Entrepreneur Definition and Roles PDF

Lesson 1; Who is the Entrepreneur? An entrepreneur is someone who develops a business model, acquires the necessary physical and human capital to start a new venture, and operationalizes it and is responsible for its success or failure. The entrepreneur is the risk taker and an innovator in additio...

Lesson 1; Who is the Entrepreneur? An entrepreneur is someone who develops a business model, acquires the necessary physical and human capital to start a new venture, and operationalizes it and is responsible for its success or failure. The entrepreneur is the risk taker and an innovator in addition to being a creator of new enterprises whereas the professional manager is simply the Executor and also the following: *Entrepreneurs take and accept risk. Entrepreneurs own ventures and improve existing ones place innovation and opportunism at its heart in order to produce economic or social value. *Entrepreneurs own ventures and improve existing ones Small business VS Entrepreneurial Ventures Small businesses usually deal with known and established products and services, while entrepreneurial ventures focus on new, innovative offerings. Because of this, small business owners tend to deal with known Risks and entrepreneurs face unknown risks. Limited growth with continued profitability is what is hoped for in most small Businesses, while entrepreneurial ventures target rapid growth and high returns. *Entrepreneurs are managers as well as leaders. The main difference between Entrepreneur and Manager is their role in the organization. An entrepreneur is the owner of the company whereas a Manager is the employee of the company. ENTREPRENEURS The Entrepreneur is a creator The entrepreneur takes risk The entrepreneur is personally responsible The entrepreneurs achieve The entrepreneurs are future oriented The entrepreneurs thrive on chaos MANAGERS The manager is a custodian The manager seeks stability The manager is merely responsible The managers attain target The managers are now oriented The managers thrive on structure Who is an Entrepreneur? Precise speaking, an entrepreneur is a one-man show that runs entrepreneurship. However, such a person usually has some unique attributes that allow him to be successful in his endeavours. He is essentially an initiator and a leader. He brings business ideas to execution thus starting off his venture. A successful entrepreneur is usually a responsible person. He is accountable for the success or the failure of his venture, and he takes this responsibility very seriously. And since he is the only person in-charge he is automatically the leader. In fact, leadership qualities are one of the main aspects of an entrepreneur. Who is a Manager? A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one that is responsible for the management and administration of a group of People or a department of the organization. His day to day job is to manage his employees and ensure the organization runs smoothly. A manager must possess some of the same qualities as an entrepreneur, like Leadership, accountability, decisiveness etc. He must also be a good manager of people. So qualities such as warmth and empathy are also very important in a manager. Difference between Entrepreneur and Manager An entrepreneur is a visionary that converts an Idea into a business. He is the owner of the business, so he bears all the financial and other risks. A manager, on the other hand, is an employee, he works for a salary. So he does not have to bear any risks. The focus of an entrepreneur lies in starting the business and later Expanding the business. A manager will focus on the daily smooth Functioning of the business. For an entrepreneur the key motivation is achievements. But for the managers, the motivation comes from the power that comes with their position. The reward for all the efforts of an entrepreneur is the profit he earns from the enterprise. The manager is an employee, so his remuneration is the salary he draws from the company. The entrepreneur can be informal and casual in his role. However, a manager’s approach to every problem is very formal.  The entrepreneur by nature is a risk taker. His has to take calculated risks to drive the company further. A manager, on the other hand, is risk-averse. His job is to maintain the status quo of the company. So he cannot afford risks. *Entrepreneurs identify opportunities in the market to be successful entrepreneurs, we need to be continually innovating and looking for opportunities to grow our start-ups. But how do you find new opportunities to take your start up to new markets and growth levels? Here are four ways to identify more business opportunities. Listen to your potential clients and past leads Listen to your customers And last is to look at your competitors *Entrepreneurs’ process market information *Entrepreneurs bring innovations *Entrepreneurs provide market efficiency *Entrepreneurs maximize investment returns Here are three strategies to achieve that: Focus on people’s investments. Spend time readying the team for success. Prioritize technology as tools for productivity. *Entrepreneurs provide leadership What makes the successful entrepreneur?  