Characteristics of Entrepreneurs

People may lack the personality and skills necessary for successful entrepreneurship. There are some general
characteristics and skills that many successful entrepreneurs have:
Problem-solving: Entrepreneurs often start their businesses after identifying a problem and then coming up with a way
to address it. Entrepreneurs are also able to figure out how to solve problems that will occur during the development of
the business.
Innovation: Entrepreneurs are innovators, and are often engaged continuously in the process of conceiving new
products and services, renewing and improving current offerings, and developing new business processes.
Risk-taking: Entrepreneurs are not risk-averse. They are willing to risk their time, money and even their reputation to
get the business started and take their products or services to market. Entrepreneurs are also willing to take risks even
after they establish a business, developing new products and approaches that can grow their businesses.
Contrariness: Entrepreneurs are often people who are eager to question why and how things are being done – even if
these processes are clearly "industry-standard." This doesn't mean an entrepreneur should ignore industry best practices,
but the entrepreneur is also willing to challenge these practices if she believes that there is a better way to do them.
Persistence: Entrepreneurs are persistent. They aren't easily discouraged and are willing to work through
discouragement and challenges. Entrepreneurs are willing to attend trade shows, meet with bankers, call on clients and
do what it takes to get the business started, and then to make it successful.
Leadership: Successful entrepreneurs are strong leaders. Leadership is an essential entrepreneurial skill, as the
entrepreneur will need to be able to cultivate trust and support from the people who join his business as managers and
workers. Many new businesses are cash-poor and experience significant challenges – but a
good leader can inspire loyalty in workers who may not yet be receiving high wages, as well as in employees who are
facing roadblocks in their efforts to build the company.
 Functions of Entrepreneurs
The following points highlight the top five functions of an entrepreneur. The functions are:
1. Decision Making
2. Management Control
3. Division of Income
4. Risk-Taking and Uncertainty-Bearing
5. Innovation.

1. Decision Making: The primary task of an entrepreneur is to decide the policy of production. An entrepreneur is to
determine what to produce, how much to produce, how to produce, where to produce, how to sell and so forth. Moreover,
he is to decide the scale of production and the proportion in which he combines the different factors he employs. In
brief, he is to make vital business decisions relating to the purchase of productive factors and to the sale of the finished
goods or services.
2. Management Control: Earlier writers used to consider the management control one of the chief functions of the
entrepreneur. Management and control of the business are conducted by the entrepreneur himself. So, the latter must
possess a high degree of management ability to select the right type of persons to work with him. But, the importance
of this function has declined, as business nowadays is managed more and more by paid managers.
3. Division of Income: The next major function of the entrepreneur is to make necessary arrangement for the division
of total income among the different factors of production employed by him. Even if there is a loss in the business, he is
to pay rent, interest, wages and other contractual incomes out of the realised sale proceeds.
4. Risk-Taking and Uncertainty-Bearing: Risk-taking is perhaps the most important function of an entrepreneur.
Modern production is very risky as an entrepreneur is required to produce goods or services in anticipation of their
future demand.
Broadly, there are two kinds of risk which he has to face. Firstly, there are some risks, such as risks of fire, loss of goods
in transit, theft, etc., which can be insured against. These are known as measurable and insurable
risks. Secondly, some risks, however, cannot be insured against because their probability cannot be calculated
accurately. These constitute what is called uncertainty (e.g., competitive risk, technical risk, etc.). The entrepreneur
undertakes both these risks in production.
5. Innovation: Another distinguishing function of the entrepreneur, as emphasised by Schumpeter, is to make frequent
inventions — invention of new products, new techniques and discovering new markets — to improve his competitive
position, and to increase earnings.
 Types of Entrepreneurship
Classic entrepreneurs: The so-called "classic" entrepreneur is someone who observes a gap in the market or takes note
of a business or consumer need, and develops a company that addresses the deficit or the need. In some cases, the
entrepreneur may also be an inventor, although some classic entrepreneurs will team up with someone who has invented
a product. In many cases, the classic entrepreneur starts the business and continues to own and manage it for many years.
Serial entrepreneurs: A serial entrepreneur enjoys getting businesses started, and then sells the business to another
person or company. This type of entrepreneur is typically somebody who is excited about starting something new and
taking risks. Once the business is doing well, however, this entrepreneur wants to move on to another new and different
challenge.
Social entrepreneurs: Social entrepreneurs incorporate social conscience with business. While their businesses may
still be for-profit, there is typically a strong mission statement connecting the business with a social cause. For example,
a social entrepreneur may import fair trade goods for resale while also educating the public about the importance of
activism in the area of sustainably and responsibly sourcing products.
 Comparison Between Entrepreneur and Manager

