Entrepreneurial Skills

Introduction

An enterpreneur has some basic qualities which influence his behaviour. No doubt, he lives in a society and therefore economic opportunities and gains affect him. Enterpreneur creates organizations. They promote investment, increase production and bring competitiveness in business, reduce cost of products and raise the standard of living in society. A society's attitude towards business and risk are important.

Qualities\characteristics of a successful enterpreneur 

If we go through the business history of India, we come across many names who have emerged as successful entrepreneurs, like Tatas, Birlas, Dalmia, Modi, Ambani etc. These business houses started as small scale enterprises and have made their name in the list of industrialists of world fame. 

The success of small enterprises and their growth to leading industrial houses can be attributed to entrepreneurs themselves. Thus, it is important to understand the success story of each enterpreneurs. There are definitely some common personal characteristics in enterpreneurs. After carefully scanning the qualities \characteristics of such enterpreneurs the principal ones were noticed, which are as follows: 

1. Leadership:- An enterpreneur is essentially a leader. According to K.L. Sharma, a psychologist, enterpreneurs are men who exhibit qualities of leadership in solving problems. They have to lead a team for achievement of goals. Thus, an enterpreneur must have all universally accepted qualities of a leader, i.e., initiative, high energy level, self-confidence, human relations skills, motivational skills, creativity and keep desire to solve problems. 

2. Risk-taking:- Business risks are unpredictable but still an enterpreneur, with rational planning and firm decisions bears the risks. An enterpreneur innovates an idea and undertakes risk of commercially exploiting that idea by investing his funds, because he recognizes the fact that - higher the risk, greater is the profit. 

3. Innovativeness:- Customer's requirements and tastes keep on changing, therefore, production should meet the customer's requirements. Thus, innovativeness is another important characteristic of an enterpreneur. He always tries to outstrive others by taking initiative in doing new things , i.r., exploring new products, new markets, new raw materials, new methods of production etc. 

4. Goal-oriented:- Enterpreneur is goal-oriented. First he sets a goal to achieve, i.e., to earn profit by producing goals and services and after reaching one goal he proceeds to another goal.  

5. Decision-maker:- Enterpreneur is regarded as decision-maker. He has to take many decisions to put his business idea into reality. He recognises an idea, i.e., a product, service or market and out of various alternatives before time he has to make a choice between them. This involves decision making to choose the best suitable and profitable alternative. 

6. Highly optimistic:- A successful entrepreneur is always optimistic and is not disturbed by the present problems faced by him. He is always optimistic that the situation will become favourable for business in future.

 

7. Motivator:- An enterpreneur has to get the work done through others. He has to create a spirit of team work and motivate them so that he gets their wholehearted cooperation.

8. Self-confident:- An enterpreneur should have self-confidence in achieving his goals, otherwise he will not be able to convince his fellow beings to achieve his goals.

 

9. Action-oriented:- A real enterpreneur is always action-oriented. In fact, enterprise always consists of action in uncertainty. Entrepreneur is both planner and doer, dreamer and achiever. He implements what he visualizes 

10. Dynamic agent:- He mobilises resources. He destroys old things to create new. Hence, his real task is 'creative destruction'. He creates new needs and new means to satisfy them. He has ability to visualize new ventures and new plans. 

11. High achiever:-  The most important characteristic of an enterpreneur is his achievement motivation. He has a strong urge to achieve. He has a more aggressive level of enterpreneural venturing, and need achievement. 

12. Trust in self:- An entrepreneur does not believe in luck or fate. He believes in his own firm decision and actions. He has trust in his preservance and creations. He pulls his own strings.  

Functions of an enterpreneur 

The various functions of an enterpreneur may be classified and described as under: 

1. Innovation:- It includes (a) Introducing new products, (b) Opening new markets, (c) New sources of raw material, and (d) New organization structure. 

2. Risk-taking:- Choosing one among various alternatives, the end result of which are unpredictable. 

3. Decision-making:- Includes: (a) Stabilizing organization's aims and objectives and changing them according to changing condition or to make them more profitable, (b) Division of work among subordinates, (c) Utilization of financial resources (d) Taking decisions on effective techniques, (e) Selling the product as per demand of customers, (f) Relationship with social functionaries. 

4. Organization and management:- To organise and manage various economic and human factors. Under this category, following are his functions: (a) Planning the enterprise, (b) Coordination and control, (c) Supervision and (d) Direction. 

5. Size and scale of business unit:- To decide what size about size of business unit, i.e., he wants to establish one production unit or more etc. which is dependent upon demand of the product. Similarly, he has to decide about the scale of production , i.e., small scale, middle scale or large scale. 

6. Appointment of managerial and other workforce.

 

7. To arrange for factors of production and establishing coordinations, i.e., land, labor, capital, etc in appropriate proportion and to maximize output by best utilization of these factors after coordinating them.

8. Procuring raw material and machinery, so that production process is not affected. 

9. Control and Direction:- General policy formulation and exercising control over all departments and directing them. 

10. Finding suitable markets:- He has to search for suitable market to sell product, for which he perform following function: (a) Advertisement and publicity, (b) Appointment of selling agents, (c) Providing incentives to various selling intermediaries to promote sales.

 

11. New inventions:- Encouraging new inventions and introducing new innovations in production, production techniques, sales, marketing, advertisement etc. 

12. Establishing relations with government:- To establish relations with government and its functionaries. In this regards his functions are: (a) Obtaining licenses, (b) Payment of taxes, (c) Selling the product to government, (d) Provision for export-import etc. 

13. Establishing contact with competitors. 

Enterpreneurship as a career option 

Advantages of Enterpreneurship as a Career 

1. Independence         2. Ambition-Fulfilment         3. Excitement

4. Freedom                 5. Wealth Creation                  6. Status

The main advantages of adopting enterpreneurship as a career :-

1. Independence:- An enterpreneur is his own boss. He can take all decisions himself. He need not to obey someone. 

2. Ambition-Fulfilment:- Some people want to convert their original ideas into a new product or service, for example smart phone, electric vehicle, driver less train etc. 

3. Excitement:- Enterpreneurship involves adventure. Some people resign their well paid jobs and launch their own venture due to excitement. 

4. Freedom:-  Enterpreneurship allows the freedom to try out ons'e ideas. Freedom seeking people choose enterpreneurship as a carrer. 

5. Wealth Creation:- Successful entrepreneurs create enormous wealth for themselves and their staff. 

6. Status:- Success in entrepreneurship brings considerable fame and prestige. Narayana Murthy, Sunil Mittal, Rana Kapoor and other successful entrepreneurs are known all over the world. 

Disadvantages of Enterpreneurship as a Career 

1. Risk                            2. Hard work                     3. Uncertain Income

4. Finance problems     5. Incompetent staff

1. Risk:- Enterpreneurship involves considerable risk of loss. Failure can wipe away all the personal savings and lead to considerable debt burden.

2. Hard Work:- An Entrepreneur has to work very hard to make the new business successful. His work schedule is unpredictable and he has to work late hours. Spouse and children may have to suffer due to his very busy work schedule.

3. Uncertain Income:-  No fixed and regular income is available to an enterpreneur. During the startup stage it may be difficult even to meet household expenses. 

4. Finance Problems:- Raising the necessary funds is very difficult for a first generation enterpreneur. 

5. Incompetent Staff:- A new enterpreneur may not be able to hire and retain qualified and experienced employees. Administrative burden is heavy and faulty decisions can be very harmful for the business.