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ENTREPRENEURSHIP AND SMALL SCALEINDUSTRIES

Definitions of Entrepreneur:

An entrepreneur is a person who has possession of a new enterprise , venture or idea and assumes significant accountability for the inherent risks and theoutcome. [1] [note 1] The term is originally a loanword from French and was firstdefined by the Irish economist Richard Cantillon . Entrepreneur in English is aterm applied to the type of personality who is willing to take upon himself a newventure or enterprise and accepts full responsibility for the outcome. Jean-

Baptiste Say , a French economist, is believed to have coined the word"entrepreneur" first in about 1800. He said an entrepreneur is "one whoundertakes an enterprise, especially a contractor, acting as intermediatorybetween capital and labour

A person who organizes, operates, and assumes the risk for a business venture

An individual who, rather than working as an employee, runs a small businessand assumes all the risk and reward of a given business venture, idea, or goodor service offered for sale. The entrepreneur is commonly seen as abusiness leader and innovator of new ideas and business processes.

Entrepreneurs play a key role in any economy. These are the people who havethe skills and initiative necessary to take good new ideas to market and makethe right decisions to make the idea profitable. The reward for the risks taken isthe potential economic profits the entrepreneur could earn.

Who is an Entrepreneur? (Today's meaning)

Entrepreneur a person, who has initiative in investment and decision to the enterprise;seeking all resource of factor of production, resources of Management, Behavior,Cultural, Economical and Political factor for establishing, innovation and foundedenterprise, having assumption of risk, profit and future growth

As a leader

The entrepreneur is the main person behind a firm or organization; he orshe can demonstrate his or her quality as a leader by choosing the rightmanagers for the firm. Scholar Robert. B. Reich considers leadership,management ability, and team-building as essential qualities of anentrepreneur. This concept has its origins in the work of Richard Cantillon

in his Essai sur la Nature du Commerce en (1755) and Jean-Baptiste Say (1803 or 1834) [note 3] in his Treatise on Political Economy .

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A more generally held theory is that entrepreneurs emerge from thepopulation on demand, from the combination of opportunities and peoplewell-positioned to take advantage of them. An entrepreneur may perceivethat they are among the few to recognize or be able to solve a problem.In this view, one studies on one side the distribution of informationavailable to would-be entrepreneurs (see Austrian School economics ) andon the other, how environmental factors (access to capital, competition,etc.), change the rate of a society's production of entrepreneurs. [ citationneeded ]

A prominent theorist of the Austrian School in this regard is Joseph Schumpeter , who saw the entrepreneur as innovators and popularized theuses of the phrase creative destruction to describe his view of the role of entrepreneurs in changing business norms. Creative destruction dealtwith the changes entrepreneurial activity makes every time a newprocess, product or company enters the market.

Research into entrepreneurs

Schumpeter argues that the entrepreneur is an innovator, one thatintroduces new technologies into the workplace or market, increasingefficiency, productivity or generating new products or services (Deakinsand Freel 2009). Other academics such as Say, Casson and Cantillon, saythe entrepreneur is an organiser of factors or production that acts as acatalyst for economic change (Deakins and Freel, 2009). Shackle arguesthat the entrepreneur is a highly creative individual that imagines newsolutions providing new opportunities for reward (Deakins and Freel,2009). These are a few definitions from the entrepreneurship field butshow the complexity and lack of cohesion between academic research(Gartner, 2001). Most research focuses on the traits of the entrepreneur.Cope (2001) argues that although certain entrepreneurial traits arerequired, entrepreneurs' behaviour are dynamic and influenced byenvironmental factors.

Shane and VenKataraman (2000) argue the entrepreneur is solelyconcerned with opportunity recognition and exploitation; however, theopportunity that is recognised depends on the type of entrepreneur whichUcbasaran et al. (2001) argue there are many different types dependenton their business and personal circumstances.

