Objectives:
After studying this unit, you should be able to ;
1. Understand the meaning of entrepreneur
2. Describe the different types of entrepreneur
3. Explain the functions of entrepreneur
4. State the qualities of a successful entrepreneur
5. Outline the reasons for entrepreneur failure.
DEFINITION OF ENTREPRENEUR
Innovative Entrepreneur
Innovative entrepreneurs are motivated by the idea of
doing something new. They welcome the advancements in
science, technology and research fields.
Imitative Entrepreneurs
They do not innovate but imitate the products and policies
of innovative entrepreneurs functioning in developed
country.
Fabian Entrepreneurs
These entrepreneurs take great precaution and are of
suspicious mind in experimenting any change in their
enterprises.
They do not welcome the changes.
They are lazy and indifferent towards the enterprise.
They have moderate ambitions.
They are happy in carrying on their family business in a
traditional manner.
Drone Entrepreneurs
These entrepreneurs stick up to the old values, customs and
traditions.
They are not willing to effect changes in their enterprise,
rather they oppose such changes.
They blindly follow the traditional methods of business even
when it causes loss to them.
First generation Entrepreneurs
These entrepreneurs have no entrepreneurial background.
They do not inherit entrepreneurship from their earlier
generation.
They are first generation entrepreneurs in their family.
Rural Entrepreneurs
These entrepreneurs are having their enterprises in rural area.
They are engaged mostly in traditional businesses, agriculture
and village industries.
They utilize the natural resources available in local place and
manufacture the goods required by the society.
Individual Entrepreneurs
These entrepreneurs start an enterprise by investing own funds
and manage it themselves. If required, they employ a few
employees.
They are sole operators. These entrepreneurs are found on a
large scale in small business, small industries, village and
cottage industries.
QUALITIES OF SUCCESSFUL ENTREPRENEURS
Ambition
Successful entrepreneurs have high ambitions about their
venture. They want to achieve high goals in business.
They are able to overcome the obstacles in their business and
find out new ways and means.
Creativity
Successful entrepreneurs are creative or innovative in their
task.
They do new things, manufacture new goods, find new sources
of materials, use new methods of production, and search new
markets and so on.
Self-confidence
Successful entrepreneurs have confidence in their skills and
abilities.
They are sure about success in their business.
They do not hesitate to launch new products, expand and
diversify their business.
They are confident of overcoming any unanticipated
problem and survive in the adverse conditions
Motivational ability
The successful entrepreneurs have ability to motivate the
employees. Motivational ability is also required for getting the
expected response from the customers, vendors and the
government.
Foresight
They forecast the future business environment.
Foresight helps them to cope up with future environment
effectively and stay ahead of others in the industry.
Decision-making ability
The successful entrepreneurs have a good decision making
ability.
They make decisions promptly and accurately.
The decision making ability helps them to solve the
business problems satisfactorily and exploit the
opportunities.
Courtesy
The successful entrepreneurs deal with the customers,
vendors, employees, government officials and the general
public in a courteous manner. Courtesy and modesty leads
them to success.
Communication skill
With good communication skill entrepreneurs are able to
convince effectively their ideas, thoughts and job
requirements to the employees and get the work done in a
better manner
FUNCTIONS OF ENTREPRENEURS