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Characteristics Of An Entrepreneur

An Individual or Group Individuals:

An entrepreneur may be an individual or a group of many individuals. The present age belongs to large business houses and mass level of production. To commerce, an enterprise on a very large basis, the capital or skills of a single individual is not sufficient. A group of individuals gathers, 4 contributes their share of capital and resources and starts a business enterprise.

Need for achievement:

It is the prime psychological drive that motivates the entrepreneur. His desire to excel in his venture and to achieve the desired goal. As a high achiever, he competes with his rivals in the venture field as well as with his previous performance.

Independence or autonomy:

Although there are various motivations for venturing out alone, the most frequent reason for becoming an entrepreneur is the desire for independence or autonomy—not wanting to work for anyone else. This desire to be one’s loss ignites a fire in the heart of an entrepreneur to accept all social, psychological, financial, and technological risks and to work hard.

Risk Bearer:

The entrepreneur has the risk-bearing capacity. It is the characteristics of risk-bearing that distinguishes an entrepreneur from a manager. An entrepreneur is a manager but he has the distinction of performing the risk-bearing function. A manager also does more or less the same thing but he does not take risks.

Innovation:

An entrepreneur is an innovator by nature. He is always in search of new ideas and new opportunities. He tries to outshine others by taking initiative in doing new things i.e., exploring new products, new markets, new raw materials, new methods of production, etc.

Goal-Oriented:

The entrepreneur is goal-oriented. He gets happiness by setting and striving for goals one by one. Reaching one goal set by the entrepreneur will lead to setting up another goal.

Decision-making:

An entrepreneur is a rational decision-maker. He has to take several decisions to put his business idea into a reality. He recognizes an idea i.e., a product, service or market. He has several alternatives before him. He has to choose between them. This involves decision-making as to choose the best alternative which may suit him and give maximum profit. For example, he has to decide what is to be produced, how is to be produced, where to be produced and when to be produced etc.

Self-confidence:

An entrepreneur has a high degree of self-confidence in achieving his goals. He can face extraordinary and unforeseen circumstances as and when they arise.

Initiative:

An entrepreneur always takes initiative. He spends a large portion of their time in thinking over finding out new or novel 5 ways of doing things differently—finding out new raw material, a new product, a new method of production, a new style of advertisement, a new style of packaging, and so forth. While taking such initiative, entrepreneurs duly keep in mind the needs and requirements of the customers, changing tastes and fashions, changing lifestyles and attitudes, etc.

Motivator:

An entrepreneur is a motivator. He motivates his workers by giving them incentives, and the creation of teamwork to get their whole-hearted cooperation. He can influence people in the new business unit in the way that they will strive willingly and enthusiastically toward the achievement of the unit’s goals.

Human Relations Ability: An entrepreneur possess sound human relations ability to deal with his employees, customers, suppliers, creditors etc.

Economic Planning: Planning is an activity of a highly ubiquitous character. Every action of an entrepreneur is well planned as is evident from the fact where there are production plans, sales plans, financial plans, purchase plans, research and development plans and so on. Without proper business planning, the affairs of any business enterprise are likely to be haphazard. The concept of entrepreneurship emerged in the areas of business and finance in the 18th century. Before this, the concept was used in engineering and military services only. Since then various economists and socio-psychiatric scholars have expressed their views in this regard. Nevertheless, they are unanimous about the exact meaning of the term. William Bongo writes, “The matter of entrepreneurship has always been confusing.”

As a result of the confusion, entrepreneurship has been used in different terms. The meaning of entrepreneurship changes with the stages of economic development also. In general terms, entrepreneurship is bearing risks of various types inherent in the business, and the ability and tendency of facing uncertainties and challenges. In modern times, entrepreneurship is establishing a new enterprise, the ability to control and direct and the venture capability of making new changes and improvement in the business enterprise. In this sense, entrepreneurship is a quality of leadership and innovations by which higher profits and goals can be achieved. Entrepreneurship is adoption in a dynamic environment and the ability to activate creative and innovative ideas and plans.

Sources and references : https://openstax.org/