The entrepreneur and entrepreneurship – Pt 2
IT IS so good to be with you all again. The weeks are slipping away quickly, and before we know it, exams will be here.
Last time, I left you with the task of reading and making notes on the characteristics of the typical entrepreneur. What did you come up with? Compare your notes with what I have in this lesson, and bear in mind that these characteristics help to make a successful entrepreneur.
The entrepreneur should be:
1. Creative. This means able to use imagination to invent something different or original.
2. Innovative. Be able to find new methods or ways of doing things and to make changes where necessary. It also involves bringing in new ideas.
3. Flexible. This means being easily adaptable. In this rapidly changing world, the entrepreneur must adapt to changes in technology and changes in demand. Rigidity often results in failure.
4. Goal-oriented. Whatever the entrepreneur does should be towards achieving the goals or objectives of the business. He should not be sidetracked into doing things that have no bearing on the aims and objectives of the business.
5. Persistent. The entrepreneur should be able to continue firmly along a certain course of action despite difficulties. This does not mean, however, that he will not make changes where necessary. Remember, we have already said that the entrepreneur should be flexible. However, being persistent means that he will not give up on an idea or project at the first sight of problems. He will try to “iron out” the problems and continue the projects, resulting in the achievement of the goals and objectives of the business.
6. Highly committed. If the entrepreneur has a high degree of commitment, he will work hard and not give up easily. He will persevere in whatever he is doing.
7. Able to take calculated risks. This means that the entrepreneur should be someone who has a sense of searching for opportunities and is willing to take chances based on the fact that he has studied what is involved and believes that
there can be success and achievement of the well-defined goals of the business. Thus, the entrepreneur will spot and capitalise on opportunities.
8. Able to handle uncertainties. The risks that cannot be insured against, referred to as uncertainties, must be dealt with by the entrepreneur.
Entrepreneurs often have a desire to start up a business. What are some of the reasons that he will want to do so? This question brings us to our next subheading:
REASONS FOR WANTING TO START A BUSINESS
A business refers to an individual or a group of individuals involved in a commercial activity such as producing or selling goods and services with the aim of making a profit. Where persons are engaged in such activities, but not with the aim of making a profit, they cannot be regarded as a business.
There are two main reasons for wanting to set up or start a business:
(i) Desire for financial independence; (ii) Self-actualisation/self-fulfillment. Let us now expand on these two reasons.
DESIRE FOR FINANCIAL INDEPENDENCE
Some people set up businesses in order to gain money so that they will not have to rely on others for money for food, clothing, and shelter. Financial independence, in this case, is realised through making a profit. Where an entrepreneur sees that he can sell his product for more than what it costs him to produce it, he will be motivated to set up a business so that he does not have to depend on others.
SELF-ACTUALISATION (SELF-FULFILLMENT)
Often, businesses are set up because of the need to realise one’s potential, because of the need to express creativity, because of the need to achieve and to be able to recognise one’s limitations or shortcomings and to be able to make improvements. Business owners are able to achieve what is important to them. Entrepreneurs want to be their own bosses, and they set up businesses to bring their desire to life. Businesses allow for self-expression, an opportunity to do what you enjoy.
Some persons see businesses as an opportunity to contribute to society and be recognised for their efforts. They gain trust and recognition from customers who have served them faithfully over the years.
Revise last week and this week’s lessons. After doing so, attempt this question.
(a) Define the terms “entrepreneur” and “entrepreneurship”. (4 marks)
(b) Discuss three roles of the entrepreneur. (6 marks)
(c) Outline three vital characteristics of the typical entrepreneur. (6 marks)
(d) As an entrepreneur, you are thinking of establishing a business in your community. Explain two reasons why you may wish to do so. (4 marks) Total marks: 20
Well, that’s it for now. Next week, I hope to look into the steps to be taken in establishing a business. Keep safe. Bye-bye. Yvonne Harvey is an independent contributor. Send comments to kerryann.hepburn@gleanerjm.com