Explain the characteristics of an entrepreneur.
Meaning: -Entrepreneur plays an important role in the development of any country. They are the backbone of nation’s economic progress. Entrepreneurs are innovators but in their role they act as the owners, producers, coordinators, market creators, decision takers and risk takers. They organize land, labour and capital to provide much needed goods and services to the society and therefore are referred to as fourth “factor of production’. He is also called as caption of the industry.
Definition: - “An entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain (doubtful) prices.” …………Defined by (Cantilon)
The nature of Entrepreneur is explained as follows:
1. High goals: -The Entrepreneurs have very positive desires to achieve high goals. Such high self motivation keeps them strong and confident to face various obstacles and misfortune (bad luck). Hence they are successful in setting a prosperous organization.
2. Future foresight: - The Entrepreneurs have good foresight to know about the future market development and the external business environment. He can take proper decision according to the market situations and market changes. This also helps them to take timely action.
3. Mental abilities: - Mental ability consists of intelligence and creative thinking. Ti be an Entrepreneur, a person must be intelligent and have the ability of creative thinking. .
4. Technical Knowledge: -An Entrepreneur should have sufficient technical knowledge about the products and his plan to produce. Timely change of technology should always be updated to be in pace (speed) with the market.
5. Hard Work: - A successful Entrepreneur will always be ready to work hard. Hard work will always distinguish a successful entrepreneur from an unsuccessful one.
6. Highly optimistic (positive): - An entrepreneur always thinks positive in all the activities. He is always optimistic with the market situations even in failure times. Such positive attitude helps the entrepreneur to run successfully.
7. Communication skills: -This refers to communicate effectively. It is very important that the sender and receiver of the message are being understood perfectly. An entrepreneur has to communicate to various parties i.e. customers, suppliers, creditors, employees, etc.
8.Creativity: -An entrepreneur should be creative; Creativity is the ability to bring something new into existence. Innovation is the process of doing new things, and creativity is a prerequisite (requirement) to innovation.