MODULE 1: EXPLORING ENTREPRENEURSHIP

ENTREPRENEURSHIP is a science of converting ideas into business. Business is a commercial or

mercantile activity engaged in as a means of livelihood. Entrepreneurship in the field of economics is
related to land, labor, or any capital where profit has generated. It is also the method or acts for the
starting of a business firm that is more likely to be a start-up company that offers products of creativity
and service processes. It is basically like a method of creativity.

ENTREPRENEUR on the other hand is the one who organizes, manages and assumes the risks of a
business or enterprise. Entrepreneur discerns everything as his opportunity and shows bias in taking his
options to make full use of the chance. The vision of an entrepreneur is defined as the risk-taking factor
he takes to succeed in an ever-changing global marketplace. Business opportunities exist at all times,
because people need goods and services to survive.

RISKS AND REWARDS OF AN ENTREPRENEUR

Risks of entrepreneurship:
In every field of interest, there is a factor that considering as a risk factor in entrepreneurship can be
classified into two types:

 the risks an entrepreneur has to face

 the risks an entrepreneur has to take

The risks an entrepreneur has to face

Most of the entrepreneurs are risk-takers by nature. When they decide to launch a business,
they risk everything irrespective of the thought that they have no secure monthly income and where the
time-space for family matters is relatively null. There are some factors of risk that an entrepreneur has
to keep an eye on before starting a business which are as follows:

Risks in the financial sector: The fund required to start a business might be either in the form of loans,
lifetime savings, etc. The owner should put himself at risk during the start of this new venture. If you
failed to return the investors for the next few years, it may lead to bankruptcy and might leave the
investors empty-handed.

Risk due to vintage strategies: The strategies taken in a business plan should be appealing to the
investors. Anyhow, we live in a fast-paced world, and as time goes by, the current strategies become
outdated. To avoid this situation, we must update our strategies according to the change in the market,
or else the company might struggle to reach its benchmarks.

Market risks: Many risk factors in the market can affect the sale of a product or service. The pros and
cons of the sense of economy of the market pose a risk to new businesses. For example, if the economy
slumps, people are inclined to buy non-luxury products rather than depending on the luxury ones. You
must analyze the factors like the demand for a product or service and consumer behavior to capture the
market.
Competitive Risk: The competitors are the major factor which an entrepreneur should consider. The
lesser the competitors the lesser are the demand for the product in the market. A saturated level of
large competitors might create a struggle to compete in the market.

The risks an entrepreneur has to take:

Risk-taking is a non-avoidable factor in entrepreneurship. To be a successful entrepreneur, you

have to be confident to catch risks and face the challenges that follow. The following are the risks that
the entrepreneur must take for on-going development.

Abandoning the current source of income: Before you attain the ownership of any business, you have to
resign from your current job or career. Some people always keep a backup plan to resume their old job
or career in case things go wrong in their business. But a faction of the people holds the notion to risk
their current career. There is no guarantee for your income in the first few months.

Sacrificing personal capital: Some entrepreneurs depend on external funding like loans, government
grants, etc. You should at least take the risk of spending some personal money that means diminishing
your safety net.

Trusting a key employee: There is only a minimal chance of attaining a full team at the start of a
business. You will have only a few people who are willing to work for a lower salary for the of the
company.

Rewards of an entrepreneur

Control: A major benefit of starting your own venture is that you have a large degree of agency and
control of what is happening in your company. You can decide whom you want in your team and you set
the vision for the company and make strategic decisions.

Excitement: Building your own business can be a very exciting and highly enjoyable process as you get to
apply your skills and abilities to solve problems, make fascinating breakthroughs and meet interesting
people. Your work is dynamic, as the company constantly needs to adapt as it is growing so you never
get bored. There is no better feeling then creating something out of nothing, and you get to work with
people who are not only your customers/suppliers, but also your friends.

Flexibility: Upon owning the company, you can decide how to organize your schedule and when to take
time off, but the truth is that entrepreneurs often have to work very long hours, particularly in the
beginning.

Freedom: The freedom you have will also add to your life satisfaction and make you more fulfilled. You
have the freedom to choose if you want to work from home or while you are travelling, and you can
choose when you want to work.

New Skills: Even if you have expertise in certain areas, in the beginning you have to do a bit of
everything and this way you will learn about accounting, design, marketing, public speaking, how to
delegate, how to be more creative, about sales and much more. Furthermore, you have to learn how to
fail as well as face rejection but still get back up on your feet.

Rational Salary: Another advantage is that your salary is directly related to how much work you put in
and how many new contracts you close. Over are the days where you put in so much more effort than
your co-worker but get paid the same and you also don’t need to wait for a raise anymore.

Impact: You get to see the impact you make first hand as you work closely with your customers and the
problems you solve make a real difference in people’s lives. Furthermore, you create jobs which will
attract talent to your local area and also helps economic development.

CHARACTERISTICS OF AN ENTREPRENEUR
1. Creative
Creativity gives birth to something new. For without creativity, there is no innovation possible.
Entrepreneurs usually have the knack to pin down a lot of ideas and act on them. Not necessarily every
idea might be a hit. But the experience obtained is gold. It helps in coming up with new solutions for the
problems at hand and allows one to think of solutions that are out of the box. It also gives an
entrepreneur the ability to devise new products for similar markets to the ones he’s currently playing in.

