Running a business involves making decisions about the market, resources, capital. That person who accepts the risk of developing a business being its owner and of supporting the possible losses of money, is an entrepreneur.
Introduction
Entrepreneurship is a distinctive feature of the individual or an institution. Although it is not a personality trait, it requires a special character to function in conditions of uncertainty.
The term derives from French and means "entrepreneur". In the 16th century the French called the leaders of the military expeditions that built bridges, roads, ports and fortifications entrepreneur. In the mid-eighteenth century, economists began to use the word to designate those individuals who innovated in the economic field under conditions of risk and uncertainty.
A person who accepts the risks of owning a business in the hope of making a profit.
Definitions
Entrepreneur
An entrepreneur is an entrepreneur. A creative entrepreneur. It has excellent levels of both vision and action.
It is someone market oriented. Someone who operates in the market in search of taking advantage of the opportunities it offers. This environment in which it moves requires a capacity for analysis, a different, decisive and incisive approach, as well as the ability to see business.
The entrepreneur must know who he is, what he really knows how to do; What is the basic logic of your business (business base), and what premise to create values can capture the interest of customers. In summary, to reach success you need a vision of the point where you want to get there and take the right direction towards it.
One needs to think more often about the culture of risk, desire, anxiety, desire, the entrepreneurial passion for new businesses.
The entrepreneurial spirit
We could affirm that the entrepreneurial spirit (entrepreneurship), can be the development of innovative projects or opportunities to obtain a profit; the ability to buy at certain prices, to buy at unknown prices or we can consider it as the ability to develop a new idea or modify an existing one to translate it into a profitable and productive social activity (note: not all entrepreneurs seek economic benefit; There are people who seek social or political objectives).
Today the entrepreneurial spirit is synonymous with innovation, change, founding a company, or taking risks. The difficulty increases, when we find entrepreneurs who have not founded companies or who have not been innovative and have simply copied an existing idea or who instead of taking risks seek others to run them etc.
Characteristics of the new entrepreneurs
What does it take to be a true entrepreneur? Let's think about the following characteristics to consider:
In the motivation part:
- Capacity for commitment: Both with yourself and with others. Vocation for work: Every day, almost all day until initiatives are carried out. Constancy: And belief in your projects. That it can be combined with perseverance and faith. If the entrepreneur does not believe in himself and his project, he is destined to fail. Push: It is the ability to take initiatives forward, the level of sacrifice and dedication and the desire to fulfill dreams. Physical courage and great enthusiasm for all kinds of ideas: Passivity is not a characteristic of an entrepreneur, enthusiasm and continuous movement do.
As for knowing:
- Knowledge: Being an entrepreneur requires knowledge of the topics to be developed in projects or activities, whatever they may be and at the same time requires the ability to investigate and experiment. Culture: In a broad sense, knowing how to adapt to different situations and knowing how to behave under circumstances.
There are other, not so obvious capabilities:
- Association capacity: Being able to work as a team (associate) or lead (direct). A great idea, hardly developed by a person, the ability to associate (well) is key to success. Command ability: Being the boss is not synonymous with power, being the guide or leader if it is… Vision: Knowing how to mix your short, medium and long-term objectives with your business and environmental vision. Where other people see a problem or a difficulty, a true entrepreneur sees an opportunity. Idea Generation: Be creative, that is, transform ideas into realities and identify opportunities where others see problems. It is necessary to have ideas, rethink them and implement them constantly. Ability to take risks: Risk to win. Ability to measure risk: Know exactly what I'm playing and what are my opportunities, weaknesses and strengths. Capacity for self-criticism: No one is perfect, learning from mistakes and being aware of them is essential. Independence: To make decisions and give mandates: It is the idea of undertaking, achieving your own goals.
Other features:
- Ability to understand the legal, credit and financial procedures that are presented Ability to innovate and respond to adversity
Many times it has been found that an enterprising person must be sociable, charming and must have the ability to summon.
