Definitions of Entrepreneur on the Web:

• An innovator of business enterprise who recognizes opportunities to introduce a new product, a

new process or an improved organization, and who ...
www.powerhomebiz.com/Glossary/glossary-E.htm
• One who assumes the financial risk of the initiation, operation and management of a given
business or undertaking.
www.4hb.com/25e.html
• Individual who starts a new business. Venture capital is often used to finance the startup costs in
return for an equity share. Once the business is established, an entrepreneur may choose to
raise additional capital by selling equity shares to the public through an initial public offering.
www.tiaa-crefbrokerage.com/invest_glosry_EnEw.htm
• A person who takes the risk of organizing and operating a new business venture. (This is an
attitude that can be of value in more traditional employment as well.)
www.acceleratoronline.com/viewpage.asp
• One who assumes the financial risk of starting and operating a business venture. Usually carries
the connotation of being creative, self-motivated ...
www.patsula.com/smallbusinessdictionary/
• [en·tre·pre·neur] - A person who organizes, operates, and assumes the risk for a business
venture. [French, from Old French, from entreprendre, to undertake]. See BizEntrepreneur.com
www.salesbooks.com/business_glossary.php
• A risk-taker willing to try new things typically by creating new businesses (can be product,
service, technology or market-driven)
www.connectsi.us/visions/documents/VEGlossary010807Rv5.doc
• A person who organizes and manages a business undertaking, assuming the risk for the sake of
the profit
www.ifdn.com/teacher/glossary.htm
• is a person who has the ability to recognise Opportunities of benefit to an enterprise, and the will
and capacity to undertake appropriate innovative action while accepting the associated risks. See
also: Innovation, Intrapreneur.
www.quantum3.co.za/CI%20Glossary.htm
• Person who owns, operates, and takes the risk of starting a business venture.
www.economicadventure.org/teachers/glossary_pope.cfm
• A person who engages in the process of entrepreneurship.
www.mvp.cfee.org/en/glossary.html
• Means a person who starts and/or operates a business which includes identifying opportunities in
the market, taking risks with a view of being rewarded with profits
https://www.fnb.co.za/commercial/findsolutions/bee/beeGlossary.html
• a person who sets up and manages a project or business
www.stepin.org/glossary.php
• A word to describe an enterprising businessman or woman. Normally an owner of an independent
business.
www.vantisplc.com/Vantis/Services/CorporateFinance/JargonBuster.htm
• French word which translates roughly as "enterpriser." In capitalism, a speculator who invests
capital in stocks, land and machinery, as well as the exploitation of wage labor, in the pursuit of
profits.
www.workers.org/marcy/perestroika/glossary.html
• Individual who starts an enterprise with its associated risks and responsibilities.
www.peakagents.ca/glossary/e4.htm
• An entrepreneur is someone who assumes the financial risk of beginning and managing a new
venture. The venture can be based on a totally new idea, a new way of doing something, a new
location, or attempting something no one else has done before.
www.cybercitymommies.com/Glossary.html
 • A person who has the skills and initiative to establish their own business. This person also
manages the business and assume the financial risks associated with the venture. Click here for
additional information.
www.canequity.com/mortgage-resources/
• Someone who recognizes the desires that people have and then brings together the appropriate
natural resources, labor, and capital to meet these desires, taking the risk involved.
daphne.palomar.edu/llee/BGlossary.doc
• Entrepreneurs are businessmen - people who take risks and invest to produce goods and
services in order to make a profit.
www.patana.ac.th/linklearn/Linklearn_interface/results/ll_check.asp
• someone who organizes a business venture and assumes the risk for it
wordnet.princeton.edu/perl/webwn
• An entrepreneur is a person who has possession over a new enterprise or venture and assumes
full accountability for the inherent risks and the outcome. The term is a loanword from French and
was first defined by the Irish economist Richard Cantillon. ...
en.wikipedia.org/wiki/Entrepreneur
• A person who organizes and operates a business venture and assumes much of the associated
risk; A person who organizes a risky activity of any kind and acts substantially in the manner of a
business entrepreneur; : A person who creates one or more new nonprofit organizations, or one
or more ...
en.wiktionary.org/wiki/entrepreneur

What Is an Entrepreneur?
There are many differing views on what makes someone an entrepreneur and what an
entrepreneurial venture is. In a sense the definition itself is evolving as the field itself comes into
the mainstream of American business. While we speak of many of the originators of businesses
in the past as entrepreneurs, it was not until the mid1970's that the concept became a prevalent
enough part of our economy that definitions even were necessary. Consequently, we see in the
literature a wide variety of possibilities for what this field of endeavor really is.

Looking online, the Webster's Revised Unabridged Dictionary from 1913 defined an
entrepreneur as "one who creates a product on his own account." That sounds a trifle stuffy, is
very limited and doesn't fit for many of the people widely known as entrepreneurs. The meaning
of the word entrepreneur has certainly evolved since 1913.

