ENTREPRENEUR

MEANING: An entrepreneur is one of the important segments of economic growth. Basically he is a person responsible for setting up a business or an enterprise. In fact he is one who has the initiative s!ill for innovation an" who loo!s for high achievements. #e is a catalytic agent of change an" wor!s for the goo" of people. #e puts up new green fiel" pro$ects that create wealth open up many employment opportunities an" lea"s to the growth of other sectors. The wor" %entrepreneur& is "erive" from the 'rench verb entrepren"re. It means ( to un"erta!e). In the early *+ th century the 'renchmen who organi,e" an" le" military e-pe"itions were referre" to as (entrepreneurs) Aroun" *.// A.0. the term was use" for architects an" contractors of public wor!s. The term ( entrepreneur) was applie" to business initially by the 'rench economist 1altillon in the *2 th century "esignate a "ealer who purchases the means of pro"uction for combining them into mar!etable pro"ucts. Another 'renchman 3.B. 4ay e-pan"e" 1antillon&s i"eas an" conceptuali,e" the entrepreneur as an organi,er of a business firm central to its "istributive an" pro"uction functions. Beyon" stressing the entrepreneur&s importance to the business 4ay "i" little with his entrepreneurial analysis. Accor"ing to 3.B.4ay an entrepreneur is the economic agent who unties all means of pro"uction the labour force of the one an" the capital or lan" of the other an" who fin"s in the value of the pro"ucts his results from their employment the reconstitution of the entire capital that he utili,es an" the value of the wages the interest an" the rent which he pays as well as profit belonging to himself. #e emphasi,e" the functions of co5 or"ination organi,ation an" supervision. 'urther it can be sai" that the entrepreneur is an organi,er an" speculator of a business enterprise. The entrepreneur lifts economic resources out of an area of lower into an area of higher pro"uctivity an" greater. The New Encyclopae"ia Britannica consi"ers an entrepreneur as ( an in"ivi"ual who bears the ris! of operating a business in the face of uncertainty about the future con"ition. As professor 3an Tin Bergen points out ( The best entrepreneur in any "eveloping country is not necessarily the man who uses much capital but rather the man who !nows how to organi,e the employment an" training of his employees. 6hoever concentrates on this is ren"ering a much more important service to his country than the man who uses huge capital. 3oseph A. 4chumpeter thus writes ( The entrepreneur in an a"vance" economy is an in"ivi"ual who intro"uces something new in the economy5 a metho" of pro"uction not yet teste" by e-perience in the branch

of manufacture concerne" a pro"uct with which consumers are not yet familiar a new source of raw material or of new mar!ets an" the li!e& Briefly an entrepreneur is one who innovates raises money assembles inputs chooses managers an" sets the organi,ation going with his ability to i"entify them. Innovation occurs through 7*8 the intro"uction of a new 9uality in a pro"uct 7:8 a new pro"uct7;8 a "iscovery of a fresh "eman" an" a fresh source of supply an" 7<8 by changes in the organi,ation an" management. New 1oncept of Entrepreneur = The term (entrepreneur) has been "efine" as one who "etects an" evaluates a new situation in his environment an" "irects the ma!ing of such a"$ustments in the economic system as he "eems necessary. #e conceives of an in"ustrial enterprise for the purpose "isplays consi"erable initiative grit an" "etermination in bringing his pro$ect to fruition an" in this process performs one or more of he following. Perceives opportunities for profitable investment E-plores the prospects of starting such a manufacturing enterprise >btains necessary in"ustrial licenses Arranges initial capital Provi"es personal guarantees to the financial institutions Promises to meet the shortfalls in the capital an" 4upplies technical !now5how. The term ( entrepreneur& is to be un"erstoo" in its totality an" not in a fabricate" manner. The term ( entrepreneur& can only be un"erstoo" with a bearing on economic psychological sociological an" cultural bearings. The social responsibility is essentially a part of entrepreneurial outloo! on life. 'ig?* Basics of an Entrepreneur
>R@ANI4ATI>N

UR@E 4BICC AI4I>N @R>6T#

INN>AATI>N RI4B ENTERPRI4E

DANA@EDENT

4o (Entrepreneurs are in"ivi"uals motivate" by a will for power special characteristics being an inherent capacity to select correct answers energy will an" min" to overcome fi-e" talents of thoughts an" a capacity to withstan" social opposition).

