ASSIGNMENT

ESBD

Submitted to:

Mr. SAHANI

Submitted by:

Akanksha Jain

05817003909

TECNIA INSTITUTE OF ADVANCED STUDIES

Question: Who is entrepreneur? And what is enterprise?

Solution:

An entrepreneur is a person who recognizes the opportunity and brings an overall change
through innovation. An entrepreneur is an individual who accepts financial risks and undertakes
new financial ventures. The word derives from the French "entre" (to enter) and "prendre" (to
take), and in a general sense applies to any person starting a new project or trying a new
opportunity.

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. Entrepreneur in English is a
term applied to the type of personality who is willing to take upon him a new venture or
enterprise and accepts full responsibility for the outcome.

Entrepreneurs choose a level of personal, professional or financial risk to pursue opportunity.

Entrepreneurs tend to identify a market opportunity and exploit it by organizing their resources
effectively an outcome that changes existing interactions within a given sector. 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 net social benefit.

Other entrepreneurs are necessity entrepreneurs. Entrepreneurship, particularly among women in

developing countries seems to offer an improvement in the standard of living as well as a path
out of poverty. Entrepreneurship is now growing at nearly three times the rate among women as
it is among men.

An Entrepreneur is truly a unique individual. Entrepreneurs find it difficult or impossible to work

for someone else, although they do work for the customers. They are willing to put everything on
the line for the passion and love of seeing their enterprise grow... And sometimes live with
several failures. They learn to continue to go the extra mile, hour after hour, day after day,
planning, adjusting, rescheduling, and refining their business, work, work, work, long after
everyone else has gone home.
They must be able to visualize the business as it will be, in a year, 2 years, and 5 years or more
down the road, I mean Visualize, as though it were a full color 3D movie, maybe without faces
on the people they have in place, because those WILL change, but able to see the process clearly.
That is vital to the success and achievement of one's goals.
Entrepreneurship is given a lot of importance because of its contribution to the economy. In
order to further encourage people to become entrepreneurs, governments usually offer different
perks to them. Some of these will include tax exemptions, cheaper capital, and even management
consultation and advice from experts. Generally, entrepreneurs will succeed if they focus on a
market niche that is not yet being explored or is still too small or too new to be noticed by more
big-time investors or businessmen.

Scholar Robert. B. Reich considers leadership, management ability, and team-building as

essential qualities of an entrepreneur.

Schumpeter argues that the entrepreneur is an innovator, one that introduces new technologies
into the workplace or market, increasing efficiency, productivity or generating new products or
services (Deakins and Freel 2009). Other academics such as Say, Casson and Cantillon, say the
entrepreneur is an organiser of factors or production that acts as a catalyst for economic change
(Deakins and Freel, 2009). Shackle argues that the entrepreneur is a highly creative individual
that imagines new solutions providing new opportunities for reward (Deakins and Freel, 2009).

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.

Characteristics:

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.
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.

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.

Comprehensive Awareness: They have a comprehensive awareness of a total situation and are
aware of all the ramifications involved in a decision.

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.

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.

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

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.

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.

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.
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.

Discipline: Plenty of business experts claim that you can’t get anywhere as an entrepreneur
without vision or creativity, but that’s simply not the truth. Instead, the one quality that no
entrepreneur can be successful without is discipline. To build an idea into a business, you have to
have the discipline to spend time slogging through the least fun parts of running a business (like
the bookkeeping), rather than taking that time to do something fun. When you’re the boss,
there’s no one to keep you at work except yourself — and there’s no short-term consequences for
skipping out early. Sure, if an entrepreneur plays hooky enough he knows that the business just
won’t happen, but it’s very hard to convince someone that ‘just this once’ won’t hurt (and to
keep ‘just this once’ from becoming a daily occurrence).

Calm: Things go wrong when you run your own business. Most entrepreneurs go through crises
with their businesses — and more than a few wind up with outright failures on their hands. But
when you’re responsible for a business, you have to be able to keep calm in any situation. Any
other reaction — whether you lose your temper or get flustered — compounds the problem.

