Entrepreneurship

Features/Nature/ characteristic of ENTREPRENEUR?

Meaning: -Entrepreneur plays an important role in the development of any country. They are the
backbone of nations economic progress. Entrepreneurs are innovators but in their role they act as the
owners, producers, coordinators, market creators, decision takers and risk takers. They organize land,
labour and capital to provide much needed goods and services to the society and therefore are referred
to as fourth factor of production. He is also called as caption of the industry.
Definition: - An entrepreneur is a person who buys factor services at certain prices with a view to
selling its product at uncertain (doubtful) prices. Defined by (Cantilon)
The nature of Entrepreneur is explained as follows:
1. High goals: -The Entrepreneurs have very positive desires to achieve high goals. Such high self
motivation keeps them strong and confident to face various obstacles and misfortune (bad luck).
Hence they are successful in setting a prosperous organization.
2. Future foresight: - The Entrepreneurs have good foresight to know about the future market
development and the external business environment. He can take proper decision according to the
market situations and market changes. This also helps them to take timely action.
3. Mental abilities: - Mental ability consists of intelligence and creative thinking. Ti be an Entrepreneur, a
person must be intelligent and have the ability of creative thinking. .
4. Technical Knowledge: -An Entrepreneur should have sufficient technical knowledge about the
products and his plan to produce. Timely change of technology should always be updated to be in
pace (speed) with the market.
5. Hard Work: - A successful Entrepreneur will always be ready to work hard. Hard work will always
distinguish a successful entrepreneur from an unsuccessful one.
6. Highly optimistic (positive): - An entrepreneur always thinks positive in all the activities. He is always
optimistic with the market situations even in failure times. Such positive attitude helps the
entrepreneur to run successfully.
7. Communication skills: -This refers to communicate effectively. It is very important that the sender and
receiver of the message are being understood perfectly. An entrepreneur has to communicate to
various parties i.e. customers, suppliers, creditors, employees, etc.
8. Creativity: -An entrepreneur should be creative; Creativity is the ability to bring something new into
existence. Innovation is the process of doing new things, and creativity is a prerequisite
(requirement) to innovation.
Feature/nature/characteristics of Entrepreneurship?
Introduction: - Entrepreneurship is a process of setting up a new business organization. It is the process
where one decides to build a business career by finding the market options and mobilizing the available
resources.
Following are the Characteristics of Entrepreneurship.
1.

Economic Activity: -An entrepreneur produces a new product for the consumers as per their needs.
He feels the need of this to satisfy human wants and as well in exchange earn a better livelihood. It is a

systematic plan activity as per the skills and knowledge of an entrepreneur. Hence entrepreneurship is
an economic activity.
2.
Innovation: - entrepreneurship is an innovation. The introduction of new combination of various
factors of production is innovation. A new product arrives in the market, uses new production
technology, discovers new source of supply of raw materials and opens a new market for the specific
product.
3.

Creative activity: -Innovation should have a strong support of creativity. Introducing creativity in
producing some new is a big challenge for the entrepreneur. Thus creativity is an essential part of
entrepreneurship.

4.

Organizational building: - It is an activity where various factors of production have to be organized.

Different factors like place utility, time utility, form utility, etc. has to be considered to collect them
under one roof for new production.

5.

Managerial skill and leadership: -A person who wants to be a successful entrepreneur should have
more passion of doing something new than just earn profit. Leadership and managerial skills are the
most important facets (part) of entrepreneurship.

6.

Risk bearing: -Uncertainty is defined as a risk which cannot be insured against and is incalculable.
Entrepreneur is an agent who buys factors of production at certain prices, in order to combine them into
a product, to sell them at uncertain prices in future. Thus they too are risk-bearing agents of production.

7.

Gab filling function: -The most significant feature of entrepreneurship is gap filling. It is the
entrepreneur's job to fill the gap or make up the deficiencies which always exist in the knowledge about
the production function.
Skillful management: -The success of any entrepreneur ship depends on the management of the
organization. With professional management and skilled managers, entrepreneur ship becomes a
successful activity.

