Abstract

Why are some companies succeeding and some failing in exactly the same circumstances and
in the same business? The difference is their point of view about what a business is, and what
one is not. The difference is that successful business owners were all entrepreneurs, and the
vast majority of business people are not. Knowing the characteristics of entrepreneurship,So
you can evaluate yourself and find out if you're an entrepreneur. You need to know this so you
can see how likely you're going to be successful in business. Sometimes it is assumed that in
order to make it as an entrepreneur you need to be born with certain features. Entrepreneur's
characteristics evolve over time; they are shared as a result of the similar challenges that all
entrepreneurs face (the struggle to survive in business). The main objective of the article is to
discuss and elaborate on the fundamental guides of entrepreneurial starting new ventures, its
origins and emergence. The article is of descriptive character and is therefore based on a
review of literature.

Introduction

Entrepreneurial venturing refers to the creation and formation of a new business entit (in which
the entrepreneur plays the central role).Th e new venture entrepreneur must overcome a
different setup of challenges compared to established ventures. New resources must be
secured, new employees recruited, advisory and board members appointed, and investment
has been raised. The new business is unknown and its market value unproven, making its
survival, let alone growth, highly uncertain. Different market conditions will undermine the
entrepreneur's ability to develop a new venture — and to increase external investment.
Entrepre) Neurial venture tends to focus on locations where there is plenty of talent, related
services, large markets to sell products and services, fewer business barriers, and access to
finance sources.

What makes an entrepreneur

In the first place, entrepreneurship is a mindset. You are not born a businessman ; over time you
develop your mindset. Entrepreneurship is the art of making profitable solutions to problems.
Every successful entrepreneur, every successful businessman was someone who was able to
identify a problem before someone else came up with a solution.

An entrepreneur is a person who usually creates and innovates around perceived opportunities
to build something of value.

Entrepreneurs have developed certain traits: huge ambition, imagination, persistence,

passion and conviction. The level of your personal ambition and imagination will
determine the heights that you will scale. It is your vision that sets your limits. Without
vision you do not have a business, you just have employment.

Persistence is a necessary feature because ownership of business is not a sprint, but a

marathon. In order to win, you need to stay in the race for a long time. After several years, most
business ventures will only begin to realize a profit. When you believe in your business, you
have to take a leap of faith and stay with it through the tough times. Many people give up too
quickly without conviction, and the sad part is that; when they're about to strike the gold seam,
most people give up.

Successful entrepreneurs love their business. They are driven by their passion to withstand the
rough patches and build their businesses. If you're passionate about your business, you commit
yourself fully, with true conviction. You discard any personal tendencies towards mistakes and
self-doubt. You know the business is your personal ego, and you must make it succeed. Such
conviction gives your customers, bankers, suppliers, and employees tremendous confidence. It
becomes the largest marketing message you're never going to pay for.

The innovative art

Innovation is the business people's food. Entrepreneurs are always producing new things as
creators. They turn problems into opportunities, overcoming barriers that most people might
have to stop.The art of creating new things and changing or improving on the old is innovation.
"Creative destruction," a term introduced by economist Joseph Schumpeter in 1942, describes
the industrial transformation process that accompanies radical innovation. In Schumpeter's view
of capitalism, the strength that sustained long - term economic growth was the innovative entry
of entrepreneurs, Although it destroyed the value of established firms enjoying some degree of
monopoly power.
There are many types of innovations that entrepreneurs have applied:

● New markets or products

● New technology
● New equipment
● New raw materials and labor sources
● New methods of organization or management
● New methods of transport and communication
The best chance to create something very profitable is to start with a major problem, a need that
is unsatisfied. The nice thing about these issues is that they exist in every economic climate -
and that means the entrepreneur with enough foresight and conviction to nab them constant
opportunities.

