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1. CHAPTER 4

2. Characters of Entrepreneurs
“ Entrepreneurs are certainly not supermen”

3. Entrepreneur Defined
 Cantillon defines an entrepreneur as one who bears uncertainty , buys labor and materials, and sells products at uncertain prices.
He is one who takes risks and makes innovations on the factors of production.
 Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another
and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to
labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of
higher productivity and greater yield.
 Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to
set up new products, new services.
 David McClleland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk
taker.
 Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an
entrepreneur hence an effective entrepreneur converts a source into a resource.
 Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are
very important in developing economies.
 Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.
 Howard Stevenson: Entrepreneurship is "the pursuit of opportunity without regard to resources currently controlled.
 G. Pinchot: Intrapreneur is an entrepreneur within an already established organization.
 W.B. Gartner: Entrepreneur is a person who started a new business where there was none before.

4. Influences and characteristics
of entrepreneurial behavior
•M A N A G E M E N T S K I L L A N D S T R O N G T E A M B U I L D I N G A B I L I T I E S A R E O F T E N
PERCEIVED AS ESSENTIAL LEADERSHIP ATTRIBUTES FOR SUCCESSFUL
ENTREPRENEURS. ROBERT B. REICH CONSIDERS LEADERSHIP, MANAGEMENT
ABILITY, AND TEAM-BUILDING AS ESSENTIAL QUALITIES OF AN ENTREPRENEUR.
THIS CONCEPT HAS ITS ORIGINS IN THE WORK OF RICHARD CANTILLON IN
HIS ESSAI SUR LA NATURE DU COMMERCE EN (1755) AND JEAN-BAPTISTE SAY IN
HIS TREATISE ON POLITICAL ECONOMY.
•P S Y C H O L O G I C A L S T U D I E S S H O W T H A T T H E P S Y C H O L O G I C A L P R O P E N S I T I E S F O R
MALE AND FEMALE ENTREPRENEURS ARE MORE SIMILAR THAN DIFFERENT. A
GROWING BODY OF WORK SHOWS THAT ENTREPRENEURIAL BEHAVIOR IS
DEPENDENT ON SOCIAL AND ECONOMIC FACTORS. FOR EXAMPLE, COUNTRIES
WITH HEALTHY AND DIVERSIFIED LABOR MARKETS OR STRONGER SAFETY NE TS
SHOW A MORE FAVORABLE RATIO OF OPPORTUNITY-DRIVEN RATHER THAN
NECESSITY-DRIVEN WOMEN ENTREPRENEURS. EMPIRICAL STUDIES SUGGEST
THAT MALE ENTREPRENEURS POSSESS STRONG NEGOTIATING SKILLS AND
CONSENSUS-FORMING ABILITIES.

5. Perception of entrepreneurs
•T H E A B I L I T Y O F E N T R E P R E N E U R S T O I N N O V A T E I S T H O U G H T T O R E L A T E T O
INNATE TRAITS SUCH AS EXTROVERSION AND A PROCLIVITY FOR RISK -TAKING.
ACCORDING TO SCHUMPETER, THE CAPABILITIES OF INNOVATING, INTRODUCING
NEW TECHNOLOGIES, INCREASING EFFICIENCY AND PRODUCTIVITY, OR
GENERATING NEW PRODUCTS OR SERVICES, ARE CHARACTERISTIC QUALITIE S OF
ENTREPRENEURS. ENTREPRENEURS ARE CATALYSTS FOR ECONOMIC CHANGE, AND
RESEARCHERS ARGUE THAT ENTREPRENEURS ARE HIGHLY CREATIVE
INDIVIDUALS WITH A TENDENCY TO IMAGINE NEW SOLUTIONS BY FINDING
O P P O R T U N I T I E S F O R P R O F I T O R R E W A R D . [6] L A R G E L Y D U E T O T H E I N F L U E N C E
OFSCHUMPETER'S HEROIC CONCEPTIONS OF ENTREPRENEURS, IT IS WIDELY
MAINTAINED THAT ENTREPRENEURS ARE UNUSUAL INDIVIDUALS. IN LINE W ITH
THIS VIEW, THERE IS AN EMERGING RESEARCH TRADITION INVESTIGATING THE
GENETIC FACTORS THAT ARE PERCEIVED TO MAKE ENTREPRENEURS SO
DISTINCTIVE (NICOLAOU AND SHANE, 2009).