There is a growing body of work that shows that entrepreneurial behavioris dependent on social and economic factors. The research into femaleentrepreneurs illustrates this quite clearly. "Countries which have healthyand diversified labor markets or stronger safety nets show a morefavorable ratio of opportunity to necessity-driven women entrepreneurs."

(Minitti, 2010) What those factors are varies widely, based on local needs.

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In Somalia, this may be bigger crops or clean water while in the US,technology seems to be the driving factor.

New research regarding the qualities required for successfulentrepreneurship is ongoing, with notable work from the Kauffman Institute forming the statistical basis for much of it. Research from ScottA. Shane (2008) [2] summarizes much of the counter-intuitive conclusionsof this research while Adrian Perez's research on success attributes for co-founder teams is ongoing. [3]

Social Entrepreneur

Social entrepreneurs act within a market aiming to create social valuethrough the improvement of goods and services offered to thecommunity. Their main aim is to help offer a better service improving thecommunity as a whole and are predominately run as non profit schemes.To explain this point Zahra et al. (2009: 519) said that socialentrepreneurs make significant and diverse contributions to theircommunities and societies, adopting business models to offer creativesolutions to complex and persistent social problems. Examples of sociallyrun businesses include the NHS and also the 'Love One Water' drinksbrand.

Serial Entrepreneur

A serial entrepreneur is one who continuously comes up with new ideasand starts new businesses. As opposed to a typical entrepreneur, who willoften come up with an idea, start the company, and then see it throughand play an important role in the day to day functioning of the newcompany, a serial entrepreneur will often come up with the idea and getthings started, but then give responsibility to someone else and move onto a new idea and a new venture. This can be a good thing if theindividual has lots of unique ideas and is the best one suited to get eachone started, but can be a bad thing if the individual stops putting time

into a company that needs his or her help, in order to try to move forwardwith a new idea that may or may not succeed

Characteristics Of Entrepreneur

Check if these entrepreneurs characteristics are applicable to you.

Responsible Hard Worker Risk Taker Creative Flexible Follows through with ideas

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Personable Optimistic Perceptive Self-confident Determined High degree of energy Innovative Independent Ability to anticipate needs Effective communicator Responsive to criticism Able to take the lead Learn from mistakes Self-directed

Starting and growing your own business requires many skills to be successful. Take a look atthe business personality types and find out what you need to succeed. Are you Bill Gates, aVisionary, or an Improver like Body Shop founder, Anita Roddick?

Your business personality type are the traits and characteristics of your personality that blendwith the needs of the business. If you better understand your business personality, then youcan give your company the best part of you. Find others to help your business in areas youaren't prepared to fulfill.

There are 9 key types of personality and understanding each will help you enjoy your business more and provide your company with what it needs to grow. This entrepreneur personality profile is based on the 9-point circle of the Enneagram.

Begin identifying your dominant personality theme and understand how you operate in your business.

The 9 Personality Types of Entrepreneurs

1. The Improver: If you operate your business predominately in the improver mode, you arefocused on using your company as a means to improve the world. Your overarching motto is:

morally correct companies will be rewarded working on a noble cause. Improvers have anunwavering ability to run their business with high integrity and ethics.

Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees and customers.

Entrepreneur example: Anita Roddick, Founder of The Body Shop.

2. The Advisor: This business personality type will provide an extremely high level of assistance and advice to customers. The advisor's motto is: the customer is right and we mustdo everything to please them. Companies built by advisors become customer focused.

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Personality Alert: Advisors can become totally focused on the needs of their business andcustomers that they may ignore their own needs and ultimately burn out.

Entrepreneur example: John W. Nordstrom, Founder Nordstrom.

3. The Superstar: Here the business is centered around the charisma and high energy of theSuperstar CEO. This personality often will cause you to build your business around your own

personal brand.

Personality Alert: Can be too competitive and workaholics.

Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.

4. The Artist: This business personality is the reserved but highly creative type. Often foundin businesses demanding creativity such as web design and ad agencies. As an artist typeyoull tend to build your business around the unique talents and creativities you have.

