Understanding Entrepreneurship: Concept, Purpose, Nature and Types of Entrepreneurship

Meaning of Entrepreneurship – The sun was shining very hot that day. Even so, it did not dampen the spirit of this grandfather to sell. It sells a variety of drinks, both hot and cold. Just by spending from 2000 rupiah to 3500 rupiah, we can enjoy the refreshing drink sold by the grandfather. Grandfather sells this drink, to meet the needs of the grandfather’s household.

The above reading tells about an economic activity carried out by a grandfather. What is this activity called?

This grandfather does an independent business alias trading, in order to meet his daily needs. The activities carried out by this grandfather are entrepreneurial activities or can also be called entrepreneurship.

Understanding Entrepreneurship

According to the Big Indonesian Dictionary (KBBI), the word entrepreneur is a combination of two words that each have a meaning, a hero can be interpreted as a hero or a man, while the word business is an activity by exerting energy and thought to achieve a purpose.

The activities done by the grandfather in the story above, have the purpose of meeting the needs of the grandfather’s household. Because if this grandfather does not work, his family’s needs may not be met.

So the word entrepreneur can be interpreted as a person who does something with all his abilities to achieve a certain purpose.

During his journey, entrepreneurial activities developed into entrepreneurship, the term entrepreneurship is a synonym of entrepreneurship in English.

Before being translated into English, the word entrepreneurship itself comes from the French word, entreprende , which means adventurer, creator, and business manager.

Meanwhile, the understanding of entrepreneurship is an effort to determine, develop, then combine innovation, opportunities, and better ways to have more value in life.

On the book titled Entrepreneurship from Hery, SE, M.SI, CRP., RSA, CFRM. explained about developing entrepreneurship and entrepreneurship itself, an entrepreneur must be able to dare to take risks in order to gain profit. If Reader is interested in buying this book, click “buy the book below”.

 

Entrepreneurship and entrepreneurship itself is an effort that involves other resources such as natural resources, capital and technology, so that it can create wealth and prosperity through the creation of jobs, production and products that society needs. But the theory of entrepreneurship itself has developed a lot, and has its own meaning according to experts.

The Meaning of Entrepreneurship According to the Experts

1. According to Richard Cantillon (1775)

Entrepreneurship as a job itself (entrepreneurship). An entrepreneur buys goods now at a certain price and sells them in the future at an uncertain price. So this definition puts more emphasis on how a person is at risk or uncertainty.

2. According to Thomas W. Zimmerer

Entrepreneurship is the application of innovation and creativity to solve problems and take advantage of opportunities that others face every day.

3. According to Norman M. Scarborough and Thomas W. Zimmerer

Entrepreneurship is a process of creating something different by devoting all one’s time and energy accompanied by bearing financial, psychological, social risks, and receiving compensation in the form of money and personal satisfaction.

In running or creating a business, an entrepreneur must have enough knowledge, so that the business he runs runs smoothly, and is able to overcome problems that arise when the business is running.

In this time of pandemic, a strategic way of thinking is very much needed. This kind of thinking pattern is needed, so that an entrepreneur is able to adapt to the conditions that appear as a result of the Covid-19 outbreak. One of the supplies that an entrepreneur should have is the basic concept of entrepreneurship.

Concept of Entrepreneurship

5 basic concepts in entrepreneurship that Sinaumedians must know are as follows.

1. Agility / Agility

Agility is the ability of a person to change direction quickly and precisely when he moves without losing balance, so that he can adapt and survive with all the changes of the times .

This agility is closely related to the speed and ability to learn new things. The pandemic that came suddenly seemed to speed up the habits of our lives. From the entrepreneurial side, a person is required to be nimble in responding to these conditions, both in terms of strategy, results, and the market.

2. Endurance

Endurance refers to a condition that emphasizes continuous work capacity. Many economic sectors are out of business during this pandemic. Immunity in individuals, as well as companies, is affected by the pandemic.

