MODULE 5

▸ ENTREP
Unit 1
Origin and Nature of Entrepreneurship
Module 5
▸

CHARACTERISTI
CS OF
ENTREPRENEUR
MODULE OBJECTIVES:
▸
At the end of the course, students
should be able to:

1. Explain the various characteristics

of an entrepreneur.
2. Differentiate entrepreneur and a
leader.
Introduction
▸ Entrepreneurs are not superhero. They don’t perform
miracles. They are just human beings like many of us,
but distinct in some ways.
▸ They have an inherent positive characteristics
which lead them to business success. Characteristics
are distinguishing traits or qualities, like honesty,
courage, integrity or punctuality. Entrepreneurs have
many favorable interdependent characteristics which
make them successful and extra-ordinary persons.
However, their business success depends on realistic
goals and hard work. Usually, goals are achievable if
these are based on the abilities, interests and resources
of individuals.
Entrepreneur, defined
There are several definitions or meanings of entrepreneur:
▸
▸ 1. Cantillon defines entrepreneur as one who
bears uncertainty, buys labor and materials, and sells
products at uncertain prices.
▸ 2. In French concept, he is an adventurer,
undertaker, and projector. His function is to supply
and accumulate capital.
▸ 3. To Schumpeter, he is an innovator. He does
new things in a new way. He supplies new
products, makes new techniques of production,
discovers new markets and develops new
sources of raw materials.
▸ 4. Peter Drucker says that an entrepreneur
always searches for change, responds to it and
exploits it as an opportunity.
5. Say, an economist, explains that an
entrepreneur is one who shifts economic resources
from an area of lower productivity to an area of
higher productivity and greater yield.

6. The American Heritage Dictionary defines

entrepreneur as a person who organizes, operates
and assumes the risk for business ventures.
▸ 7. The pure entrepreneur are those who
launch their own ventures from scratch.
They develop scarce resources into
successful business by instinct for
opportunity, sense of timing, hard work,
and idea producing activity.
▸ 8. According to Geoffrey Meredeth, the
author of The Practice of Entrepreneurship,
entrepreneurs are people who have the ability
to see and evaluate business opportunities, to
gather the necessary resources and to take
advantage of them, and to initiate appropriate
action to ensure success.
▸ 9. Medina defines entrepreneur
as the person who undertakes
entrepreneurial activities. He
identifies an economic need,
considers offering a business
solution, proceeds to assemble the
resources required and assumes the
risk of either succeeding or failing.
▸ 10. The New Encyclopedia Britannica
treats an entrepreneur as an individual who
bears the risk of operating a business in the
face of uncertainty about the future
conditions. This definition deals with
uncertain future and that causes risk in the
operation of a business and entrepreneur is
required to bear the risk.
▸ 11. According to Oxford Dictionary an
entrepreneur is a person who sets up a
business or businesses, taking on financial
risks in the hope of profit.
Characteristics of an entrepreneur
▸ 1. Reasonable Risk-Takers.
▸ Entrepreneurs enjoy challenges. But they are
careful and calculating. So, they shy away
from high-risk situations, because these may
not be attainable. However, entrepreneurs also
avoid low-risk situations, because there are no
challenges. A risk situation exists when results
are not certain. Either it is success or failure.
In business, it is profit or loss.
2. Self-Confident

▸ . Entrepreneurs have strong faith in their

abilities. They believe they can be the best in
their field. They do not accept things as they
are. Because they believe they can do things
better
3. Hardworking.

▸ Successful people always attribute their

success to hard work. Thomas A. Edison said
that success is 99 percent perspiration and 1
percent inspiration. We can easily confirm this
by observing top executives in governmental
and non-governmental organizations. They
work far beyond the 8-hour schedule.
4. Innovative.

▸ Entrepreneurs are creative. They do things in

new and different ways. For example, they
create new products or services, new methods
of production, new markets and new sources of
raw materials. They love to explore the
unknown, and to blaze ne paths of progress.
5. Leadership.

