MEANING OF ENTREPRENEURER
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The entrepreneur
is defined as someone who has the ability and desire to establish, administer
and succeed in a start up venture along with risk entitled to it, to make
profits.
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The
entrepreneurs are often known as a source of new ideas or innovators, and bring
new ideas in the market by replacing old with a new invention.
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It can be
classified into small or home business to multinational companies. In
economics, the profits that an entrepreneur makes are with a combination of
land, natural resources, labour and capital.
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In a nutshell,
anyone who has the will and determination to start a new company and deals with
all the risks that go with it can become an Entrepreneur.
A) Based on
the Type of Business:
1. Trading Entrepreneur:
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As the name
itself suggests, the trading entrepreneur undertake the trading activities.
They procure the finished products from the manufacturers and sell these to the
customers directly or through a retailer.
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These serve as
the middlemen as wholesalers, dealers, and retailers between the manufacturers
and customers.
2. Manufacturing Entrepreneur:
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The
manufacturing entrepreneurs manufacture products. They identify the needs of the
customers and, then, explore the resources and technology to be used to
manufacture the products to satisfy the customers’ needs. In other words, the
manufacturing entrepreneurs convert raw materials into finished products.
3. Agricultural Entrepreneur:
•
The entrepreneurs who undertake agricultural
pursuits are called agricultural entrepreneurs. They cover a wide spectrum of
agricultural activities like cultivation, marketing of agricultural produce,
irrigation, mechanization, and technology.
B) Based on the Use of Technology:
1. Technical Entrepreneur:
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The
entrepreneurs who establish and run science and technology-based industries are
called ‘technical entrepreneurs.’
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Speaking alternatively, these are the entrepreneurs
who make use of science and technology in their enterprises. Expectedly, they
use new and innovative methods of production in their enterprises.
2. Non-Technical Entrepreneur:
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Based on the use
of technology, the entrepreneurs who are not technical entrepreneurs are
non-technical entrepreneurs. The forte of their enterprises is not science and
technology.
•
They are concerned with the use of alternative
and imitative methods of marketing and distribution strategies to make their
business survive and thrive in the competitive market.
C) Based on Gender:
1. Men Entrepreneurs:
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When business
enterprises are owned, managed, and controlled by men, these are called ‘men
entrepreneurs.’
2. Women
Entrepreneurs:
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Women
entrepreneurs are defined as the enterprises owned and controlled by a woman or
women having a minimum financial interest of 51 per cent of the capital and
giving at least 51 per cent of employment generated in the enterprises to
women.
D) According to the level of willingness
1. Innovating Entrepreneurs:
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Innovating
entrepreneurs are one who introduce new goods, inaugurate new method of
production, discover new market and reorganize the enterprise.
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It is important
to note that such entrepreneurs can work only when a certain level of development
is already achieved, and people look forward to change and improvement.
2. Imitative Entrepreneurs:
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These are characterized
by readiness to adopt successful innovations inaugurated by innovating
entrepreneurs. Imitative entrepreneurs do not innovate the changes themselves,
they only imitate techniques and technology innovated by others.
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Such types of
entrepreneurs are particularly suitable for the underdeveloped regions for
bringing a mushroom drive of imitation of new combinations of factors of production
already available in developed regions.
3. Fabien Entrepreneurs:
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Fabien
entrepreneurs are characterized by very great caution and skepticism in
experimenting any change in their enterprises. They imitate only when it
becomes perfectly clear that failure to do so would result in a loss of the
relative position in the enterprise.
4. Drone Entrepreneurs:
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These are characterized
by a refusal to adopt opportunities to make changes in production formulae even
at the cost of severely reduced returns relative to other like producers.
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Such
entrepreneurs may even suffer from losses but they are not ready to make
changes in their existing production methods.
E) Other categories of entrepreneur:
1. Solo Operators:
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These are the
entrepreneurs who essentially work alone and, if needed at all, employ a few
employees. In the beginning, most of the entrepreneurs start their enterprises
like them.
2. Active Partners:
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Active partners
are those entrepreneurs who start/ carry on an enterprise as a joint venture.
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It is important
that all of them actively participate in the operations of the business.
Entrepreneurs who only contribute funds to the enterprise but do not actively
participate in business activity are called simply ‘partners’.
3. Inventors:
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Such entrepreneurs
with their competence and inventiveness invent new products. Their basic
interest lies in research and innovative activities.
4. Challengers:
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These are the
entrepreneurs who plunge into industry because of the challenges it presents.
When one challenge seems to be met, they begin to look for new challenges.
5. Buyers:
• These are those entrepreneurs who do not like to bear much risk. Hence, in order to reduce risk involved in setting up a new enterprise, they like to buy the ongoing one.
6. Life-Timers:
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These
entrepreneurs take business as an integral part to their life. Usually, the
family enterprise and businesses which mainly depend on exercise of personal
skill fall in this type/category of entrepreneurs.
FEATURES OF ENTREPRENEURSHIP:
1. Optimum Utilization of resources:
•
It is observed
that Entrepreneurship is considered as an economic activity as it comprises of
a lot of creativity as well as operations of a firm with a motive to maximize
their profit and also, make sure that there is the proper utilization of all
resources.
2. Innovation is the key for Entrepreneur:
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A continuous and
random search of innovative and creative ideas for business is mandatory to
grasp the attention of their potential customers.
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It is the
responsibility of an Entrepreneur to regularly analyze and evaluate all
business operations and develop some kind of efficient as well as an effective
system that can be adopted.
3. Risk bearing Capacity of Entrepreneur:
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Entrepreneurship
has a direct relationship with that of risks and an Entrepreneur must think
about the level of risk associated with the commencement of a business firm.
Entrepreneurship’s essence is a willingness to assume risks that arise out of
the creation as well as the implementation of all creative ideas.
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Some of the
newly developed ideas are tentative and thus, their results are not in favor or
maybe instantaneous.
4. Hard work and Commitment:
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By devoting a
lot of time and effort, hard work and commitment are required in the field of
Entrepreneurship. A combination of hard work with enthusiasm is necessary to
come up with a range of new ideas, enhancing business plans, and firmness of
essential resources.
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It is a deep
sensation of personal responsibility along with a high level of energy.
5. Passion is a must:
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It is always
required in the field of Entrepreneurship that one ought to be passionate and
give priority to their products or services at the same time. When you get
discouraged, then the motivation is always there to push you up and help to
drive towards the passion.
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Passion is the
key component behind every successful Entrepreneur. If it is realized that
passion is losing, then it is a kind of hint that indicates that it is the time
to move to something else.
5. Adaptability:
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This one is the
important factor that needs to be taken into account when it comes to survival
in the ever-changing business environment. It is a must to sustain in the
market and adapt some ways to survive in different market conditions.
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An essential for
Entrepreneurship is the ability to adapt to changes.
6. Active-minded:
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A good
Entrepreneurship always realizes that what situation will bring what type of
business opportunities for them. Therefore, it can be utilized for the
betterment of the business and making profits in the future.
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To exemplify, we
can example of Paytm as when the demonetization took place, then they launched
their online services and it increases the popularity of that business during
that period. So, it gave the company a huge push and grew suddenly within that
period.
7. Communication Skills:
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An Entrepreneur
needs to communicate with all the employees as well as clients in an effective
manner. It is not only good for the business but also leaves a very positive
impression along with a high level of confidence.
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Also, it keeps
the receiver and the sender on the same terms and easy to understand all the
things perfectly.
DIFFERENCE BETWEEN
ENTREPRENEUR AND MANAGER
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