Characteristics of an entrepreneur: A successful entrepreneur must be a person with technical competence initiative goo" $u"gement intelligence lea"ership 9ualities self confi"ence energy attitu"e creativeness fairness honesty tactfulness an" emotional stability. Mental ability: Dental ability consists of intelligence an" creative thin!ing. An entrepreneur must be reasonably intelligent an" shoul" have creative thin!ing an" must be able to engage in the analysis of various problems an" situations in or"er to "eal with them. The entrepreneur shoul" anticipate changes an" must be able to stu"y the various situation un"er which "ecision have to be ma"e. Clear objectives: An entrepreneur shoul" have a clear ob$ectives as to the e-act nature of the goo"s to be pro"uce" an" subsi"iary activitie to be un"erta!en. A successful entrepreneur may also have the ob$ective to establish the pro"ucts to ma!e profit or to ren"er social service. Business secrecy: An entrepreneur must be able to guar" business secrets. Cea!age of business secrets to tra"e competitors is a serious matter which shoul" be carefully guar"e" against by an entrepreneur. An entrepreneur shoul" be able to ma!e a proper selection of his assistants. Human relations ability: The most important personality traits contributing to the success of an entrepreneur are emotional stability personal relations consi"eration an" tactfulness. An entrepreneur must maintain goo" relations with his customers if he is to establish relations that will encourage them to continue to patroni,e his business. #e must also maintain goo" relations with his employees if he is to motivate them to perform their $obs at a high level of efficiency. An entrepreneur who maintains goo" human relations with customers employees suppliers cre"itors an" the community is much more li!ely to succee" in his business than the in"ivi"ual who "oes not practice goo" human relations. #uman relations ability can also be referre" to as tactfulness. Fi : ! Characteristics of an Entrepreneur

ADMINISTRATIVE ADMINISTRATIVE TECHNICAL TECHNICAL KNOWLEDGE KNOWLEDGE ABILITY ABILITY ORGANISATION SKILL ORGANISATION SKILL

EFFECTIVE EFFECTIVE COMMUNICATION COMMUNICATION

INTELLIGENCE INTELLIGENCE

PUBLIC RELATIONS PUBLIC RELATIONS

EN"'E('ENE)' EN"'E('ENE)'

CREATIVITY CREATIVITY

EMOTIONAL STABILITY EMOTIONAL STABILITY

INNOVATION INNOVATION

SOUND KNOWLEDGE SOUND KNOWLEDGE BUSINESS SECRECY BUSINESS SECRECY

CLEAR OBJECTIVE CLEAR OBJECTIVE

Communication ability: 1ommunication ability is the ability to communicate effectively. @oo" communication also means that both the sen"er an" the receiver un"erstan" each other an" are being un"erstoo". An entrepreneur who can effectively communicate with customers employees suppliers an" cre"itors will be more li!ely to succee" than the entrepreneur who "oes not. "echnical #no$le% e: An entrepreneur must have a reasonable level of technical !nowle"ge. Technical !nowle"ge is the one ability that most people are able to ac9uire if they try har" enough. An entrepreneur who has a high level of a"ministrative ability mental ability human relation ability communication ability an" technical !nowle"ge stan"s a much better chance of success than his counterpart who possesses low levels of these basic 9ualities. &ome #ey characteristics of a successful entrepreneur are: Motivator: An entrepreneur must buil" a team !eep it motivate" an" provi"e an environment for in"ivi"ual growth an" career "evelopment. &elf confi%ence: Entrepreneurs must have belief in themselves an" the ability to achieve their goals.

*on term involvement: An entrepreneur must be committe" to the pro$ect with a time hori,on of five to seven years. No ninety5 "ay won"ers are allowe". Hi h ener y level: 4uccess of an entrepreneur "eman"s the ability to wor! long hours for sustaine" perio"s of time. (ersistent problem solver: An entrepreneur must have an intense "esire to complete a tas! or solve a problem. 1reativity is an essential ingre"ient. Initiative: An entrepreneur must have initiative accepting personal responsibility for actions an" above all ma!e goo" use of resource. Goal setter: An entrepreneur must be able to set challenging but realistic goals. Mo%ern ris# ta#er: An entrepreneur must be a mo"erate ris! ta!er an" learn from any failures. These personal traits go a long way in ma!ing an entrepreneur a successful man or woman.

C*A&&IFICA"I+N : The entrepreneur have been broa"ly classifie" accor"ing to the types of business use of professional s!ill motivation growth an" stages of "evelopment are "iscusse" below A. Entrepreneur according to the type of business:
ACCORDING TO THE TYPE OF BUSINESS BUSINESSENTREPRENEUR

TRADING ENTREPRENEUR INDUSTRIAL ENTRPRENEUR CORPORATE ENTREPRENEUR AGRICULTURAL ENTREPRENEUR RETAIL ENTREPRENEUR SERVICE ENTREPRENEUR

Business entrepreneur: Business entrepreneurs are in"ivi"uals who conceive an i"ea for a new pro"uct or service an" then create a business to materiali,e their i"ea into reality. "ra%in entrepreneur: Tra"ing entrepreneur is one who un"erta!es tra"ing activities an" is not concerne" with the manufacturing wor!. In%ustrial entrepreneur: In"ustrial entrepreneur is essentially a manufacturer who i"entifies the potential nee"s of customers an" tailors a pro"uct or service to meet the mar!eting nee"s.

