Entrepreneurship in Business

Entrepreneurship in Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Demonstrate knowledge and understanding about theories of entrepreneurship........................3
Analyse different nature of enterprise.........................................................................................5
Identify and analysis importance of an entrepreneurship in relation to individual, organization
and economy at large .................................................................................................................7
CONCLUSION .............................................................................................................................10
REFRENCES ................................................................................................................................11

INTRODUCTION
Entrepreneurship is that kind of process that has been used in order to build an business
or businesses. Such process involves designing, launching and running of a new business that
has to be formed. In other words entrepreneurship means formation of new business entity that is
required to be established by an individual or group of persons. Under it various things related to
business is included and elements to help in growth an success of a business is involved.
Entrepreneur has responsibility to develop a business and makes sure that profit with revenue is
generated. Also entrepreneur should seek solution that helps an business to achieve its goals and
objectives. Scope of entrepreneurship is wider as it deals with basic elements of business.
ALIBABA is the organization that has been taken in this file. Things to be covered in this file is
theories of entrepreneurship, nature of entrepreneurship and in the end importance of
entrepreneurship has to be covered.
MAIN BODY
Demonstrate knowledge and understanding about theories of entrepreneurship
Entrepreneurs are those individuals which run business with an aim of making profit and
faces challenges that comes in business formation. There are various theories that is related to
entrepreneurship and provide guidance over what an entrepreneur should do. Further theories
has been explained as follows:
Economic theory: These are one of the most important theory that has to be used by an
entrepreneur. Entrepreneurship and economic growth can only work together when economic
conditions are favourable. As entrepreneur plays an effective role in growth of economy by
contributing towards it. Under the theory various factors is included like industrial policy,
policies of taxation, financial and resource sources, availability of infrastructure, investment
opportunities, marketing opportunities. This theory works over these factors only when condition
of economy is being analysed in proper manner. So, ALIBABA is benefited from the theory in a
way that it is going to make contribution towards companies economy that makes the
organization in generating profit (Tyagi, Sengar and Kumar, 2018).
Sociological theories: This theory is based over success of entrepreneur with its impact
over social culture. It also deals with social factors like trends, taste and preference made by
customers. Under this theory various other factored that is social values, customs, taboos,

religious beliefs and other activities related to culture is covered. ALIBABA is benefited form
the theory in a way that in order to expand business all elements existing within society is to be
analysed in order to know about it.
Innovation theory: This is also considered to be one of the most important theory that is
used in order to make sure that innovation is being done within an organization. An entrepreneur
does not merely conduct business to better their lives alone. Instead through there activities they
make development within a business possible. This theory has been formed by an entrepreneur
that helps in bringing creativity in business. Innovation is brought when an new product or
service has to be launched and it makes customer attraction to be possible. Other aspect of the
theory is that growth and profit has to be achieved. For such purpose only production method has
to be used. As per the theory production method has lead over reduction in cost that increases
goods to be manufactured. So, ALIBABA is required to enter into new market then this theory
can be used. Innovation helps in making an organization like ALIBABA to be developed itself
within market and opportunities are identified. This makes an organization like ALIBABA to
develop various sources and makes availability of raw material possible this helpful for
developing base with other bigger entities. Establishment of organization are also aspects of
entrepreneurs being innovators. These activities of an entrepreneur lead to the creation of jobs
and accessibility of commodities (Schaltegger, Lüdeke-Freund and Hansen, 2016).
Psychological theory: As per this theory an entrepreneur is required to make growth in
society and has various individual that is necessary to develop psychological characteristics.
These characteristics has been included over vision and is being able to face opposition and
needed to achieve by them. In this theory traits during up brining and reliant with dominance.
ALIBABA is being uses this theory to develop Psychological factors that has been used for
making development of employee possible. Also these factors makes motivation possible within
the employees. ALIBABA uses these factors to achieve success within market and make sure
that efficiency within employees is to be developed which makes growth of organization
possible within market.
Resources theory: In this an entrepreneur is required for making resources to be
arranged in order to make business organization to be achieved. Resources are considered to be
one of the most important factor that has to be generated to make production possible. Capital
has been enabling an entrepreneur for making growth to be achieved. Various other aspects that