Revisiting Entrepreneur and Entrepreneurship

In recent decades the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship. An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation. An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option. Functionally income generating and self-employment activities are the initial sages of entrepreneurship.

The qualities of entrepreneurship and management are present in varying degrees in both managers as well as entrepreneurs. Yet entrepreneurs are different from managers. They create opportunities for innovation, experimentation and production. Once production begins managers take over. They are more concerned with organizing the routine day-to-day jobs. They do not prefer to take risks.

Entrepreneurship is a discipline with a knowledge-based theory. A person can learn and acquire the competencies of becoming an entrepreneur and start a venture and make it grow. So the myth that entrepreneurs are born and not made can safely be dispelled.

The most important functions of an entrepreneur are innovation, risk and uncertainty bearing and organization building. An entrepreneur usually has to perform all the functions of production, marketing, finance, human relations etc. especially at the time of start-up and establishing an enterprise. Most entrepreneurs usually start a small venture and then make it grow.

Taking up a career in Entrepreneurship

To take up a career in entrepreneurship you have to feel the desire as well as perceive the feasibility of entrepreneurship as a career option. Fortunately it is no longer believed that entrepreneurs are born with certain traits. The emphasis is now on the competencies, which provide the know-how of how to engage in entrepreneurial behavior. Knowledge, skills and abilities for undertaking a particular task can be learnt. A list of general competencies, which play an important role in entrepreneurial success include work commitment self confidence, systematic planning, concern for quality etc.

A change in perspective- an ability to perceive opportunities and to think of innovative ways of exploiting opportunities is a right step in thinking like an entrepreneur. Experience in that particular field will go a long way in providing you the know-how and confidence that you can launch and successfully run an enterprise. Many motivators for taking the plunge into entrepreneurship have been identified by McClelland among others. Of these the Need for Achievement plays a very crucial role in entrepreneurial motivation. It encompasses defining a problem, organizing the means of solving it, setting goals, seeking challenges and taking moderate risks. Desire for autonomy also spurs people to start their own ventures, as they do not want to work as subordinates who have to follow instructions all the time. Entrepreneurial performance can be measured in physical, financial, market or stakeholder basis. While the age of enterprise, sales, profits, increase in market share/scope etc. are important, the rewards of entrepreneurship can be intrinsic. The joy of creating ones own organization, or extrinsic-profits or being part of the ET Top 50 or part of the Forbes List of Billionaires. Whatever be the personal agenda for taking the plunge into entrepreneurship the intricacies of identifying the product or service, its feasibility analysis, decisions regarding plant location, financing, marketing etc. have to be taken. You will learn about these in the subsequent lessons.