Table of Contents

What Is An Enterprise?

Enterprise or business is an activity that is executed for a certain profit. It has the objective of earning money or profit. Enterprise has played a vital role to acquire prestige and in the subsistence of life. Enterprise is the physical activities or trade executed to accomplish a certain objective for livelihoods. The word ‘enterprise’ originated from the French language ‘entreprenant’. It means, taking a risk or performing bravely for any of the works. In simple correspondence, enterprise or business is any kind of work, trade, merchandise, or industry done for our livelihood. By establishing and operating an enterprise, people become self-employed and fulfill their socioeconomic needs. The use of skill and local raw materials helps to solve the unemployment problem and increase revenue and foreign currency.

Enterprise is not only an institution established to earn money or profit. The profit can be earned at such a time when the customers are satisfied by fulfilling their needs and desire through the goods and services produced by the enterprise. Thus, the needs, demands, and desires of the customers should be given high importance in this competitive age. The major objective of operating an enterprise is to make available goods and services in the market to fulfill the needs, demands, and desires of the customers. In the same way, businessmen or entrepreneurs can earn profit by selling their products (goods and services) competently. The products produced by enterprise help to improve the living standard of customers fulfilling their needs and desire. In an enterprise or business, entrepreneurs continuously ought to make available goods and services in the market considering the needs and desires of customers. That’s why the enterprise or business is the overall activity of making available goods and services in an accessible way to using optimum resources available locally to fulfill the needs and desires of the customer. For this, willingness, environment, labor, capital, raw materials, and the market are major influencing factors that are always associated with these activities.

What Is An Entrepreneurship?

The term ‘entrepreneurship’ comes with containing the word ‘entrepreneur’. To understand the meaning of entrepreneurship, there is a meaning of entrepreneur given in the Oxford Learner’s Dictionary. According to the dictionary, ‘’entrepreneur is the person who makes money by starting or running a business, especially when this involves taking financial risks.’’ From this, we can define that all activities done by a person or entrepreneur with investment capital and taking a risk to earn a profit is an enterprise whereas all of these activities executed by a person or entrepreneur throughout the business cycle is entrepreneurship. Enterprise doesn’t have meaning without entrepreneurship. Hence, both are complementary factors between each of other.

Entrepreneurship is a process of operating any new enterprise which involves creativity and innovations. A braveness of taking risks to make capable of acquiring a prize is expected in entrepreneurship. An alternative to the person’s self-employment has been considered by entrepreneurship. Moreover, entrepreneurship has always possibilities of employment not only for oneself but for others. In other words, dedication to the combination of acts, conduct, and endeavors encompassing the commencement, development, and expansion of enterprise is entrepreneurship. It keeps concerned with economic activities. It has the objective of acquiring wealth and profit through the exchange of goods and services. Similarly, entrepreneurship is establishing and running a new enterprise by collecting, combining, and managing land, building, instruments, tools, labor, technology, and raw materials. Entrepreneurship development is a continuous endeavor for the enterprise. It consists of such an endeavor: how to reduce product cost by mixing the means of production, how can increase the quality of products, and how to bring the market under its control.

As per the book ‘Entrepreneurship Development in Nepal’ written by Dr. Govinda Agrawal, ‘’entrepreneurship is the creative process of exploring opportunities by starting new venture through resource pulling, risk-taking, innovating and managing for rewards. It is a change from the present lifestyle.” Exploring new things is entrepreneurship. Innovation and the creation of new thought are also related to entrepreneurship, which renders motivations to use new and establish an enterprise. Innovation and creation are the major elements of entrepreneurship. However, all of these creations and innovations should obtain economic value to transform into entrepreneurship. It means economic earning and production must be there in entrepreneurship. It is also an economic institution because the mission of exploring new things is to be aligned with economic earning and wealth.

A company, corporation, fancy, and different profit-based institutions are under entrepreneurship. Entrepreneurship is also a game of uncertainty of risk. It is not sure to gaining always success in entrepreneurship. But it is sure too to achieve success through the planned road map with good strategy. Another importance this that it is impossible to be an entrepreneur without taking a risk. Possible risk has to be taken for the investment of capital, which should be calculated. Entrepreneurship can contribute to developing society and strengthening the economic growth of each person.