BASIS FOR COMPARISON ENTREPRENEUR MANAGER

Meaning Entrepreneur refers to a person Manager is an individual who

who creates an enterprise, by takes the responsibility of
taking financial risk in order to controlling and administering the
get profit. organization.
Focus Business start-up On-going operations
Primary motivation Achievement Power
Approach to task Informal Formal
Status Owner Employee
Reward Profit Salary
Decision making Intuitive Calculative
Driving force Creativity and Innovation Preserving status quo
Risk orientation Risk taker Risk averse
 Comparison Between Entrepreneur Vs Intrapreneur

BASIS FOR ENTREPRENEUR INTRAPRENEUR

COMPARISON

Meaning Entrepreneur refers to a person who set up Intrapreneur refers to an employee of the
his own business with a new idea or concept. organization who is in charge of undertaking
innovations in product, service, process etc.

Approach Intuitive Restorative

Resources Uses own resources. Use resources provided by the company.

Capital Raised by him. Financed by the company.

Enterprise Newly established An existing one

Dependency Independent Dependent

Risk Borne by the entrepreneur himself. Taken by the company.

Works for Creating a leading position in the market. Change and renew the existing organizational
system and culture.
Reasons to Become an Entrepreneur Entrepreneurial efforts are like biological experiments in nature: Many variations
are tried, but only a small percentage of those go on to thrive. You, however, have an advantage over nature. As an
entrepreneur, you can set up your experiment with forethought. Entrepreneurs work under the constraints of their
environment – the political economy.

Advantages of Entrepreneurship

1. Learning to See Possibilities Everywhere

I. When you have to rely on yourself and your III. This doesn’t mean they get involved in
imagination in order to generate income, this everything that comes their way. They must
awareness goes with the territory. also learn the skill of discernment – which is
also of tremendous value.
II. An entrepreneur has to develop the skill and
train his or her mind to stay open and receptive IV. But whatever the case, being open to many
to potential ideas and possibilities. possibilities gives entrepreneurs a tremendous
amount of choice.

2. Defining Your Income

I. Who decides how much you’re getting paid? VI. Plus, the only two factors that determine and
define your income are the market forces and
II. Chances are, there are several factors at play you.
including your boss, your company’s financial
budget, the board of directors, the economy, VII. Even though the market can be a harsh judge of
etc. your entrepreneurial skills, once you pay
attention to, and understand the market’s
III. These factors also determine whether you’ll be signals, following the current marketing trends,
staying at your job. you’ll be able to make informed decisions to
keep your business moving in the right
IV. So even if you’re working really hard and
direction.
giving 110%, your salary might not reflect it.
V. But when you’re an entrepreneur, you create the
relationship between your efforts and your
income.

3. Flexibility in Your Schedule

I. There are morning people and night owls and arises. You are the master of your scheduling
others somewhere in between. domain.
II. As an entrepreneur you can ditch the rigid IV. The power of creating your own schedule isn’t
schedule. just liberating, but it could be healthier too.
III. So if you’re a night owl, you can start work at
V. Entrepreneurs focus on results rather than on
4pm. If you love the morning, maybe works
hours worked. And one study found that a
starts at 4am. Take a break when the need
results-based work atmosphere leads to greater
mental and physical wellness.
4. Enjoying Your Work

I. Even though, as an entrepreneur, you can create II. But unlike those energy-draining hours spent
your own schedule, it doesn’t necessarily mean working overtime for someone else, it will be
there won’t be long hours. long hours spent working toward something
you love. And you will reap the rewards.