Does just creating a product make you entrepreneurial if you never do anything with it? What if
you take someone's product and make it a success? That is not entrepreneurial? Investorwords, a
set of definitions of financial terms, defines an entrepreneur as "an individual who starts his/her
own business." At what point then are you no longer an entrepreneur? When are you no longer
starting up? From the Merriam-Webster Online comes a more current definition: "one who
organizes, manages, and assumes the risks of a business or enterprise." Assuming risk certainly
fits most entrepreneurs. This definition is definitely richer, but still lacks the sense of innovation
that one usually associates with entrepreneurs.

Moving from formal definitions, Ashoka, an organization which promotes social change, calls
for "social entrepreneurs," people who open up major new possibilities in education, health, the
environment, and other areas of human need, "just as business entrepreneurs lead innovation in
commerce, social entrepreneurs drive social change." The concept of business entrepreneurs
leading innovation is appealing because it denotes more than just starting a business. An
entrepreneur herself, Daile Tucker, provides her thoughts on what it takes to be an entrepreneur
in Are You an Entrepreneur? She defines an entrepreneur as "a person who has decided to take
control of his future and become self-employed whether by creating his own unique business or
working as a member of a team, as in multi-level marketing." She identifies work ethics and
several character traits of successful entrepreneurs, ending with "Entrepreneurs compete with
themselves and believe that success or failure lies within their personal control or influence."
This begins to touch on motivational aspects for being an entrepreneur which may distinguish the
type of person drawn to being an entrepreneur.

Mark Hendricks takes Tucker's definition a step further, acknowledging innovation, but also
providing alternatives. Hendricks suggests that to be an entrepreneur you don't particularly have
to be daring. Many entrepreneurs are perfectly content to sell tried-and-true products, bringing a
steady income without the intensity of launching a new product. He labels these lifestyle
entrepreneurs. They want to be their own boss and make a good living, but they don't need to be
on the cutting edge, which entails living where one wants, working with people one likes, and
doing work one wants to do.

An Academic Perspective

The Evolution of the Professional Entrepreneur

To quote Tom O'Malia from his introduction to the book, Been There, Done That,
"Entrepreneurs are about loving their journey, not their destination." For me, this sums up the
excitement and fun of being an entrepreneur. And that is why it is not synonymous with being a
small businessperson. The entrepreneurial mind set can operate in all sizes and types of busine
Tips to become a successful entrepreneur

Indian entrepreneur? These two words no more ring a surprise. While entrepreneurs are blooming across
small and big towns in India the people who support them convert their dreams into reality are inceasing
as well.

The Indian Angel Network is one such organisation that invests in early stage businesses of
entrepreneurs who can create immense value. The members of this network have prior entrepreneurial
and/or operational experience that they bring to help nurture and grow early stage businesses.

Ranjit Shastri is one such influential member of the Indian Angel Network. He co-founded PSi, Inc, an
investment advisory firm incorporated in New York with an associated company in India. PSi has assisted
a wide range of international investors in India, including both strategic investors and private equity firms,
in identifying opportunities in India.

In the first of a series where members of the Indian Angel Network offer their tips to entrepreneurs in
India, Ranjit Shastri discusses his experience and what he has learnt from it. A Get Ahead Special.

Over the past couple of decades I've observed many entrepreneurs in India and abroad, and have seen
some of them achieve great success and others stagnate or sink into oblivion. I've been asked to share
some of these experiences, and can also share some more recent experiences that I've had through the
Indian Angel Network, India's largest and only-pan India network of individual early stage investors, which
has been instrumental in kick-starting a number of ventures in India.

The tips that I've listed below are not based on anything that I've read -- in fact, numerous books have
been written on the subject -- but on real experiences with people that I've met and done business with
over the years. This is not a scientific or exhaustive list, but the thoughts that have come immediately to
mind. I'm sure my entrepreneurial friends will add many more ideas in articles that will follow in the future.

There are three sets of issues that one must consider when thinking about how to become an
entrepreneur, particularly if you are born into a middle-class family of professionals (one or more of your
parents work for a large company).

The first involves getting started, leaving a safe job or career prospects and jumping into the
entrepreneurial fray.

The second issue has to do with maintaining and building a viable business, successfully scaling up so
that one has not just managed to 'survive' but also to grow the business and create great value for
investors.

Finally, there's the issue of knowing when to move on, either by selling the business or handing over to
someone who can bring new energy, skills and ideas to bear. Let's take each of these issues in turn, and
examine some of the things you can do to address them.

Getting started

Tip #1: Don't worry about not being courageous enough for the uncertainty of the business world, as
being an entrepreneur has nothing to do with courage. People who observe entrepreneurs leaving a
secure job and taking the plunge into the unknown sometimes marvel at their courage (or foolhardiness).
Most successful entrepreneurs that I've met, however, don't see themselves as particularly brave. In fact,
they do a lot of homework and make contingency plans that take into account the possibility of failure.

I've met a number of entrepreneurs who have left McKinsey & Co., my first employer after business
school, because they recognised that becoming a director at McKinsey is not guaranteed for even some
of the hardest working, smartest people that you come across in the business world.