Personality Alert: You may be overly sensitive to your customers responses even if thefeedback is constructive. Let go the negative self-image.

5. The Visionary: A business built by a Visionary will often be based on the future visionand thoughts of the founder. You will have a high degree of curiosity to understand the worldaround you and will set-up plans to avoid the landmines.

Personality Alert: Visionaries can be too focused on the dream with little focus on reality.Action must proceed vision.

Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing problems in a systematic way. Often the basis for science, engineering or computer firms,Analyst companies excel at problem solving.

Personality Alert: Be aware of analysis paralysis. Work on trusting others.

Entrepreneurial example: Intel Founder, Gordon Moore.

7. The Fireball: A business owned and operated by a Fireball is full of life, energy andoptimism. Your company is life-energizing and makes customers feel the company has a getit done attitude in a fun playful manner.

Personality Alert: You may over commit your teams and act to impulsively. Balance your impulsiveness with business planning.

Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

8. The Hero: You have an incredible will and ability to lead the world and your businessthrough any challenge. You are the essence of entrepreneurship and can assemble greatcompanies.

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Personality Alert: Over promising and using force full tactics to get your way will not work long term. To be successful, trust your leadership skills to help others find their way.

Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business.You have an uncanny ability to survive and persist with an inner calm.

Personality Alert: Because of your caring, healing attitude toward your business, you mayavoid outside realities and use wishful thinking. Use scenario planning to prepare for turmoil.

Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerrys Ice Cream.

Each business personality type can succeed in the business environment if you stay true toyour character. Knowing firmly what your strong traits are can act as a compass for your small business. If you are building a team, this insight is invaluable. For the solo businessowners, understand that you may need outside help to balance your business personality.

The different types of EntrepreneursThere are several different forms of business enterprises:

A sole traders business is run by one person who is responsible for various important tasksof the business such as debts. In other words, the sole trader must pay the debts of his/hersbusiness if its funds are not sufficient.The trading partnership can be explained as an enterprise that consists of at least two co-owners. These co-owners have unlimited shared, several and personal responsibility. Thismeans that both co-owners are responsible for the commitments of the business such as debts

and agreements made. As a result, if the company's funds are not sufficient to cover the debtsone of the two partners can be forced to pay all the debts of the company. Importantly, thepartners should be advised on signing a written partnership agreement in order to decide onwho is responsible for paying the debts if the company's funds are insufficient. Moreover, suchagreement is likely to cover issues including: division of labour, sharing of profits and how tosolve other procedures such as what would happen if one co-owner decides to exit thepartnership.

A limited company can be explained as a business enterprise defined by a clear distinctionbetween the company and the owners. Notably, a limited company can take many forms of ownership such as solely ownership or a partnership between many persons and/ orenterprises. The owners are not personally responsible for the companys commitment, whichmeans that their financial risk is limited to the capital invested.

An economic association (also called an incorporated association) consists of at least threemembers. The aim of the activity is to safeguard the members economic interests througheconomic operations. Also, the members are expected to take an active part in the business bycontributing their knowledge and work. Here, owners are faced with a minimal financial riskand they are only entitled to loose their membership.If you want further information visit: Nuteks home page on www.nutek.se. Other importantfacts can be found under Nutek's Entrepreneur's Guide Fretagarguiden . The aim of thiswebsite is to provide useful information to people who are running an enterprise or who areinterested in setting up a new company alone or together with other investors. Hence, theGuide provides information and tools for starting and developing a company

Five types of Entrepreneurs, what type of entrepreneurare you?

May 7th, 2008 | 4 Comments | Posted in Entrepreneurship

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I came across this in a book I was reading which had a section on entrepreneurship. The book is called New Era of Management by Richard Daft . It goes on to talk about five types of entrepreneurs. There were a few I knew about before but some are new to me. So Ivedecided to share it with you in todays post. Lets see what categories we fall under.

