ASSIGNMENT 1

NAME : Bandaranaike A.R.M.D.I

ASSIGNMENT NO : Number 1

DEPARTMENT : Entrepreneurship and Small

Business Management.
BATCH : 2015/16 (1st batch)

INDEX NO : EGT/16/411

DATE OF SUB : 30/11/2020.

1. Explain how entrepreneur interact with enterprise in developing an Entrepreneurship and
discuss the characteristics of an Entrepreneur.

The person who sees new opportunity and creates a business with limited resources to
exploit is simply known as an entrepreneur. Although this definition is much simple, the
ultimate meaning behind an entrepreneur complicated than it seems. Entrepreneur is can be
even known as person who is action oriented, highly motivated, takes risks to achieve goals.
To be an entrepreneur, he/she must be able to convert the opportunities received into
workable and marketable ideas and increase the value of that idea via time, money, effort, or
skills. A successful entrepreneur has strategies to identify both the risks and rewards. Usually
the person who is known as an entrepreneur provides capital for his/her own business, without
participating in the leading role in another enterprise. The entrepreneurship on the other hand,
implies about a process implemented by an entrepreneur in order to produce incremental
value and wealth by arranging and organizing the enterprise, discovering investment
opportunities, undertaking economic uncertainties and risks and working hard for an effective
economic growth. The entrepreneurship would not be confined for a single person and it is
about the organized efforts that are followed by an individual or a group of people to purpose
opportunities. However entrepreneurship is not engaged with self-employment, because self-
employment means working for oneself as a freelancer or the owner of a business rather than
organizing and operating a business or businesses and taking on greater than normal financial
risks in order to do so. The ultimate output of the combination of an entrepreneurs and
entrepreneurship is known as enterprise. Different people have defined the enterprise in
different ways, but on the entrepreneur’s perspective an enterprise can be simply described as
a business organization. Every individual works hard to establish his/her own enterprise and
then he/she must competent enough to carry the enterprise without fluctuations of the
economic aspects.

Figure 1: Relation between entrepreneur, entrepreneurship and enterprise.

 Usually an entrepreneurial ventures target high returns with an equally high level of
uncertainty. For anyone who wants to become an entrepreneur must be having confidence to
risks his/ her financial security and career, capital on an uncertain venture, time, raw materials,
manufacturing locations and skilled employees to achieve a developed entrepreneurship. The
entrepreneur must actively involves with processes of his/her enterprise such as marketing, sales
and distribution etc and must follow a pre-arranged plan and working schedule when
implementing those kinds of work. Even if some of these functions are outsourced, the risk is
still carried by the entrepreneur. If the person is not having much hands-on experiences at the
beginning, achieving target would be more difficult and, therefore he/ she must investigate the
relevant field of the business and have good understanding about the risks to be faced as well as
should have a proper plan and working schedule to face the risk. Entrepreneurship is having a
massive impact on economies and communities in a significant manner and it creates more job
opportunities in the market. To achieve the desirable goals, the entrepreneur should always
follow demandable things and processes, new features introduced to the world, and should think
creatively to offer innovative things through his/her enterprise.

Characteristics of an entrepreneur.
To have a developed entrepreneurship, the entrepreneur must obviously have some especial
characteristics that are relevant to a successful entrepreneur. The first and most important
characteristic that an entrepreneur should have is being able to take the risk. Because since a
person take his/her first step to become an entrepreneur, he/she has to face much more risk and
risking is accompanied throughout the life time of the enterprise. Innovativeness is another
significant characteristic which show the awareness of that particular entrepreneur about new
market and updates. The entrepreneur must be able to address customer’s anticipation that is
involved with the new innovations. Alternatively, with the innovativeness, an entrepreneur must
be essentially competent on creative thinking. He/she must be able to design the output
creatively with innovative ideas and, he/she can use creativity when improving the
entrepreneurship though different processes. Another most prominent characteristic is, an
entrepreneur must have an inexpiable passion to achieve the goal. The passion is the footing to
have a successful enterprise with a developed entrepreneurship. When someone has a static
passion, it would be an enthusiasm to encourage him/her to obtain the target successfully by
working hard in a systematic and organized way. Self-confidence is another characteristic that
can be taken as a unit to measure the success and the progressive improvement of the
entrepreneur. Because, an entrepreneur must obviously have a good confidence to take decision,
implement necessary actions and deal with risks. Well-behaviour, disciplines and work ethics are
the main key elements of an entrepreneur that the persistency of an enterprise can be determined.
In addition to all above an entrepreneur must be competitive, open minded and have strong
people’s skills when dealing with the market and the society.
Reference.

1. https://www.researchgate.net/publication/326190494_Entrepreneurship_lecture_note
2. https://www.investopedia.com/articles/investing/092514/entrepreneur-vs-small-business-
owner-
defined.asp#:~:text=An%20entrepreneur%20is%20an%20individual,than%20an%20existi
ng%20business%20model.