Entrepreneurship

Entrepreneurship is when a person who aims at profit, and also accepts the risk of loss, puts their own money, property and knowledge to work to make goods or provide services; such a person is called an entrepreneur. In a market economy the ability to run a business is counted as the fourth factor of production, because it joins land and natural resources, capital and labour into one activity. Every business starts from a business idea, but the idea alone is not enough: it must be tested with a business plan based on calculations, and only then will a bank or partner trust it with money. Entrepreneurship has four types: production (making goods), trade (buying and selling at a higher price), financial (working with money and securities) and insurance (a guarantee to cover unexpected loss in return for payments). It creates new jobs, supplies consumers with goods and fills the state treasury with the taxes it pays. An entrepreneur should be hardworking, show initiative and responsibility, obey the law and compete fairly.