ENTREPRENEURSHIP AND SMALL SCALE

INDUSTRIES
Definitions of Entrepreneur:
An entrepreneur is a person who has possession of a new enterprise, venture
or idea and assumes significant accountability for the inherent risks and the
outcome.[1][note 1] The term is originally a loanword from French and was first
defined by the Irish economist Richard Cantillon. Entrepreneur in English is a
term applied to the type of personality who is willing to take upon himself a new
venture or enterprise and accepts full responsibility for the outcome. Jean-
Baptiste Say, a French economist, is believed to have coined the word
"entrepreneur" first in about 1800. He said an entrepreneur is "one who
undertakes an enterprise, especially a contractor, acting as intermediatory
between capital and labour

A person who organizes, operates, and assumes the risk for a business venture

An individual who, rather than working as an employee, runs a small business

and assumes all the risk and reward of a given business venture, idea, or good
or service offered for sale. The entrepreneur is commonly seen as a
business leader and innovator of new ideas and business processes.

Entrepreneurs play a key role in any economy. These are the people who have
the skills and initiative necessary to take good new ideas to market and make
the right decisions to make the idea profitable. The reward for the risks taken is
the potential economic profits the entrepreneur could earn.

Who is an Entrepreneur? (Today's meaning)

Entrepreneur a person, who has initiative in investment and decision to the enterprise;
seeking all resource of factor of production, resources of Management, Behavior,
Cultural, Economical and Political factor for establishing, innovation and founded
enterprise, having assumption of risk, profit and future growth

As a leader
The entrepreneur is the main person behind a firm or organization; he or
she can demonstrate his or her quality as a leader by choosing the right
managers for the firm. Scholar Robert. B. Reich considers leadership,
management ability, and team-building as essential qualities of an
entrepreneur. This concept has its origins in the work of Richard Cantillon
in his Essai sur la Nature du Commerce en (1755) and Jean-Baptiste Say
(1803 or 1834)[note 3] in his Treatise on Political Economy.
A more generally held theory is that entrepreneurs emerge from the
population on demand, from the combination of opportunities and people
well-positioned to take advantage of them. An entrepreneur may perceive
that they are among the few to recognize or be able to solve a problem.
In this view, one studies on one side the distribution of information
available to would-be entrepreneurs (see Austrian School economics) and
on the other, how environmental factors (access to capital, competition,
etc.), change the rate of a society's production of entrepreneurs. [citation
needed]

A prominent theorist of the Austrian School in this regard is Joseph

Schumpeter, who saw the entrepreneur as innovators and popularized the
uses of the phrase creative destruction to describe his view of the role of
entrepreneurs in changing business norms. Creative destruction dealt
with the changes entrepreneurial activity makes every time a new
process, product or company enters the market.

Research into entrepreneurs

Schumpeter argues that the entrepreneur is an innovator, one that
introduces new technologies into the workplace or market, increasing
efficiency, productivity or generating new products or services (Deakins
and Freel 2009). Other academics such as Say, Casson and Cantillon, say
the entrepreneur is an organiser of factors or production that acts as a
catalyst for economic change (Deakins and Freel, 2009). Shackle argues
that the entrepreneur is a highly creative individual that imagines new
solutions providing new opportunities for reward (Deakins and Freel,
2009). These are a few definitions from the entrepreneurship field but
show the complexity and lack of cohesion between academic research
(Gartner, 2001). Most research focuses on the traits of the entrepreneur.
Cope (2001) argues that although certain entrepreneurial traits are
required, entrepreneurs' behaviour are dynamic and influenced by
environmental factors.

Shane and VenKataraman (2000) argue the entrepreneur is solely

concerned with opportunity recognition and exploitation; however, the
opportunity that is recognised depends on the type of entrepreneur which
Ucbasaran et al. (2001) argue there are many different types dependent
on their business and personal circumstances.

