Entrepreneurship
Entrepreneurs
Entrepreneurs are people that notice opportunities and take the
■
initiative to mobilize resources to make new goods and services.
The word ‘entrepreneur’ is derived from the French verb enterprendre.
■
It means “to undertake.”
Merriam-Webster: “one who organizes, manages and assumes the risks
■
of a business or enterprise.”
Entrepreneurs play a key role in any economy, using the skills and
■
initiative necessary to anticipate needs and bring good new ideas to
market.
Characteristics of Entrepreneurs
1. Innovation
Innovation basically means generating a new idea with which you can
start a business and achieve a substantial amount of profits. Innovation
can be in the form of a product, i.e., launching a product that no one
is selling in the market.
It should be highly innovative to generate new ideas, start a company
and earn profits out of it. Change can be the launching of a new
product that is new to the market or a process that does the same thing
but in a more efficient and economical way.
Creativity helps in coming up with new solutions for the problems at
hand and allows one to think of solutions that are out of the box. It also
gives an entrepreneur the ability to devise new products for similar
markets to the ones he’s currently playing in.
Contt…
2. Ability to take Risks
This is the first and foremost trait of an entrepreneurship. Starting any
business involves a considerable amount of risk of failure. Therefore,
the courage and capacity to take the said risk are essential for an
entrepreneur.
A risk-taking ability is essential for an entrepreneur. Without the will
to explore the unknown, one cannot discover something unique. And
this uniqueness might make all the difference. Risk-taking involves a
lot of things. Using unorthodox methods is also a risk. Investing in
ideas, nobody else believes in but you is a risk too.
Entrepreneurs have a differentiated approach towards risks. Good
entrepreneurs are always ready to invest their time and money. But,
they always have a backup for every risk they take
Contt…
3. Visionary and Leadership quality
Every entrepreneur needs to be a visionary. Without a vision for the
future of his venture, he or she would just be working aimlessly
without reaching any point of success.
To be successful, the entrepreneur should have a clear vision of his
new venture. However, to turn the idea into reality a lot of resources
and employees are required. Here, leadership quality is paramount
because leaders impart and guide their employees towards the right
path of success.
Contt…
4. Open Minded
A good entrepreneur realizes that every situation can be a business
opportunity. Thus can be utilized for the benefit of the organization.
Do you see the glass half empty or half full? For entrepreneurs, it's
always half full. Entrepreneurs always look on the bright side and are
constant dreamers. They look at how they can do things better and
make the world a better place. They never dwell on the past or the
negative. Instead, they focus on moving forward and moving up.
When they're confronted with challenges, entrepreneurs don't see them
as problems; they see them as opportunities. Challenges fuel
entrepreneurs and make them reach higher and do more.
Contt…
5. Future-oriented
Because entrepreneurs are focused on moving forward, they are always
looking toward the future. Entrepreneurs are very goal-oriented and
know exactly what they want. They set their goals and everything they
do is aimed at achieving those goals.
Having a strong vision helps propel you toward accomplishment.
Consider setting a goal for yourself - a north star that can guide you on
your path to success.
Contt…
6. Know your Product-
A company owner should know the product offerings and also be
aware of the latest trend in the market. It is essential to know if the
available product or service meets the demands of the current market,
or whether it is time to tweak it a little. Being able to be accountable
and then alter as needed is a vital part of entrepreneurship.
As an entrepreneur, you need to know what you offer, and how it fits
into the market. Whether it’s a product or a service, you need to know
where you fit in. That means you need to know when it’s time to tweak
things a little bit. This also includes knowing whether you are high
end, middle of the road or bargain. Being able to position yourself and
then adjust as needed is an important part of entrepreneurship.
Contt…
7. Self-Motivation
One of the most important traits of entrepreneurs is self-motivation.
When you want to succeed, you need to be able to push yourself. You
aren’t answerable to anyone else as an entrepreneur, and that
sometimes means that it’s hard to get moving without anyone to make
you. You need to be dedicated to your plan and keep moving forward
— even if you aren’t receiving an immediate paycheck.