Becoming a director at any large organisation has much to do with factors that are not in your control,
including personal relationships and the economic cycle that the company happens to be in when
promotion decisions are made. While organisations try to be fair, they operate in a world that isn't, and if
you recognise that staying put is not necessarily safe you are more likely to get over the fear of venturing
out.

Tip #2: Look for a big idea, and be rational.

There's no point taking a big risk if you have a small idea, and from an economic perspective, it's logical
to concentrate on expected value, which means the potential value creation times the probability of
actually achieving it. So if your job is 100% secure, and the chances of entrepreneurial success are only
10%, then compare your future salary against the expected future value of your venture (the 'payoff')
times 10%.

If the expected value (payoff times 10%) is more than your salary, then logically you should give it a try.
However, most people are irrationally risk averse, so if the expected value is not vastly higher than their
salary, they would opt for the more certain outcome.

On the other hand, people who are destined to become entrepreneurs are more likely to be sceptical
about the security of their job, so they wouldn't assign a 100% probability to the so-called safe option.

Tip #3: Start small.

In Tip #2, I said it's important to think big, but for most entrepreneurs it's also important to start small. A
good example is SchoolTrainer, which was started by a Delhi-based Hindi and Math tutor. He has a big
idea, but has started out small (just himself).

He currently has less than 100 teachers on his panel, but expects to scale up to a thousand over the next
few years. Starting small enables you to experiment, work out the bugs in your systems, and prove your
idea. The discipline of a tight budget also forces small companies to do what customers ask them to do.
Companies that start operations with a lot of resources often scale up too quickly, waste money and enjoy
the luxury of not having to listen to customers.

Tip #4: When faced with the fear of giving up a secure job, concentrate on the equally frightening
possibility of someday looking back with regret.

In other words, if you think the risk of entrepreneurship is high, consider the risk of losing a fortune by
letting an opportunity slip out of your hands. Of course, explaining this to conservative family members
(usually a parent or spouse) may be difficult. For some people, even a 10% chance of failure is too high to
contemplate, no matter how big the potential payoff is.

A 90% chance of failure is out of the question. Conservative family members will only be convinced if you
have an airtight back up plan, which leads to Tip #5.

Tip #5: Have a backup plan.

One entrepreneur I know asked his employer, a very prestigious professional services firm, for a leave of
absence. This gave him time to verify that his idea had merit. He knew that if he failed (which he assumed
was likely), he could always return to the relative safety of a conventional career. His friends and
acquaintances thought he was gutsy, but he knew he had a safety net.

In the end, he was able to prove his idea during his leave of absence and was able confidently to convert
his leave of absence into a separation. He was shrewd, not brave.

Entrepreneur
From Wikipedia, the free encyclopedia

Jump to: navigation, search

For the practice of starting a new organization, see Entrepreneurship.

For the computer game by Peter Molyneux, see The Entrepreneur.

An entrepreneur is a person who has possession over a company, enterprise, or venture, and
assumes significant accountability for the inherent risks and the outcome. The term is a loanword
from French and was first defined by the Irish economist Richard Cantillon. A female
entrepreneur is sometimes known as an entrepreneuse. However, with the word "entrepreneuse"
being the French feminine form of entrepreneur, its usage in English in delineating sexes detracts
from the meaning of the word "entrepreneur". Entrepreneur in English is a term applied to the
type of personality who is willing to take upon herself or himself a new venture or enterprise and
accepts full responsibility for the outcome.

Contents
[hide]

• 1 Overview
• 2 Definition and terminology
o 2.1 Etymology
 2.1.1 Entrepreneur as a leader
 2.1.2 Foundations Dedicated to Entrepreneurship
• 3 See also
• 4 References and external articles
o 4.1 General information
o 4.2 Theories of the firm

o 4.3 External links

[edit] Overview
The modern myths about entrepreneurs include the idea that they assume the risks involved to
undertake a business venture, but that interpretation now appears to be based on a false
translation of Cantillon's and Say's ideas. The research data indicate that successful entrepreneurs
are actually risk averse. They are successful because their passion for an outcome leads them to
organize available resources in new and more valuable ways. In doing so, they are said to
efficiently and effectively use the factors of production. Those factors are now deemed to include
at least the following elements: land (natural resources), labour (human input into production
using available resources), capital (any type of equipment used in production i.e. machinery),
intelligence, knowledge, and creativity. A person who can efficiently manage these factors in
pursuit of an opportunity to add value, may expand (future prospects of larger firms and
businesses), and become successful.

Entrepreneurship is often difficult and tricky, as many new ventures fail. Entrepreneur is often
synonymous with founder. Most commonly, the term entrepreneur applies to someone who
creates value by offering a product or service. Entrepreneurs often have strong beliefs about a
market opportunity and organize their resources effectively to accomplish an outcome that
changes existing interactions.

Some observers see them as being willing to accept a high level of personal, professional or
financial risk to pursue that opportunity, but the emerging evidence indicates they are more
passionate experts than gamblers.

