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Who is an Entrepreneur?
An entrepreneur is a person who:
- Does not work for an employee
- Runs a small enterprise
- Assumes all the risks and rewards of the enterprise, idea, good or service
Types of Entrepreneurs
There are four main types of entrepreneurs:
1.The Traditional Entrepreneur: The Traditional Entrepreneur: this sort of entrepreneur usually has some quite skill they will be carpenter, mechanic, cook, etc. Typically, they gain many experiences during a particular industry before they start their own business during a similar field.
2. The Growth Potential Entrepreneur: The will for this sort of entrepreneur is to start out an enterprise that will grow, win many purchasers and make any money. Their ultimate aim is to eventually sell their enterprise for a pleasant profit.
3. The Project-Oriented Entrepreneur: this sort of entrepreneur generally features a background within the Arts or psychology. Their enterprises tend to specialize in something that they’re very hooked in to.
4.The Lifestyle Entrepreneur: this sort of entrepreneur has usually worked as an educator or a secretary. They are more curious about selling something that folks will enjoy, instead of making any money.
Characteristics of an Entrepreneur
Successful entrepreneurs have the following characteristics:
- They are highly motivated
- They are creative and persuasive
- They are mentally prepared to handle each and every task
- They have excellent business skills- they know how to evaluate their cash flow, sales, and revenue
- They are willing to take great risks
- They are very proactive-this means they are willing to do the work themselves, rather than wait for someone else to do it
- They have a vision-they are able to see the big picture
- They are flexible and open-minded
- They are good at making decisions
Entrepreneur Success Stories
Dhiru Bhai Ambani
Dhirubhai Ambani began his entrepreneurial career by selling “bhajias” to pilgrims in Mount Girnar on weekends. At age16, he went to Yemen. he worked as a gas-station attendant. In a company, he worked as a clerk. Reliance went on to become the first Indian Company to feature in the Forbes 500 list.
Dr. Karsanbhai Patel
He made detergent powder in the backyard of his house. He sold his product door-to-door. He offered a money-back guarantee with every pack that was sold. He charged Rs.3 per kg when the most cost-effective detergent at that point was Rs.13 per kg. Dr. Patel eventually started Nirma which became an entirely new segment within the Indian domestic detergent market.
The Entrepreneurial Process
Let’s take look at the stage of the entrepreneurial process.
Stage 1: Idea Generation: The entrepreneurial process begins with an idea that has been thought of by the entrepreneur. The idea may be a problem that has the potential to be solved.
Stage 2: Germination or Recognition: a possible solution to the identified problem is assumed in this stage.
Stage 3: Preparation or Rationalization: In this stage, The problem is studied further and when research is done to find out how others have tried to solve the same problem.
Stage 4: Incubation or Fantasizing: It involves creative thinking for the purpose of coming up with more ideas. Less thought is given to the problem areas.
Stage 5: Feasibility Study: The next step is the creation of a feasibility study to determine if the idea will make a profit and if it should be seen through.
Stage 6: Illumination or Realization: This is when all uncertain areas suddenly become clear. The entrepreneur feels confident when his ideas in merit.
Stage 7: Verification or Validation: In this final stage, the idea is verified to see if it works and if it is useful.
Take a look at the diagram below to get a better idea of this process.
Introduction to the Entrepreneurship Ecosystem
The entrepreneurship support ecosystem signifies the collective and complete nature of entrepreneurship. New companies emerge and flourish not only because of the courageous, visionary entrepreneurs who launch them, but they thrive as they are set in an environment or ‘ecosystem’ made of private and public participants. These players nurture and sustain the new ventures, facilitating the entrepreneurs‘ efforts.
s. An entrepreneurship ecosystem comprises of the following six domains: :
- Favorable Culture: This includes elements such as tolerance of risk and errors, valuable networking and positive social standing of the entrepreneur.
- Facilitating Policies& leadership: This includes regulatory framework incentives and the existence of public research institutes.
- Financing Options: Angel financing, venture capitalists and microloans would be good examples of this.
- Human Capital: This refers to trained and untrained labor, entrepreneurs and entrepreneurship training programs, etc.
- Conducive Markets for product & Services: This refers to the existence or scope of the existence of a market for the product/service.
- Institutional & Infrastructural Support: This includes legal and financing advisers, telecommunications, digital and transportation infrastructure, and entrepreneurship networking programs.
These domains indicate whether there is a strong entrepreneurship support ecosystem and what actions should the government put in place to further encourage this ecosystem.
Every entrepreneurship support ecosystem is unique and all the elements of the ecosystem are interdependent. Although every region’s entrepreneurship ecosystem can be broadly described by the above features, each ecosystem is the result of the hundred elements interacting in highly complex and particular ways.
Entrepreneurship ecosystems eventually become(largely) self-sustaining. When the six domains are resilient enough, they are mutually beneficial. At this point, government involvement can and should be significantly minimized. Public leaders do not need to invest a lot to sustain the ecosystem. It is imperative that the entrepreneurship ecosystem incentives are formulated to be self-liquidating, hence focussing on the sustainability of the environment.
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