The term 'entrepreneurship' is derived from the French word 'enterprendre', which means 'to undertake'. It refers to the activity undertaken by an individual, known as an entrepreneur, who foresees a business opportunity. At its core, entrepreneurship is a mindset—a way of thinking and acting. It is about imagining new ways to solve problems and create value, involving the ability to recognise and methodically analyse an opportunity to ultimately capture its value.

Entrepreneurship is widely regarded as the best way to augment the growth of an economy. Entrepreneurs have played a significant role in developing some of the best economies of the world, such as those of USA and Japan, as well as in India. They act as the prime movers of innovation and introducers of new products into the market, playing a key role in improving the lives of societies.

The importance of entrepreneurship can be enumerated as follows: (a) They help in capital creation by bringing together the resources of the people. (b) They are pivotal employment creators; by creating employment opportunities, the standard of living and purchasing power of people increases. (c) They help in developing the total community by diversifying employment, which promotes stability and a higher quality of community life.

Furthermore, entrepreneurship is regarded as a panacea for the unemployed in an economy. Self-employment empowers an individual and helps in bringing about social change for community development.