ENTREPRENEUR

Meaning of Entrepreneur

The entrepreneur is defined as someone who has the ability and desire to establish, administer
and succeed in a startup venture along with risk entitled to it, to make profits. The best
example of entrepreneurship is the starting of a new business venture. The entrepreneurs are
often known as a source of new ideas or innovators, and bring new ideas in the market by
replacing old with a new invention.

It can be classified into small or home business to multinational companies. In economics, the
profits that an entrepreneur makes is with a combination of land, natural resources, labour
and capital.

In a nutshell, anyone who has the will and determination to start a new company and deals
with all the risks that go with it can become an Entrepreneur.

Understanding the Meaning an Entrepreneur

Before the concept of entrepreneurship is explored, it is important to, first, understand the
meaning of ‘entrepreneur’ & also know who can be an entrepreneur. An entrepreneur is
someone who exercises initiative by organizing a venture to take benefit of an opportunity
and, as the decision maker, decides what, how, and how much of a good or service will be
produced. An entrepreneur supplies risk capital as a risk taker, and monitors and controls the
business activities. The entrepreneur is usually a sole proprietor, a partner, or the one who
owns the majority of shares in an incorporated venture. If one desires to be an entrepreneur,
the given equation is what describes, what an entrepreneur actually is

Entrepreneur + Capital = Products + Customers = Business.

1.1 Definitions
Let us now consider some definitions to understand who an entrepreneur is:

(i) 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”.

(ii) According to the International Encyclopaedia, an entrepreneur is “An individual who

bears the risk of operating a business in the face of uncertainty about the future conditions”.

(iii) Schumpeter’s Definition – The entrepreneur, in an advanced economy is an individual

who introduces something new in the economy – a method of production not yet tested by
experience in the branch of manufacturing, a product with which consumers are not yet
familiar, a new source of raw material or of new markets and the like”.

(iv) Adam Smith’s definition – “The entrepreneur is an individual, who forms an

organization for commercial purpose. She/he is proprietary capitalist, a supplier of capital and
at the same time a manager who intervenes between the labour and the
consumer. “Entrepreneur is an employer, master, merchant but explicitly considered as
a capitalist”.

(v) Peter F. Drucker’s Views on Entrepreneur – “An entrepreneur is the one who always
searches for change, responds to it and exploits it as an opportunity. Innovation is the specific
tool of entrepreneurs, the means by which they exploit changes as an opportunity for a
different business or different service”.

(vi) In the 20th century the theorist Arthur H. Cole defined an entrepreneur as

an ‘organization builder’.

1.2 History of the term ‘Entrepreneur’

The term entrepreneur is a French word, and is derived from the French word
“enterprendre”. It means “to undertake”. It is commonly used to describe an individual
who organizes and operates a business or businesses, taking on financial risk to do so.
Around 1700 A.D. the term was used for architects and contractor of public works. In
many countries, the term entrepreneur is often associated with a person who starts his/her
own new business.

1.3 Characteristics/Qualities of an Entrepreneur

Entrepreneurs have many of the same character traits as leaders, similar to the Great Man
Theory of Leadership. Entrepreneurs possess several qualities, which according to
Napoleon are 90 attributes. Some of those have been listed below.

Independe Believer in
Opportunity Systematic
nt & Information seeker quality and
grabber planner
achiever efficiency

Optimistic Keen learner Urge to build Initiative Persistent

Aggressive Dynamic and

Risk taker Goal setter Hard working
catalyst visionary

Persuasive Independent Well versed in High IQ, EQ Go – getter &

and and self- managerial skill and and SQ Never say die
networker confident strong team builder levels* spirit

*IQ- Intelligence Quotient, EQ -Emotional Quotient, SQ – Spiritual Quotient

An entrepreneur must possess a combination of all the three, in order to be successful.

