INTRODUCTION TO ENTREPRENEURSHIP

A D e fi n i t i o n o f E n t r e p r e n e u r s h i p
Th e conc ept of entrepreneu rship has a w ide rang e of me anings. On the
o n e ex t r e m e a n e n t re p re n e u r i s a p e r s o n o f v e r y h i g h a p t i t u d e w h o p i o n e e r s
c h a n g e , o n t he ot he r ex t reme of defi nit ions , any one w ho want s t o w ork f or
hims e lf or he rs elf is c o n s i d e re d t o b e a n e n t r e p r e n e u r.
T h e w o r d e n t r e p r e n e u r o r i g i n a t e s f r o m t h e Fr e n c h w o r d , e n t r e p r e n d r e ,
w h i c h m e a n s " t o u n d e r t a ke . " I n a b u s i n e s s c o n t ex t , i t m e a n s t o s t a r t a
b u s i n e s s . T h e M e rr ia m -Web s t er D ic t i on a ry p res en t s t h e d efi n i t i o n of an
e nt re p ren e ur a s on e w ho o r g a n i z e s , m a n a g e s , a n d a s s u m e s t h e r i s k s o f a
b usiness or ent erprise .
Sc hum peter 's View of E ntrepreneur ship
A us t ri an ec onomis t J os eph Sc hump et er 's defi n it ion of ent rep ren eurs hip pl ac ed
an e m p h a s i s o n i n n o v a t i o n , s u c h a s :
.

new products

new product ion methods

n ew m a r ke t s

new f orms of o rgan iz at ion

W e a l t h i s c re a t e d w h e n s u c h i n n o v a t i o n r e s u l t s i n n e w d e m a n d . Fr o m
t h i s v ie w p o in t , o n e c an de fi n e t h e f unc t io n of t h e en t re p ren e u r as on e of
c om bi n in g v a r i o u s i n p u t f ac t o r s i n a n i n n o v a t i v e m a n n e r t o g e n e r a t e v a l u e
to the custo mer w ith the hope that this v alue w ill exc eed the c ost of the
i n p u t f ac t o r s , t h u s g e n e r a t i n g s u p e r i o r re t u rn s t h a t re s u l t i n t h e c re a t i o n
of wealth.
Entre prene urshi p vs. Small Business
M a n y p e o p l e u s e t h e t e rm s " e n t re p re n e u r " a n d " s m a l l b u s i n e s s ow n e r "
s y n o n y m o u s l y. W h i l e t h e y m a y h a v e m u c h i n c o m m o n , t h e r e a r e
s i g n i fi c a n t
diff erenc es betw een the ent repreneurial v enture and the small business.
E n t r e p r e n e u r i a l v e nt u re s d i ff e r f ro m s m a l l b u s i n e s s e s i n t h e s e w a y s :

A m o u n t o f w e a l t h c re a t i o n - r a t h e r t h a n s i m p l y g e n e r a t i n g a n i n c o m e
s t re am t hat repl ac es t rad it ion al emp loy ment , a s ucc es sf ul
ent rep ren euri al v en t u re c re at es s u bs t an t i a l w e a lt h, t y pi c a l ly i n exc es s
o f s ev er a l m il l i on do lla rs of profi t .

Spe ed of w ealt h c re at ion - w hil e a s ucc es sf ul s mal l bus ines s c an gener at e

s e v e r a l m i l l i o n d o l l a r s of p r o fi t o v e r a l i f e t i m e , e n t r e p r e n e u r i a l
w e a l t h c re a t i o n of t e n is ra p id ; f o r ex a m pl e , w it h in 5 y e a rs .

R is k - t h e r is k o f an e nt re p ren e u ri a l v e nt ure mu s t be hi gh ; o t h e rw is e, w i t h t h e
inc ent iv e of su re profi ts many ent repreneurs w ould be purs uing t he idea and t he
o p p o r t u n i t y n o l o n g e r w o u l d ex i s t .
Innovati on - entrepreneu rs hip often involves s ubstanti al innovation beyond
w h a t a s m a l l b u s i n e s s m i g h t ex h i b i t . T h i s i n n o v a t i o n g i v e s t h e v e n t u r e t h e
c o m p e t i t i v e ad v a nt a g e t ha t res ul t s in w e a lt h c re a t i o n. Th e in n ov at i on m ay b e in
t he p rod uc t o r s e rv ic e i t s el f , or i n t he b us i n es s p roc es s es us ed t o d e li v er i t .
Entrepreneur
A pe rs on who is ab le t o ident ify bus ines s opp ort unit i es and imp lem ent ac t ions t o
max imize

on

the

opp ortuniti es.