▸ Entrepreneurs are leaders by the

very nature of their functions. They
are people who are task-oriented.
They are effective planners,
organizers and implementers. And
they are achievers.
Here are the essential leadership qualities:
▸ a.Selfless dedication
▸ b.Purpose and Vision
▸ c.Courage
▸ d.Conviction
▸ e.Enthusiasm
▸ f.Integrity
▸ g.Tact
▸ h.Hard work
6. Positive Thinkers

▸ . Entrepreneurs are positive thinkers. They think

of success and bright sides. Such success
consciousness leads entrepreneurs to success.
Success begets success. Dr Charles Flory, a noted
American psychologist said that wealth does not
always come to the most intelligent or to the most
ambitious individuals, but to those individuals
who think money.
7. Decision-Makers

▸ . Entrepreneurs make decisions. They cannot

avoid this. Being creative or innovative, they
always make decisions on how to improve their
products, how to create new markets, how to
increase consumer satisfaction, or how to
maximize profits. The success of their business
depends on their ability to make the right
decisions.
Decision-making has six distinct phases:

▸ 1. Identifying the problem;

▸ 2.Gathering the data about the problem
▸ 3.Analyzing the data
▸ 4.Formulating alternative solutions
▸ 5.Selecting the best solution; and
▸ 6.Implementing the solution/decision
Characteristics of an entrepreneur according to Sujan Patel, Co-
founder of Web Profits

▸ 1. Creative
▸ Entrepreneurship starts with an idea. To be
successful, you need to always be thinking of new
ideas and better ways of doing things.
2. Passionate

▸ Perhaps the most important characteristic

for entrepreneurs, passion is essential to
any business owner or working
professional's success. Without passion,
there is no reason for your work and no
drive to do it.
3. Motivated

▸ Steve Jobs said, "I'm convinced that

about half of what separates the
successful entrepreneurs from the non-
successful ones is pure perseverance."
4. Optimistic

▸ Do you see the glass half empty or half full? For

entrepreneurs, it's always half full. Entrepreneurs
always look on the bright side and are constant
dreamers. They look at how they can do things
better and make the world a better place. They
never dwell on the past or the negative. Instead,
they focus on moving forward and moving up.
5. Future-oriented

▸ Because entrepreneurs are focused on

moving forward, they are always looking
toward the future. Entrepreneurs are very
goal-oriented and know exactly what they
want. They set their goals and everything
they do is aimed at achieving those goals.
6. Persuasive

▸ To be successful in business, you have

to know business. If you're a people
person and know how to get people to
listen to you, you could be a successful
entrepreneur.
7. Flexible

▸ According to professional development coach

Ruchira Agrawal in an article for Monster, "As
an entrepreneur, you'll typically start out as a
'solopreneur,' meaning you will be on your own
for a while. You may not have the luxury of
hiring a support staff initially. Therefore, you
will end up wearing several different hats,
including secretary, bookkeeper and so on."
8. Resourceful

▸ In business, problems aren't a matter of if,

but when entrepreneurs do not shy away
from challenges or conflicts. Instead, they
face them head on and come up with a
solution. They know how to solve
problems effectively.
9. Adventurous

▸ In an interview with Y Combinator president

Sam Altman, Facebook founder Mark
Zuckerberg said, "In a world that's changing
so quickly, the biggest risk you can take is not
taking any risk."
10. Decisive

▸ There is no room for procrastination in business.

Entrepreneurs know what needs to be done and
don't hesitate to make the decisions that will lead
them to success. They don't let opportunities pass
them by; instead, they seize the day and get the job
done.
Activity Number 1
▸ Prepare a short report about an entrepreneur
P
and their characteristics which contribute to
their success.

▸ 100 words only

▸
Rubrics
Well-organized Well-organized Well-organized Well-organized
thoughts and ideas thoughts and ideas thoughts and ideas are thoughts and ideas are
are very satisfactorily are satisfactorily fairly evident not evident
evident evident

Grammar and format Grammar and format Grammar and format Grammar and format
are very highly are highly observed are fairly observed are not observed
observed