Characteristics Of Entrepreneurship Development Program

An entrepreneur is a person who undertakes a new business or venture with some potential for profit and involving a certain amount of risk. Entrepreneurship is the act of setting up a business and taking on financial risks with the goal of making profit.

Let us read about some famous entrepreneurs who have succeeded despite odds. They were successful because they had unique ideas and more importantly, they had the necessary talents and skills that made them legendary entrepreneurs. For example, Bill Gates, the founder of Microsoft, and the late Steve Jobs, the founder of Apple, were college dropouts, but the key to their immense success was embedded in their innovative ideas and their ability to persist even during difficult times.

Even Mark Zuckerberg, the founder of Facebook, as well as Larry Page and Sergey Brin of Google can be considered as truly great entrepreneurs Can you guess what do all these legends have in common? They had the vision and the sense of mission that they were going to change the world with their hard work, perseverance, and sheer determination

The Story of Bill Gates

We all know Bill Gates as one of the pioneers of modern computers. He is one of the richest and most influential people in the world today Bill Gates along with his partner Paul Allen founded and built the world’s largest software business, Microsoft, through technological innovation, keen business strategy, and aggressive business tactics.

It will be interesting to know a little more about his early years.

As a young boy, Bill was fond of board games, especially Monopoly and Risk. Bill developed an interest in computers in school and wrote his first computer program as a young teenager While still in high school, Bill, along with some of his friends, wrote a payroll program for a company and a scheduling program for his school .Bill Gates and his friend, Paul, formed a venture called Traf-O-Data while still in high school. They created a computer program that helped to track traffic patterns in Seattle He started his business from the garage in his house. Later, along with Paul Allen, he established Microsoft in 1975.

Entrepreneurship Development

What do you do to perform well in school or to excel in examinations? You join coaching classes or institutes to score well in studies. In addition to academic coaching, many students join English communication courses and personality grooming institutes. The aim is to develop skills to enhance one’s personality and be successful in life. In the same way, to develop and improve entrepreneurial abilities, an individual requires specific training and classroom programmes.

Thus, we can say that entrepreneurship development refers to the inculcation, development, and polishing of entrepreneurial skills in a person to enable him to establish and successfully run an enterprise.

All successful entrepreneurs, like Bill Gates (Microsoft), Warren Buffett (Hathaway), Gordon Moore (Intel), Steve Jobs (Apple Computers), GD Birla, and Jamsetji Tata went through the process of enhancing their skills through early business opportunities and later by sharpening their business skills, understanding the market needs and capitalising on them.

Stages in Entrepreneurship Development Process

How does an entrepreneur go from the beginning stages of an idea to the construction of something real, functioning, and beneficial? An entrepreneur must find, evaluate, and develop an opportunity by overcoming the challenges or obstructions that come in the way of starting new business ventures.

The entrepreneurship development process has five main:

  • Identification and evaluation of the opportunity
  • Development of the business plan (Create a new venture, product, or market)
  • Determination of the required resources
  • Management of the resulting enterprise
  • Change/adapt with time

Factors Affecting Entrepreneurship Growth

Entrepreneurial growth can be seen in areas where the following factors are present:

  • Economic Factors
  • Social Factors
  • Psychological Factors

Economic Factors

Economic environment has direct and immediate influence on entrepreneurship People often think about entrepreneurship when jobs are not easily available or because there is an opportunity. The economic factors that affect the growth of entrepreneurship are:

Capital:– Capital is one of the most important factors for the establishment of an enterprise. An idea rema an idea without capital backing Entrepreneurship activity becomes easier when there is availability funds for investment.

Labour:- Easy availability of the right type of workers helps in the growth of entrepreneurship It is ou quality rather than quantity of labour that influences the emergence and growth of entrepreneurship.

Raw Material:- It is one of the basic ingredients required for production. Without sufficient supply of rav material, no industry can be established or function properly.

Market:-Market comprises potential customers as well as competition Knowledge of customers’ needs and competitors offerings help you to create a product that distinguishes you from the competition, and thus, satisfy customers’ needs.

Infrastructure:- Well developed transportation facilities help to enlarge the market and expand the horizons of business For example, the establishment of post and telegraph system and construction of roads and highways in India considerably helped entrepreneurial activities in the 1850s.

Other Factors:- Other factors, such as institutions, government policies, business schools, and libraries make valuable contributions towards promoting and sustaining entrepreneurship in an economy Th also act as various forums for communication and joint action.

Social Factors

Social factors strongly affect the entrepreneurial behaviour of people. The social environment, in whi people grow, shapes their basic beliefs, values, and norms and are as follows:

Social Mobility:- The term refers to the freedom to move from one caste or socio-economic strata another. There are certain cultural practices and values in every society, which influence the decisions individuals. Dominance of certain ethnic groups in entrepreneurship is a global phenomenon.

