- Concept of Entrepreneurship
- Types of Business Entrepreneurship
- Business Entrepreneurship
- Role of Entrepreneurship
- Qualities of Entrepreneurship
- Limitations of Business Entrepreneurship
How would you define an entrepreneur? Can you tell by looking at an entrepreneur that he is an entrepreneur? The widely accepted definition of an entrepreneur can be given as “a person who organizes, manages and undertakes the risk-taking work of the business.”
The nature of a person is karma predominant. Entrepreneurship is a part of life. An entrepreneur does not create wealth for himself, but is a driver of comprehensive economic and social development. In fact, business entrepreneurship is not only a skill, technique and ability, it is also a way of life. Entrepreneur is the vehicle of progress and change in the society. He has the ability to take risks in a big way, the ability to create and take advantage of new opportunities, foresight and constantly adjust with the external environment.
The origin of the ideology of entrepreneurship in commercial terms dates back to the 18th century, but the word ‘entrepreneur’ has been used even before this century. Many economists, industrial thinkers and scholars have expressed their views on this in their own way. There has been a lack of unity in their views. According to William Vomol, “The subject of entrepreneurship has been theoretically common”. To establish, to accept new reforms and changes in the enterprise, to organize the means of production, to give birth to new techniques and systems, etc. is called courageous. Various scholars have clarified the following aspects regarding entrepreneurship. ,
Ability to take risks: – Many scholars have accepted entrepreneurship as the ability to take risks. It is the belief of the scholars of this prestigious or ancient ideology that an entrepreneur has to face many uncertainties, internal and external changes, competition, decline, obsolescence, decrease in prices, natural calamities etc. in starting a business and running it continuously. And these uncertainties give rise to risks. According to Richard Cantillon, “Entrepreneurship is the act of taking unlimited risks and an entrepreneur is a representative of the purchase and sale of goods at an additional cost.” Frank H. Knight refers to a specific group of individuals who are faced with uncertain capital. According to him, entrepreneurship is “the ability to take risks, the willingness and the power to provide guarantees against uncertainty.”
Management skills :- According to scholars, management skills are an important element of entrepreneurship. J. s . Mill is of the view that entrepreneurship is the ability to take risks and face uncertainties as well as supervision and direction and control in business. Similarly, Marshall is of the view that “the entrepreneur has to act as a courageous manager along with establishing the business.”
Qualification of the organization :- J.B.S. According to the idea of, “Entrepreneurship is that economic component which organizes all the means of production.” In this way, he has considered entrepreneurship as the act of organizing all the means of production, land, labor and capital in a coordinated manner.
Innovative ability: – Joseph Schumpeter first presented his concept of entrepreneurship as innovation ability. According to his view, “In a developed economy, the entrepreneur is a person who introduces something new in the economy. Thus giving birth to new changes in the business is to accept and implement such as new technology, new goods or services, new markets.” , is to get maximum benefit from minimum efforts by using new methods and means of production and distribution etc.
Ability of leadership and creativity :- According to Frederick Harbison, “It is very important to have leadership and creativity in entrepreneurship and not innovation. . According to this, the ability of creativity gives rise to new ideas, vision and understanding and leadership ability translates such ideas into work in a coordinated manner to achieve economic objectives. Leadership and creativity are very necessary for organization building ability and organization Decision ability is an important basis of economic and industrial development. It is very important to have the ability to take decisions in uncertainty.According to them, entrepreneurship is not a casual behavior but as a psychological motivation and it is this motivation that makes a person enterprising or courageous.
Definition of Entrepreneurship: – Entrepreneurship refers to that tendency, which is related to bearing risk and uncertainty and by which an attempt is made to provide some specialty. Thompson and Strickland have tried to describe it as strategic ability, in which suitable strategies are selected keeping in mind the organizational strengths and weaknesses in view of environmental opportunities and challenges, so that strategic advantage can be achieved. Broadly speaking, entrepreneurship is the ability to innovate, lead and reap strategic benefits with the ability to take risks in business. It is the ability to bring new changes in the business, take advantage of them, change the established organizational processes. Lin and Lin have used the term neo-entrepreneurship for entrepreneurship, which includes the ability to adapt the organization to the times, adopt inner adventure and achieve competitive advantages. Various scholars have defined entrepreneurship in the following ways: Prof.
According to Pareek and Nadkarni, “Entrepreneurship refers to the simple nature of setting up new ventures in the society”.
V. R. Gaikwad, explaining the meaning of entrepreneurship, clarified that “By entrepreneurship we mean innovation. It is the motivation and willingness to take risks in the face of uncertainties, that is, it is the ability to see future events in such a way that later Be proven right.”
According to Joseph A. Schumpeter, “Entrepreneurship in a developed economy is that which brings innovation to the economy. Such as adopting a new method of production, which no one has adopted before, producing something which the consumer is not already familiar with, Using new sources of raw materials and exploring new markets etc.”
