1.1. Introduction to entrepreneurship

Based on Volkmann, Tokarski and Grünhagen book of “Basic Principles of Entrepreneurship. Entrepreneurship in a European Perspective” (2010), entrepreneurship is the ability to develop, organise, start and run a new business enterprise in order to make a profit while taking into account any uncertainties or risks that may arise. It is considered the process by which individuals or a group of individuals (entrepreneurs) exploit a commercial opportunity, either by bringing a new product or process to the market, or by substantially improving an existing good, service, or method of production. According to Casson (2003), the definition “Entrepreneur consists of an English derivation of the French word ‘entreprendre’ which means to undertake and refers to an individual who creates a new business”. In other words, an entrepreneur is commonly seen as an innovator, a source of generating new ideas, goods, services and procedures in order to lead a business venture and gain maximum benefit.  The business formed by an entrepreneur or a group of entrepreneurs which is used to coordinate the process of entrepreneurship under a common ownership structure is known as Start-up. The entrepreneur is an integral part of the operation, who builds and deploys the other functions of the operations i.e. labour, land, and capital and who later in the future becomes a businesswoman.

Based on Investopedia, it is important for an entrepreneur to create a business plan, hire employees, acquire resources and financing, and provide leadership and management for the business. More specifically, a business plan is considered an important document used to attract investment before a company has established a proven track record. Developing a business plan defines the way for companies to keep themselves on target going forward, as they are meant to be reviewed and updated periodically to examine whether the business goals have been met or have changed and evolved. Sometimes, a new business plan is created for an established business that has decided to move in a new direction.