Competencies of Entrepreneurship?
Introduction: -In simple terms, a competence is an underlying characteristic of a person which led to
his or her effective or superior performance in a job. The term 'competence' refers to a combination
of knowledge, skills, motive, attitude and habits. Every role or function requires some particular
competencies.
The entrepreneur has to have certain competencies or abilities to have superior results. He may possess
certain competencies which can be developed through training, guidance and experience.
Following is a list of major competencies identified by the study that lead to superior performance
of the entrepreneurs:
1.

Initiative: -An entrepreneur is a person who takes the initiative or starts something first to set up an
enterprise. Initiative is an inner urge (advise) of a person to do something. People who are innovators
usually have the quality of taking initiative. Entrepreneurs take the initiative to carry out new
combinations and innovates something new in the process of economic development.

2.

Sound Knowledge: -An entrepreneur always wants to receive new information which can help him
update his knowledge and help him in realizing his goals. He also refers to different markets, takes
expert's advices and does researches to gain complete to bring his ideas into reality.

3.

Proper Planner: -An entrepreneur believes in following a perfect plan to execute his ideas. He
develops the future courses of action keeping in mind the goals to be achieved. They believe in realistic
planning and ensure proper execution of the same. This helps them in achieving success.

4.

Efficiency: -An entrepreneur always has high efficiency in whatever act he does. He believes in hard
work to attain efficiency. They are ready to try and involve new methods to make the working pattern
easier, simpler, better and economical.

5.

Opportunity seeker: -The entrepreneurs regularly keep studying the market and business
environment. They observe and wait for the best opportunity for their enterprise or organization in the
market. They grab the best opportunities available for their organization.

6.

Self-confidence: -The successful entrepreneurs have complete confidence over their knowledge,
skills, abilities, strengths and competencies. They show great persistence in difficult situation and future
uncertainties.

7.

Positive attitude: -An entrepreneur always thinks positive even in failure times. He is never
disheartened (discouraged) by failures. He believes in 'Try and try till you succeed' formula. He takes
any failures as a new experience and lesson.

8.

Persuasive: -An entrepreneur is in a position to convince his superior and subordinates to get the
work done according to his ideas by sound arguments and logical reasoning. He uses his intelligences to
convince others the way he want them to do things for him.

9.

Quality consciousness: -Entrepreneur who wishes to succeed believes in quality performances. They
do not compromise with moderate or average performance. As they want to be the best, they set high
quality standards for themselves. They put in all efforts to achieve excellence for their organization.

10.

Problem solver: -Any problem is taken up as a new challenge and best strategy is found out to solve
the problems. The entrepreneur puts in the best for finding out the most appropriate solution for the
same. He must have an intense desire to complete a task or solve a problem.
Entrepreneur Manager
Sr.
No.

1.

2.

3.

4.

Basis of
Difference

Motive

Status

Entrepreneur

Manager

The
main
motive
of
an The main motive of a manager is to give
entrepreneur is to start a venture by his services to an enterprise owned by
setting a enterprise to achieve his someone else.
ideas.
An entrepreneur is the owner of A manager is a servant or paid employee
the enterprise
of an enterprise.

Risk-bearing

Being the owner, the entrepreneur A manager being an employee does not
undertakes all the risk and undertake any risk involved in the
uncertainties of the enterprise.
enterprise.

Qualification

an entrepreneur requires qualities A manager needs to posses educational

and qualifications like hard and technical skills. Special management
working , patience, foresight, high knowledge and qualification is an

thinking, independence, etc.

5.

6.

7.

8.

Innovation

Benefits
Decision
making

additional benefit

Entrepreneurs are born innovators. Managers only execute the plans

They set their own goals and work prepared by the entrepreneurs. They only
for it.
do the practical part of the plan.
An entrepreneur gets profits as the A manager usually gets fixed salary for
benefits of the enterprise which is the services rendered by him. It is fixed.
uncertain.
An entrepreneur takes decisions on A manger does not have authority to take
his own as the enterprise has to decision on behalf of the enterprise, but
develop as per his ideas.
he may take decision related to the plan
which he is executing.

An entrepreneur may not be a A manager is trained professional, hence

specialized in his trade but may is specialized in his field.
Specialization
have sufficient knowledge.