Endurance is greatly influenced by the smoothness of production, and sales. If the products produced are still needed by many consumers during this pandemic, by itself the company’s income will continue to flow. Only those who have high endurance, can pass the test.

3. Speed

Speed ​​is the ability of a person to perform continuous movement in the shortest possible time. An entrepreneur must have speed in innovating to rush forward to respond to market challenges and how quickly an entrepreneur can outpace his competitors.

4. Flexibility

Flexibility is someone who is able to adapt to life wherever he is. Flexibility is one of the necessary factors in adapting. An entrepreneur is expected to have good adaptability. Wherever the place is, able to maximize the potential of the existing space, to carry out business processes, without having to complain about the condition of the existing place.

5. Strength

Strength or strength, which is an ability of human physical condition that is required in improving the performance of learning movement. Strength is one of the elements of physical condition that is very important in responding to entrepreneurial activities, because it can help improve the function of components such as speed, agility and accuracy.

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If you want to be at the forefront or be able to survive in a pandemic, if you have all these elements in a business person, then it will be very likely to survive and develop yourself.

 

Benefits of Entrepreneurship

The number of people who want to become entrepreneurs is due to the fact that entrepreneurship itself has several benefits, including?

1. Opening a New Job

When someone already has a large enough business, then to develop it, additional employees are needed in order to be able to fulfill orders. For this reason, entrepreneurship can open up new jobs, so that it can help make the community prosperous.

2. Role in Economic Growth

Entrepreneurship will always be related to the economy, so when you are an entrepreneur, you directly play a role in economic growth, be it on a regional or national scale.

3. Be able to own a business according to the field you like

Working according to the field you like will certainly be very easy and earn income. With entrepreneurship, then the field you like can become a business, like someone who likes to cook can own a restaurant.

4. Knowing Things That Are Trending 

The next benefit from entrepreneurship is being able to know what’s trending , so you don’t miss the latest information. Moreover, a business will be able to continue to grow, if it continuously follows the trend that is happening.

Characteristics of Entrepreneurship

To be an entrepreneur, then we must have entrepreneurial characteristics. This characteristic is very necessary because it will make it easier for someone to create a business that he will develop. Entrepreneurial characteristics as follows:

1. Discipline

The first entrepreneurial characteristic is discipline. In this case, discipline can mean as a motivation to be able to run the business to the maximum. As for examples of discipline characteristics, such as being good at managing time, being able to set targets, and so on.

2. Be honest

Honesty is one of the characteristics of an entrepreneur that must be possessed. This is due to being honest, it will make many consumers interested in buying a product that is being sold.

3. Independent

It has become a common thing when running a business to be able to make decisions quickly. Therefore, you need to have independent characteristics so as not to depend too much on others in making decisions.

4. Innovative

The development of the times will continue to change, so the needs and desires of consumers will also change. Therefore, an entrepreneur must have an innovative spirit so that the products he makes continue to be liked by consumers.

5. Have High Commitment

A business will be difficult to develop if there is no high commitment. Therefore, an entrepreneur needs to have a high commitment in developing his business. That way, the business developed will be able to compete with competitors.

Purpose of Entrepreneurship

In running a business, when an entrepreneur makes a plan, he must have a purpose. Big or small, this entrepreneurial activity has an impact on life. For more clarity, let’s look at some of the goals of entrepreneurship.

1. Supporting the Emergence of Small Businesses

An emerging entrepreneurial activity must involve many people to support the running of a business. The involvement of these human resources, can be acknowledged directly or not, will form new characters as business actors.

In the time of this pandemic, many economic sectors stopped, as a result many human resources lost their source of income. Currently, what is needed is an entrepreneurial activity that favors the economy of the people. If the economic activities of the people are fully supported, then new jobs will open up, and the community’s economy will also be helped.

