Innovation: If a business activity does not require anything special to be done, it is not entrepreneurship. In fact a person cannot be called an entrepreneur unless he introduces something new, something different, in his venture. This is known as innovation, that is, doing something different from others. The entrepreneurs are constantly on the look out for something unique to fulfill the need or want of people. They may or may not be inventors of new products or new methods of production, but they are able to foresee the possibility of making use of the invention for business. Others who come to know about the same invention are not capable of thinking about its practical usefulness in business. Or, they may not have the ambition or self-confidence to take advantage of it.

Risk Bearing: Risk bearing is another aspect of entrepreneurship that every entrepreneur has to cope with. One who is an entrepreneur must be a risk taker, not a risk-avoider. In fact. starting a new business always involves risk because money is invested for profits in future. To try anything new is also risky. A new venture may not bring the expected profits or may fail and run into losses. It may happen because of increasing competition, a change in customer preferences, shortage of raw material supply, or sudden unexpected calamities. But an entrepreneur is bold enough to assume the risks. He is prepared to take risks for the reward. Even if he fails in one venture, he persists, and this helps him to succeed.