The word comes from the French word “entreprendre” – “to undertake” or “go-between”
Who is an Entrepreneur? The earliest use of the term expressed the sense of “middlemen” who directed the resources provided by others. Middle age: someone who managed large projects on behalf of a landowner or the church, such as building of a cathedral or castle. 17th century - Entrepreneurs were those who contracted with the state to perform certain duties such as the collection of revenues or the operation of banking and trading service. Here the term is extended to include some elements of risk and profit.
Today, an Entrepreneur is an Innovator, or developer who recognises and seizes opportunities convert those opportunities into workable/marketable ideas; adds values through time, effort money or skills, assumes the risk of competitive marketplace to implement these ideas; and realises the rewards from the efforts. (Kuratko & Hoggetts, 1989)
J.B. Say, sees an Entrepreneur as “someone who consciously moves economic resources from an area of lower productivity to an area of higher productivity and greater yield” Thus an entrepreneurs takes existing resources People Materials Buildings Money time Redeploys them to make them productive and give them greater value.
There is no universally, agreed definition of Entrepreneurship and Entrepreneur. According to Ranstadt (1984) “Entrepreneurship is the dynamic process of creating incremental wealth” This wealth is created by individuals who assume the major risk in terms of equity, time and/or career commitment of providing value for some products or services The product or the service itself may or may not be new or Unique but value must somehow be infused by the Entrepreneur by securing and locating the necessary skills and resources
According to Joseph Schumpeter (1951) Entrepreneurship consists of doing things that are not generally done in the ordinary course of business routine; it is essentially a phenomenon that comes under the wider aspect of leadership.
However according to Shapore (1975/1987) “in almost all of the definitions of entrepreneurship, there is the agreement that we are talking about a kind of behaviour that includes: I. Initiative taking II. The organisation or reorganisation of social economic mechanisms to turn resources and situation to practical account, and III. The acceptance of risk failure.
The ambition and desire to succeed A need for independence Vision, flair and imagination Creative and innovative traits Readiness to take risks Perseverance – they never give up Strategic thinkers –looking to the future Set high standards for themselves and others
There seem not to be a single “entrepreneur type” but there is a great deal of consistency in the way in which successful entrepreneurs approach their task. Some of the characteristic exhibited by successful entrepreneurs are discussed as follows
Hard work: Successful entrepreneurs put a lot of physical and mental effort into developing their ventures. They often work long and antisocial hours. After all, an entrepreneur is their own most valuable asset. Balancing the needs of the venture with other life commitments such as family and friends is one of the great challenges which faces the entrepreneur
Self-starting Entrepreneurs do not need to be told what to do. They identify tasks for themselves and then follow them through without looking for encouragement or direction from others. Setting of personal goals Entrepreneurs tend to set themselves clear, and demanding goals. The embark their achievements against these personal goals. As a result, entrepreneurs tend to work to internal standards rather than look to others for assessment of their performance.
Resilience Not everything goes right all the time. In fact, failure may be experienced more often than success. Entrepreneurs must not only pick themselves up after things have gone wrong but must learn positively from the experience and that learn to increase the chances of success the next time
ConfidenceThe entrepreneur must demonstrate that they not only believe in themselves but also in the venture they are pursuing. After all, if they don’t who will?
Receptiveness to new ideas The entrepreneur must not be overly confident. They must recognise their own limitations and the possibilities that they have to improve their skills. They must be willing to revise their ideas in the light of new experience One of the main reasons that banks and venture capitalists give for not supporting a business proposal is that the entrepreneur was too sure of themselves to be receptive to good advice when it is offered
Assertiveness Entrepreneurs are usually clear as to what they want to gain from a situation and not frightened to express their wishes. Being assertive does not mean a commitment to outcomes, not means. True assertiveness relies on mutual understanding and is founded on good communication skills.
Information seeking Eager to learn Attuned to opportunity Receptive to change Commitment to others Comfort with power
1. Freedom to adopt my own 6. Flexible work-life balance approach to work 7. Desire to have high earnings2. To take advantage of an 8. Challenge opportunity 9. To achieve something and3. To control my own time get recognition4. It made sense at that time in 10. To continue learning my life (!) 11. Respect of friends and family5. Security for myself and 12. Tax avoidance family
1. Personal Freedom: entrepreneurs are not controlled by any other managers in their organisations. They set their own work schedule Make their own decisions Try out their own new ideas Direct their energies to into business activities they deem fit.2. Personal Satisfaction: Personal freedom leads to personal satisfaction of doing what you enjoy each day. They would be in control of their lives by controlling their business and their work
3. Increased Income: personal satisfaction leads to hard work and working hard usually results in making more money.4. Self Esteem: freedom, satisfaction and increased income add up to a greater feeling of self-esteem.