Idealist

The idealist entrepreneur is the most common type of entrepreneur shown above. He/Shelikes innovation and enjoys working on something new or creative or something personallymeaningful.

OptimizersThe optimizer entrepreneur comes in a close second and is content with the personalsatisfaction of simply being a business owner.

I think everyone would have some sort of satisfaction being a business owner but if thatswhat mostly feels important then I guess you fall here.

Hard Workers

The hard workers entrepreneur category includes persons who enjoy putting in long hoursto build a larger more profitable business. They like the challenge it presents and of coursereap the most rewards if the business turns out to be a multi-million dollar enterprise.

Hard work comes with all businesses but as we now see not everyone works hard for the business to grow as this group of entrepreneurs does.

Jugglers

The juggler entrepreneur likes the concept that the business gives them a chance to handleeverything themselves. They are usually people with lots of energy and exist on the pressureof meeting deadlines, paying bills and of course making payroll.

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Who doesnt like pressure? J Last minute deadlines are lovely! Im sure a lot of you haveended up in a situation where the deadline is approaching quickly. Maybe youre a juggler

Sustainers

The sustainers entrepreneur category consists of people who like the thought of balancingwork and a personal life. Most often they do not wish the business to grow too large where itwill cut into their personal life too much.

These guys just need enough to survive. No big hopes and dreams of a multinationalcorporation or interviews on The Big Idea J

So there you have it five categories of entrepreneurs. Ive been trying to figure out whichcategory best describes me, but I think I have attributes of the first four types. I lovecreativity and innovation so am I an idealist? I think everyone would feel satisfaction as a

business owner, a natural sense of pride would always come with entrepreneurship.

I definitely would love to see any business venture I undertake grow as large as it possiblycan so then Im a hard worker? Yet I work well under pressure Id say I thrive on it a bit sothen Im a juggler.

I guess I am hybrid entrepreneur. What type of Entrepreneur are you?

So thats it, if you likes this post please subscribe to my rss feed.

3) What abilities do you need when starting a small business to become a successfulentrepreneur?

According to studies conducted by the Bank of Montreal Institute for Small Business, "TheSix Success Factors" for starting a small business are:

self-motivation, business and industry knowledge, organization and management capabilities, marketing skill, customer/vendor relations, and vision. Business and industry knowledge should be near the top of anyone's list of

requirements for small business success. After all, how many skis or snowboards areyou going to sell if you don't know anything about the products or the sport? You canacquire this knowledge through trial and error when starting a small business, but youwill probably have to declare bankruptcy before you learn all you need to know. Mytheory is that lack of knowledge is one of the prime reasons so many new businessfail.

While successful entrepreneurs themselves didn't rate being well organized highly,((William E. Jennings, "A Profile of the Entrepreneur" in Entrepreneurship: A Primer

for Canadians ), it's logical that organizational and management abilities are also

absolute necessities for being a successful entrepreneur. You're not going to be able to

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satisfy many (if any) clients or customers without these skills, and you'll certainlyquickly run afoul of the Canada Revenue Agency without them!

People keen on starting a small business sometimes forget about the managerial andadministrative skills necessary to run a business; if you're going to start a successfulsmall business, you need to have or develop expertise in business planning, money

management, managing people, directing business operations, and directing sales andmarketing operations. Business Management Basics will help you learn how tomanage these aspects of starting a small business.

What are the other abilities you'll absolutely need to be a successful entrepreneur?When twenty-one inductees into the Babson Academy of Distinguished Entrepreneurswere questioned about the principal reasons for their success, only three abilities werementioned by all twenty-one successful entrepreneurs; responding positively to allchallenges and learning from mistakes, taking personal initiative, and having great

perseverance ("Assessing Your Potential for an Entrepreneurial Career", ManitobaIndustry, Trade and Tourism, 1999.) As the authors point out, all three of thesesuccessful entrepreneur behaviors can be learned!

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