An

e n t re p r e n e u r

initi ates

enterp rise

c re a t i o n , u n d e r t a ke s r i s k s , a n d m a n a g e s re s o u rc e s t o e s t a b l i s h a n d o p e r a t e
a b u s i n e s s en t e r p ri s e t ha t i s c ap ab l e o f s el f- s us t a in a nc e.
D e fi n i t i o n Ac c o r d i n g To J . B . S a y
Acc o rding t o a Frenc h ec onom ist , J . B . Say , an ent repreneu r is a pers on w ho shift s
e c o n o m i c r e s o u rc e s o u t o f a n a re a o f l o w e r p ro d u c t i v i t y i n t o a n a re a of h i g h e r
p rod uc t i v i t y an d gre a t e r y ie l d.
Entrepreneur In Devel oping Economi es
I n t h e c a s e o f a d e v e l o p i n g e c o n o m y l i ke o u r s ( Ke n y a ) t h e c o n c e p t of a n
e n t re p re n e u r

is

understood

d i ff e re n t l y.

An

e n t re p re n e u r

in

dev elop ing

e c o n o m y i s o n e w h o s t a r t s a n i n d u s t r y ( o l d o r n e w ) , u n d e r t a ke s r i s k s , b a r e s
u nc e r ta i nt i es an d a lso performs the man age ria l functi ons of dec ision-ma king
a n d c o o rd i n a t i n g .
H e a l s o p u t s n e w p ro c e s s e s b a s e d o n t e c h n o l o g i c a l r e s e a rc h i n t o o p e r a t i o n .
H e i s c a l l e d a n e n t r e p r e n e u r e v e n if h e i m i t a t e s a n y t e c h n i q u e s o f
p ro d u c t i o n f ro m a d ev e l op e d ec on om y.

T h e t e r m e n t re p re n e u r h a s n o w b e e n a t t r i b u t e d t o a l l s m a l l i n d u s t r i a l i s t s ,
t r a d e r s a n d a g r i c u l t u r a l i s t s . H e n c e, a l l p e o p l e w h o a re g a i n f u l l y e n g a g e d i n
work of ma nu fa ct ur in g, di st ri b ut io n o r serv ic e in ot her s ect or s a re c al l ed
ent rep ren eur s. Th e en t rep ren eu r ca n b e co nsi d ered a s the f ou rt h f acto r o f
e n t e r p r i s e . T h e e n t e r p r i s e i s t h e b a s i c u n i t o f a n e c o n o m i c o rg a n i z a t i o n . I t
p ro d u c e s

goods

and

serv ic es

wort h

m ore

th an

the

res ou rces

used.

E n t e r p r i s e i s a n u n d e r t a k i n g , e s p e c i a l l y o n e w h i c h i n v o l v e s f o u r f ac t o r s ,
l a n d , l a b o r , c a p i t a l a n d n o w t h e e n t r e p r e n e u r. I t i n v o l v e s t h e w i l l i n g n e s s t o
a s s u m e r i s k s i n u n d e r t a k i n g a n ec on o mi c a c t iv it y.

Image
I t a ls o in v o lv e s i nn ov a t i on , r i s k t ak in g , a nd d ec is io n ma k i ng . E nt re p re ne u rs a re
t he p e r s o n s w h o s t a r t n ew e n t e r p r i s e s . T h e e n t re p re n e u r a n d e n t e r p r i s e a r e
L i n ke d a s t h e s uc c e s s o f a n e n t e r p r i s e d e p e n d s o n t h e e n t r e p r e n e u r.
Intrapreneur
T h i s i s a n e m p l o y e d s t a ff e . g. m a n a g e r w h o i n n o v a t e s f o r t h e c o m p a n y a n d
t a ke s r i s k s o n l y o n b e h a l f o f t h e e m p l o y e r. H e i s t h e r e f o r e a n i n t r a c o m p a n y ent rep ren eur f or wh om t he term i nt ra p ren eu r is co in ed.
E n t r e p r e n e u r s a r e , t h e re f o re , t h e m a i n e n t re p r e n e u r s i n l a rg e c o m p a n i e s
w h o i n n o v a t e a n d t a ke r i s k s o n be h al f o f t he i r em p l oy e r.
T h e s e a r e c re a t i v e p e o p l e us u a l l y w o r k i n g t o g e t h e r a s t e a m s , w h o f u nc t i o n a s
E n t r ep r en eu r s w i t h i n co r p o r a t i o n s. T h e i d ea i s t o u s e a co m p a n y ' s ex i s t i n g
r e s o u rc e s s uc h a s h u m a n , fi n a n c i a l a n d p h y s i c a l r e s o u rc e s t o l a u n c h n e w
p ro d u c t s an d ga i n mo re p rofi t .