Example:-There are some traditional business communities in India such as the Parsis, Marwaris, Khatris Bhatias, Jains, Bohras. Chettiars, Vaishyas, and Baniyas. In these communities, business is more or less hereditary.

Family Background:- Background of a family business also influences entrepreneurship. Youngsters who belong to business families often join their family business. They learn business skills from their elders They often evolve their business according to the changing culture and take it to greater heights.

Example:-Tata, Godrej, Ambani, Hinduja. Birla and Bajaj are some of the well-known business families in India.

Education :-Education enables one to understand the outside world and equips him or her with the basic knowledge and skills to stand on their feet in any society, education plays an important role in inculcating entrepreneurial skills.

Attitude of the Society:- Certain societies are more progressive and encourage innovations and novel ideas of earning a livelihood and encourage young entrepreneurs. Some others do not encourage changes in the established way of life. In such circumstances, entrepreneurship cannot grow.

Cultural Value:- Some socio-cultural groups or business communities are more money-oriented than others. Here, entrepreneurship would be encouraged and praised, and wealth accumulation as a way of life would be appreciated. However, in some other socio-cultural groups, people are easily satisfied with what they have. People from such sections of society do not strive for economic gains and, therefore, lack the motivation to start up a new venture.

Example:-Many families where most of the members have been into government jobs, do not look beyond these jobs in spite of the financial advantages of private/corporate jobs or business. They value the job security of government jobs.

Psychological Factors

Many entrepreneurial theorists have developed theories of entrepreneurship that are based on psychological factors. These factors are as follows:

Need for Achievement:- Need for Achievement refers to the innate drive to aim high and achieve success The presence of this factor makes individuals highly motivated to overcome obstacles, to be successful, and to excel in their chosen fields. This is a very important characteristic that promotes entrepreneurship among individuals.

Withdrawal of Status Respect:- Sometimes social groups experience a loss of status, leading to change in entrepreneurial behavior People who are displaced from their native place due to conflicts or political disturbances and have to migrate to new places, may not continue to remain entrepreneurs and take p paid jobs to earn a living.

Example:-Many Kashmiri Pandit families were forced to leave the Kashmir valley because of communal riots. They left their flourishing businesses in Kashmir. Many of them could not continue as entrepreneurs once they resettled in Delhi and other parts of India

Motives:- Motives or goals of the entrepreneur play an important role in the development of entrepreneurship Besides wealth, entrepreneurs may also seek power, prestige security, and service to society.

Characteristics of Entrepreneurs

There is no age limit for entrepreneurs, they can be youngsters in their teens or mature people in the fifties. They may be male or female, formally educated or self-educated. They can be from any country or background But all entrepreneurs have some characteristics in common. They recognise business opportunities more quickly than other people. They can see potential business opportunities in problem and are not afraid to take risks and bold decisions, and they work hard. They can even foresee risks. They are problem-solvers who have excellent communication skills. They inspire others to follow them.

As a young boy, Bill Gates had a dream to open a company Many people have dreams. How was Bill Gates different from others?

Bill Gates’ success came from a combination of factors. He was an idea man’ who had a business idea which was new to the times. His hard work, intelligence, business sense, and right timing contributed to his success. Bill constantly challenged his employees to work harder and innovate, but he also worked as hard as or even harder than the people who worked for him. Bill used to stay up all night working Once his secretary came in on a Monday morning to find him sleeping on the floor She thought he was unconscious, but he had been up at the weekend and was taking a quick catnap.

Gates was not afraid to take risks. He took a risk when he dropped out of Harvard to start his own company. He also took a calculated risk when he changed Microsoft’s operating system from MS-DOS to Windows He had confidence in himself and his product All these qualities made him one of the most successful entrepreneurs in the world Besides being a brilliant tech guy, Bill is also a smart businessman.

Although every entrepreneur has a unique story, there are a few qualities that are common in all of them that have helped them to achieve success. They all trust themselves, work hard, remain disciplined and focused. Many of the skills shared by successful entrepreneurs can be developed over a period of time through practice and experience.

Some of the key factors to become a successful entrepreneur are:

Willingness to Take Action:- This is the most important factor required by entrepreneurs. Action is something that can lead you to success Without action, you cannot expect to become a successful entrepreneur.

Aptitude:- Aptitudes are natural talents or inclinations for certain types of activities. For example, if you enjoy working on art projects more than solving math problems, then you may have an aptitude for creativity in this case, you will have a good chance of success at an art related business, as you will be working towards your passion.

Similarly, entrepreneurs have the natural virtue of creativity. determination, risk tolerance, and so on. They apply their aptitudes to their business ventures Often their abilities have helped them to excel Both Bill Gates and Steve Jobs had a special aptitude for computers from an early age, and they ventured their expertise into that field.

Some aptitudes that could be useful in an entrepreneurial venture are as follows:

Artistic:- Entrepreneurs can use their artistic talents in different ways For example, they can be singers, musicians, producers of movies or television shows, video game creators, or fashion designers.

