ENTREPRENEURSHIP AND THE ENTREPRENEURIAL MIND-SET

Meaning:

An entrepreneur is one of the important segments of economic growth. Basically he is a person

responsible for setting up a business or an enterprise. In fact he is one who has the initiative, skill
for innovation and who looks for high achievements. He is a catalytic agent of change and works
for the good of people. He puts up new green field projects that create wealth, open up many
employment opportunities and leads to the growth of other sectors.

The word „entrepreneur‟ is derived from the French verb entreprendre. It means “ to undertake”.
In the early 16th century, the Frenchmen who organized and led military expeditions were
referred to as “entrepreneurs”, Around 1700 A.D., the term was used for architects and
contractors of public works.

The term “entrepreneur” was applied to business initially by the French economist, Caltillon, in
the 18th century, designate a dealer who purchases the means of production for combining them
into marketable products. Another Frenchman J.B. Say, expanded Cantillon‟s ideas and
conceptualized the entrepreneur as an organizer of a business firm, central to its distributive and
production functions. Beyond stressing the entrepreneur‟s importance to the business, Say did
little with his entrepreneurial analysis.

What it is

There is not a commonly accepted definition of entrepreneurship or entrepreneur and there are
different understandings of the phenomenon. One definition is that “entrepreneurship is a
phenomenon in the economy by which individuals or companies assume risks to create
something new in order to reap the benefits from the new venture” . This very broad definition
would also allow the inclusion of aspects such as entrepreneurship (entrepreneurship possibilities
within a given company).

Definitions used by countries to collect and or disseminate data on women‟s and men‟s
entrepreneurship include concepts such as owners, managers, self-employed, and employers but
different approaches are often used when these concepts are defined and put into the context of
entrepreneurship.
An entrepreneur may be defined as the owner or manager of an enterprise, its executive director,
or a member of its managing board. Self-employed people are also commonly considered to be
entrepreneurs, but not all data sources include self-employment in their definition of
entrepreneurship. Self-employment itself can be defined in multiple ways according to the
different goals of various sources.

Why it is important

Entrepreneurship is an important part of the national economy. It is an important factor in

creating and increasing employment opportunities and fuelling economic growth. For many
years, policymakers have identified entrepreneurs as important drivers for employment,
innovation and economic growth.

Entrepreneurship is viewed as a critical activity to regenerate and sustain economic growth in

strong economies and also as a means of boosting employment and productivity in deprived
regions or in developing countries, as it is an important source of job creation, career
opportunities and poverty reduction for both men and women.

What is an Entrepreneur?

Someone who creates and runs a business is called an Entrepreneur.

When an entrepreneur starts a new business, risk is involved. Risk is the chance of losing
something. Because employees work for someone else and entrepreneurs work for themselves,
entrepreneurs risk more than employees.

Why Be an Entrepreneur?

The biggest reword of becoming an Entrepreneur is the personal satisfaction that comes from
having the freedom to make your own business decisions and then act on them.

 Making Your Own Rules. When you own a business, you get to be your own boss.
 Doing Work You Enjoy. Since the majority of most peoples‟ lives is spent working,
why not spend that time doing something you enjoy?
 Creating Greater Wealth. There‟s no limit to what an entrepreneur can make.
 Helping Your Community. Being an entrepreneur lets you make your community and
world a better place.
Risks of being an entrepreneur
 Potential Business Failure. Being fully responsible means the success or failure of your
business rests on you.
 Unexpected Obstacles. Problems can happen that you don‟t expect.
 Financial Insecurity. Many new businesses don‟t make much money in the beginning,
so you may not always be able to pay yourself.
 Long Hours and Hard Work. It‟s not unusual for entrepreneurs to work a lot of extra
hours to make their businesses successful. This is especially true during the initial start-
up process.

Characteristics of successful entrepreneurs

Personal Characteristics Skills

A skill is an ability that‟s learned through training
and practice.
 Courage
 Creativity
 Business Skill
 Curiosity
 Communication Skill
 Determination
 Computer Skill
 Discipline
 Decision-Making and
 Empathy
 Problem-Solving Skills
 Enthusiasm
 Mathematical Skill
 Flexibility
 Organizational Skill
 Honesty
 People Skills
 Patience
 Responsibility
Why study Entrepreneurship

There are two primary reasons why studying entrepreneurship:

1. You lean to think like an entrepreneur and

2. You develop a vision for your life.

Prepare yourself to become an entrepreneur

To prepare yourself to become an entrepreneur you must do the following:

 Developing a strategy
 Acquiring a knowledge base
 Building problem-solving skills
 Studying the environment