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DIFFERENT CHARACTERISTICS OF ENTREPRENEURSHIP AND WAGE EMPLOYMENT

              Entrepreneurship is about starting and managing a business while handling any risks that come with it, to
              make a profit. An entrepreneur takes these risks to earn money from their business.
              To better understand entrepreneurship, we need to know what profit and risk mean:
                 Profit:  It  is the  money  you  make  from your  business after  covering  all your  costs and  expenses.  For
                 example, if you start a lemonade stand and spend `100 on lemons and sugar, but you earn `300 from
                 selling lemonade, your profit would be `200.

                 Risk: It refers to the uncertainty or chance that you might lose money or face other problems. For example,
                 imagine you start a home-based online craft store and invest  `200 in materials to create handmade
                 jewellery. There’s a risk that your website might have technical issues or that people might not find your
                 store online, which could lead to fewer sales and a potential loss of money.
              Entrepreneurship involves dealing with such risks, but successful  entrepreneurs are willing to take these
              calculated risks. They carefully plan and make smart decisions to manage potential problems. Even if they
              encounter challenges or setbacks, they learn from their experiences and keep working towards their goals
              until they succeed.

              Characteristics of Entrepreneurship
              Some of the distinguishing characteristics of entrepreneurship are explained below:

                 Ability  to Take Risks: Entrepreneurs are  willing to  take calculated  risks to  achieve their  goals. They
                 understand that starting and running a business involves uncertainty and potential challenges.
                 Hard Work and Discipline: Successful entrepreneurs are known for their dedication and strong work
                 ethic. They consistently put in effort and stay focused on their business tasks.
                 Adaptability and Flexibility: Entrepreneurs can change their plans and strategies when needed. They are
                 open to new ideas and can adjust to meet customer needs and improve their business.

                 Knowledge  of Products and Market Demand:  Entrepreneurs have  a  good  understanding  of  their
                 products or services and know what customers want. They keep up with market trends and demands to
                 make sure their offerings are relevant.
                 Financial Literacy and Money Management: Entrepreneurs are skilled at handling finances. They know
                 how to budget, plan, and manage money to keep their business running smoothly and profitably.
                 Effective Planning and Execution:  Entrepreneurs are  good  at  creating  detailed  plans  and  following
                 through with them. They set clear goals and work systematically to achieve them.

              Common Reasons for Business Failures

              Have you ever seen a shop or business close suddenly in your neighbourhood? It might be helpful to think
              about why it happened:
                Quality of Goods or Services: Did the business offer products or services that were of poor quality? If
                 customers were unhappy with what they received, they might have stopped buying from that business.

                 Market Demand: Was the business selling things that people in the area didn’t need or want? If the
                 products or services were not in demand, the business might not have made enough sales.
                 Opportunity: Did the business owner miss a chance to make improvements or take advantage of a good
                 opportunity? Not spotting the right opportunities can lead to failure.





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