Based
on the interaction with the business environment, various types of
entrepreneurs can emerge. To this effect, we identify the four types of
entrepreneurs as:
·Innovative
·Imitating
·Fabian
·Drone.
1. Innovative: This
type of entrepreneur is preoccupied with introducing something new into the
market, organization or nation. They are interested in innovations and invest
substantially in research and development.
2. Imitating:
These are also referred to as ‘copy cats’. They observe an existing system and
replicate it in a better manner. They could improve on an existing product,
production process, technology and through their vision create something
similar but better. This is the case of the student becoming better than the
master!
3. Fabian:
These are entrepreneurs that are very careful and cautious in adopting any
changes. Apart from this, they are lazy and shy away from innovations.
4. Drone:
These are entrepreneurs that are resistant to change. They are considered as
‘old school’. They prefer to stick to their traditional or orthodox methods of
production and systems.
Entrepreneurs
occupy three roles, namely as agent of
(1)
Economic Change
(2)
Social Change
(3)
Technological Change.
These
are referred to as behavioral roles. The types and roles of entrepreneur
notwithstanding, all entrepreneurs possess certain characteristics and are
motivated to become entrepreneur due to certain factors or circumstances which
we shall discuss.
Characteristics of Entrepreneurship and Entrepreneurs
Scholars
do not agree on the characteristics possessed by entrepreneurs.
Hence,
several scholars through various studies identified several characteristics or
traits possessed by entrepreneurs some of which are discussed as follows.
Creative Activity:
Entrepreneurship entails innovations. It deals with product innovation,
production techniques innovation while bearing in mind the market.
Dynamic Process:
Entrepreneurship is a dynamic process that has to bear in mind the dynamic
business environment.
Purposeful Activity:
Entrepreneurship is an activity embarked upon for a specific purpose. This
could be for profit making purposes, for humanitarian purposes or to bring a
difference to the market.
Involves Risk:
Entrepreneurship is a very risky venture; entrepreneurial decisions can have
far-reaching impact on the organization, people in the organization and even
the economy. These decisions are critical, enormous and cannot be easily
reverted.
The
following are characteristics of entrepreneurs as:
·Risk bearing ability
·Technical knowledge
·Ability to gather financial
·Motivational resources.
On the
other hand, we regards the major characteristics of entrepreneurs as: self-
confidence and being multi-skilled, confidence in the face of difficulties and
discouraging circumstances, risk-taking, innovative skills, results-oriented,
total commitment. Stephenson (2010) believes that entrepreneurial
characteristics are: seriousness, planning ability, prudence, and team work.
Hadzima and Pilla (2010) conclude that the characteristics of highly effective
entrepreneurs include: ability to deal with risk, being results oriented,
enthusiasm and energy, growth potential, team work, multitasking ability and
improvement orientation.
Driessen
and Zwart (2010), after carefully studying various researches conducted into
the characteristics of successful entrepreneurs, identified three main
characteristics and five secondary characteristics of successful entrepreneurs.
According to them, the main characteristics are: need for achievement (n Ach),
internal locus of control (ILOC) and risk taking propensity (RTP), while they
also stated the five secondary characteristics as: need for autonomy (n Aut),
need for power (n Pow), tolerance of ambiguity (ToA), need for affiliation (n
Aff), and endurance (End). They then concluded that in these studies,
successful entrepreneurs score significantly higher on these characteristics
than less successful entrepreneurs, small business managers, and
non-entrepreneurs
Other
characteristics identified are:
discipline,
vision or creativity, calmness, risk tolerance: Focused, balance, commitment,
perseverance, initiative, versatility, dynamic, knowledgeable/skilled,
emotional or mental strength, and resilience. A careful look at the
characteristics listed above reveals that some of them overlap while most of
them are divergent thereby further fuelling the debate. Some of these
characteristics are briefly discussed below
Risk Bearing Ability:
The entrepreneur must have the capacity to bear risk. This is because the new
venture is created in an uncertain and risky environment. Di-Masi (2010,
however, noted that although risk bearing is an important element of
entrepreneurial behavior, many entrepreneurs have succeeded by avoiding risk
where possible and seeking others to bear the risk. Basically, what he is saying
here is that entrepreneurs bear calculated risks and are more than glad to let
others bear their risk when it is convenient for them.
Technical Knowledge:
Depending on the kind of venture created, the entrepreneur must have technical
expertise about production techniques and marketing.
Ability to Gather Financial and Motivational Resources:
Financial and motivational resources are needed for the creation of the new
business. Sometimes the entrepreneur, as an individual may not have these
resources but he/she/they should have the ability to gather it from those who
have it.
Self Confidence and Multi-Skilled:
The entrepreneur must have self -confidence and believe in him/herself.
Self-confidence is an important characteristic that enables individuals to
handle any situation without having inferiority or any other type of complex.
The entrepreneur also has to be a jack of all trade and master of all. He/she
must possess different skills unlike other individuals. For instance, assuming
an entrepreneur is a marketer, the entrepreneur should not only possess
marketing skills and interpersonal skills but also language skills i.e. ability
to speak more than one language. This definitely will be an added advantage!
Confidence in the Face of Difficulties and
Discouraging Circumstances: The entrepreneur must be steadfast and
resolute and be ready to move on even in the face of adversity. He/she should
be a ‘never say never’ kind of person; everything is possible for the
entrepreneur.
