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Entrepreneur
Innovates
Bears Risk
Organises
Factors of
Production
What is Entrepreneurship?
Entrepreneurship is more than simply starting a business. The definition of entrepreneurship is a
process through which individuals identify opportunities, allocate resources, and create value. This
creation of value is often through the identification of unmet needs or through the identification of
opportunities for change.
Entrepreneurs see problems as opportunities, then take action to identify the solutions to those
problems and the customers who will pay to have those problems solved.
Entrepreneurial success is simply a function of the ability of an entrepreneur to see these opportunities in
the marketplace, initiate change (or take advantage of change) and create value through solutions.
Entrepreneurship is the propensity of mind to take calculated risks with confidence to achieve a predetermined business or industrial objective. In substance, it is the risk taking ability of the individual,
broadly coupled with the correct decision-making.
The capacity to take risk independently and individually, with a view to making profits and seizing an
opportunity to make more earning in the market-oriented economy, is the dominant characteristic of
modern entrepreneurship.
To conclude, entrepreneurship refers to a process of action an entrepreneur undertakes to establish his/her
enterprise. It is a creative and innovative response to the environment. It refers to a cycle of actions to
further the interests of the entrepreneur. Entrepreneurship is a composite skill, the resultant of a mix of
many qualities and traits. These include imagination, readiness to take risks, ability to bring together and
put to use other factors of production land, labor and capital.
Entrepreneur
Person
Entrepreneurs
hip
Enterprise
Process of action /
quality
Object / Entrepreneurial
Stuf
An entrepreneur takes substantial risk in being the owner and operator of a business with expectations
of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur
is an individual employed by an organization for remuneration, which is based on the financial success
of the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as
conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will
reveal the gap between the philosophy of the organization and the employee. If the organization
supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up
his own business.
Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, John
Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were
frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to
begin their own business. Currently, Adobe has an annual turnover of over $3 billion.
Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take risk and
creativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity to
take calculated risk and to accept failure as a learning point.
An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the
organization. Intrapreneurship is a novel way of making organizations more profitable where
imaginative employees entertain entrepreneurial thoughts. It is in the interest of an organization to
encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent
themselves and improve performance.
In a recent study, researchers compared the elements related to entrepreneurial and intrapreneurial
activity. The study found that among the 32,000 subjects who participated in it, five percent were
engaged in the initial stages of a business start-up, either on their own or within an organization. The
study also found that human capital such as education and experience is connected more with
entrepreneurship than with intrapreneurship. Another observation was that intraptreneurial startups
were inclined to concentrate more on business-to-business products while entrepreneurial startups
were inclined towards consumer sales.
Another important factor that led to the choice between entrepreneurship and intrapreneurship was
age. The study found that people who launched their own companies were in their 30s and 40s. People
from older and younger age groups were risk averse or felt they have no opportunities, which makes
them the ideal candidates if an organization is on the look out for employees with new ideas that can
be pursued.
Entrepreneurship appeals to people who possess natural traits that find start ups arousing their
interest. Intrapreneurs appear to be those who generally would not like to get entangled in start ups
but are tempted to do so for a number of reasons. Managers would do well to take employees who do
not appear entrepreneurial but can turn out to be good intrapreneurial choices.
Examples of Intrapreneurs:
A lot of companies are known for their efforts towards nurturing their in-house talents to promote
innovation. The prominent among them is Skunk Works group at Lockheed Martin. This group formed
in 1943 to build P-80 fighter jets. Kelly Johnson was the director of the project, a person who gave
14 rules of intrapreneurship.
At 3M employees could spend their 15% time working on the projects they like for the betterment of
the company. On the initial success of the project, 3M even funds it for further development.
Entrepreneur
Intrapreneur
has
wheels in motion.
the
operational
skills
of
running
the
inside entrepreneur
Not every small business needs an Entrepreneur
the
seed
of
business
idea
needs
an
from
his
of
opportunity,
Article
Your small business needs effective leadership. Possibly your most important asset
besides your product is your intrapreneur.
You have decided that you areentrepreneur not intrapreneur. Your business needs an intrapreneur
the entrepreneur inside the business. But how can you identify such a key component of your team?
You cant aford to get this one wrong.
To help, I have highlighted 30 ways to spot an intrapreneur, those key traits which mark him out as
the special one, the one that your business cant do without.
