Page 13 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes 2. An innovator: He is rightly known as an innovator who engages himself to innovate new
varieties of products, explores new market horizons, and introduces new techniques of
production and methods of reconstruction of industries. According to Schumpeter, the
main characteristic of an entrepreneur is to innovate something. Through such innovation,
the execution and effective use of a creative idea are ensured. Its success brings for
commercial achievement and new horizon of economy emerges.

Example: Sasken Communication technologies: HQ at Bangalore has introduced an
innovative people policy to attract and retain talent in the organization. Hibernation is one of
its policies in which employees after completing four years of service with the organization
goes on hibernation i.e. six weeks of paid leave. Apart from hibernation they have two weeks of
paternity leave, no time in and time out and a liberal leave policy. All these policies go a long
way in creating work-life balance and help in attracting and retaining employees.

3. Providing completeness to the factors of production: An entrepreneur procures necessary
resources from various sources for the purpose of production and by utilizing them he
provides completeness to the factors of production. Moreover, he endeavours to make
contact with various markets for his products. He is a risk-taker and functions as a
coordinator.
4. Decision-making person: The entrepreneur is such a person who is endowed with a power
to make a proper decision as regards the establishment of a business, its management, and
procurement of different factors, methods of distribution and coordination of various
scarce resources. Since he has a strong power of decision-making, he can take decisions on
various maters rapidly. His achievement largely depends on the ability of his decision-
making.

5. A man of creative personality: As the term implies, he is known as an employer who
makes optimum utilization of economic resources and thus carries on productive activities.
He has a quality of creating something new and as such he is a person of creative personality.
For this, he is known as a creative innovator. He creates new ideas, nurtures them in the
light of his own experience, knowledge and intellect. Through all such activities, his
creative personality and mentality are exposed.
6. A basic plan-maker: An entrepreneur is the owner, employer, producer, market-creator,
decision-maker, risk-taker, coordinator, and user of market information, creative individual
and innovator. For this, he is regarded as a pioneer of economic development.
7. A pioneer of economic development: An entrepreneur is the owner, employer, producer,
market-creator, decision-maker, risk-taker, coordinator, and user of market information,
creative individual and innovator.
8. Dynamic leader: He provides proper motivation to his workers by means of leadership so
that the workers can give their best efforts to the interest of the organisation.

9. Creator of wealth: The entrepreneur uses various resources for running his products or
services are produced. Hence, the entrepreneur creates his personal wealth and at the
same time he helps to increase social wealth, because new wealth is created due to increase
in demand for product or services. As such, creation of wealth is one of the basic features
of an entrepreneur.
10. Self-confident and ambitious: In the opinion of John Hornaday, one of the important
features of an entrepreneur is that he should be self-confident as well as ambitious. Self-
confident is regarded as one of the remarkable characteristic features for his success. This
self-confidence leads him to face any situation boldly. Self-confidence relates to harmonize
between word and work. Similarly, he should always have in himself, high ambition.

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