An entrepreneur is one who undertakes the risk of investment to create and market a good or service for financial gains. He is very perceptive and takes advantage of business opportunities that will generate high profits. Entrepreneurs can be sole traders, partners in a business or a group of shareholders.
Entrepreneurs are of vital importance to an economy. They are motivated by their own self-interest to make profits and in so doing provide employment, create goods and services and generate revenue impacting on the economy’s level of national income and hence potential for economic growth.
The entrepreneur is a shrewd investor and takes calculated risks i.e. ones that minimize loss when choosing investment opportunities. The entrepreneur is the conceptualizer of the initial business idea. He must identify the best resources that suit the business operation and ensure the efficiency of each resource employed. For example, training workers, using machinery to increase labour productivity, maximizing the use of factory and shop space and borrowing money at low interest rates. The entrepreneur must continuously evaluate the performance of his ventures. Information can be garnered from the balance sheets and Management Information Systems.
Personal Qualities of an Entrepreneur
Entrepreneurship requires the following characteristics for success:
1. The creativity to innovate new product and ideas.
2. The drive and determination to be successful.
3. The ability to take calculated risks.
4. The flexibility to adapt to changes in the market and industry.
5. Very goal- oriented to purposely and aggressively accomplish task and meet objectives.