Posts
2nd
M.A ENGLISH
3rd
SEMESTER
SEC
II - ENTREPRENEURSHIP DEVELOPMENT
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UNIT |
TOPICS |
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II |
Characteristics of an entrepreneur Types of entrepreneurs: business, use
of technology, motivation, growth, stages New generations of entrepreneurship vs social Entrepreneurship. |
Characteristics of an Entrepreneur
There are certain characteristic features which make an entrepreneur successful in his venture. They have been briefly discussed hereunder:
1. Hard Work:
An entrepreneur who is prepared to put in a lot of effort from the start of his
business will succeed. When an entrepreneur is persistent, hard-working, and
persistent, he can bring his business back from the brink of failure.
2. Sincerity
and Business Acumen: Sincerity and business acumen are synonymous with
intelligence and skill. Once more, the genuineness of the individuals behind a
company determines its success. A sincere person will go to great lengths to
ensure the success of his endeavour.
3. Prudence: A
prosperous businessman needs to use caution in all of his interactions. He
should be able to figure out the venture's specifics from every angle, evaluate
its advantages and disadvantages, and take the appropriate action to avoid the
latter.
4. Achievement
desire: Since all other traits stem from this desire, achievement motivation is
the most crucial quality of an entrepreneur. He must be driven to accomplish
ambitious corporate objectives.
5. Independence
and self-reliance: A successful businessperson dislikes being led by others and
prefers to follow his own rules and regulations. By taking charge of his own
destiny and holding himself accountable for every choice he makes, he
demonstrates self-reliance. He dislikes working for other people.
6. Extremely
Optimistic: A successful businessman is never deterred by the issues of the
present and is constantly hopeful about the future. He consistently anticipates
positive circumstances for his company.
7. Sharp
Foresight: To forecast the future business climate, an entrepreneur needs to
possess sharp foresight.
8. Ability to
Plan and Organize: An entrepreneur is a strong proponent of organizing and
planning. Above all, he must be able to assemble the disparate resources needed
to launch a new business.
9. Risk Taking:
Since an entrepreneur is not a gambler, he should refrain from taking on
significant risk. He must, however, enjoy a situation with a modest level of
risk—one that is thrilling but still has a respectable possibility of success.
10. Maintenance of Secrecy: A prosperous businessman needs to be able to protect and preserve
all of his trade secrets. His company will undoubtedly fail if trade
competitors learn about his trade secrets. He should therefore choose his
subordinates carefully.
11. Maintenance of Public Relations: An entrepreneur's success
or failure is greatly influenced by the degree of maintenance of human relations or public relations. To keep his clients' support and patronage, a successful businessman needs to maintain friendly
relationships with them. In
order to inspire his staff to reach greater levels of productivity, he must
also keep cordial interactions with them.
Types of entrepreneurs: business, use of technology, motivation, growth, stages
There are many different types of entrepreneurs, and each one has a unique set of objectives, reasons for doing business, and strategies for doing business. It is possible to gain insights into the behaviour, strategies, and various ways in which entrepreneurs shape industries by gaining an understanding of the various types of entrepreneurs. These types can be classified according to a variety of factors, including their business focus, their utilisation of technology, their motivation, their outlook on growth, and the stages of development that their ventures are currently in.
Business-Oriented Entrepreneurs:
Entrepreneurs who are primarily focused on business are those who are primarily concerned with the establishment and operation of businesses with the goals of achieving profitability and sustainability. The majority of the time, these individuals launch businesses with the intention of establishing a reliable and profitable operational structure. Their primary motivation is to achieve financial success, and they typically look for opportunities in which they can provide goods or services that satisfy the requirements of the market. In many cases, they take a pragmatic approach, concentrating on business models that are capable of scaling over time, regardless of whether they are operating in the retail, manufacturing, service, or other industries.
Technology-Oriented Entrepreneurs:
Entrepreneurs who are focused on technology make use of cutting-edge technology in order to develop novel solutions, products, or services. An entrepreneur who falls into this category
frequently finds employment in fields such as information technology,
biotechnology, and other tech-driven
industries. The majority of the
time, they are highly creative and
focused on finding solutions to problems by utilising new or advanced
technologies. Additionally, their businesses are frequently more concerned with
innovation than they are with immediate financial return. Typically, these
entrepreneurs are the ones who are responsible for ground- breaking
innovations, such as new software,
devices, or applications that have the potential to disrupt existing consumers'
markets.