Business entrepreneurs are viewed as fundamentally important in the capitalistic society. Some
distinguish business entrepreneurs as either "political entrepreneurs" or "market entrepreneurs,"
while social entrepreneurs' principal objectives include the creation of a social and/or
environmental benefit.

[edit] Definition and terminology

An entrepreneur is someone who attempts to organize resources in new and more valuable ways
and accepts full responsibility for the outcome.

[edit] Etymology

The word "entrepreneur" is a loanword from French. In French the verb "entreprendre" means
"to undertake", with "entre" coming from the Latin word meaning "between", and "prendre"
meaning "to take". In French a person who performs a verb, has the ending of the verb changed
to "eur", comparable to the "er" ending in English.

Enterprise is similar to and has roots in, the French word "entrepris", which is the past participle
of "entreprendre". Entrepreneuse is simply the French feminine counterpart of "entrepreneur".

According to Miller, it is one who is able to begin, sustain, and when necessary, effectively and
efficiently dissolve a business entity.

[edit] Entrepreneur as a leader

Scholar Robert. B. Reich considers leadership, management ability, and team-building as
essential qualities of an entrepreneur. This concept has its origins in the work of Richard
Cantillon in his Essai sur la Nature du Commerce en Général (1755) and Jean-Baptiste Say
(1803) in his Treatise on Political Economy.

A more generally held theory is that entrepreneurs emerge from the population on demand, from
the combination of opportunities and people well-positioned to take advantage of them. An
entrepreneur may perceive that s/he is among the few to recognize or be able to solve a problem.
In this view, one studies on one side the distribution of information available to would-be
entrepreneurs (see Austrian School economics) and on the other, how environmental factors
(access to capital, competition, etc.) change the rate of a society's production of entrepreneurs.

A prominent theorist of the Austrian School in this regard is Joseph Schumpeter, who saw the
entrepreneur as innovators and coined the phrase, "creative destruction."

Entrepreneurship
From Wikipedia, the free encyclopedia

Jump to: navigation, search

For the person who starts a new organization, see Entrepreneur.

Entrepreneurship is the practice of starting new organizations or revitalizing mature

organizations, particularly new businesses generally in response to identified opportunities.
Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail.
Entrepreneurial activities are substantially different depending on the type of organization that is
being started. Entrepreneurship ranges in scale from solo projects (even involving the
entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high-
profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to
build the business. Angel investors generally seek returns of 20-30% and more extensive
involvement in the business.[1] Many kinds of organizations now exist to support would-be
entrepreneurs, including specialized government agencies, business incubators, science parks,
and some NGOs.

Contents
[hide]

• 1 History of Entrepreneurship
• 2 The Entrepreneur
• 3 Characteristics of an
Entrepreneur
• 4 Contributions of Entrepreneurs
• 5 Advantages of
 Entrepreneurship
• 6 Notes
• 7 See also
• 8 References and external
articles

• 9 External links

[edit] History of Entrepreneurship

The understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter
and the Austrian economists such as Ludwig von Mises and von Hayek. In Schumpeter (1950),
an entrepreneur is a person who is willing and able to convert a new idea or invention into a
successful innovation. Entrepreneurship forces "creative destruction" across markets and
industries, simultaneously creating new products and business models. In this way, creative
destruction is largely responsible for the dynamism of industries and long-run economic growth.
Despite Schumpeter's early 20th-century contributions, the traditional microeconomic theory of
economics has had little room for entrepreneurs in its theoretical frameworks (instead assuming
that resources would find each other through a price system).[2]

Conceptual and theoretic developments in entrepreneurship history. Adapted from

Murphy, Liao, & Welsch (2006)
Some notable persons and their works in entrepreneurship history.

For Frank H. Knight (1967) and Peter Drucker (1970) entrepreneurship is about taking risk. The
behavior of the entrepreneur reflects a kind of person willing to put his or her career and
financial security on the line and take risks in the name of an idea, spending much time as well as
capital on an uncertain venture. Knight classified three types of uncertainty.

• Risk, which is measurable statistically (such as the probability of drawing a

red colour ball from a jar containing 5 red balls and 5 white balls).
• Ambiguity, which is hard to measure statistically (such as the probability of
drawing a red ball from a jar containing 5 red balls but with an unknown
number of white balls).
• True Uncertainty or Knightian Uncertainty, which is impossible to estimate or
predict statistically (such as the probability of drawing a red ball from a jar
whose number of red balls is unknown as well as the number of other
coloured balls).

The acts of entrepreneurship is often associated with true uncertainty, particularly when it
involves bringing something really novel to the world, whose market never exists. Before
Internet, nobody knew the market for Internet related businesses such as Amazon, Google,
YouTube, Yahoo etc. Only after the Internet emerged did people begin to see opportunities and
market in that technology. However, even if a market already exists, let's say the market for cola
drinks (which has been created by Coca Cola), there is no guarantee that a market exists for a
particular new player in the cola category. The question is: whether a market exists and if it
exists for you.