Perceptive:- Some people may be more perceptive than others when it comes to understanding other people’s needs, intentions, ideas, or emotions. Perceptive entrepreneurs can define the real problem that people are having in satisfying their needs and wants. For example, counsellors.

Logical:- Entrepreneurs with this aptitude have the ability to quickly apply reason to solve consumer and business problems These people excel as Risk and Business Analysts.

Mechanical:-People with this aptitude quickly understand how machines work and how they could be improved. Such people tend to succeed in businesses like machinery repair and design.

Spatial:- Entrepreneurs with this aptitude are generally architects and interior designers. They can use space in an attractive and economical manner.

Intellectual:- People with this aptitude have a desire to seek knowledge, to plan ahead, and to come up with original ideas.

Vision:- Entrepreneurs can visualise their ambition and continuously work to achieve it. They make vision statements, take business decisions with a goal in mind, and do not get distracted. The vision statements help entrepreneurs or employees to remain focused on the business goals and encourage them to find Innovative ways of increasing productivity and achieving company goals.

Example:-Jamsetji Nusserwanji Tata was an Indian industrialist and entrepreneur who founded the Tata Group, India’s biggest group of industries. The success of Tata Group of industries is the result of his vision and mission. He is regarded as the’ Father of Indian Industry’.

He was an adventurous and ambitious young man who dreamt of building an iron and steel company He was not only a patriot and humanist, but also had unconventional managerial skills, an intuitive business sense, and a sharp mind. He soon became a pioneering entrepreneur, and his ideas laid the foundation of steel and power industries in india The company, which was founded as a trading concern in 1868, presently has over 100 operating companies including Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power. and Tata Chemicals.

He also paved the way for the introduction of technical education, thereby, bringing India to the ranks of industrialised nations. He donated land for a research institute in Bangalore (now Bengaluru) in 1898 He drew up a blueprint for the proposed institute with the support of powerful people like Lord Curzon and Swami Vivekananda to turn it into a reality.

Risk Tolerance:- Risk tolerance is the degree to which an individual can comfortably accept taking chances. Entrepreneurs need to have a high tolerance for risks They take calculated risks If they fail, entrepreneurs are likely to try again.

Confidence:- People who have confidence, believe in their own abilities. They are sure of themselves, and therefore, it is easier for others to believe in them Even if they fail, they know they will succeed the next time. This is a key characteristic of entrepreneurs.

Creativity:- Creativity is the ability to create things Creativity can be in the form of an invention, an innovation, or a marketing or problem-solving strategy A successful entrepreneur is an idea’ person. Entrepreneurs see opportunities everywhere. They find innovative ways of increasing their productivity and achieving company goals.

Perseverance:- Have you ever been so determined to succeed at something that you just kept trying until you got it right? That’s a sign of perseverance. Perseverance is the determination that pushes an entrepreneur to keep going and trying Creating and running a business is hard work it often means long hours, disappointments, and setbacks.

Initiative:- Initiative is the readiness and willingness to start a new enterprise. When an entrepreneur sees an opportunity, he takes an appropriate action Entrepreneurs are self-motivated and willing to take on the leadership role and make themselves sell motivated responsible for the success or failure of a decision.

Integrity:- Integrity is the personal commitment to keep your promises, to do what you say you are going to do An entrepreneur with integrity creates confidence in customers and investors, and as more successful and respected than others.

Optimistic and Future-oriented:- Optimism means to have a positive outlook and nat to give up in difficult situations. Optimism helps in bouncing back after a failure. For an entrepreneur, it is an excellent personal quality For entrepreneurs, such a thought process leads to novel ideas for new products, services, or businesses having a greater chance of success.

Flexibility and Willingness to Change Quickly:- Flexibility is the quality of changing oneself according to new conditions. Entrepreneurs have an open mind and are always ready to adopt new things in the market and economy. They are prepared to change, to get the maximum benefits out of the existing opportunities and threats in the business environment. They always approach things with an open mind and are willing to change course, if they need to.

Role of Entrepreneurship

What is the importance of entrepreneurship in society?

Entrepreneurship is beneficial for society in three ways-economic, psychological, and society.

Economic Benefits

  • Utilises resources (eg. human resources)
  • Brings about regional development
  • Improves the economy of a country
  • Generates employment

Psychological Benefits

  • Instils a drive for achievement
  • Develops confidence
  • Increases motivation

Social Benefits

  • Helps reduce unemployment
  • Improves socio-economic status
  • Satisfies consumer need

Rewards of Entrepreneurship

  • Being the boss
  • Doing what you enjoy
  • Building up an enterprise
  • You do what you believe in
  • There is excitement at work
  • Having the opportunity to be creative
  • You can set your own schedule
  • You become a business leader

Entrepreneurs are national treasures. They create wealth, jobs, opportunities, and bring prosperity to the country. They are the most significant people in a market economy, and there is always the need for more in any society As an entrepreneur, your success is vital to the success and prosperity of many around you.

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