Entrepreneurs are the risk-takers in the business world. They identify a gap in the market and found a company to produce a product or service that fills that gap. Entrepreneurs often risk their own capital in starting businesses. Many academic institutions offer courses in entrepreneurship that aim to give students the skills and knowledge required to become successful in business. Some of the skills can also be applied in non-work settings.
A primary objective of entrepreneurship education is to give students the necessary skills and knowledge to start a business. This can cover a wide variety of topics, from business law and financial literacy to management principles and IT aptitude.
Entrepreneurship, with its focus on the individual being able to take responsibility for a business venture, seeks to empower people. Fulfilling the objective of instilling self-confidence, entrepreneurship education enables individuals to take control of their employment prospects and teaches them not to be dependent on others. It can be particularly empowering for women in societies where they are not traditionally seen as economic providers.
A further goal of entrepreneurship training is to help people think creatively. Creative skills can help aspiring entrepreneurs identify possible opportunities and formulate plans to exploit them. This has the knock-on effect of increasing diversification in the marketplace. Diversification helps strengthen the economy by making it less reliant on a small number of industries. For instance, without diversification, an economy dependent on mining would be unstable given that natural resources diminish and can run out.
Teamwork and leadership
Another goal of entrepreneurship education is to enable the individual to lead a team and work as part of it. Education teaches students to recognise the contributions team members can make, and how effective leadership can motivate performance. The skill of getting along with people has positive benefits outside of the business world, such as in community initiatives.
Staring a business will involve a degree of uncertainty. Often entrepreneurs create a product or service that is new to the market, and consumer reaction can never be relied upon. Additionally, entrepreneurs can never be sure when a venture will begin to turn a profit. Entrepreneurship training aims to arm individuals with the ability to handle uncertainty.
Small and medium-sized businesses employ large numbers of people in many countries, both developed and developing. Entrepreneurship education has the objective of creating more businesses in an economy, and in so doing, creating more jobs.