The place of the disharmony-creating and idiosyncratic entrepreneur in traditional economic

theory (which describes many efficiency-based ratios assuming uniform outputs) presents
theoretic quandaries. William Baumol has added greatly to this area of economic theory and was
recently honored for it at the 2006 annual meeting of the American Economic Association.[2]

Entrepreneurship is widely regarded as an integral player in the business culture of American

life, and particularly as an engine for job creation and economic growth. Robert Sobel published
The Entrepreneurs: Explorations Within the American Business Tradition in 1974. Zoltan Acs
and David B. Audrestch have produced an edited volume surveying Entrepreneurship as an
academic field of research in the Handbook of Entrepreneurship Research: An Interdisciplinary
Survey and Introduction.

[edit] The Entrepreneur

Entrepreneurs have many of the same character traits as leaders. Similarly to the early great man
theories of leadership; however trait-based theories of entrepreneurship are increasingly being
called into question. Entrepreneurs are often contrasted with managers and administrators who
are said to be more methodical and less prone to risk-taking. Such person-centric models of
entrepreneurship have shown to be of questionable validity, not least as many real-life
entrepreneurs operate in teams rather than as single individuals. Still, a vast but now clearly
dated literature studying the entrepreneurial personality found that certain traits seem to be
associated with entrepreneurs:

• David McClelland (1961) described the entrepreneur as primarily motivated

by an overwhelming need for achievement and strong urge to build.
• Collins and Moore (1970) studied 150 entrepreneurs and concluded that they
are tough, pragmatic people driven by needs of independence and
achievement. They seldom are willing to submit to authority.
• Bird (1992) sees entrepreneurs as mercurial, that is, prone to insights,
brainstorms, deceptions, ingeniousness and resourcefulness. they are
cunning, opportunistic, creative, and unsentimental.
• Cooper, Woo, & Dunkelberg (1988) argue that entrepreneurs exhibit extreme
optimism in their decision-making processes. In a study of 2004
entrepreneurs they report that 81% indicate their personal odds of success as
greater than 70% and a remarkable 33% seeing odds of success of 10 out of
10.
• Busenitz and Barney (1997) claim entrepreneurs are prone to overconfidence
and over generalisations.
• Cole (1959) found there are four types of entrepreneur: the innovator, the
calculating inventor, the over-optimistic promoter, and the organization
builder. These types are not related to the personality but to the type of
opportunity the entrepreneur faces.

[edit] Characteristics of an Entrepreneur

• The entrepreneur has an enthusiastic vision, the driving force of an
enterprise.
• The entrepreneur's vision is usually supported by an interlocked collection of
specific ideas not available to the marketplace.
• The overall blueprint to realize the vision is clear, however details may be
incomplete, flexible, and evolving.
• The entrepreneur promotes the vision with enthusiastic passion.
• With persistence and determination, the entrepreneur develops strategies to
change the vision into reality.
• The entrepreneur takes the initial responsibility to cause a vision to become a
success.
• Entrepreneurs take prudent risks. They assess costs, market/customer needs
and persuade others to join and help.
• An entrepreneur is usually a positive thinker and a decision maker.

What Are the Characteristics of a Successful Entrepreneur?

The Components of a Successful Business

1. A competent entrepreneur
2. A viable business concept
3. Access to adequate capital
When these three components come together, then you are in the right
place at the right time. If not, you will probably fail.

Following is the summary of an article written by Judith L. Glick-Smith that ran in the
July/August 1999 Society for Technical Communicators' journal, Intercom. This is a
well-researched article and includes an impressive bibliography. Anyone thinking of
becoming self-employed would do well to compare his/her own personality to the traits
described in the article.

Check with your local library for copies of the STC's journal or purchase a back copy
directly from the STC. (The STC is one of the links on my Interesting Links page.)

- Anne Wallingford

Successful Entrepreneurs
by Judith L. Glick-Smith

According to Webster's dictionary, an entrepreneur is one who

organizes, manages, and assumes the risks of a business or
enterprise. Entrepreneurs live in the future. They have creative
personalities, are innovative, and thrive on change. But what
makes an entrepreneur successful? Research done by Southern
Methodist University's Cox School of Business came up with
common characteristics of over 200 successful entrepreneurs.
Successful was defined as being in business for at least 5 years
and who has gross revenues of at least $1 million.

Common Traits in a Successful Entrepreneur

1. Good health. Successful entrepreneurs must work long hours

for extended periods of time. When they get sick, they recover
quickly.

2. A Need to Control and Direct. They prefer environments where they

have maximum authority and responsibility and do not work well in
traditionally structured organizations. This is not about power, though.
Entrepreneurs have a need to create and achieve by having control over
events.

3. Self-confidence. Findings showed that as long as entrepreneurs were

in control, they were relentless in pursuit of their goals. If they lost
control, they quickly lost interest in the undertaking.

4. Sense of Urgency. They have a never-ending sense of urgency to do

something. This corresponds with a high energy level. Many enjoy
individual sports rather than team sports. Inactivity makes them
 impatient.

5. Comprehensive Awareness. They have a comprehensive awareness of

a total situation and are aware of all the ramifications involved in a
decision.

6. Realistic Outlook. There is a constant need to know the status of

things. They may or may not be idealistic, but they are honest and
straightforward and expect others to be the same.

