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Posted: March 24th, 2019
Entrepreneur is an individual who, operate, takes risks of a business. Which means the process of running a business by their own. Due to economic crisis through out the world these days , most of the countries are encouraging people to be and entrepreneurial which leads to increase in the jobs for the people and increase the economy of the country. People become entrepreneurs by themself to start a business when they are controlled by many factors around them. Some people want to leave their jobs and start own business and few people want to earn money sitting at home. May be some people look for the needs for a market and to meet those needs they start their own business by supplying products for the market. If they successed in this process this makes them successful entrepreneur.
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This paper will discuss whether an entrepreneur is born or made by analyzing the factors such as entrepreneur characteritics, roles of an entrepreneur and can an entrepreneur be taught
History
Who is an entrepreneur
Entrepreneur is an individual or group of individuals who identify the business opportunity then try to reach the business goal or create business value through providing an innovative solution for business difficulties and also realize and accept the risks involved in the business (Wickham, 2006). Entrepreneur came from small business, now a days small business have changed the market significantly and plays an important role in the economy the example is the country like North America which has more than 50% of small business (Shinnar et al, 2009). An entrepreneur is one who creates a job, changes the market trend and identifies the business opportunities, enterpreneur are so deducated which puts their ideas into work, entrepreneur adds on extra knowledge and skills to attract the investors, partners and creditors (Hofstand, 2006).
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Function of an entrepreneur
Entrepreneur can be described as a small business owner from an economic propective which states that, these small business forms a structure. This structure plays an important role in the economic development which improves the living and working condition (Cf. Schumacher 1973; Birch 1981; Piore and Sabel 1984). And the characteristics function of an entrepreneur can be reflected in a creative response to the changing condition as a result the new ways of development comes in existence by the entrepreneur (Schumpeter, 1947) therefore , the function of an entrepreneur is to improve the economy by doing business in an innovative way. The main tasks of an entrepreneur is to recognize the business opportunity, start of their own business, gathering funds for the start of business, advertising the business in the market, analyzing the risk and providing leadership (Wickham, 2006).
Defination of entrepreneur
Bolton and Thompson (2000) have defined the entrepreneur as a person who creates and innovates a recognised value of something around the perceived opportunities. Some people still chase for an opportunities to create something after they have reached a position and live a life of luxury, they cannot stop themsleves because of there natural behaviour. The recognised value can be either Economic, Social or Aesthetic capital. Entrepreneurs can be found in large corporations such as private or public sectors
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Social entrepreneurs have an impact on communities or community welfare for example such as double bottom welfare businesses through a social attribute or grant -dependent community initiatives. where as Aesthetic entrepreneurs deals with developments in art, music and architecture. For example they might see themselves as first and best artists, designers or architects which makes them different from others and in this process they become wealthy.
Bolton and Thompson (2003) have offered a framework to difine a entrepreneur depending upon six characters they are Focus, Advantage, Creativity, Ego-inner and outer, Team, Social
Focus covers target focus, time focus and action focus which provides an evidence of urgency by an entrepreneur to get on with things. Creativity involves ideas and opportunities. Advantage differentiates betweeen the value created and added. Ego has six components split into inner and outer ego the inner ego includes motivation, self-assurance and dedication. The outer ego includes responsibility, accountability and an ability to deal with set backs. Team is a distinct feature that manipulate the characteristics of focus, advantage and creativity. Social influence the nature of the business whether it is a profit or non profit business and it also effects the culture and style of an organisation in which way the employees are treated.
Characteristics of an entrepreneur
Education
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Education is an important character of an entrepreneur. Education gives an individual a lot of support and knowledge to be an entrepreneur For example, the majority of engineers worked for state governments where they were valued for technical skills but now many engineers are starting up small companies which they can develop by their own skills (Shinnar et al, 2009).
Previous work experience
Any individual who starts up a new business, they have a previous work experience whether they worked as managers or any other managerial positions. Moreover, any individual who has an experience can start up a new business. In addition to this, who worked abroad will have a tendency to export if once they start the business at local level. The 75% of an individual who had an experience of working as any type of managerial positions would have a tendency to become an entrepreneur (Kinsella et al, 1993).
