Answer the following
1) Define entrepreneur. Explain characteristics of entrepreneur
Solution:
Definition:
Webster dictionary gives a definition, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.”
Characteristics of entrepreneur.
Entrepreneurs have some special characteristics like creative thinking, imagination, enthusiasm, sincerity etc. The characteristics of an entrepreneur may be briefly stated as follows:
1) Intellectual Capabilities:
An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to analyze business situations. This ability will help him to take proper decisions.
2) Future Vision:
The entrepreneur has a good foresight about future market situation. He should also have knowledge about external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely actions for the same.
3) Hard Work:
An entrepreneur is ready to work hard. It is more necessary when a new venture is started. He has to work for long hours. Many a times he has to handle the main areas of business independently. This will make him successful.
4) Technical Knowledge:
An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.
5) Communication Skills:
An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees, etc. He must be able to express his ideas and strategies effectively. It is necessary that there is a proper understanding between the sender and the receiver of the message.
6) Highly Optimistic:
An entrepreneur has to always think positively. He is always hopeful and confident about the market situations even in failure times. Such positive attitude helps him to run his business successfully.
7) Risk bearing capacity:
Successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks new and more opportunities.
8) Self Confidence:
An entrepreneur has self-confidence. He has positive desires to achieve his goals. Such self-motivation keeps him strong and confident to face various obstacles.
2) Define an entrepreneur. Explain its functions?
Solution:
Definition: Webster dictionary gives a definition, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.”
Functions fo entrepreneur.
1) Innovation:
An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or brings changes in the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.
2) Determination of Objectives:
An entrepreneur has to determine the aims and objectives of the business. There may be difference between primary and secondary objectives of the enterprise. He can change these objectives as per the market situations.
3) Development of Market:
The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer’s demand. When the markets are developed constantly, the demands of the consumers will increase.
4) New Technology:
In global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.
5) Good Relations:
It is necessary to maintain a healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Coordination among the employees is the key to success.
6) Organizing Funds:
Entrepreneur need to find out different financial resources because adequate and continuous finance is always necessary for business. Good and honest relations with the investors is necessary for every business.
7) Taking Decisions:
An entrepreneur has to make wise decisions for his enterprise. Timely and correct decisions are also important and necessary for a proper business plan. He should always consider the pros and cons before taking any business decision.