1.4 Types of Entrepreneurs

Depending upon the level of willingness to create innovative ideas, there can be the following
types of entrepreneurs:

(i) Innovative Entrepreneurs – These entrepreneurs have the ability to think newer, better
and more economical ideas of business organisation and management. They are the business
leaders and contributors to the economic development of a country. Inventions like the
introduction of a small car ‘Nano’ by Ratan Tata, organised retailing by Kishore Biyani,
making mobile phones available to the common man by Anil Ambani are the works of
innovative entrepreneurs.

(ii) Imitating Entrepreneurs – These entrepreneurs are people who follow the path shown
by innovative entrepreneurs. They imitate innovative entrepreneurs because the environment
in which they operate is such that it does not permit them to have creative and innovative
ideas on their own. In our country also, a large number of such entrepreneurs are found in
every field of business activity. Development of small shopping complexes is the work of
imitating entrepreneurs. All the small car manufacturers now are the imitating entrepreneurs.

(iii) Fabian Entrepreneurs – Fabian entrepreneurs are those individuals who do not show
initiative in visualising and implementing new ideas and innovations. On the contrary, they
like to wait for some development, which would motivate them to initiate unless there is an
imminent threat to their very existence.

Meaning of ‘Fabian’- He/she is ‘a person seeking victory by delay rather

than by a decisive battle’ & ‘Drone’ is ‘a person who lives on the labour of
others’

(iv) Drone Entrepreneurs – Drone entrepreneurs are those individuals who are satisfied with
the existing mode and speed of business activity and show no inclination in gaining market
leadership. In other words, drone entrepreneurs are ‘die-hard conservatives’ and even ready
to suffer the loss of business.

(v) Social Entrepreneurs – Social entrepreneurs drive social innovation and transformation
in various fields including education, health, human rights, workers’ rights, environment and
enterprise development. Dr. Mohammed Yunus of Bangladesh who started Gramin Bank is
a case of social entrepreneur.

(vi) Agricultural Entrepreneur – The entrepreneurs who undertake agricultural pursuits are
called Agricultural Entrepreneurs. They cover a wide spectrum of agricultural activities like
cultivation, marketing of agricultural produce, irrigation, mechanization and technology.
(vii) Trading Entrepreneur – As the name itself suggests, the trading entrepreneur
undertakes the trading activities. He/she procures the finished products from the
manufacturers and sells these to the customers directly or through a retailer. These serve as
the middlemen as wholesalers, dealers, and retailers between the manufacturers and
customers.

(viii) Manufacturing Entrepreneur – The manufacturing entrepreneurs manufacture

products. They identify the needs of the customers and, then, explore the resources and
technology to be used to manufacture the products to satisfy the customers’ needs.

(ix) Women Entrepreneurs – Women entrepreneurship is defined as the enterprises owned

and controlled by a woman/women having a minimum financial stake of 51 per cent of the
capital and giving at least 51 per cent of employment generated in the enterprises to
women.

(x) Inventors & Challenger Entrepreneurs – Inventor entrepreneurs with their competence
and inventiveness invent new products. Their basic interest lies in research and innovative
activities & Challenger entrepreneurs plunge into industry because of the challenges it
presents. When one challenge seems to be met, they begin to look for new challenges.

(xi) Life-Timer Entrepreneurs – These entrepreneurs take business as an integral part to

their life. Usually, the family enterprise and businesses which mainly depend on exercise of
personal skill fall in this type/category of entrepreneurs.

Entrepreneurial Traits To Develop for Career Success

Entrepreneurs assume all the risks of their businesses which, while rewarding, can be a lot of
pressure. With the right entrepreneurial traits, however, they are better positioned to fulfill
their goals.

What are entrepreneurial traits? 

Entrepreneurial traits are the typical characteristics, abilities and thought patterns associated
with successful entrepreneurs. While some entrepreneurs are born with these traits, others can
develop them. These include:
1. Being a good leader

An entrepreneur is expected to manage a business and most professionals in this position are
responsible for its start-up as well. Typically, entrepreneurship involves finding and building
relationships with investors, overseeing employees and monitoring operations. To perform
these activities well, you need to be an effective leader. 