According to Prof. Rao and Mehta, “Entrepreneurship is a creative and innovative response to the environment. This definition of entrepreneurship emphasizes the adoption of innovation and creativity in business to suit the changing circumstances. Franklin Lindsay, Richman and Koppen also hold the same view.
According to Lindsay, Entrepreneurship is the act of anticipating the future needs of society and successfully meeting these needs through innovative, creative and imaginative combinations of resources. Describing entrepreneurship as an act of innovation and dynamic leadership, Richman and Copen have written that “Entrepreneurship refers to a creative, external or open approach.” It is an act of innovation, risk taking and dynamic leadership. ,
Both the above definitions of entrepreneurship emphasize on creation and satisfaction of utilities and values along with innovation. And accepts the entrepreneur as a dynamic representative or leader of the society. Kurratakas and others also accepted this view and tried to describe entrepreneurship as the ability to find and exploit new opportunities by making desired adjustments in the existing internal resources.
According to Peter Kilby, “Entrepreneurship is a combination of a wide range of activities. It involves the acquisition of knowledge of market opportunities, the combination and management of the means of production, and the adoption of production techniques and goods. has tried to define entrepreneurship as decision making ability.
According to H. N. Pathak, “Entrepreneurship includes all those broad areas in respect of which decisions have to be made. These decisions can be broadly divided into the following three categories:-
- (a) knowing the opportunities,
- (b) organizing the industrial unit
- (c) operating the industrial unit as a profitable, dynamic and developing organization.
“Stepneck defined entrepreneurship as the ability of an organization to take risks and the willingness to diversify and generate innovation. Schumpeter considered ‘innovation’ to be a key element of entrepreneurship, as the pace of economic growth with new reforms dependent on changes and innovations.
According to it, “Entrepreneurship is an innovative act. It is a ‘leadership’ rather than a mastery.” Management scholar Peter F. Draker, Tax has tried to describe entrepreneurship as the act of making more and more opportunities in business meaningful, according to it, “It is meaningful to maximize opportunities in business.” In fact, this is the correct definition of entrepreneurship.
Thus, entrepreneurship is the process of using entrepreneurial abilities to innovate, establish business ventures, demonstrate strategic ability and make better or meaningful use of opportunities. It is a complex combination of economic, social, psychological and various other variables. Martin Luther King has said that entrepreneurship is neither a science nor an art. It is a behavior based on knowledge. In entrepreneurship, the end is achieved by means of knowledge. Entrepreneurship is a dynamic process of creating increased prosperity. This prosperity is created by individuals who take the major risks of equity, time and career commitment in terms of delivering value to a product or service. Entrepreneur creates value in a product or service through his tact and resources. Peter F. Draker is of the view that ‘Entrepreneurship is a process of innovation that reallocates resources to new opportunities. Creation of new opportunities This happens due to the unusual resource combination of the entrepreneur and the ability to take risks. Thus, entrepreneurship is a dynamic process in which fewer entrepreneurial firms die out from the enterprising firms. It is an undertaking to make business successful through innovation, risk appetite, accepting challenges and excellent management.
Characteristics of Entrepreneurship :- The main characteristics or characteristics of debate are the following:-
1. Lonely person or group of persons:- A loner is a person or group of persons who establish a new undertaking or do the work of innovation. In a developing economy, a person setting up a new enterprise is called an entrepreneur, while in a developed economy, a person who undertakes the task of daring innovation.
2. Establishment or innovation of a new enterprise:- The second major characteristic of entrepreneurship is that it establishes a new undertaking or does the work of innovation. In a developing economy, a person setting up a new venture is called an entrepreneur, while in a developed economy, a person who undertakes the task of daring innovation.
3. Carrying risk or uncertainty:- The third important characteristic of entrepreneurship is that it takes risk or uncertainty in setting up an enterprise or undertaking innovation. The success of the undertaking depends on its return. If the venture is successful, there is profit. On the contrary, if the undertaking fails, it suffers loss. The truth is that during the gestation period of the enterprise, only the entrepreneurs / promoters get the money. People invest their money when the enterprise is either in a position to start production or actually starts production.
4. Providing capital: – The fourth important feature of entrepreneurship is that at the time of establishment of the enterprise, he invests the initial capital from himself. Even after the establishment of the enterprise, most of the capital is invested by the entrepreneur.
5. Trusted Relationship:- If the enterprise is established by entrepreneurs or entrepreneurs in the form of a company form, then a trusting relationship is established between the company and the entrepreneurs. In such a situation, it becomes the duty of the entrepreneur to present all the facts related to the formation of the company to the Board of Directors and the members of the company in the correct form. Also, do not make any kind of profit directly or indirectly, and if such profit is made, then disclose it without any hesitation.
6. Return of the enterprise to be profit :- ‘Profit is the return of risk. ‘ Since the entrepreneur takes risk, he gets the return of his risk. With the hope of getting profit, he does the work of establishment or innovation of the enterprise.
