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ENTREPRENEUR
An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes
significant accountability for the inherent risks and the outcome. The term is originally a
loanword from French and was first defined by the Irish economist Richard Cantillon.
Entrepreneur in English is a term applied to the type of personality who is willing to take upon
himself a new venture or enterprise and accepts full responsibility for the outcome. Jean-Baptiste
Say, a French economist is believed to have coined the word "entrepreneur" first in about 1800.
He said an entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as
intermediatory between capital and labour.

Role of entrepreneurship in economic dvelopment.

Entrepreneur
An enrepreneur can be regarded as a person who has the initiative skill and motivation to set up a
business or enterprice of his own and who always look for high acheivements. He is the catalyst
for social change and works for the common good. They looks for opportunities, identifies them
and seizes them mainly for economic gains. An action oriented enrepreneur is a highly
calculative individual who is always willing to to undertake risks inorder to achieve their goals.

Need for Entrepreneurship Development

Economic development essentially means a process of upward change whereby the real pr capita
income of a country increases over a period of time .Entrepreneurship has an important role to
play in the development of a country. It is one of the most important inputs in economic
development. The number and competense of entrepreneurs affect the economic growth of the
country.

The economic history of the presently advanced countries like USA, Russia and japan supports
the fact that economic development is the outcome for which entrepreneurship is an inevitable
cause. The crucial and significant role played by the entrepreneurs in the economic development
of advanced countries has made the people of developing and under developed countries
consious of the importance of entrepreneuship for economic development. It is now a widely
accepted fact that active and enthusiastic entrepreneurs can only explore the potentials of the
countries availability of resourses such as labour, capital and technology.

The role of entrepreneurs is not identical in the various economies. Depending on the material
resources, industry climate and responsiveness of the political system, it varies from economy to
economy. The contribution of entrepreneurs may be more in favourable opportunity conditions

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than in economies with relatively less favourable opportunity conditions.

Entrpreneurship and Economic Development

Entrepreneurship helps in the process of economic development in the following ways :

1) Employment Generation :

Growing unemployment particularly educated unemployment is the problem of the nation. The
available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs
generate employment both directly and indirectly. Directly, self employment as an entrepreneur
and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship
is the best way to fight the evil of unemployment.

2) National Income :

National Income consits of the goods and services produced in the country and imported. The
goods and services produced are for consumption within the country as well as to meet the
demand of exports. The domestic demand increases with increase in population and increase in
standard of living. The export demand also increases to meet the needs of growing imports due
to various reasons. An increasing number of entrepreneurers are required to meet this increasing
demand for goods and services. Thus entrepreneurship increases the national income.

3) Balanced Regional Development :

The growth of Industry and business leads to a lot of Public benefits like transport facilities,
health, education, entertainment etc. When the industries are concentrated in selected cities,
development gets limited to these cities. A rapid development . When the new entrepreneurers
grow at a faster rate, in view of increasing competition in and around cities, they are forced to set
up their enterprises in the smaller towns away from big cities. This helps in the development of
backward regions.

4) Dispersal of economic power :

Industrial development normally may lesd to concentration of economic powers in a few hands.
This concentration of power in a few hands has its own evils in the form of monopolies.
Developing a large number of entrepreneurers helps in dispersing the economic power amongst
the population. Thus it helps in weakening the harmful effects of monopoly.

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5) Better standards of living :

Entrepreneurers play a vital role in achieving a higher rate of economic growth. Entrepreneurers
are able to produce goods at lower cost and supply quality goods at lower price to the community
according to their requirements.When the price of of the commodies decreases the consumers get
the power to buy more goods for their satisfaction. In this way they can increase the standard of
living of the people.

6) Creating innovation :

An entrepreneur is a person who always look for changes. apart from combining the factors of
production, he also introduces new ideas and new combination of factors. He always try to
introduce newer and newer technique of production of goods and services. An entrepreneur
brings economic development through innovation.

Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short,
the development of the entrepreneurship is inevitable in the economic development of the
country. The Role played by the entrepreneurship development can be expressed in the following
words :

" Economic development is the effect for which entrepreneurship is a cause "

FABIAN ENTREPRENEUR

A Fabian Entrepreneur is one who is very cautious in taking the decisions, very skeptical, and
takes calculative steps.

Drone Entrepreneurs

Drone Entrepreneurs suffer losses, as they refuse to make any modifications in the existing
production methods.

These entrepreneurs are conservative or orthodox in outlook. They never like to get rid of their
traditional business and traditionalk machineries or systems of the business. They always feel
comfortable with their old-fashioned tecnology of production even though the environment as
well as the society have undergone considerable changes. They are laggards as they continue to
operate in their traditional way and resist changes.

Drone Entrepreneurs suffer losses, as they refuse to make any modifications in the existing
production methods.

These entrepreneurs are conservative or orthodox in outlook. They never like to get rid of their
traditional business and traditionalk machineries or systems of the business. They always feel

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comfortable with their old-fashioned tecnology of production even though the environment as
well as the society have undergone considerable changes. They are laggards as they continue to
operate in their traditional way and resist changes.

Entrepreneurship as a Career Option

The greatest challenge before the youngsters in India today is to build the country into an economic global giant.
The obvious questions that come to the minds of most of them are - “Why should we in India think of being an
entrepreneur? Why not work as part of a larger organisation where the opportunities and resources to scale ideas are
perhaps far greater?

Entrepreneurship is important for two reasons. One, it furthers innovation to find new solutions to existing and
emerging demands. Two, it offers far greater opportunities for wealth creation for self and the society than anything
else. Entrepreneurship has its challenges. It is about 20 per cent luck and 80 per cent effort, clarity, courage,
confidence, passion and above all smartness.

What leads a person to take up entrepreneurship as a career option? There can be a number of reasons including
displacement from a job, frustration in the present job, not getting a job of his/her choice, etc. Sometimes a person
realises much in advance that his/her job is in jeopardy, as the organisation is moving towards closure. At times a
deserving employee getting superseded in promotion is compelled to quit the job and look for doing something on
his own. Some people object to a system wherein reward is often based on seniority rather than merit.

Above facts are corroborated by the research findings of Gilad and Levine (1986). They proposed two closely-
related explanations of entrepreneurial motivation, the “push” and the “pull” theory. The “push” theory argues that
individuals are pushed into entrepreneurship by negative external forces, such as job dissatisfaction, difficulty in
finding employment, insufficient salary, or inflexible work schedule. The “pull” theory contends that individuals are
attracted into entrepreneurial activities seeking independence, self-fulfillment, wealth, and other desirable outcomes.
Research (Keeble et at., 1992; Orhan and Scott, 2001) indicates that individuals become entrepreneurs primarily due
to “pull” factors rather than “push” factors.

Some of the prominent pull factors that attract individuals towards entrepreneurship as a career option are:
High Need for Independence: There are personalities who would like to have freedom about: with whom to work,
when to work, with whom to do business at what terms etc. It is this instinct in them that pushes such personalities
to start something of their own.

To satisfy the dream of having high Financial Rewards: To satisfy the need to derive high financial rewards as an
outcome of efforts leads some to start a business of their own. The fundamental difference between job and own
venture lies in the degree of financial rewards for the efforts put in to achieve organisational goals.

Opportunity to deal with all aspects of a business: No job can provide an opportunity to learn and deal effectively
with a wide spectrum of business activities starting from idea generation, conceptualisation, design, creation,
marketing to customer response and customer satisfaction.

Vision to leave a long lasting mark: Entrepreneurship creates an opportunity to make definite contribution to the
society by lifting the people in and around the venture. A continuous zeal to innovate helps in touching the heads
and hearts of people at large.

A strong urge from within to start a business, combined with workable innovative ideas, careful planning, and hard
work can lead to a very engaging, self-satisfying, enjoyable and profitable endeavour. The greatest contributory
factor to entrepreneurship is an intention i.e. a strong purpose in life coupled with determination to produce desired
results.

