Enterprise (in business) is the process by which an entrepreneur capitalises on a business opportunity: from startup, to growth and eventually establishing a sustainable business.
Enterprise occurs when an entrepreneur fulfils a desire to build a commercial solution. To begin producing goods or providing a service to satisfy the needs of customers in the market.
Risk vs. Reward
Enterprises are for-profit. This means an enterprise must be financially self-sustaining (it funds itself). To begin with, the entrepreneur will take on personal risk to fund the startup phase out of their own pocket or attract borrowed money as startup capital.
Not all enterprises succeed. In fact, given the variety of risks involved in starting an enterprise, it is often more likely that an enterprise fails before becoming a sustainable business.
So, entrepreneurs take on the personal risk of financial loss, or liability in the event their enterprise fails before becoming established.
However, should an enterprise succeed, an entrepreneur has the potential to earn financial reward from the business’s profits.
Examples
An enterprise could be any business, of any size, complexity, and sector. For example, an enterprise could be a local plumber (a single person), or an international airline (with hundreds of employees).