Entrepreneurship Development and Management

Entrepreneurship Development and Management

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Meaning and Definition of entrepreneur:-

The word entrepreneur has come from the France word “entrepreneur” which means to undertake,

to pursue opportunities to fulfill needs and wants through innovation to undertake business.

In the year 1725, the word entrepreneur was first brought into economics by a social scientist named Richard Cantillon.

The expert who invented the theory of entrepreneurship was David mc cell in 1961.

There was a various definition of an entrepreneur.

According to the America Heritage Dictionary :

“An entrepreneur is a person who organizes operates and assumes the risk for business venture”

The dictionary of social science has defined an entrepreneur from a functional viewpoint.

According to it “entrepreneur is a person

1) who exercise the function

2) initiating coordinating controlling or institute major change in a business enterprise and

3) bearing those risk of operation which arise from the dynamic nature of society and imperfect knowledge of the future which can cast through transfer calculation or elimination.

According to Encyclopedia Britannica

“Entrepreneur as the individual who bears the risk of operating a business in the face of uncertainty about the future condition and who is rewarded accordingly by his profit or losses”.

Characteristics of an entrepreneur:

An entrepreneur is a person who initiates a business venture. there is some essential feature of an entrepreneur which are described below.

· Risk-taking capability: every business has a risk of time money etc .so an entrepreneur must have the risk-taking capability.

· Creativity and innovation: an entrepreneur has an initiator possess creativity and innovative power.

· Need for achievement: the entrepreneur has a strong desire to achieve the goal of a business. he is always driven by the need for achievement.

· Need for autonomy: an entrepreneur does not like to be under anybody. it is the need for autonomy that drives a person to be an entrepreneur.

· Internal locus of control: an entrepreneur believes in him his work.

· External locus of control: he also believes in fate for the ultimate result.

· Self-confident: an entrepreneur has confidence in him.

· Leadership capability: an entrepreneur must have leadership capability to lead works under him

· Industriousness: a successful entrepreneur must have leadership capability to lead workers working under him.

· Decision-making capability: the entrepreneur has the capability to take quick decision

· Adaptability: he has the capacity to adapt to any kind of situation that arises in the enterprise

· Foresightness: The entrepreneurs have a good foresight to know about the future business environment.

· Others; the other feature are dynamism, ambition, education and training, long term involvement, future orientation.

Qualities of successful entrepreneur:

To become a success as entrepreneur in its business life, a businessman should possess quite a number of essential qualities. Those are noted below:

1. Moderate risk-taking: an entrepreneur always takes calculated risk to operate the organization

2. Hard work: an entrepreneur is a very much hard worker, he or she always busy with various types of work.

3. Accountability: a successful entrepreneur is accountable well as his associates always accountable to him.

4. Educated in the real sense: a successful entrepreneur is educated In real sense .he tries to implement his organizational objectives through his education.

5. Analytical mind: a successful entrepreneur is analytical minded. he scrutinizes every activity on the organization.

6. Dynamic leadership: a successful entrepreneur is always dynamic to operate the organization

7. Presence of mind: a successful entrepreneur is always at present of mind he is always aware of activities that to happen in the organization and around him

8. Accommodative: a good entrepreneur has the capacity to make his own place in every sector

9. Courageous and tactful: Corsages and techniques is very much essential for a successful entrepreneur

10. The maker of right decision: A successful entrepreneur makes the right decision at the right time in the right place

11. Foresighted: a successful entrepreneur foresight the future and take decision accordingly

12. Right perception of things: A successful entrepreneur things in the right way

13. Enjoy simple life: A successful entrepreneur always deals a simple life a general people of the society

14. Strong desire to succeed: A successful entrepreneur has a strong desire for success. he is driven by the desire to success

15. Innovation: innovation is the process of making new something. A successful entrepreneur is innovative

16. Self-confidence: A successful entrepreneur is a self-confidence. does not really on others for decision or fate

17. Goal setting: a successful entrepreneur set the goal

18. Keen observation: A successful entrepreneur always observes the origination

19. Sociable: A successful entrepreneur is a sociable person

20. Loves to work; A successful entrepreneur is very much addicted to work

21. Loves new ideas: A successful entrepreneur loves new ideas of the organization

22. Team builder: A successful entrepreneur builds a suitable team

23. Clean understanding: A successful entrepreneur clearly understands everything

24. Ability to conceptualize: A successful entrepreneur is able to conceptualize the reality

25. other: the other qualities are patience, optimistic, strategist, etc

Different types of entrepreneurs:

On the basis of nature, Clarence Danhof classified entrepreneurs into four categories.

These are –

1. Innovative entrepreneurs: An innovative entrepreneur in one, who introduces new goods, inaugurates new methods of production, discovers a new market and recognizes the enterprise. It is important to note that such entrepreneurs can work only when a certain level of development is already achieved and people look forward to changing and improving.

2. Imitative entrepreneurs: These types of entrepreneurs creatively imitate the innovative technical achievement made by another firm. Imitative entrepreneurs are suitable for underdeveloped countries as it is hard for them to bear the high cost of innovation.

3. Fabian entrepreneurs: Fabian entrepreneurs are characterized by very great caution and skepticism to experiment with any change in their enterprises. They usually do not take any new challenges. They imitate only when it becomes perfectly clear that failure to do not so would result in a loss of the relative position in the enterprise.

4. Drone entrepreneurs: They are characterized by a refusal to adopt any change even at the cost of a severe reduction of profit.

Some other types of entrepreneurs:

(i) Solo operators: These are the entrepreneurs who essentially work alone and if needed at all employ a few employees. In the beginning, most of the entrepreneurs start their enterprises like them.

(ii) Active partners: Active partners are those entrepreneurs who start or carry on an enterprise as a joint venture. It is important that all of them actively participate in the operations of the business.

(iii) Innovators: Such entrepreneurs with their competence and creativity innovate new products. Their basic interest lies in research and innovative activities.

(iv) Buyers’ entrepreneurs: These are the entrepreneurs who do not like to bear much risk. They do not take the risk of production but take the risk of marketing a product i.e. wholesaler and retailer.

(v) Life timers: These entrepreneurs believe business as an integral part of their life. These entrepreneurs actually inherit their family business i.e. goldsmith, potter, etc.

(vi) Challengers: These are the entrepreneurs who initiate business because of the challenges it presents. They believe that ‘No risk, no gain’. When one challenge seems to be met, they begin to look for new challenges.

Besides these, there are Govt. and Non-govt. entrepreneurs.

1. Entrepreneurship Development and Management Book