Enterprise
Class 11 CBSE Entrepreneurship — Meaning of Enterprise, Entrepreneur vs Entrepreneurship
Meaning of Enterprise
An enterprise is the business organization that is formed and which provides goods and services, creates jobs, contributes to national income, exports and contributes to the overall economic development.
An entrepreneur is the actor, entrepreneurship is the act, and the enterprise is the outcome.
Entrepreneur vs Entrepreneurship
The terms are often used interchangeably but conceptually they are different — just like the two sides of a coin. Both terms are co-related.
| Aspect | Entrepreneur | Entrepreneurship |
|---|---|---|
| Nature | A person (individual or group) | A process (set of activities) |
| Role | Bears risks, unites factors of production, carries out creative innovations | The activities performed by the entrepreneur |
| Focus | Attempting to create something new; bringing about change in factor proportions (innovation) | Identifying opportunities in the marketplace and marshalling resources to pursue them for long-term gains |
| Outcome | The actor who performs | The act of creating value |
| Relationship | One of the two sides of the coin | The other side — both are co-related |