Leadership is the ability to lead others. An effective leader mobilizes people to achieve goals
and is perceived as a leader by their followers. There are ways in which you can cultivate this
trait, such as: 

Learning from your experiences

While it is normal to make mistakes when managing a team, you can identify the pros and
cons of your leadership style while you work and use your findings to improve how you lead
others. 

Researching the different leadership styles

For example, the democratic style of leadership, which involves more collaboration between
leaders and followers in the process of decision-making, can be effective during the initial
stage of setting up a business. It can give an employer better insights for decision-making
when hiring a large staff of experts is not possible. 

Learning about the leaders in your industry

You can learn how industry leaders manage their key stakeholders and use the leadership
tactics that work for your own business. 

Developing an approach to leadership that works for you

By considering new styles of leadership and evaluating your leadership style, you can find a
leadership style that suits you and your business. 

2. Being optimistic

Optimism can be described as focusing on the positives and being emotionally resilient to the
negatives. An entrepreneur who organizes, manages and operates a business is likely to face
many setbacks over time. For example, as you start your business, you will need to complete
a lot of paperwork concerning licenses, tax forms, business plans and bank accounts. In the
process of getting these documents ready, there could be many issues that check your
progress, such as delays in getting a license or structural issues in your business plan.

Being optimistic can help you to overcome these problems quickly instead of becoming
demotivated by them. Like the other important entrepreneurial traits, optimism is a quality
that you will need to develop and maintain in your career. There are ways in which you can
cultivate optimism, such as:

Surrounding yourself with optimism by hiring optimistic workers, including inspirational

quotes in your interior design or listening to upbeat music

Developing an optimistic outlook that influences the way you do things in your business and
impacts your decision-making process

Starting to look at everyday events as business opportunities

Identifying the positives in a problematic situation and focusing on them while you
troubleshoot

Finding a career coach who can help you to develop your optimism

Catching yourself being negative and reframing your mindset. For example, you can start
looking at issues that check your progress as learning experiences that can prepare you for
greater success in the future.

3. Being confident

Confidence is a subjective belief that you have what is needed for something. Entrepreneurs
ask banks for loans, hire workers, motivate teams and build relationships with clients and
suppliers, so it is important for an entrepreneur to be confident in their ability to do all these
things well. 

Being confident can help your business. Key stakeholders are more likely to respond
favorably to your proposals if you project your confidence. You can use several tactics to
become more confident, such as: 

Cultivate a belief in yourself and your abilities. Make a list of your successes and remind
yourself of them in times of doubt. For example, remind yourself that you are producing
something that people want to buy or remind yourself of the things that you have already
done to make your business more profitable. 
Plan and perform your daily activities with the mindset that you will successfully complete
them even if there are setbacks.  

Research how confidence can be communicated through nonverbal and verbal

communication and use these techniques to improve how you project yourself.

Role-play situations such as negotiations with key suppliers or discussions with investors by
practicing your message delivery, learning to answer typical questions and handling feedback
professionally. 

Hire a career coach who can help you to develop your confidence. 

Spend time with friends who have a positive impact on the way that you feel about yourself.
These social experiences can amp up your confidence.

Learn new hard and soft skills to improve your work performance. This will help you become
more self-assured at work.

Make changes that can improve your appearance such as dressing well, exercising regularly
and eating healthily to boost your confidence. 

4. Being passionate

Being passionate about building and running your business can make it easier to put in the
effort needed for a successful enterprise. If you need to boost your professional passion,
consider these tips: 

Try to think of your job as more than just a livelihood and cultivate a genuine love for what
you do. You can remind yourself of why you decided to start your own business or think of
the positive impacts that your business has on yourself, your employees, your clients or your
community. 

Start each business day by reminding yourself of all the things that you look forward to doing
such as closing a deal or hiring a new employee. 

Learn how to communicate your passion when you engage with employees, suppliers or
investors. Your enthusiasm for what you do can make your major stakeholders feel more
enthusiastic too, which could help your business.