Family background
If any of the parents are self-employed i.e. who have their own businesses, this increases the tendency to keep a new venture creation. And if one or both parents are self-employed, they can expose the skills, attitudes, values to their children and this will direct them to become an entrepreneur. The future entrepreneurs can take their parents as a role model; this would be no matter whether they are successful or unsuccessful. a research done by O’Farrell'(1986) showed that 46% percent of the new firm founders had fathers who were self-employed at a time when 26 percent of the population was self-employed.(O’Gorman & Cunningham,1997) Those new firms does not include the inheritance
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Economics change:
Economics change may trigger the wave or fashion that being entrepreneurial. After the economic reform issued in 1978 (planning market to free market), most of people in Africa started their own business lead to the huge change in areas of traditional industry business. (Kanungo, 1998) For example, papermaking industry. And the people in Asia are also encouraged to start there business. Tey are few european countries effected more due to a poor natural climate; therefore the government encourages people to start their own business. It also can be interpreted as a creative response to the change condition ( Schumpeter 1947).
Culture difference
Culture affect plays a very important character of being an entrepreneurial in which some culture entrepreneurship is a very norm behavior. For example, the Amish is a religious group which now residence in Ohio and Pennsylvania. The culture of the group decides that they do not work with the people that do not share the same tradition, rather to make a choice of working for companies; they prefer to be self-employed or work amongst themselves. (Kanungo, 1998) It can show that when culture value or the belief of life take an important role of decision making, which makes an individual to start his own business.
Previous work experience
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Any individual who starts up a new business, they have a previous work experience whether they worked as managers or any other managerial positions. Moreover, any individual who has an experience can start up a new business. In addition to this, who worked abroad will have a tendency to export if once they start the business at local level. The 75% of an individual who had an experience of working as any type of managerial positions would have a tendency to become an entrepreneur (Kinsella et al, 1993).
Birth in a family
In a family, children who are first born in a family have more chances to take an entrepreneur carrier. The reason is that because they get more attention and encouragement from their parents. The survey done by Hisrich, involving over 400 female entrepreneurs found that 50% were first born.
Gender differences
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Every human being thinks differently according to their mental and physical ability’s. The male and female conceiving and using their mind would be different in their behaviours and their attitudes and their personal background. In addition to this, the tendency to become an entrepreneur would be high in males when compare to females. Females have low aggressiveness to start up a business rather than males (Al-Harby et al, 2009).
Roles of an individual to be an entrepreneur
Innovativeness
Innovation is one of the important character of an entrepreneur which includes creating of new products or new quality, creating new methods of production to get into the market or to create a new organisation or structure in business. A successful innovation demands a will which is, it demands the leader of the innovation (Hansemark, 1998). Innovativeness is a behavior of a person which characterizes the difference between entrepreneurship and entrepreneurial orientation (Entrialgo et al., 2000). Innovation is a systematic search for opportunities in new market,produts or ideas (Cromie, 2000; Utsch and Rauch, 2000).
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Need for achievement
The theory of McClelland (1961) on the need for achievement is one of the most applied theories on entrepreneurship which suggest that, the need for achievement forces the person to struggle for the success (Sagie and Elizur, 1999). A person who as a strong need for achievement can solve problems themselves, set targets and achieve the targets by their own efforts and they also deliver high performance in achieveing the tasks and innovative in doing things (Littunen, 2000; Utsch and Rauch, 2000).
Locus of control
Locus of control is also an important character which is related to a individual as whether he or she can handle the events in life (Leone and Burns, 2000). An individual with external locus of control belive beyond the circumstances like luck and fate, where as individual with internal locus of control belives in personal control events and effects in lives (Koh, 1996; Riipinen, 1994; Hansemark, 1998). For an individual to become a entrepeneur he should have a internal locus of control.
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Risk taking tendency
Risk taking tendency refers to an individual who can handle or avoid the risks in a situations when needed. An enterpreneur is associated with risk, Chantilon (1755) report suggest that the main factor of differentiating entrepreneurs from a employed workers was a dout and risk involved by the former (Entrialgo et al., 2000; Thomas and Mueller, 2000). The difference between the manager and the entrepreneur in a business activities are entrepreneur personally takes all the risks an profits involved in the business howevery an individual who is in uncertain environment causes risks related to financial well-being,career opportunities, family relations and emotional state (Erdem, 2001; Brockhaus, 1980; Littunen, 2000).
