a small business in which, upon such purchase or investment, the account holder will be a principal [Law Insider].
An entrepreneur is an individual who creates a new business, 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 play a crucial role in any economy, using the skills and initiative necessary to anticipate needs and bring good new ideas to market. Entrepreneurship that proves successful in taking on the risks of creating a startup is rewarded with profits, fame, and continued growth opportunities. Entrepreneurship that fails results in losses and less prevalence in the markets for those involved. Entrepreneurship is one of the resources economists categorize as integral to production, the other three being land/natural resources, labor, and capital. An entrepreneur combines the first three to manufacture goods or provide services. They typically create a business plan, hire labor, acquire resources and financing, and provide leadership and management for the business. Entrepreneurs commonly face many obstacles when building their companies. The three that many of them cite as the most challenging are as follows: Overcoming bureaucracy, hiring talent, and obtaining financing [Investopedia].
Hayes, A. (2022). Learn about the challenges facing entrepreneurs as they start new businesses. Investopedia. Retrieved from: https://www.investopedia.com/terms/e/entrepreneur.asp
Entrepreneurial activity definition. Law Insider. Retrieved from: https://www.lawinsider.com/dictionary/entrepreneurial-activity