E ntrepreneur ship
T h i s i s t h e d e v e l o p m e n t w i t h i n a l a r g e c o - o p e r a t i o n o f i n t e r n a l m a r ke t s
an d rel at iv ely s m all au t on om ou s b u s in es s u n it s p rod u c in g p rod u c ts ,
s e r v i c e s o r t e c h n o l o g i e s t h a t e m p l o y t h e fi r m s ' r e s o u r c e s i n a u n i q u e w a y.
I t g i v e s t h e m a n a g e r s o f t h e c o - o p e r a t i o n t h e f re e d o m t o t a ke i n i t i a t i v e s
a n d t r y n e w i d e a s . I t i s e nt re p ren e ur s h i p w it hi n a n ex i s t in g bus in e s s .

E N T R E P R E N E U R S H I P A N D I N N O VAT I O N
Creativity is the abi lity to gen erate id eas whi le innovativ eness is the ab ility
t o i mp l e m en t t h e a pp ro p r i at e i d ea s . A n e nt rep re n eu r is ex p e c t ed t o b e c re a t i v e
a nd

innov ative

so

as

to

be

able

to

solve

p ro b l e m s ,

cope

with

b us i n e s s

c h a l l e n g e s , p l a n a n d i m p l e m e n t a c t i v i t i e s s uc c e s s f u l l y.
A n e n t re p re n e u r s i n n o v a t i v e n e s s i s r e fl e c t e d i n t h e f o l l o w i n g w a y s :

I nitiat ive

Initiat ing new ideas

is

the

ab ility

to

start

ac ting

on

an

i d ea .

En trep ren eu rs

are

c rus ad er s of new ideas. They do not wait for conditi ons to be perfect to act
o n a n e w i d e a . Th ey act on t hern and s olv e obs t ac l es and diffi c ult i es as t hey
a ris e. A s a res ult an e n t re p re n e u r c re a t e s a n a d v a n t a g e o v e r t h e i r c o m p e t i t o r s .

S e a rc h i n g f or n ew i n f o rm at i on

A n e n t re p re n e u r i s a l w a y s o p e n f o r i n f o rm a t i o n w h i c h f ac i l i t a t e s t h e
g e n e r a t i o n o f n ew id e as f or t h e bus in e s s .

Tr a n s l a t i n g i d e a s a n d i n f o r m a t i o n i n t o a b u s i n e s s
venture

E xc ell ent ideas and inf ormat i on are not enou gh. A n " av er age" ide a act ed upon and
dev e lop ed is f ar bet t er t han a "v e ry go od" idea t hat dies bec aus e it is not
f o l l o w e d u p. E nt re p re n e u r s a r e a c t i o n - o r i e n t e d a n d t r a n s l a t e g o o d i d e a s t o
actions.

In quisi tiven ess

An entrepreneur is always curious to know what is happ ening in the business
e n v i ro n m e n t . T h i s a b i l i t y of b e i n g i n q u i s i t i v e a n d s e n s i t i v e t o t h e e n v i r o n m e n t
upgr ades

the

e n t re p re n e u r ' s

lev el

of

thinking

and

approach

to

business

p ro b l e m s .

Pers everance

E nt repreneurs do not giv e in t o f ailu re. Rat h er, t hey s eek out t he f ault s and
w ea kn e s s

a nd

t he n

c orre c t

t he m.

T he y

p e rs ev e re

in

their

e ff or t

to

o v e rc o m e p ro b l e m s a n d s e t b a c k s a n d e v e n t u a l l y w i n.

Menta l

blocks

innov ativeness.

Re m ov in g m en ta l b lo c k s a nd a c c e pt an c e
and
Som e

acceptance
of

these

are
are

traits

that

traditional

inhib it

m ethods

c re a t i v i t y
and

and

be li efs.

An

e n t re p re n e u r h a s t h e a b i l i t y t o r e m o v e t h e s e b a r r i e r s a n d e n c o u r a g e c l e a r
t h i n k i n g a n d i n d e p e n d e n c e i n h i s o r he r v ent u re.

E N T R E P R E N E U R I A L C O N T R I B U T I O N T O E C O N O M I C D E V E LO P M E N T
U t il i z a t io n o f Lo c al R es o u r c es
Loc a l res ou rces, s om e of whi ch wo ul d be o th er wi se d ec l a red us el ess, a re
p ut to m ore g ain f u l u s e. Th e v alu e of t h e res ou rc es is im p rov ed . For
e x a m p l e , t h e c o n v e r s i o n o f w a s t e p r o d u c t s s u c h a s n y l o n p a p e r s t o m a ke
p l a s t i c p o s t s , b ot t l e t o ps f ro m us e d bo t t le s t o ma ke d oo r c u rt ai ns , s is a l fi b re
t o m a ke t he w or ld ' s f am ou s " c i on d o" et c .
P r o m o t i o n o f Te c h n o l o g y
E n t r e p r e n e u r s a re v e r y c re a t i v e h e n c e t h e y c o nt r i b u t e t o t h e u t i l i z a t i o n a n d
d e v e l o p m e n t o f t e c h n o l o g y. Fo r ex a m p l e , t h e d e v e l o p m e n t o f t h e e n e rg y

s a v i n g j i ko , w h e e l c h a i r s , w a s h i n g m a c h i n e s , v e g e t a b l e a n d f r u i t c u t t i n g
m a c h i n e s , c ha rc o a l ref r ig e r a t o rs e t c .

