Entrepreneurship provides several important benefits to society. It creates new jobs, drives innovation through new products and technologies, and improves standards of living. Successful entrepreneurship also supports community development and research. To exploit an entrepreneurial opportunity, one must develop a business plan, hire resources like employees, acquire financial backing, provide leadership, and be willing to take risks. A supportive entrepreneurship ecosystem includes government programs, non-profits providing advice, advocacy groups, incubators, education, and access to financing.

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LESSON 2: IMPORTANCE OF ENTREPRENEURSHIP
 Creation of Employment- Entrepreneurship generates employment. It provides
an entry-level job, required for gaining experience and training for unskilled
workers.
 Innovation- It is the hub of innovation that provides new product ventures,
market, technology and quality of goods, etc., and increase the standard of living
of people.
 Impact on Society and Community Development- A society becomes greater if
the employment base is large and diversified. It brings about changes in society
and promotes facilities like higher expenditure on education, better sanitation,
fewer slums, a higher level of homeownership. Therefore, entrepreneurship assists
the organisation towards a more stable and high quality of community life.
 Increase Standard of Living- Entrepreneurship helps to improve the standard of
living of a person by increasing the income. The standard of living means, increase
in the consumption of various goods and services by a household for a particular
period.
 Supports research and development- New products and services need to be
researched and tested before launching in the market. Therefore, an entrepreneur
also dispenses finance for research and development with research institutions
and universities. This promotes research, general construction, and development
in the economy.
What to do in order to exploit an entrepreneurial opportunity
1. Developing a business plan- A business plan is a formal written document containing
business goals, the methods on how these goals can be attained, and the time frame
within which these goals need to be achieved.
-It also describes the nature of the business, background information on the organization,
the organization's financial projections, and the strategies it intends to implement to
achieve the stated targets.
-In its entirety, this document serves as a road map that provides direction to the
business.
-Written business plans are often required to obtain a bank loan or other kind of
financing.
2. Hiring the human resources-Human resources is the set of the people who make up
the workforce of an organization, business sector, industry, or economy. A narrower
concept is human capital, the knowledge which the individuals embody. Similar terms
include manpower, labour, personnel, associates or simply people.
A human-resources department (HR department) of an organization performs human
resource management, overseeing various aspects of employment, such as compliance

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with labor law and employment standards, administration of employee benefits,
organizing of employees files with the required documents for future reference, and some
aspects of recruitment and employee off boarding.
3. Acquiring financial and material resources
Here's an overview of typical sources of financing for start-ups:
 Personal investment. When starting a business, your first investor should be
yourself—either with your own cash or with collateral on your assets. ...
 Venture capital – where members of public are called upon to buy shares
 Angels- An angel investor (also known as a private investor, seed investor or angel
funder) is a high net worth individual who provides financial backing for small
startups or entrepreneurs, typically in exchange for ownership equity in the
company. Often, angel investors are found among an entrepreneur's family and
friends.
 Business incubators- Business incubation programs are often sponsored by private
companies or municipal entities and public institutions, such as colleges and
universities. Their goal is to help create and grow young businesses by providing
them with necessary support and financial and technical services.
- Incubators provide numerous benefits to owners of startup businesses. Their
office and manufacturing space is offered at below-market rates, and their staff
supplies advice and much-needed expertise in developing business
and marketing plans as well as helping to fund fledgling businesses.
 Government grants and subsidies.
 Friends and Family
 Bank Financing.
4. Providing leadership
5. Be responsible for both the venture's success or failure
6. Risk aversion
Elements of entrepreneurship Ecosystem/environment
 Government programs and services that promote entrepreneurship and support
entrepreneurs and start-ups
 Non-governmental organizations such as small-business associations and
organizations that offer advice and mentoring to entrepreneurs (e.g. through
entrepreneurship centers or websites)
 Small-business advocacy organizations that lobby governments for increased
support for entrepreneurship programs and more small business-friendly laws and
regulations

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 Entrepreneurship resources and facilities (e.g. business incubators and seed
accelerators)
 Entrepreneurship education and training programs offered by schools, colleges and
universities
 Financing (e.g. bank loans, venture capital financing, angel investing and
government and private foundation grants)