Prof.

Swapan Das Gupta

Entrepreneurship
Hand Out II
Definitions & Attributes of Entrepreneur
Definition is a formal statement or description of meaning.
(A) Definitions of Entrepreneur:
1. An entrepreneur is a person who combines various factors of production,
processes the raw materials, converts the raw materials into a finished
product and creates utility in the product and sells the product in the
market in order to earn profit.
2. An entrepreneur is a person with unusual foresight who can recognize
potential demand for goods and services. He reacts to economic change
who become an economic agent who transforms demand into supply.
3. Entrepreneurs are innovators who use the process to shatter the status
quo through new combination of resources and new methods of
commerce to satisfy consumer wants and who enjoys monopoly profits.
4. Entrepreneurs create or identify an opportunity and pursue it by taking risk
and then creating an economic organization for gain and /or growth.
5. Entrepreneurship is the result of disciplined, systematic process of
applying creativity and innovations to needs and opportunities in the
market place for attaining gain and / or growth.
6. Entrepreneurship is the quality of uncertainty bearing.coordination of
productive resources .introduction of innovations and the successful
provision of capital for gain or/and growth.
7. Entrepreneurship involves any deliberate activity that initiates, maintains
and grows a profit-oriented enterprise for production or distribution of
economic goods or services.

Prof. Swapan Das Gupta

(B) Attributes of an Entrepreneur :

Entrepreneurial personality is distinct from the personality of a common man. An
entrepreneur possesses special qualities, values, skills, attitudes, aptitudes,
capacities, capabilities and motivation.

Qualities of an entrepreneur are:

1. Confidence
An entrepreneur has to be a confident person.
projects:
a)
b)
c)
d)
e)

Confident personality

Confident Appearance
Confident Body Language
Confident Communication
Confident Work Style
Confident Relationship

2. Clear Perception
Perception is a)
b)
c)
d)

to understand
to interpret
to draw inference
to form an opinion

Normally people are having two distinct types of perception.

I Set perception is derived from the family background, geographical location of
upbringing, examples of peers and associates, education. All these give rise to a
set pattern of perception about the world---what it is and how it should be.
II Developed perception is the perception which is developed by keeping the
mind open and attitude as receptive to accommodate objective, impartial, and
positive ideas which are promptly assimilated to acquire a developed perception.
Entrepreneurs possess and keep on developing new concept and ideas to
imbibe and implement the same in real life.

Prof. Swapan Das Gupta

3. Inter-personal relations
The success of an entrepreneurial venture depends upon an effective and
cohesive team building. While dealing with associates, the difference in values
attitudes, aptitudes, beliefs, emotional and psychological patterns are to be kept
in consideration.
Personality traits are as follows:
a) Inhibitory Personality Some people have certain in-built inhibitions in terms
of their family background, social status, inferiority complexes etc.
b) Excitatory Personality - Some people are always free and fearless. They are
open minded, have clear thinking, possess strong convictions and are aware
of their wants and needs.
The entrepreneur should be competent to deal with both these categories.
Nature of people are classified in three categories:
i) Submissive - Submissive people are submissive in nature and are always
protective. They will never argue with anybody and will not take any decision
and are also reluctant to take any risk. They wait for things to happen and
they submit themselves to any situation.
ii) Assertive - An assertive person is positive, assured, open, communicative,
responsive and responsible. He has clear thought and has a high self image
and self respect. Often he creates opportunities and makes things happen.
iii) Aggressive - An aggressive person is autocratic or dictatorial. He is
dominating, sticks to his opinion and imposes the same on other. Even in
relationships, and aggressive person has one-sided imposed relationship. He
does not create opportunities and does not feel bad to snatch the
opportunities from others.
Attitudes:
People are usually classified having two types of personality
Positive attitude - The much referred status of a half filled glass exemplifies
the attitude of a person. Person with a positive attitude will mention the glass
as half full where as the person with negative attitude will mention the glass
as half empty.

Prof. Swapan Das Gupta

In order to develop a congenial inter personal relationship, it is necessary to

give positive strokes to other people to ensure cordial, smooth and,
professional relationship.
Types of Strokes:
i)
ii)
iii)
iv)
v)

Positive Strokes
Negative Strokes
Zero Strokes
Conditional Strokes
Unconditional Strokes

- Makes you feel encouraged and happy.

