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How To Become A Successful Entrepreneur

Entrepreneurship is the capacity and willingness to develop, organize and manage a business venture and its associated risks in order to achieve profits.

An entrepreneur is someone who identifies an opportunity, develops a plan, set up a business and manages the business to achieve profit. So to become an entrepreneur, you need to be creative, business minded and innovative to come out with ideas and transform them into products and services by accepting the risk of success or failure.

FACTORS THAT SHAPE AND INFLUENCE AN ENTREPRENEUR 

1.  Risks

                                            I.           Business risk: Although many new businesses are started each year, but the failure rate of research indicates that 25 to 30 percent of all independent businesses fail during the first two years of operation.

                                         II.           Financial risk: They typically invest most, if not all, of their financial resource into the business.

                                      III.           Career risk: A career risk is taken when leaving a secured job for a venture with a highly uncertain future.

                                     IV.           Family and social risk: They incur family and social risk because the demand of starting and running the business may consume several hours of work that leave little time for family and friends. Such demands often strain marriages and friendship.

                                        V.           Psychological risk: This is the risk of deep sense of personal failure if the business does not beat the odds and succeed.

2.  Motivation

                             I.           Independence: The urge of “BEING MY OWN BOSS” seems to be a formidable motivator for many entrepreneurs who seek the freedom to act independently in their works. As a head of a business, the entrepreneur would enjoy the autonomy of making his or her own decisions, setting his or her own working hours and determining what he or she would do and when to do them.

                          II.           Personal And Professional Growth: The challenge of building a business involves individual growth. To ensure success, the entrepreneur must be able to cope with risk, uncertainty, stress, handle many interpersonal relationships and manage a business with a scarce resource. Many individuals become entrepreneurs to experience this growth and the fulfillment attained from building a business into a purposeful and productive enterprise.

                       III.           A Superior Alternative To A Dissatisfying Job: Many entrepreneurs used to be executives and employees of corporations who were greatly dissatisfied with their jobs. Some were bored with their work and frustrated with the company’s disinterest in their ideas. Such dissatisfaction has been the primary motivation for many entrepreneurs to start their own business.

                      IV.           Income: Although the odds in favor of successful small businesses are slim, many entrepreneurs are enticed by the big profits of highly successful businesses. Others too are motivated by making their money in business.

                         V.           Security: In times of layoffs and downsizing, some entrepreneurs consider running their own businesses as a more secured alternative, especially those in their mid and latter stages of their careers.

3.  Characteristics

In spite of the existence of difficulties in research generalization, some of the identified personality traits and other characteristics of an entrepreneur include the following:

                       I.           Entrepreneurs possess a greater need for independence and autonomy than the managers. Many left successful executive careers to start their own business because of their need to be independent and to be their own boss.

                    II.           Entrepreneurs have a substantial needs to achieve and tolerance for ambiguity; that is, the ability to handle uncertain and ambiguous situations. They are able to perceive ambiguous situations in a positive and challenging way. This allows them to organize their thoughts and make decisions under conditions of uncertainty.

                 III.           Many entrepreneurs have high energy and endurance, substantial self-esteem, and strong dominance: that is, a need to take charge and direct others.

                IV.           The entrepreneur has a lower need for social support, compared to managers. He or she is not a team player or joiner.

                   V.           Many entrepreneurs are found to be associated with risk taking propensity. A number of successful entrepreneurs attribute success in business to their ability to take a chance or calculate risks.

                VI.           Entrepreneurs have a high sense of innovations and creativity. This essential quality of entrepreneurship arises from a powerful search for opportunity in situations that may exist both within and without the business concern.

             VII.           Many entrepreneurs have internal locus if control, which refers to entrepreneurs perception that all events in their lives are under their control and thus they can influence events and determine their own fate.

ENTREPRENEURS TASK

·      Planning

·      Organizing

·      Controlling

·      Managing people/leadership

·      Coordinating

·      Directing

BENEFITS OF ENTREPRENEURSHIP

         The success of every entrepreneur is not attributed to him or her alone but also to the community he or she is established. The following are the benefits of an entrepreneurship;

     I.           Independence: Owners of the business do not have to follow strict orders and working hours set by the top management.

  II.           Satisfaction: One becomes highly satisfied when ones skills, hobby and interests are turned into reality.

III.           Financial reward: Through hard work, the sky becomes their limit. Entrepreneurs built most of our great fortunes.

IV.           Self-esteem: One develops a great sense of accomplishment and happiness when something valuable is created.

 V.           Developments of new markets: Entrepreneurs can create customers who would offer demand of their products and services.

VI.           Mobilization of resources: Entrepreneurs are able to organize the factors of production which includes land, labor and capital. They put these resources together effectively and efficiently to produce good service.

VII.           Introduction of new technology: As a result of their innovative skills, they are able to research and come out with something new. This help to transform the economy.

VIII.           Creation of employment: The biggest sector of the economy which offers most employment is the private business. Examples of such business include KAMA, MELCOM,TOBINCO, etc. 

Content created and supplied by: Richie-Rich (via Opera News )

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