C a p i t a l Fo r m a t i o n
E nt rep ren eu rs h el p in t he creat i on o f w ea lt h fo r t he co un tr y t hro ug h jo b
c re a t i o n

a s e mp l oy e es

s av e t he i r s al a r i es a nd w a ge s t h rou gh t he ba n ki n g

s y s t e m an d ot he r s y s t e m s ,

th ey

contribu te t o c ap it al form at ion ). As t he

e n t r e p r e n e u r s p a y t a x a n d s a v e t h e i r e a rn i n g s t h e y t o o d i re c t l y c o nt r i b u t e t o
c a p i t a l f o rm a t i o n .

Crea tion Of Emp loy me nt O pportun iti es

E nt rep re n eu rs

he lp

in

s o lv in g

t he

u ne m p lo y m e nt

pro b le m .

M a j o ri t y

of

i nd i g en ou s Ke n y a n e n t r e p r e n e u r s a r e i n S m a l l S c a l e a n d J u a K a l i S e c t o r
w h i c h i s a m a j o r e m p l o y e r i n t h e c o u n t r y.
Promotion of an Entre pren euria l Culture
By

p or t r a y i n g

s uc c es s f u l

im a g es ,

u pc o m in g Ke n y a n g e n e r a t i o n .

en t re p ren e u rs

A country

b ec om e

whic h emb rac es

mo d e ls

to

the

e n t re p re n e u r i a l

c u l t u re i s b o u n d t o b e ec o n o m i c a l l y s t a b l e .
E xpo r t Pro mo tio n
M a n y p ro d u c t s m a n u f a c t u re d b y t h e Ke n y a n J u a K a l i / S m a l l E n t e r p r i s e s e c t o r
fi n d t heir w ay t o f ore ign mar ket s and in ret urn Keny an ent rep ren eurs ident ify
f oreign m a r ke t s . T h ro u g h t h e s e a c t i v i t i e s , e n t re p re n e u r s a r e a b l e t o e a rn t h e
c o u n t r y f o re i g n e x c h a n g e .
F a v o u r a b l e B a l a n c e o f Pa y m e n t
Th e improv em ent of the J ua Kal i Sec t or has s een a reduc t ion in the r at e of los s
t h r o u g h i m p o r t o n l y. T h e r e i s n o w a b a l a n c e b e t w e e n t h e i m p o r t a n d
ex p o r t bus ines s.

The rate of improv ernent of indust ries in Kenya has gone up as a res ult of an
i m p ro v e m e n t i n t h e J u a K a l i a n d S rn a l l S c a l e E nt e r p r i s e s s e c t o r.

I m p r o v e d M a r k e t i n g o f Lo c a l l y P r o d u c e d P r o d u c t s

T h e i rnp ro ve m e nt i n th e J ua Ka l i s ec t or ha s res ul t ed in a n i m p rov em e nt in

t he

internal

and

ex t e rn a l

m a r ke t s .

With

the

c u r re n t

competiti on,

every

b u s i n e s s i s c o m p e l l e d t o p r o d u c e q u a l i t y p ro d u c t s / s e r v i c e s a n d a g g r e s s i v e l y
m a r ke t t h e s a m e .

Im prov e d In frastructur e
C reat i on of bus ines s es l eads t o i mprov ed c it i es and t ow ns w hic h in t urn res ult in
i m p ro v e m e n t o f r o a d s , b a n k i n g s e r v i c e s , t e l e p h o n e n e t w o r k , e l e c t r i c i t y e t c .

P r o m o t i o n o f Ta l e n t a n d Ho b b i e s
T h e J u a K a l i a n d S m a l l Sc a l e E n t e r p r i s e S e c t o r e n c o u r a g e s y o u n g p e o p l e t o
ex p l o i t t hei r t alent s.

I m pr ove d Grow th I n Gross Dom es t ic Pro duc t

T h e re is now f a v o ur a b l e t r ad e i nt e rn a l ly a nd t h is ha s s e en a n i nc re as e in
e c o no m ic grow t h.