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There is no age bar to entrepreneurship. But youth is certainly more suited to take up an entrepreneurial venture
because they are technologically precocious, do not fear from change and challenge, and have greater ability to see
things differently.

Thus, leaving aside the pull and push factors leading to entrepreneurship, the fundamental decision to take up
entrepreneurship as a career option gets guided by a three part process in which an individual weighs the desirability
of self-employment with the desirability of working for others, possession of competencies and capabilities to
undertake entrepreneurial venture. The fact remains that present environment provides great entrepreneurial
opportunities and more and more youngsters are consciously opting for it a as career option.

The 9 Personality Types of Entrepreneurs

From Darrell Zahorsky, former About.com Guide

See More About:

 entrepreneur personality types

 starting a business

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Small Business Ideas Entrepreneur Personality Test New Business Business Opporunity

Starting and growing your own business requires many skills to be successful. Take a look at the
business personality types and find out what you need to succeed. Are you Bill Gates, a
Visionary, or an Improver like Body Shop founder, Anita Roddick?

Your business personality type are the traits and characteristics of your personality that blend
with the needs of the business. If you better understand your business personality, then you can
give your company the best part of you. Find others to help your business in areas you aren't
prepared to fulfill.

There are 9 key types of personality and understanding each will help you enjoy your business
more and provide your company with what it needs to grow. This entrepreneur personality
profile is based on the 9-point circle of the Enneagram.

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Begin identifying your dominant personality theme and understand how you operate in your
business.

The 9 Personality Types of Entrepreneurs

1. The Improver: If you operate your business predominately in the improver mode, you are
focused on using your company as a means to improve the world. Your overarching motto is:
morally correct companies will be rewarded working on a noble cause. Improvers have an
unwavering ability to run their business with high integrity and ethics.

Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees

and customers.

Entrepreneur example: Anita Roddick, Founder of The Body Shop.

2. The Advisor: This business personality type will provide an extremely high level of
assistance and advice to customers. The advisor's motto is: the customer is right and we must do
everything to please them. Companies built by advisors become customer focused.

Personality Alert: Advisors can become totally focused on the needs of their business and
customers that they may ignore their own needs and ultimately burn out.

Entrepreneur example: John W. Nordstrom, Founder Nordstrom.

3. The Superstar: Here the business is centered around the charisma and high energy of the
Superstar CEO. This personality often will cause you to build your business around your own
personal brand.

Personality Alert: Can be too competitive and workaholics.

Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.

4. The Artist: This business personality is the reserved but highly creative type. Often found in
businesses demanding creativity such as web design and ad agencies. As an artist type you’ll
tend to build your business around the unique talents and creativities you have.

Personality Alert: You may be overly sensitive to your customer’s responses even if the feedback
is constructive. Let go the negative self-image.

5. The Visionary: A business built by a Visionary will often be based on the future vision and
thoughts of the founder. You will have a high degree of curiosity to understand the world around
you and will set-up plans to avoid the landmines.

Personality Alert: Visionaries can be too focused on the dream with little focus on reality. Action
must proceed vision.

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Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing problems
in a systematic way. Often the basis for science, engineering or computer firms, Analyst
companies excel at problem solving.

Personality Alert: Be aware of analysis paralysis. Work on trusting others.

Entrepreneurial example: Intel Founder, Gordon Moore.

7. The Fireball: A business owned and operated by a Fireball is full of life, energy and
optimism. Your company is life-energizing and makes customers feel the company has a get it
done attitude in a fun playful manner.

Personality Alert: You may over commit your teams and act to impulsively. Balance your
impulsiveness with business planning.

Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

8. The Hero: You have an incredible will and ability to lead the world and your business
through any challenge. You are the essence of entrepreneurship and can assemble great
companies.

Personality Alert: Over promising and using force full tactics to get your way will not work long
term. To be successful, trust your leadership skills to help others find their way.

Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business. You
have an uncanny ability to survive and persist with an inner calm.

