Entrepreneurship and the spirit of an Entrepreneur
Entrepreneurship refers to those who innovate, create, manage, and controls a business enterprise and ready to undertake the risk. The word entrepreneur is derived from a French word, Entreprendre which means ‘to undertake’.
Entrepreneurship is a process of designing and running a new business, it may be a small scale or a large scale. It totally depends on how an individual or team identify the opportunities and existing market conditions in order to develop new products and services to create wealth. And thereafter rotate the wealth in a smarter way to establish a qualified reputation in the market
An entrepreneur is always responsible for the success or failure of a venture. During tough market conditions and severe competition, an entrepreneur finds opportunity and directs the factors of production such as hiring human resources having right qualities for the right job, acquiring financial resources, gathering material resources and finding right machinery and offers products and services to reach the market conditions and needs of the customers.
The entrepreneur’s central activity is to create business by analysing internal and external environments. They anticipate the market imperfections and predict the uncertainty and develop new market strategies with the combination of pioneering, creation, innovation, and risk-taking analysis.
There are some the basic ideologies about an entrepreneurial activity.
The first fundamental activity states that the entrepreneurial action is a goal oriented human attributes, such as accepting risks and willingness to face uncertainty, which always differentiates an entrepreneur from the rest of the society.
The second fundamental idea tells about economic and environmental factors like changing market conditions, technological and demographic conditions.
The spirit of an entrepreneur is characterized by the following
As it known to everyone, success never comes itself, one has to chase it to make one’s own. Pure ambition and dedication always show the path towards success. The great ambition of entrepreneur makes them develop new strategies, explore their personality and leadership skills help them to remove personal & professional flaws.
Decision making is a cognitive process. That involves various steps like identifying the problem, gathering information from both internal and external environments, developing alternatives to find a way, evaluating alternative solutions, selecting one better alternative and executing. An entrepreneurial decision not only benefits a single person but energises the whole community. Decision making is not an easy task; it includes a lot of risks based on the scenarios. Sometimes, the entrepreneur has to overcome his fear to take the decision. It needs loads of guts to be a decision maker to satisfy the entire firm with his/her wise decisions.
Creativity is a hidden factor in any individual as those who can turn their ideas into acts to create wealth. It is an ability to perceive the world in different ways. Not only wealth, those innovative ideas will also promote the brand and its quality to the market & pulls the customers to buy their products or rely on their services. Creativity means transforming the new ideas or inventions into reality; however, it doesn’t stop there. Injecting these methodologies into the public is the difficult task which an entrepreneur should be capable of doing so.
Let me explain this in a better & different way, the application of a better solution, in order to meet the customers’ requirement with the changing market conditions, is termed as Innovation. A new or significantly improved product that creates value for the business and the success of any organisation depends on the innovations designed on various aspects. Nowadays, to hit the top rank in the market innovation is very much required to launch the product. Due to the heavy competition, everyone has to analyse, visualise and study the pulse of the world to impress them with their ideologies.
Finding opportunities even during tough & critical market conditions is a characteristic of an entrepreneur. Optimism and positive mindset of an entrepreneur always pull the business towards success. The beliefs of the optimists and the way how they perceive help them to work out for the best. Keeping hope and positive attitude in tough situations helps an entrepreneur to reach his targets to progress.
The most important characteristic of an entrepreneur is the positive attitude; it always leads an entrepreneur towards success. Creative and constructive thinking bring optimism and happiness. It motivates them to become successful entrepreneurs. Being conscious about what they do, how it reflects, what will be the impact should be the major focus to maintain the positive attitude. It is not a training given to learn, it should be gained by habituation.
Possess skills and knowledge
Additional education and knowledge on various aspects make easier to understand the upcoming products. Updating skills and knowledge give the self-confidence to handle severe competition. An entrepreneur required to have knowledge about various aspects, so that it becomes easier to direct, coordinate and control business operations.
Entrepreneurs need independence to take decisions to turn individual goals towards business goals. Rules and regulations always become barriers to create opportunities and to produce better products. Moreover, independence is not just given; the person has to gain the respect & trust from the fellowmen to give the independence to take the decisions.
While the ambition is the key to entrepreneurial success, enthusiasm motivates entrepreneurs to find that key. Enthusiasm makes them find better solutions to stabilise in the markets. Creativity, innovations all goes hand in hand due to the enthusiasm to know, understand and think what they see.
Absolute commitment creates emotional attachment towards goals; it not only inspires entrepreneurs but also the employees to put their efforts to reach the goals. Commitment is not just a word of mouth; it holds the reputation of the firm.
Communicating, motivating and showing the path to a group of people and creating a productive work environment, all these characteristics say that entrepreneurs have leadership qualities. Entrepreneurs motivate the employees to reach the organisation’s goals and they always put efforts to match team objectives with the business objectives.
Entrepreneurs are future oriented, they always think about ahead. The ability to look into the future makes them take right decisions. This unique characteristic including risk assessment, opportunity recognition, and persistence highlights the success of the entrepreneurs.
One should know about their strengths and weaknesses. Improving strengths and fighting against weaknesses, this makes to realise fantasies into real life situations without difficulty. This is only possible through self-confidence. Successful entrepreneurs always have a high degree of self-confidence.
Managers direct and force the employees to be efficient and productive, without a manager many employees can’t take decisions independently and cannot put their ideas for business development even though they are innovative. Successful entrepreneurs are self-motivated; they motivate themselves to achieve desired goals.
Most entrepreneurs believe that that there is no substitute for hard work. Entrepreneurs have to handle multiple tasks at a time then also willingness to do hard work makes them successful entrepreneurs.
If a business person hesitates to change decisions then such attitude never make a person as an entrepreneur. It is not possible to control the external environment; it always rules the market conditions, so entrepreneurs change their strategies according to the changing market conditions, tastes and preferences of the customers and to face competition.
Ready to undertake risk
Risk taking ability is one of the important traits of successful entrepreneurs. They always prefer to take moderate and manageable risks. Entrepreneurs are future oriented, so they prepare various strategies to face challenges and market uncertainty.
Types of entrepreneurs
These entrepreneurs understand market demand, create and manufacture products by converting raw materials. They convert ideas into reality and these are also called as business entrepreneurs.
Trading entrepreneurs act as middlemen such as wholesalers, dealers and retailers. They help to reach the finished products from the manufacturer to the customers.
Those who run science and technology based industries by innovative methods. Technical entrepreneurs always invest capital on research and development.
The term itself indicates non-technology, speaking alternatively; these entrepreneurs find new strategies in marketing and distribution.
Women or a group of women and having minimum 51% of the capital and 51% of the employment generated by women in their enterprises can start own business. Woman entrepreneurs create owns, directs, manages and controls business ventures and contributing their success to the economic development of the country.
Small scale, medium scale and large scale entrepreneurs:
The capital investment in an enterprise decides small scale, medium scale or a large scale entrepreneur. Depending on the nature of the firm, entrepreneurs may change their capital decisions.
An individual owns and operates a business enterprise and personally liable for all the busyness’s debts is termed as a sole proprietor. A sole proprietorship is always risk-oriented even though it has become popular because of its simplicity, ease of setup, and nominal cost.
More than one person owns and operates a business venture and here private and also government jointly undertakes some business ventures. Joint entrepreneurship always focuses on business expansion and it is one of the most effective strategies to reach business goals.
Entrepreneurship and innovation offer new products and better services to the customers and establishes the brand image to the business. Entrepreneurial growth never stops there itself; it leads to the economic development of the society.