The important thing is to value your work, and make yourself worthwhile as an intellectual and human being
One of the great advantages that new entrepreneurs have is that they are dreamers and are generally not contaminated with all the risks. They are more aggressive than their competitors in establishing a clear strategy and having defined objectives.
Anti-entrepreneurship
Let us now focus on the characteristic features of people and societies that do not start with entrepreneurship or fail easily and which we will call anti-entrepreneurs.
Anti-entrepreneurship can be associated with:
- Pessimism: It is the attitude that always prevents us from starting, which makes the road more difficult without even having started to travel it. Safe work culture: On many occasions society teaches us to "receive orders" and to look for a permanent job, instead of create a company and set up your own initiatives. Ignorance of opportunities: Unfortunately the lack of interest in what happens around the environment of people make them lose opportunities that can be worth gold. Lack of viable projects: Sometimes the non-viability of projects creates insurmountable obstacles for those who plan to start a business. This is related to the inability to measure risks and opportunities well. Little knowledge of the environment and the market: There is nothing sadder than stopping entrepreneurship due to lack of knowledge and understanding of the world around us and the market that could be pursued. Lack of technical skills: The knowledge society requires technical people, specialized and who have basic knowledge in the basic areas of business training. Lack of motivation: The tendency to abandon projects quickly is very common in Latin American societies. Mediocrity: Another very worrying trend in people is to do the work out of commitment and not out of conviction, which makes quality standards very low and prevents the creation of entrepreneurial people. Distractions: A characteristic of the anti - entrepreneur is not focusing on his idea and becoming volatile and distracted. It is important to have a leisure time, but it should not be an excuse for not continuing to work. It is not unique attitudes that prevent starting a business, nor are external problems. It is the combination of external and internal factors that blocks people's ability to undertake.
Breaking through these problems and moving on is the only way to be successful.
Requirements to be a good entrepreneur
Working for a dream would seem like an ideal matter, being independent or your own boss a blessing, however, and as a strange matter, very few people actually decide to venture out with their ideas, their projects or their own businesses; it is evident that the path is difficult, but, why don't people take risks? The literature on entrepreneurship presents us with cases of people who, from scratch, have managed to build and achieve great feats. What did these people do and what characteristics are found in true entrepreneurs?
There seems to be some consensus that large entrepreneurs meet the following characteristics:
- Consistency Sense of opportunity or business Knowledge Personal responsibility Leadership ability
To develop a venture, you must be aware that you must meet at least the previous requirements, since getting an idea ahead requires these and many more factors.
Types of entrepreneur
Business discoverers
They have the ability to permanently find gaps in the market. They always have seven or eight businesses in mind at the same time. They know how to see the market, they can perceive trends, see what nobody saw, or see what everyone sees but understand it in a different way.
Business shipowners
They are soul entrepreneurs. They imagine the components of the business, and carry it out, through actions. They think about relationships with suppliers, customers, partners, professionals, products, processes. They are the ones who create businesses.
Intrapreneur or managers
They are those who know how to start businesses and who work within existing companies. They are very clear about how businesses are maturing. They have the patience to investigate, the mettle to develop processes, the ability to negotiate with the perceptions that exist in the company and manage to create the business.
Intrapreneurs transfer to the new job, within an existing company, the independent spirit, innovative initiative, speed and flexibility acquired during their experience in the business world. These characteristics are more appreciated the larger an organization is.
There are companies that induce their most talented employees to start new business inside the company.
Skills and personal characteristics of an entrepreneur or company manager
- Possesses good managerial skills and knowledge. Takes few risks. Cares about his career and employment. His work pattern is more routine than that of the entrepreneur. He is employed by others and does not work in his venture. He is not necessarily committed to long-term growth. term or for the continuity of the company.
Types of entrepreneurs and their businesses
Let's distinguish between entrepreneur and entrepreneur, here we will talk about entrepreneurs, who are beyond entrepreneurship.
The way to distinguish the classes of entrepreneurs is through the way their business operates or how they operate their company.