7. Entrepreneurs can be made: – There was a time when it was a common belief that “Entrepreneurs are born, not made.” Now this notion has been proved wrong and in its place the ideology of Entrepreneurs can be made. Is . Today, various types of training programs are being run in almost all the states to prepare entrepreneurs. In Rajasthan, this work is being done under the aegis of Rajasthan Consultant Organization. Entrepreneurs trained by it have established many small, medium and large scale industries. For this purpose, the Central Government has decided to set up the National Institute for Industrial Assistance and Small Business Development.
8. There are different types of Entrepreneur:- One of the main characteristics of an entrepreneur is that they are of different types. Some daredevils believe in setting up new ventures, while some believe in doing the work of innovation. Not only this, some entrepreneurs believe in copying and making new things, as well as some entrepreneurs are supporters of change, while others oppose any kind of change.
9. In the form of government: – Earlier it was said that if the government will do the work of entrepreneurship then what will the public do? That is, the function of the government is to run the administration and protect the country. Entrepreneurship means doing business work is the work of the public, but now this belief has been nullified. At present, governments are setting up and running business enterprises in almost all the countries of the world. In India also, the Central Government and the State Governments have established various government undertakings. The government usually acts as an entrepreneur when it becomes necessary for it to do so in public interest.
10. Entrepreneurship is necessary in all activities: – It is a common belief that the field of entrepreneurship is limited to economic activity only, but now this assumption has been proved false. Presently the need for entrepreneurship is in all sectors, both economic and non-economic. Peter F. According to Drucker, “Entrepreneurship is by no means confined to the economic sphere, though it is born from here. It is concerned with all activities other than those related to the existence of human life.”
11. Entrepreneur is different from manager:- Entrepreneur is different from manager. For example, the main function of the entrepreneur is to bear the risk of the business whereas the main function of the manager is to collect and coordinate the various factors of production and mix them in optimum proportion. Not only this, the return of the entrepreneur is profit whereas the reward of the manager is the salary.
12. Means of Production :- Students of economics know that entrepreneurship is an important and independent means of production. In fact, it is the courage who collects and organizes all the other means of production.
13. Entrepreneurship is a developing behavior:- One of the characteristics of entrepreneurship is that at present it has become a developing behavior. “Now the more experience the entrepreneur gets and the more adventures he does, the more shine he gets. The more refinement he gets, the more he gets success in his work. Few years ago people showed less entrepreneurial spirit. But now as the experience of the people as entrepreneurs is increasing, in the same way, they are getting improved, the more success they are getting in their work.
14. The cornerstone of industrialization and economic development :- The basis of economic development is industrialization and the basis of industrialization is entrepreneurship. Thus entrepreneurship is the basis of all industrialization and economic development.
There is no homogeneity in the entrepreneurial class. It exists in many forms. Entrepreneurship forms can be described on various grounds, which are as follows:-
(A) On the basis of ownership of capital :- On the basis of ownership of capital, the following forms of entrepreneurship can be :-
- (i) Low Entrepreneurship :- When a person or group of persons start business,take risk, and innovate in the private sector, then it is called private enterprise. In capitalist countries like America, Britain, Germany, etc., due to private enterprise, rapid economic development has taken place. Private entrepreneurs start business projects cautiously.
- (ii) Government or Public Entrepreneurship: – When business undertakings in government or public sector are undertaken by the government, it is called government or public entrepreneurship, often in socialist and communist countries such as Russia, China etc. The form is visible. Most of the industries in these countries are developed in the public sector. Public entrepreneurship has also expanded in India after independence.
- (iii) Joint Entrepreneurship: – It is a combination of private ownership and state ownership. In the case of joint entrepreneurship, although the private sector entrepreneurs are also provided opportunities for investment, the role of the government (Central, State or both) is prominent. The role of joint entrepreneurship is increasing in India for balanced economic development and revival of sick units.
- (iv) Co-operative Entrepreneurship:- When many individuals start or renovate undertakings with mutual cooperation, it is called public entrepreneurship. Co-operative entrepreneurship has played an important role in the establishment of sugar mills in India. The importance of cooperative entrepreneurship is increasing in dairy industry, small scale industry, agriculture industry etc.
India is a mixed economy country. Although private entrepreneurship was developed in India before independence, but after independence, there has been an unprecedented expansion of public entrepreneurship. Along with private and public entrepreneurship, joint and cooperative entrepreneurship is also developing in India.
(B) On the basis of attitude towards development or change: – On the basis of attitude towards development or change, there can be the following two forms of entrepreneurship:-
- (i) Traditional or developmental entrepreneurship :- If the entrepreneur takes the changes very slowly. If they apply, spend less on research and development, use the traditional process of production and have a tendency to enter only existing industries, then it is called traditional or developmental entrepreneur. These entrepreneurs believe in the natural pace of development. This is the nature of most entrepreneurs in India.