2. The Welfare of the Raised Society

The sluggishness of the economy due to the pandemic, resulting in an increase in poverty in the community. However, there are still some economic activities going on, which are expected to be able to provide support for the national economy.

Armed with a strong concept of entrepreneurship, new innovations will emerge, thus, new business spaces will emerge, thus suppressing the unemployment figure.

3. Cultivating the Spirit of Innovation

When a person is under a certain pressure, sometimes it will trigger a spirit of thinking that is different from before. Not infrequently, new innovations will emerge from this kind of condition. So, if interpreted with a positive attitude, this pandemic also has a role, shaping a person’s personality to progress.

In entrepreneurship we must also have a spirit of passion, be willing and able to do difficult and risky work, and rely on our own abilities in making the right decisions. Through a book titled Cultivating the Spirit of Entrepreneurship by Rachmat Hidayat, Reader will be taught various ways so that the spirit within does not die out.

Thus, if the goal of entrepreneurship is achieved, then the national economy will grow.

Nature of Entrepreneurship

In business, there must be ups and downs, there are successes and failures. In order for a business to survive, even grow, and have an impact, an entrepreneur must have good entrepreneurial qualities.

An economist named McClelland said that an ideal entrepreneur has the following traits and characteristics:

1. Desire to perform

The desire to achieve is a trait that originates from within an entrepreneur, which appears because of the desire and drive to be powerful in achieving goals. An entrepreneur must have strategic business instincts, capable of generating large and fast profits..

2. Desire to be responsible

A high sense of responsibility is an important thing to have when carrying out entrepreneurial activities. A commitment to a decision taken, when an entrepreneur develops a business, or decides to become an entrepreneur, must be carried out responsibly

.This responsibility applies to all matters related to the running of a business, such as responsibility for the business that has been developed, responsibility for the available resources, as well as responsibility for the management of the results of the business.

3. Prejudice against secondary risks

In entrepreneurial activities, there must be various achievements or goals that you want to achieve. The process to achieve them, requires stages of mature work planning.

This planning is organized as a strategy to face all the obstacles that appear when the business is running. In preparing a work plan, it must be possible to anticipate the risks that will appear, as well as an analysis of the causes of business failure, or non-development of the business.

4. Understanding of a success

When formulating the purpose of entrepreneurship, it must be followed by a belief. It is this belief that becomes the spirit of an entrepreneur who feels able to achieve the target that has been planned. A self-confidence and belief that what has been produced is a quality product that can be accepted by the community.

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5. Stimulation by feedback

In the course of a business, input from various parties is very necessary. The input is in the form of feedback, as an evaluation of a product produced. This assessment can vary, according to what the customer feels.

If this feedback is in the form of a good assessment, then the entrepreneur can maintain, or even improve the quality of the product produced. Similarly, if what appears is a negative assessment, then quickly, as an entrepreneur, must evaluate yourself and improve it, to suit the wishes or taste of the customer.

6. Energetic activity

An entrepreneur must have a high spirit. This is needed to support all business activity processes that have been developed. Thanks to a high spirit, it can make an entrepreneur to find a variety of innovative ideas, so that it is easy to find a solution to a problem.

7. Orientation to the future

In planning a business, it is hoped not only for the short term, but should be oriented far into the future, not only a matter of time, but also a tendency towards innovation, also a tendency that is needed by the community at the time of this pandemic. Vision to be able to respond to events that appear, should also be owned by entrepreneurs.

8. Skills in organizing

Having an organizational system in a company is very important. An entrepreneur is expected to have skills in organizing a company. Even without employees in the beginning. But in its development, a business will definitely need employees as supporters of this business.

Organization in the company functions as a means of acceleration in achieving the target, besides that the organization also facilitates coordination between units, the division of tasks and authority, and minimizes the risk of internal conflict in the body of the company.