5. Learning to be in the Moment

I. How much of your day at work is spent IV. Of course there will be unexpected
counting the hours and minutes before situations you’ll have to handle. But in
your lunch break or the end of the day? learning how to handle these situations,
you get the added benefit of being more
II. One of the great advantages of present and learning how to live in the
entrepreneurship is being able to moment.
abandon the predictable and
monotonous schedule of a traditional V. Is It Time for You to Be Your Own
office job. Boss?
III. Instead, you plan and schedule your
day, set regular goals and work to
achieve them.
 Drawbacks of Entrepreneurship
Although managing a business offers numerous benefits and bestows many opportunities, anyone planning to take a
plunge into the world of entrepreneurship must be aware of its potential drawbacks. Entrepreneurship is a strict no for
people who fancy the security of a fixed monthly paycheck, paid vacations, and benefit packages, among others. Some
of the major disadvantages of entrepreneurship are as follows –

1. Risk of Loss — Business failure can ruin an

entrepreneur financially, and yes, the failure 7. Five factors will be key to entrepreneurial
rate of small business is relatively high when success: creativity, tolerance for risk,
compared to established businesses. responsiveness to opportunities, leadership and
Entrepreneurs should ask themselves if they are the ability to take advantage of the rights
prepared to cope psychologically with the afforded to you.
failures associated with entrepreneurship.
8. Creativity and Accumulation of Ideas - Do
2. Uncertainty of Income — Starting and not be dissuaded by the challenge to be creative.
running an enterprise provides no guarantee of You need not be the original wheel creator to
earning money. Many small businesses barely improve upon a stone cylinder. By standing on
earn enough to give the owner adequate the shoulders of giants, you can take existing
income. During the initial days of a start-up, a ideas and make small improvements upon
business often cannot provide an attractive them.
salary for its owner and meet all its financial
obligations. If you are willing to live on your 9. Your best ideas may come to you as you are
savings, then entrepreneurship is for you. falling asleep or while you are taking a shower.
Recognize when you have a fresh idea and do
3. Lower Quality of Life in Initial Stage — not let them get away from you. Write them
Long hours and hard work are needed to launch down! Not every idea has to be a home run. By
a business but this can take their toll on the life accumulating your ideas, you will be able to
of the entrepreneur. Entrepreneurs often find dis-till the great ones from the rest and be ready
their personal roles diverging and taking a to run with the best.
backseat. Owning a business requires to make a
lot of sacrifices. As a result, personal life 10. Risk Tolerance and Taking Advantage of
suffers. Opportunity - Rewards rarely come without
risk. Your ability to take advantage of an
4. High Levels of Responsibility — opportunity will depend, in part, on your
Entrepreneurs often have to take decisions tolerance for risk. As the founder of a start-up,
beyond the domain of their knowledge as many investors will expect you to have a vested
of them have difficulty finding advisers. When interest in your business. If you will not bet on
there is no one to ask, the pressure can build your idea, why should anybody else?
quickly. The realisation of making the right
decisions can have an effect on some people. 11. If you cannot afford the risk, financially or
emotionally, then you might make decisions
5. High Stress Levels — Starting and managing a that are too tepid to be successful. To do well,
business on one hand may seem highly an entrepreneur needs the strong sense of self-
rewarding but on the other, it can be extremely efficacy to believe the risk will be
stressful as well. Apart from significant surmountable.
investments and leaving a secure monthly
income, entrepreneurs constantly thrive under
the stress of failure leading to financial ruin. In 12. Responsiveness to Opportunity - Opportunity
addition, the turbulences in the personal lives can leave quickly. With the internet, the spread
also add to the stress levels. of information and ideas has led to deeper,
faster competition to be the first mover. The
6. Long Working Hours — Start-ups often ability to respond to the market and new
demand long working. In many start-ups, the business opportunities can be the difference
demands of owning a business make achieving between a successful entrepreneur and a failed
a balance between work and life difficult for business model. To be responsive, an
entrepreneurs. It becomes a full-time entrepreneur must have the flexibility of mind
commitment where there are always some and resources necessary to see and take
things that need to be done. advantage of new and upcoming possibilities.
 Learning from your mistakes and those of
others to implement change can keep 14. Intellectual Property Rights - Intellectual
businesses afloat. Calcifying rigidity, on the property laws can provide you with exclusive
other hand, can turn a start-up into dust. business rights to your ideas. If you do not
protect your ideas, they may be copied –
cheaply. Once an idea is in the public domain,
13. Leadership and Inspiring Others - It is up to it may no longer be possible to use that idea as
the entrepreneur to marshal assets. Leaders are a competitive advantage. Society values ideas
challenged with taking possibilities and turning being shared.
them into inspiring visions for others. You will 15. In exchange for sharing ideas, governments
inevitably have to sell either your idea or your provide limited monopolies that will allow you
product to begin your entrepreneurship. It will to capitalize on them for a period, making up in
be up to the entrepreneur to take the idea and part for the costs you have incurred in research
turn it into actions and products to capitalize on and development. Intellectual property
the opportunity. Leadership can come in many professionals can aid you in seeking such rights.
forms, but it is nevertheless essential to
entrepreneurship. You must take the lead for
your ideas to come to fruition.
 Types of Entrepreneurship
Classic Entrepreneurs: The so-called "classic" entrepreneur is someone who observes a gap in the market or takes
note of a business or consumer need, and develops a company that addresses the deficit or the need. In some cases,
the entrepreneur may also be an inventor, although some classic entrepreneurs will team up with someone who has
invented a product. In many cases, the classic entrepreneur starts the business and continues to own and manage it
for many years.

