Venture Capitalism / Entrepreneurship

Venture Capitalism / Entrepreneurship

With the passage of time, every aspect of life deals with new inputs to it. Sometimes it flourishes with it and sometimes it gives losses. The same happens with the world of finance and emerging sciences. The act of bringing innovation, financing and setting business in an effort to transform innovations and ideas into economic goods, is referred as entrepreneurship.

Entrepreneurial activities differ depending on the idea, type of organization and creativity involved. Entrepreneurship is mostly understood to be related to starting new businesses but it may also be part of growing or changing mature organizations. In recent years, the term has been extended to include social entrepreneurship, political entrepreneurship and knowledge entrepreneurship. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.

Entrepreneurship ranges in scale from solo projects to major undertakings creating many job opportunities. Many entrepreneurial ideas seek venture capital or angel funding (seed money) in order to raise money to stand the business. Venture capital is the money made available for investment in innovative enterprises or research, in which both the risk of loss and the potential for profit may be considerable. It is also called risk capital.

Angel investors finance the entrepreneurial activity and in return seek annualized increase in returns and with it more business involvements. Therefore many such funding organizations now work at government and private basis to invest in science, business, and other ideas.

According to Frank H. Knight (1921) entrepreneurship is about taking risk. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture.

Entrepreneurs have many of the same character traits as leaders. Few of the required things to set up a business are a good research, individual’s passion and belief in the idea to make it acceptable to other and for himself to be motivated, the requirements in the prevailing markets and to always be able to switch to better ideas to fix up the losses without harming further.

Therefore for stronger society to live in entrepreneurship should be integrated in to education systems and national campaigns. As we always have to put a safer part of today at risk for a better and much safer tomorrow.

Contributed By: Mohammad Ali Zia

Roll#: 11K – 3008

MS – SPM (SPRING – 2012),

Academic Writing (ACAD)