5. Being disciplined  
Being disciplined can help you to achieve success as an entrepreneur. Entrepreneurs are
expected to work independently, set their own goals and overcome setbacks. To do these
things well, being disciplined is essential. You can use the following advice to become more
disciplined: 

Train yourself to be a self-starter who initiates and completes tasks without the need for
oversight. 

Give yourself a small reward each time you meet a goal. This will motivate you to reach your
targets without getting distracted.

Develop a work ethic that fuels your determination to work hard to achieve your professional
goals. Keep in mind that many entrepreneurs who have built successful startups have spent
more time at work than most of their employees.  

6. Being proactive

A proactive person anticipates opportunities and threats and tries to address them while a
reactive person simply reacts to situations. As an entrepreneur, it is always better to be
proactive instead of being reactive. Here are some ways in which you can become more
proactive:

Combine research with active listening to understand the needs of key stakeholders (your
customers, employers and business partners). 

Identify threats in events and develop solutions before these issues become more severe.  

Analyze your business operations regularly. Identify the areas that can be improved and
improve these areas. 

Try to develop long-term solutions to address the main causes of issues instead of developing
short-term solutions that are ineffective.

Use verbal and written communication to show employees that you welcome their feedback.
This will help you to identify areas that need to be improved or policies that need to be
explained more clearly to workers. 

7. Keeping an open mind

Keeping an open mind involves the willingness to listen to the opinions and ideas of others.
Typically, entrepreneurs start businesses in competitive industries that have already
established market leaders. To succeed in this position, it is necessary to see business
opportunities in everyday events and look for ways to improve business offerings. Consider
the following tips to develop this trait: 

Be willing to listen to others instead of refusing to accept that someone else could have a
valuable opinion. This can increase your pool of ideas and insights. 

Encourage coworkers or customers to provide feedback and consider their opinions to make a
product or service better. 

Use new ideas or insights about workflows, customer service or employee engagement to
improve a product or service offering. 

8. Being competitive

Competitiveness is a key trait among successful entrepreneurs. With globalization and

virtualization, industries are growing more competitive. To maintain a lucrative business, it is
essential to develop a competitive attitude. Consider the following advice to develop your
competitiveness: 

Keep track of what your competitors are doing with market research and market-monitoring
services, and ensure that you do not fall behind in terms of development. 

Identify the business tactics that work for your competitors as well as the ones that do not
work, and use these tactics to improve your business. 

Use product improvements, pricing, marketing and distribution to make your products more
competitive in the market. For example, you can price a new product in a market with several
established brands at a relatively low price and invest in creative advertising to motivate
customers to switch brands and try your product. 

Develop customer analyses and use your findings to keep improving your products or
services by making them more adapted to customer needs. 

Use employee analyses to develop incentives such as benefits, severance packages and
performance-based rewards to attract the best talent to your team. 

9. Being kind

While kindness is not usually considered an important trait in entrepreneurs, it can help you
in maintaining success. For example, while it is easy to focus on meeting your KPIs on sales,
failing to consider the well-being of your employees or overlooking the impact that a
production process has on your community could cause you problems over time or allow
your competitors to gain an advantage. You can use the following tips to develop kindness: 

Assess the working conditions of your full-time employees regularly and ensure that they
have the basics they need to perform well.

Re-evaluate your employee benefits periodically to make sure that you are providing a
package that can help workers as well as attract the best talent. 

Be proactive in improving your manufacturing or distribution processes to make them less

damaging to the environment and more sustainable. 

Foster a supportive, healthy company culture through strong policies that discourage
bullying, sexual harassment or gender-based discrimination.

Entrepreneurial Opportunties

Starting a business overseas is many entrepreneurs’ dream. However, before you decide
to launch a company abroad, make sure you plan everything.  Choose the industry you
are familiar with and perform thorough market research. Focus on finding gaps in the
existing products or services and innovate to fill them.

