Entrepreneur Charactics

Entrepreneur – Definition, Functions and
Characteristics
Entrepreneur is an individual who, operate, takes risks of a business. Which means the
process of running a business by their own. Due to economic crisis through out the world
these days, most of the countries are encouraging people to be and entrepreneurial which
leads to increase in the jobs for the people and increase the economy of the country.
People become entrepreneurs by them-self to start a business when they are controlled by
many factors around them. Some people want to leave their jobs and start own business
and few people want to earn money sitting at home. May be some people look for the needs
for a market and to meet those needs they start their own business by supplying products
for the market. If they succeed in this process this makes them successful entrepreneur.
Entrepreneur is an individual or group of individuals who identify the business

opportunity then try to reach the business goal or create business value through providing
an innovative solution for business difficulties and also realize and accept the risks involved
in the business. Entrepreneur came from small business, now a days small business have
changed the market significantly and plays an important role in the economic development.
The entrepreneur is defined as a person who creates and innovates a recognized value of
something around the perceived opportunities. Some people still chase for an opportunities
to create something after they have reached a position and live a life of luxury, they cannot
stop themselves because of there natural behavior. The recognized value can be either
Economic, Social or Aesthetic capital. Entrepreneurs can be found in large corporations
such as private or public sectors
An entrepreneur can be defined according to six characters; Focus, Advantage, Creativity,

Ego-inner and outer, Team and Social. Focus covers target focus, time focus and action
focus which provides an evidence of urgency by an entrepreneur to get on with things.
Creativity involves ideas and opportunities. Advantage differentiates between the value
created and added. Ego has six components split into inner and outer ego the inner ego
includes motivation, self-assurance and dedication. The outer ego includes responsibility,
accountability and an ability to deal with set backs. Team is a distinct feature that
manipulate the characteristics of focus, advantage and creativity. Social influence the
nature of the business whether it is a profit or non profit business and it also effects the
culture and style of an organisation in which way the employees are treated.
Functions of an Entrepreneur
Entrepreneur can be described as a small business owner from an economic prospective
which states that, these small business forms a structure. This structure plays an important
role in the economic development which improves the living and working condition and the
characteristics function of an entrepreneur can be reflected in a creative response to the
changing condition as a result the new ways of development comes in existence by the
entrepreneur. Therefore, the function of an entrepreneur is to improve the economy by
doing business in an innovative way. The main tasks of an entrepreneur is to recognize the
business opportunity, start of their own business, gathering funds for the start of business,
advertising the business in the market, analyzing the risk and providing leadership.
Characteristics of an Entrepreneur
1. Innovativeness: Innovation is one of the important character of an entrepreneur which
includes creating of new products or new quality, creating new methods of production to get
into the market or to create a new organisation or structure in business. A successful
innovation demands a will which is, it demands the leader of the innovation. Innovativeness
is a behavior of a person which characterizes the difference between entrepreneurship and
entrepreneurial orientation. Innovation is a systematic search for opportunities in new
market, products or ideas.
2. Need for achievement: The theory of McClelland on the need for achievement is one of
the most applied theories on entrepreneurship which suggest that, the need for
achievement forces the person to struggle for the success. A person who as a strong need
for achievement can solve problems themselves, set targets and achieve the targets by
their own efforts and they also deliver high performance in achieving the tasks and
innovative in doing things.
3. Locus of control: Locus of control is also an important character which is related to a
individual as whether he or she can handle the events in life. An individual with external
locus of control believe beyond the circumstances like luck and fate, where as individual
with internal locus of control believes in personal control events and effects in lives. For an
individual to become a entrepreneur he should have a internal locus of control.
4. Risk taking tendency: Risk taking tendency refers to an individual who can handle or
avoid the risks in a situations when needed. An entrepreneur is associated with risk, the
main factor of differentiating entrepreneurs from a employed workers was a doubt and risk
involved by the former. The difference between the manager and the entrepreneur in a
business activities are entrepreneur personally takes all the risks an profits involved in the
business how every an individual who is in uncertain environment causes risks related to
financial well-being,career opportunities, family relations and emotional state.
5. Tolerance for ambiguity: Uncertainty occurs when there is an insufficient data. An
individual should respond positively to ambiguous situations. People with low level of
tolerance for ambiguity find uncertain and unstructured situation more complicated.
Entrepreneurial managers are believed to tolerate ambiguity better than the conservative
mangers in the organisations because entrepreneurial managers face a less structured,
more uncertain set of possibilities and bear the whole responsibilities for decision making.
6. Self confidence: An individual should have a self confidence because they work on
complete demanding tasks. Self confidence is an outcome of an entrepreneurship an
entrepreneur demonstrates a higher degree of self confidence when compared to others.
7. Positive motions: The feelings and activeness of personality are motive forces for all
human creations. The positive motions affect the variables called feelings and emotions
which is a link between them and they are analysed in different environments. The positive
motion indicates the positive feeling which promotes creativity.
8. Creativity: Creativity performs a link between positive motion and innovation and also
performs a link between creativity and starting up a new venture. Creativity is considered as
one of the most important factors for creation of new venture which is created by individuals
and called as entrepreneurs. It includes the outcomes generated by creativity. Many
business ideas are generated by creativity but the creation should be in such a way that
they are commercially feasible to implement the ideas into real world. There are few factors
influencing the creation of new ventures.
9. Understanding the opportunity: Entrepreneur is one who explores for changes, responds
to it and searches for an opportunity. The opportunity describes the area of need or
challenge on which the problems should be focused. And problems should generate
answers to bring the key information and feelings etc.

Entrepreneur Charactics

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Entrepreneur – Definition, Functions and

Entrepreneur is an individual or group of individuals who identify the business

An entrepreneur can be defined according to six characters; Focus, Advantage, Creativity,

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