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Entrepreneur is an individual who assumes the responsibility and the risk for a business
operation with the expectation of making a profit. The entrepreneur generally decides on the
product, acquires the facilities, and brings together the labor force, capital, and production
materials. If the business succeeds, the entrepreneur reaps the reward of profits; if it fails, he or
she takes the loss. The word derives from the French ³entre´ (to enter) and ³prendre´ (to take),
and in a general sense applies to any person starting a new project or trying a new opportunity.
Many societies place great value on the entrepreneur. To encourage their activity, they may
be offered access to inexpensive capital, tax exemptions and management advice. An
entrepreneur has the greatest chance of success by focusing on the market niche either too small
or too new to have been noticed by established businesses. To help new technologies come to
market, many universities establish business incubators for entrepreneurs hoping to turn leading
edge research into marketable products.
Characteristics of an entrepreneur include spontaneous creativity, the ability and willingness
to make decisions in the absence of solid data, Future oriented ,Skill at organizing ,Desire for high
achievement ,High degree of commitment ,Tolerance for ambiguity , Flexibility and able to adapt
,Independent minded, Perception with foresight and a generally risk-taking personality. An
entrepreneur may be driven by a need to create something new or build something tangible.

   

Entrepreneurship is the process of tapping the opportunity by creating new enterprise through
mobilizing resources, taking risk, innovating ideas and managing them for expected reward. It is simply
creating and operating a new enterprise. Thus, entrepreneurship is what an entrepreneur does.

 

   

1. 

It is doing something new or different from the existing activities. The new idea is
generated either by modifying the feature of existing product or developing new product.
Creating the bicycle for the first time is developing new product and production of bicycle that
runs from solar energy is modification of existing product. The both example is innovation. The
innovation brings the changes in society by searching new technology and style in product
feature. For example computer at first computer is designed only to calculate and store the data.
But now this is used for every purpose.
 è. 

 First attempt or trail is quite risky. Entrepreneur should have assured and able to
keep quite for a time. Because at first time no one can reach the objective. If person can¶t take
any kind of risk then neither one can make any benefit nor can become a successful entrepreneur.
Entrepreneur is that person who can sacrifice some worth rupees for collecting factor of
production and have aim to get return with uncertainty price. In the course of action they may
earn high profit or even incur a heavy loss. So only those people who have courage or imitative
do it.
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  The entrepreneur should have qualities like devotion of time. S/he
should be hard working to develop business plan and acquire and use the resources. If a one
invests but never gives enough time towards the goal achievement then s/he can¶t success to
achieve goal. Since entrepreneurship is a risky task, more degree of persistence and consistence is
required in part of the entrepreneur.
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 Entrepreneur is skill and qualities that result to way of success to achieve
the objectives. Thus, it provides reward to the entrepreneur by making return of investment. The
reward or return may be monetary or non-monetary benefits like profit, reputation, respect,
independence, personal development etc. An entrepreneur is a boss on his own. It gives him
social recognition.

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A small and medium enterprises is usually defined using a combination of quantitative and
qualitative criteria, including:-number of employees; total assets; share capital; number of
shareholders; market share; composition of management and degree of formalization. In this case
a small business can be referred to as a firm with the following features:-its share of the market
is relatively small, capital is supplied and ownership is held by an individual or small group, area
of operation is mainly local, workers and owners are in one community but market need to be
local. For the Tanzanian context small business is defined in terms of number of employees [5-
49 people], size of capital is between 5 million and è million, small market share.

Under normal circumstances SME¶s develop techniques to gain new customers and penetrating
existing markets for the growth of the firm. The techniques used include:-

Assessment of marketing opportunities and target market.

Intelligence gathering on customers and competitors.

Generating leads for possible advising on, drafting and enforcing sales policies and processes.

Formal proposal or presentation management and writing.

Business model design

Choice of location to target market.

Effective market research

Therefore small business development involves evaluating a business and then realizing its full
potential using such tools as:-

i Marketing
i Information management
i Customer services.