Entrepreneurship and Characteristics of an Entrepreneur

Whenever we talk about a business term it is essential to analyse its meaning, ENTREPRENEURSHIP i.e trying to identify market opportunities, arranging resources to bring an imaginative idea to a practical situation and investing these resources in order to attain long term gains.

The characteristics of entrepreneurship can be recognized as

  • CREATIVE ACTIVITY i.e it involves innovation of products and techniques by keeping in mind the market;
  • DYNAMIC PROCESS i.e. keeps in mind changing external environment;
  • PURPOSEFUL ACTIVITY i.e. purposed to earn profits or bring a difference to the market ;
  • INVOLVES RISK i.e entrepreneurial decisions are vast and can not be reverted easily and involve great deal of investments.

The dictionary defines an entrepreneur as a person who undertakes a commercial venture organizes it, raises capital to finance it or a major portion of the risk.

Characteristics of an entrepreneur include

  • ability to bear risk,
  • technical knowledge about production techniques and marketing,
  • ability to gather financial and motivational resources
  • ability to build a sound organization.

Also the are various TYPES of ENTREPRENEURS that constitute of

  • INNOVATIVEi.e introduction of something new to the nation (e.g: Dhirubhai Ambani, Indian entrepreneur);
  • IMITATING i.e. one who adopts a method of production or technology already adopted by someone else and may not be able to afford resources for entrepreneurial research;
  • FABIAN i.e those who are cautious in adopting any changes and are shy and lazy to adopt new methods
  • DRONE i.e. those who resist changes and continue to use old or traditional methods of production.

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