An Intrapreneur
is consistent
preaches empowerment
understands that if you never fail, youre not pushing the boundaries hard enough
Entrepreneur
Manager
Venture
Risk Bearing
An
entrepreneur
assumes
risk
of
any risk.
Reward
Contintuity
Entrepreneurial
activities
are
discontinuous appearing to initiate
changes in the production process and
then disappearing utile the change is
initiated.
Innovation
Status-role
Prerequisites
A
manager
needs
distinct
qualifications such as knowledge of
human behavior, management theory
etc.
Entrepreneurship involves mobilizing the resources and combining them to initiate change in
production. On the other hand, management involves combining and coordinating the resources for
production.
An entrepreneur has to have certain cultivated and inherent qualities in him or her in
order to make a success of his or her venture. Not any person can be a successful
businessman or woman. Hard work and determination to win have made many
successful business people to reach their aspired goals.
Personal competencies of a successful businessman or woman
Risk-taking Business involves many risks, which a business person must not
hesitate to take. Lot of financial involvement is there and obviously one has to
be careful with investments. Yet risks have to be taken in money matters as
well. Sometimes a businessman may lose out on his or her venture, but when
he or she make a success of it then he or she has much to gain, both financially
and from a personal satisfaction point of view.
Economic Activity
Creative activity
Purposeful activity
A function of risk bearing
An organizing function
Gap filling function
Dynamic process
Innovative function
2. Risk Taking
3. Organisation Building
4. Perceiving Market Opportunities
5. Gaining Command over scarce resources
6. Purchasing inputs
7. Marketing products
8. Dealing with Bureaucrats
9. Managing HR within the firm
10.
Managing customer and supplier relations
11.
Managing finance
12.
Acquiring and overseeing assembly of the factory
13.
Upgrading process and product
14.
Introducing new production techniques and products
FACTORS AFFECTING ENTREPRENEURIAL GROWTH
Entrepreneurship does not emerge and grow spontaneously. Rather, it is
dependent upon several economic, social, political and psychological factors.
These environmental factors may have both positive and negative influences
on the growth of entrepreneurship.
1. ECONOMIC FACTORS
a) Adequate overhead facilities: Profitable innovations require basic
facilities like transportation, communication power supply etc. They
reduce cost of production and increase profit.
b) Capital: Inventions are capital oriented. In less developed countries
most capital equipment have to be imported which involves foreign
exchange which acts as a difficult problem.
c) Great risk: Risk is high in case of less developed countries as there is
lack of reliable
information, markets for goods and services is small etc.
d) Labor: Though there is abundant labor supply there is generally
scarcity of skills at
all levels.
e) Raw Material:
f) Market:
2. SOCIAL FACTORS
A society that is rational in decision making would be favorable for
decision making. Education, research and training is given less
importance in less developed countries therefore there is very little
vertical mobility of labor.
a) Legitimacy of Entrepreneurship
b) Social Mobility
c) Security
3. CULTURAL FACTORS
Religious, social and cultural factors also influence the individual taking upan
entrepreneurial career, in some countries there is religious and culturalbelief
that high profit is unethical. This type of belief inhibits growth of
entrepreneurship.
4. PERSONALITY FACTORS
In less developed countries the entrepreneur is looked upon with suspicion.
Public opinion in the less developed nations sees in the entrepreneur only a
profit maker and exploited.
5. MOTIVAT ION
Motivation is the act of stimulating someone or oneself to get a desired
course of action, to push the right button to get the desired results.
MOTIVATING FACTORS
1. Education background
2. Occupational experience
3. Family background
4. Desire to work independently in manufacturing line
5.Assistance from financial institution
6.Availability of technology
7. Other factor
6. Governmental Influence:
FACTORS INFLUENCING ENTERPRENURESHIP
The emergence of entrepreneurs in a society depends upon closely
interlinked
social,
religious,
cultural,
psychological,
and
political
and
economic factors.
FAMILY TRADITION: Individuals who for some reason, initiate, establish
maintain and expand new enterprises generate entrepreneurship in society.
It is observed that entrepreneurs grow in the tradition of their families and
society and accept certain values and norms from these sources.
RELIGIOUS, SOCIAL AND CULTURAL FACTORS: Religious, social and
cultural factors also influence the individual taking up an entrepreneurial
career, in some countries there is religious and cultural belief that high profit
is unethical. This type of belief inhibits growth of entrepreneurship.
