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

# Define entrepreneurship

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

- Asked in: 2070 Asar, 3 marks; year not given
- 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-define
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-8

## Question

Define the term entrepreneurship.

## Short answer

Entrepreneurship is the process of identifying a business opportunity, organizing resources, and taking risks to create a new venture that delivers profit and value. It entails innovation, creativity, and management.

## Answer

Entrepreneurship is the process of identifying a business opportunity, bringing together resources such as capital, labour and technology, and taking the risk to start and run a new enterprise in order to earn profit and create value. It involves innovation, risk-taking, creativity and management. According to Schumpeter, the entrepreneur is an innovator who introduces new combinations of production.

Entrepreneurship therefore means:
- spotting opportunities,
- being innovative,
- accepting calculated risk,
- organizing and managing the enterprise, and
- creating wealth and employment.

Example: A young Nepali who starts an online delivery startup, or a software firm like F1Soft that built digital payments, is practising entrepreneurship. It contributes to economic growth by creating employment, technology and income.

## Check yourself

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

1. Entrepreneurship is best defined as:
   A. Managing an existing government office
   B. Identifying an opportunity, gathering resources and taking risk to start and run a new enterprise
   C. Working for a fixed salary
   D. Lending capital for interest
   Answer: B. It is the process of spotting opportunity, organising resources and bearing risk to create value. (Key point: Definition)

2. According to Schumpeter, the entrepreneur is:
   A. A risk-bearing capitalist
   B. An innovator who introduces new combinations of production
   C. A manager of routine operations
   D. A government planner
   Answer: B. Schumpeter emphasised innovation through new combinations. (Key point: Schumpeter)

3. Which is NOT part of what entrepreneurship means per the answer?
   A. Accepting calculated risk
   B. Spotting opportunities
   C. Creating wealth and employment
   D. Avoiding innovation to stay safe
   Answer: D. Innovation is central; avoiding it contradicts the definition. (Key point: Contribution)

## Related in Organization and Management

- [Entrepreneurship and its characteristics](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aentrepreneurship-characteristics) — Organization and Management, chapter 8, asked 2×