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Page 1: Qualities of an entrepreneur-jpi

CHARACTERISTICS

OF AN ENTREPRENEUROF AN ENTREPRENEUR

J.ILANGUMARANHOD i/c Mech(RAC)

PACR POLYTECHNIC COLLEGE

RAJAPALAYAM – 626 108

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An entrepreneur is someone who has an original idea

and is able to change that idea into a business

opportunity and make it work

WHO IS AN ENTREPRENEUR?

One who starts his own businessOne 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 them

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What skills are required by an

effective entrepreneur?

• Strategic skills

An entrepreneur must have a vision for the future. He/she must be able to see 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.

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•Management skills

A manager/entrepreneur ensures that work isdone and completed successfully by takingresponsibility for the following tasks:

– Planning

The entrepreneur decides what has to be done.He/she decides what tasks need to beperformed in order to achieve the business’sperformed in order to achieve the business’sobjectives. Planning allows the entrepreneur toanticipate the future and avoid future failures. Itis a roadmap for proper management. Planningmay be tedious, but in the long-term it savestime, money and effort. The entrepreneur isresponsible for the planning of the wholebusiness.

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– Organising

This means that the entrepreneur has to decidehow the plan will be implemented. The availableresources will have to be divided into differentareas.

– Leading (activating)

The entrepreneur decides when things shouldThe entrepreneur decides when things shouldbe done.

– Control

The entrepreneur ascertains whether the taskshave been carried out and how effective theyare.

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• Human relations skills

The entrepreneur needs to have the

ability to manage people as well.

He/she has to build good relationships He/she has to build good relationships

with all workers and needs to know

who to employ in his/her business.

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• Financial skills

The 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.

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• Marketing skills

The challenge in marketing is that theentrepreneur must know how to promote andadvertise his/her business and products. It isessential for him/her to have good knowledgeabout the market and what things the customerswant and prefer.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.

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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.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 don’t 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.

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• Desire for responsibility

• Preference for moderate risk – risk eliminators

• Confidence in their ability to succeed

• Desire for immediate feedback

HE HAS THE

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• Desire for immediate feedback

• High level of energy

• Future orientation – serial entrepreneurs

• Skilled at organizing

• Value achievement over money

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HE IS

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Am I an entrepreneur?Respond to the statements that follow, being as honest

as possible

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To establish if someone is well-suited to

become an entrepreneur

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Benefits of Entrepreneurship

The opportunity to:

• Create your own destiny

• Make a difference

• Reach your full potential

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• 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 it

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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

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�� High levels of stressHigh levels of stress

�� Complete responsibilityComplete responsibility

�� DiscouragementDiscouragement

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Feeding the Entrepreneurial Fire

• Entrepreneurs as heroes

• Entrepreneurial education

• Demographic and economic factors

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• Shift to a service economy

• Technological advancements

• Independent lifestyles

• E-commerce and the World Wide Web

�� International opportunitiesInternational opportunities

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Ten Deadly Mistakes of Entrepreneurs

1. Management mistakes

2. Lack of experience

3. Poor financial control

4. Weak marketing efforts

5. Failure to develop a strategic plan

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5. Failure to develop a strategic plan

6. Uncontrolled growth

7. Poor location

8. Improper inventory control

9. Incorrect pricing

10. Inability to make the “entrepreneurial

transition”

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Common Mistakes of Entrepreneurs

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Avoiding the Pitfalls of Small Business Failure

• Know your business in depth• 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 yourself

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Causal Logic is predictive

To 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 unexpected

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Example of Causal Logic

From cooking a meal . . .

. . . To building a restaurant

Or something else . . .

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Why Business? What’s the motivation?

• Independence

• Not wanting to work for anyone else

• Desire to be one’s own boss

• For men, money is the second reason for • For men, money is the second reason for starting a new venture

• For women, job satisfaction, achievement, opportunity, and money are the motivations

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P. R. Ramasubrahmaneya RajhaChairman & MD, Madras Cement Limited

A man, who has seen life from close quarters and has risen from the lowest rung to A 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.

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• 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 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

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Entrepreneurship Can Only Be

Learned By Doing

We should believe in what is commonly

called clinical teaching: learning by being

immersed in real problems. Surgeons learn

by watching others perform operations andby 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.

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QUESTIONS ?QUESTIONS ?

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