PSYCHOLOGICAL FACTORS: The psychological factors like high need for
achievement, determination of unique accomplishment, self confidence,
creativity, vision, leadership etc, promote entrepreneurship among
individuals. On the other hand psychological factors like security, conformity
and compliance, need for affiliation etc restrict promotion of
entrepreneurship.
POLITICAL FACTORS: The political and also the political stability of country
influence the growth of entrepreneurship. The political system, which
- Agriculture was
the main
occupation. Farmers
and
cultivators were always in the clutches of the money lenders. The zamindars,
nawabs and rajahs exploited the laborers. They spent money on enjoyment
and luxury and never risked money in industry. Banking and commercial
system was also absent so even if there were savings, they could not be
utilized for productive use.
3. Educational System: - Talented young men were prepared to take white
collared jobs or join government or professional services. Many were
attracted towards politics. The result was that very few young men got
attracted
towards
becoming
efficient,
industrialists,
technicians,
managers etc.
4. Colonial Rules: - The British rulers adopted discriminatory policy Rich
Indian businessman had special connections with foreign rulers and both
satisfied their self interests. Even the few insurance and banking services
catered to the needs of some rich Indian businessman, Britishers in India did
also not encourage Industrialization.
5. Managing Agents: - There were just a handful of people who were
known to be having managerial skills. On common basis, these agents would
lend their skills to some top industries. Industrialists could not manage their
own units. They were always at the mercy of the managing agents who filled
their pockets with big chunks of the companies profits and took full
advantage of Indian industrialists till the managing agency system was
abolished in 1970.
6. Joint Family System: - Younger members of the family always depended
on the Head who never gave any kind of independence or encouraged units
other than family business ones. A number of young men were discouraged
from
diversifying
and diferent.
from
family
business
and
doing
something
new
The entrepreneur is the key to the creation of new enterprises that energize
the economy and rejuvenate the established enterprises that make up the
economic structure. Entrepreneurs initiate and sustain the process of
economic development in the following ways:
1. Capital formation
2. Improvement in per capita income
3. Generation of employment
4. Balanced regional development
5. Improvement in living standards
6. Economic independence
7. Backward and forward linkages
confidence that one can make things happen. In this context a trained entrepreneur has a number of
advantages. In order to accelerate the growth of industries generate employment and utilities the national
human potential there is a need to channelize the youth and women of the country for useful and
productive purpose. There is also a need to motivate the guide the youth to enable them to take a step
forward and take up a carrier of self employment and setup a small or micro enterprise as an entrepreneur.
Entrepreneurs are not necessarily born they can be developed through education, training and experience.
Development of entrepreneurs means inculcating entrepreneurial skills required for setting up and
operating business units.
Entrepreneurial development is an organized and on going process. Its basic purpose is to motivate
persons for entrepreneurial career and to make them capable of perceiving and exploiting business
opportunities.
An EDP consists of the following phases:
1. Pre-Training Phase: involves
i.
Selection of persons with the required potential in terms of knowledge, attitudes and
motivation.
ii.
iii.
iv.
v.
vi.
Survey of environment
2. Development Phase: training programme is launched in order to carry out the necessary
changes in the skills, attitudes and behavior of the participants.
3. Post- Training Phase: this phase involves assessing the effectiveness of the training.
Monitoring and follow up will reveal shortcomings in the programme.
Personality Alert: Advisors can become totally focused on the needs of their
business and customers that they may ignore their own needs and ultimately burn
out.
Entrepreneur example: John W. Nordstrom, Founder Nordstrom.
3. The Superstar: Here the business is centered around the charisma and high
energy of the Superstar CEO. This personality often will cause you to build your
business around your own personal brand.
Personality Alert: Can be too competitive and workaholics.
Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.
4. The Artist: This business personality is the reserved but highly creative type.
Often found in businesses demanding creativity such as web design and ad
agencies. As an artist type youll tend to build your business around the unique
talents and creativities you have.
Personality Alert: You may be overly sensitive to your customers responses even if
the feedback is constructive. Let go the negative self-image.
Entrepreneur example: Scott Adams, Creator of Dilbert.
5. The Visionary: A business built by a Visionary will often be based on the future
vision and thoughts of the founder. You will have a high degree of curiosity to
understand the world around you and will set-up plans to avoid the landmines.
Personality Alert: Visionaries can be too focused on the dream with little focus on
reality. Action must proceed vision.
Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.