Importance of Entrepreneurship:
1. Creation of Employment-
Entrepreneurship generates employment. It provides an entry-level
job, required for gaining experience and training for unskilled workers.
2. Innovation-
It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of
living of people.
Importance of Entrepreneurship:
3. Impact on Society and Community Development-
A society becomes greater if the employment base is large and
diversified. It brings about changes in society and promotes facilities
like higher expenditure on education, better sanitation, fewer slums, a
higher level of homeownership. Therefore, entrepreneurship assists the
organisation towards a more stable and high quality of community life.
4. Increase Standard of Living-
Entrepreneurship helps to improve the standard of living of a person
by increasing the income. The standard of living means, increase in the
consumption of various goods and services by a household for a
particular period
Importance of Entrepreneurship:
5. Supports research and development-
New products and services need to be researched and tested before
launching in the market. Therefore, an entrepreneur also dispenses
finance for research and development with research institutions and
universities. This promotes research, general construction, and
development in the economy.
Successful and Unsuccessful Entrepreneurs
• Successful • Unsuccessful
– Creative and Innovative – Poor Managers
– Position themselves in – Low work ethic
shifting to new markets – Inefficient
– Create new products – Failure to plan and
– Create new processes prepare
– Create new delivery
Classification and types of entrepreneurs
Entrepreneurs according to the type of business.
Business entrepreneur: Business entrepreneurs are
□
individuals who conceive an idea for a new product or service
and then create a business to materialize their idea into reality.
Trading Entrepreneur: The trading entrepreneur is one who
□
undertakes trading activities and is not concerned with the
manufacturing work.
Cont..
□ Industrial Entrepreneurs: Industrial entrepreneur is essentially a
manufacturer who identifies the potential needs of customers and
tailors a product or service to meet the marketing needs.
□ Corporate Entrepreneur: A corporate undertaking is is a form of
business organization which is registered under some statue or act
which gives it a separate legal entity.
□ Agricultural Entrepreneur: Agricultural entrepreneur are those
entrepreneurs who undertake agricultural activities as raising and
marketing of crops, fertilizers and other inputs of agriculture.
Entrepreneurs in technology
□ Technical entrepreneur: A technical entrepreneur is essentially
compared to a crafts man. He develops improved quality of goods
because of the craftsmanship. He concentrates more on production
than marketing.
□ Non technical entrepreneur: These are people who are not
concerned with the technical aspects of the product in which they
deal. They are concerned only with developing alternative marketing
and distribution strategies to promote their business.
□ Professional entrepreneurs: Professional entrepreneurs are a
person who is interested in establishing a business but does not have
interest in managing or operating it once it is established.
Entrepreneurs and motivation
□ Pure entrepreneur: A pure entrepreneur is an individual who is
motivated by psychological and economic rewards. He undertakes
an entrepreneurial activity for his personal satisfaction in work, ego,
and status.
□ Induced Entrepreneur: He is the person who is induced to take up
an entrepreneurial task due to the policy measures of the
government that provides assistance, incentives, concessions, and
necessary overhead facilities to start the venture.
□ Motivated entrepreneur: New entrepreneurs are motivated by the
desire for fulfillment.
□ Spontaneous Entrepreneur: These entrepreneurs start their
business because of their natural talents.
How to identify new business opportunities
■ economic trends
■ market trends
■ shifting or expanding customer base
■ changes in government or industry regulations
■ changes in partnerships or relationship with suppliers, competitors,
etc
■ new or changing funding prospects (eg increase in grant funding)
One of the best ways of identifying new business opportunities is to
complete a SWOT analysis
SWOT Analysis
Con..
■ A SWOT analysis is one of the most popular strategic analysis tools. It
focuses on four key factors affecting your business:
■ strengths
■ weaknesses
■ opportunities
■ threats facing your business
A SWOT analysis typically provides you with valuable information about
your business. It can help you to identify new opportunities and
prospects that you can potentially exploit.
■ For example, if SWOT analysis shows that your opportunities lie in
changing market trends, you may want to respond by introducing new
products, altering prices of existing goods, adapting your advertising or
adding value to the customer experience.