- (ii) Modern or Revolutionary Entrepreneurship: – Entrepreneurs who adopt new methods of production, are pioneers in innovation, start risky plans and establish business ventures at a rapid pace, then they are called modern or revolutionary entrepreneurs. The ideology of revolutionary entrepreneur has contributed significantly to the industrial development of Russia, China and some countries of Eastern Europe. Modern educated youth also believe in revolutionary entrepreneurship.
(C) On the basis of localization: – Entrepreneurship can be centralized or decentralized on the basis of localization:-
- (i) Centralized entrepreneurship :- If most of the entrepreneurs are concentrated in one place. And new entrepreneurs are also attracted towards these places, so it is called centralized entrepreneurship. Where business units are already operating. There are many basic facilities available. New entrepreneurs are attracted to these places to take advantage of these facilities, but from the point of view of economics it is not profitable to establish business enterprises at these places after a limit.
- (ii) Decentralized Entrepreneurship:- When entrepreneurs enter different parts of the country and establish business ventures, they are called decentralized entrepreneurs. The government and the institutions established for the development of the entrepreneur can develop decentralized entrepreneurship by providing facilities and motivation to the entrepreneurs in the backward areas.
(D) On the basis of size:-
- (i) Large or long entrepreneurship :- When more capital is employed in the business, more workers are employed, then it is called long or large entrepreneurship. In India, Tata, Birla, Dogad, Ambani, Sarabhai, etc. come under the category of large entrepreneurs. This is the highest stage of entrepreneurship development. There is a fear of developing monopoly tendencies in these conditions
- (ii) Small entrepreneurship: – When the size of the business unit is small, relatively capital is invested in the business and less labor is employed, then it is called small entrepreneurship. The development of entrepreneurship mainly refers to the development of small entrepreneurship. With the development of small entrepreneurship, the development of rural and cottage industries is possible in the country.
In addition to the above, entrepreneurship can be urban and rural also. If the development of entrepreneurship is limited to big cities only, then it is called urban entrepreneurship. Apart from this, if entrepreneurship is developed in small villages and towns, then it is called rural entrepreneurship. Due to the development of urban entrepreneur, many economic and social problems in the cities such as slums, unrest, polluted environment, social crime etc. start increasing.
There has been a lack of consensus regarding the work of business entrepreneurship, different scholars have mentioned different functions of entrepreneurship. Therefore, before describing the works of entrepreneurship in detail, the works mentioned by some prominent scholars are being mentioned below.
According to the economist Richard Cantillon, the following are the main functions of entrepreneurship: –
- Buying goods at a fixed price.
- Selling goods at an uncertain price
- Taking a risk.
According to the economist Adam Smith, the main functions of entrepreneurship are: –
- Providing capital, and
- Managing the enterprise.
According to the economist JBC, the functions of entrepreneurship are :-
- To collect the means of production.
- To manage .
- Take risks .
According to the economist Acad Marshan, the following three main functions of entrepreneurship are: –
- Risk taking.
- To do innovation and research
- To manage.
Joseph P. The main functions of entrepreneurship according to Schumpeter are: –
- To produce something new.
- Use of new method of production.
- Exploring the markets.
- To find new sources of raw or semi-finished goods.
- Creating and operating a new organization in an industry.
- The main functions of business entrepreneurship according to James Square are: – Promotion of business.
- Arrangement of capital.
- Risk tolerance.
- Technological innovation and adoption.
- Managing the business.
In conclusion, the main functions of entrepreneurship are the following:-
(I) Risk bearing functions: – The primary function of entrepreneurship is to take risks. Modern business carries various risks and uncertainties. Some of these risks are such that the adventurer becomes free by insuring them, such as fire, accident, theft, dacoity, earthquake etc. These are called caste risks, but on the contrary there are some risks which cannot be foreseen and hence cannot be insured. These are called unknown risks which the businessman has to bear, such as competition risks, risk related to change in interest, fashion and demand bullish-recession risk, related to change in interest, fashion and demand etc.
(II) Promotion related work:- The second important function of entrepreneurship is to promote its undertaking. For this reason some people also call the entrepreneur ‘promoter’. Generally, an entrepreneur performs the following activities related to promotion :-
- To give birth to the idea of establishment of the enterprise.
- Obtaining information related to the idea.
- To study political policy.
- To check the feasibility and viability of the idea.
- Conducting marketing research.
- Selecting the form of ownership.
- Selecting the location of the undertaking.
- Determining the size of the undertaking.
- Determining the objectives and scope of the undertaking.
- Selection of equipment and manufacturing process.
- Estimating the initial capital requirement and financial planning.
- Laying the plant.
- Decision making regarding the nature of management and organization.
- Completion of registration and other legal formalities.
- To mobilize necessary resources and facilities.
