Who is an entrepreneur, what do they do and how do they operate? This is one question many people have not been able to answer satisfactorily. People define who an entrepreneur is differently, and this is largely because an entrepreneur is an individual of many parts.
In fact, the true constituent of an entrepreneur is determined by the socio-economic conditions of his country and the perceptions as well as approach or thoughts of the people towards business – resulting in different types of entrepreneurs according to geographic locations.
But who is an entrepreneur?
In simple terms, an entrepreneur is an enterprising individual who builds a new business around an idea. He manages the entire risks associated with the business and also determines the directions of the business.
He also enjoys most of the rewards generated by the business. Being an innovator, the entrepreneur deploys his skills and initiatives to steer the business with a view to making it successful by serving the needs of the target market.
What do entrepreneurs do and how do they operate?
It has been established that they create businesses around a potentially income-generating idea. In the process of developing their businesses – they create a business plan on paper or in their heads, they hire labor or workers to help, they acquire financing and other necessary resources, and they provide management and leadership for the business. They essentially hold the business together by determining how it is run.
In order for the business to reach its full potentials, the owner must steer it past various government bureaucracies and other emerging threats. A business stands the risks of collapse if it cannot overcome bureaucracies or deal decisively with emerging challenges.
The bureaucracy may be in the form of government policies and regulations, and the emerging threats may be in the form of industry regulations, human resource management, capital injections, marketing and sales, and other unknown factors related to the viability of the business.
Although there is no foolproof road to entrepreneurial success, a businessman must apply certain procedures in order to increase his chances of business success. Some of these include –
- Ensure adequate cash supply
- Build a diverse set of skills necessary for the business to stabilize and generate profit
- Identify a core problem that its solution can attract money
- Design definite ways of solving the problem
- Monetize problem-solving activities
- Hire competent employees to advance the core objectives of the business
Entrepreneurs, in general, have certain traits in common and these are what set them apart from general businessmen or salaried employees. Some of these characteristics include –
- They are industrious with an abundant burst of uncommon energy
- They are passionate about what they do and even obsessed with its outcome
- They are visionaries that see what others do not see
- They are resilient, very elastic and rebound easily. They recover readily from depressions and failures.
- They are not afraid to get their hands and clothes dirty in the course of work.
- They display shrewd money management tendencies
- They know when to change course and when to call it quits
An entrepreneur is born and is also made, however it is best for an individual with entrepreneurial talent and tendencies to study more and hone his skills in order to position himself to deal with the challenges of a new business.