What is the definition of entrepreneurship?

• A. The process of avoiding financial risks
• B. A way to manage an established business
• C. The process of starting a new business while managing risk
• D. Only the act of investing in stocks

Answer: (C)

Entrepreneurship is defined as the process of starting a new business while managing risk. This definition captures the essence of what entrepreneurs do: they identify opportunities in the market, develop a business idea, and take the necessary steps to turn that idea into a viable business. This journey inherently involves risk management, as entrepreneurs must navigate financial uncertainties and market fluctuations while striving to grow their ventures.

Managing risk is a crucial aspect of entrepreneurship because it allows business owners to make informed decisions, adapt to changing conditions, and increase their chances of success. Entrepreneurs often invest their own resources—time, money, and effort—into their ventures, which requires them to assess potential risks and rewards carefully.

The other options do not encompass the full scope of entrepreneurship. For instance, avoiding financial risks does not reflect the proactive and innovative spirit of entrepreneurs, as they are often known for taking calculated risks to achieve their goals. Similarly, managing an established business is more closely related to management rather than entrepreneurship, which is fundamentally about creation and innovation. Investing in stocks, while it may involve some entrepreneurial elements, does not represent entrepreneurship in its broader context of starting and growing a business. Thus, the chosen definition accurately reflects the comprehensive nature of entrepreneurship.