Operating micro, cottage, and small enterprise with calculated risks to achieve economic progress, and entrepreneurs’ knowledge, skills, and capability are called entrepreneurship. Entrepreneurship is considered a catalyst of economic development. Today, an entrepreneur has been improving their economic condition by involving in the development of entrepreneurship. Foreign currency is also entered into the country when entrepreneurship is developed in the country. Entrepreneurship prevents human beings from poverty, unemployment, disgracefulness, laziness, evil culture, etc. Entrepreneurship hugely contributes to the nation’s economic and overall development process with the fulfillment of necessary economic resources.

What Is An Industry?

Industry interprets any business, enterprise, trade, or, occupation, etc. which has been developing dynamically with evolving of human civilization. Any work would have been forcefully done at the beginning of human civilization whereas machinery technologies are used with human labor in this now modern age. The industry is an economic activity in which raw materials are refined and products are made available in the market for the customer. According to the business dictionary, “industry is a group of manufacturers or businesses that produce a particular kind of goods or services. A group of producers or businesses that produced any type of goods and services is called an industry that fulfills the demand, needs, and desires of customers. The industry is stratified based on its definition and position which is significantly different as per the country, region, age, environment, and, geography.

In the context of Nepal, meaning and policies about industry and commerce are defined in the sub-section ‘Gha’, section 51 (policies of state) under chapter four of the Constitution of Nepal 2072. In the same way, the Industrial Enterprises Act 2076 has clearly illustrated the definition and stratification of industry. All industries and businesses or enterprises are operated and regulated under the act in Nepal. The industries have been classified in section no 17 under chapter three of the act which is as follows.

a) Classification of Industry based on Fixed Assets Investment

I.Micro-industry: An industry or enterprise with the following conditions other than an industry requiring permission under section 8 is considered to be a micro-enterprise:

with the fixed capital not exceeding two million rupees, excluding house and land;
the entrepreneur himself or herself is involved in the operation and management of the industry;
with a maximum of nine workers including the entrepreneur;
with an annual transaction of fewer than ten million rupees;
with the capacity of electric energy, fuel, or another oil engine to be consumed by the engine, equipment, or machine, if any, used being twenty KW or less.

II.Cottage industry: An industry in the following condition is considered to be a cottage industry or enterprise:

based on traditional skills and technology;
labor-oriented and based on specific skills or local raw materials and local technology, arts, and culture;
with the capacity of electric energy to be consumed by the engine, equipment, or machine, if any, used being up to fifty KW;
any industry mentioned in Schedule 2.

III. Small industry: An industry with a fixed capital not exceeding one hundred fifty million rupees, other than a micro-enterprise and cottage industry;

IV. Medium industry: An industry or enterprise with a fixed capital exceeding one hundred fifty million rupees but not exceeding five hundred million rupees;

V. Large industry: An industry or enterprise with a fixed capital exceeding five hundred million rupees.

b) Classification of Industries based on products or Nature

1. Energy-based industry: Industries mentioned in Schedule 3 engaged in the business of energy generation;

2. Manufacturing industry: Industries manufacturing goods by using or processing raw materials, subsidiary raw materials, or semi-processed raw materials;

3. Agriculture and forest product-based industry: Industries mentioned in Schedule-4 manufacturing any goods from agriculture or forest product-based raw materials or related to agriculture or forest products;

4. Mining industry: Industries producing any metal or mineral substance other than metal by excavating or processing minerals;

5. Infrastructure industry: Industries mentioned in Schedule-5 building and operating physical infrastructures;

6. Tourism industry: Industries mentioned in Schedule-6 related to tourism services;

7. Information technology, communication technology, and information dissemination technology-based industry: Industries mentioned in Schedule-7 providing services of information, communication, or 20 information dissemination technology by using technology for the collection, processing, and dissemination of information;

8. Service industry: Industries mentioned in Schedule-8 producing or providing services.

Conclusion

Enterprise or business is an activity that has the objective of earning money or profit. Enterprise has played a vital role in acquiring prestige and in life’s subsistence. Enterprise is the physical activities or trade executed to accomplish a certain objective for livelihoods. People become self-employed and fulfill their socioeconomic needs by establishing and operating an enterprise. Using skills and local raw materials helps solve the unemployment problem and increase revenue and foreign currency.

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