Corporate entrepreneur: 1orporate entrepreneur is a person who "emonstrates his innovative s!ill in organi,ing an" managing corporate un"erta!ing. A ricultural entrepreneur: Agricultural entrepreneurs are those entrepreneurs who un"erta!e agricultural activities as raising an" mar!eting of crops fertili,ers an" other inputs of agriculture. B.Entrepreneur in technology:
ACCORDING TO THE USE OF TECHNOLOGY

TECHNICAL ENTREPRENEUR

NON TECHNICAL ENTRPRENEUR

PROFESSIONAL ENTREPRENEUR

HIGH TECH ENTREPRENEUR

LOW TECH ENTREPRENEUR

"echnical entrepreneur: A technical entrepreneur is essentially compare" to a (craftman).#e concentrates more on pro"uction than on mar!eting. #e "emonstrates his innovative capabilities in matter of pro"uction of goo"s an" ren"ering of services. Non, technical entrepreneur: Non5 technical entrepreneurs are those who are not concerne" with the technical aspects of the pro"uct in which they "eal. They are concerne" only with "eveloping alternative mar!eting an" "istribution strategies to promote their business. (rofessional entrepreneur- Professional entrepreneur is a person who is intereste" is establishing a business but "oes not have interest in managing or operating it once it is establishe". 4uch an entrepreneur is "ynamic an" he conceive new i"eas to "evelop alternative pro$ects.

C.Entrepreneur and Motivation:

ACCORDING TO THE MOTIVATION

PURE ENTREPRENEUR

INDUCED ENTREPRENEUR

MOTIVATED ENTREPRENEUR

SPONTANEOUS ENTREPRENEUR

(ure Entrepreneur: A pure entrepreneur is an in"ivi"ual who is motivate" by psychological an" economic rewar"s. In%uce% entrepreneur: In"uce" entrepreneur is one who is in"uce" to ta!e up an entrepreneurial tas! "ue to the policy measures of the government that provi"es assistance incentives concessions an" necessary overhea" facilities to start a venture. Motivate% entrepreneur: New entrepreneurs are motivate" by the "esire for self fulfillment. &pontaneous entrepreneur: These entrepreneurs start their business by their natural talents. /.Growth and entrepreneur:
ACCORDING TO THE GROWTH

GROWTH ENTREPRENEUR

SUPER GROWTH ENTREPRENEUR

Gro$th entrepreneur: @rowth entrepreneurs are those who necessarily ta!e up a high growth in"ustry which has substantial growth prospects. &uper ro$th entrepreneur: 4uper growth entrepreneurs are those who have shown enormous growth of performance in their venture. E.Entrepreneur and stages of development

ACCORDING TO THE STAGES OF DEVELOPMENT FIRST GENERATION ENTREPRENEUR MODERN ENTREPRENEUR

CLASSICAL ENTREPRENEUR

First eneration entrepreneur: A first generation entrepreneur is one who starts an in"ustrial unit by innovative s!ill.#e is essentially an innovator combining "ifferent technologies to pro"uce a mar!etable pro"uct or service. Classical entrepreneur: A classical entrepreneur is one who is concerne" with the customer an" mar!eting nee"s through the "evelopment of a self supporting venture. Entrepreneurial /evelopment Cycle
*.Entrepreneurial e"ucation :.Planne" publicity for entrepreneurial opportunities ;. I"entification of potential entrepreneurs through scientific metho" <. Dotivational training to new entrepreneurs E. #elp an" gui"ance in selecting pro"ucts an" preparing pro$ect reports. +.Da!ing available techno economic information an" pro"uct profits ..Evolving locally suitablenew pro"ucts an" processes 2.Availability of local agencies with traine" personnel for entrepreneurial counseling an" promotion. F.Recognition of entrepreneurial s!ills

simulator
Entr!pr!n!urial " "l!

support

*. :. ;. <. E. +. .. 2.

Registration of unit Arranging finance Provi"ing lan" she" power water etc @ui"ance for selecting an" obtaining machinery 4upply of scarce raw materials @etting licences G import licences Provi"ing common facilities @ranting ta- relief or other subsi"y

F.

>ffering management consultancy

*/. #elp mar!eting pro"uct

**. Provi"ing information.

sustaining

i. ii. iii. iv. v.

#elp mo"erni,ation #elp "iversification G e-pansion G substitute pro"uction A""itional financing for full capacity utili,ation 0eferring repayment G interest 0iagnostic in"ustrial e-tension G consultancy source

vi. vii. viii. i-.

Pro"uction units legislation G policy change Pro"uct reservation G creating new avenues for mar!eting Huality testing an" improving service Nee" base" common facility centre