Entrepreneurs are in good physical health  Entrepreneurs have superior conceptual abilities  Entrepreneurs have a broad thinking of a generalist  Entrepreneurs have high self confidence  Entrepreneurs have strong personal drive  Entrepreneurs have moderate interpersonal skills  Entrepreneurs are moderate risk takers  Entrepreneurs have a realistic outlook  Entrepreneurs have a high degree of emotional stability  Entrepreneurs have low-need level for status  Entrepreneurs have an unencumbered personal life (no burden, no Issues)  Entrepreneurs have a one track mind  Entrepreneurs have plenty of staying power  Entrepreneurs have high energy level, nurtured by periods of relaxation  Entrepreneurs have good judgment about people  Entrepreneurs have a positive can do attitude  Entrepreneurs have a practical approach to business and life The Entrepreneurial Personality Studies of the entrepreneurial personality find that entrepreneurs share certain Key traits. Most entrepreneurs are  Ambitious:  Independent:  Self-confident:  Risk-takers:  Visionary:  Creative  Energetic:  Passionate.  Committed. Lesson 2; Are entrepreneurs born or made? (Bolton and Thompson, 2005; Etchner, 1995). Etchner (1995) argues that it is Possible for people to have a natural flair for entrepreneurial activities like other People who are naturally gifted for subjects, such as music or mathematics. He Further mentions that „aspiring entrepreneurs not only need certain behavioral traits But also need to acquire knowledge of the venture creation process, including an Understanding of the specific management tools. The probability of a person starting a business is more often born, Successful entrepreneurs are very much often made. Born Entrepreneurs, like leaders, are born, not made. Once an entrepreneur, always an entrepreneur since an entrepreneur is a Personality type, a state of being that doesn’t go away‟ (Gartner,1989, p.48). It is not necessary that an entrepreneur’s son or daughter has to become an Entrepreneur. However, it becomes easy for an individual who is born into a Family who already runs a business venture to get into the family business. It is Because entrepreneurship runs in the family. Entrepreneurs require resources like capital, land, and labor. It is usually not That difficult to achieve these since these resources are already available in the Family business. In such situations the drawback is that the entrepreneur born in a business Family shy’s away from starting their own business. He or she focuses only on Running the family business and to carry forward the name attached to the Business for generations to come. Made They believe an individual is not permanently entrepreneurial, but may decide To venture into entrepreneurship at a particular point in time, or may decide to Quit being entrepreneurial at another period (Wickham, 2006). The social development approach concludes that entrepreneurs are not born But are made. (Wickham, 2006, p.14) Such individuals do not grow overnight, they grow with time. It could be a Dream or a vision that they have always wanted to achieve since their Childhood. Over the years they have successfully observed the surrounding Environment. Maneuvered through many obstacles and experiences in life Which has helped them to become an entrepreneur. It is their passion to create something new which makes them an entrepreneur. It can also be said that an entrepreneur is created through education. With the Knowledge that he or she receives through lessons which help the individual to Be exposed to new ideas. Education helps individuals discover the skills and the natural talents that they Already possess. It helps them to successfully use those skills in becoming an Entrepreneur. However, there is one thing that education cannot teach and that Is to take risks. A self- made entrepreneur has the ability to bear risks and take Up new challenges. Entrepreneurs are not born. Entrepreneurs are not like athletes, they don’t Need natural inherent body and muscles. An athlete’s child may grow up an Athlete, but it would not happen in an entrepreneur’s family. Many businesses bankrupted every day, including some entrepreneur’s family. However, Entrepreneurs are nurtually made, and they own some special qualities and Also need some trainings and experiences as athletes. Entrepreneurship Involves experience. Entrepreneurs are made. The ability to create and innovate business ideas is Through the process of continuous learning. Man is meant to create his own Career and it is not innate to him since being a successful entrepreneur Requires a great deal of knowledge acquired through experiences. People cannot be born and become an entrepreneur in an instant. There is a Need for learning or social awakening in order for a person to realize that Putting up a business is more than just gaining profit and earning more money. It is the realization of the responsibility a person has for the life of every Employee and customer. Entrepreneurs are made not born. Entrepreneurship can be practiced and Mastered because it’s not primarily based on inborn traits. Anyone can be an Entrepreneur regardless of one’s IQ, gender, genetic patterns and etc. as long as A person’s characteristics, qualities, behavior and other aspects of her/his Personality are driven by factors including one’s will, atmosphere, background, Experiences and persistence in order for that person to become a fully Successful entrepreneur. Born and Made (Bolton and Thompson, 2005; Etchner, 1995). Etchner (1995) argues that