The personality and background factors of entrepreneurs

Some people are necessarily becoming entrepreneurs, as if they are losing jobs or having an
economic problem. By seizing the opportunity, others become entrepreneurs, the true types of
Schumpeterian. Those forced by circumstances had to learn the necessary behaviors to be
successful in business.
The behavioral characteristics of entrepreneurs are: a spirit of independence; competitiveness;
thriving on challenges; desire for wealth; perseverance; determination; orientation towards clear
goals; need to achieve; orientation of opportunity; creativity ; persistent problem-solving; risk -
taking; integrity; honesty and internal control.
Entrepreneurs must be risk - takers ; not careless or irresponsible daredevils, but risk - takers.
Their success lies in being able to change at short notice, learning, flexibility and caution.
Most people are averse to risk. They prefer to stay in their comfort zone, doing the same things
over the years that worked for them. How many times have we heard people grumble about
their jobs, how underpaid they are, how badly they are mistreated by the boss and how stinks
the company? In life, however, very few grumblers take action to change their lot. To be an
entrepreneur, you need to learn to be risk - tolerant and to be able to manage the risk of
creating and growing a business without security of paycheck. Successful entrepreneurs dared
to leave their beautiful desk jobs and started small businesses without a safety net.

Learning entrepreneurial characteristics is the key to success

No entrepreneur did it without learning what it takes to succeed. Many learned the hard way
from experience, while others learned from the lucky ones.
You are also fortunate as a young entrepreneur that the characteristics of being a successful
entrepreneur have been studied and are now known ; you just need to examine yourself
honestly to see which parts you have already assembled and which parts you need to learn.
Adaptation is the game's name. You better get your face wet if you want to shave your beard.

New Business Startups

The reason you set up a business is going to have a big impact on its structure. As we've seen,
some businesses are just setting up, with the owners reacting quickly to events as they play out.
However, regardless of how unplanned the business appears, the owners will have to decide to
take things forward on a business basis at some stage. This means taking a serious look at the
available resources and finances and whether the outcome suits the life plans. Often, as the
following examples show, the rewards the unexpected business offers are too much to be
discounted.

Evolution
Companies have evolved from a hobby or pastime and are often driven by consumer demand
for a underdeveloped product or service.These days, social media can often be the driving force
for such a startup, with the momentum of the enterprise outside the proprietor’s control.The
power of social media takes over, and the growth in demand is fueled by online chat, such as
Twitter.In this position, the best way forward for such businesses is to call a halt, take a breath
and come up with a manageable progress plan before spreading too far physical and monetary
resources.

Unemployment
If unemployment occurs unexpectedly and there is often the willingness to set up a business,
but also the lack of capital to do so, without the benefit of redundancy benefits. However, this
option is likely to be taken if capital can be acquired to fund the establishment of a
business.This would not only be for the benefit of income, but also to recover some purpose in
life, as accepting a life of doing nothing is difficult. Often, unemployment /redundancy can evoke
a sense of victimhood, and if it can be used as a driving force to set up a business, it gives a
head start to the business. This emotion should be embraced by the new business owner. This
emotion should be embraced by the new business owner. The business is often set up as an
aggressive competitor to the one in charge of the redundancy, using the skills of the
ex-employees. But only a few are doing something about it and setting up themselves. What
makes them different from the rest? In a word, in your decisions, it is confidence you should
always have.

You Can Do It Better

Throughout your life, there were probably occasions when you needed to trust that your
requests would be managed, or you saw particularly awful client administration and said to
yourself, ' You could be improving. ' That would be its end for the vast majority of us, but there
are business people who see it as a business opportunity.
Or maybe again you're working for a business that works worse than average, and you figure
you could improve, like Howard Schultz did at Starbucks, where he identified a market they
didn't consider. If that's just the position you're in, you're going to have a better chance of setting
up another business effectively, as you've learned the business segment before, and you're
going to have a better chance of setting up another business. Often, individuals find themselves
used by organizations they have little regard for, and they may come to the heart of the matter
where they prefer not to be asked about by someone they think is deficient.

Key entrepreneurial venturing activities

key entrepreneurial venture activities suggested are identifying opportunities; Market research;
viabilty study; securing resources; building teams; developing ventures; refining market
product/service; and financial feasibility. Each of them is described below.