Serial Entrepreneurs: A serial entrepreneur enjoys getting businesses started, and then sells the business to
another person or company. This type of entrepreneur is typically somebody who is excited about starting
something new and taking risks. Once the business is doing well, however, this entrepreneur wants to move on to
another new and different challenge.

Social Entrepreneurs: Social entrepreneurs incorporate social conscience with business. While their businesses
may still be for-profit, there is typically a strong mission statement connecting the business with a social cause.
For example, a social entrepreneur may import fair trade goods for resale while also educating the public about
the importance of activism in the area of sustainably and responsibly sourcing products.
 Introduction to Laws Relating to IPR in India

IPR - Intellectual Property Rights (IPR) are legal rights that protect creations of the mind such as
inventions, literary and artistic works, symbols, names, images, and designs.

Aim: To encourage innovation, creativity, and fair competition while safeguarding creators’ interests.

Major Laws Relating to IPR in India

1. Copyright Act, 1957

o Protects: Literary, artistic, musical works, films, computer software.
o Duration: Lifetime of author + 60 years.
2. Patents Act, 1970 (amended in 2005)
o Protects: New inventions, processes, products.
o Duration: 20 years from filing.
3. Trademarks Act, 1999
o Protects: Brand names, logos, slogans, symbols.
o Duration: 10 years (renewable).
4. Designs Act, 2000
o Protects: Novel industrial designs and aesthetic appearance.
o Duration: 10 years (extendable by 5 years).
5. Geographical Indications (GI) of Goods Act, 1999
o Protects: Products with geographical origin & unique qualities.
o Examples: Darjeeling Tea, Chanderi Sarees, Jharkhand’s Sohrai & Kohbar paintings.
6. Biological Diversity Act, 2002
o Protects: Access to biological resources & knowledge of local communities.
7. Semiconductor Integrated Circuits Layout-Design Act, 2000
o Protects: Circuit designs in chips and microelectronics.

Special Features of Indian IPR Regime

 India is a member of WTO-TRIPS Agreement.

 Controlled by the Office of the Controller General of Patents, Designs & Trademarks
(CGPDTM).
 Balances rights of creators with public interest (e.g., compulsory licensing in patents for medicines).
 Decision Making and Problem Solving

Decision Making - The process of selecting the best possible option from available alternatives to
achieve an objective. Important in management, governance, and daily life.

Steps in Decision Making (with Problem Solving Integration)

1. Problem Identification
o Recognize and define the problem.
o Example: Decline in rural healthcare participation.
2. Information Gathering
o Collect relevant data, facts, and opinions.
o Example: Survey patients, analyze hospital records.
3. Identifying Alternatives
o List possible courses of action.
o Example: Awareness campaigns, mobile clinics, telemedicine.
4. Evaluating Alternatives
o Assess pros, cons, costs, risks, and benefits of each option.
5. Choosing the Best Option
o Select the most feasible and effective solution.
6. Implementation
o Put the chosen solution into action.
7. Evaluation & Feedback
o Monitor outcomes, review effectiveness, and make improvements.

Simple Words:

 Problem Solving = Finding solutions to issues.

 Decision Making = Choosing the best solution among alternatives.