6. The Analyst: If you run a business as an Analyst, your company is focus on
fixing problems in a systematic way. Often the basis for science, engineering or
computer firms, Analyst companies excel at problem solving.
Personality Alert: Be aware of analysis paralysis. Work on trusting others.
Entrepreneurial example: Intel Founder, Gordon Moore.
7. The Fireball: A business owned and operated by a Fireball is full of life, energy
and optimism. Your company is life-energizing and makes customers feel the
company has a get it done attitude in a fun playful manner.
Personality Alert: You may over commit your teams and act to impulsively. Balance
your impulsiveness with business planning.
Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.
8. The Hero: You have an incredible will and ability to lead the world and your
business through any challenge. You are the essence of entrepreneurship and can
assemble great companies.
Personality Alert: Over promising and using force full tactics to get your way will not
work long term. To be successful, trust your leadership skills to help others find
their way.
Entrepreneurial example: Jack Welch, CEO GE.
9. The Healer: If you are a Healer, you provide nurturing and harmony to your
business. You have an uncanny ability to survive and persist with an inner calm.
Personality Alert: Because of your caring, healing attitude toward your business,
you may avoid outside realities and use wishful thinking. Use scenario planning to
prepare for turmoil.
Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerrys Ice Cream.
Each business personality type can succeed in the business environment if you stay
true to your character. Knowing firmly what your strong traits are can act as a
compass for your small business. If you are building a team, this insight is
invaluable. For the solo business owners, understand that you may need outside
help to balance your business personality.
Types of Entrepreneurs
Classification on the basis of:
Type of business
Use of Technology
Motivation
Growth
Stages in Development
Others
1. Type of business
2. Use of Technology
and strategies
Professional entrepreneur: Uses the proceeds from sale of one business
to start another one. Brimming with ideas to start new ventures
3. Motivation
4. Growth
Growth entrepreneur: One who enters a sector with a high growth rate; is
a positive thinker
5. Stages in Development
6.
Others
Area- Rural and Urban entrepreneur
Gender/Age- Men and Women entrepreneur
Scale- Small and Large scale entrepreneur
Women Entrepreneur
Till the turn of the century, man has enjoyed a dominant position. But change in position
technological innovation and modern way of thinking can reduce the disparity between man
and women, and bring about equality and equity between them, the need of the hour in
women empowerment both through provision of employment and enterprise creation.
Typologically, the former leader to endogenous empowerment and the latter give rise to
exogenous empowerment.
Women entreprenurer's have been making a significant impact in all segments of the
economy in Canada, Great Britain, Germany Australia and US.
The areas choosen by women are retail trade, restaurants, hotels, education, cultural,
cleaning insurance and manufacturing.
It is the group of women or single women running an enterprise or company in order to
earn profit. Now days because of women empowerment women are stepping-stone into
the industries and are taking the place of men. Now a day's women's are running several
business like beauty parlours, switching shops, boutiques, etc.
Women entrepreneurs may be defined as a woman or a group of women who initiate,
organize and run a business enterprise. In terms of Schunpeterian concept of innovative
entrepreneurs, women who innovate, initiate or adopt a business activity are called business
entrepreneur.
The Government of India has defined women entrepreneurs based on women participation
in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is
defined as an enterprise owned and controlled by a woman having a minimum financial
interest of 51% of the capital and giving at least 51% of the employment generated in the
enterprise to a woman.
They have made their marks in business because of the following reasons:
They want the change to control the balance between their families and responsibility
and their business levels.
In nutshell, women entrepreneur are those women who think of a business enterprise,
initiate it organize and combine the factors of production, operate the enterprise, undertake
risk and handle economic uncertainties involved in running a business enterprise.
In order to meet the global demand and the new challenges thrown to the Indian industry and also to
generate employment, entrepreneurship development has to be given a priority. The entrepreneurs should
possess required skills, ability to grasp opportunities which offer economic advantages, orientation
towards applying knowledge to maximize gains, business skills, and leadership qualities and above all
confidence that one can make things happen. In this context a trained entrepreneur has a number of
advantages. In order to accelerate the growth of industries generate employment and utilities the national
human potential there is a need to channelise the youth and women of the country for useful and
productive purpose. There is also a need to motivate the guide the youth to enable them to take a step
forward and take up a carrier of self employment and setup a small or micro enterprise as an entrepreneur.
