Qualities of an entrepreneur-jpi
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CHARACTERISTICS OF AN ENTREPRENEURJ.ILANGUMARANHOD i/c Mech(RAC) PACR POLYTECHNIC COLLEGE RAJAPALAYAM 626 108
WHO IS AN ENTREPRENEUR?An entrepreneur is someone who has an original idea and is able to change that idea into a business opportunity and make it work One who starts his own business One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them2
What skills are required by an effective entrepreneur? Strategic skillsAn entrepreneur must have a vision for the future. He/she must be able to see the bigger picture and know where he/she is going with everything. Setting clear objectives and effective strategies are essential for running a business successfully.
Management skillsA manager/entrepreneur ensures that work is done and completed successfully by taking responsibility for the following tasks: Planning The entrepreneur decides what has to be done. He/she decides what tasks need to be performed in order to achieve the businesss objectives. Planning allows the entrepreneur to anticipate the future and avoid future failures. It is a roadmap for proper management. Planning may be tedious, but in the long-term it saves time, money and effort. The entrepreneur is responsible for the planning of the whole business.5
Organising This means that the entrepreneur has to decide how the plan will be implemented. The available resources will have to be divided into different areas. Leading (activating) The entrepreneur decides when things should be done. Control The entrepreneur ascertains whether the tasks have been carried out and how effective they are.6
Human relations skills The entrepreneur needs to have the ability to manage people as well. He/she has to build good relationships with all workers and needs to know who to employ in his/her business.
Financial skillsThe success of a business is measured by the profit it makes. It is essential that the entrepreneur has knowledge about managing income and costs. The long-term future success of the business is also determined by the type of investments the business makes and how successful the entrepreneur manages those investments.
Marketing skillsThe challenge in marketing is that the entrepreneur must know how to promote and advertise his/her business and products. It is essential for him/her to have good knowledge about the market and what things the customers want and prefer.
The success of the business is determined by how effective the research that has been conducted is and how well the entrepreneur provides for the needs of the target market.9
Characteristics of an entrepreneur The entrepreneur has big dreams and a clear vision of how he/she wants to make that dream a reality. They are very creative and always think of new, interesting ideas. They are very enthusiastic about their ideas, have a positive outlook on life and are eager to make a success of their business. They take calculated risks and are willing to loose money if their ideas dont work immediately. They are flexible and willing to adapt to a changing business environment. They have a high degree of competence and a very strong will to succeed in their actions.10
HE HAS THE Desire for responsibility Preference for moderate risk risk eliminators Confidence in their ability to succeed Desire for immediate feedback High level of energy Future orientation serial entrepreneurs Skilled at organizing Value achievement over money11
Am I an entrepreneur?Respond to the statements that follow, being as honest as possible
To establish if someone is well-suited to become an entrepreneur
Benefits of EntrepreneurshipThe opportunity to: Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be recognized for your efforts Do what you enjoy and to have fun at it16
Drawbacks of Entrepreneurship Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established
High levels of stress Complete responsibility Discouragement
Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyles E-commerce and the World Wide Web International opportunities18
Ten Deadly Mistakes of Entrepreneurs1. 2. 3. 4. 5. 6. 7. 8. 9. 10.19
Management mistakes Lack of experience Poor financial control Weak marketing efforts Failure to develop a strategic plan Uncontrolled growth Poor location Improper inventory control Incorrect pricing Inability to make the entrepreneurial transition
Common Mistakes of Entrepreneurs
Avoiding the Pitfalls of Small Business Failure Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Keep in tune with yourself25
Causal Logic is predictiveTo the extent you can predict the future, you can control it
Control of outcomes achieved through
accurate predictions, clear goals, and avoiding or protecting oneself against the unexpected26
Example of Causal Logic
From cooking a meal . . .
. . . To building a restaurant Or something else . . .
Why Business? Whats the motivation? Independence Not wanting to work for anyone else Desire to be ones own boss For men, money is the second reason for starting a new venture For women, job satisfaction, achievement, opportunity, and money are the motivations
P. R. Ramasubrahmaneya RajhaChairman & MD, Madras Cement LimitedA man, who has seen life from close quarters and has risen from the lowest rung to the highest, needs no management lessons. For, he has continuously learnt to manage people. And P. R. Ramasubrahmaneya Rajha, Chairman & MD, Madras Cement Limited is one individual who has done this all his life. Known for his refined mind and an eye on the horizon of the global corporate world, Rajha has been playing a cardinal role in bolstering the image of the Indian corporate chiefs in the global scenario by infusing fresh blood into it. A true visionary, Rajha has been riding high in the business world and nourishes a dream to join the bandwagon of the global players in a short timeframe.47
In fact, this global man has been steering the Madras Cement Limited for decades. The company which is engaged in the production of cement, wind power generation and dry mortar has, under the stewardship of Rajha has reached new heights of professional excellence. A man of many qualities, Rajha has also been steering the course of Ramco Group, founded in 1938, which is a well-diversified industrial conglomerate. The fact that Rajha is a corporate chief of high caliber has helped the cement company with a turnover which has multiplied ten-fold within a very short time. His visionary approach has helped the company become one of India's most respected business houses, achieving international recognition for its quality products and services. Known for his sagacity and generosity, Rajha believes that efficiency and a team of dedicated workers have made the Group one of the most efficiently managed Indian business houses with a track record of high and consistent profitability. It is one reason that the company under Rajha has been able to pay rich dividends to its shareholders on a consistent basis.48
Entrepreneurship Can Only Be Learned By DoingWe should believe in what is commonly called clinical teaching: learning by being immersed in real problems. Surgeons learn by watching others perform operations and then by actually operating while under supervision. Entrepreneurship should be learned similarly. One way you can learn the skills is to network in your local entrepreneur clubs and try to find mentors.49