7. Conceptual Ability. They have superior conceptual abilities. This

helps entrepreneurs identify relationships in complex situations. Chaos
does not bother them because they can conceptualize order. Problems are
quickly identified and solutions offered. The drawback is that this may
not translate well to interpersonal problems.

8. Low Need for Status. Their need for status is met through achievement
not through material possessions.

9. Objective Approach. They take an objective approach to personal

relationships and are more concerned with the performance and
accomplishment of others than with feelings. They keep their distance
psychologically and concentrate on the effectiveness of operations.

10. Emotional Stability. They have the stability to handle stress from
business and from personal areas in their lives. Setbacks are seen as
challenges and do not discourage them.

11. Attraction to Challenges. They are attracted to challenges but not to

risks. It may look like they are taking high risks, but in actuality they
have assessed the risks thoroughly.

12. Describing with Numbers. They can describe situations with

numbers. They understand their financial position and can tell at any
time how much they have in receivables and how much they owe.

• Characteristics of the successful entrepreneur

• Every entrepreneur is unique. Every entrepreneur has his or her
own set of strengths, weaknesses, talents and abilities. However,
entrepreneurs who have stood the test of time and have made a
difference in their communities and industries do share common
characteristics.
• Optimism
Taking risks and paving new paths can only be accomplished with
optimism. Optimism is a belief in the future, a view of what is
 possible rather then what is impossible. The ability to envision
possibilities not yet proven. When you are optimistic you look for
solutions rather then reasons for problems. You strive for ways to
get things done rather then excuses to explain why it wasn't
possible.
• Tenacity and courage
Sticking to the goal, even when it means doing things differently, is
tenacity. Many entrepreneurs speak of break-throughs which came
only when they were told it couldn't be done. "Dare me" is the
underlining theme of many successful entrepreneurs. Facing
opposition, and those who believe it couldn't be done, only drives
the successful entrepreneur to try harder. Risking your ideas, as
well as your money requires courage and determination.
• Well defined ethics and values
The successful entrepreneurs know what they stand for. They have
a strong sense of values and business ethics which are guiding
forces in their decisions. They know being true to themselves is
more then just a cliché - its a way of operating. It will be important
for you to determine what values you will stand behind in your
business. What values you will use to make decisions and set
direction.
• Ability to listen and learn
Whether from customers, employees, advisors or the public, the
successful entrepreneur is hungry to learn. Learn more about their
product, marketplace, possible innovations and trends which will
affect their business. They are quick to admit what they do not
know and even quicker to seek the information needed to stay on
track.
• Self-control and discipline
Staying focused on the vision and managing the details means self-
control and discipline. Principles of time management and positive
work habits are important to the long term success of your
business. Setting objectives and action plans which are essential to
accomplishing important goals and insuring the accomplishment of
those targets by yourself and others in the organization takes
discipline and focus.
• Self-confidence
A key characteristic of any high performer, including the successful
entrepreneur, is a positive sense of self-confidence. It's confidence
that enables people to try new things and effectively manage risk.
It's confidence that will be needed to sell your plan to the bank or
investors. It's confidence that will give your sales presentations the
power of influence. Confidence is the result of programming your
mind with positive and optimistic thoughts and plans. The support
of friends and family can add to that sense of self-confidence.
•
• Discover the secrets to being a successful Entrepreneur...
• Becoming an entrepreneur is not an easy task! Around 45 percent of all
new businesses fail to survive more than two years. There are certain qualities
and characteristics that are absolutely necessary if you would like to become
successful in your business ventures. Some of these qualities are built-in parts of
your inherent personality, and some of them get developed over time. Knowing
these characteristics and identifying your weaker ones - those which need
strengthening - will, eventually, help you become a successful entrepreneur and
ensure that you succeed in your business ventures.
• 1. Common sense.
• Studies show that most successful businesspeople consider common
sense as the foundation of their success. Good judgment depends on acquired
knowledge and past experience. The combination of these two creates necessary
prerequisites in developing common sense in a person. Common sense allows
you to understand complex issues in simpler terms and get into the core of a
problem.
• 2. Specialised knowledge of your field and willingness to learn
• It is easier to start a successful business if you have deep knowledge of
the business field that you decide to pursue. Having said that, studies show that
most self-made millionaires have only average intelligence. Nonetheless, these
people achieved their financial and personal goals in business because they are
willing to learn. To succeed, you must be willing to ask questions, remain
curious, interested and open to new knowledge.
• 3. Self-confidence and the heart of a champion.
• Self-confidence is a key entrepreneurial skill for success. A successful
entrepreneur believes in his abilities. He/she is not scared to take risks and make
difficult decisions. You have to be determined to succeed at all costs. You have to
anticipate resistance from your friends, family and loved ones. You must exercise
unlimited persistence.
• 4. Ability to work hard
• Every successful entrepreneur works hard. Ask any successful
businessperson and they will tell you immediately that they had to work more
than 60 hours per week at the start of their businesses. If you are in a start-up
phase, you will have to breathe, eat and drink your business until it can stand on
its own. . This requires a self-control that many people simply fail to develop in
them.
• 5. Passion
• Success comes easily if you love what you do. Why? Because we are more
relentless in our pursuit of goals that we are passionate about. Entrepreneurs
who succeed do not mind that they are putting in 15 or 18 hours a day to their
business because they absolutely love what they do. Success in business is all
about patience and hard work, which can only be attained if you are passionate
about your tasks and activities.
• 6. Think success
• To attain the kind of success that you want, you need to dream big. Every
success story starts with big dreams! If you only aspire to survive, then you
might just achieve that. Conversely, if you aspire to generate incredible wealth
and happiness within your life, you might just achieve that too. You should
actively visualise success in your mind. What does it feel to triple your current
income? How will your life change? What will your business look like if you
achieved the million-dollar mark? You must believe beyond a shadow of a doubt
that you have the ability to recognize and fulfill your goals.
• 7. Plan accordingly and stick to your plan
 • You have a vision, and you have enough faith in yourself to believe that
you can achieve your vision. You have to have a solid business plan and then
stick to it. Put your goals in writing. You need to plan each day in such a way
that your every action contributes to the attainment of your goals. Intense goal
orientation is the characteristic of every successful entrepreneur. They have a
vision, and they know how to get there.