Opportunity Identification
“Opportunity is a haughty goddess who wastes no time with those who are unprepared.”
The Richest Man in Babylon- George Samuel Claso.
True entrepreneurs at any given time have multiple ideas going through their heads. Some
ideas are more likely than others to be profitable. At this stage, it is important to point out that
we are talking about innovative productive business ideas, not just copying what somebody is
already doing. Copying an existing business without adding innovative value does not create
real value and will seldom make you rich. All it does is give you a piece of the same cake
already shared by existing players.
The impact of GDP on small businesses is wide because they are the UK economy's lifeblood.
In terms of the overall activity of businesses and consumers buying their products or services,
falling GDP will have a major impact on small businesses.
Growth of 0.5% was mainly in services that grew by 0.8%, lifting declines in construction and
manufacturing. This is quite interesting since, due to the weaker pound boosting growth,
manufacturing captured the headlines. This indicates that, while helpful, the weaker pound has
not been of overall benefit to this important economic area.
Small enterprises are also more susceptible to shocks as they generally have a lower operating
area. Compared to a larger company, a smaller company may struggle to call for more
investment or bank loans or diversification to support any weaker major markets.
Falling GDP means that smaller businesses can struggle to stay afloat, especially if they now
buy less than they did before the vote from overseas as a sterling. This benefits exporters, of
course, but as the GDP data shows, the UK manufacturing industry does not benefit from a
weak pound overall.
Small businesses can also be much more localized, so this will affect peripheral businesses if
certain regions of the economy are struggling.
Economies are not just falling overnight, businesses in the United Kingdom and the EU that
previously traded on June 24 will not have severed ties.Confidence has undoubtedly been
affected with many business surveys pointing to understandable concerns over the future. But
for now, businesses have been getting on with their day-to-day running, keeping a watchful eye
on the headlines for further Brexit related news.
Only if an innovative entrepreneur has some new value - adding ideas that will make him win
market share from existing brokers will he enter the industry. The need to screen ideas stems
from the way entrepreneurs use imagination to bring innovation into being. For one reason or
another, some of the ideas they come up with are not viable, although brilliant.
Screening ideas is important in an economic sense. It is time a new product was developed -
expensive and consuming.

Then again, open doors can develop through research or academic thinking in which
recognition of the entrepreneurial capacity of research results strengthens the arrangement of
another business to abuse the results. As is commonly mentioned, scholastic business regularly
includes graduates and early professional scientists/employees who frame other efforts than
senior or tenure.

It has been shown that entrepreneurs spend little time actually researching and analyzing
opportunities ; instead, entrepreneurs quickly screen opportunities, focus on a few important
issues, and are willing to adapt original plans even if they are not entirely sure of the results.
Most investors expect flexibility and acceptance of the need to adapt original plans.

Market Research
Research on the market is a simple process of information gathering. It allows you to predict
what level of sales will be generated by the new product, what profit and how best to optimize
sales. If you're not doing any research, you wouldn't know if you're developing a product that's
already on the market, if there's demand for such a product, or if it could be profitable.Then
again, if research has shown that an item satisfies a particular need and can be delivered and
sold for the benefit of your item, there may be potential interest for your product idea.
Some questions are provided below to determine how much of the product you might hope to
sell at a profit and how best to sell it: What are you planning to sell - a product or service? What
is the requirement of the product or service? How does that need meet? Who needs this service
or product? Who needs this service or product? How many people are going to buy this service
or product? What is this product's advantage over other similar products? What price will
customers pay and how often will they buy the product or service? Can it be made at a profit?
To help you achieve your goals, these questions should be answered reasonably.
Objectively answering these questions will help you identify your product's potential market and
build a marketing plan. On the other hand, you may want to reconsider and drop the idea before
proceeding if your research findings are not favourable.

What is sustainability?
Sustainability refers to a business ' ability to exist, be profitable and grow. To determine whether
your project or business idea is viable or not, you need to conduct an analytical analysis called a
feasibility study. Research, experience and business principles are used to determine the
likelihood that the project will be able to sustain itself.
Sustainability is a comprehensive exercise, particularly for a new business. Very few new
business world entrants have the skills and expertise to cover all of these aspects. For this
reason, field experts, such as business consultants, are called in to assist.

