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Main Dictionary E

Entrepreneur

Entrepreneur is a person who runs his/her own business and makes profit. It is one of the most risky types of headship but also one of the most rewarding as almost all of the work is done by the entrepreneur himself/herself.

Complexity of the Entrepreneur’s job

Entrepreneurs usually bring to the market new goods and services for society’s needs satisfaction. The role of entrepreneur in the economy of the country is quite important as entrepreneur provides the labor market with employment opportunities. In order to set up a company an entrepreneur has to develop a business plan which would contain important information about the business area, estimated expenses and profit, and the necessary personnel. 

After doing all of the paperwork the entrepreneur hires essential employees and forms the firm’s budget, starts the hardest period of business management. However, even though it might seem an easy job of being an entrepreneur who just makes a lot of money for doing practically nothing, it is not like this in real life. Unlike most of other professions, there is no clear plan what steps the entrepreneur has to follow for becoming successful.

Becoming the Entrepreneur

Anyway there are some stages that should be followed. List of some of them is presented below.

Skill diversity. Generally an entrepreneur is a skilled individual who knows the basics in certain fields. The absolute must-haves are bookkeeping and accounting, management of workforce, cash resources and salesmanship. But in order to be successful, the entrepreneur has to be persuasive and take only justified risks. Evaluated threats help to estimate whether a specific decision will harm a company or not.

Financial stability. When starting a business it is hard to get profit instantly, revenue receiving usually takes months or even years. Concerning this fact, the entrepreneur needs to make sure of having enough monetary assets for maintaining the firm and himself/herself. With this purpose most of the entrepreneurs should raise a “rainy day fund”. It will help them with unforeseen expenses or in case of a business emergency. 

Networking. Social skills and right contacts enhance a firm's expansion. Some links can lead to a company's  influence enforcement, increase in number of clients or access to the new suppliers. There are various options of places where important people can be met. An entrepreneur should attend specialized conferences and expositions, participate in diversified exhibitions and make contacts with those who might help him/her on his/her way to the succes.

Market analysis. On the business planning stage to avoid failure an entrepreneur should conduct a market survey to figure out the level of competition, good or service popularity among consumers, packing and transporting expenses, etc. Market analysis facilitates proper business planning. It helps to estimate the approximate demand on the item in a particular district. 

Bootstrapping. This term refers to the way of the company financing with the own money of an entrepreneur, without attracting any outside investment. It also allows entrepreneurs to experiment more with their product because they don't have the pressure of investors who are waiting for immediate results and profit. Instead, they are able to perfect their product. However, it also contributes to the risk of launching as trust of influential investors might help to promote the company and make it more popular among consumers.

Channels of distribution. Sales channel is a chain of individual and/or legal entities involved in the process of purchase and sale of goods from its producer to the consumer. Market analysis normally covers the search and the determination of distribution channels. Understanding where to dispose goods and services produced assists in acceleration of business expansion.

Problem solving. At any stage of goods or services production and distribution problems appear. As the entrepreneur takes full responsibility for the enterprise, it is his obligation to address any issue that raises. Essentiality of identifying the reason for the appeared difficulty is indisputable and it is understandable that any issue should be prevented.

Taxation. Before setting up a business it is important to understand what type of taxation the company will be subject to due to the various kinds of tax advantages concessions.

Personality of an Entrepreneur

There are characteristics that most of the entrepreneurs are in congruence with. They are:

  • determination;
  • creativity;
  • courage;
  • communicability;
  • flexibility;
  • devotedness.

Determination. Even a small team needs someone to take a leadership role. Being a successful entrepreneur means taking responsibility for hard decisions. Listening to advice and taking the opinions of others into account is also important. But an entrepreneur has to keep in mind that he/she takes all the responsibility for the company’s actions.

Creativity. Goal of an entrepreneur is to come up with ideas that will be solutions to ordinary people’s problems. The ability to intuitively recognize a potentially successful idea is more important in business than anything else. A perfect idea, unconventional approach and properly presented is the key to success.

Courage. Entrepreneurs are venturous as even planning to start their own business needs some courage. If a person is not willing to take risks, most of the opportunities for the company’s growth and development pass by. It is also crucial to keep the head cool. Not all of the suggestions might be useful for the business so nothing has the same importance as analyzing. Entrepreneurs are responsible for the company’s success. That is why entrepreneurs cannot really rely on other people’s opinions.

Communicability. Entrepreneurs are those who almost constantly have to communicate with others. Important quality of an entrepreneur is to know how to earn a reputation as a professional and a person who is easy to relate to and rely on.

Flexibility. Committing to an initial plan that does not fit the current situation is unlikely to be good for business. In dealing with clients, contractors, potential partners, etc., flexibility is much more valuable than stubbornness and a desire to prove a point.

Devotedness. Entrepreneurs can't do things halfway. Entrepreneurs devote most of their time and effort to business. It is easily accomplished by wise time management that helps to distribute time for both work and personal life. Tasks’ tracking supports productivity during the day.

Kinds of the Entrepreneurs

According to the personality traits and other factors following kinds of entrepreneurs are distinguished. 

Creator. They seek to set up scalable businesses within a short period of time. Creators  form a strong business by hiring unique employees and attracting influential investors. Their personalities are perfect for the fast firm’s expansion but it might be hard for this type of entrepreneurs to build personal and business connections.

Go-getter. This kind of entrepreneur can be described as optimistic, fortunate and doing everything at the right time. They are aimed at getting higher profit and business development. However, sometimes these entrepreneurs can be impulsive as they are following their thoughts not the statistics.

Pioneer. These entrepreneurs are those who come up with amazing ideas of goods or services that no one has thought of before. Instead of being focused on revenues, these entrepreneurs develop their ideas that can be useful for society. 

Specialist. These entrepreneurs are analytic-minded and quite cautious. Their skills are earned with the help of education. An enterprise set up by this type of entrepreneurs, usually enlarges slowlier than by creators but is more attractive to the customers and investors who are caring about stability.

Classification of the entrepreneurships

Different kinds of entrepreneurs provide the economy with various enterprises. Their type depends on the focus of the entrepreneur, the object of capital application and results the entrepreneur aims at.

Small business is the most popular one among entrepreneurs. It is usually run and invested in by individual entrepreneurs without investor recruitment. Small companies generate low profit but enough for maintaining a family.

Corporation. An opposite of small business, the corporation is set up by the entrepreneur who wants to get great profits. Corporations have to adapt to the market demand for that reason the entrepreneur with his/her team needs to keep in mind all the changes and modify their product or produce a new one that would fit the current situation. With this purpose new divisions are opened within a company where new employees are hired.

Startup is usually established when the entrepreneur invents something that the world has never seen before and hires a team for distribution of this good or service. This kind of entrepreneurship requires enormous investments.

Non-profit-making organization. The entrepreneur who establishes a non-profit company is nor looking for revenue. The main purpose of the entrepreneur is to make our world a better place through saving the environment or raising funds for solving society’s problems.

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