An entrepreneur has to have certain cultivated and inherent qualities in him or her in
order to make a success of his or her venture. Not any person can be a successful
businessman or woman. Hard work and determination to win have made many
successful business people to reach their aspired goals.
Personal competencies of a successful businessman or woman
Risk-taking Business involves many risks, which a business person must not
hesitate to take. Lot of financial involvement is there and obviously one has to
be careful with investments. Yet risks have to be taken in money matters as
well. Sometimes a businessman may lose out on his or her venture, but when
he or she make a success of it then he or she has much to gain, both financially
and from a personal satisfaction point of view.
lack of reliable
information, markets for goods and services is small etc.
d) Labor: Though there is abundant labor supply there is generally
scarcity of skills at
all levels.
g) Raw Material:
h) Market:
4. SOCIAL FACTORS
A society that is rational in decision making would be favorable for
decision making. Education, research and training is given less
importance in less developed countries therefore there is very little
vertical mobility of labor.
d) Legitimacy of Entrepreneurship
e) Social Mobility
f) Security
3. CULTURAL FACTORS
Religious, social and cultural factors also influence the individual taking upan
entrepreneurial career, in some countries there is religious and culturalbelief
that high profit is unethical. This type of belief inhibits growth of
entrepreneurship.
4. PERSONALITY FACTORS
In less developed countries the entrepreneur is looked upon with suspicion.
Public opinion in the less developed nations sees in the entrepreneur only a
profit maker and exploited.
5. MOTIVAT ION
social,
religious,
cultural,
psychological,
and
political
and
economic factors.
FAMILY TRADITION: Individuals who for some reason, initiate, establish
maintain and expand new enterprises generate entrepreneurship in society.
It is observed that entrepreneurs grow in the tradition of their families and
society and accept certain values and norms from these sources.
RELIGIOUS, SOCIAL AND CULTURAL FACTORS: Religious, social and cultural
factors also influence the individual taking up an entrepreneurial career, in
some countries there is religious and cultural belief that high profit is
unethical. This type of belief inhibits growth of entrepreneurship.
PSYCHOLOGICAL FACTORS: The psychological factors like high need for
achievement, determination of unique accomplishment, self confidence,
creativity, vision, leadership etc, promote entrepreneurship among
individuals. On the other hand psychological factors like security, conformity
and compliance,
entrepreneurship.
need
for
affiliation
etc
restrict
promotion
of
POLITICAL FACTORS: The political and also the political stability of country
influence the growth of entrepreneurship. The political system, which
promotes free market, individual freedom and private enterprise, will
promote entrepreneurship.
ECONOMIC POLICIES: The economic policies of the government and other
financial institutions and the opportunities available in a society as a result of
such policies play a crucial role in exerting direct influence on
entrepreneurship.
In view of the haphazard development of economic zones, Government is
encouraging the entrepreneurs to establish their business in backward and
tribal areas. This is primarily to arrest the migration of people from the
villages to cities and to create employment opportunities locally. Government
is promoting such development by giving incentives like tax holidays (both
sales and income), subsidized power tarif, raw materials, transportation cost
etc.
2. Agriculture:
- Agriculture was
the main
occupation. Farmers
and
cultivators were always in the clutches of the money lenders. The zamindars,
nawabs and rajahs exploited the laborers. They spent money on enjoyment
and luxury and never risked money in industry. Banking and commercial
system was also absent so even if there were savings, they could not be
utilized for productive use.
3. Educational System: - Talented young men were prepared to take white
collared jobs or join government or professional services. Many were
attracted towards politics. The result was that very few young men got
attracted
towards
becoming
efficient,
industrialists,
technicians,
managers etc.
4. Colonial Rules: - The British rulers adopted discriminatory policy Rich
Indian businessman had special connections with foreign rulers and both
satisfied their self interests. Even the few insurance and banking services
catered to the needs of some rich Indian businessman, Britishers in India did
also not encourage Industrialization.
5. Managing Agents: - There were just a handful of people who were
known to be having managerial skills. On common basis, these agents would
lend their skills to some top industries. Industrialists could not manage their
own units. They were always at the mercy of the managing agents who filled
their pockets with big chunks of the companies profits and took full
advantage of Indian industrialists till the managing agency system was
abolished in 1970.
6. Joint Family System: - Younger members of the family always depended
on the Head who never gave any kind of independence or encouraged units
other than family business ones. A number of young men were discouraged
from
diversifying
from
family
business
and
doing
something
new
and diferent.
