The creation or extraction of value can be broadly characterised as entrepreneurial activity. With this concept, entrepreneurship is seen as a type of transformation that can involve more than just economic values. According to some more specific definitions, entrepreneurship is the process of creating, launching, and operating a new company—often at first a small one—or it is the “ability and willingness to develop, organise, and manage a business venture along with any risks it may have in order to make a profit.” Entrepreneurs are frequently used to describe the persons who start these businesses. Although most definitions of entrepreneurship centre on starting and operating firms, because starting a business is so risky, many start-ups fail because of “lack of money, poor business judgments, an economic crisis, lack of market demand, or a combination of all of these.”
Particularly in the realm of economics, the phrase is occasionally used with a slightly broader definition. An entity that can identify and seize opportunities to transform inventions or technologies into goods and services is referred to as an entrepreneur in this context: “The entrepreneur is able to recognise the commercial potential of the invention and organise the capital, talent, and other resources that turn an invention into a commercially viable innovation.” In this sense, “entrepreneurship” refers to both identical actions carried out by new enterprises as well as creative activity by incumbent businesses. However, the concept is still limited because it continues to centre on the production of economic (commercial) value.