There is a growing body of work that shows that entrepreneurial behavior

is dependent on social and economic factors. The research into female
entrepreneurs illustrates this quite clearly. "Countries which have healthy
and diversified labor markets or stronger safety nets show a more
favorable ratio of opportunity to necessity-driven women entrepreneurs."
(Minitti, 2010) What those factors are varies widely, based on local needs.
In Somalia, this may be bigger crops or clean water while in the US,
technology seems to be the driving factor.

New research regarding the qualities required for successful

entrepreneurship is ongoing, with notable work from the Kauffman
Institute forming the statistical basis for much of it. Research from Scott
A. Shane (2008)[2] summarizes much of the counter-intuitive conclusions
of this research while Adrian Perez's research on success attributes for co-
founder teams is ongoing.[3]

Social Entrepreneur
Social entrepreneurs act within a market aiming to create social value
through the improvement of goods and services offered to the
community. Their main aim is to help offer a better service improving the
community as a whole and are predominately run as non profit schemes.
To explain this point Zahra et al. (2009: 519) said that “social
entrepreneurs make significant and diverse contributions to their
communities and societies, adopting business models to offer creative
solutions to complex and persistent social problems”. Examples of socially
run businesses include the NHS and also the 'Love One Water' drinks
brand.

Serial Entrepreneur
A serial entrepreneur is one who continuously comes up with new ideas
and starts new businesses. As opposed to a typical entrepreneur, who will
often come up with an idea, start the company, and then see it through
and play an important role in the day to day functioning of the new
company, a serial entrepreneur will often come up with the idea and get
things started, but then give responsibility to someone else and move on
to a new idea and a new venture. This can be a good thing if the
individual has lots of unique ideas and is the best one suited to get each
one started, but can be a bad thing if the individual stops putting time
into a company that needs his or her help, in order to try to move forward
with a new idea that may or may not succeed

Characteristics Of Entrepreneur

Check if these entrepreneurs characteristics are applicable to you.

• Responsible
• Hard Worker
• Risk Taker
• Creative
• Flexible
• Follows through with ideas
 • Personable
• Optimistic
• Perceptive
• Self-confident
• Determined
• High degree of energy
• Innovative
• Independent
• Ability to anticipate needs
• Effective communicator
• Responsive to criticism
• Able to take the lead
• Learn from mistakes
• Self-directed

Starting and growing your own business requires many skills to be successful. Take a look at
the business personality types and find out what you need to succeed. Are you Bill Gates, a
Visionary, or an Improver like Body Shop founder, Anita Roddick?

Your business personality type are the traits and characteristics of your personality that blend
with the needs of the business. If you better understand your business personality, then you
can give your company the best part of you. Find others to help your business in areas you
aren't prepared to fulfill.

There are 9 key types of personality and understanding each will help you enjoy your
business more and provide your company with what it needs to grow. This entrepreneur
personality profile is based on the 9-point circle of the Enneagram.

Begin identifying your dominant personality theme and understand how you operate in your
business.

The 9 Personality Types of Entrepreneurs

1. The Improver: If you operate your business predominately in the improver mode, you are
focused on using your company as a means to improve the world. Your overarching motto is:
morally correct companies will be rewarded working on a noble cause. Improvers have an
unwavering ability to run their business with high integrity and ethics.

Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of

employees and customers.

Entrepreneur example: Anita Roddick, Founder of The Body Shop.

2. The Advisor: This business personality type will provide an extremely high level of
assistance and advice to customers. The advisor's motto is: the customer is right and we must
do everything to please them. Companies built by advisors become customer focused.
Personality Alert: Advisors can become totally focused on the needs of their business and
customers that they may ignore their own needs and ultimately burn out.

Entrepreneur example: John W. Nordstrom, Founder Nordstrom.

3. The Superstar: Here the business is centered around the charisma and high energy of the
Superstar CEO. This personality often will cause you to build your business around your own
personal brand.

Personality Alert: Can be too competitive and workaholics.

Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.

4. The Artist: This business personality is the reserved but highly creative type. Often found
in businesses demanding creativity such as web design and ad agencies. As an artist type
you’ll tend to build your business around the unique talents and creativities you have.