Tolerance for ambiguity
Uncertainty occurs when there is an insufficient data. An individual should respond positively to ambiguous situations. People with low level of tolerence for ambiguity find uncertain and unstructured situation more complicated. Entrepreneurail managers are belived to tolerate ambiguity better than the conservative mangers in the organisations because entrepreneurail managers face a less structured , more uncertain set of possibilities and bear the whole responsibilities for decision making (Entrialgo et al., 2000).
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Self confidence
An individual should have a self confidence because they work on complete demanding tasks Cromie (2000) suggest that self confidence is an outcome of an entrepreneurship an entrepreneur demonstrates a higher degree of self confidence when compared to others (Koh, 1996; Robinson et al., 1991).
Positive motions
Many researches suggested that feelings and activeness of personality are motive forces for all human creations. The positive motions affect the variables called feelings and emotions which is a link between them and they are analysed in different environments. The positive motion indicates the positive feeling which promotes creativity.
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Creativity
Creativity performs a link between positive motion and innovation and also performs a link between creativity and starting up a new venture. Creativity is considered as one of the most important factors for creation of new venture which is created by individuals and called as entrepreneurs. It includes the outcomes generated by creativity. Many business ideas are generated by creativity but the creation should be in such a way that they are commercially feasible to implement the ideas into real world (Baron et al, 2009). There are few factors influencing the creation of new ventures. The factors are as follows (Tidd et al, 2005).
Understanding the opportunity
Entrepreneur is one who explores for changes, responds to it and searches for an opportunity. The opportunity describes the area of need or challenge on which the problems should be focused. And problems should generate answers to bring the key information and feelings etc. (Bessant et al, 2007).
Community culture
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The community culture itself tells about how entrepreneurship is influenced. The cultural differences show the base of different levels of entrepreneurship. The culture community gives the status to those who are entrepreneurial (Berger, 1992).
Technology and markets
A technical standard is ordered by a legislative body and measure the rule which is enforced by an authority or by a committee or by a market. Entrepreneur controls the standards for a specification like micro computer interfaces. The standards explain the private and public conditions. When a standard is coming out into public view, government control the standards like metre length etc. Market will change the trade as slowly improves the business with the standard technology used by entrepreneur. This focuses on the private gain rather the public gain (Berger, 1983).
Can entrepreneurship be taught?
Education of entrepreneurship has a positive correlation. (Mancuso & Mascolo, 1987) therefore, nowadays more and more course are to design for entrepreneurship education, and to identify whether the content taught in school has a positive correspondence with the practice of an entrepreneur, Bush, Edelman and Manolova conducted the research which show that only nearly half of the start-up activities were discussed in the teaching content. It implies that there are still some areas have not taken into accounts for its lack of teaching experience or lack of the full research on the relation between entrepreneur and teaching context.
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Not only the skills of the activities such theories involved in start-up enterprise can be taught in the context (Bush & Edelman & Manolova, 2008) but also students needs to be trained in practical study. Especially to the student with engineering background, since most of them may not passion for a theoretical practice based course, it is important to enable them with the theory to the real practice, working with different people generate more new ideas and being creative. (Ulijn, Aaltio, Menzel,2007).
Conculsion
The above discussion tells about that there is no exact definition of the entrepreneur. And also identifies that there is no exact proof of entrepreneur is born or made. Entrepreneurs are made with specified characteristics like education influences to be an entrepreneur but also born with specified background or followed by hereditary business. But above literature suggests that entrepreneurs are made, they are not born. A success in entrepreneur achieves with combination of characteristics and roles . Few researchers identified that entrepreneurs are born and not made. The research findings may differ from one person to another but some researchers also specified that entrepreneurs are made and not born.
Bolton, W.K. and Thompson, J.L. (2000), Entrepreneurs: Talent, Temperament, Technique, Butterworth Heinemann, Oxford.
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Bolton, W.K. and Thompson, J.L. (2003), The Entrepreneur in Focus: Achieve your potential, Thomson, London.
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