Concept of entrepreneur
The word “entrepreneur” is derived from the French word “entrepreneur” which means to initiate or undertake. In the early sixteenth century, the Frenchmen who organised and led military expeditions were referred to as “entrepreneurs”. By French economist Richard Cantillon, the term entrepreneur was applied to business in early 18th century. According to him, the entrepreneur buys the factor services at certain prices with a view to sell their products at uncertain prices in the future. Entrepreneurs, who willing to take risk have been the leaders that have produced our recent economic growth,
The concept entrepreneurship is based on the theory of economy and society. The term entrepreneur is also coined by Frenchman J.B. Say around 1800. He postulated that the major role of entrepreneur is to exploit change, not by doing things better but by doing something different. He viewed the entrepreneur as someone in society who upsets and disorganizes the status quo.
Joseph Schumpeter, in his 1911 publication of “The theories of Economic Dynamics” was perhaps the first economist to support Says concept. He said that the entrepreneur is an advanced economy-a method of production not yet tested by experience in the branch of manufacturer concerned, a product with which consumers are not yet familiar, a new source of raw material or of new market and the like. He viewed an entrepreneur is an innovator, who introduces something new in the economy. Innovation may be called as “an introduction of new product, an introduction of new methods of production, developing new markets and finding fresh sources of raw materials and making the changes in the organization and management.”
An entrepreneur, in the face of risk and uncertainty, combines resources in new and different ways to create value, often accomplished via the formation and development of new business ventures. Entrepreneurship is also very much alive in existing companies. It can be found in all sectors of society, not just in business. Although the concept entrepreneurship was developed and popularized in the context of a business environment.
16.3.2 Advantages to becoming an entrepreneur
Before starting a new venture, the potential entrepreneur should carefully review the advantages and disadvantages of a business, since success in never guaranteed. Most entrepreneurs invest their lives in starting and managing their business.
1. Opportunity to gain control over one’s own destiny.
2. Opportunity to reach one’s full potential.
3. Opportunity to benefit financially.
4. Opportunity to contribute to society and be recognized for one’s efforts.
Potential drawbacks to be an entrepreneur
Owning a business has many benefits and provides many opportunities. Nevertheless, anyone planning to enter the world of entrepreneur should be aware of the potential drawbacks.
1. Uncertainty of income.
2. Risk of losing your entire invested capital.
3. Long hours and hard work.
4. Lower quality of life until the business gets established.
5. Complete responsibility.
Characteristics of successful entrepreneurs
1. Commitment and determination
These attitudes are perhaps the most important personality traits in determining the relative success of an entrepreneur’s venture. Most new ventures require entrepreneurs to immerse themselves totally in their business. Without this level of commitment, an entrepreneur has much larger margins for mistakes.
2. Desire for responsibility
Entrepreneurs feel a personal responsibility for the outcome of ventures in which they are associated. This willingness to accept the responsibility for the outcome of the entrepreneurial venture is closely related to the deep desire of entrepreneurs to maintain an internal locus of control.
3. Opportunity obsession
Successful entrepreneurs are obsessed with goal achievement. To them, an established goal comes from the recognition of opportunity out of chaos.
4. Tolerance for risk, ambiguity and uncertainty
Successful entrepreneurs are not gamblers. They do not take wild risks. Rather, they are risk managers. Entrepreneurs have to show patience while facing uncertain situation.
Successful entrepreneurs have substantial confidence in them selves. They firmly believe that what they accomplish is with in their over control. They tend to optimist.
6. Creativity and flexibility
A creative entrepreneurial mind is required to deal with the changing demand of their customers and their businesses. The ability to respond in a flexible manner to constant change requires a high degree of creativity.
7. Desire for immediate feedback
Successful entrepreneurs have a strong desire to improve their performance. They are always ready to learn from mistakes.
8. High level of energy
They are more energetic with full of new creative ideas. They are ready to work for long hours and hard work.
9. Motivation to excel
Successful entrepreneurs are highly motivated and self-starters and appear driven internally to compete against their own benchmarks.
10. Orientation to future
Research has indicated that entrepreneurs who created high growth ventures exhibited a far greater concern for the future than did those who headed row and medium growth ventures.
11. Leadership ability
Successful entrepreneurs have an ability to exert influence without power. This tactics requires that the entrepreneurs be more of a mediator or negotiator than dictator is. He is visionary leader, not dreamer.