Meaning, definitions, characteristics and challenges facing entrepreneurs and entrepreneurship in solutions.
An entrepreneur is derived from the French word entreprendre meaning to undertake. An entrepreneur now is a person who undertakes to organize, manage, and assume the risks of a business. Nowadays entrepreneurs are doing a lot of things thus it is necessary to broaden the meaning.
An entrepreneur is an aggressive catalyst for change in the world of business defined as a person who is an innovator, developer who organizes and seizes opportunities and convert those opportunities into marketable ideas, add value through time, efforts, money or skills and assume the risks of the competitive marketplace to implement these ideas and realize the rewards from these efforts.
Therefore an entrepreneur is a person who creates, develop and manage a business by utilizing the available opportunities and resources to assume the risks and be able to cultivate the rewards. Due to the long time changes, innovations and improvements in entrepreneurship, entrepreneurship is, therefore, a dynamic process of creating, developing and managing businesses and assuming risks in terms of equity, time and career. It involves vision, change, creation and implementation of new ideas and creating possible solutions. It starts with:-
-Willingness to take calculated risks ( in terms of time, equity and career)
- Ability to formulate effective venture team
- Fundamental skills of building a strong business plan and finally the vision to recognize opportunities on which others see contradiction, confusion or chaos.
Types of entrepreneurs.
Having looked in detail at the meaning and definitions of entrepreneur and Entrepreneurship in general, let us now look at the types of entrepreneurs. There are four types of entrepreneurs that we will look at in detail and so we will determine which group of entrepreneurs you should be.
What are the 4 types of entrepreneurs?
Types of entrepreneurs are listed in the following main categories:
(i) Small Business Entrepreneurs :
These are creative entrepreneurs and innovators who have decided to use their potential in designing small businesses. Entrepreneurs in these businesses are such as a hairdresser, grocery stores, travel agents, consultants, carpenters, plumbers, electricians, etc These kinds of entrepreneurs are required to consider potential factors even before starting entrepreneurship that could improve their innovation and creativity. For them, profits would feed their families and not make a $ 100 million business or take over the industry. They finance their business by taking out small business loans or loans from friends and family.
(ii) Start-Up Entrepreneurs;
These start-up entrepreneurs start a business knowing that their vision can change the world. They attract investors who think and encourage people who think outside the box, that is, with big visions. They study and do effective research and their study focuses on improving businesses and experimental models, therefore, they employ better and better staff. They need more capital for their projects such as oil capital and repatriation of their project or business.
(iii) Corporate Entrepreneurs;
These large companies have described the life cycle. Most of these companies grow and maintain by providing new and innovative products that revolve around their main products. Changes in technology, customer preferences, new competition, etc., create pressure on a large company to create a new product and sell it to a new set of customers in a new market. To cope with the rapid technological change, existing organizations, buy new businesses or try to build the product internally. A good example of these companies in East Africa is the Bakhresa group, this company tries to create new opportunities now and then.
(iv) Social Entrepreneurs;
These types of entrepreneurs focus on creating products or services that address social needs and problems. Their only motto and goal are to work for the community and not to make a big profit as a reward for themselves. Having looked at the type of Entrepreneurs let us now look at the main characteristics of successful entrepreneurs.
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