Professional Documents
Culture Documents
Initiative
An entrepreneur takes actions that go beyond job requirements or the demand of the situation
Opportunity seeking
An entrepreneur is quick to see and seize opportunities. He/she does things before he/she is
asked to work by people or forced by situation.
Persistence
An entrepreneur is not discouraged by difficulties and problems that come up in the business
or his/her personal life. Once she sets a goal she is committed to the goal and will become
completely absorbed in it.
Information seeking
Are you afraid of uncertainties? Then you cannot be an entrepreneur. Entrepreneurs are not
high risk takers. They are also not gamblers; they calculate their risks before taking action.
They place themselves in situations involving moderate risk so they are moderate risk takers.
Goal setting
An entrepreneur sets meaningful and challenging goals for him/herself. An entrepreneur does
not just dream. Him/she thinks and plans what he/she does. He/she is certain or has hope
about the future.
Independence and self confidence
Most entrepreneurs start business because they like to be their own boss. They are
responsible for their own decisions.
Peter drucker defines entrepreneurship as “Entrp is neither a science nor an art but it is a
practice, which has knowledge base.”
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need and significance of entrepreneurship development in
global context
Entrepreneurs occupy a central position in a market economy. It’s the entrepreneurs who
serve as the spark plug in the economy's engine, activating and stimulating all economic
activity. The economic success of nations worldwide is the result of encouraging and
rewarding the entrepreneurial instinct.
For years, economists viewed entrepreneurship as a small part of economic activity. But
in the 1800s, the Austrian School of Economics was the first to recognize the
entrepreneur as the person having the central role in all economic activity because it's
entrepreneurial energy, creativity and motivation that trigger the production and sale of
new products and services. It is the entrepreneur who undertakes the risk of the
enterprise in search of profit and who seeks opportunities to profit by satisfying as yet
unsatisfied needs.
Entrepreneurs seek disequilibrium--a gap between the wants and needs of customers
and the products and services that are currently available. The entrepreneur then brings
together the factors of production necessary to produce, offer and sell desired products
and services. They invest and risk their money--and other people's money--to produce a
product or service that can be sold at a profit.
More than any other member of our society, entrepreneurs are unique because they're
capable of bringing together the money, raw materials, manufacturing facilities, skilled
labour and land or buildings required to produce a product or service. And they're
capable of arranging the marketing, sales and distribution of that product or service.
Entrepreneurs are optimistic and future oriented; they believe that success is possible
and are willing to risk their resources in the pursuit of profit. They're fast moving, willing to
try many different strategies to achieve their goals of profits. And they're flexible, willing
to change quickly when they get new information.
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Professor Tandon has described the following qualities of a true
entrepreneur:
1. Capacity to assume risk: An entrepreneur assumes risk
and, therefore he must have self-confidence. He is both
an investor and a financier and should, therefore, be able
to shift investments in search for larger profits. He has to
tie up capital and wait for good returns. He should be
willing to assume a relatively large degree of risk
because he has to guarantee wages to his employees,
interest to his creditors and rent to his landlord. Risk and
reward are inseparable. Highest order of ability is
required to bear heavy risks and thereby earn high gains.
A successful entrepreneur should have a keen
observation, ability of discrimination, tact and patience.
He should be mentally alert, practically wise, shrewd and
exceptionally intelligent. He must be a good judge of
human nature and a good leader. He should be alert to
new opportunities and willing to incur the risk of
exploiting them.
2. Technical Knowledge and willingness to change:
Technological change is the prime mover in the process
of economic growth. Inventions and innovations have led
the process of development in the world. In developing
countries the search for and application of new
technology should be the primary goal of good
entrepreneurs. Their success depends largely upon their
ability to adopt new technology. Technical knowledge
applies the ability to devise and use new and better ways
of producing and marketing goods and services. A good
entrepreneur is one who is interested in changing the
pattern of production to suite the available resources,
market conditions and quality of output. He should be
able to take initiative and to adapt to changing
conditions. He should have the capacity to explore new
demand that occurs with the growth of industry and rise
in per capita income. An entrepreneur should have a keen
desire to initiate and accept changes. He is expected to
discover new combinations involving new products, new
methods of production, development of new market, and
a utilization of new source of productive factors and a
new form of organization. In underdeveloped countries
there is dearth of true entrepreneurs. People are not very
enthusiastic due to age long traditions, uneconomic
culture and unhealthy environment. Very few persons
accept change as a way of life. Willingness to accept is a
major quality of successful entrepreneurs.