Chapter 1: what is an entrepreneur?

What is Entrepreneurship?

Most of us earn a living by working in a business. A business is an organization that provides products or
services, usually to make money.
A person who works in a business owned by someone else is an employee of that business. On the other
hand, someone who creates and runs a business is called an entrepreneur.
To be entrepreneurial means to think or act like an entrepreneur

How Employees and Entrepreneurs Differ

When an entrepreneur starts a new business, risk is involved. Risk is the chance of losing something. An
entrepreneur makes an investment of money, time, and energy in the hope of receiving greater rewards,
or benefits.
Because employees work for someone else and entrepreneurs work for themselves, entrepreneurs’ risk
more than employees.
Employees may risk losing a job if they do not perform their work well, but they are paid for their work.

Big Business versus Small Business

When people think of business, they tend to focus on large companies

such as Ford, Microsoft, and Nike. In reality, more businesses are considered small than big.
Small firms employ about half of the U.S. private work force, and they create around 64 percent of all
new jobs.
The Small Business Administration (SBA), an agency of the U.S. government that provides aid and advice
to small businesses, defines a small business as having fewer than 100 employees (fewer than 500
employees in the case of manufacturing companies).
One way you can gain a sense of what business is like is by investigating an internship. These work
programs provide practical, on-the job training in a business setting. Another word for an internship is an
apprenticeship.

Rewards of Being an entrepreneur:

Making Your Own Rules. When you own a business, you get to be your own boss. Depending on your
business, you can decide what type of schedule you work, where you work, and how and when you get
paid
Doing Work, You Enjoy. The majority of most peoples’ lives is spent working. Why not spend that time
doing something you enjoy? People tend to stay more focused and motivated when they are passionate
about their work.
Creating Greater Wealth. Typically, employees can only make the salary a company is willing to pay.
However, there’s no limit to what an entrepreneur can make.
Financial Insecurity. The amount of money you can pay yourself may go up or down, depending on how
well your business is performing.
Long Hours and Hard Work. It’s not unusual for entrepreneurs to work a lot of extra hours to make their
businesses successful. This is especially true during the initial start-up process.
Today’s Entrepreneurs

As in the past, present-day entrepreneurs pay attention to social trends to attract customers.
To be successful in today’s business world, most entrepreneurs use the Internet in some way. In fact,
more and more companies are making the Internet their primary business resource. [Link]. is a
good example, doing its business entirely on the Internet?
Typically, these companies use an electronic address that ends in “com” and are sometimes referred to
as dot-com companies

Characteristics of Successful Entrepreneurs

Self-assessment—evaluating your strengths and weaknesses—is an important part of becoming an

entrepreneur. Self-assessment helps you maximize your strong points and strengthen your weaker ones.
The key thing to remember is that everybody has strengths and weaknesses. It’s what you do with what
you have that counts.

Aptitudes and Attitudes

An aptitude is a natural ability to do a particular type of work or activity well. For example, you may find
math very easy, or you may naturally be good at sports. Aptitudes can sometimes be developed
through hard work.
An attitude is a way of viewing or thinking about something that affects how you feel about it.
Entrepreneurs tend to be people with positive attitudes. Instead of seeing a situation as a problem, they
look at it as an opportunity. This helps them find solutions more easily than people who think negatively

Personal Characteristics

⦁ Courage: A willingness to take risks in spite of possible losses.

⦁ Creativity: Inventing new ways of doing things; thinking outside the box.
⦁ Curiosity: The desire to learn and ask questions.
⦁ Determination: Refusing to quit in spite of obstacles.
⦁ Discipline: The ability to stay focused and follow a schedule to meet deadlines.
⦁ Flexibility: The ability to adapt to new situations; a willingness to change.
⦁ Honesty: A commitment to being truthful and sincere with others
⦁ Patience: Recognizing that most goals are not reached overnight.
⦁ Responsibility: Being accountable for your decisions and actions; not passing the buck.

Skills

A skill is an ability that’s learned through training and practice. For example, you didn’t know how to tie a
shoe when you were born. You learned this skill through practice and the help of adults.

Some of the basic skills entrepreneur’s need are:

⦁ Business Skill: Understanding how to create and manage a business.

⦁ Communication Skill: The ability to listen well, write well, and speak well.
⦁ Computer Skill: The ability to use technological tools effectively.
⦁ Decision-Making and Problem-Solving Skills: Knowing how to apply logic, information, and past

⦁ Mathematical Skill: Using math to create budgets, keep accurate records, and analyse financial
experiences to new decisions and problems.

⦁ Organizational Skill: The knack of keeping tasks and information in order; the ability to plan well and
statements.

⦁ People Skills: The ability to persuade and motivate people; knowing both how to be a leader and work
manage your time.

in a team.

Increasing Your Potential

Don’t be discouraged from becoming an entrepreneur just because you don’t yet have all the traits and
skills you will need. You can increase your business and entrepreneurial potential by focusing on six
specific areas.
Even if you never become an entrepreneur, paying attention to these areas will help you be more
successful in life.

1-Business Knowledge

Make a habit of reading magazine and newspaper articles on business topics. Use the Internet to
research business subjects. Watch films or television programs about successful entrepreneurs. This can
help you learn more about business. If you know someone who owns a business, discuss the business
with that individual.

2-Financial Skills

Strengthen your math skills by taking a course in accounting, personal finance, or investing. If math is a
difficult subject, ask a teacher to spend a little extra time with you before or after school.
Team up with a friend who is good at math. Play math games or do math homework together.

3-Career Exploration

First, evaluate your strengths and weaknesses. Be as honest as you can about your characteristics
without being too easy or too hard on yourself. Remember, nobody is perfect, but everyone has
something to contribute to the world.

4-Community Awareness

Look for volunteering opportunities in your community. Also, find out if any companies in your area
provide internships where you can get some practical, on-the-job experience. If you know of a particular
problem in your community, consider how you can help improve the situation.

5-Education

Learning is a lifetime occupation, no matter what career you choose. Take advantage of chances to learn
new things, ask lots of questions, and strive to do your best in whatever you do.
6-Relationships

Spend time with people who believe in you and inspire you. Being around positive people will help you
stay positive and accomplish more. People who are negative and complain all the time will influence you
to be the same way.

Why Study Entrepreneurship?

Owning a business isn’t for everyone. But that’s okay because both employees and entrepreneurs are
needed in the world of work. Whether or not you choose to become an entrepreneur, the things you will
learn in this book can benefit you in many ways.

Think Like an Entrepreneur

Thinking like an entrepreneur and being conscious of how to make a business run more successfully can
help you be a better employee. In effect, you can treat someone else’s business as if it were yours.
Employers often promote these kinds of employees, the ones who think entrepreneurially.

Here are three ways to think like an entrepreneur when you are working as an employee:

⦁ Observe. Keep on the lookout for chances to learn new skills and accept new responsibilities. Staying
aware of what goes on around you can help generate new ideas for business growth.

⦁ Listen. Pay attention to what others have to say. Challenges that other employee are facing may give
This includes ideas for new products or services that customers may need or want.

⦁ Think. Instead of complaining about a problem, analyse it. Then suggest possible solutions
your ideas for making business improvements.

Develop a Vision for Your Life

Learning about entrepreneurship often inspires people to develop a vision for their life. A vision is a
“picture” of what you want the future to be.
What kind of life do you want? What things are most important to you?