6. Classification of entrepreneurs

7. Based on functional
characteristics
•I N N O V A T I V E E N T R E P R E N E U R : S U C H E N T R E P R E N E U R S I N T R O D U C E N E W G O O D S
OR NEW METHODS OF PRODUCTION OR DISCOVER NEW MARKETS OR REORGANI ZE
THE ENTERPRISE.
•I M I T A T I V E O R A D O P T I V E E N T R E P R E N E U R : S U C H E N T R E P R E N E U R S D O N ’ T
INNOVATE,THEY COPY TECHNOLOGY OR TECHNIQUE OF OTHERS.
•F A B I A N E N T R E P R E N E U R : S U C H E N T R E P R E N E U R D I S P L A Y G R A T E S S I T U A T I O N A N D
SCEPTICISM IN EXPERIMENTING WITH ANY CHANGE IN THEIR ENTERPRISE. THEY
CHANGE ONLY WHEN THERE IS A SERIOUS THREAT TO THE VERY EXISTENCE OF
THE ENTERPRISE.
•R O N E E N T R E P R E N E U R S : S U C H E N T R E P R E N E U R S A R E C H A R A C T E R I S E D B Y A
DIEHARD CONSERVATISM AND MAY EVEN BE PREPARED TO SUFFER THE LOSS ES.

8. Based on development angle
•P R I M E M O V E R : T H I S E N T R E P R E N E U R S E T S I N M O T I O N A P O W E R F U L S E Q U E N C E
OF DEVELOPMENT EXPANSION AND DIVERSIFICATION OF BUSINESS.
•M A N A G E R : S U C H A N E N T R E P R E N E U R D O E S N ’ T I N I T I A T E E X P A N S I O N A N D I T S
CONTENT IN JUST STAYING IN BUSINESS.
•M I N O R I N N O V A T O R : T H I S E N T R E P R E N E U R C O N T R I B U T E S T O E C O N O M I C
PROGRESS BY FINDING BETTER USE FOR EXISTING RESOURCES.
•S A T E L L I T E : T H I S E N T R E P R E N E U R A S S U M E S A S U P P L I E R S R O L E A N D S L O W L Y
MOVE TOWARDS A PRODUCTIVE ENTERPRISE.
•L O C A L T R A D I N G : S U C H E N T R E P R E N E U R L I M I T S H I S E N T E R P R I S E T O T H E L O C A L
MARKET.

9. Based on entrepreneurs
business
•M A N U F A C T U R I N G
•W H O L E S A L I N G
•R E T A I L I N G
•S E R V I C E

10. Based on personality traits
•T H E I M P R O V E R : T H E Y H A V E U N W A V E R I N G T O R U N T H E S E B U S I N E S S E S W I T H H I G H
INTEGRITY AND ETHICS.
•T H E A D V I S O R : “ C U S T O M E R I S R I G H T A N D W E M U S T D O E V E R Y T H I N G T O P L E A S E
HIM” BECAUSE COMPANY IS BUILT BY ADVISORS AND ADVISORS BECOME
CUSTOMER FOCUSED.
•T H E S U P E R S T A R : A L L D E P E N D S U P O N T H E C H A R I S M A A N D O N T H E H I G H E N E R G Y
OF THE SUPERSTAR CEO.
•T H E A R T I S T S : A R E H I G H L Y C R E A T I V E T Y P E , V E R Y C O N S C I O U S A B O U T B U S I N E S S .
IF FEEDBACK IS CONSTRUCTIVE I.E. POSITIVE THAN ALSO LETS GO WITH
NEGATIVE SELF-IMAGE.
•T H E V I S I O N A R Y : T O O F O C U S E D O N D R E A M S W I T H L I T T L E F O C U S E D O N R E A L I T Y .
•T H E A N A L Y S T : M O R E F O C U S E D O N F I X I N G P R O B L E M S I N A S Y S T E M A T I C W A Y . T H E
FIREBALL: A BUSINESS OWNED AND OPERATED BY A FIREBALL IS FULL OF LIFE,
ENERGY AND OPTIMISM. THEY HAVE “A GET IT DONE ATTITUDE IN A PLAY FUL
MANNER”.
•T H E H E R O : H A V E A N I N C R E D I B L E W I L L A N D A B I L I T Y T O L E A D T H E W O R L D A N D
YOUR BUSINESS THROUGH CHALLENGES.
•T H E H E A L E R : T H E Y P R O V I D E N U R T U R I N G H A R M O N Y T O T H E I R B U S I N E S S , T H E Y
HAVE UNCANNY ABILITIES TO SURVIVE AND PERSISTS INNER CALM.

11. I love you