Entrepreneur are the backbone of a nations progress.

They organise different factors of

production like land, labour and capital and in this process, provide goods and services to the
people.
Entrepreneur creates wealth and gives employment to large sections of the society. The
economically developed nations provide ample evidence to the emergence of entreprenurial
class in those countries. Many underdeveloped countries have realised the fact that the
governments in these countries are unable to produce goods and services needed by the
people and offer employment.
India requires a good entrepreneurial class for developing small scale and large-scale
Industries. Government at the centre and states are unable to solve the problem of teeming
unemployed. Besides, liberalisation has given an added impetus to entrepreneurs to start
industries in small scale and large-scale sectors.
Therefore the government both at the central level and the state level are taking increased
interest in promoting the growth of entrepreneurship. Individuals are being encouraged to
form new businesses and are being provided such governmnent support as tax incentives,
buildings, roads and a communication system to facilitate this creation process. The
encouragement given by the central and state government should continue in future as it
realized that the new entreprises creates jobs and increase the economic output of the region.

Meaning:
The word entrepreneur is drived from the French word enterprendre. It means to undertake.
An entrepreneur is a person who has a possession of new entreprise, venture or idea and
assume a greater significance in inheriting risk and outcome of the business.
The main reson for an entrepreneur to start a busines entreprise is because he comprehence
the venture for his individual satisfaction and has personal stake in it.an entrepreneur differs
in his standing towards the organisation. He is the owner, bear risk and uncertanities involved
in running up of business. An entrepreneur objective is to be innovative, creative and act as a
benefiter to the organisation in short he is a chang agent.
Entrepreneur is faced with more income uncertanities as his income is contingent on the
performance of the firm. Entrepreneur is not indused to involve in fradulant behaviour as a
enterprise belongs to him and he cannot mis practise with his own shares.
Entrepreneur is required to have certain qualifications and qualities like high motivational
power, innovative thinking, risk bearing ability etc. An entrepreneur deals with frauds and
failures as a part of his learning experience for his entreprise.



Definitions:

The Oxford English Dictionary defines entrepreneur as One who undertakes an
business profitable by his skill, intellgence and wealth.


According to Evans entrepreneurs are person who initiate, organise, manage and
control the affairs of a business unit that combines the factors of production to supply
goods and services whether business pertains to agriculture, industry, trade or
profession.


According to Richard Cantillon the agent who buys means of production at certain
prices in order to combine them into a product that he is going to sell at prices that are
uncertain at the moment at which he commits himself to his cost.




Characteristics of a Good Entrepreneur


1. Creativity:
Creativity is an ability to bring something new into existence. Innovation is the process of
doing new things, and creativity is a pre-requisite to innovation. An entrepreneur should be
creative, because ideas usually evolve through a creative process whereby imaginative people
bring them into existence, nurture them and develop them successfully.
2. Mental Ability:
An entrepreneur must be reasonably intelligent and should have creative thinking and must
be able to analyse various problems and situations. He should be able to

anticipate changes and must be able to study the various situations under which the decisions
have to be made.
3. Human relation:
An entrepreneur must maintain good relations with his customers. He must also maintain
good relations with his employees if he is to motivate them to perform their jobs at a high
level of efficiency. In order to maintain good human relation he should have emotional
stability, personal relations, tactfulness and consideration.
4. Leadership:
The qualities of leadership will enable a person to stand apart in whatever profession he
might be in. leadership is the basic quality of entrepreneurs. This spirit keeps him forward in
any field. The quality of his leadership is clear from his personal relationship, mode of
handling a problem, generating resources and taking others in his own strides. Those,
enterprises, which are endowed with a resource of leadership, will always be prominent in the
market.
5. Team building:
An ideal entrepreneur is one who has the ability to build a team. A team is a group of
individuals with common purpose that is focused and aligned to achieve a specific task or a
set of outcomes. A good team will be able to share knowledge, core competency, and goals.

6. Achievement, motivation:
Entrepreneurs have a high need for achievement and are guided by their inner self,
motivating the behavior towards the accomplishment of goals. Most of the successful
entrepreneurs are attracted to this innovative career, because it is challenging and demands a
high degree of intelligence and involvement. Achievement, motivated entrepreneurs are the
doers. They always accept any challenge and take a calculated risk to do something
worthwhile. In India, we have a number of such entrepreneurs who are achievement
motivated.
7. Problem solving:
An entrepreneur should learn to face problem and not avoid them. He should define the
problem, gather information, identify various solutions, evaluate alternatives and select the
best option, take action, and finally evaluate the action taken.
8. Communication ability:
An entrepreneur should have the ability to communicate effectively. Good communication
means both the sender and the receiver of the message understand each other. An
entrepreneur is more likely to succeed if he can communicate effectively with his employees,
creditors, suppliers and customers.

9. Goal orientation:
Human behavior is goal oriented. Therefore, goal setting is a necessary part of all the
activities. Without goals, different members may go in directions. A successful entrepreneur
is goal oriented. The goals must be as specific as possible so that all employees can feel a
sense of achievement when goal is attained.

10. Risk taking and decision-making ability:
Entrepreneurs are persons who take decisions under the conditions of uncertainty, and
therefore they are willing to bear risk.





Qualities of entrepreneur

1. Creative
2. Innovative
3. Risk taker
4. Capital generator
5. Leader
6. Motivator
7. Energetic
8. Commited
9. High perseverance person
10. Able to assume responsibility
11. Able to deal with failure
12. Good manager
13. Self confidence
14. Flexible to change
15. Dynamic

16. Profit oriented
17. Optimist Versatile
18. Achiever
19. Resourceful
20. Goal directed
21. Low need for status and power
22. Problem solver
23. Knowledgeable in technology

An entrepreneur should have qualities of many individuals in one. He should be resourceful
to bring capital and management. He should have a vision for future. He should be an
example setter and a good leader. He should be energetic, yet flexible to environmental
changes. A good entrepreneur should have good knowledge of product and technology. He
should have a quest for success and achievement. He should have capability to build an
organization culture.
Qualities of Ratan Tata as an Entrepreneur..

1. Visionary:

One hundred years from now, I expect the Tatas to be much bigger than it is now. More
importantly, I hope the group comes to be and regarded as being the best in India..best in
the manner in which we operate, best in the products we deliver and best in our values system
and ethics. Having said that, I hope that a hundred years from now we will spread our wings
far beyond India.


2. Risk taker:

If you put a gun to my head, you had better take the gun away or pull the trigger because
Im not moving.
3. Strategist:
He is a deep thinker and extremely strategic. He is always 2-3 steps ahead.
4. Change champion:
Ratan Tata was the chief architect of the Corus deal. I was worried about the
magnitude and the amount of money. But he instilled confidence.


5. A man of integrity:

Tata has shown that there is no other way he will do business other than do it ethically.

6. Expertise:




When you come to him for a critical decision, he will give you a very quick answer, his
responses would be crisp, and leaving no room for doubtsHis involvement in cross-border
deals could be quite significant. And thats precisely what gives the CEOs the confidence to
move ahead with doubts.