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CHARACTERISTICS
OF AN ENTREPRENEUROF AN ENTREPRENEUR
J.ILANGUMARANHOD i/c Mech(RAC)
PACR POLYTECHNIC COLLEGE
RAJAPALAYAM – 626 108
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An entrepreneur is someone who has an original idea
and is able to change that idea into a business
opportunity and make it work
WHO IS AN ENTREPRENEUR?
One who starts his own businessOne who starts his own business
One who creates a new business in the face of
risk and uncertainty for the purpose of achieving
profit and growth by identifying opportunities
and assembling the necessary resources to
capitalize on them
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What skills are required by an
effective entrepreneur?
• Strategic skills
An entrepreneur must have a vision for the future. He/she must be able to see the future. He/she must be able to see the bigger picture and know where he/she is going with everything. Setting clear objectives and effective strategies are essential for running a business successfully.
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•Management skills
A manager/entrepreneur ensures that work isdone and completed successfully by takingresponsibility for the following tasks:
– Planning
The entrepreneur decides what has to be done.He/she decides what tasks need to beperformed in order to achieve the business’sperformed in order to achieve the business’sobjectives. Planning allows the entrepreneur toanticipate the future and avoid future failures. Itis a roadmap for proper management. Planningmay be tedious, but in the long-term it savestime, money and effort. The entrepreneur isresponsible for the planning of the wholebusiness.
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– Organising
This means that the entrepreneur has to decidehow the plan will be implemented. The availableresources will have to be divided into differentareas.
– Leading (activating)
The entrepreneur decides when things shouldThe entrepreneur decides when things shouldbe done.
– Control
The entrepreneur ascertains whether the taskshave been carried out and how effective theyare.
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• Human relations skills
The entrepreneur needs to have the
ability to manage people as well.
He/she has to build good relationships He/she has to build good relationships
with all workers and needs to know
who to employ in his/her business.
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• Financial skills
The success of a business is measured by the
profit it makes.
It is essential that the entrepreneur has
knowledge about managing income and costs.
The long-term future success of the business
is also determined by the type of investments
the business makes and how successful the
entrepreneur manages those investments.
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• Marketing skills
The challenge in marketing is that theentrepreneur must know how to promote andadvertise his/her business and products. It isessential for him/her to have good knowledgeabout the market and what things the customerswant and prefer.want and prefer.
The success of the business is determined by
how effective the research that has been
conducted is and how well the entrepreneur
provides for the needs of the target market.
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Characteristics of an entrepreneur
• The entrepreneur has big dreams and a clear vision of how he/she wants to make that dream a reality.
• They are very creative and always think of new, interesting ideas.
• They are very enthusiastic about their ideas, have a positive outlook on life and are eager to make a success of their business.positive outlook on life and are eager to make a success of their business.
• They take calculated risks and are willing to loose money if their ideas don’t work immediately.
• They are flexible and willing to adapt to a changing business environment.
• They have a high degree of competence and a very strong will to succeed in their actions.
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• Desire for responsibility
• Preference for moderate risk – risk eliminators
• Confidence in their ability to succeed
• Desire for immediate feedback
HE HAS THE
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• Desire for immediate feedback
• High level of energy
• Future orientation – serial entrepreneurs
• Skilled at organizing
• Value achievement over money
HE IS
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Am I an entrepreneur?Respond to the statements that follow, being as honest
as possible
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To establish if someone is well-suited to
become an entrepreneur
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Benefits of Entrepreneurship
The opportunity to:
• Create your own destiny
• Make a difference
• Reach your full potential
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• Reach your full potential
• Reap impressive profits
• Contribute to society and to be recognized for your efforts
• Do what you enjoy and to have fun at it
Drawbacks of Entrepreneurship
• Uncertainty of income
• Risk of losing your entire investment
• Long hours and hard work
• Lower quality of life until the business gets established
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�� High levels of stressHigh levels of stress
�� Complete responsibilityComplete responsibility
�� DiscouragementDiscouragement
Feeding the Entrepreneurial Fire
• Entrepreneurs as heroes
• Entrepreneurial education
• Demographic and economic factors
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• Shift to a service economy
• Technological advancements
• Independent lifestyles
• E-commerce and the World Wide Web
�� International opportunitiesInternational opportunities
Ten Deadly Mistakes of Entrepreneurs
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
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5. Failure to develop a strategic plan
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial
transition”
Common Mistakes of Entrepreneurs
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Avoiding the Pitfalls of Small Business Failure
• Know your business in depth• Know your business in depth
• Develop a solid business plan
• Manage financial resources
• Understand financial statements
• Learn to manage people effectively
• Keep in tune with yourself
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Causal Logic is predictive
To the extent you can predict the future, you can control it
Control of outcomes achieved through
accurate predictions,
clear goals,
and avoiding or protecting oneself against the unexpected
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Example of Causal Logic
From cooking a meal . . .
. . . To building a restaurant
Or something else . . .
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Why Business? What’s the motivation?
• Independence
• Not wanting to work for anyone else
• Desire to be one’s own boss
• For men, money is the second reason for • For men, money is the second reason for starting a new venture
• For women, job satisfaction, achievement, opportunity, and money are the motivations
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P. R. Ramasubrahmaneya RajhaChairman & MD, Madras Cement Limited
A man, who has seen life from close quarters and has risen from the lowest rung to A man, who has seen life from close quarters and has risen from the lowest rung to
the highest, needs no management lessons. For, he has continuously learnt to manage
people. And P. R. Ramasubrahmaneya Rajha, Chairman & MD, Madras Cement Limited
is one individual who has done this all his life.
Known for his refined mind and an eye on the horizon of the global corporate world,
Rajha has been playing a cardinal role in bolstering the image of the Indian corporate
chiefs in the global scenario by infusing fresh blood into it. A true visionary, Rajha has
been riding high in the business world and nourishes a dream to join the bandwagon
of the global players in a short timeframe.
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• In fact, this global man has been steering the Madras Cement Limited
for decades. The company which is engaged in the production of
cement, wind power generation and dry mortar has, under the
stewardship of Rajha has reached new heights of professional
excellence. A man of many qualities, Rajha has also been steering the
course of Ramco Group, founded in 1938, which is a well-diversified
industrial conglomerate.
• The fact that Rajha is a corporate chief of high caliber has helped the
cement company with a turnover which has multiplied ten-fold within
a very short time. His visionary approach has helped the company a very short time. His visionary approach has helped the company
become one of India's most respected business houses, achieving
international recognition for its quality products and services.
• Known for his sagacity and generosity, Rajha believes that efficiency
and a team of dedicated workers have made the Group one of the
most efficiently managed Indian business houses with a track record
of high and consistent profitability. It is one reason that the company
under Rajha has been able to pay rich dividends to its shareholders on
a consistent basis.48
Entrepreneurship Can Only Be
Learned By Doing
We should believe in what is commonly
called clinical teaching: learning by being
immersed in real problems. Surgeons learn
by watching others perform operations andby watching others perform operations and
then by actually operating while under
supervision. Entrepreneurship should be
learned similarly. One way you can learn the
skills is to network in your local entrepreneur
clubs and try to find mentors.
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QUESTIONS ?QUESTIONS ?
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