(III) Work related to organization and management :- The success or failure of any undertaking depends to a great extent on its efficient organization and management. Therefore, the third main function of entrepreneurship is undertaking or organization and management. Organizational entrepreneur should choose the appropriate form of organization according to the nature and size of the enterprise. Under this, he assigns the right work to the right person and bots all the related work into different experts and groups of people.
(IV) Finance related work: – In this work of business entrepreneurship, while arranging necessary finance according to the nature and size of the undertaking, the entrepreneur should do a comparative study of various sources to get finance and should choose relatively economical financial sources. For this he should do financial planning. Finance can be arranged by private means and by taking external sources like shares, issue of debentures, loans from financial institutions, etc.
(V) Innovation work: – In the context of a developed economy, the meaning of entrepreneurship is taken from the innovator, so one of the main functions of the entrepreneur is to innovate. Innovation refers to the introduction of new topics in business. According to Peter F. Ecker – “It is not as important for a business to grow up as to keep innovating continuously”
- Discovering new items
- To produce new goods
- To use new technology, new machines and equipment
- To improve the type, size, color and design and packing of goods etc.
- To find new uses of goods
- To search for new markets
- To improve the office and management system etc.
(VI) Distribution related work:- Entrepreneurship also does the work related to distribution of rewards to the different factors of production according to their marginal productivity. For this he remunerates these means of production (workers, property, capitalists and managers etc.) in return for their services. After awarding all the resources whatever is left with the entrepreneur is his own share i.e. profit.
(VII) Marketing related work:- In addition to the above mentioned tasks, modern marketing related work also has to be done. For this, he should study the distribution channels prevalent in the market and select the most useful medium for himself, generate demand. To maintain and increase it, use the above advertising and sales promotion tools and hire qualified and experienced sellers.
Importance or role of adventure :- The pace of industrialization and economic development of any country depends on its courage. For this reason, adventure is also called the basis of industrialization and economic development, the role of adventure is undeniable in all underdeveloped, developing and developed nations.
The role of business entrepreneurship is important in the economic development of a nation. Entrepreneurship can solve problems like unemployment, poverty, low standard of living, low productivity. An ideal industrial society can be established by the development of entrepreneurship and economic and social problems arising out of centralization of industries can be overcome. In short, the need for the development of business entrepreneurship or the importance of entrepreneurship can be explained by the following points:
1. Development of entrepreneurial tendencies:- With the planned development of entrepreneurship, entrepreneurial attitudes and tendencies can be developed in individuals. Entrepreneurial abilities and abilities can be developed in the training programs [A happy and prosperous society can be established by developing tendencies like achieving something in individuals, leading an independent life, engaging in creative activities.
2. Encouragement of innovation: – As a result of entrepreneurship, more expenditure is spent on research, scientific and professional thinking is encouraged among the individuals and technical knowledge increases, hence innovations are born in the society. In place of the old methods of production, new methods are adopted, new goods are produced, due to which the organizations expand.
3. Establishment of Successful Enterprises:- Establishment of more and more successful units in the business sector will be possible by training and equipping the entrepreneurs with equipment. Undeveloped, unskilled and lazy entrepreneurs are unable to provide eternal life to the business organization. Entrepreneurship development undertakings will be less likely to fail, thereby making the best use of national resources. Also, the burden of revival of sick units will not increase on the government.
4. Balanced Economic Development: – As a result of entrepreneurship, the developmental distance spread in different provinces can be reduced. Developing countries are far behind in terms of technical and commercial development among developed countries. Similarly, there is a huge difference in industrial and commercial development in different districts in the same country. These provincial and regional differences can be reduced by the development of small entrepreneurship.
5. Best use of resources: – The best use of natural and human resources like natural resources, raw materials, human skills etc. prevalent in different areas of the country is possible only through the development of entrepreneurship. Entrepreneurs make use of unused resources, increase production efficiency and make best use of resources with managerial skills.
6. Increase in employment opportunities: – With the development of entrepreneurship, new ventures are established, due to which more people, especially the people of the local community, get employment. Educated unemployed get self-employment opportunities under development programs. Innovations lead to expansion of enterprises, hence creating additional employment opportunities. With the development of entrepreneurship, employment can also be created for women.
7. Self-reliant society:- The establishment of a self-reliant society is possible only through productivity revolution in different production areas of the country. The developed entrepreneurship will contribute to the promotion of exports as well as meeting the needs of the local community by increasing the production of business ventures. The increase in employment and productivity will improve the standard of living of individuals, encourage savings and capital formation, reduce import of goods, thereby realizing the dream of establishing a self-reliant society.
8. Solution of economic and social problems: – With the development of entrepreneurship, business enterprises will be established in different parts of the country, due to which the economic and social problems prevailing in the cities like class conflict, polluted environment, construction of slums, social crimes etc. will be reduced. Developing business trends in rural areas will reduce social evils and people’s attention will be inclined towards positive tendencies.