it is Possible for people to have a natural flair for entrepreneurial activities like other People who are naturally gifted for subjects, such as music or mathematics. They are made because it is through experience that they learn and do great Things Entrepreneurs acquired many qualities that made them succeed. Not Obtain There are three elements that make up an entrepreneur. First is Entrepreneurial talent, Second is the founder’s mind-set, the skill whether technical, business, design, Are entrepreneurs born or made? Well, it’s a little bit of both. Talent is up to you, as most things in life. Mind-set, You should get involved with your local, regional, international start-ups communities, Ecosystems and you should cold email founders, potential mentors and invest a good Amount of time in figuring out if you do have the right mind-set. Nature + Nurture Entrepreneurs are born with certain attributes, have a family background, gain Experiences all through their life and build networks. Characteristics of an Entrepreneur: ❖ Ability to recognize opportunities ❖ Have a need to achieve ❖ Tend to be over optimistic ❖ Prepared to take risks ❖ They feel that they can control things (Autonomy) ❖ They are gregarious and creative What makes an entrepreneur? Passion Competitiveness Strong work ethic Self Starter Strong people skills Open Minded Determination Confidence Creativity Disciplined Lesson 3; Many entrepreneurs believe a bunch of myths about entrepreneurship, so here Are the most common and the realities that bust them: ❖ Myth : Entrepreneurs are born, not made ❖ Myth : Entrepreneurs are Money Chaser ❖ Myth : Entrepreneurs are Superhuman ❖Myth : Entrepreneurs don’t have a personal life ❖Myth : Entrepreneurs take lots of risks Myths About Entrepreneurs Entrepreneurs take uncalculated and unknown risks without any plans. Entrepreneurs venture out only after gaining significant experience in the Industry Entrepreneurs complete extensive research before taking the first step. Entrepreneurs start with sufficient capital. Most Common Entrepreneurship Myths ❖ They enjoy taking risks. ❖ They are driven by money.. ❖ They are right most of the time. ❖ They are lucky. ❖ Quitting is for losers. Fears & Excuses of People Who are not Entrepreneurs ❖ I’m too scared. ❖ I’m too late ❖ I don’t have the money ❖ I can’t take the risk. ❖ It’s too hard. Lesson 4; Functions of a successful entrepreneur are; 1.Taking Initiative 2. Organizing Resources 3. Identifying Opportunities and Prospects 4. Risk-Taking 5. Decision Making 6. Technology Transfer and Adaptation 7. Innovation 8. Fostering Autonomy 9. Social Responsibility 10. Public Relations 11. Experience Sharing 12. Managerial Roles 13. Balanced Economic Development Roles that an entrepreneur is expected to take in business 1. Promoters. 2. Partners. 3. Shareholders. 4. Directors. 5. Organizers. THE ROLE OF AN ENTREPRENEUR O Perceives opportunities in the environment O Takes risk O Mobilizes capital for a business O Introduces innovation O Organizes labor and production O Makes decision O Plans ahead O Sells his product at a profit RESPONSIBILITIES OF THE ENTREPRENEUR 1. Initiating ideas: 2. Planning. 3. Controlling. 4. Coordinating. Lesson 5; There are 10 Personal Entrepreneurial Competencies, which form the basis of the Empretec Training Workshop. These 10 competencies are: Opportunity Seeking and Initiatives. Persistence. Commitment. Sacrifice. Demand for efficiency and quality. Taking calculated risk. Goal Setting. Function without it. Information Seeking. Suppliers, technology and opportunities. If you want to be an entrepreneur, take a step back and evaluate whether or not You have the following characteristics. (And remember: if you don’t have these traits Now, you can develop them down the road to improve your chances of success.) 1. Self-Motivation 2. Understand What You Offer 3. Take Risks 4. Know How to Network 5. Basic Money Management Skills and Knowledge 6. Flexibility 7. Passion As you consider your characteristics, think about how to better develop them to Help you become a better entrepreneur. Are there certain qualities that all successful Entrepreneurs share? Entrepreneurs share very similar qualities that make them Successful. Fortunately, all of these qualities can be learned. It is up to you to Carefully examine your strengths and dedicate yourself to learning them. How do these Traits match up to your own? Qualities 1. Self-Discipline 2. Integrity 3. Persistence 4. A Clear Sense of Direction 5. Decisive and Action Oriented MOTIVATION AND PERSONAL COMPETENCIES Empretec’s unique methodology, rooted in research conducted in the late 1960s By David McClelland, psychologist at Harvard University, is based on the assumption That everyone has an inner motivation to improve. This “motive for action” is divided Into three motivational categories: achievement, affiliation, and power. Achievement Cluster 1. Opportunity seeking- 2. Persistence 3. Commitment to work contract- 4. Risk Taking 5. Demand for efficiency and quality- Planning Cluster 1. Goal Setting 2. Information Seeking- 3. Systematic Planning and Monitoring Power Cluster 1. Persuasion and networking- 2. Self-confidence- Lesson 6; The following are some examples of what entrepreneur can do: 1. Self-employed: 2. Opportunistic entrepreneur: 3. Innovator: 4. Acquirers: 5. Buy-Sell artist: 6. Speculators: 7. Franchisee: