What is the entrepreneur?
An entrepreneur is someone who starts a business or turns ideas into reality. It creates its own business, organizes, operates, and takes risks for a business. Entrepreneurs are owners of their ventures, they decide which products and services will be produced and sold in the market. The entrepreneurs invest their full time, resources, capital, and ideas to commence a business. They pay commitment to start a new venture.
Entrepreneurship supports people to understand their characteristics, make business plans, seek financial sources, and enable them to run a venture. They come up with new and innovative new products and services to attract customers.
J.B. Say– “An entrepreneur is an economic agent who unites all means of production – a land of one, the labor of another, and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labor, interest on capital, and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.”
David Holt– “An entrepreneur is a person who starts a new venture, taking the initiative and risk associated with it, and does so by creating something new to provide value to customers.”
E.E. Hagen– “An entrepreneur is an economic man who tries to maximize his profits by innovations.”
An entrepreneur is an initiator who starts action for a business, takes risks for the growth of the business, and fulfills social demands and needs. To develop the socio-economic condition of the society, they invest all available resources for business growth. They take opportunities and properly solve problems.
Read more: Concept of entrepreneurship
Read more: Importance of entrepreneurship
Characteristics of Entrepreneurs
Entrepreneurs are the people who start new ventures. They accept the opportunities and put them into ventures to accomplish the results. They have different types of qualities and characteristics to perform business activities. Some characteristics are as follows.
1. Hard Working
The entrepreneur needs hard work to start a business. They should pay full commitment to commence a venture. Willingness defines how to achieve a target of an entrepreneur profitably. They put all the resources human capital, monetary capital, raw materials, and so on, to be successful business person.
It demands a business person’s full time, focus, and persistence to receive the desired business goal. They are initiative. They perform well activities to take the right direction of a venture. They innovate new products and services to address the customers’ needs and demands.
2. Risk Bearer
They are risk bearer. For the progress of business status and market condition in the competitive market, they analyze risks that can be resolved or not. Their risk-taking ability is influenced by collected information analysis and personal experience.
They grab the applicable opportunities for the growth of business. Every challenge and issue related to business entrepreneurs is settled with proper handling. They possess self to achieve defined goals.
3. Innovative
Customer satisfaction is an important factor in the running of a business. For that, they initiate research, information collection, feedback collection, and innovative activities for quality products and services to satisfy customer needs and demands. Customer tastes are changeable from time to time. Hence, it is a challenging point for the growth of a business.
They develop new goods that could not be seen before. By research, they innovate market-demanded products to compete in competitive markets. They accept all circumstances from the environment.
4. Good Manager
To start a business different types of resources are required. It is the ability of the business person that bring those resources in the right form for the production of goods and services. They appropriately manage all resources to start a business and grow of business accepting all challenges.
They effectively manage time and stress, they concentrate on their business goals. They prepare business plans, make decisions, and put those ideas into reality. These things are prominent for a good manager.
5. Desire for High Achievement
Entrepreneurs are highly motivated to achieve the desired target at the right time. It is the strength of the business person. Every situation desire for high achievement helps to remove their anxieties, problems, and other issues about the business.
It is a motive factor for the entrepreneurs. They pass challenges appropriately and accept excellent work to achieve defined goals. It increases intimacy in business activities.
Types of Entrepreneurs
1. Innovating Entrepreneurs
This kind of entrepreneur is known for their new products, new services, new techniques, and new market influencers. They initiate unique goods and services to overcome the market competition. They accept customer feedback about the business nature. Customers all desires and needs are fulfilled by the quality products and services.
2. Solo Entrepreneurs
This type of entrepreneur works alone. They perform all the tasks to start a business lonely. To grow the venture, they plan, perform, and put that idea appropriately. If they need some support, they employ minimum employees.
3. Challenger Entrepreneurs
They are challenge seeker. They search for new issues in the business and market. Use those issues as opportunities and avoid unresolvable issues. They solve the affordable challenges and if one challenge is met, they seek new challenges. Challenges help to increase business status through feedback or market information.
4. Women Entrepreneurs
The women who independently start a business are recognized as women entrepreneurs. Nowadays, the education system, literacy, globalization, and the consciousness of people help women commence a business. Maximum businesses are started by women as people desire and market conditions.
5. Part-time Entrepreneurs
People who begin a business while still having a salaried job are known as part-time entrepreneurs. Such kind of business person starts small business. They correctly manage both tasks to fulfill family needs. They start such a business if they cannot meet the family’s economic problems. Their main target is to earn more money.
6. Imitating Entrepreneurs
Imitating entrepreneurs are those who do not innovate, but copy others’ methods and systems. A business person saves costs and errors about the innovation. They accept famous or successful production systems and techniques. Such kinds of entrepreneurs have low risk-taking natures.
Functions of Entrepreneurs
1. Planning
Planning is the future course of action. A business person prepares the plans according to their resources and goals. They choose the best idea to start the new venture. It is a systematic course of action to set and achieve targeted goals at the right time. Plans help them stay on the right track and navigate challenges.
They specify the purposes concerned with business. They collect all the information about it and prepare plans, which plan would help to achieve goals. The business plans consist of production, marketing, and financing activity. It defines all actions to put business ideas into reality.
2. Organizing
Organizing is the process of managing resources to start a business. It is arranging tasks, resources, and authority among the venture employees. Collected financial and non-financial resources are divided according to job description. It provides the ground pattern for the new venture in a competitive market. They make groups of tasks and divide them into various positions and members.
3. Mobilizing Resources
Resources are financial and non-financial. Those are men, material, wealth, and other resources. Entrepreneurs strategically use those resources. They use their skill and knowledge for the appropriate mobilize the available resources appropriately. Mobilizing resources helps to analyze the strengths and weaknesses of the business.
Proper mobilization of resources makes the venture able to progress the venture. It supports work efficiency, and quality products and provides customer-based services.
4. Relationship Management
Entrepreneurs make smooth relations among the different members, which may be internal or external parties. The relationship helps to coordinate business activities and obstacles management. Entrepreneurs manage sound relations between suppliers and customers. Customers are an important part of the business. Their use of products supports to stay in the market. Entrepreneur coordinates internal members’ problems and feedback.
5. Control
Control is also an important function of the venture. Entrepreneurs control the resources for use by beneficiaries. Control of resources helps to assess whether available resources are used properly or not. It discovers the gap between achieved results and results expected. It helps to detect the weaknesses of entrepreneurs and make them responsible for the venture objective.