Personality Alert: You may be overly sensitive to your customer’s responses even if the
feedback is constructive. Let go the negative self-image.

5. The Visionary: A business built by a Visionary will often be based on the future vision
and thoughts of the founder. You will have a high degree of curiosity to understand the world
around you and will set-up plans to avoid the landmines.

Personality Alert: Visionaries can be too focused on the dream with little focus on reality.
Action must proceed vision.

Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing
problems in a systematic way. Often the basis for science, engineering or computer firms,
Analyst companies excel at problem solving.

Personality Alert: Be aware of analysis paralysis. Work on trusting others.

Entrepreneurial example: Intel Founder, Gordon Moore.

7. The Fireball: A business owned and operated by a Fireball is full of life, energy and
optimism. Your company is life-energizing and makes customers feel the company has a get
it done attitude in a fun playful manner.

Personality Alert: You may over commit your teams and act to impulsively. Balance your
impulsiveness with business planning.

Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

8. The Hero: You have an incredible will and ability to lead the world and your business
through any challenge. You are the essence of entrepreneurship and can assemble great
companies.
Personality Alert: Over promising and using force full tactics to get your way will not work
long term. To be successful, trust your leadership skills to help others find their way.

Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business.
You have an uncanny ability to survive and persist with an inner calm.

Personality Alert: Because of your caring, healing attitude toward your business, you may
avoid outside realities and use wishful thinking. Use scenario planning to prepare for turmoil.

Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerry’s Ice Cream.

Each business personality type can succeed in the business environment if you stay true to
your character. Knowing firmly what your strong traits are can act as a compass for your
small business. If you are building a team, this insight is invaluable. For the solo business
owners, understand that you may need outside help to balance your business personality.

The different types of Entrepreneurs

There are several different forms of business enterprises:
A sole trader’s business is run by one person who is responsible for various important tasks
of the business such as debts. In other words, the sole trader must pay the debts of his/hers
business if its funds are not sufficient.
The trading partnership can be explained as an enterprise that consists of at least two co-
owners. These co-owners have unlimited shared, several and personal responsibility. This
means that both co-owners are responsible for the commitments of the business such as debts
and agreements made. As a result, if the company's funds are not sufficient to cover the debts
one of the two partners can be forced to pay all the debts of the company. Importantly, the
partners should be advised on signing a written partnership agreement in order to decide on
who is responsible for paying the debts if the company's funds are insufficient. Moreover, such
agreement is likely to cover issues including: division of labour, sharing of profits and how to
solve other procedures such as what would happen if one co-owner decides to exit the
partnership.
A limited company can be explained as a business enterprise defined by a clear distinction
between the company and the owners. Notably, a limited company can take many forms of
ownership such as solely ownership or a partnership between many persons and/ or
enterprises. The owners are not personally responsible for the company’s commitment, which
means that their financial risk is limited to the capital invested.
An economic association (also called an “incorporated association”) consists of at least three
members. The aim of the activity is to safeguard the members’ economic interests through
economic operations. Also, the members are expected to take an active part in the business by
contributing their knowledge and work. Here, owners are faced with a minimal financial risk
and they are only entitled to loose their membership.
If you want further information visit: Nutek’s home page on www.nutek.se. Other important
facts can be found under Nutek's Entrepreneur's Guide – Företagarguiden. The aim of this
website is to provide useful information to people who are running an enterprise or who are
interested in setting up a new company alone or together with other investors. Hence, the
Guide provides information and tools for starting and developing a company

Five types of Entrepreneurs, what type of entrepreneur

are you?
May 7th, 2008 | 4 Comments | Posted in Entrepreneurship
I came across this in a book I was reading which had a section on entrepreneurship. The book
is called New Era of Management by Richard Daft. It goes on to talk about five types of
entrepreneurs. There were a few I knew about before but some are new to me. So I’ve
decided to share it with you in today’s post. Let’s see what categories we fall under.