Motivation-Based Entrepreneurs:
In the world of entrepreneurship, motivationally driven
entrepreneurs are individuals who launch businesses with the intention of
achieving particular personal goals and aspirations, which may or may not be
centred on monetary gain. As an illustration, some people
who start their own businesses are driven by the aspiration to achieve personal
fulfilment, social impact, or independence. These people
may establish businesses with the goal of bettering a community or
addressing social issues. For example, they may be social entrepreneurs who
place an emphasis on social
justice or environmental sustainability. Furthermore, entrepreneurs who are motivated by
a need for recognition, the desire to challenge themselves, or a passion for a
particular industry or cause may be the driving force behind their
entrepreneurial endeavours.
Growth-Oriented Entrepreneurs:
Entrepreneurs who are focused on growth are extremely focused on
rapidly scaling their businesses and expanding both in terms of the numbers of
customers they serve and the dimensions of their operations. Their goal is to
establish large, influential organisations that experienced rapid expansion. This is typically accomplished by soliciting funding from outside sources, establishing multiple
locations, or expanding the range of products they offer. Ambition is what
drives these business owners, and they may have the goal of establishing multinational
corporations. They have a tendency to be highly strategic, risk-tolerant, and
willing to invest substantial resources in order to achieve rapid growth.
Because of the high growth potential of these types of entrepreneurs, venture
capitalists and angel investors are frequently drawn to pursue them as business
partners.
Stage-Oriented Entrepreneurs:
Entrepreneurs can also be categorized by the stage of their
business development, with each stage requiring different strategies and
approaches. These stages typically include:
Start-Up
Entrepreneurs: This group of business owners is
primarily concerned with launching a brand-new
enterprise. They are involved in the beginning
stages of producing
new products, conducting research
on the market, and establishing new businesses. When it comes to their approach, entrepreneurs who
are just starting out typically face a great deal of uncertainty and risk, and
they need to be adaptable and resourceful.
Growth Entrepreneurs: As soon as they have conquered
the initial challenges, these business owners concentrate on expanding their operations.
It's possible that they will expand into new markets, look for additional funding, and hire more employees. The optimisation of operations,
the increase of revenue, and the development of a more robust customer base are
the primary focusses of their efforts.
Mature
Entrepreneurs: These business owners are in
charge of well-established companies that have successfully reached a certain
level of stability. At this point, the attention shifts to ensuring the continued success
of the business, maximising its performance, and preserving its overall profitability. In this stage
of the business cycle, entrepreneurs may look for ways to innovate in order to
maintain the relevance of their company or to get ready for mergers,
acquisitions, or other significant transitions.
Exit-Oriented
Entrepreneurs: For some business owners, the
primary objective is to construct a company
that can be sold or exited within a predetermined time frame. The majority
of the time, these business owners plan their companies with the intention of
eventually acquiring them, making an initial public offering (IPO), or buying
them out. The objective of maximising the value
of the company in the event that it is time to devise an exit strategy
serves as the guiding principle for their decisions.
The type of business that an entrepreneur runs, the manner in
which they make use of technology, the personal motivations that drive them, the growth
goals that they have, and the
stage that their business is in can all be used to categorise entrepreneurs. In
order to be successful, each type comes with its own set of challenges and
opportunities, and it requires a different set of skills, strategies, and
mentalities.
New Generations of Entrepreneurship vs Social Entrepreneurship
The primary factors that differentiate new generations of
entrepreneurs from social entrepreneurs are the motivations, goals,
and approaches to business that they bring
to the table. In spite of the fact that they both play a significant
role in the formation of the contemporary landscape of entrepreneurship, they
concentrate on distinct aspects of the entrepreneurial experience.
New Generations of Entrepreneurship:
In today's rapidly
evolving world, there
has been a shift in the way that entrepreneurs approach the creation and growth of their businesses. This shift
is referred to as "new generations of entrepreneurship." In
comparison to the conventional model of entrepreneurship, this generation,
which is frequently referred to as Millennials and Gen Z, is distinguished by a
number of significant differences.
1. Tech-Savviness: When it comes to disrupting traditional industries, new
generations of entrepreneurs are frequently extremely tech-savvy. They achieve
this by utilising digital tools, social
media, and cutting-edge technology. They establish businesses that are driven by technology, such as those in the fields
of e-commerce, app development, software, and digital
platforms, and they make use of emerging technologies in order to scale rapidly
and access markets all over the world.
2. Innovation and Disruption: Innovative and disruptive ideas are typically the primary focusses
of these entrepreneurs. They look for ways to challenge the business models and industries that are already
in place, frequently opening up completely new markets or
transforming the ones that are already in place. Uber, Airbnb, and other
companies operating in the sharing economy are prime examples of how new
generations of entrepreneurs innovate to reshape entire
industries. Other examples
include companies like Airbnb.
3. Global Outlook: Entrepreneurs of the new generation typically have a greater
focus on the global market.