Innovative skills:
The entrepreneur may not necessarily be an 'inventor' but the one that can make
a difference; he/she should be able to see what others cannot see and be able
to carve out a new niche in the market place.
Results-Orientated:
The entrepreneur is one who knows how to get results under any circumstances
either with others or through others. The entrepreneur does this by setting
goals and ensuring that such goals are doggedly pursued by all concerned
willingly and with joy.
Risk-Taker:
The business environment is dynamic and filled with uncertainties and risk. In
order to succeed the entrepreneur has to take risk. Successful entrepreneurs
take calculated risks and in some cases shift the risks to others.
Total Commitment:
Starting /creating a new business is a serious exercise that requires a lot of
commitment and hard work. It is like bringing a child into the world and
nurturing the child to adulthood. This requires commitment, dedication, hard
work, energy and single mindedness otherwise the ‘child’ (i.e. business) may
die prematurely (Di-Masi, 2010).
Calm: Entrepreneurs need
to be cool, calm and collected. They have to remain calm even when exposed to
stress, emergency or crisis situations.
Focused: In
getting things done and starting and maintaining a business attention has to be
paid to a lot of details. Small things when not handled properly or noticed on
time may lead to disastrous outcomes.
Tolerance:
The entrepreneur has to relate with people. People vary in terms of their
perceptions, personality, motivations and attitudes amongst other things. The
entrepreneur needs to be tolerant while not being weak, in order to get things
done.
Balance:
Though, the entrepreneur is a human being, he/she has to be like a super human
being in order for him to succeed. To this effect, he/she has to be able to
balance all emotions and characteristics and remain focused and objective while
having emotional or mental strength and resilience. Balance is important
because too much of everything is bad.
Versatility:
The entrepreneur has to be versatile and be ready to learn and use information
technology and other technology to the best advantage.
Seriousness:
The entrepreneur has to believe in him/her and the business and get things done
with total seriousness. As mentioned earlier, starting a new business is like
giving birth to a child; it is indeed a very serious business.
Planning Ability:
The entrepreneur must be a planner; he/she must formulate goals and develop
action plans to achieve them. Planning is important for he/she who fails to
plan, plans to fail!
Prudence:
The entrepreneur must be versatile in financial management. This is because
finance is the life-wire of the business. Also, to achieve the profit
objective, the entrepreneur must engage in efficient and effective financial
management, and have sound financial policies and practices.
Customer-Centric:
Businesses are created to satisfy unmet needs. A successful entrepreneur must
be able to anticipate customers’ needs and satisfy them through his/her product
offerings. To do this effectively, the entrepreneur has to adopt a
customer-centric or customer-focused approach.
Team Player:
Creating a successful business is a one man business but maintaining and
sustaining the business cannot be done by one person. The entrepreneur needs
others to work with him hence he has to have a formidable or winning team. To
this effect, the entrepreneur has to be an effective team manager and recruit the
right team members but the entrepreneur’s most important team members are the
customers for without customers a business cannot survive (LifeHack, 2008;
Rockstar, 2008; Di-Masi, 2010; Driessen & Zwart, 2010; Hadzima & Pilla,
2010 Stephenson, 2010).
Roles of Entrepreneurs
In order to perform their functions effectively and operate a successful business, entrepreneurs have to perform certain roles. These roles are the same as the basic managerial roles which are identified by Henry Mintzberg in 1973.
They are
as follows:
Figure Head Role:
The entrepreneur has to act as figure head in the organization, as such; he/she
has to perform ceremonial duties. This is done by representing the organization
in formal and informal functions.
Leader Role:
The entrepreneur has to act as a leader because the entrepreneur is the one who
brings other people together in order to create the business. Thus, he/she has
to lead the people in the organization by hiring, firing, training and
motivating them.
Liaison Role:
The entrepreneur has to act as the link between the business and the parties
outside the business.
Monitor Role:
The entrepreneur acts as a monitor; he monitors both the internal and the
external environment of the business constantly.
Information Disseminator Role:
The entrepreneur has to act as the organizational representative and transmit
information both within and outside the business. Spokesman Role: The manager
has to act as the spokesman of the business; he/she is the person for the
business both inside and outside.
Entrepreneurial Role:
This is the basic role of the entrepreneur; he/she launches new ideas for the
business and bears the risk.
Disturbance Handler:
The entrepreneur also acts as arbitrator in situations of conflict so as to
maintain organizational harmony.
Resource Allocator:
The entrepreneur decides on how the scarce resources of the business are
allocated among its competing ends so as to achieve organizational goals and
objectives.
Negotiator Role:
The entrepreneur has to negotiate on behalf of the business both with the other
categories of labour and other outside sources. The specific entrepreneurial
roles noted earlier on have a number of activities in each role.
They
are specified below:
Social Roles of Entrepreneur
· Transformation of traditional
indigenous industry into a modern enterprise.
· Stimulation of indigenous
entrepreneurship.
· Job or employment creation
in the community.
· Provision of social
welfare service of redistributing wealth and income.
Economic Roles of Entrepreneur
· Bearing the ultimate risk
of uncertainty.
· Mobilizing savings
necessary for the enterprise.
· Providing channel for the
disposal of economic activities.
· Utilizing local raw
materials and human resources.
Technological Roles of Entrepreneur
· Stimulation of indigenous
technology in the production process.
· Adapting traditional
technology to modern system.
· Adapting imported
technology to local environment.
· Developing technological
competence in self and the workforce through innovation (Ogundele, 2007).
0 Comments