Idealist
The idealist entrepreneur is the most common type of entrepreneur shown above. He/She
likes innovation and enjoys working on something new or creative or something personally
meaningful.

Optimizers
The optimizer entrepreneur comes in a close second and is content with the personal
satisfaction of simply being a business owner.

I think everyone would have some sort of satisfaction being a business owner but if that’s
what mostly feels important then I guess you fall here.

Hard Workers
The hard workers entrepreneur category includes persons who enjoy putting in long hours
to build a larger more profitable business. They like the challenge it presents and of course
reap the most rewards if the business turns out to be a multi-million dollar enterprise.

Hard work comes with all businesses but as we now see not everyone works hard for the
business to grow as this group of entrepreneurs does.

Jugglers
The juggler entrepreneur likes the concept that the business gives them a chance to handle
everything themselves. They are usually people with lots of energy and exist on the pressure
of meeting deadlines, paying bills and of course making payroll.
Who doesn’t like pressure? J Last minute deadlines are lovely! I’m sure a lot of you have
ended up in a situation where the deadline is approaching quickly. Maybe you’re a juggler

Sustainers
The sustainers entrepreneur category consists of people who like the thought of balancing
work and a personal life. Most often they do not wish the business to grow too large where it
will cut into their personal life too much.

These guys just need enough to survive. No big hopes and dreams of a multinational
corporation or interviews on “The Big Idea” J

So there you have it five categories of entrepreneurs. I’ve been trying to figure out which
category best describes me, but I think I have attributes of the first four types. I love
creativity and innovation so am I an idealist? I think everyone would feel satisfaction as a
business owner, a natural sense of pride would always come with entrepreneurship.

I definitely would love to see any business venture I undertake grow as large as it possibly
can so then I’m a hard worker? Yet I work well under pressure I’d say I thrive on it a bit so
then I’m a juggler.

I guess I am hybrid entrepreneur. What type of Entrepreneur are you?

So that’s it, if you likes this post please subscribe to my rss feed.

3) What abilities do you need when starting a small business to become a successful
entrepreneur?

According to studies conducted by the Bank of Montreal Institute for Small Business, "The
Six Success Factors" for starting a small business are:

• self-motivation,
• business and industry knowledge,
• organization and management capabilities,
• marketing skill,
• customer/vendor relations,
• and vision.
• Business and industry knowledge should be near the top of anyone's list of
requirements for small business success. After all, how many skis or snowboards are
you going to sell if you don't know anything about the products or the sport? You can
acquire this knowledge through trial and error when starting a small business, but you
will probably have to declare bankruptcy before you learn all you need to know. My
theory is that lack of knowledge is one of the prime reasons so many new business
fail.
• While successful entrepreneurs themselves didn't rate being well organized highly,
((William E. Jennings, "A Profile of the Entrepreneur" in Entrepreneurship: A Primer
for Canadians), it's logical that organizational and management abilities are also
absolute necessities for being a successful entrepreneur. You're not going to be able to
 satisfy many (if any) clients or customers without these skills, and you'll certainly
quickly run afoul of the Canada Revenue Agency without them!
• People keen on starting a small business sometimes forget about the managerial and
administrative skills necessary to run a business; if you're going to start a successful
small business, you need to have or develop expertise in business planning, money
management, managing people, directing business operations, and directing sales and
marketing operations. Business Management Basics will help you learn how to
manage these aspects of starting a small business.
• What are the other abilities you'll absolutely need to be a successful entrepreneur?
When twenty-one inductees into the Babson Academy of Distinguished Entrepreneurs
were questioned about the principal reasons for their success, only three abilities were
mentioned by all twenty-one successful entrepreneurs; responding positively to all
challenges and learning from mistakes, taking personal initiative, and having great
perseverance ("Assessing Your Potential for an Entrepreneurial Career", Manitoba
Industry, Trade and Tourism, 1999.) As the authors point out, all three of these
successful entrepreneur behaviors can be learned!