Famous Entrepreneurs A-F

An alphabetical listing of famous entrepreneurs with last names beginning with the letters A-F.

Mary Kay Ash - Most Outstanding Woman in Business in the 20th Century
The founder of Mary Kay Cosmetics created a business that has helped some half a million women
fulfill their dreams of business ownership. A best-selling author and powerful motivational speaker,
Lifetime Television named her the Most Outstanding Woman in Business in the 20th Century.

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Ben & Jerry's - The Men Behind the Ice Cream

Ice cream is a sweet treat that few can resist. Although vanilla is the most popular flavor in the U.S.,
there are a seemingly endless number of varieties and manufacturers. One of the best-known
purveyors is Ben & Jerry’s, the brand synonymous with funky flavors like Cherry Garcia and Chunky
Monkey and a groovy Vermont vibe.

Lorenzo Borghese: The Bachelor Prince, the Cosmetics Entrepreneur

Even without a title of “prince,” Lorenzo Borghese would not fall into the category of “pauper.”
Recently in the news for his appearance on ABC’s The Bachelor: Rome, Borghese is following in his
grandmother’s footsteps as a cosmetics entrepreneur and has created his own line of luxury bath and
grooming products – only these are for pets.

Richard Branson - The Rebel Billionaire and the Ultimate Multipreneur

In a recent poll, About.com readers selected Oprah Winfrey as the Most Admired Entrepreneur. While
perhaps less well known outside of his homeland of England, Richard Branson wins the Editor's Choice
for Most Admired Entrepreneur. Learn about this British firebrand who has succeeded perhaps most of
all at "engineering a breathtaking life for himself".

Coco Chanel - As Bold and Distinctive as Her Signature Fragrance

Coco Chanel was one of the major innovators of 20th century fashion, introducing elements from
menswear and sports apparel into women's fashion to create a distinctively simple, yet elegant style.
Her signature fragrance, Chanel No. 5, was the first perfume to bear the designer's name. Launched in
1923, it is still one of the best-selling fragrances in the world.

Simon Cowell – Music Mogul Millionaire

Simon Cowell is best known as the obnoxious judge on the hit TV show American Idol whose cynical
comments sent contestants running out the door in tears, but what most don’t know is that his work
didn’t start there and most definitely won’t end there. His list of achievements is long and includes
being a successful record producer and executive for the BMG UK record company to gathering
wannabe entrepreneurs on his show, American Inventor.

Michael Dell: Innovator of the Personal Computer Industry

Michael Dell, born February 1965, started the road to success out of his University of Texas dorm
room in with just $1000 and an idea in 1984. Michael Dell is both Chairman and CEO of his company
with a net worth of over $30 billion. Dell sells directly to the customer so to avoid middleman mark-
ups.

Walt Disney - The Man Behind the Mouse

Disney is one of the most recognized brands in the world, but few know as much about the man
behind the Magic Kingdom, not to mention the hundreds of animated cartoons, countless feature films
and endless toys that bear his name. An influential innovator and entrepreneur in the mid 20th
century, Disney went from sketching a rabbit (yes, a rabbit) to running a multi-billion dollar empire.

Debbi Fields - Founder of Mrs. Fields Cookies

At age 20, Debbi Fields was a housewife with no business experience, but a great chocolate chip
cookie recipe and a dream. Today, Mrs. Fields Cookies is one of the world's most recognizable dessert
franchises, with over 600 stores in the U.S. and ten other countries.

