Who is an Entrepreneur?

An entrepreneur is an individual who, rather than working as an employee,

founds and runs a small business, assuming all the risks and rewards of the
venture. The entrepreneur is commonly seen as an innovator, a source of new
ideas, goods, services and business/or procedures.

Entrepreneurs play a key role in any economy. These are the people who have
the skills and initiative necessary to anticipate current and future needs and
bring good new ideas to market. Entrepreneurs who prove to be successful in
taking on the risks of a setup are rewarded with profits, fame and continued
growth opportunities. Those who fail suffer losses and become less prevalent
in the markets.

1. An entrepreneur is a starter: An entrepreneur is an initiator, a

challenger and a driver. Someone that creates something new, either an
initiative, a business or a company. He or she is the beginning (and
sometimes the end) of a venture, project or activity. The entrepreneur
might not be the ideator, but he or she is definitely the one that decides
to make that idea a reality.
2. An entrepreneur is the driver: The entrepreneur is the person in charge,
the leader and the person to look to for leadership. He or she is the one
that pushes forward and inspires a team to follow. The entrepreneur is
the one that sits in the driver’s seat, and has the ability to change
direction, accelerate, slow down or even stop a venture.
3. An entrepreneur is accountable and responsible: The entrepreneur is
the ultimate responsible for the destiny of its venture, which can be a
company, a project, or any other endeavor. The entrepreneur is the one
that has the highest stakes at the venture, thus the one that needs to be
empowered to fully direct the endeavor.

Entrepreneurship:

It is the process of designing, launching and running a new business, which is

often initially a small business. The people who create these businesses are
called entrepreneurship.

Entrepreneurship has been described as the "capacity and willingness to

develop, organize and manage a business venture along with any of its risks in
order to make a profit, While definitions of entrepreneurship typically focus on
the launching and running of businesses, due to the high risks involved in

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launching a start-up, a significant proportion of start-up businesses have to
close due to "lack of funding, bad business decisions, an economic crisis, lack of
market demand—or a combination of all of these.
A broader definition of the term is sometimes used, especially in the field of
economics. In this usage, an Entrepreneur is an entity which has the ability to
find and act upon opportunities to translate inventions or technology into new
products: "The entrepreneur is able to recognize the commercial potential of
the invention and organize the capital, talent, and other resources that turn an
invention into a commercially viable innovation." In this sense, the term
"Entrepreneurship" also captures innovative activities on the part of
established firms, in addition to similar activities on the part of new
businesses.

TYPES OF ENTREPRENEURS
The major types of entrepreneurs include; social entrepreneur, serial
entrepreneur and lifestyle entrepreneur.

Social entrepreneur :
This is an individual who pursues innovative solutions to social problems. A
social entrepreneur adopts a style of which he/she can use to create and
sustain social values. Most social entrepreneurs engage in non-profit activities
and are overwhelmed by social responsibilities and conscience. They are
primarily motivated to improve socio-economic well-being, educational,
health, fundamental, environmental and health conditions of others. Example
of great social entrepreneurs that ever lived include; Vinoba Bhave, David
Brower, Maria Montessori, Florence Nihtingale and some present day social
entrepreneurs are Ibrahim Abouleish, Bill Clinton and Dr. Abraham M. George.

Serial Entrepreneur :
This is an individual who comes up with new ideas, start the businesses and
often times sell to investors or shareholders. Serial entrepreneurs start up
several businesses with little intention to operate any of them for a long time.
They are high risk takers with lots of unique ideas and are not always
interested in a career with a particular business/company. 10 top serial
entrepreneurs according to Forbes include Craig McCaw, Josh Kopelman, Steve
Blank, Wayne Huizenga, Michael Rubin, The Samwer brothers, Lyndon Rive,
Omar Hamoui, Niklas Zennstrom and Janus friis the Skype pair, Andy
Bechtolsheim.

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Lifestyle entrepreneur:
This is an individual who creates profit from personal passion. He/she put their
lifestyle ahead of every opportunity. While most entrepreneurs are motivated
to build business to a certain stage and sell to shareholders or investors, the
lifestyle entrepreneur chooses to build a business they are passionate about
and grow the business into a long term, residual income that is sustainable.
Most lifestyle entrepreneurs are completely self-employed; this is to allow
them time to set up their projects. In a nut shell, a life style entrepreneur is an
addict of whatever they find themselves doing, they do it so well, commit their
time, resources and energy to see their project complete. Example of a lifestyle
entrepreneur according to eCommerce rules include; Tim Ferriss, Pat Flynn and
Chris Guillebeu.