Self-rel iance
Entrepreneurs ena ble citizens to survive comfortably without too much
b o rr o w i n g .
E N TR E P R E NE U R S H I P A N D S E LF- EM P LOY ME N T
T hi s is a s t a t e i n w h ic h a p er s o n pu t s h is eff o r t i n a bus in e s s or a n ac t iv it y
t ha t b e l o n g s t o h i m / h e r. H e o r s h e w o r k s i n d e p e n d e n t l y a n d e a r n s a
l i v i n g f r o m i t . A n en t rep re n eu r i s on e w ho rec og ni s e s a n o pp o rt un it y an d
t a kes t he r is ks as a bu s i ne s s ow n e r of pro v i d in g a ne e d ed p rod uc t o r s e rv ic e
f or w hic h an ad e qu a t e re w a rd ( p ro fi t ) i s re a l i s e d . T h u s b o t h r i s k a n d p ro fi t
a re i n v o l v e d .
T h e s e d e s c r i p t i o n s b o t h fi t e n t re p re n e u r s h i p a n d s e l f- e m p l o y m e n t s o t h e y
a re o n e a n d t h e s a m e , a l t h o u g h e n t re p re n e u r s h i p i s a m o r e s e r i o u s a n d
d e l i b e r a t e l e v e l o f s e l f- e m p l o y m e n t .
Fa c t o r s To C o n s i d e r B e fo r e G o i n g I n t o S e l f- e m p l o y m e n t

Business Idea

S k i l l s ( Te c h n i c a l / M a n a g e r i a l )
. Mar ket

C ap i ta l (Op en i ng , Wor k in g o r Lo ng - term)

M a c h i n e r y ( Te c h n o l o g y )
. Raw materials

Loc ation (Strategic)

Le
gal
Iss
ue
s .
Co
m
pe
tit
io
n

R E A S O N S F O R S E L F - E M P LOY M E N T
Ne ed to im prov e personal income
B esi d es th e in ab i l it y t o sec ure a ny typ e of em p l oy m en t t hi s i s th e mo st
b a s i c r e a s o n w h i c h c a u s e s m a n y l o w i n c o m e e a rn e r s t o d i r e c t l y e m b a r k o n
b u s i n e s s b y w ay of s e lf e mp l oy m en t . I nfl a t i o n of t e n im p ai r s t he a bi l i t y of lo w
i nc om e e a rn er s t o aff ord bas ic nec es s it ies of lif e t o an ex t ent t hey hav e t o loo k
f or alt e rn at iv e w ays of e n s u r i n g s u r v i v a l , a n d t h i s m a y l e a d t h e m t o s et u p
small
bus ines s .
In abi lity to secure a desirable job
T h e nu mb e r of Ke ny an s e l i gi b l e f o r em p lo y m e nt i s v er y h ig h. Th e re a re n ot
e n ou gh e m p l o y m e n t o p p o r t u n i t i e s i n t h e f o rm a l s e c t o r. T h e s m a l l b u s i n e s s
s e c t o r h a s t h e c a p a c i t y t o c re a t e m a n y j o b s .
I n fl u e n c e o f o t h e r s

A l t h o u g h m a n y a s p i r i n g e n t re p re n e u r s m a ke a p e r s o n a l d e c i s i o n t o g o i n t o
business th ere a re al so st ron g in d ic at io ns th at ju st as ma ny i f n ot mo re g et
c o u r a g e t o t a ke t h e p l u n g e a s a r e s u l t o f i n fl u e n c e o r i n s p i r a t i o n g a i n e d
f ro m c l o s e a s s o c i a t e s s u c h a s f ri e nd s o r re l at iv e s a l re a dy in b us i n es s .
To f ul fi l a l if e lo n g a m b i ti o n
T h e r e a re
business

thos e

peop le in

at

s o me

de fi n ed

e m pl o y m e nt

mi g ht

s e e m.

s oc i e t y
po i nt
Th es e

whose ulti mate

life

no

pe o p l e

m a t t er
a re

goal

ho w

us u al l y

is

to go into

at t r ac t i v e
hi gh ly

w ag e

m ot iv at e d

i nt e rna l l y a nd d o no t n e ed ex t r in s i c m ot iv a t o r s t o g o in t o b us i n es s . Th e y a re
o ft en h ig h ac hi ev e rs w h o a i m f o r s e lf f u l fi l m e n t w h i c h c o m e s f ro m d o i n g
someth ing unique.
To s e e k m o r e i n d e p e n d e n c e
T h es e a re peo pl e wh o prefer t o b e in tro du ced to a ta sk wi th ou t b ein g led
e v e r y s t e p re q u i r e d f o r t h e a c c o m p l i s h m e n t o f t h e t a s k. T h e y l i ke t o b e l e f t
a lone t o t hink and dev el op the ir ow n in it iat iv e. When guid ed c los ely they f eel
b e l i t t l e d , f r us t r a t e d a n d i m p a t i e n t . O c c a s i o n a l l y t h e s e p e o p l e r e b e l a n d
w i l l o f t e n e n d u p i n s e l f e m pl o y m e nt if t h e p re s e nt op p o rt un it y d o es no t g iv e
t he m t he o pp o r t u ni t y t o s e e k c ha l l en g e an d c on t r ib ut e t h e ir o w n id e as .
Love for adve ntur e
I nn ov at iv e peo p l e thr iv e o n ex pl o r in g n ew i d eas an d op p o rt un it i es ev en i f
t h e o u t c o m e m i g h t b e u nc e r t a i n a n d r i s ky. T h e y d e r i v e s a t i s f a c t i o n f ro m t h e
t hri lls that
a r i s e f ro m a m i x t u r e o f s uc c e s s a n d u n c e r t a i n i t y.
Dissatisf action with wage em ployment
T hi s ma y be a s a re s u lt of ,
.

