The entrepreneur and entrepreneurship (part 2)
Yvonne Harvey, Contributor

Last week I left you with the task of reading and making notes on the characteristics of the typical entrepreneur. What did you come up with? Compare your notes with what I have provided in this lesson and bear in mind that these characteristics help to make a successful entrepreneur.

An entrepreneur should be:

1. Creative. This means being able to use the imagination to invent something different or original.

2. Innovative. In other words, be able to find new methods or ways of doing things and to make changes where necessary. It also involves bringing in new ideas.

3. Flexible. This means to be easily adaptable. In this rapidly changing world, the entrepreneur must adapt to changes in technology and changes in demand. Rigidity often results in failure.

4. Goal-oriented. Whatever the entrepreneur does should be towards achieving the goals or objectives of the business. He or she should not be sidetracked into doing things that have no bearing on the aims and objectives of the business.

5. Persistent. The entrepreneur should be able to continue firmly in a certain course of action despite difficulties. This does not mean, however, that there should not be changes where necessary. Remember, we have already said that the entrepreneur should be flexible. However, being persistent means not giving up on an idea or project at the first sight of problems. Efforts should be made to 'iron out' the problems and continue the projects, resulting in the achievement of the goals and objectives of the business.

6. Highly committed. If the entrepreneur has a high degree of commitment, then hard work and perseverance should pay off.

7. Able to take calculated risks. This means that the entrepreneur should be someone who has a sense of searching for opportunities and is willing to take chances based on the fact that the person has studied what is involved and feels that there can be success and achievement of the well-defined goals of the business. Thus, the entrepreneur will spot and capitalise on opportunities.

8. Able to handle uncertainties. The risks that cannot be insured against are referred to as uncertainties. These risks must be dealt with by the entrepreneur.

Entrepreneurs often have the desire to start up a business. What are some of the reasons that he will want to do so? This question brings us to our next subheading: Reasons for wanting to start a business. Let us begin by defining a business.

A business refers to an individual or a group of individuals involved in some commercial activity, such as producing or selling goods and services, with the aim of making a profit. Where persons are engaged in such activities but not with the aim of making a profit, then they cannot be regarded as a business.

There are two main reasons for wanting to set up or start a business:

(i) Desire for financial independence

(ii) Self-actualisation/self-fulfillment

Let us now expand on these two reasons.

Desire for financial independence

Some people set up businesses in order to gain money so that they will not have to rely on others for money for food, clothing and shelter. Financial independence, in this case, is realised through making a profit. Where an entrepreneur sees that a product can be sold for more than what it costs to produce, there will be motivation to set up business, so as to not have to depend on others.

Self-actualisation (self-fulfillment)

Often, businesses are set up because of the need to realise one's potential because of the need to express creativity, because of the need to achieve and to be able to recognise one's limitations or shortcomings and to be able to make improvements.

Business owners are able to achieve what is important to them. Entrepreneurs want to be their 'own bosses', and they set up businesses to bring their desires to life. Businesses allow for self-expression, an opportunity to do what you enjoy.

Some persons see businesses as an opportunity to contribute to society and be recognised for their efforts. They gain trust and recognition from customers who have served them faithfully over the years.

Now, revise the last two weeks' lessons in order to attempt this question.

(a) Define the terms entrepreneur and entrepreneurship. (4 marks)

(b) Discuss THREE roles of the entrepreneur. (6 marks)

(c) Outline THREE vital characteristics of the typical entrepreneur. (6 marks)

(d) As an entrepreneur, you are thinking of establishing a business in your community.

Explain TWO reasons you may wish to do so. (4 marks)

Total marks: 20

Well, that's it for now. Next week I hope to look into the steps to be taken when establishing a business and the functional areas of a business. Keep safe. Bye-bye.

Information technology teacher, Delpherine Daniels (right), assists Taneisha Brown, one of her students, with classwork, during school activities, at Cumberland High School, on February 12. - Anthony Minott/Freelance Photographer

Yvonne Harvey teaches at Glenmuir High School.