- Makes you feel sad and depressed.
- Makes you feel ignored and neglected
- Planned , expected, predictable
- Spontaneous and unpredictable

4. Leadership
An entrepreneur is the leader of the group. As a leader he has to take decisions,
bear risks, solve problems, decide goals, set tasks for implementation and build
a strong cohesive team. The classification of leaders:

Sl. No.

Leadership Style

Characteristics

1.

Autocratic

Dictator, task master

2.

Democratic

Participative, and consultative

3.

Laissez- Faire

Works by group consensus

4.

Bureaucratic

Procedure and formalities-oriented,

Red tape

5.

Paternalistic

Family environment

6.

Charismatic

Mystical, magical, attractive

7.

Missionary

Good fellowship and warm atmosphere

8.

Neuro- cratic

Eccentric, emotional

5. Risk Bearing Ability

Large number of people as per the study are identified as zero risk takers. They
are averse to taking any risk and are afraid of taking challenges. They select
easily attainable goals. In contrast entrepreneurs are hundred percent risk
takers. They are excited by the challenges and the risks involved. By attaining
the goal he desires excitement, satisfaction and happiness. This is the mindset
which is the basic requirement of an entrepreneur.

Prof. Swapan Das Gupta

6. Team Building Capacity

Team building capacity is a key element for entrepreneurial success. A
entrepreneur requires a variety of services and help from a large number of
people and institution , hence developing the team spirit and team building ability
is an essential requirement. To attain this quality, a positive and a constructive
attitude is needed. The following table illustrates the attitude:

For a Common man

For an Entrepreneur

WE

You

You

WE

7. Time Planning
Time planning is achievement planning. Time is a valuable resource in a
competitive environment. To have an effective planning, time scheduling, time
monitoring and time management is an important entrepreneurial skill. To
achieve - clear objectivity and making the priority for allocation of time are
essential.
8. Communication Skills
Communication is a distinctive skill of an entrepreneurs and is treated X factor
in the managerial skills. Communication is classified as follows:
i)
ii)
iii)

Verbal
Non-verbal
Body Language

9. Imagination, Creativity and Innovativeness

Prof. Swapan Das Gupta

Imagination, creativity and innovativeness are considered as the basic

ingredients of an entrepreneurial personality.

10. Goal Setting

A goal is the base building block of entrepreneurial career. Goal may be defined
as a dream with a deadline. Another definition - goal is an end towards which you
direct some specific efforts. Attributes of a goal are:
a.
b.
c.
d.
e.
f.
g.
h.
i.

It is identifiable.
It is clear and concrete
It is measurable
It is attainable
Goal is always referable to time
Goal is also related with cost factor
Goal is action oriented
Goal is realistic
Goal is the accomplishment

Goal setting is a process having four steps viz.

i) Identify opportunities for the goal
ii) Write down goal statements

iii) Develop the goal in sub-goals viz. essential goals, problem solving goals and
innovative goals. Once the sub goals are determined the time frame work for
each sub goals needs to be fixed.
iv) Preparation of the action plan. An action plan to achieve goal within a
specified time with desired standard of performance will be designed. It is a
step by step implementation program indicating the support system for
achieving the goa.

Importance of Entrepreneurship
a. One can make his own destiny.

Prof. Swapan Das Gupta

b. Entrepreneurship implies a difference than the norms, hence is

interesting.
c. Ones full potential can be reached .
d. Possibility and feasibility of profit
e. Successful entrepreneurs are recognized by the society.
f. Entrepreneur has the total freedom to do what he enjoys best.
g. Entrepreneurs act as a positive force by serving as the bridge between
innovation and market place
h. Entrepreneurs generate employment instead of being a job-seeker

Apparent disadvantages of Entrepreneurship

a.
b.
c.
d.
e.
f.

Uncertainty of income.
Losing the investment totally or partially.
Long hours and hard work in the initial period.
Lower quality of life till the venture is established
Complete responsibility which cannot be shifted to anyone else
Entrepreneurs act as a positive force by serving as the bridge between
innovation and market place

Remedies to overcome the disadvantages

a. Scanning the environment to ensure the feasibility of the business idea
b. Preparation of a Business Plan before starting a new venture

Mistakes of Entrepreneurship
a. Deficient Business Plan
b. Poor management in terms of product selection, poor marketing, poor
productivity, weak financial management and inventory control.