2. Definition
The Entrepreneur
The word entrepreneur in English originated from the
French word ‘entreprendre’, meaning ‘to undertake’.
someone who takes the risks of running an enterprise by
paying certain price for securing and using resources for a
product and resetting it at an uncertain price.
Entrepreneurship
This is the act or process of identifying business
opportunities, assembling the necessary resources, taking
calculated risks to initiate a successful business activity.
3. Characteristics of Successful
Entrepreneur
one who establishes a business and manages it only for profit
without a vision for growth is more of a business person than an
entrepreneur. In other words all entrepreneurs are business people
and not all business people are entrepreneurs. Some characteristics
are following;
Risk Taker
Entrepreneurs are often thought of in terms of the risk they
assume. Entrepreneurs are neither high nor low risk takers. They
prefer situations in which they can influence the outcome, and they
like challenges if they believe the odds are in their favor.
4. Characteristics of Successful
Entrepreneur
Desire to Achieve
Any successful entrepreneur will tell you that starting a business is not a
get-rich-quick alternative. New businesses usually take from one to three
years to turn a profit. In the meantime, you will do well to break even. At
start-up stage, entrepreneurs do not buy anything they do not need, his
focus is on creating a company with a strong financial base for future
expansion. A strong enough dream and desire will always point towards
success and provide the fuel to get there.
Personal Life
All successful entrepreneurs work long hours, which cuts into their
personal life. However, long working hours are not unique to
entrepreneurs. Many corporate managers and executives work well
beyond the average forty-hour work week, some higher-level manager calls
a Saturday meeting, you’ve got no choice but to be there. They schedule
important meetings, during the week so that they can have
weekends off for their personal life, which is very important to them.
5. Ability to Work with Others
Initially, entrepreneurs might work alone, the astute entrepreneur knows
that he or she must draw on the experience and ideas of others in order to
succeed. Entrepreneurs will actively seek the advice of others and will
make many business contacts to validate their business ideas. The
entrepreneur who is a loner and will not talk to anybody will never start a
successful business.
Versatile Knowledge
A recent study of successful entrepreneurs showed that most of them
worked for a large corporation for a number of years before they started
their own business. In every instance, they used the corporate structure to
learn everything they could about the business they intended to establish,
before they started.
Dedication
Dedication is an attribute that all successful entrepreneurs exhibit. They
are dedicated to becoming their own boss. To this end, they will conduct
extensive research campaigns into the advantages and disadvantages of
their business ideas in their dedicated drive to start a business.
6. Self-Confidence
An entrepreneur is confident of achieving realistic and challenging
goals, coupled with a sense of effectiveness, will ultimately
contribute to the success of the venture. They also have the ability
to solve problems and make decisions which involves striving with
determination.
Independence
Many individual become ‘economically displaced’ (unemployed). For
these individuals, starting a new venture can be advantageous, a
breath of fresh air into an otherwise stale life-style.
Initiative and Positives Thinker
They have the ability to generate new ideas and implement them
ahead of the others to be able to create a competitive edge.
Entrepreneurs are resourceful and creative.
7. Function of Entrepreneur
The general function of an entrepreneur is to achieve one or
more of the following objectives.
Entry of a new venture into an existing system
Survival or expansion of existing ventures
Achieve operation efficiency
Achieve higher productivity
Use non-conational resources
Make optimum use of unutilized or underutilized resources
Add value to existing goods or services
Savings in costs of inputs
8. For success of an entrepreneur; innovatory attitude is fundamental. The complex
tasks that the successful entrepreneurs usually perform may be classified under the
following major functional areas.
Understanding own capability; This involves examining dominant aspect of the
business environment that influence survival and growth of an enterprise,
identifying and comparing own personal abilities and skills vis-à-vis those
particularly essential to entrepreneurial success and to establish own strength,
weaknesses and the overall capability to translate a creative ideas into a business
reality.
Planning a new venture; This function entails preparation of project report;
estimating technical know-how; plant machinery and supporting services needed
and knows their suppliers. The function also involved establishing legal
requirements for setting up a new unit, understanding layout of production
operation and space requirement as well as estimating both permanent and
working capital needed to start up a venture and immediate future requirement.
Organizing a new venture; This function involves among others determining
organizational structure of an organization choosing the form of ownership of the
proposed firm. Ensuring proper maintenance of office records, initiating steps for
observance of related statutory and non-statutory requirements.
Identifying a new venture opportunity; This entails identifying market needs and
establishing need for a change. Carrying out market research and analyzing techno-
economic feasibility of an idea conceived in mind. To establish answers to internal
and external risk. Factors as well as ascertaining the workable new venture
opportunity.
9. Managing finance; This function entails arranging own and borrowed capital,
availing grants and subsidies obtainable from government where appropriate,
outlining business credit policy and collection procedure. In addition the function
also entails preparation and review from time to time sectional and master budgets
in addition to period funds flow that need to be prepared.
Managing production operation; This function basically involves formulation
of purchasing policy and inventory central system; formulation of framework for
total quality control and guidelines for production schedule and ensuring that
every component/raw material procured is of right quality from right source at
right price in right quantity and is delivered at right place and in right time.
Managing work force; This function involves among other systematic
manpower planning, preparation of job descriptions for all positions at all level,
determining pay and perquisites for each position, selecting and recruiting
personnel for each position and assigning responsibility. The function also
involves delegation of authority to the personnel concerned; supervising training
and motivating employees as appropriate as well as evaluating performance of
each employee.
Managing market; This is a function that entails collecting and analyzing
regularly data on customer needs with special references to product quality;
function of the product, pricing and after sale service.
10. Distinction Between Entrepreneur
and Manager
A manager can be defined as the individual who oversees the day to day
operations and efficiency of a continuous process. The tasks of a manager
include availing required personnel machinery and raw materials which are
combined in appropriate proportions to produce outputs, minimize
wastages, maximize resources, and execute contracts and marketing. A
manager is therefore responsible for the achievement of vision, mission,
and objectives of the venture using the minimum resource possible. The
entrepreneur on the other hand is responsible for combining resources,
locating new ideas, and converting them into products and services.
Managers on the other hand are viewed as people who ensure operations
are functioning effectively and efficiently. The entrepreneur must
coordinate, direct others to direct the business to a new development.
An entrepreneur is a person who organizes and manages a business
undertaking assuming the risk for the sake of profits. An entrepreneur
requires communication skills; the ability to make one understood. To be
successful one requires technical skills to understand his product and
market.
11. A successful entrepreneur must have strategic management
skills to consider both long and short-term implication of
decisions made; strength and weaknesses as well as
competition. In the past, entrepreneur was viewed as a boss
but of recent he is viewed as a leader. Many entrepreneurs
were self oriented but now they are a net workers. They need
to take quick decisions but now they take time to build
imagination. A manager can be said to be one who does not
own the venture while as an entrepreneur owns the venture
and manager of the venture who maximizes opportunities. A
manager may be employed by Entrepreneur to manage the
business on behalf of the entrepreneurs and take to policies
formulated by the entrepreneur for which he/she had no
direct role when they were made.