Characteristics of an entrepreneur:

While there can be as many characteristics of an entrepreneurship as there are

people in this world with opinions, there are some characteristics that are
considered indispensable or necessary in an entrepreneur. These are listed here as
follows.

1. Disciplined

These individuals are focused on making their businesses work, and

eliminate any hindrances or distractions to their goals. They have
overarching strategies and outline the tactics to accomplish them.
Successful entrepreneurs are disciplined enough to take steps every day
toward the achievement of their objectives.

2. Confidence

The entrepreneur does not ask questions about whether they can
succeed or whether they are worthy of success. They are confident with
the knowledge that they will make their businesses succeed. They
exude that confidence in everything they do.

3. Open Minded

Entrepreneurs realize that every event and situation is a business

opportunity. Ideas are constantly being generated about workflows and
efficiency, people skills and potential new businesses. They have the
ability to look at everything around them and focus it toward their goals.

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4. Self Starter

Entrepreneurs know that if something needs to be done, they should

start it themselves. They set the parameters and make sure that projects
follow that path. They are proactive, not waiting for someone to give
them permission.

5. Competitive

Many companies are formed because an entrepreneur knows that they

can do a job better than another. They need to win at the sports they
play and need to win at the businesses that they create. An entrepreneur
will highlight their own company’s track record of success.

6. Creativity

One facet of creativity is being able to make connections between

seemingly unrelated events or situations. Entrepreneurs often come up
with solutions which are the synthesis of other items. They will
repurpose products to market them to new industries.

7. Determination

Entrepreneurs are not thwarted by their defeats. They look at defeat as

an opportunity for success. They are determined to make all of their
endeavors succeed, so will try and try again until it does. Successful
entrepreneurs do not believe that something cannot be done.

8. Strong people skills

The entrepreneur has strong communication skills to sell the product

and motivate employees. Most successful entrepreneurs know how to
motivate their employees so the business grows overall. They are very
good at highlighting the benefits of any situation and coaching others to
their success.

9. Strong work ethic

The successful entrepreneur will often be the first person to arrive at the
office and the last one to leave. They will come in on their days off to

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make sure that an outcome meets their expectations. Their mind is
constantly on their work, whether they are in or out of the workplace.

10. Passion

Passion is the most important trait of the successful entrepreneur. They

genuinely love their work. They are willing to put in those extra hours to
make the business succeed because there is a joy their business gives
which goes beyond the money. The successful entrepreneur will always
be reading and researching ways to make the business better.

Successful entrepreneurs want to see what the view is like at the top of
the business mountain. Once they see it, they want to go further. They
know how to talk to their employees, and their businesses soar as a
result.

11. Adaptable and Flexible

Being passionate and dedicated is important, but being inflexible about

client or market needs will lead to failure. An entrepreneurial venture is
not simply about doing what you believe is good, but also making a
successful business out of it. Successful entrepreneurs welcome all
suggestions for optimization or customization that may enhance their
offering and satisfy client and market needs.

12. Product and Market Knowledge

Entrepreneurs know their product inside and out. They also know the
market. Most become successful because they create something that
didn't already exist or they significantly improve an existing product after
experiencing frustration with the way it worked. Remaining unaware of
changing market needs, competitor moves and other external factors
can cause even great products to fail.

13. visionary
Every entrepreneur needs to be a visionary. Without a vision for the future of
his venture, he or she would just be working aimlessly without reaching any point
of success.

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FUNCTIONS OF AN ENTREPRENEUR:

1. Risk Taker: An Entrepreneur bears any risk in starting up and sustaining

his/her business. S/he assumes every responsibility that might come up in
the course of his business which might be caused by either change in time
or quality. He is always ready for emergencies and should competitors
emerge, thinks of strategies to outshine them. Mike Gafka said, “To be
successful you must accept all challenges that come your way. You can’t
accept the ones you like.”
2. Sales Person: An Entrepreneur must be a good sales man. If one cannot
sell as an entrepreneur, one cannot succeed. S/he is responsible of
marketing and advertising his products or services. I assert that there is no
magic about making money; it is essentially a medium of exchange of
goods and services. So if you are not providing goods and services, you are
not qualified to enjoy financial fortune.
3. Goal achiever: Entrepreneurs does not only set goals but also thrive so
much to achieve their goals. Robert Kiyosaki says, Most people know how
to set goals, few people know how to achieve them, that is how to identify
an entrepreneur. Entrepreneurs set big goals, so exhilarating that it is scary
to an ordinary man.
4. A Leader: One challenge of being an entrepreneur is that you have to be in
charge. You must be in the fore front of your business at least during start-
up. You should note that one cannot make it alone as an entrepreneur.
Outstanding leaders go out of their way to boost the self-esteem of their
personnel. If people believe in themselves, it’s amazing what they can
accomplish – Sam Walton. To be a successful entrepreneur, you must
possess the ability to attract smart people and build great business team.
5. Decision Maker: Entrepreneurs determines the objectives of their business
and they should know what is suitable per time. He decides and maintains
the potential investors or financiers of the enterprise and also manages the
funds available. He makes sure that his business venture is in good
relationship with pubic authorities and the society. He also decides the
market for his product or services.
6. Identifies and Solves Problem: An entrepreneur is quick to identify any
problem facing his/her business and immediately seeks solution. It is said
that he that wears the shoes knows where it pains. He/She knows that if
any challenge is not resolved as soon as they come, they are bound to face
setbacks in the near future.