Entrepreneurship opportunities abroad to consider.

1.      Franchise Businesses

If you are just entering the business world, starting a new business abroad may be a high-risk
venture. When you have little entrepreneurial experience, consider opening a franchise.

By purchasing a franchise business abroad, you already have a ready-made business model
and strategy. Franchise businesses also have detailed marketing, customer service, and
branding rules. They provide you with training and guides on how to run your business. You
will get the support needed to get your franchise off the ground and succeed.

When looking for franchise businesses, focus on reliable resources such as local franchise
listings. Consider hiring a business lawyer to help you choose a reliable franchise business
that generates profits.
Finally, focus on your desired industry. Franchising goes far beyond the food sector. You
could also start a:

 Distribution franchise
 Investment franchise
 Manufacturing franchise
 Trade-name franchise

2.      Expand your Healthcare Business

When it comes to generating profits, many seasoned healthcare professionals consider the
U.S. only a slice of the pie. If you have enough experience, starting a business in the
healthcare industry may be a lucrative professional opportunity for you.

For example, the pharmacy industry is growing at an astonishing pace. However, to establish
a retail pharmacy business, make sure you follow strict industry regulations. Consult a lawyer
to understand the sourcing, storage, sales, support, and accounting laws in your target
country.

Cord blood banking has also gained immense popularity among parents. Consider partnering
with a local healthcare business abroad to diversify your services. For example, you can
combine stem cell storage service with genetic and genomic testing.

Make sure you research the local regulations when starting a cord blood bank abroad. For
example, in China, the government allows only one cord blood bank to operate in each
province. To start it, you need to gain government licenses, authorization, and permits. Italy
and France permit private cord blood banks.

3.      Remote Work

With the rise of digital technologies, such as the cloud, virtual communication tools, and
project management tools, the need for remote work has also grown. The Coronavirus
pandemic has accelerated the adoption of remote work across various industries.
Today, you can hire top-notch employees without having to expand your business to the
international markets. The technologies mentioned above help you manage a distributed team
and communicate with it effortlessly, irrespective of their time zone.

Sure, there are a few things you should know when hiring international staff. Your company
would still need to comply with a range of international recruitment laws. Therefore, consider
hiring remote employees via a global employment organization. They help you connect with
the right employee groups and meet the global payroll and employee management policies.

4.      Tourism-Based Businesses

Starting a tourism-based business can be an exciting business opportunity when moving

overseas. So, take a travel and tourism course and start preparing on time.

The industry provides entrepreneurs with numerous opportunities. For example, if you are
cash-strapped, you can choose a low-investment business, such as take-away kiosks, ice
cream shops, or bike rental stores.

If you have a spare room or an apartment, you can start a B&B business. It appeals to tourists
seeking more affordable accommodation options. Once you register on Airbnb, make sure
you optimize your listing. Add the basic information, such as the property type, the number
of guests, sleeping arrangements, etc. Next, make sure you hire a professional photographer.
First impressions matter, so professional photography and accurate data will help you attract
guests.

If you choose to start a B&B business, you need to understand the laws in your target area.
You may need to get a permit and obtain a license before accepting any guests. For example,
Paris and Miami Beach have strict regulations regarding hosting on Airbnb. On the other
hand, Amsterdam and Portland have far looser policies.

5.      Expand a Real Estate Business Internationally

The global real estate market is growing impressively fast. Therefore, if you are running a
US-based real estate business, why not expand it overseas?

For starters, make sure you research your target market. You need to understand the needs
and pain points of your foreign clients. Only that way can you adapt your sales strategy to
their needs and build trust with them.

For example, say a client is looking for a peaceful getaway for their family. Selling a
spacious farm-style house may be more logical than offering a condo in a busy area.

Also, make sure you obtain all licenses needed to start an international real estate company.
They vary from country to country, so make sure you do not violate any local laws or
regulations.

Most importantly, consider focusing on a single real estate area. Residential, commercial, or
industrial real commerce – choose one sector and stick with it.