p oor p ros p ect s of career ad vanc ement

de layed p romot ions

l a ck of rec og n it i on o r ap p rec i at i on of sp ec ia l a cco mp l is hm ent s

poor terms of servic e

unsatisf act ory working c onditions

pend ing redun danc y

Favourable enviro nment
T h e s e i nc l u d e

a pp ro p r i at e in cent iv es eg a ccess to cred i t f aci l it i es

laws g ov erning s mall en t erp ris e creat ion

access t o raw mat erials and machinery

g o od i nf ra st ru ctu re eg ro a ds t el eph on e n etw o rk s el ect ri ci ty

in ex p en s iv e c os t of lab ou r
CHARAC TE RIS TICS OF E NTRE PRE NE URS
In troduction
M . M . P. A K h o u r i , f o r m e r l y E x e c u t i v e D i r e c t o r , N a t i o n a l I n s t i t u t e f o r
E nt rep ren eu rs hip and S mall Bus in es s Dev elop men t (NIES BU D), New
D e l h i , desc r ibes an ent re preneur in w ords t hat c le arly bring out t he
c harac t er is t ics of an e n t r e p r e n e u r. H e d e s c r i b e s e n t r e p r e n e u r " a s a
c h a r a c t e r w h o c o m b i n e s i n n o v a t i v e n e s s , r e a d i n e s s t o t a ke r i s k , s e n s i n g
o p p o r t u n i t i e s , i d e n t i f y i n g a n d m o b i l i z i n g p o t e n t i a l r e s o u rc e s , c o n c e rn s f o r
e x c e l l e n c e a n d w h o i s p e r s i s t e n t i n a c h ie v in g t he g o al . "
Charac teristics
1.

A n ey e f o r op po r t u ni t y: M an y e nt re p ren e ur s s t a rt by fi nd in g a ne e d an d
q ui c k ly s at i s f y i ng i t . T he y a re al w a y s a le r t t o op po r t u ni t i e s . Th ey a re
v er y m u c h q u i c k t o s e e a n d g r a b o p p o r t u n i t i e s . T h e y p l a n
i n t e l l e c t u a l l y a n d a n t i c i p a t e c a re f u l l y h o w t o a c h i e v e t h e i r g o a l s i n
r e a l i z i n g a n o p p o r t u n i t y.

2.

I n d e p e n d e n c e : E v e n t h o u g h m o s t e n t r e p r e n e u r s k n o w h o w t o w o r k w it h i n
t h e f r a m e w o r k f o r t h e s a ke o f p r o fi t s , t h e y e n j o y b e i n g t h e i r o w n
b o s s . T h ey li ke d oi ng t hi ng s t he i r ow n w a y. Th e c h ar a c t e r i s t i c s o f
i nd e p en d en c e a n d t h e s e n s e o f d e t e r m i n a t i o n a re t h e d r i v e s t h a t
m a ke

a n e n t re p re n e u r

start their own business. In a way, their own

business fulfi lls their need for i n d e p e n d e n c e .

3.

An ap p et it e fo r ha rd wo r k: M ost en t rep ren eu rs st ar t ou t wo r ki n g lo ng ,

h a rd , h o u r s w i t h l i t t l e p l a y. E n t re p re n e u r s a r e a l w a y s a t w o r k e v e n
w h e n ot he r p eo p l e ha v e s t op p ed . T h ey a re pe r s i s t en t a nd s t ron g ly
b e li e v e t ha t w o r k i n g h a r d w i l l h e l p t h e m a t t a i n t h e i r g o a l s . T h e y
h e n c e f o c u s o n t h e end res ult .

4.

S e l f- c o n fi d e n c e : E nt r e p r e n e u r s m u s t d e m o n s t r a t e ex t re m e s e l f c o n fi d e n c e
i n o rd e r t o c o pe w it h a l l t he r is ks o f o pe r a t i ng t he i r ow n bu s i ne s s .
M os t s u c c e s s f u l e n t r e p r e n e u r s a r e c o n fi d e n t o f a c h i e v i n g r e a l i s t i c
a n d c h a l l e n g i n g g o a l s . T h e y g e t i n t o b u s i n e s s o r i n d u s t r y w it h a
h i g h l e v e l o f s e l f- c o n fi d e n c e . T h i s , c o u p l e s w it h a s e n s e of
e ff e c t i v e n e s s u l t i m a t e l y c o nt r i bu t e t o t he s uc c es s of t h e v e nt u re .

5.