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Why are Entrepreneurs Important for the Economy?

In economist-speak, an entrepreneur acts as a coordinating agent in a capitalist

economy. This coordination takes the form of resources being diverted
towards new potential profit opportunities. The entrepreneur moves various
resources, both tangible and intangible, promoting capital formation.

In a market full of uncertainty, it is the entrepreneur who can actually help

clear up uncertainty, as he makes judgments or assumes risk. To the extent
that capitalism is a dynamic profit-and-loss system, entrepreneurs drive
efficient discovery and consistently reveal knowledge. Established firms face
increased competition and challenges from entrepreneurs, which often spurs
them towards research and development efforts as well. In technical economic
terms, the entrepreneur disrupts course towards steady-state equilibrium.

How Entrepreneurs Help Economies and Countries:

Nurturing entrepreneurship can have a positive impact on an economy and a

society in several ways. For starters, entrepreneurs create new business. They
invent goods and services, resulting in employment, and often create a ripple
effect, resulting in more and more development. For example, after a few
information technology companies began in India in the 1990s, businesses in
associated industries, like call center operations and hardware providers,
began to develop too, offering support services and products.

Entrepreneurs add to the gross national income. Existing businesses may

remain confined to their markets and eventually hit an income ceiling. But new
products or technologies create new markets, and new wealth. And increased
employment and higher earnings contribute to a nation’s tax base, enabling
greater government spending on public projects.

Entrepreneurs create social change. They break tradition with unique

inventions that reduce dependence on existing methods and systems,
sometimes rendering them obsolete. Smartphones and their apps, for
example, have revolutionized work and play across the globe.

Entrepreneurs invest in community projects and help charities and other non-
profit organizations, supporting causes beyond their own. Bill Gates, for
example, has used his considerable wealth for education and public health
initiatives.

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challenges faced by an entrepreneur:
For entrepreneurs, everyday is a new challenge. From addressing
technical issues to managing finances, an entrepreneur has to be a jack
of all in his/her startup.
1. Time Management
Since entrepreneurs have diverse range of work and responsibilities, it is
sometimes difficult to manage time efficiently. One big trick to solve this
problem is to prioritize work based on urgency and importanance.

2. No pre-requisite Knowledge
A lot of young entrepreneurs who start early in the life (without any prior
experience of working in corporate or a startup) may not have the pre-
requisite knowledge of building a business. This can be overcomed by
extension research and self-learning processes. There's abundant
information available on the internet, you just need to go, read, exercise
and implement.
3. Building a Team
Another major challenge is to build the right team. It is important to
have like minded people who carry the same vision of the organization
like you do. One bad hire can ruin the company. Therefore, it is
important to make the right logical choices instead of emotional ones.
Your team is everything.
4. Managing personal and professional life
One of the major challenges for entrepreneurs is to divide time between
their work and family. If you are just starting up, you will not have
enough time to spend with your family and friends. But that shouldn't
stop you from starting up because that doesn't really matter in the longer
run. It takes grit and passion to build something from scratch.
There is no word called ‘Problem’ in the dictionary of Entrepreneurs.
Every Problem is a ‘Challenge’ and every Challenge has a solution.

5. Self-doubt

An entrepreneur’s life is not enviable, at least in the beginning. It’s

extremely easy to get discouraged when something goes wrong or when
you’re not growing as fast as you’d like. Self-doubt creeps in, and you

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feel like giving up. Being able to overcome self-doubt is a necessary trait
for entrepreneurs. Having a good support system will help: family and
friends who know your goals and support your plight, as well as an
advisory board of other entrepreneurs who can objectively opine as to
the direction of your business.

6. Delegating tasks

Entrepreneur need to delegate or outsource tasks, but it seems every time

they do something gets messed up and they have to redo it anyway.

