According to the Oxford dictionary, an entrepreneur organizes, operates, and assumes risk in a business venture with the expectation of making a profit.
In this article We will details discuss about Entrepreneur, functions of Entrepreneur and their Characteristics.
Thus, an entrepreneur is a person who gets things done, starts a venture on his or her own, and can create something that produces an outcome such as wealth. The entrepreneur introduces something new into the economy, which may be a new product or process, or finds a new market for a product or process already known. In this article We will details discuss about Entrepreneur, functions of Entrepreneur and their Characteristics.
What is an Entrepreneur?
An entrepreneur is a person who takes the responsibility of initiating and establishing an enterprise of an organization under conditions of uncertainty. The person is hard-working optimistic, risk-taker, and sets high targets or goals and tries to achieve those amidst odd situations.
What are the Main Characteristics of an Entrepreneur
Entrepreneurs are known for their special characteristics which make them entrepreneurs. An entrepreneur may not possess all the characteristics mentioned here but may possess his own set of characteristics. It may be noted that there is no gender discrimination in becoming an entrepreneur, males, and females are equally competent to become entrepreneurs in any field.
1.Achievement motivation:
Entrepreneurs have high achievement motivation, Le. an urge for excellence and desire for success in competing with standards set by others as well as one set for oneself.
2. Personal drive and energy:
High personal drive and energy are important characteristics of entrepreneurs. They can work for long hours for days together with minimum basic amenities.
3. Self-confidence:
Entrepreneurs believe that they are capable of doing things and can control the actions and activities of other people.
4. Risk-taking:
An entrepreneur prefers to take calculated risks in dealing with a challenging situations.
5. Taking initiative:
An entrepreneur is prone to take initiative and explore all possibilities to reach the goal.?
6. Long-term involvement:
Entrepreneurs are found to set goals that demand long-term involvement and require perseverance.
7. Goal setting:
An entrepreneur sets goals for himself both in terms of what he wants to do and when. An entrepreneur realizes that time is a valuable resource and wants to utilize it fully to reach the goal in time.
8. Systematic planning:
An entrepreneur believes in planning and takes logical steps to achieve goals.
9. Dealing with failure:
Failure does not deter an entrepreneur, instead, he/she analyses the loss as feedback information and takes appropriate corrective steps. Entrepreneurs are oriented toward problem-solving.
10. Money as a measure:
Entrepreneurs see money (profit) as a measure of their success, as against the general stigma attached to money making.
11. Information seeking:
An entrepreneur possesses information-seeking behavior and is always on the lookout for relevant current information related to the product, process, market, etc. to take sound decisions.
12. Leadership:
An entrepreneur follows a style of persuasive leadership that motivates the team members to put in their maximum effort.
13. Use of resources:
Procurement and judicious utilization of resources are other important characteristics of a successful entrepreneur.
14. Networking:
Developing a good network of relationships with the persons, agencies, and organizations connected with the enterprise is an important characteristic of a successful entrepreneur.
What are the Functions of Entrepreneur
The important functions of an entrepreneur are presented below.
1.Idea generation:
This is the most important functions of entrepreneur. Idea generation is possible through the entrepreneur’s vision, experience, observation, training, and exposure. It suggests project identification.
2. Raising of funds:
All the activities of a business depend upon finance and its proper management. It is the responsibility of the entrepreneur to raise funds internally and externally.
3. Procurement of raw materials:
Procurement of raw materials is also an important function. An entrepreneur has to identify cheap and regular sources of supply of raw materials to reduce production costs.
4.Procurement of machinery:
The next function of the entrepreneurs is to procure the types of machinery and equipment for the establishment of the venture.
5. Market research:
An entrepreneur has to undertake market research persistently to know the details of the intended product, i.e. the demand for the product, the nature, and size of the consumer, the price of the product, etc. This functions of entrepreneur has most important for all entrepreneurship to grow your business.
6. Recruitment to manpower:
The entrepreneur has to recruit, staff according to the need and size of the organization. Training may also be imparted for capacity building.
7. Implementation of the project:
The identified project is to be implemented in a time-bound manner. All the activities from the conception stage to the commissioning stage are to be accomplished following the implementation schedule to avoid cost and time overrun as well as competition.
Types of an Entrepreneurs
Entrepreneurs in business are broadly classified according to the types of business, use of professional skills, motivation, growth, and stages of development. Desai (2011) classified entrepreneurs according to (1) types of business, (ii) use of technology, (iii) growth, (iv) stage of development, (v) area, (vi) organization, and (vii) gender. These are presented in brief:
1.Business Entrepreneurs:
The individuals who conceive an idea for a new product or service and then create a business by utilizing both production and marketing resources.
2. Agricultural Entrepreneurs:
Agricultural entrepreneurs undertake agricultural activities, such as raising and marketing crops through mechanization, value addition, and application of technology.
3. Veterinary, Dairy, and Fishery Entrepreneurs:
These entrepreneurs undertake activities such as raising and marketing livestock, dairy cows, and products as well as fish and fish products through mechanization, value addition, and application of technology.
4. Technical Entrepreneurs:
A technical entrepreneur develops new and improved quality goods because of his craftsmanship. He concentrates more on production than marketing.
5. First-Generation Entrepreneurs:
According to stages of development, a first-generation entrepreneur starts an industrial unit using an innovative skill. He is essentially an innovator, combining different technologies to produce a marketable product or service.
6. Women Entrepreneurs:
In 1988, for the first time, the definition of Women Entrepreneurs’ enterprise evolved. The most popular activity of women entrepreneurs was food processing followed by garment making.
7. Rural Entrepreneurs:
According to the area, entrepreneurs may be classified as rural entrepreneurs, urban entrepreneurs, or global entrepreneurs. Rural entrepreneurs include rural artisans, village industries, handicrafts, handlooms, etc.
8. Induced Entrepreneurs:
These entrepreneurs are induced or motivated to take up an entrepreneurial task due to the policy measures of the government that assist, incentives, concessions, and other facilities to start a venture.
9. Super-growth Entrepreneurs:
This category of entrepreneurs has shown enormous growth in performance by the liquidity of funds and profitability.
10. Fabian Entrepreneur:
Fabian’s entrepreneurship is characterized by great caution and skepticism in practicing any change. Such entrepreneurs do not want any change and do not desire to adopt new methods. They are shy and lazy. Their dealings are determined by customs, religion, tradition, and past practices.
Conclusions
I Hope are you understanding about the characteristics and functions of entrepreneur, It may help you to grow your business as well as small company or agricultural farms. If you have any questions related to entrepreneur please comment below.
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