Who is an Entrepreneur?
The word ‘Entrepreneur’ is derived from the French word ‘entreprendre’ which means to ‘undertake’. An entrepreneur is someone who implement initiative by organizing a venture to take benefit of an opportunity and decides What, How and How much of a good or service to be produced. We can apply the word loosely to describe it as someone who runs the business-for example the person who owns a multinational company or one who owns a tea stall.
Definition Of An Entrepreneur
According to oxford dictionary an entrepreneur is “A person who set up a business or businesses, taking on financial risks in the hope of profit”.
According to Adam Smith’s Definition- “The entrepreneur is an individual, who forms an organization for commercial purpose. He/she is proprietary capitalist, a supplier of capital and at the same time a manager who intervenes between the labour and the consumer”.
According to Peter F.Drucker’s Definition-“An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunities. Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or different services”.
NATURE/IMPORTANCE OF AN ENTREPRENEUR
1. Capital Formation
- Entrepreneur is the creator of wealth. Entrepreneur efforts to motivate investors to invest their idle savings in the industrial securities which helps the country to use such resources for productive purposes. With the increment of capital-formation the economic development of a country also increases. Entrepreneurs generate the capital at a rapid rate and capital formation increases which is vital for the industrial development.
2. Create Job Opportunities & Remove unemployment
- By setting up a new business an entrepreneur creates various job opportunities for unemployed peoples. Entrepreneur becomes self-employed and they do not depend on government jobs. By setting a company they provide jobs to many unemployed people which reduces the unemployment problem in the country.
3. Standard of living people
- The efforts of entrepreneurs to set up large scale and small scale industries offer goods at lower price to the consumers and expand variety in their consumption. Purchase power of consumers increases when goods available at a lower cost in large scale productions. The shortage of goods avoided with the help of small scale industries which help in improving the standard of living of the consumers.
4. Balances the Development across the country
- Entrepreneurs removes the discrepancy by creating different industries in the backward areas. In order to encourage the creation of private and public sector industries In undeveloped areas the government provides various subsidies to the entrepreneur like-land plots in concessional rates which makes setting up companies at cheaper rates. It results balanced regional development of the country.
5. Increases Per-capita-income
- Entrepreneurs have the ability to convert the idle resources like land, labor and capital into goods and services which will results in increasing the national income and wealth of a country. The increase in national income simultaneously increases the per capita income of the country.
Characterstics of an entrepreneur
1. Independent & Goal achiever
An entrepreneur is a hardy , realistic person who is motivated by their desire for achievement and independence. An entrepreneur sets significant and targeting goals for him/herself.
2. Optimistic
They are extreme optimistic in making of any entrepreneurial decisions
3. Innovative
Entrepreneurs often take on unknown challenges. An entrepreneur surpasses an inventor simply because the latter only takes an idea and puts it to use commercially, while the former goes far further. Entrepreneurs adjust to the shifts. They abandon the antiquated concepts.
4. Risk taker
Entrepreneurs run the risk of starting any new firm. They could be successful or unsuccessful. They are unable to predict the future. Risks are taken by entrepreneurs. Effective entrepreneurs typically start projects that lie in the medium, when risk is neither too great nor too low. Moreover, despite common assumption, entrepreneurs typically steer clear of endeavors that are nothing more than wild guesses. They would rather rely on their own abilities than chance.
5. Hard worker
Entrepreneurs put in a lot of effort in their profession. An entrepreneur will put in a lot of overtime only to fulfill their duty to their consumer.
6. Self Reliant
Entrepreneurs have self-confidence. They are certain that they could beat everyone in the field. They are confident in their ability to alter the current positions. They can be nomadic, prioritize ideas over facts, and never stop learning. Their primary driving forces are an insatiable thirst for success and an intense desire to create an empire in business. An entrepreneur goes above and beyond what is required of them by their jobs and the circumstances.
7. Information seeker
An entrepreneur conducts in-depth study on client satisfaction and problem solving techniques. He or she is constantly seeking knowledge that will advance the company. An entrepreneur works to create and preserve business relationships by developing productive working relationships. use purposeful tactics to influence others. An entrepreneur can adjust plans and methods to accomplish their goals since they are aware of what to expect at all times.
8.Persistent
When an objective is defined, an entrepreneur does not get distracted by obstacles and is fully focused on achieving it. They constantly compete with others to execute tasks more efficiently, quickly, and affordably in their pursuit of greatness.
9. Leadership
One of a man’s abstract qualities is leadership. naturally is the process of motivating, leading, and influencing others to put out their best effort in order to achieve a particular objective. The entrepreneur’s leadership functions as a driving force behind team projects.
According to Bert F. Hoselitz (1952) “A person who is to become an industrial entrepreneur must have additional personality traits to those resulting from a drive to amass wealth. In addition to being motivated by the exceptions of profit, he must also have some managerial abilities and more important, he must have ability to lead.”
10. High IQ,SQ,EQ levels
An entrepreneur must possess a high intelligence, emotional, and spiritual quotient in order to succeed and handle a wide range of circumstances.
What is Entrepreneurship? 6 Important Characteristics of Entrepreneurship.
What is Entrepreneurship? Before exploring “Entrepreneurship” it is important to understand the meaning of Entrepreneur. Who is an Entrepreneur? The