There is no consensus among all scholars regarding the qualities of an entrepreneur. The reason for this is that an entrepreneur has to do various types of work from the establishment of business and industry to the after-sales services of goods, for the performance of which it is necessary to have many qualities.
AC According to Bradford, the leadership of business and industry in the present era requires not only clear knowledge of technical fundamentals, but also knowledge of the principle of cooperation between different business communities, active cooperation in the social life of the nation, fundamentals of economics. Introspection, deep sympathy for humanity, balanced critical intelligence in the selection and teaching relationship of individuals and a vast outlook inspired by the highest ideals of service are essential.
According to McClelland the following qualities are found in a successful entrepreneur:-
- Extraordinary creativity.
- Risk ability and strong desire to achieve success.
A systematic study of the qualities of a successful entrepreneur can be done under the following:-
(1) Physical and mental qualities:- If seen, then his physical and mental qualities contribute significantly to the success of an entrepreneur. These physical and mental qualities are as follows:-
- Effective personality: – The success of the entrepreneur depends on his personality. An ideal entrepreneur is one whose physical, mental and moral development is of the highest order. The influential personality of the personality is formed according to the governments, environment and favorable circumstances of his birth, it depends on the circumstances.
- Accuracy or Accuracy: – The second main element of success is that the adventurer should have complete knowledge of what I am saying and what I mean? Since he has to deal with ordinary needs and they depend on pure thinking, therefore there should be purity in the thoughts of the courageous.
- Diligent: – “Hard work is the key to success” Success automatically kisses the feet of those who work hard. Therefore, for the success of the entrepreneur, it is absolutely necessary for him to be hardworking. Only by working hard will he be able to achieve his goal. Therefore, the courageous should keep on working hard. He should always keep this teaching of the Gita in mind “Karmanyavadhikaraste ma phaleshu kadachanah. An entrepreneur should always work hard without worrying about the fruits. The fruit of hard work is always sweet.” Works while labor is ninety-nine percent. ,
- Enthusiasm, Courage, Perseverance and Foresight :- It is absolutely necessary to have these four qualities in a successful entrepreneur. Due to various ups and downs in business, even the best of adventurers fail. Despite the failures, the courageous should always work with enthusiasm, courage and perseverance. Someone has rightly said that “The path of business is not a seed of flowers. There is a risk in every step of the way, so it is very difficult to achieve success without courage. He must be a visionary.” Failure is the key to success. He should always keep moving forward by following this principle.
- Vivek and Imagination- Power: – Before starting any work, it should be considered seriously. There is a saying in this regard – “Whatever you do without thinking, you will regret it”. In the words of the famous American scholar Andrew Carnegie, “A person who is not imaginative, has no desire for progress and does not direct his life towards a higher goal, that man can never be successful, nor can he ever succeed in other people.” In order to achieve success in this way, every entrepreneur must first have ambition, that is, a strong desire to do any work, and then a rational imagination.
- Clever and alert: – Any adventurer who is eager for success, has to keep himself in contact with the outside world and he has to maintain his awareness. It is necessary not only to have the power to understand everything in him, but at the same time he should also be alert to the external environment and the activities taking place in that business.
- Skillful Critic: – A courageous can be successful in his plan only when his good and bad, before bringing it into action, after studying it well and bringing changes in his plan accordingly, but criticism is not for criticism only. Be creative, be creative. Therefore he should also be a skilled critic.
- Knowing the value of time: – A successful entrepreneur should always keep in mind that ‘time is money’. There is no talk of guesswork in the system, all the work depends on the numbers and reality. An adventurer who has given due attention to numbers and timing, will always be ready to make the most out of it when the opportunity arises.
- Maturity :- Entrepreneur should be fully mature mentally. He should have the ability to understand and fulfill his responsibilities. Not only this, he should also have the ability to praise critics after listening to his criticisms, maintain his mental balance while talking to excited people and other people.
- Dynamic Ideas:- An important component of the success of an entrepreneur is his dynamic ideas. Due to his dynamic thoughts, he will be able to use the latest techniques, modern tools and equipment and latest management techniques in the establishment and operation of the business, only then he will be able to be called a new innovator.
- Optimism:- Entrepreneur has to face risks and uncertainties from time to time in his work. It is not necessary that the entrepreneur should get success in his work from the very beginning. In such a situation, if he is not optimistic, then it will definitely become difficult if not impossible for him to work.
(II) Social and Character qualities :- In addition to physical and mental qualities, it is also necessary to have character qualities in an entrepreneur, only then he will be able to achieve prestige in the society and can make a good impression on the employees and outside journalists. From this point of view it is necessary for a successful entrepreneur to have the following social and character qualities:
- Character strength:- To be with moral strength, a leader should be religious and god-fearing. He should be the one who self-inspects every work done by him. In the words of Prof. Hawking, “A person of character pours his own mind into his people through his eyes, speech, gesture and speech. Entrepreneur cannot get success without raising moral character.
