Enterpreneurship Development

Entrepreneurship Development

Lesson 02 :Characteristics of an Entrepreneur

Essentials of a successful entrepreneur

1. Setting objectives: First step – after deciding the objectives, the ways and means to achieve the objective can be determined.
2. Production enterprise: ex. Product to be produced. Whether the whole product or part of it.
   Service enterprise: nature and type of service to be provided. Every person in the business concern should know the aims and goals of the business.
3. Proper planning: After determining objectives, work should be planned, both for the present and future.
   Present –Planning involves forecasting, and laying down of the course of action. What is to be achieved and how it is to be achieved.
   Future—uncertainties are to be estimated and possible course of action should be decided as it helps to prepare for future uncertainties.
4. Sound organization: Organization is an arrangement by which tasks are assigned to employees so that their individual efforts contribute effectively to the achievement of clearly defined purposes.
   Duties and responsibilities should be well defined; supervisors and subordinates should know their roles in the enterprise.
5. Proper financial planning: finances necessary and possible sources should be decided at the time of starting an enterprise. Proper financial planning to see that adequate funds are raised at minimum cost. Neither more or less hampers work, bad for business. Proper financial plan is necessary for providing funds for present needs and future developmental plans. Financial plan will determine:
   1. The needs of business capital
   2. Sources for collecting funds and
   3. Administration of capital structure
6. Location and lay out of plant: important decision. Location should be in a place where all factors of production are available at lowest cost like raw material, power, labour market, layout of the plant, setting up of machinery etc. which are systematic resulting in smooth flow of production.
7. Marketing system: more important than production. Knowledge of marketing management is very essential for earning profits. Channels of distribution should be decided whether it should be direct sale to customers or through wholesalers.
8. Research: update knowledge of changing technologies, machinery, marketing of goods according to consumer needs and preferences. Research and development must be integrated into the business, otherwise it becomes difficult to stay in business for longer periods.
9. Dynamic leadership: an entrepreneur plans, organizes, coordinates and directs various activities for achieving business objectives. It is possible only with dynamic leadership. An entrepreneur should have foresight, initiative, courage and aptitude for change which leads to success of the enterprise that shows efficiency of management.