Who is an entrepreneur? And most importantly, what is entrepreneurship? These are terms that have different definitions from different experts. However, what we know that entrepreneurship involves a process that begins with innovation. Therefore an entrepreneur can be defined as someone who sees an investment opportunity and takes it, despite the risks that may be involved. Does this mean that you have to be innovative to become an entrepreneur? Or that you must have a business to be called one? Many experts have argued on the real meaning of entrepreneurship, and there is no absolute definition that is definitive. We are going to look at entrepreneurship as a process, and an entrepreneur as someone with special skills to follow this process.
There are five main steps involved in entrepreneurship. They are:
- Decision making
- Implementation and
This is the stage where an entrepreneur is born. It defines who will succeed and who fails in their venture. They are the initial steps one has to do before establishing a firm. It is about making a decision that will affect the company they are about to set up.
There is a need for the individual to do as much research as possible about the field of interest. As stated above, entrepreneurship involves taking a risk. It is vital which to know which risks are worth taking and which should be let go. At this stage also, one has to look at the potential market for the products or services. It is the best time to put together some of the main things that will determine whether or not you should go ahead with the process.
In decision making, one has to have all the necessary knowledge to conclude. It is time for the individual to consult with appropriate bodies like the District Industrial Centre of Medium Small & Micro Enterprise. There are several decisions one has to make, including:
- Where and how to acquire funds; banks or other financial institutions
- Getting necessary permits, recognition, and application
- Writing the preliminary report/ proposal for the business
- And deciding on the location of the business, what is or who is needed for the venture.
This step is vital because it touches all corners of the business. It comprises of ways to make things comfortable for the company, the clients and everyone else involved, both directly and indirectly.
For a business to succeed there must be an adequately outlined plan. This step creates the assumption or prediction of the business requirements and estimated outcomes. In other words, it highlights the future of the business to determine its potential success, challenges, and resolutions. From it, one gets to review the best approach to making a profit, which may include cutting expenses and maximizing profits. The most vital aspects of this stage are:
- Acquiring your infrastructure
- Getting necessary permissions and licenses
- Applying for environmental clearance
- Applying for power and water connections
- Studying PPR and preparing reports of Detailed Project Reports
- Applying and getting a loan/capital investment
- Getting machinery and raw material to start
After planning, it comes to the execution stage now, where you want to put the plan into action. The success of implementation steps depends on how well to plan your business. Assuming that you have already gotten your capital, it is time to buy, install, pay for permission, and start the operations.
There have been debates on whether or not an entrepreneur can be a manager as well. Administrative duties are essential for a manager. There may be a few things you will overlook after getting establishing the firm, but initial steps will directly involve you as a manager.
Being an entrepreneur requires a particular set of skills. These are vital for success or his/her business:
One has to be able to take firm decisions and delegate duties effectively. In the beginning, an entrepreneur may feel like they can take on any responsibilities by themselves. But you already have a full plate, and adding on more will eventually create a mess for you. A good entrepreneur must be ready and strong enough to delegate duties.
Time is a very crucial factor in entrepreneurship. Sometimes you will be required to deliver urgent tasks, or which your customers will be counting on you. Technology has made things easy, with mobile phones containing calendars and notepads for easy management. It means, therefore, that an entrepreneur should know their technology.
The ability to visualize success amidst risks and challenges defines a successful entrepreneur. This is vital paramount to making their plans a success. Seeing the future of the business gives them the right steps to follow.
Effective communication begins with listening, then giving the right response. If an entrepreneur is not able to communicate properly, they may provide wrong information and waste valuable time. Miscommunication leads to wastage of time and valuable resources. Entrepreneurs value time very much.
It is impossible to give everyone the time they need because entrepreneurs must have time for many other things. Therefore, establishing a hierarchy of communication to save time is a great way to keep things moving. Let people know who to approach first when they have an issue.
No one can do everything alone. There comes a time in the life of an entrepreneur that they may require assistance in certain areas. A good entrepreneur is not adamant. They can ask for help whenever the need arises. Someone with an open mind has more chances of succeeding. And a good business does not succeed with the mind of one person but with shared efforts.
The ability to appreciate where one has come from sets them apart from failure. The appreciation of our achievements includes giving back. This can give you a feeling of satisfaction, more than your success.
Being an entrepreneur is not an easy task. There are several qualities necessary for success. The good news is, entrepreneurs are made, not born. You just have to set your mind on success and work towards it.
Apr 09, 2020