- SOLO OR UNIPERSONAL BUSINESSMAN: He is the typical self-employed worker. Maybe he works with some employees, but he concentrates the power. KEY PARTNER: He is the member of a team that assumes a highly active role compared to the other partners, who surely provide the capital. MEMBER OF A GROUP: These entrepreneurs prefer the Psychological and financial support of group work, but they are less autonomous than key partners.PROFESSIONALS: They generally do not consider themselves entrepreneurs, but the truth is that they have received all the education and training to succeed in their specialty businesses. INVENTOR INVESTIGATOR: Although they lack executive skills, they have good ideas. They lock themselves in their laboratories to try new products, even if they are not practical in the market. CREATIVE INNOVATIVE:This one has ideas for making better products. This individual does understand the market and is ready to satisfy it. HIGH TECHNOLOGY BUSINESSMAN: With higher education and technical skills. They are highly competitive and enjoy the latest technology. Generally electronic and computer equipment. BUSINESSMAN BUILDING TEAMS: They are those who start on their own, then grow and found a larger company. They know how to delegate and they have a sense of organization. They hire staff and build work teams. EMPEDERNIDO INITIATOR: Enjoy the challenge of starting new companies, but your goal is not to keep it but to sell it, to start a new one. MULTIPLIER: The idea of these entrepreneurs is to duplicate the business idea and take advantage. They are the typical franchisors or owners of commercial chains etc. ACQUIRIENTS:In many cases it is the complement of the multiplier. They prefer to be entrepreneurs of an existing business, because the risk is reduced and the energy is focused on the success of the business itself. SPECULATORING BUSINESSMAN: Through strategic maneuvers, he buys real estate and manipulates it to later sell it a little more expensive. Furthermore, possession itself opens the doors of credit. Antiques and rare items are also part of this sector. REHABILITATORS: These entrepreneurs buy troubled companies and restructure them to make them competitive again. Finally, they sell them with a profit margin. VALUES MANIPULATOR: These entrepreneurs acquire a good at a low price and it is legally manipulated by the financial statements to increase its value. Then sell the good IMAGE ENTREPRENEUR:He is interested in the good life resulting from success. He prefers to mediate agreements so as not to complicate life. They have extensive contacts and exploit them skillfully. COMMITTED MANAGER: This businessman adopts the development of his company as his lifestyle. He will always be aware of what happens in it and if he sells it he remains as a manager.CONGLOMERADO CREATOR: The typical octopus. He is the entrepreneur who gives up part of his company to buy another, and so on, until he forms a group of companies under his command. His idea is to direct the capital for his benefit and that of the investors. PATRIARCA: He is known as the owner of the family business (EF), who hopes and hopes that the family will continue the tradition,and it even remains in its position despite the fact that the EF passes to other hands. STOCK MARKET QUOTERS: The idea of these entrepreneurs is for their company to go public on the stock exchange, where they can obtain a broad benefit on their investments.
The previous classification does not imply rigidity or exclusion between the types of entrepreneur. It is common to go through several of them during life, before finally adopting one. On the other hand, an entrepreneur may be forced to be multifaceted given the conditions of the country where he lives. Furthermore, the evolution of the economy can create new categories as the market develops.
The motivation. Entrepreneur Tool
In many opportunities the concept of motivation is misinterpreted by entrepreneurs. Under this erroneous and partial concept, it is assumed that the motivation is to gather the employees, so that someone with a lot of lips fills them with positive thoughts. Other than that, this job is believed to be for a showman, not an executive, let alone the general manager. There are two mistakes that are made. One builds motivation and another takes seriousness away.
You are trying to found a company; It does not seem to you that it would be inappropriate on your part, to treat all your collaborators as if they were equal?
The entrepreneur must understand the mobiles of others before daring to manipulate this tool. An intervention that ignores the motives of the subjects and that does not motivate them properly, can be deadly for the organization.
First, find out what your own motivation is. Strange as it may seem, this is not clear in our minds and can lead us to fail at work. After completing this cycle, jump to discover the reasons and needs that motivate your team.
Some of the main types of behavior that lead us to apply the correct motivation to people:
- Satisfaction in the duty fulfilled. Friendship first. Perfectionism. Passion for power. Various combinations.
