No given economy has a worth without entrepreneurs. In other words, all the resources in any given economy including the most important ones like labor, land, capital, and entrepreneurial ability can create anything without an entrepreneur. These are innovative people who create lots of the luxuries that we use and cannot do with them.
So, what exactly could be an entrepreneur definition? An entrepreneur in simple meaning is the individual who takes the initiative with a combination of resources including land, labor, equipment, and other objects to create some type of services or products. They are often the first ones who start everything. In fact, without an entrepreneur, societies cannot have any advancements taking place which eventually makes it difficult for the economy to develop and improve.
According to another entrepreneur definition, they are innovators or someone who generates something new from provided resources. They get what is available around them and assemble them together in order to make something useful for everyone. In fact, creativity and competence play an important role in implementing most of the important entrepreneurial tasks.
Another reason why entrepreneurial ability is a vital resource is that entrepreneurs are smart enough to assume all risks. They know what will happen if their idea fails. They have proper planning of what to do if they or their family end up without means to survive. Successful people like Bill Gates or Henry Ford are some of the famous entrepreneurs who had to risk almost everything in order to bring us lots of great inventions.
What is an Entrepreneur in The Present Time
Today’s entrepreneur definition consists of many meanings and ideas. It describes individuals who carry out various entrepreneurship processes, bear risks at certain places, and are fully determined to achieve success. The latest definition of entrepreneurship involves process innovation, risk bearing, market innovation, organizational innovation, determination & persistence, and creation of new enterprises. Most importantly, the most recent entrepreneur definition has also described the entrepreneurs as the founders.
Over the last decade, many studies were conducted with considerable efforts just to better comprehend the sociological and psychological foundation of entrepreneurs. These studies reveal several common characteristics among entrepreneurial individuals. Most people from free enterprise come with a goal for achievement, possess professed locus of control, have willingness toward intuitive and ability to taking risks. Additionally, lots of people have commented upon the common characteristics of successful entrepreneurs but there are also some attributes that are not universal. Having initial adolescent financial experiences, thread of infantile deficiency and minority group affiliation are some aspects that can be used to typify today’s entrepreneur.
With a range of traits and behaviors which exemplify entrepreneurship in some people. All the above trends are used to reinforce the view that it is difficult but not impossible to clearly explain an entrepreneur definition. The term itself can be better used to describe a successful business man.
Are Visionaries and Managers Same Individuals
Another facet of entrepreneur definition says that an individual who initiates a business in the world of new and emerging businesses is often known as entrepreneur or visionary. They start a business with an innovative idea in order to develop something better satisfying unique needs of others. The primary interest of visionaries is not necessarily to make money as they want to do something that is not done before. It is indeed an interesting approach that they think they can do something unique in order to meet a demand. Once the business begins to achieve a bit of success, it automatically changes the nature and processes begin changing. Ultimately, this needs a person with different skill set than those with the visionary attributes.
The visionary is not interested in how they will transfer the skills and motivation that lead the small business’ success into a larger one. Also, they will not help how the business deals with cash flow restraints or how it obtains the legality needed to enable it to borrow funds. They are naturally poor at supervising employees, dealing with investors or training replacements. This is exactly the point where the business needs someone with management skills to manage and sustain the growth, promote the vision. Managers emphasize the structure, policies, processes, and most importantly, profitability.
Measuring Competency level of Entrepreneurs
Regardless of the dark shade of the latest study about entrepreneurs, there is still a powerful instinct found especially among enterprise development experts to assess entrepreneurship in some way. These measuring attempts can range from simple checklists to complex and comprehensive modern day applications. The need of measuring entrepreneurship is driven by the concept that entrepreneurs are the success agents at the launch of any business.
When it comes to measuring the entrepreneurship level, the entrepreneur definition says entrepreneurs are the persons who perceive available market opportunities and have the motivation, drive and ability to deploy resources to meet requirement. The key characteristics of great entrepreneurs that come with most definitions of entrepreneurs include the following:
They are multitalented and self-confident
- They confidently face the challenges, obstacles, and difficulties that come along the way and discourage negative circumstances.
- They possess innovative aptitude and can see those prospects and opportunities that are often not visible to other people.
- Being result-orientation, they just need the drive that only comes from accomplishing the goals they have already set for themselves.
- They are risk takers. Mostly, great entrepreneurs show an incremental approach to risk bearing at all the stages. This exposes them to a limited and calculated amount of personal risk, making it easy for them to move from one stage to another.
- They are committed, hard workers, energetic, and single minded which are established to be the most important elements in any entrepreneurial profile.
However, the above qualities are just a partial list of entrepreneurial traits which need to be attached to two cautions. Firstly, selecting people with a set of skills for enterprise development program does not guarantee business success. Additionally, the entrepreneurial characteristics needed for a successful launch of business are often different from those necessary for a business to experience growth. The scenario can become massively different once it expands into any size since it can make the skill set a diverse entity. As the business develops and grows the role of entrepreneur changes.