An entrepreneur runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale rather than just working as an employee for an organization.
Traditionally, an entrepreneur has been defined as a person who starts, organizes and manages any enterprise, and a business. Entrepreneurial spirit is characterized by innovation and risk-taking.
According to Hisrich and Peters (2002), “Entrepreneurship is the process of creating something new with value of devoting the necessary time, effort, assuming the accompanying financial, physical and social risk and receiving the resulting rewards of monetary and personal satisfaction and independence.”
So what are the factors needed for a successful entrepreneurship development?
At first you need to have a fresh idea which will be the core concept of entrepreneurship. You can have different types of innovation.
- Innovation of new product
- Innovation of new process of production methods
- Exploration of new markets
- Searching for the new sources and supply
- Innovation of industrial reconstruction method
The Business Plan
You need a business plan. Without planning success is very rare.
At the very beginning you need some basic things.
- Name and address of your business
- Name and address of the entrepreneur
- Nature of the business
- Statement of financing need
- Statement of confidentiality of report
You need to have a clear outlook of what you are going to do.
- Manufacturing process
- Physical plant
- Machinery and equipment
- Name of supplier of raw materials
- Marketing plan
- Product forecast
- Form of ownership
- Identification of partners or shareholders
- Authority principals
- Management team background
- Roles and responsibilities of the members of the organization
- Pro forma income statement
- Cash flow projection
- Pro forma balance sheet
- Break even analysis
- Sources and applications of funds
There are always some risks in entrepreneurship. Risk can lead your business to failure. So, risk analysis is very important.
- Evaluate weakness of business
- New technologies
- Contingency plans
Business plans are the helping hand for an entrepreneur. The business plans are designed to guide the entrepreneur through the first year of operations. Many entrepreneurs have the tendency to avoid planning. But without proper planning it is hard to exist in the long run. Planning is an important part of any business operations. Without good planning the entrepreneur is likely to pay an enormous price. Without good planning the employees will not understand the company’s goals and how they are expected to perform in their jobs. Planning is like a motivation. It will motivate you to hold your breath at the tough times and will increase your pace during the rising situation.
Entrepreneurship is a big deal. It helps capital formation, generation of employment, improvement in per capita income, reduces concentration of wealth, balanced regional development, resource mobilization, improvement in standard of living, national self-reliance, backward and forward linkages and many more. By following plans and with proper motivation Entrepreneurs can become milestones. But before all of these you should have a strong mental preparation for facing failure and keep in mind that failure is the pillar of success.