Entrepreneurship

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What is an entrepreneur?
An entrepreneur is a person who undertakes the risks involved in establishing and running a business in
the hope of making a profit.

Advantage and Disadvantages of entrepreneur

Advantages of entrepreneur
1) The owner the opportunity to be their own boss.
2) Make decisions and hopefully make a profit.
3) Potential profits can be more than salaries.
4) A flexible schedule

Disadvantages of entrepreneur
1) Possibility of a failed business
2) Risk of future financial instability
3) Demand on your time.
4) Uncertain income ‘

The role of the entrepreneur in the decision making process

a) Conceptualising
b) Planning
c) Accessing financing
d) Organising the factors of production
e) Operating the business
 f) Evaluating
g) Risk bearing

Conceptualising all the ideas related to the type of product or service the business will offer as well as
the factors that will affect profitability.

Planning what is required to expand the idea into practice for example, developmental design of the
product or service, assessing marketing potential, choice of premises, machinery and labour required, plus
assessing the degree of profit possible.

Accessing funds needed to establish and develop the business. Some funds may already be available (for
example, existing savings, life insurance policies and so on) or need to be sourced from others as a loan
(for example, from a bank or family/friends) or as an investment (for example, partners or shareholders).

Organising
This means identifying suitable premises, identifying suitable workers and employing them effectively
and defining policy decisions in a manner that all levels of staff can understand.

Characteristics of the entrepreneur

a) Creative
b) Innovative
c) Flexible
d) Goal-oriented
e) Persistent
f) Persevering
g) Risk-taker

Creative: Entrepreneurs have vision, imagination and originality.

Innovative: Entrepreneurs spot a niche in the market and readily recognise an opportunity to create a
new idea or a new product or service.

Flexible: A good entrepreneur is someone who is flexible, adaptable and able to change their original
business plan as circumstances require. They recognise technological and other developments and adapt
to embrace such changes.

Goal-oriented: Entrepreneurs are people who have clear, realistic and measurable goals that they have
set for themselves and their business. These goals may be adjusted with time and experience - but they
will always be clear and measurable.

Persistent: A successful entrepreneur is persistent and resilient and will not be put off by setbacks.
Someone who is likely to give up easily is not going to be a successful entrepreneur. All entrepreneurs
suffer setbacks at times but they have to have the perseverance to fight back against them.
Persevering: A good entrepreneur is committed and self-motivated. They are inspired to work hard for
long hours to achieve success. They will not blame others when things go wrong, but will accept
responsibility for the problems they create. A good entrepreneur sees themselves as others do, for
example their employees, customers and other business people.

Risk-taker: A successful entrepreneur has a flair for spotting business opportunities and takes calculated
risks when necessary. Making decisions to manufacture products or services that people might buy is
potentially uncertain. Entrepreneurs risk their own money, and sometimes the money of others, to set up
and run a business.

Leadership qualities of entrepreneurs

A successful entrepreneur requires leadership qualities that inspire others to work hard and
support their drive to achieve the desired success.

• They have good communication skills and are able to make their plans and goals clearly understood by
others.

They have a clear vision of where they want go and how to get there.

• They are supportive of their team, which they rely on to achieve their goals.

• They have self-belief and confidence, but they also recognise their own strengths and weaknesses.

• They share success; they want the whole team to know it is their success as well as the entrepreneur's.

• They are involved in what is taking place around the business rather than staying in their office.

• They create an atmosphere that encourages business growth by seeking opinions, ideas and solutions to
problems from employees.

They are honest with employees, encouraging a two-way feedback of both positive and negative
opinions.

They demonstrate their perseverance to all personnel, encouraging others to remain committed in order
to achieve success.

• They invest in learning new techniques and skills themselves and for their employees, encouraging all
to 'think outside the box'.