Risk Tolerance: No entrepreneur has a sure thing, no matter how much money he stands to earn
on a given product. Even if a product tests well, the market can change, the warehouse can burn
down and a whole slew of other misfortune can befall a small business. It’s absolutely risky to
run a business of your own and while you can get some insurance, it’s not like most investment
options. Even worse, if something does go wrong, it’s the entrepreneur’s responsibility — no
matter the actual cause. In order to deal with all of that without developing an ulcer, you have to
have a good tolerance for risk. You don’t need to channel your inner frat boy and take on
absolutely stupid risks, but you need to know just how much you can afford to risk — and get a
good idea of how likely you are to lose it. If the numbers make you uncomfortable, the risk is too
great. An entrepreneur has to be willing to accept pretty big risks, with some level of comfort.
Enterprise:

An enterprise is a purposeful or industrious undertaking and an organization created for business

ventures. It can be defined as initiative, or purposeful broad plans requiring many coordinates; or
in business or financial applications as the overall operating entity.

It is an undertaking, especially one of some scope, complication, and risk and industrious,
systematic activity, especially when directed toward profit

All enterprises should carry out their daily work exceptionally well. When they succeed in the
short term, they should also, to the fullest extent possible, observe their goals and strategies to
pursue longer-term opportunities and conquer or avoid threats. Such behavior will require
management vision and considerable resources, infrastructure, and dedicated personnel. It is
often anticipated and expected that all employees —and in the aggregate, the enterprise itself—
always will act effectively, and “do the right thing.” Everyone should make sense of challenges,
find the best approaches to handle situations, anticipate outcomes, inform all concerned, and
implement decisions effectively, and so on. Unfortunately, few employees and enterprises, if
any, live up to such expectations. Worse yet, only rarely is there an explicit and shared
understanding among any of the enterprise’s employees—or managers—of what “acting
effectively” might mean in practice, although most would agree that such behavior would be
highly beneficial. It also is difficult to determine what is required to make behavior more
effective.

Enterprises are complex, and it is hard to manage the intangible and less visible functions
associated with human intellectual work and application of structural intellectual capital. The
complexity may appear deceptively simple since the operational and structural functions can
only be partially observed and understood, and it is tempting to focus only on what is readily
apparent —what is directly observable. Nonetheless, the interplay of individual factors cannot be
reduced to the study of separate elements. The interrelatedness requires that the systemic effects
be considered to the greatest extent possible.

The effective enterprise can be described by many observable characteristics such as:

Philosophy, leadership, and strategy

 • The management and operating philosophy focus on creating environments and practices
that promotes the best possible performance.

• Top and middle management act as leaders and provide behavioral examples and role
models and practice governance with integrity, purpose, and consistency.

• Rank-and-file employees are competent and effective leaders within their purviews.

• Goals and strategies are realistic, reachable, and competitive. The whole enterprise works
to implement them.

• people at all levels share a common understanding of enterprise management and

operating philosophy, purpose, strategy, and the general service paradigm.4

• Employees, departments, business units, and the overall enterprise deliver the desired
service paradigms.

Resources and efficiency

• The enterprise is well structured to allow its people, functions, and operations to
implement strategy successfully.

• The enterprise has adequate financial, physical, personal knowledge, and structural ice
resources.

• The enterprise utilizes its resources efficiently and minimizes waste in all forms.

Innovation, quality, and renewal

• The enterprise and its employees constantly innovate, renew, and maintain personal
knowledge, and other resources.

• Innovations and experiences are captured, communicated, and applied, and employees
are recognized for their contributions.
 • Everybody is motivated to perform their work competently, with appropriate task
knowledge and Meta knowledge to tackle work and challenges naturally and with relative
ease.

• The enterprise regularly obtains outcome feedback on how well products and services
perform —in the marketplace and within the enterprise —and uses these measures to
monitor its performance.

• People consistently act in a timely fashion, and delays are rare.

• Employees consistently “close the loop” by communicating to the originators that

messages or requests have been received, understood, and are being pursued.

• To minimize the risks of acting on inappropriate assumptions, employees clarify

assumptions before proceeding.

• The enterprise creates, produces, and delivers superior products and services that match
present and future market demands.

• Individuals, teams, units, and the enterprise itself deal competently with unexpected
events, opportunities, and threats.

Motivation and engagement

• Everybody understands what their role is in implementing enterprise strategy and why
they personally benefit from making the strategy work. Employees are noticeably
motivated and engaged in their work.

• Interpersonal work is performed through effective coordination, cooperation, and

collaboration. Undesirable personal or systems behaviors are controlled.