Resources Securing
The entrepreneur's willingness to take personal risk and demonstrate an almost evangelical
passion for opportunity will be key factors in securing other people's resources, including
investment. New ventures are challenged by a lack of market legitimacy, referred to as the
"liability of novelty," which makes it chal - lenging to secure resources. The role of third-party
referrals in raising investment is particularly important. Other key resource requirements include
skills, specialized product or service development equipment, business support facilities, and
consultants (e.g., legal, accounting, etc.).

Construction of a team
BA investors (and VCs) consistently rate the quality of the entrepreneur and founding team as
one of the top criteria in investment decisions. It is shown that new ventures founded by a team
are more successful than those founded by a single businessman. A complementary balance of
skills, skills and experiences determines the basis of business knowledge or "intellectual" from
which competitive advantages arise.
The entrepreneur needs to identify key people, if not founders, and attract them to the business
with a compelling opportunity vision that secures their services and commitment. Co-founders or
key individuals joining a founding team usually receive part ownership (e.g. equity) in the new
venture in order to encourage engagement and compensate for a typically lower salary common
to new ventuers.

Forming the Venture

Venture formation refers to the formal registration of a company in a particular jurisdiction for
legal and tax purposes. In this process, rights are assigned to a new venture and the founders
of the venture receive shares or an ownership stake in order to compensate them for the
knowledge and IP brought into the venture. Subsequent investors, referred to as "founder
shares," represent another type of share—"financial shares," which is directly related to the
invested capital.

Product or market service refining

Usually the product / service is refined, fine tuned and adapted to the relevant market segment
as teams are formed and resources are acquired. How many ' million dollars ' ideas do you
come up with in your life? You may have found the idea to be the easy part right now, the hard
part is to find ideas that will make money on the basis of your skills, experiences and interests.
Is it really an opportunity for the idea? Ideas have no value until they are put into a workable
form and show that they are going to sell at a price that the consumer or end user is willing to
pay. Marketing is the most critical aspect of your business, if nobody buys your product or
service, there is no business. Entrepreneurs ' vision, passion and business ethos are often
reflected in the products and services offered and how the venture is run, but not all ventures or
specific products and services will attract external investors.

Evaluation of financial feasibility

A feasibility study is a due diligence or evaluation process that allows you to determine if the
business you want to start is going to be financially viable, i.e. it will generate profits. It also
gives you the opportunity to evaluate the start-up costs and what it will cost to sustain the
business for at least one year. It's probably the most important exercise you'll do in the entire
start - up process. If your business is not viable, you will know before spending any money and
save a lot of heartbeat and debt. Due to the level of emotional, intellectual and often financial
capital committed, an objective assessment of the feasibility of a new business concept is often
difficult. Some common issues that may inform the decision include: What are the financial
objectives of the company? Is it a substitute for a wage position (i.e., suggesting a lifestyle
business) or a significant financial reward, suggesting a high - growth business? What is the
outcome I would like to achieve?

Summary of Entrepreneurs Venturing

The entrepreneurial venturing process, rather than linear or sequential, is iterative in nature,
reflecting the fact that there is no "one best way" to create a new venture. While identifying
opportunities is likely a first step in the process, after securing resources, some entrepreneurs
may form a business before building a team or refining a market technology.
Entrepreneurial venturing is a process of learning, especially for first - time entrepreneurs
(called "nascent" entrepreneurs). If the entrepreneur's perception of risk exceeds his personal
"bearable risk" threshold, then the opportunity may not be perceived. Various personal
circumstances, career alternatives and entrepreneurial perceptions of opportunity make each
new venture's training profile different.
Even if an entrepreneur assembles appropriate resources, determines financial feasibility as
positive, and decides to pursue the unity of an opponent, he / she may still be forced to realize
the opportunity if there is a lack of capital, collateral, or access to capital markets that we will
discuss next.

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