By utilising the internet and other forms of digital communication, they are able to launch businesses that are capable
of functioning on a global
scale from the very beginning. For the purpose
of expanding their operations, they focus on global
markets and make use of global supply chains.
4. Value-Driven: New generations of entrepreneurs are increasingly motivated by values such as
sustainability, diversity, and inclusion, despite the fact that profit is still
a primary driver for them. A significant number of young business owners choose
to incorporate these principles into their business
models, thereby incorporating them into their
brand identities.
5. Flexible and Agile: In their business operations, members of
the younger generation typically place a higher priority
on flexibility and agility. In many cases,
they are open to working in an environment that is
more collaborative and allows for remote work, and they favour organisational
structures that are flat and encourage creativity and innovation.
Social Entrepreneurship:
The concept of social entrepreneurship, on the other hand, is distinguished by the fact that its primary objective is not to generate profits but rather to enhance the community, the environment, or the social environment. In order to address urgent problems in society, such as poverty, education, health, and the environment, social entrepreneurs are motivated by the desire to find solutions to these problems. It is common for their business models to strike a balance between social impact and financial sustainability, and they look for novel approaches to address these issues while simultaneously achieving their long-term social objectives.
1. Mission-Driven: Those who engage in social entrepreneurship are primarily driven by
the aspiration to have a constructive influence on the community. Social entrepreneurs,
in contrast to traditional entrepreneurs, whose primary objective is typically
to maximise profits, have the objective of creating value for society they
serve. Specifically, this may involve finding solutions to issues concerning
social inequality, environmental sustainability, access to healthcare, or
educational opportunities.
2. Innovative Solutions: Social entrepreneurs frequently employ the
same innovative mindset as their counterparts in traditional business,
despite the fact that the focus is on
doing good for individuals and communities. They search for innovative and
scalable solutions to social problems, frequently employing unconventional
approaches, innovative business models, and technological advancements in order
to achieve their goals.
3. Financial Sustainability: Despite
the fact that the primary
goal is to bring about social
change, social entrepreneurs still have the responsibility of ensuring that
their businesses are financially independent. It is possible that they will
generate revenue through the sale of products
or services; however,
the revenue is typically invested
back into the organization's social mission. For the purpose of
accomplishing their objectives, social enterprises might look for hybrid
business models, which combine nonprofit and for-profit organisational
structures.
4. Stakeholder Focus: People who engage in social
entrepreneurship place an emphasis on working together with a wide range of
stakeholders, such as communities, governments, nonprofit organisations, and
other organisations, in order to bring about systemic change. In many cases,
they collaborate closely with the local population in order to gain an understanding of their requirements and to guarantee that their solutions are both applicable and
culturally appropriate.
5. Measurement of Impact: Social entrepreneurs, in contrast to
traditional businesses, which primarily evaluate their success based on the
amount of profit they make, evaluate their success based on the amount of
positive impact they have on society. There
are a variety of metrics
that could be included in this category, such as the number
of people served, the reduction of environmental harm, or improvements in
quality of life.
Comparison: New Generations of Entrepreneurship vs. Social Entrepreneurship
When it comes to their fundamental goals and the criteria by which success is measured, the most significant distinctions between social entrepreneurship and new generations of entrepreneurship are as follows:
When it comes to motivation, new generations of entrepreneurs are
typically driven by a combination of financial
success and innovation. On the other hand, social
entrepreneurship is primarily driven by the desire to make a positive impact on society
or the environment. The focus of new-generation entrepreneurs may be on causing disruptions in existing industries and constructing profitable
businesses, frequently with an emphasis on scalability and market expansion. On
the other hand, social entrepreneurs place a higher priority on resolving
particular social problems, frequently concentrating on impacts that are
community-based or local.
The Business Model:
The majority of new generations of entrepreneurs typically
operate in the conventional business model that is
based on making a profit, with the goal of achieving financial growth and
sustainability. When it comes to social entrepreneurship, however, a hybrid
model is frequently utilised. This model combines elements of both for-profit
and nonprofit organisations, with the profits being reinvested into the social
mission.
Growth and Scalability: Entrepreneurs of the new generation frequently strive for rapid growth and scaling, making use of
technology to rapidly expand into global markets. Despite the fact that social entrepreneurs may be able to expand
their impact, they are typically
more concerned with ensuring
that the social value they create is sustainable over the long term. This can
sometimes come at the expense of rapid growth.
These categories are not incompatible with one another, which is
an essential point to keep in mind. In today's world, a significant number of
entrepreneurs combine aspects of both types, with the goal of pursuing
technological innovation while simultaneously generating social value. In
today's modern entrepreneurial endeavours, the hybrid model, in which profit
and purpose intersect, is becoming increasingly common. This is due to the fact that both financial
success and social impact are increasingly
seen as goals that are compatible with
one another.
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