What is an Entrepreneur | Definition, Types, Qualities

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This article Introduction to Entrepreneur covers entrepreneur definition, types of an entrepreneur, qualities of an entrepreneur.

Entrepreneur Definition

“An entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit change as an opportunity for different business of service.”

Peter Drucker

An entrepreneur is a person or the individual who starts a new venture or business, considering all the risks and enjoying most of the profits. The entrepreneur is often seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

  • An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
  • An entrepreneur combines capital, land, and labour to manufacture goods or provide services through the formation of a firm.
  • In a market full of uncertainty, it is the entrepreneur who can actually help clear up uncertainty, as he makes judgments or assumes the risk.

Read: What is Entrepreneurship?

Types of entrepreneur

Innovative entrepreneur

“An innovative e. is one who always searches for changes, responds to it and exploits it as an opportunity” – Peter Drucker

  • Creates new values or increase the value of what already exists.
  • Highly motivated, talented and innovation as key functions.

Example: Generally innovative entrepreneur are of developed countries.

Adoptive or Imitative entrepreneur

  • Does not innovate but imitates techniques and technologies innovated by others.
  • Ready to adopt successful innovations already inaugurated by innovating entrepreneurs.
  • Indian entrepreneurs adopting new technologies of Japan, Germany in Automobiles, electronics and infrastructure.

Fabian entrepreneur

  • Cautious in introducing any change. Generally, no will or desire to introduce new changes or adopt new methods.
  • Imitates only when huge losses are foreseen
  • Dominated by Customs, Traditions, Religion, Past practices
  • Not ready to take any risks at all

Fabian is more applicable in the Indian rural agriculture environment, where traditional acquired land is passed down to their successors, the new Landlord try to run their business in a pre-historic manner with traditional methods of bookkeeping and fewer changes.

Drone entrepreneur

  • Blindly follow traditional methods of production even if it results in losses.
  • Not prepared to introduce any change.
  • Reasons may be lack of funds, lack of understanding of new developments in his field of operation.

Social entrepreneur

The social entrepreneur is primarily motivated by a deep desire to improve upon, or fundamentally change, prevailing and detrimental socio-economic, educational, environmental or health conditions.

  •  A Social entrepreneur measures success by the impact that he/she has on society.
  • Highly passionate, the greater good of the community is their primary interest and they create a business to provide solutions to social issues.
  1. Mohd. Younus (Bangladesh) – Founder of microcredit and the Grameen Bank
    Awarded Nobel peace prize.
  2. Dr Verghese Kurien (India) – Founder of Amul dairy Project

Lifestyle entrepreneur

Places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living.

  • Interest, passion, talent, knowledge or a high degree of expertise

Serial entrepreneur

  • Who makes a living by starting up companies and operating them until they are competitive, then selling them.
  • Entrepreneurs that continuously comes up with new ideas and start new businesses.

Opportunity driven entrepreneurs

  • An entrepreneur who wants to exploit a perceived business opportunity – future orientation
  • strive for independence, self-actualization, recognition and profit maximization
  • on average they rise higher than necessity-driven entrepreneurs

Necessity driven entrepreneurs

  • An entrepreneur who is pushed into entrepreneurship because all other options for work are either absent or unsatisfactory – ‘away from’ orientation
  • dissatisfaction with working conditions, contents and time
  • pursue entrepreneurship to secure their own existence

Read: Types of Entrepreneurship

Qualities of an Entrepreneur

  1. Confidence: It plays a vital role in entrepreneurship, it is easy to become demoralized, frustrated and resentful it represents a lack of confidence. Self-Confidence is concerned with how a person feels about his ability. A successful entrepreneur believes in his abilities.

  2. Ability to get things done: Successful entrepreneurs are persistent and hardworking. They master self-discipline to such extent that if a work is un-done they’ll strive to complete as soon as possible.

  3. Creativity: It is the ability to use their insights and come up with new ideas of solving problems and getting things done. Often entrepreneurs with new ideas and innovations lead a successful career. 4. Disciplined: Entrepreneurs are focused on achieving their business goal, and eliminate any obstacles or distractions to their goals. Successful entrepreneurs are disciplined enough to take steps every day toward the achievement of their objectives.

  4. Open Minded: Entrepreneurs are very likely to accept all the opportunities irrespective of their capacity. Ideas are constantly being generated by them to make the business more efficient and increase the workflow.

  5. Competitive: Although the number of ventures in the market are increasing day-by-day, Entrepreneur needs to be competitive and tackle the situations to enjoy the fruit of success.

  6. Passion: It is the most important quality of the entrepreneur, without love towards the profession one cannot do the job with the zeal and cannot give his 100%.

Also Read:

  1. Characteristics of Entrepreneurship
  2. Why is Entrepreneurship important?
  3. Read Further: Wikipedia

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