Not only money is a strong motivation for people; in fact, in some cases it is not even important and that there are more dimensions than simple monetary compensation.
There is always a motivation for each human being that induces them to do something, but that incentive or motive can change from time to time and according to the situation.
Steps of entrepreneurship (Business Plan)
The business plan brings together in a single document all the information necessary to evaluate a business and the general guidelines to start it.
Each plan must be formulated based on the stated objectives.
Basic parts
* Cover
Name of the project, date, to whom and by whom it is presented.
* Executive Summary
A synthesis, in no more than two pages, of the main aspects of the project and the objective of the presentation.
* Main body
The relevant information to evaluate the project, organized by themes or chapters.
* Annexes
Complementary information, graphics, documents, plans, brochures.
Content to include
1. Executive Summary
It is a brief synthesis of the most important aspects of a project, which is located in front of the presentation.
2. Introduction
It should be described:
- What is the business that will be developed; who will present the plan and for what purpose; if it is a business in operation, what is its mission and trajectory; what is the date of presentation and if there is a deadline for approval of the plan; what is the approach with which the plan was prepared.
3. Market research and study of competition
Who are consumers and what do they want, what prices are they willing to pay or who are the main competitors and what are their competitive advantages.
4. SWOT or SWOT Analysis
It is a strategic analysis that is used to know the current situation of a company, evaluating the threats and opportunities that arise from the environment, and the internal strengths and weaknesses of the organization.
5. Strategy
How is the business going? What space will it occupy in the market? Where will it go? Strategy is necessary to set the course for the company.
6. Marketing Plan
It is the instrument of the marketing strategy. It only makes sense if the positioning of the company and the target the company is targeting were previously defined.
- Product / service: What are the benefits that the company or the product / service will generate for potential customers? Price: At what price will the product / service be offered and how much does the price influence the potential purchasing decision Customers Distribution: How and where will the product / service be sold? Communication: How will the product / service be communicated so that potential customers become aware of its existence and want to buy it?
7. HR and management
8. Production strategy
9. Technical Feasibility
10. Economic Feasibility
11. Financial Feasibility (Cash Flows)
12. Conclusions
Four keys to start from below
It is feasible to undertake at low cost, if a plan is put together keeping four basic axioms in mind:
- An original idea or contribution is required: it would not be wise to get into any type of business without offering any difference. The biggest costs can appear in unexpected areas: they usually arise in marketing and human resources. The investment must be recovered in Short term: otherwise, you run the risk of spending a long time without income or proportional earnings. Growing is the only way to earn: it makes no sense to get into a venture if you don't have that goal.
Summary
The entrepreneur is one capable of having a dream and at the same time transforming that entrepreneurial dream into reality.
It is someone capable of discovering in the crisis the opportunity to start an innovative venture or company and turn it into a good (profitable) business.
He is a person capable of not only adapting to the changes imposed by the times but of "leading these changes", inspiring his people with the same passion he feels for achieving positive results, always based on excellence and innovation that should characterize it.
The true entrepreneur has leadership skills and a willingness to take the risks of running your business.
The entrepreneur has personality characteristics that usually distinguish him from other people.
The true entrepreneur does not see himself as a victim or product of the crisis or circumstances, but as an active protagonist of change and generator of new circumstances.
They see change not as a threat but as a challenge and an opportunity. The ability to transform the crisis into opportunity is what makes the difference between winners and those who are not.
The entrepreneur believes that his security is completely focused on himself and his ability to change, adapt and learn from the opportunities that change brings. He is a winner with the changes.
Being an entrepreneur implies above all a way of thinking.
According to Víctor Hugo: "the future has several names: for the weak it is the unattainable, for the fearful it is uncertainty, for the brave it is the opportunity".
ACTIVITY Are you a true entrepreneur?
