Who is an Entrepreneur & What is Entrepreneurship?
Entrepreneurs are innovators who make businesses by turning Ideas into reality.Entrepreneurship is a process in which entrepreneurs approach the problem and solve it by taking risks
Different people defined Entrepreneur and Entrepreneurship in different words So why not i would try
A Simple definition:
“Entrepreneurs are innovators who make businesses by turning Ideas into reality”
“Entrepreneurship is a process in which entrepreneurs approach the problem and solve it by taking risks”
Entrepreneurs are those who are always looking for opportunities with their open mind and always seek to learn by making mistakes.
Their decision making ability, handling the problem, Team management, And Leadership Qualities make them stand out in a business world.
How Entrepreneurship works?
In Entrepreneurship, entrepreneurs utilize resources, labor and capital to make products and provide services.
Entrepreneurs are the innovators who take the risks to make business more profitable.and also Social Entrepreneurs solve multiple problems for the sake of society.
Entrepreneurship gives us a chance to improve the living standard, promotes innovation, and also helps to improve existing businesses which have a great influence on the economy of the country.
Characteristics of an entrepreneur
Entrepreneurship is a vast field. If you say every entrepreneur is successful it would be wrong.
Only five out of a hundred become the face of entrepreneurs. So there is something which makes them different from others.
These are the characteristics that every successful entrepreneur follows:
- Risk Taker
Starting a new business requires a lot of right decisions. Every decision involves risks of failure.
So an entrepreneur should have courage to take risks. once in while every business has to pass through this state.
Which became the essential part of being an entrepreneur.
- Long vision
A successful Entrepreneur should have a long vision for his startup.
Moreover, To turn Idea into profitable business requires both resources and employees.
To be on top of that A leader who shows the path to success.
- Open to ideas
An entrepreneur should be open minded and ready for every situation
for instance, Zoom took the initiative to fill the gap during the pandemic (like online studying, online meeting, even online weddings and much more)
“Just like some good things that come from bad” pandemics give us a chance to think out of the box.
In a business every situation is an opportunity,and used for the benefit of the company.
An entrepreneur should be flexible and open to change according to needs.
For example During the pandemic times, Many business names joined the list of “Top 100 business”
and make Fortunes like Amazon, Zoom , Netflix, Udemy, and much more.what they did they fill the gap.
A successful entrepreneur must stay focused and ignore the doubts that come up while running a business.
Not believing in yourself and having doubts on your ideas and instincts is a path which leads to failure.
In addition Never forget why you joined the startup world. To make a change.
- Comfortable with failures
A True Entrepreneur never takes his steps back from learning. The journey of startup requires many obstacles(failures)
Those who take it as a lesson and try to make their product better. Only those businesses stand in the world.
A Great line: “Failures teach us how to grow”
- Business Smart
Managing business means managing finances like revenue, costs and most importantly knowing how to control them.It gives the business life.
Furthermore, Having a strong business strategy, audience insights, your strengths and weakness will help to cross the bridge of the running business
Examples of Entrepreneur
A Scottish born American Entrepreneur who made most of his fortune from the steel industry then became a major philanthropist.
Andrew Carnegie was a bobbin boy at a Pittsburgh cotton factory earning 1.20$ per week.
before becoming the division superintendent of the Pennsylvania Railroad in 1859.
While working there he invested in multiple businesses like iron and oil and made his first fortune in the early 30s.
After that he entered the steel business in the 1870s,and for the next few decades became a powerful man in the steel industry.
Fortunately, in 1901 sold his company for $480 million dollars and more then 350$ million dollar giving away to charity.
I know you have heard that name before.Yes i am talking about the founder of Walt Disney company and theme parks(Disneyland and Walt Disney World).
His Brand started Growing with the character name Mickey mouse and after that thousands of other character names are shown in that list.
Their journey is not easy as well. He faced many hurdles like stealing work and commercial failures
But his determination and commitment to his work made his business around the globe.
Elon Musk and his journey to success had lots of ups and downs before building SpaceX and Tesla.
He created many different products and tools just like at the age of 10 build a game and sold it for 500$.
Elon also created Zip2(a web software company that helps newspapers to create online city guides)
after that x.com(the future of banking which merged to money transfer company cofinity.Which is now known as PayPal)
However, eBay bought PayPal for 1.5 billion dollar. Which results in Elon Musk being left with 180 million dollars in stock.
And the current Net Worth of Elon Musk $282 billion US which became him No 1 richest person in the World in 2022.
Types of entrepreneur and entrepreneurship
According to research that entrepreneurs fall into four types of “entrepreneurial DNA’s”.
Builders create a highly scalable business within a short period of time. Cross the first target of $5 million dollars in revenue within two-four years. And continue until they reach their next hundred million dollar target.