- Truth and Humanity :- Of Entrepreneur Truth and humanity are the only basis for success and progress. This statement is absolutely true that “Honesty is the best policy of business”. “By lying or deceit, only a momentary gain can be achieved, but in the end the apocalypse is certain.
- Collaborative ability:- An important quality of a daredevil is that he should have the ability to work together with as many people as possible. He should have the ability to compromise, adjust, adapt and should not feel any hesitation in admitting his mistakes when the time comes.
- Friendliness and Behavior:- A successful entrepreneur should also have the quality of sociability and tact. With sociability, the entrepreneur can freely mingle with other individuals and inculcate in them affinity and trust towards himself.
- Namarta or Humility :- The entrepreneur should always treat all the parties with humility. Humility does not mean never taking care of one’s own reputation and necessarily flattering others. He should treat others with humility, courtesy, love, goodwill and sympathy according to his situation. Due to humility, the popularity of the entrepreneur increases day by day when it does not cost him anything.
- Gentle Behavior :- The behavior of the entrepreneur should be soft, charming and polite. Humility, good behavior, tolerance, happiness etc. make an entrepreneur intelligent. Even an enemy becomes a friend by polite behavior.
- Respect: – The entrepreneur should always be respectful, that is, he should treat everyone big and small with respect. In this regard, someone has rightly said that ‘Those who treat others with respect, in a way respect themselves.
(III) Business qualities :- It is also absolutely necessary to have business qualities in a successful entrepreneur. In this context scholar Henry P. Dutton rightly said that “A person who has achieved perfection in the business of becoming a businessman even once, who learns the basic principles of organization economic management, accounting, working with colleagues and their governance, buying and selling, he is very Soon one attains skill and success in business.” In this view it is necessary to have the following business qualities in an entrepreneur
- ‘Vocational Qualification Education and Training’: – For business success, it is very important to have vocational qualification education and training. Is . Today’s era is an era of specialization and competition. In this, not only does the entrepreneur’s experience work, but it is also necessary for him that he should be educated and have received business related training.
- Reputation: – Reputation is an invaluable fund for any entrepreneur, whose profit is not only for him, but it also lasts for generations, provided that the future generation does not do any such work which is not according to the principles of business. be against. Reputation is built by the businessmen’s own honesty, hard work and customer service etc. To maintain this, business organizations have to make big resolutions.
- Leadership Ability:- Leadership refers to that quality of a person by which he guides other people and conducts his activities as a leader. Leadership is the ability by which the desired work is done voluntarily in the group of his followers. According to Marshall, “The entrepreneur is the captain of the industry…. Therefore, he must have leadership qualities.
- Decision Capacity:- An entrepreneur has to take many decisions from inception till the end. The benefit of business opportunities is also available only when the right decisions are taken at the right time, the opportunity once lost, does not come back again. A daredevil who avoids decisions can never become a successful adventurer.
- Ability to bear risk: – The entrepreneur has to perform various managerial functions (such as planning, organization, coordination, control and motivation etc.) in relation to the establishment and operation of the enterprise. For efficient execution of all these tasks, it is absolutely necessary that the entrepreneur should have the ability to manage efficiently.
- Managerial ability: – The entrepreneur has to perform various managerial functions (such as planning, organization, coordination, control and motivation etc.) in relation to the establishment and operation of the enterprise. For efficient execution of all these tasks, it is absolutely necessary that the entrepreneur should have the ability to manage efficiently.
- Ability to face economic difficulties:- Business is an economic activity. Therefore, it is natural to face financial difficulties in business. Therefore, the successful entrepreneur should have the ability to face these financial difficulties patiently without being afraid of them.
- Latest technologies, research and knowledge of changes Change :- is the law of life. In the modern era, latest technologies, research and changes are seen in various fields. It is absolutely necessary for the entrepreneur to have knowledge of these latest technologies, researches and changes. Only then can he do his job efficiently as an innovator.
- Knowledge of human nature and relations: – Entrepreneur should have good knowledge of human nature and human relations, only then he will be able to select qualified, experienced and skilled people for business, can adjust himself from them and assign work according to his ability. Can and can take.
- Awareness of Social Responsibility: – To get success in modern business, it is absolutely necessary that entrepreneurs should be progressively aware of their social responsibility. Every entrepreneur should be fully aware of his social responsibility towards his employees, consumers, government, suppliers and other business organizations. Every entrepreneur should fulfill his social responsibility towards his employees, consumers, government, suppliers and other business organizations.
- Knowledge of National Economic Policies: – It is absolutely necessary for every entrepreneur to have knowledge of the country’s national economic policies (such as industrial policy, industrial licensing policy, import-export policy etc.) related to business and industry. On the basis of these policies, the government controls and regulates the industrial and commercial enterprises of the country.
