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Entrepreneurs Characteristics, Functions & Types
Entrepreneurs Characteristics, Functions & Types
Defining Entrepreneurship
Initiative
In the world of business,
opportunities come and go. He should be
able to initiate action and take advantage of
opportunity. Once you miss the opportunity it
will not come again. Therefore, initiative on
the part of entrepreneur is a must.
Qualities of successful entrepreneurs
Motivation
Motivation is key to success. Once
you get motivated to do something you will
not rest unless you complete it. For example,
sometimes you become so much interested
in reading a story or a novel that you do not
sleep unless you complete it.
Qualities of successful entrepreneurs
Self-confidence
For achieving success in life,
one should have confidence in himself or
herself. A person who lacks confidence can
neither do any work himself nor can inspire
others to work. Self confidence is reflected in
courage, enthusiasm and the ability to lead.
Qualities of successful entrepreneurs
Feasibility study –
The entrepreneur conducts
studies to assess the market feasibility of the
proposed product or services. He anticipates
problems and assesses quantity, quality,
cost and sources of inputs required to run the
enterprise. Such a blue print of all the
activities is termed as a ‘business plan’ or a
‘project report’.
Functions of an entrepreneur
Resourcing –
The entrepreneur needs
various resources in terms of money,
machine, material, and men to running the
enterprise successfully. An essential function
of an entrepreneur is to ensure the
availability of all these resources.
Functions of an entrepreneur
Employee Intrapreneur
Self-employed Intrapreneur – franchising,
multi level marketing
How Intrapreneurship could be
promoted in organizations:-
The
Ministry of Micro, Small and Medium Enterpri
ses
is the nodal Ministry for formulation of
policies, programmes and schemes, their
implementation and related co-ordination, for
the promotion and development of small
scale industries in India.
Government policies/programs related
to entrepreneurship promotion
1. Executive summary
2. Product or service
3. Management team
4. Market and competition
5. Marketing and sales
6. Business system and organization
7. Operations and implementation schedule
8. Opportunities and risk
9. Financial planning
Elements of B-plan – Executive
summary
• Competing services
• Competitive position
• Strengths and weaknesses of
competitors
• Barriers to entry
• Possible future competition
• Positioning vis-a-vis the competition
Common pitfalls – Market
Everybody is waiting for my product
Lack of clarity on dimensions of
dissatisfaction
Insensitive to potential competition
No clear appreciation of the entry barriers
What stage of product life cycle you are
entering
Planning and action based on analysis of
industry competitiveness
How to get market knowledge
• Location
• Sources and complexity of technology
• Plant, equipment, facilities,
infrastructure
• Recruitment, training and retaining
personnel
• Input materials – sources, cost
• Production, capacity utilization
Common pitfalls - Technology
In-house
Challenges of prototype and commercializing
Technology expertise with only one person
Collaboration
Proven technology, Untested technology
Exclusivity, technical feasibility
Absorption
Acquisition, Assimilation, Fine tuning
Elements of B-plan – Implementation
schedule
Prepare
• Project cost
• Projected income
• Break-even analysis
• Projected cash flow statements
• Pro forma balance sheets
Common pitfalls - Finance