D is c ip l in e : S uc c es s f ul en t re p re n eu rs res is t t he t e mp t a t i o n t o do w ha t is
u n i m p o r t a n t o r t h e e a s i e s t b u t h a v e t h e a b i l i t y t o t h i n k t h ro u g h
w h a t i s t he m ost es s ent i al. E nt rep ren eurs a re ec onomic a lly effi c ient , do
not l ike t o w as t e t i me an d t he y li ke t o s ee w or k c om p l et ed . Th e y us e
d is c ip l in e a s a g ui d e t o t h ei r d es t i na t i o n.

6.

J ud ge m en t : Suc c es s f u l en t rep re n eu r s ha v e t h e a bi l i t y t o t hi n k q uic k ly a nd

m a ke a w i s e d e c i s i o n . T h i s i s p o s s i b l e b e c a u s e t h e y h a v e a p l a n , t h e y
h av e a n eco no m ic g o a l, th ey kn ow wh at t hey wa nt an d t hey kn o w wha t
t h e y c an do.
E n t r e p r e n e u r s a r e u n a ff e c t e d b y p e r s o n a l l i ke s a n d d i s l i ke s . T h e y s t a n d
b e y o n d t h e s e t y p e s o f p re j u d i c e s a s t h e y a re re a l i s t i c i n t h e i r a p p ro a c h. A t
t h e t i rn e o f t h e i r n e e d t h e y s e l e c t ex p e r t s r a t h e r t h a n f r i e n d s a n d re l a t i v e s
to

assist

them.

They

usually

avoid

emotional

and

sensitive

attitude

t o w a r d s t h e i r b us i n e s s o r p r o b l e m .
7.

Ab i li ty to acc ep t cha ng e: Ch an ge o ccu rs frequ en t ly when yo u o wn yo ur

o wn bus in ess, t he ent rep ren eu r t hr iv es o n ch an g es an d th ei r b us in es s
g r o w. A n e n t r e p r e n e u r m a y n e e d t o c h a n g e h i s / h e r p l a n s i n o rd e r t o h e l p
t h e b u s i n e s s g r o w. E n t r e p r e n e u r s l o o k a t m a n y s o l u t i o n s t o t h e i r

p ro b l e m s . T h e y r e a l i z e t h a t o t h e r p e o p l e m a y k n o w h o w t o d o s o m e t h i n g
b e t t e r. E n t re p r e n e u r s c a n c h o o s e t h e b e s t w a y t o d o s o m e t h i n g , e v e n i f i t
i s d iff e re nt f ro rn ho w t he y w ant t o do i t .
8.

M a ke st res s w ork f or t hem: On t he rol le r coas t er t o bus ines s s ucc es s, t he

en t rep ren eu r oft en c op es b y f oc u s in g on th e en d res u lt an d n ot t h e
p roc es s o f g et ti ng th ere. Ent rep ren eur s a re cap a bl e o f w or k in g fo r l o ng
h o u r s a n d s o l v i n g d i ff e r e n t c o r n p l e x i t i e s a t t h e s a m e t i m e . A s t h e c a p t a i n
of an industry or an enterprise, an entrepreneur faces a numb er of
p ro b l e m s a n d i n r i g h t m o m e n t h e t a ke s r i g h t d e c i s i o n s w h i c h m a y i n v o l v e
p hy s ic al a s w el l a s rn en t a l s t res s .
9.

Need to ac hiev e: Alt hough they keep an " ey e" on profi t,

t his is oft en s ec o n d a r y t o t h e d r i v e t o w a rd p e r s o n a l
s uc c e s s . E nt re p re n e u r s h a v e st rong des ire t o ac hi ev e
high er goa ls. Thei r inner s elf mot iv at es t heir beh av iour
t ow ards high ac hiev ement . To an ent repreneu r, winning
is a c h i e v e m e n t .

10.

Foc us on p rofi t s : Suc c es sf ul ent rep ren eurs a lw ays hav e

t he profi t m a rg in i n s ig ht an d kn ow t h at t h ei r b us i n es s
s uc c es s i s m e as u red by profi t s .

11.

R is k- be aring : Ent repreneu rs a re t he pers ons w ho t a ke dec is ions under

u n c e r t a i n t y a n d t h u s t h e y a r e w i l l i n g t o t a ke r i s k , b u t t h e y n e v e r g a m b l e
with the results. They choose mod er ate risk rathe r than pl ay wild
g a m b l e . T h e y , t h e r e f o r e , u n d e r t a ke c a l c u l a t e d r i s k w h i c h i s h i g h e n o u g h t o
b e exc it in g, bu t w i t h a f a ir l y re a s o n ab l e c h an c e t o w i n.

12.

Loc us

of

c ont rol:

Clos ely

consistent

wit h McClelland's

t heory

of

need f or

a c h ie v em e nt , is t h e b e li e f in in t e rn a l l oc us of c on t ro l. Ac c o rd i ng t o Ro t t er ' s
l oc us o f c on t ro l t he o ry , an i nd i v i du a l pe rc e i v e s t h e o ut c om e of a n ev e nt a s
b e i n g e i t h e r w i t h i n o r b e y o n d h i s p e r s o n a l c o n t ro l . E n t r e p r e n e u r s b e l i e v e
i n th eir ow n ab i l it y to c ont ro l t he c ons eq u en ces of t hei r end ea vo ur by
i n fl u e n c i n g t h e i r s o c i o - e c o n o m i c e n v i r o n m e n t r a t h e r t h a n l e a v e e v e r y t h i n g
t o l u c k . T h e y s t ro n g l y b e l i e v e t h a t t h e y c a n g o v e rn a n d s h a p e t h e i r o w n
des t iny.
13.

Creative

and

Innovators:

Successful

en t re p ren eu rs

are

innovators.

T h e y c o n s t a n t l y p u t t h e i r e ff o r t s i n i n t r o d u c i n g n e w p r o d u c t s , n e w m e t h o d
o f pro du c t io n, o p en in g new m a r ke t s an d re o rg an i z i ng t he en t e r p r is e. T he y
a l w a y s t r y n o t t o b e s a t i s fi e d w i t h c o nv e n t i o n a l a n d r o u t i n e w a y of d o i n g
t h i n g s , b u t a l w a y s t h i n k o f h o w t h e y c a n d o t h e m i n a b e t t e r w a y.
14.

L e a d e r s h i p : E nt re p re n e u r s s h o u l d p o s s e s s t h e q u a l i t y o f l e a d e r s h i p .
L e a d e r s h i p i s t h e a b i l i t y t o ex e r t i n t e r p e r s o n a l i n fl u e n c e by m e a n s o f
c om m u n ic at i on t ow a rd s t h e ac h i ev em en t of g oals . E n t rep ren eu rs as
l e a d e r s s h o u l d p ro v i d e t h e n e c e s s a r y s p a r k o f m o t i v a t i o n b y g u i d i n g ,
ins pirin g, as sisting and d irec ting th e memb ers of the g rou p for
a c h i e v e m e n t o f u n i t y o f a c t i o n , e ff o r t s a n d p u r p o s e . A c c o r d i n g t o G e o r g e
R. Te r r y: " L e a d e r s h i p i s t h e a c t i v i t y o f i n fl u e n c i n g p e o p l e o f s t r i v e w i l l i n g l y
for group objectives". Thus, entrepreneu r, as the lead er of the group, can

e n s u re

high

perform anc e

by

c re a t i n g

w el l- t o- d o

env i ron m en t

am on g

o th ers. Th ey m ust ha v e the c ap ab i l it y t o a rr i ve a t p ro mp t an d co rrec t

d i re c t i o n a n d w i n t h e c o n fi d e n c e o f t h e i r s u b o r d i n a t e s . B e i n g t h e l e a d e r o f
t he ent erp ris e, they s hould pos s es s t he f ollow ing c harac t er ist ic s :

E x is t e nc e of f ol l ow e rs

A s s um pt io n of res po ns i bi l i t y

15.

E mp at hy cond uct
E x e m p l a r y c o n d uc t
D ev el op i ng t ea mw o rk
Common objectivity
Fa c i l it at in g c ha ng e
Buildin g morale
M aint en an ce of discip lin e
Ac t iv e pa r t i c i p at i on

H e n c e , e n t re p r e n e u r s b y t h e i r o w n l e a d e r s h i p s t y l e s a n d b e h a v i o u r
red u c e t h e p rob lem s w it h c aref u l l ist en in g an d p rop er h an d lin g of
s i t u a t i o n s . G o o d a d m i n i s t r a t i v e w o r k d e p e n d s u p o n e ff e c t i v e l e a d e r s h i p o f
t h e e n t r e p r e n e u r.

1 6.

A b i li t y

to

m ob i l iz e

res ou rc e s :

E nt re p re n eu rs

m us t

ha v e

t he

ab i l it y

to

m a rs ha l al l th e in pu ts t o ob ta i n t he end p rod uct. T h ey h av e t o m ob i l iz e

6 M s , i . e . M a n , M o n e y , M a t e r i a l , M a c h i n e r y , M a r ke t a n d M e t h o d e ff e c t i v e l y
t o re a l i z e t h e fi n a l p ro d u c t a s e n t r e p r e n e u r s h i p i s a f u nc t i o n o f g a p fi l l i n g
a nd i np ut c o mp l et in g .
17.
Conclusion
E nt rep ren eu rs

have

many

qu alities

th at

h elp

them

their

b us in es ses

s uc c es s f u l. H ow e v e r, a n e nt re p ren e u r d oe s n ot h av e t o po s s es s a l l t he
q ua l it i es . I n t h at c as e he h as e it he r t o l e a rn or h i re t he s er v i c e s o f t ho s e
w ho poss es s the qua lit ies he does not hav e.