- Knowledge of market conditions:- If seen, the success of the entrepreneur does not depend only on producing but also on successfully selling the goods produced. For this it is necessary that the adventurer should have a comprehensive knowledge of the market conditions (demands of consumers, fashion, tastes, price fluctuations etc.).
Where entrepreneurship is profitable and useful, it also has some limitations. The major limitations are as follows:-
- Uncertain income:- One of the major drawback of adopting entrepreneurship is that one always has to face certainty of income. Sometimes it can be less or sometimes more. In this way, the entrepreneur also experiences difficulty in maintaining a certain kind of standard of living.
- Gestation:- There is also a limitation of entrepreneurship that some enterprises have a long gestation period. It takes many years to establish and operate such businesses. Projects of large scale enterprises take a lot of time. Entrepreneurs having such resources have to face many kinds of difficulties. People with weak economic condition are therefore unable to adopt entrepreneurship.
- Hard work:- Persons adopting entrepreneurship have to work hard. This has been known from a survey in America (1999). 20 percent of entrepreneurs work 51 to 60 hours per week while 17 percent entrepreneurs work for more than 60 hours per week. In developing countries where the working hours are not strictly regulated by the government, entrepreneurs work even longer than the small entrepreneurs of our country, working 12-14 hours a day (usually more than 75 hours per week). can be viewed. Such entrepreneurs believe that when the institution is closed early, the customer will go to other entrepreneurs, as a result their income will decrease.
- Excessive Risk:- Entrepreneurship involves a lot of risk. The degree of risk is affected by the nature of the enterprise. Some enterprises which are more affected by the factors of the external environment are often more risky, as a result the enterprise and the entrepreneur have to face failure. Surveys in the US found that 35 percent of small businesses fail in two years and 54 percent of businesses fail in four years. 64 percent of businesses are closed within six years.
- The shock of failure: – Entrepreneurs do not face financial loss due to failure in entrepreneurship. Rather, he also has to bear many types of trauma. When the entrepreneur fails, first of all the family members have to face financial difficulties. Failure also hurts the social esteem of the entrepreneur. Not only this, failure also hurts the entrepreneur deeply mentally.
- Limited Opportunities for Fun:- One of the major drawbacks of adopting entrepreneurship is that the entrepreneur gets very limited opportunities for leisure and enjoyment. They are not able to devote any special time for eating, shopping and entertainment with family members. Many entrepreneurs get the opportunity to go on excursions for two weeks only occasionally in life. In a prosperous country like America, about 30 percent of the entrepreneurs have been found like this. Those who have any plan to go on excursions during their holidays.
- Anxiety. Stress and Depression:- People who adopt entrepreneurship are often surrounded by worries and their life is full of stress. The reasons for this are also clear. They invest everything they own on one hand and even mortgage the house properties. On the other hand, there is also concern about increasing competition in the business, behavior of customers, employees etc. As a result, tension arises in their life. They are not able to lead a simple life like a normal person.
- Responsibility burden:- By adopting entrepreneurship, on one hand the entrepreneur gets an opportunity to work independently and on the other hand he also has to bear the burden of responsibilities. India of responsibilities becomes more limitless while the entrepreneur is the only one who takes up entrepreneurship. In such a situation, great difficulty has to be faced in taking many important and long-term decisions. In times of crisis, in many cases, when he has to make a decision, then the shoulders of that single person are leaned by the burden of responsibility.
- Lack of Economic Resources:- One of the major limitation of entrepreneurship is that one can face the lack of finance at any time. The arrangement of fixed capital is often done easily, but the crisis of working capital continues to be present in front of many entrepreneurs. Such collection of goods happens due to high taxes, sudden decrease in sales, selling goods on credit etc. Such entrepreneur always has to face financial crisis. Due to this sometimes there is also a fear of adverse effect on his credibility.
- Fraudulent behavior by employees:- Generally every entrepreneur has to take the services of some kind of employee. The reason is clear that no one can do all the work himself. It is also natural for the number of employees to increase as the enterprise develops, but it is not necessary that all the employees should always remain loyal to their employer. This is the reason that every day the incidents of cheating, embezzlement, misappropriation, theft of goods are heard by the employees. The entrepreneur has to pay a heavy price for the fraud or betrayal.
- Formalities:- After adopting entrepreneurship, it is necessary to fulfill some legal, government and business formalities. But the entrepreneurs of our country have to fulfill many unnecessary legal and government formalities. If a small entrepreneur has to fulfill the formalities of about 30 laws of the country, then his condition can be easily estimated. This has attracted the attention of the government of our country. The government is soon going to make a single law for small and medium-sized entrepreneurs, so that they can be saved from many legal formalities.
- Facing Corrupt System:- One of the major limitation of entrepreneurship is that the entrepreneur has to bear the tyranny. Small entrepreneur cannot face corruption. He is forced to succumb to corruption.