Nama/ NIM : Sukiawati/ 16010106011

Class : PBI.A_2016
Subject : Entrepreneurship

Summary of Chapter 2

The Characteristics of An Entrepreneur

Each individual has their own uniqueness and differences, but some experts have agreed
that there are special characteristics possessed by an entrepreneur that distinguishes them from
others. The three most special characteristics that often possessed by an entrepreneur are the
ability to recognize opportunities, the ability to take risks, and to be creative and innovative.

One characteristic that distinguishes an entrepreneur from a non-entrepreneur is having

the ability to recognize business opportunities. Short, et al., (2010: 55) define 'opportunity' as "an
idea or dream that was discovered or created by an entrepreneurial entity and that is revealed
through analysis over time to be potentially lucrative ". From this understanding, there are three
basic things that we need to concern. First, opportunities come from ideas or dreams. Second,
opportunities are found or created. Third, opportunities are obtained through analysis in a long
time to become potentially profitable ideas or dreams. Another factor that is also important in the
process of recognizing opportunities is entrepreneurial alertness and entrepreneurial networks.

The second characteristic of an entrepreneur is the ability to take risk. According to Leigh
(Lejuez, et al., 2002), risk-taking behavior is behaviors that have the potential to cause harm, but
also provide opportunities for profit. This ability will have an impact on the entrepreneur itself
whether it's a negative or positive impact.

The third special characteristic of an entrepreneur is he must have creativity and

innovation. Creativity is ability generate new ideas with merge, change, or polish existing ideas.
People who think creatively will see a problem as an opportunity to improve and do something
new or something better. People who think creatively will produce a strategy that will become
their superiority in running a business. While, innovation is adding something new to an existing
product or process. Innovation has several levels, Hisrich et al. (2010) proposed three levels of
innovation, namely breakthrough innovation, technological innovation, and ordinary innovation.

Breakthrough innovation is a innovation that is very unique, most rarely done, is an initial
form of innovation from an area that is being developed. Then Technological innovation is the
innovations that emerge after breakthrough innovation, are the development innovations from the
initial innovations. The last one is Ordinary innovation means the most common and frequently
made innovation, is the development of technological innovations to produce better products or
services.

In assessing what is created is a creative thing and is an innovation, it must be a new

product. New products here can be classified based on the perspective of consumers and from
company perspective according to Hisrich, et al., (2010). In 1967, Thomas Robertson proposed
 Nama/ NIM : Sukiawati/ 16010106011
Class : PBI.A_2016
Subject : Entrepreneurship

three categories of novelty in 1967 (Hisrich, et al., 2010), namely continuous innovation,
dynamically continuous innovation, and discontinuous innovation.

Continuous innovation means that there is little disrupting effect on consumption

patterns. Continuous innovation means there is a dynamic change, where the existing product is
the development of the previous product. Then, discontinuous innovation means that this product
has a completely new function or an existing function must be used in a new way.

Hisrich, et al., (2010) also said that the classification of new products can also be seen
from the company's perspective. Innovative companies will realize the importance of classifying
their new products to recognize consumer perceptions. One objective way to classify new
products is by looking at new products and new markets. New products are seen from how much
developing technology is used to create products, while new markets (or market developments)
are based on creating new market segments.

To find out the characteristics of a person whether he has the characteristics of an

entrepreneur, we can use a test called the Brain Color Test. This test can see the color type of the
human brain. With this test an entrepreneur can also plan the placement of his employees in
certain positions according to the color of his brain.

Brain Color Test is a test created by Sheila N. Glazov in 2007. This test is based on Jung's
theory of four personality functions, Extraversion or Introversion, Sensing or Intuition, Thinking
or Feeling, and Judgment or Perceiving. This test can help to understand the similarities and
differences between someone self and others in the way they think and act.