Henry Ford - Founder of Ford Motor Company and Manufacturing Assembly Line Innovator
Henry Ford was not the inventor of the automobile, but his innovations in assembly-line techniques
and the introduction of standardized interchangeable parts contributed to making the United States a
nation of motorists and produced the first mass-production vehicle manufacturing plant.
Differentiation - Smart
Marketing Strategies for the
Solo Entrepreneur
Are you ever frustrated or hesitant when you talk to prospective customers because you can't
readily explain why they should come to you rather than go to your competitors? Sure, you
might have your 30-second elevator speech, but then they ask you that dreaded question, "So
what makes you different?" Then, all those self-doubts creep in, and you just aren't sure what to
say. Differentiation can boost confidence--yours in yourself and that prospective customer's
confidence in you!

-- Dif-fer-en-ti-ate v. tr. To perceive or show the difference in or between; discriminate. --

In business terms, to differentiate means to create a benefit that customers perceive as being of
greater value to them than what they can get elsewhere. It's not enough for you to be different--a
potential customer has to take note of the difference and must feel that the difference somehow
fits their need better. (Other words that mean virtually the same thing: Competitive Advantage;
Unique Selling Proposition; or Value Proposition.)

As you are building your business, you can use differentiation to attract more customers. Once
you have momentum, differentiation allows you to charge a higher price because you are
delivering more value to your customers. Make a point to evaluate and adjust your differentiation
methods at least annually.

The various methods of differentiating your businesses fall into four general categories:

Price Differentiation

Focus Differentiation

Product/Service Differentiation

Customer Service Differentiation

Price Differentiation

Differentiating on price is probably the most common and easily understood method.
HOWEVER, for Solo Entrepreneurs, caution is in order. On the one hand, potential customers
might expect a lower price from you than from your larger competition because they perceive
you as having less overhead, etc. On the other hand, cheaper prices can evoke perceptions of
lower quality, a less-stable business, etc. And if you compete on price against competitors with
deeper pockets, you can price yourself right into bankruptcy. Be creative with this differentiator
by competing on something other than straight price. For example, you might offer:

- More value--offer more products or services for the same price.

- Freebies --accessories, companion products, free upgrades, and coupons for future purchases.

- Free shipping, etc.--convenience sells, especially when it is free!

- Discounts--includes offering regular sales, coupons, etc. (see cautions above)

Focus Differentiation

For Solo Entrepreneurs, this is the most important method of differentiation, and in many ways,
the easiest. Why? Because as a Solo Entrepreneur, you simply can't be everything to everybody,
so you must pick a specific way to focus your business. Once you have done that, you have an
automatic advantage over larger companies because you can become more of an expert in that
one field --and you can build close relationships with key customers that will be hard to
duplicate. For example, you might differentiate yourself through:

- Location--take advantage your closeness to prospective customers.

- Customer specialization--be very specific about what characteristics your customers will
have-for example, racing bicycle enthusiasts or companies with a spiritual conscience.

- Customer relationships--know customers really well, form partnerships with them, and get
them to speak for you!

- Affinity relationships--associate your product/service with a well-known person or

organization.

- One-stop shopping--offer everything your target market needs, in your area of expertise.

- Wide selection (within your niche)-although this one may seem to be the opposite of focus--the
key is to be very specific in one dimension and very broad in another.

Product/Service Offering Differentiation

How much you are able to differentiate your product or service offering will vary based on what
type of business you are in. For instance, if you are in a highly regulated business, your options
may be limited. Explore a totally new market or type of product or service, however, and the
possibilities abound. The key to successful differentiation in this category, again, is to know your
customers, really, really well. Talk to them often, and you will know what they need most and be
able to offer it, long before your competitors know what is happening. For example, your product
or service could stand out in one of these ways:
- Quality--create a product or service that is exceptional in one or more ways. Examples: Lasts
longer

- Better

- Easier to use

- Safer

- New/First--be the first one to offer something in your location/field.

- Features/Options--offer lots of choices, unusual combinations, or solve a problem for a

customer in a way no one else does.

- Customization--as a Solo Entrepreneur, you may be able to more easily handle special orders
than big, mass-market competitors.

Customer Service Differentiation

Have you noticed how customer service seems to be out of vogue these days? This situation
makes excellent customer service a great opportunity for differentiation and another natural
advantage for Solo Entrepreneurs that already know what's important to their customers. Build
your reputation on making customers feel really good about doing business with you. Works
great with referral marketing, too. Examples:

- Deliver fast--next day, or one-hour--make it faster than customers think possible.

- Unique channel--offer a service over the phone or Internet instead of in person or in their
office rather than yours.

- Service-delight customers!--it may seem expensive to offer exceptional service--but it pays

off in word-of-mouth advertising.

- Before/during/after-sales support--provide technical or other support to customers using your

product. You might use joint ventures to provide that support--but customers will perceive it as
being from you!

- Guarantee/warranty--offer 100% money-back, or free replacement parts.

- YOU--offer yourself, your unique blend of talents and skills, to attract customers. Make sure
they get access to you, too!

Keys to Successful Differentiation:

- Know your customers, really, really well.

- Pick a blend of differentiation methods that, in the eyes of your customers, truly sets you apart.

- Talk about your differentiation in terms of customer benefits.

- Tell everyone about what differentiates you--often.

- Keep your differentiation fresh by listening for changing customer needs.