These individuals measure their success by looking at infrastructure. They are pied paper who are best in hiring talent, investors and as well as choosing the right customers.
Entrepreneurs with a certain type have behavior like controlling temperament.which cause difficulties in their business and personal relationships.
Opportunist entrepreneurs are positive in nature and are good at picking the right opportunities at the right time.
Ride the wave during the time of growth and leave at peak. They measure their success by “how much money they make”.
So they are always looking for an opportunity to create residual and renewal income. by the way, Opportunists are quite impulsive in terms of money.
Innovators are those who always try to find something innovative or solve a problem in an unusual way.
For instance Elon Musk, Mark Zuckerberg, and Steve Jobs. They were doing something they loved, and found business opportunities through that.
Their success is measured by the product success.They are not good at running business but more into generating ideas to solve problems.
Specialists are analytical and risk averse and anti selling. They get their skills in a specific area by schooling and apprenticeships.Most of their business comes from referral and networking.
once their personal income hits their goals. slowing the process of growth rather than builder entrepreneur.
Types of Entrepreneurship
Entrepreneurship is categorized into four:
Small business is the type in which an individual opens a business without a dream of scaling into a large company. Such as Grocery Store, Retail store, plumber, electrician etc.
They are usually run by family members or local employees.The only motive of business to make enough profit so they can put food on the table.
These individuals fund themselves by taking small loans from bank or loans from friends or Family.
These are the companies that start with the idea to change the world. The goal is to create a unique product or service which leads them into a scalable business.
So they hire the best talents to continue growing. These types of companies often required more venture capital to grow the idea.
Large company entrepreneurship is a business which focuses on innovation.
By involving in new technologies which builds pressure on other large companies to create products that fulfills the customer requirements in the new market.
CEOs of these large companies either buy new innovative enterprises or company individuals to build the products internally.
Social entrepreneurs are those who make products that solve the problems faced by local communities in the world. Their goal is to serve society and not to make any profit.
Entrepreneur and the economy and its importance
Entrepreneurs are playing a vital role in the economic growth of the country. By creating new products and services which increase the level of employment and also directly levels up economic development.
So it encourages Government to support entrepreneurship for the betterment of economic Growth.
However, Entrepreneurs have an innovative vision to approach an age-old problem and solve it by turning innovative ideas into reality which leads to improve the living standard of people.
It also helps to promote social changes by bringing up new systems and technologies to society.
In this way social changes have a huge impact on the economy, on top of that entrepreneurship also promotes Research and industrial development.
Entrepreneurs are the ones who are always trying to discover new ideas and turn them into a product or service. Which opens the doors for others to establish new industries at the same time.
To conclude that, entrepreneurship has a great impact on the country’s economy and Social Entrepreneurship spreads the innovative wave to solve social problems faced by communities around the world.
Quotes of an Entrepreneur
“Winners never quit and quitters never win.”
“Every time you state what you want or believe, you’re the first to hear it. It’s a message to both you and others about what you think is possible. Don’t put a ceiling on yourself.”
“Be so good they can’t ignore you.”
“An entrepreneur tends to bite off a little more than he can chew hoping he’ll quickly learn how to chew it.”
“It’s fine to celebrate success but it is more important to heed the lessons of failure.”
“Success is walking from failure to failure with no loss of enthusiasm.”
”Genius is 1% inspiration, and 99% perspiration.”
“The best way to predict the future is to create it.”
“I don’t know the key to success, but the key to failure is trying to please everybody.”
“There is only one success- to be able to spend your life in your own way.”
How to become an entrepreneur?
The Internet is Full of Such Questions. There is no secret sauce and rocket science to become an entrepreneur. Just starting a company is the best way to become an entrepreneur.
During your journey learning by making mistakes is the best lesson to learn about entrepreneurship(there is no shortcut)
What works for one might not work for others.But there are some common things in most of the entrepreneurs are passionate, ambitious towards their work.
However, there is no need of any qualification to start a business but keep in mind entrepreneurship is a journey of learning and exploring new opportunities.
Believe in your gut and instincts keep yourself open to new ideas that can help you to establish a successful business.
Entrepreneurs Frequently Asked Questions
Who is the father of entrepreneurship?
Joseph Alois Schumpeter
What Does It Mean to Be an Entrepreneur?
An entrepreneur is an individual who takes the risk to start a business by turning their ideas into reality
What Is the Best Definition of Entrepreneurship?
Entrepreneurship is a process in which entrepreneurs approach the problem and solve it by taking actions
What Are the 4 Types of Entrepreneurship?
Small Business, large company, Scalable Startup , Social
What are types of entrepreneur?
Builder, Innovator, Specialist, Opportunist
What are the seven characteristics of an entrepreneur?
Risk taker, open to ideas , flexible. Business Smart, comfortable with failures, focused , long vision