Personality Alert: Because of your caring, healing attitude toward your business, you may avoid
outside realities and use wishful thinking. Use scenario planning to prepare for turmoil.

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.

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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.

Traits of The Successful Entrepreneur

Business has changed significantly in recent years as a result of computers and the Internet -
including web pages, e-mail and everything else associated with the worldwide web. Telephone
communication has also changed the way we do business, with the advent of cell phones and
voice mail. However, even with all these technological advancements, the traits that make a
person succeed in business can be traced back to our grandparents' days. So before you decide to
launch your own business, first evaluate whether or not you have the traits of an entrepreneur.

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Goal-Setter
Most successful people continually set goals. Many started at an early age; for example, they
may have set a goal to excel in certain sport, or in a specific subject in school. If they wanted to
buy something, and knew that their parents couldn't afford it, or wouldn't spend the money, they
earned the money themselves. They may have set up lemonade stands, mowed lawns for
neighbors, or delivered newspapers.

As they became older, they developed other goals and worked to achieve them. They always
have a vision for their future and never lose sight of it. As time goes on, they continue revising
and setting new goals.

If you want to succeed in business, get in the habit of setting goals.

Knowing Your Strengths and Weaknesses

Another trait of successful entrepreneurs is they know their strengths and weaknesses. Rather
than letting their egos get in the way, they admit when they need to learn new skills or take other
steps to improve themselves or their business. This is especially crucial in light of rapid changes
in technology.

You must realize that learning is a life-long process, and continually strive to improve your skills
and knowledge.

Maximizing Opportunities
Successful entrepreneurs are always looking for opportunities. Whether they are already in
business or just getting started, they have an attitude that expects opportunities, and they invest
the time necessary to find the opportunities that will work for them. Even those already running a
successful business remain open to new possibilities.

Taking advantage of opportunities does not mean acting impulsively. It is important to evaluate
each opportunity with questions such as: 1) Is this really as good as it sounds? 2) Is this
something I really want to be doing? 3). Do I have the required skills, or can I develop them? 4)
Will this help me to reach the financial goals I have set for myself? 4) What impact will this have
on my family?

Know Your Business/ Know Your Competition

You must know your business inside out to succeed. That includes learning everything you can
about your competition, and understanding how your own business measures up against
competitors. It also includes knowing exactly where your business stands in the context of the
financial goals you have established.

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Effectively Manage Budgets and Finances

Successful people know how to effectively manage budgets and finances. They know how much
they have borrowed, the interest rates they are paying, and anything else that can affect their
business. They always save for a rainy day. Understanding the principle that they must spend
money to make money, they postpone personal expenditures such as a new house, car or
vacation, until they can afford it.

Never Settle for Second Best

Another trait of top entrepreneurs is they never settle for second best. Striving for excellence,
they set standards for themselves as well as their products and services. If they work with an
outside company and that company sends them a sub-standard product, they return it. They look
for the best products and workmanship in the price category they have established.

If they realize they haven't done a good job or haven't done it right, they will do it again or take
other actions to ensure the customer is satisfied. For this reason, their customers remain loyal.
Remember, repeat business is one of they keys to long-term success. If you don't make a good
impression the first time, you are not likely to get a second chance.

Enjoy your Business

The successful entrepreneur has fun in their occupation. While they might not enjoy every aspect
of their business, overall they enjoy their work. One reason for that enjoyment is the sense of
satisfaction in knowing that the business is theirs, and that they are building for the future.

Hard Work
Successful people willingly work long hours because they know it is necessary to move the
business forward. This is especially true in the first few years after launching a new business. An
owner wears many hats: selling, bookkeeping, handling customers, setting up appointments,
meeting deadlines, and so forth.

Get Help When Necessary

Another trait of top business people is they know when to get help. Realizing they are not experts
in everything, they will contact other professionals when warranted. They also realize when the
times comes that they can longer do it all, and they delegate responsibility to an outside source,
independent contractor, or hire an employee.

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