9. Attitude towards money

One of the yardsticks of success in running a business, is getting a large net profit. Meaning, an entrepreneur should use good and correct methods to obtain maximum profit. But what should not be forgotten, is the management of this profit, it is definitely money.

Profits from business results should be well managed. Don’t let it, It is undeniable that more profit is the desire of every entrepreneur. But it should also be noted in the management of money. Don’t let the profits that have been obtained be misused for bad things.

Such is the nature of entrepreneurship that can certainly support your success in running a business. In its development, types of entrepreneurship appeared, to respond to the needs and conditions that exist at the moment. Each entrepreneur has different nature and characteristics, so we need to dig more insight into the types of businesses that match the nature and characteristics of each entrepreneur.

Types of Entrepreneurs

There are at least 3 types of entrepreneurs that are popular in Indonesia and their examples.

1. Retail Business

Retail business is a type of business that never dies. This business is also referred to as direct retail sales to consumers. This business can be said to be a type of business with minimal risk, because the competition that occurs is only limited between retailers.

A popular retail business today is a network of minimarkets that number in the thousands, and are spread throughout Indonesia. Thus, it can be imagined, how much profit the manager gets every year?

However, building a retail business is not an easy thing, and requires guidance and the right way to be successful. There are organizational structures, financial management, supervision and handling of products, employees, and many more that become the success of a retail business. For Reader who are interested, the book entitled Sukses Berbisnis Ritel is the right choice to start learning everything about retail business.

 

2. Business Startup

The internet is no longer a luxury item. Internet network is a daily necessity. By using a smartphone, we can do economic activities, or business through our mobile phone. This is called the digital industry. In this time of pandemic, doing business through digital startups has become the most chosen method by business people, both on a home scale, up to those with a turnover of hundreds of millions of rupiahs per day.

Doing business in the era of Industry 4.0 is not an easy thing, where in achieving success from the time of establishing a Start-up to undertaking various efforts to become a unicorn must go through various processes. In the book entitled From A Startup To A Unicorn, E-Commerce And Digital Business by M. Suyanto, Reader will be given an overview of how to start the business.

One of the actors of this business model that has been successful in Indonesia is the business pioneered by our current education minister. Starting from an online transportation business, the business has now turned into a platform that provides many services for the community.

For example, the GO-JEK platform that was established in 2011 by Nadiem Makarim started his business from a start-up businessman until now, GO-JEK was able to reach the level of a unicorn, as well as Nadiem Makarim himself who was able to grow from a business owner and is now the Minister of Education and Indonesian culture.

If Reader is interested in understanding more about Nadiem Makarim’s success story, Nadiem Makarim’s book: From Business Start Up Level Unicorn to Walking to the Palace by Andhika Bayangkara can be the right choice.

 

3. Creative Industry

The government, in the last few years, has encouraged young people who have creativity, so that they can contribute to the creative industry in Indonesia. This industry purely relies only on the creativity of young people who are able to respond to opportunities that develop in accordance with the market’s wishes.

Various fields of business in the creative industry such as fashion designers, writers, copywriters, painters, designers, ghostwriters, article writers, and many more. The book titled Business Ideas for Freelancers in the Creative Industry by JUD – Jubilee Digital will help Reader in finding the most suitable business for you.

As information for you, businesses like this, the capital is relatively small, compared to other industries. This business does not have a specific framework, so the direction of this industry is freely developed according to the creativity of the products produced.

Sinaumedians, a pandemic that came suddenly, paralyzed many joints in human life, therefore, from that, an ability is needed that can systematically apply creativity and innovation in meeting needs, and be able to read opportunities in the market.

In line with the demands of very rapid change in this pandemic condition, a business is required to have superiority, equalization, and competition, so what is needed is the ability, as well as the insight to read what business opportunities are able to survive.

In responding to this pandemic, the discipline of entrepreneurship is developing naturally but quickly, small and medium enterprises, as well as micro, small and medium enterprises become the backbone of economic acceleration in our country.