Entrepreneurship is the process of designing, starting and running a new company, which is often initially a little company. The men and women who create these businesses are known as entrepreneurs.

Entrepreneurship was described as the "capacity and willingness to develop, arrange and manage a company venture along with some of its dangers so as to make a profit". While definitions of entrepreneurship normally focus on the start and running of businesses, due to the large risks involved with establishing a startup, an important percentage of start-up companies have to close because of "lack of financing, poor business decisions, an economic crisis, lack of market demand--or a mixture of all these.

Entrepreneurship is the act of being an entrepreneur, or even "an owner or manager of a business enterprise who makes money through danger and initiative". Entrepreneurs act as managers and manage the launch and expansion of a venture. Entrepreneurship is the process by which an individual or a staff identifies a business opportunity and acquires and deploys the necessary resources required for its manipulation.

Early 19th century French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, stating that it "shifts economic resources from an area of lower and into a place of higher productivity and higher yield". Entrepreneurs create something fresh, something different--they change or transmute values. Regardless of the business size, big or small, they can partake in entrepreneurship opportunities. Four standards are required by the chance.

First, there needs to be opportunities or scenarios to recombine resources to generate profit. Second, entrepreneurship requires differences between individuals, such as accessibility to specific individuals or the ability to recognize details about opportunities. Third, taking on risk is a necessary. Fourth, the entrepreneurial process requires the organization of people and resources.

The entrepreneur is a element in microeconomics and also the study of entrepreneurship reaches to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries. However, entrepreneurship was mostly ignored theoretically until the late 19th and early 20th centuries and empirically before a deep resurgence in economics and business since the late 1970s. From the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter from the 1930s and other Austrian economists like Carl Menger, Ludwig von Mises and Friedrich von Hayek.

According to Schumpeter, an entrepreneur is someone who's willing and ready to convert a new idea or invention into a successful invention. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to substitute in whole or part poor innovations across markets and industries, simultaneously producing new products such as new business models. This way, creative destruction is largely responsible for its dynamism of industries and long-run financial development.

The supposition that entrepreneurship results in economic development is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited by Israel Kirzner suggests that nearly all innovations could be more incremental improvements such as the replacement of paper using plastic in the creating of drinking straws.