7. Religious attitude: - Indians were very religious minded. They gave
more time to religion than to earning material wealth. Religion got priority
over business. Some religions even condemned excess earnings and
indulgence I in comforts. Industrial activity was, therefore, given secondary
consideration by the religious Indians.
8. Mindset: - The mindset of the average Indian was never entrepreneurial.
Our religious literature and epics told us to have patience and to keep on
working without expecting the fruits of labor. This also killed the drive and
desire to get into entrepreneurial activities.
9. Recognition by the society: - In earlier days, the heroes India were the
social reformers and the politicians. Now it is the era of sportsmen, models
and film stars. It is sad that successful or the struggling entrepreneurs have
never been recognized as heroes. Entrepreneurial activity did not get due
importance in the India society.
10. Family Background: - Empirical studies have shown that a good
number of entrepreneurs come from families with industrial backgrounds.
Unfortunately, only a few entrepreneurial communities in India made
entrepreneurial contribution. These communities could also not make
headway in the entrepreneurial field on account of the colonial rule, lack of
infrastructure and other facilities. Entrepreneurship development could only
take place after independence in India.
The entrepreneur is the key to the creation of new enterprises that energize
the economy and rejuvenate the established enterprises that make up the
economic structure. Entrepreneurs initiate and sustain the process of
economic development in the following ways:
8. Capital formation
9. Improvement in per capita income
10.
Generation of employment
11.
12.
13.
Economic independence
14.
1. Disciplined
These individuals are focused on making their businesses work, and eliminate any hindrances or
distractions to their goals. They have overarching strategies and outline the tactics to accomplish
them. Successful entrepreneurs are disciplined enough to take steps every day toward the
achievement of their objectives.
2. Confidence
The entrepreneur does not ask questions about whether they can succeed or whether they are
worthy of success. They are confident with the knowledge that they will make their businesses
succeed. They exude that confidence in everything they do.
3. Open Minded
Entrepreneurs realize that every event and situation is a business opportunity. Ideas are
constantly being generated about workflows and efficiency, people skills and potential new
businesses. They have the ability to look at everything around them and focus it toward their
goals.
4. Self Starter
Entrepreneurs know that if something needs to be done, they should start it themselves. They set
the parameters and make sure that projects follow that path. They are proactive, not waiting for
someone to give them permission.
5. Competitive
Many companies are formed because an entrepreneur knows that they can do a job better than
another. They need to win at the sports they play and need to win at the businesses that they
create. An entrepreneur will highlight their own companys track record of success.
6. Creativity
One facet of creativity is being able to make connections between seemingly unrelated events or
situations. Entrepreneurs often come up with solutions which are the synthesis of other items.
They will repurpose products to market them to new industries.
7. Determination
Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for
success. They are determined to make all of their endeavors succeed, so will try and try again
until it does. Successful entrepreneurs do not believe that something cannot be done.
8. Strong people skills
The entrepreneur has strong communication skills to sell the product and motivate employees.
Most successful entrepreneurs know how to motivate their employees so the business grows
overall. They are very good at highlighting the benefits of any situation and coaching others to
their success.
9. Strong work ethic
The successful entrepreneur will often be the first person to arrive at the office and the last one to
leave. They will come in on their days off to make sure that an outcome meets their expectations.
Their mind is constantly on their work, whether they are in or out of the workplace.
10. Passion
Passion is the most important trait of the successful entrepreneur. They genuinely love their
work. They are willing to put in those extra hours to make the business succeed because there is
a joy their business gives which goes beyond the money. The successful entrepreneur will always
be reading and researching ways to make the business better.
Successful entrepreneurs want to see what the view is like at the top of the business mountain.
Once they see it, they want to go further. They know how to talk to their employees, and their
businesses soar as a result.
Do you have what it takes to be a good entrepreneur? Is it something that you could
learn or rather something that is innate?
Personally I think it is both. There are many people nowadays that like to call themselves
entrepreneurs today but are they really one. Indeed there are various characteristics that define an
entrepreneur and in this article we will have a look at 5 qualities of a good entrepreneur. Note
that this is not given into any particular order.
Perseverance
Whatever business you might be setting up, there are times where you will face problems. It is
moment like this that you will need to hold on and persevere. You will have to believe in yourself
and your products and services in order to succeed.
Interpersonal Skills
Business is all about dealing with people and you will need to be good at communicating if you
want to succeed. Whether it is with your customers, suppliers or employees it is important that
you learn how to communicate in an effective way to make sure that your business is run as
smoothly as possible.