- Did any of your parents and / or grandparents start a business of their own? Yes No Are you a brilliant student at school? Do you like to participate in group activities at school? As a teenager, do you prefer to be alone? Have you ever applied for a position at school, or started a boy business? like a lemonade stand? Do you consider yourself stubborn? Do you think you are cautious? Are you daring and adventurous? Do you care a lot about the opinion of others? Would the idea of changing your daily routine be an important motivation for Starting a business of your own? You may enjoy your daily activities, but would you be willing to work on that activity all night if necessary? Would you be willing to work as much as needed, having little or no sleep,in order to finish a project? When you successfully complete one project, do you start another immediately? Would you be willing to commit your savings to start your own business? Would you also be willing to borrow? If you start a business and fail, would you start to work in another immediately? Yes No No Would you start looking for a job with a regular salary? Do you think that being an entrepreneur is risky? Do you usually write down your short and long-term goals? Do you consider that you have the ability to manage cash flow personally? easily? Are you optimistic?Would you start working on another one immediately? Yes No No Would you start looking for a job with a regular salary? Do you think that being an entrepreneur is risky? Do you usually write down your short and long-term goals? Do you consider that you have the ability to manage cash flow personally? easily? Are you optimistic?Would you start working on another one immediately? Yes No No Would you start looking for a job with a regular salary? Do you think that being an entrepreneur is risky? Do you usually write down your short and long-term goals? Do you consider that you have the ability to manage cash flow personally? easily? Are you optimistic?
Are you a true entrepreneur? Evaluation:
- If the answer is yes, subtract one point, if not, add one. If the answer is yes, subtract four points; if not, add four. Entrepreneurs were generally not brilliant students. If yes, take one point; if not, subtract one. Entrepreneurs prefer not to participate in group activities, generally. If the answer is yes, add one point; if not, subtract one. Studies have shown that boys' entrepreneurs preferred to be alone. If the answer is yes, add two points; if not, subtract two. Generally, the entrepreneur can be detected at an early age. If the answer is yes, add one point; if there isn't one left. A stubborn child means that he is determined to do things his way, a hallmark of successful entrepreneurs. If the answer is yes, subtract four points; if not, add four.Caution may mean reluctance to take risks. If the answer is yes, add four points. If the answer is yes, subtract one point; if not, add one. Entrepreneurs often have faith to follow different paths despite the opinion of others. If the answer is yes, add two points; if not, subtract two. The daily routine usually precipitates the decision of an entrepreneur to start a business. If the answer is yes, add two points; if not, subtract six. If the answer is yes, add four points. If the answer is yes, add two points, if not, subtract two. Employers generally enjoy their work; They go from one project to another. If the answer is yes, add two points; if not, subtract two. Successful entrepreneurs are willing to use their savings to finance a project. If yes, add two points; if you don't subtract two.If yes, add four points; if not, subtract four. If the answer is yes, subtract one point. If the answer is yes, subtract two points; if not, add two If yes, add one point, if not subtract one. Many entrepreneurs have a habit of writing down their goals. If the answer is yes, add two points; if not, subtract two. Cash flow management can be critical to business success. If yes, add two points; if not, subtract two. It seems that entrepreneurs are easily bored. If the answer is yes, add two points; if not, subtract two. Optimism is fuel to seek success.Many entrepreneurs have a habit of writing down their goals. If the answer is yes, add two points; if not, subtract two. Cash flow management can be critical to business success. If yes, add two points; if not, subtract two. It seems that entrepreneurs are easily bored. If the answer is yes, add two points; if not, subtract two. Optimism is fuel to seek success.Many entrepreneurs have a habit of writing down their goals. If the answer is yes, add two points; if not, subtract two. Cash flow management can be critical to business success. If yes, add two points; if not, subtract two. It seems that entrepreneurs are easily bored. If the answer is yes, add two points; if not, subtract two. Optimism is fuel to seek success.
Source. Test provided to Entrepreneur Media Inc. by Northwestern Mutual Life Insurance, Co. and adapted by Empresar.
What was your score?
Classification
- 35 to 44 Excellently qualified to undertake 15 to 34 Is well prepared 0 to 14 Has a good chance-1 to –15 Low probability of success-16 to –43 His talent is elsewhere
