ENTREPRENEURSHIP & VENTURE CAPITAL

In the era of 21^st century, the Entrepreneurship has broader terms. At the earliest, dating from the eighteenth century, it was an economic term defining the process of bearing the risk of buying at certain prices and selling it at uncertain prices. Later on the ‘term’ is specifically defined by including the concept of bringing together the factors of production. Now think in your mind as this definition led to a question whether there was any unique entrepreneurial function or whether it was simply a form of management. Bringing down the concept of innovation, the new definition can be a process that involves market innovation, product innovation, factor innovation, and even organizational innovation. Later definitions described entrepreneurship as involving the creation of new enterprises and that the entrepreneur is the founder.

A person so called Entrepreneur with a brilliant idea can change ‘Everything’ in world. Referencing from Peter Killby once compared entrepreneurship to the imaginary animal, the Heffa-lump:

It is a large and important animal which has been hunted by many individuals using various ingenious trapping devices ... All who claim to have caught sight of him report that he is enormous, but they disagree on his particulari-ties. Not having explored his current habitat with sufficient care, some hunters have used as bait their own favorite dishes and have then tried to persuade people that what they caught was a Heffalump.

An entrepreneur is an individual who accepts financial risks and undertakes new financial ventures. The word derives from the French "entre" (to enter) and "prendre" (to take), and in a general sense applies to any person starting a new project or trying a new opportunity.

On the other side, Venture Capital is a form of ‘Capital Risk’. The Capital Risk is invested as shares (equity) rather than as a loan and the investor requires a higher "rate of return" to compensate him for his risk. Venture capital allows for long term and committed share capital to help the un-raised companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalize a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender.

In the last few years the entrepreneurial class in Pakistan has been on the rise. This trend has been recognized by the media both in Pakistan and abroad as well as by quite a few bloggers. The interesting thing is that the trend of rising entrepreneurship continues despite of the growing political challenges and unstable business environment.

REFERENCES:

1. Emerging Entrepreneurship in Pakistan
2. Defining Entrepreneurship by Paul Di-Masi
3. Venture Capital by  Entrepreneurship Law Editorial Team