Willingness to Take Calculated Risks
A good entrepreneur should be ready to take calculated risk if he or she wants to succeed.
Sometimes in business you will need to trust your gut feelings and walk on water. However you
will need to distinguish between foolishness and calculated risk. Make sure that you do your
homework and ensure that your business plan is feasible before getting started. This may prevent
you from having some unpleasant surprise in the future.
Motivation
It is important that an entrepreneur remain motivated at all time. This is indeed more important
when you are pioneering a business or activity as you will have no one else with you. You should
not let yourself down and make sure that you keep going forward.
Time Management
This is another important quality that you will need to have as a good entrepreneur. Time
management will allow you to organize yourself and make sure that you get all your work done
effectively. It is very easy to give in to procrastination when working alone and you will have to
find ways to deal with this. May be you can create a to-do list to help you manage your
workload.
He has to start the business activity by preparing a proper plan. The plan should deal with the
type of goods or service to be produced, sources of raw material and credit, type of technology to
be used, the markets where the products can be sold, etc. The plan should be detailed one
covering all the aspects of the business.
The entire budgeting process is the responsibility of the entrepreneur. He has to mobilize
resources for the implementation of the business plan. All other factors have to be paid
contractual payments. He gets the residual income, he has to make provision for future
investments for expansion and diversification. He has to maintain a balance between income and
expenditure.
Thus the entrepreneur is the pivot around which all the activities of the firm revolve around. He
is the one who gives direction to the business firms & ensures its effective operation.
Features of Entrepreneurship
2. Heterogeneous factor
Entrepreneurship is a heterogeneous factor of production because efficiency, talents, organizing
skills, ability to bear risk, foresights and innovating capacities, etc. vary from entrepreneur to
entrepreneur. The nature of enterprise varies with various forms of business organizations like
sole trading, partnership, co-operatives, Joint Stock Company and public undertakings. In a small
business, the same person may work as an entrepreneur, manager and capitalist.
3. Indispensable factor
In modern business entrepreneur is a very important factor of production as he organizes
production of goods & services by coordinating the other factors in an optimum way. He is an
organiser & owner of the firm. Production is impossible in his absence.
4. Intangible factor
Entrepreneurship is an abstract phenomenon. It is intangible. Entrepreneurial efforts cannot be
measured in quantitative terms while we can measure in terms of hours of work and number of
days. We can calculate the number of individual workers and their contribution to the firm but it
is not possible to measure entrepreneurship as the firm itself is the enterprise.
5. Highly mobile
Of all factors entrepreneur possess a higher degree of mobility as he can easily move from one
industry to another or from one region to another. An entrepreneur's ability to move from one
industry to another depends upon his knowledge, experience and specialization.
Land labour and capital can be bought and sold in factor markets but it is not possible to deal
with entrepreneurs in a factor market. Since enterprise is an intangible factor, it cannot be bought
and sold. Hence, like land, labour and capital market there is no entrepreneurial market where
entrepreneurship can be bought and sold. Transaction is not possible in case of enterprise.
We cannot derive the demand and supply curves in case of entrepreneur. Hence, the Demand and
Supply Theory of value cannot be applied to the factor enterprise or organization to determine its
price.
7. Residual reward
Entrepreneurship is a reward in terms of profit which is a residual reward, i.e. an income which
is left after meeting all business expenses from the total sales revenue.
Your overarching motto is: morally correct companies will be rewarded working on a
noble cause. Improvers have an unwavering ability to run their business with high
integrity and ethics.
Personality Alert: Be aware of your tendency to be a perfectionist and over-critical
of employees and customers.
Entrepreneur example: Anita Roddick, Founder of The Body Shop.
2. The Advisor: This business personality type will provide an extremely high level
of assistance and advice to customers. The advisor's motto is: the customer is right
and we must do everything to please them. Companies built by advisors become
customer focused.
Personality Alert: Advisors can become totally focused on the needs of their
business and customers that they may ignore their own needs and ultimately burn
out.
Entrepreneur example: John W. Nordstrom, Founder Nordstrom.
3. The Superstar: Here the business is centered around the charisma and high
energy of the Superstar CEO. This personality often will cause you to build your
business around your own personal brand.
Personality Alert: Can be too competitive and workaholics.
Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.
