CHARACTERISTICS

OF AN ENTREPRENEUR

J.ILANGUMARAN
HOD i/c Mech(RAC)
PACR POLYTECHNIC COLLEGE
RAJAPALAYAM – 626 108

1
 WHO IS AN ENTREPRENEUR?

An entrepreneur is someone who has an original idea

and is able to change that idea into a business
opportunity and make it work

One who starts his own business

One who creates a new business in the face of

risk and uncertainty for the purpose of achieving
profit and growth by identifying opportunities
and assembling the necessary resources to
capitalize on them
2
3
 What skills are required by an
effective entrepreneur?
• Strategic skills
An entrepreneur must have a vision for the
future. He/she must be able to see the
bigger picture and know where he/she is
going with everything. Setting clear
objectives and effective strategies are
essential for running a business successfully.

4
•Management skills
A manager/entrepreneur ensures that work is
done and completed successfully by taking
responsibility for the following tasks:
– Planning
The entrepreneur decides what has to be done.
He/she decides what tasks need to be
performed in order to achieve the business’s
objectives. Planning allows the entrepreneur to
anticipate the future and avoid future failures. It
is a roadmap for proper management. Planning
may be tedious, but in the long-term it saves
time, money and effort. The entrepreneur is
responsible for the planning of the whole
business.
5
– Organising
This means that the entrepreneur has to decide
how the plan will be implemented. The available
resources will have to be divided into different
areas.
– Leading (activating)
The entrepreneur decides when things should
be done.
– Control
The entrepreneur ascertains whether the tasks
have been carried out and how effective they
are.

6
• Human relations skills

The entrepreneur needs to have the

ability to manage people as well.
He/she has to build good relationships
with all workers and needs to know
who to employ in his/her business.

7
• Financial skills
The success of a business is measured by the
profit it makes.
It is essential that the entrepreneur has
knowledge about managing income and costs.
The long-term future success of the business
is also determined by the type of investments
the business makes and how successful the
entrepreneur manages those investments.

8
• Marketing skills
The challenge in marketing is that the
entrepreneur must know how to promote and
advertise his/her business and products. It is
essential for him/her to have good knowledge
about the market and what things the customers
want and prefer.
The success of the business is determined by
how effective the research that has been
conducted is and how well the entrepreneur
provides for the needs of the target market.

9
 Characteristics of an entrepreneur
• The entrepreneur has big dreams and a clear vision of
how he/she wants to make that dream a reality.
• They are very creative and always think of new,
interesting ideas.
• They are very enthusiastic about their ideas, have a
positive outlook on life and are eager to make a
success of their business.
• They take calculated risks and are willing to loose
money if their ideas don’t work immediately.
• They are flexible and willing to adapt to a changing
business environment.
• They have a high degree of competence and a very
strong will to succeed in their actions.
10
HE HAS THE
• Desire for responsibility

• Preference for moderate risk – risk eliminators

• Confidence in their ability to succeed

• Desire for immediate feedback

• High level of energy

• Future orientation – serial entrepreneurs

• Skilled at organizing

• Value achievement over money

11
HE IS

12
Am I an entrepreneur?
Respond to the statements that follow, being as honest
as possible

13
14
To establish if someone is well-suited to
become an entrepreneur

15
 Benefits of Entrepreneurship
The opportunity to:
• Create your own destiny
• Make a difference
• Reach your full potential
• Reap impressive profits
• Contribute to society and to be recognized
for your efforts
• Do what you enjoy and to have fun at it

16
 Drawbacks of Entrepreneurship
• Uncertainty of income
• Risk of losing your entire investment
• Long hours and hard work
• Lower quality of life until the business gets established

High levels of stress

Complete responsibility

Discouragement

17
 Feeding the Entrepreneurial Fire

• Entrepreneurs as heroes
• Entrepreneurial education
• Demographic and economic factors
• Shift to a service economy
• Technological advancements
• Independent lifestyles
• E-commerce and the World Wide Web

International opportunities
18
 Ten Deadly Mistakes of Entrepreneurs
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial
transition”
19
Common Mistakes of Entrepreneurs

20
21
22
23
24
Avoiding the Pitfalls of Small Business Failure
• Know your business in depth
• Develop a solid business plan
• Manage financial resources
• Understand financial statements
• Learn to manage people effectively
• Keep in tune with yourself

25
 Causal Logic is predictive

To the extent you can predict the future, you

can control it

Control of outcomes achieved through

accurate predictions,
clear goals,
and avoiding or protecting oneself against the unexpected

26
 Example of Causal Logic

From cooking a meal . . .

. . . To building a restaurant

Or something else . . .

27
Why Business? What’s the motivation?
• Independence
• Not wanting to work for anyone else
• Desire to be one’s own boss
• For men, money is the second reason for
starting a new venture
• For women, job satisfaction, achievement,
opportunity, and money are the
motivations

28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
 P. R. Ramasubrahmaneya Rajha
Chairman & MD, Madras Cement Limited
A man, who has seen life from close quarters and has risen from the lowest rung to
the highest, needs no management lessons. For, he has continuously learnt to manage
people. And P. R. Ramasubrahmaneya Rajha, Chairman & MD, Madras Cement Limited
is one individual who has done this all his life.

Known for his refined mind and an eye on the horizon of the global corporate world,
Rajha has been playing a cardinal role in bolstering the image of the Indian corporate
chiefs in the global scenario by infusing fresh blood into it. A true visionary, Rajha has
been riding high in the business world and nourishes a dream to join the bandwagon
of the global players in a short timeframe.

47
• In fact, this global man has been steering the Madras Cement Limited
for decades. The company which is engaged in the production of
cement, wind power generation and dry mortar has, under the
stewardship of Rajha has reached new heights of professional
excellence. A man of many qualities, Rajha has also been steering the
course of Ramco Group, founded in 1938, which is a well-diversified
industrial conglomerate.
• The fact that Rajha is a corporate chief of high caliber has helped the
cement company with a turnover which has multiplied ten-fold within
a very short time. His visionary approach has helped the company
become one of India's most respected business houses, achieving
international recognition for its quality products and services.
• Known for his sagacity and generosity, Rajha believes that efficiency
and a team of dedicated workers have made the Group one of the
most efficiently managed Indian business houses with a track record
of high and consistent profitability. It is one reason that the company
under Rajha has been able to pay rich dividends to its shareholders on
a consistent basis.
48
 Entrepreneurship Can Only Be
Learned By Doing
We should believe in what is commonly
called clinical teaching: learning by being
immersed in real problems. Surgeons learn
by watching others perform operations and
then by actually operating while under
supervision. Entrepreneurship should be
learned similarly. One way you can learn the
skills is to network in your local entrepreneur
clubs and try to find mentors.
49
QUESTIONS ?

50