2. Professionalism
Professionalism is a quality which all good entrepreneurs must possess. An entrepreneur’s
mannerisms and behavior with their employees and clientele goes a long way in developing the culture
of the organization. Along with professionalism comes reliability and discipline.
Self-discipline enables an entrepreneur to achieve their targets, be organized and set an
example for everyone.
Reliability results in trust and for most ventures, trust in the entrepreneur is what keeps the
people in the organization motivated and willing to put in their best. Professionalism is one of the most
important characteristics of an entrepreneur.

3. Risk-taking
Risk-taking ability is essential for an entrepreneur. Without the will to explore the unknown, one
cannot discover something unique and this uniqueness might make all the difference. Risk-taking
involves a lot of things. Entrepreneurs have a differentiated approach towards risks. Good
entrepreneurs are always ready to invest their time and money. But, they always have a backup for
every risk they take.

4. Passionate
Perhaps the most important characteristic for entrepreneurs, passion is essential to any
business owner or working professional's success. Without passion, there is no reason for your work and
no drive to do it.
 Entrepreneurs love what they do and are extremely dedicated to the businesses they create. To
be successful, you must be confident in yourself and your business, and you must be proactive with
what you do and how you do it.

5. Optimistic
Entrepreneurs always look on the bright side and are constant dreamers. They look at how they
can do things better and make the world a better place. They never dwell on the past or the negative.
Instead, they focus on moving forward and moving up. When they're confronted with challenges,
entrepreneurs don't see them as problems; they see them as opportunities. Challenges fuel
entrepreneurs and make them reach higher and do more.

6. Future-oriented
Entrepreneurs are focused on moving forward, they are always looking toward the future.
Entrepreneurs are very goal-oriented and know exactly what they want. They set their goals and
everything they do is aimed at achieving those goals. Having a strong vision helps propel you toward
accomplishment. Consider setting a goal for yourself - a north star that can guide you on your path to
success.

7. Persuasive
To be successful in business, you have to know business. If you're a people person and know
how to get people to listen to you, you could be a successful entrepreneur.
Especially when first starting out, entrepreneurs need to gain buy-in from those around them on
their big idea. If it's an out-of-the-box idea, which it usually is, many people will be sceptical before
giving their support or investing any money. That's why entrepreneurs need to use their persuasiveness
to sell themselves and their ideas.

8. Flexible
According to professional development coach Ruchira Agrawal in an article for Monster, "As an
entrepreneur, you'll typically start out as a 'solopreneur,' meaning you will be on your own for a while.
You may not have the luxury of hiring a support staff initially. Therefore, you will end up wearing several
different hats, including secretary, bookkeeper and so on."
Entrepreneurs know how to adapt to unfamiliar situations. If their business requires that they
learn how to build a website or send an invoice, they'll do it. Whatever it takes, entrepreneurs are ready
and willing. They always approach things with an open mind and are willing to change course if they
need to.

9. Resourceful
In business, problems aren't a matter of if, but when. Entrepreneurs do not shy away from
challenges or conflicts. Instead, they face them head on and come up with a solution. They know how to
solve problems effectively.
Entrepreneurs also know how to make the most of what they have. Time, money and effort are
never used haphazardly. Everything has a plan and a purpose.
 10. Adventurous
In an interview with Y Combinator president Sam Altman, Facebook founder Mark Zuckerberg
said, "In a world that's changing so quickly, the biggest risk you can take is not taking any risk."
Entrepreneurs know that to be successful, they must be willing to take risks. While they don't
mind walking on the wild side, they don't take risks lightly. They know how to plan for the unknown and
make a calculated decision that is best for them and their business.

11. Decisive
There is no room for procrastination in business. Entrepreneurs know what needs to be done and
don't hesitate to make the decisions that will lead them to success. They don't let opportunities pass
them by; instead, they seize the day and get the job done.

12. Knowledgeable
Knowledge is the key to success. An entrepreneur should possess complete knowledge of his niche
or industry. For only with knowledge can a difficulty be solved or a crisis is tackled.
It enables him to keep track of the developments and the constantly changing requirements of the
market that he is in. Knowledge is the guiding force when it comes leaving the competition behind. New
bits and pieces of information may just prove as useful as a newly devised strategy. He should know
what his strengths & weaknesses are so that they can be worked on and can result in a healthier
organization.

13. Confident
Confidence is one of the key characteristics of an entrepreneur. This one goes hand in hand with
passion. True entrepreneurs believe that they have the ability to bring their product to market.
Sometimes this means trying a new approach if the first one doesn't work, as well as having the ability
to overcome the obstacles that will inevitably come your way.
14. Money managers
Being able to manage money is an important characteristic of an entrepreneur. Having a business
degree can give you enough of a foundation in accounting and finance to manage the money yourself at
the beginning, but if this isn't on your list of strong suits, make it the first thing that you outsource.

15. Never Giving Up

Bringing a product or service to the marketplace is a lot of hard work. Since you have passion and
confidence already, it may not seem like work to you, but there will come times when you think you've
done all you can. That's when you have to pull yourself back up, call on the knowledge, expertise,
passion and commitment you have, and give it one more shot.