4. The Artist: This business personality is the reserved but highly creative type.
Often found in businesses demanding creativity such as web design and ad
agencies. As an artist type youll tend to build your business around the unique
talents and creativities you have.
Personality Alert: You may be overly sensitive to your customers responses even if
the feedback is constructive. Let go the negative self-image.
Entrepreneur example: Scott Adams, Creator of Dilbert.
5. The Visionary: A business built by a Visionary will often be based on the future
vision and thoughts of the founder. You will have a high degree of curiosity to
understand the world around you and will set-up plans to avoid the landmines.
Personality Alert: Visionaries can be too focused on the dream with little focus on
reality. Action must proceed vision.
Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.
6. The Analyst: If you run a business as an Analyst, your company is focus on
fixing problems in a systematic way. Often the basis for science, engineering or
computer firms, Analyst companies excel at problem solving.
Personality Alert: Be aware of analysis paralysis. Work on trusting others.
Entrepreneurial example: Intel Founder, Gordon Moore.
7. The Fireball: A business owned and operated by a Fireball is full of life, energy
and optimism. Your company is life-energizing and makes customers feel the
company has a get it done attitude in a fun playful manner.
Personality Alert: You may over commit your teams and act to impulsively. Balance
your impulsiveness with business planning.
Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.
8. The Hero: You have an incredible will and ability to lead the world and your
business through any challenge. You are the essence of entrepreneurship and can
assemble great companies.
Personality Alert: Over promising and using force full tactics to get your way will not
work long term. To be successful, trust your leadership skills to help others find
their way.
Entrepreneurial example: Jack Welch, CEO GE.
9. The Healer: If you are a Healer, you provide nurturing and harmony to your
business. You have an uncanny ability to survive and persist with an inner calm.
Personality Alert: Because of your caring, healing attitude toward your business,
you may avoid outside realities and use wishful thinking. Use scenario planning to
prepare for turmoil.
Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerrys Ice Cream.
Each business personality type can succeed in the business environment if you stay
true to your character. Knowing firmly what your strong traits are can act as a
compass for your small business. If you are building a team, this insight is
invaluable. For the solo business owners, understand that you may need outside
help to balance your business personality.
Types of Entrepreneurs
Classification on the basis of:
Type of business
Use of Technology
Motivation
Growth
Stages in Development
Others
7. Type of business
8. Use of Technology
and strategies
Professional entrepreneur: Uses the proceeds from sale of one business
to start another one. Brimming with ideas to start new ventures
9. Motivation
10.
Growth
Growth entrepreneur: One who enters a sector with a high growth rate; is
a positive thinker
11.
Stages in Development
First generation entrepreneur: Innovator, risk taker, among the firsts in
family to enter business
12.
Others
Area- Rural and Urban entrepreneur
Gender/Age- Men and Women entrepreneur
Scale- Small and Large scale entrepreneur
Women Entrepreneur
Till the turn of the century, man has enjoyed a dominant position. But change in position
technological innovation and modern way of thinking can reduce the disparity between man
and women, and bring about equality and equity between them, the need of the hour in
women empowerment both through provision of employment and enterprise creation.
Typologically, the former leader to endogenous empowerment and the latter give rise to
exogenous empowerment.
Women entreprenurer's have been making a significant impact in all segments of the
economy in Canada, Great Britain, Germany Australia and US.
The areas choosen by women are retail trade, restaurants, hotels, education, cultural,
cleaning insurance and manufacturing.
It is the group of women or single women running an enterprise or company in order to
earn profit. Now days because of women empowerment women are stepping-stone into
the industries and are taking the place of men. Now a day's women's are running several
business like beauty parlours, switching shops, boutiques, etc.
Women entrepreneurs may be defined as a woman or a group of women who initiate,
organize and run a business enterprise. In terms of Schunpeterian concept of innovative
entrepreneurs, women who innovate, initiate or adopt a business activity are called business
entrepreneur.
The Government of India has defined women entrepreneurs based on women participation
in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is
defined as an enterprise owned and controlled by a woman having a minimum financial
interest of 51% of the capital and giving at least 51% of the employment generated in the
enterprise to a woman.
They have made there marks in business because of the following reasons:
They want the change to control the balance between their families and responsibility
and their business levels.
In nutshell, women entrepreneur are those women who think of a business enterprise,
initiate it organize and combine the factors of production, operate the enterprise, undertake
risk and handle economic uncertainties involved in running a business enterprise.