---
title: "Entrepreneurship and its characteristics"
subject: "Organization and Management"
chapter: 8
key: "semester_7/organization_and_management:entrepreneurship-characteristics"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/entrepreneurship-characteristics
site: BCT Engineering
---

# Entrepreneurship and its characteristics

Organization and Management · Chapter 8: Motivation, Leadership and Entrepreneurship

- Asked in: 2074 Asoj, 3+5 marks; 2069 Chaitra, 3+5 marks; year not given (asked 2 times)
- Video: [What is Entrepreneurship? definition, characteristics and entrepreneurial process](https://www.youtube.com/watch?v=MdNNGfoxrqA) — Key Differences
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/entrepreneurship-characteristics
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-8

## Question

Define the term entrepreneurship. Explain the characteristics of entrepreneurship.

## Short answer

Entrepreneurship is the process of identifying opportunities, organizing resources, and bearing risk to create a new enterprise for profit and growth. Its characteristics include innovation, risk-taking, opportunity seeking, creativity, resource organization, leadership, self-confidence, persistence, need for achievement, and adaptability.

## Answer

#### Entrepreneurship
Entrepreneurship is the process of identifying business opportunities, organizing resources (money, people, materials) and bearing the risk to create and run a new enterprise for profit and growth. The person who does so is an entrepreneur. It involves innovation, risk-taking and management. Examples in Nepal: the founders of F1Soft, Khalti, Foodmandu and Chaudhary Group.

#### Characteristics of entrepreneurship
1. **Innovation:** Introducing new products, methods or markets, rather than copying.
2. **Risk-taking:** Willingness to accept uncertainty and possible loss.
3. **Opportunity seeking:** Identifies needs and gaps in the market.
4. **Creativity and vision:** Imagines new ideas and long-term goals.
5. **Organizing resources:** Brings together capital, labour and technology.
6. **Leadership and management ability:** Guides the team and runs operations.
7. **Self-confidence and independence:** Believes in own ability; wants autonomy.
8. **Hard work and persistence:** Remains committed despite failures.
9. **Need for achievement:** Motivated by results more than by money alone.
10. **Decision making:** Quick and sound judgement.
11. **Profit orientation and growth** of the enterprise.
12. **Social contribution:** Creates jobs and wealth and supports the national economy.
13. **Adaptability** to change and learning from mistakes.

Entrepreneurship is a dynamic process rather than a one-time act, and it needs support such as capital, policy and skills.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Entrepreneurship is the process of:
   A. Working as a salaried employee
   B. Identifying opportunities, organizing resources and bearing risk to create and run an enterprise
   C. Only investing money
   D. Government planning
   Answer: B. It involves identifying opportunity, organizing resources and bearing risk to create a new enterprise. (Key point: Definition)

2. What does innovation mean here?
   A. Copying existing products
   B. Avoiding change
   C. Introducing new products, methods or markets
   D. Reducing risk to zero
   Answer: C. Innovation is introducing new products, methods or markets rather than copying. (Key point: Innovation)

3. What is risk-taking in entrepreneurship?
   A. Willingness to accept uncertainty and possible loss
   B. Avoiding all loss
   C. Gambling blindly
   D. Relying on others
   Answer: A. Entrepreneurs accept uncertainty and possible loss. (Key point: Risk-taking)

4. What motivates an entrepreneur with a high need for achievement?
   A. Results more than money alone
   B. Money only
   C. Job security
   D. Close supervision
   Answer: A. Such people are driven by results rather than just money. (Key point: Need for achievement)

## Related in Organization and Management

- [Define entrepreneurship](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aentrepreneurship-define) — Organization and Management, chapter 8

## Related in other subjects

- [Identify device from S-matrix with S22 term](https://www.bctengineer.com/question.md?key=semester_7%2Frf_and_microwave_engineering%3Aidentify-device-s-matrix-s22) — RF and Microwave Engineering, chapter 4
- [Characteristics of successful entrepreneurs](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Acharacteristics-of-entrepreneurs) — Entrepreneurship Development, chapter 1