Entrepreneur and Characteristics of Successful Entrepreneurship

1. Week 5
Entrepreneur and Characteristics
of Successful Entrepreneur
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2. Chapter Objectives
1. What is entrepreneur?
2. Elements of entrepreneurs.
3. What is entrepreneurship?
4. Historical perspective of entrepreneurship.
5. What are the characteristics of successful entrepreneurs?
6. Explaining five common myths about entrepreneurship.
7. Describing three types of start-up firms.
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3. Defining Entrepreneur
 Entrepreneur, just like management has no single
definition;
 Person who is action oriented, highly motivated, takes
risks to achieve goals;
 Person who establish his own business intending to make
profits;
 Person who only provides capital;
 Person who innovates, raise money, assemble input,
choose managers and set the organization growing;
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4. Defining Entrepreneur
Key Elements of Entrepreneurs
 Vision(identifying emerging opportunities)
 Innovation(creating new business or new ways of doing
something)
 Risk bearing(taking risk and facing uncertainty)
 Organizing(collecting and coordination of necessary
resources)
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5. Defining Entrepreneurship
 Entrepreneurship just like entrepreneur has no single
definition;
 Process undertaken by entrepreneur to create incremental
value and wealth by discovering investment opportunities,
organizing enterprises, undertaking risk and economics
uncertainty and there by contributing to economic growth.
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6. Defining Entrepreneurship
Historical Perspective
 Word entrepreneur used to refer to a person managing
large commercial projects;
 In the 17th century a person who has signed a contractual
agreement with the government to provide stipulated
products;
 In 18th century Richard Cantillon said entrepreneur is a
risk taker;
 In 19th and 20th century he was viewed as from economic
perspective and now viewed as inventor;
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7. Characteristics of Successful Entrepreneurs
Following are some qualities of successful
entrepreneurs:
 Passion for Business
 Product/Customer Focus
 Tenacity Despite Failure
 Execution Intelligence
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8. Passion for Business
Definition:
A driving force that fuels an entrepreneur's commitment,
enthusiasm, and dedication towards their business.
Key Points:
 Passion ignites perseverance during challenging times.
 It motivates innovation and constant improvement.
 Helps in maintaining focus and determination.
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9. Product/Customer Focus
Definition:
Prioritizing the development of products/services aligned
with customer needs and preferences.
Key Points:
 Understanding customer pain points and addressing them
with innovative solutions.
 Iterative improvement based on customer feedback.
 Building long-term relationships through exceptional
products/services.
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10. Tenacity Despite Failure
Definition:
Persistence and resilience to bounce back from setbacks and
failures.
Key Points:
 Viewing failure as a learning opportunity.
 Willingness to take calculated risks and learn from
mistakes.
 Maintaining optimism and determination to achieve
goals despite obstacles.
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11. Execution Intelligence
Definition:
The ability to strategize, plan, and efficiently implement
ideas into action.
Key Points:
 Developing a robust business plan and adapting it to
changing circumstances.
 Efficient allocation of resources and timely decision-
making.
 Balancing agility and precision in execution for optimal
results.
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12. Myths about Entrepreneurs
Myth 1 - Entrepreneurs are born, not made
Myth 2 - Entrepreneurs are gamblers
Myth 3 - Entrepreneurs are motivated primarily by
money
Myth 4 - Entrepreneurs should be young and
energetic
Myth 5 - Entrepreneurs love the spotlight
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13. Entrepreneurs are born, not made
Myth
Entrepreneurs possess inherent traits.
Reality
Entrepreneurship can be learned and developed through
education, experience, and mentorship.
 Skills can be acquired through education and practice.
 Success often comes from a combination of learning and
adaptation.
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14. Entrepreneurs are gamblers
Myth
Entrepreneurs take reckless risks.
Reality
Entrepreneurs assess risks and make calculated decisions.
 Risk-taking involves careful analysis and strategic
planning.
 Successful entrepreneurs manage risks rather than rely
on chance.
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15. Entrepreneurs are motivated primarily by
money
Myth
Entrepreneurs are solely driven by financial gain.
Reality
Entrepreneurs are motivated by passion, purpose, and
problem-solving.
 Many prioritize making a positive impact over monetary
rewards.
 Fulfillment and passion drive innovation and dedication.
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16. Entrepreneurs should be young and energetic
Myth
Entrepreneurship is for the young.
Reality
Entrepreneurship has no age limit; experience brings
wisdom.
 Success stories exist across various age groups.
 Diverse experiences and perspectives contribute to
entrepreneurial success.
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17. Entrepreneurs love the spotlight
Myth
Entrepreneurs seek constant attention.
Reality
Many entrepreneurs focus on their work rather than seeking
fame.
 Success often involves hard work behind the scenes.
 Attention to work and innovation drives entrepreneurial
endeavors.
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18. Start-Up Firms
Definition: Startup firms are newly established
entrepreneurial ventures aiming for innovation, growth, and
market disruption.
Characteristics:
Innovation-driven: Focus on introducing novel products, services
or processes.
Scalability: Aim for rapid growth and expansion.
Entrepreneurial Culture: Embrace creativity, agility, and risk-
taking.
Limited Resources: Typically start with minimal capital and a
small team.
High Risk and Uncertainty: Operate in a dynamic environment
with no guaranteed success. 2-18

19. Types of Start-Up Firms
Salary Substitute Firms
These startups aim to replace or augment traditional
employment income.
Characteristics
 Provide alternative sources of income.
 Offer flexible work arrangements.
 Examples include freelancing platforms, gig economy
services.
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20. Types of Start-Up Firms
Lifestyle Firms
These startups prioritize aligning work with personal
interests and values.
Characteristics
 Emphasis on work-life balance.
 Focus on personal fulfillment and well-being.
 Examples include wellness, travel, or hobby-related
businesses.
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21. Types of Start-Up Firms
Entrepreneurial Firms
These startups are aimed at creating scalable and innovative
businesses.
Characteristics
 Focus on growth and scalability.
 Driven by innovation and disruption.
 Examples include tech startups, biotech firms, etc.
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