To avoid this entrepreneur must Find good employees (see above) and good
outsourced contract help, for starters. You might have to pay a little more for
it, but the savings in time (and the resulting earning potential) more than make
up for it.

7. Lack of capital

Almost all new ventures require seed capital — money that is available
to see them through those first rocky months or even years before they
turn a profit. Some types of businesses need more money than others.
Almost all need money for marketing.

To avoid this situation, Entrepreneurs should write a detailed business

plan that will give them a good idea of how much money they will need
to survive before becoming profitable. Armed with that total, they should
seek to find it. Friends and family and even a local bank or credit union
might be able to assist them.

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Chosen enterprise:

Fyda lifestyle:

Fyda Lifestyle is a clothing store which was opened on October 2016. It

is located in the heart of patna city Bihar, Bander Bagicha, Fraser Road Area,
Patna, Bihar 800001. It offers collection of all the brands like jack and
jones, Austin drive, Rex straut jeans, zimrah, spyker, imara etc. it was
started by two brothers Arslan Reza and Md. Shakeb.

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About the entrepreneur:
Arslan Reza and Md. Shakeb have started FYDA LIFESTYLE in October 2016.
They are brothers and have opened this store in partnership. Arslan Raza’s
highest qualification is post graduation in diploma and management(PGDM)
from IMT, ghaziabad. Md. Shakeb have done B.tech from Gurunanak
Engineering college.

Their father have garments business in patna. Md. Shakeb have started his
journey by doing job and after some time he along with his brother have
decided to open his own business because they doesn’t wanted to work under
any supervisor. Also they wanted to become self-dependent so they didn’t
continue their father’s business .
Their source of inspiration to open this store is their father. Although they
didn’t took help from their father still their father always supported them
mentally as well as financially also. Their mission is to start the franchise of the
store in different cities.

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QUALITIES:
According to them, to be a successful entrepreneur in these type of business a
person must possess certain qualities like:
1. Be open-minded.
2. Passion for whatever you do.
3. Constant flow of ideas.
4. Creative and always ready to take risks.
5. Must be disciplined and confident.
6. Opportunist.
7. Problem identifier and solver.
8. Confident.
9. Patience
10.Leadership
11.Ready to accept the challenges

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About the store:
Initial investment for this business was Rs 20 lacks. Initially they offered so
many different brands. They usually keep changing the brands. To replace
existing brand with some other brand they offer discounts so that every
product of that brand can be sold. Following are the basic information of the
store:

Products offered Casuals, ethenic, formals

Product range Rs 100-15000
Total employees 7
Footfall 800-900 per month
Initial investment 20 lacks
Profit 35%
Target customers Means and womens
USP Product at lowest cost
Exchange police Within 1 week

At beginning they advertise their business by organising BTL( below the

line)function, advertisement, word of mouth, newspaper.
They believe that word of mouth is the best way to advertise any business so
they doesn’t prefer much paid advertisement.

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Problems faced by the entrepreneur to start this business:
1. Time Management
Entrepreneurs have diverse range of work and responsibilities, it is
sometimes difficult to manage time efficiently. They were unable to give
time to their families because of so much work.
2. Financial issue:
They faced problems while sourcing funds for their business. They were
not getting funds easily and have done so many things like approached to
investors, proposed their business in front of banks etc. to get the loan.
They’ve tried in so many banks and then they got the fund.
3. Rental issue:
They faced problems in starting because to built trust in front of
owner of the place who provided place for rent to them. At starting
they were not able to give rent on time and the owner always asks rent
in starting of the month i.e, between 1-7 date of every month. As time
passes they built trust in front of owner and now they can give their
rent anytime.

4.Delegating task

They had to delegate or outsource tasks, but it seems every time they do
something gets messed up and they have to redo it anyway.

To avoid this they’ve found good employees and good outsourced contract
help. You might have to pay a little more for it.

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Conclusion
By doing the survey I came to know that entrepreneurs posses certain qualities
which make them successful. There are many challenges which are faced by
the entrepreneur. By doing survey I’ve got the idea to start and continue the
business and also the various ways to be successful.
I was amazed by their understanding of their business.

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References:

 Book: Essentials of entrepreneurship and small business

management by Thomas w. Zimmerer and Norman M.
Scarborough
 Seniors
 Resource centre
 https://www.deluxe.com/sbrc/financial/top-10-challenges-faced-
entrepreneurs-today-solved
 https://www.goalcast.com/2017/08/02/5-challenges-that-face-
young-entrepreneurs-and-how-to-overcome-them/

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