The word “Entrepreneur” has been adopted from a French verb “entreprendre” which means to undertake. The concept of entrepreneurs has existed in Indian culture for a long time but it was never really appreciated. An entrepreneur is an individual or a group of individuals who initiate a business from scratch and take benefits of coming opportunities. He undertakes a venture and takes all the decisions about it about how much finance he needs, sources of finance, production volume etc. It is not important that an entrepreneur has to set up a manufacturing unit. He can set a new business in service sector also. Not every new venture becomes successful. But there are some characteristics which give an entrepreneur an upper hand. A successful entrepreneur must be enthusiastic and determined. Enthusiasm and determination are required at every stage of entrepreneurship, not just only in beginning. He shall always be self – motivating. An entrepreneur should be very creative. He shall be able to think out of the box and should have new and innovative ideas. Persuasiveness helps an entrepreneur to go a long way in his journey. He can easily convince a client which is always beneficial. Even versatility is very important when it comes to being an entrepreneur. He shall be able to tackle every situation that comes their way equally well. He should be decisive in nature. He shall possess the ability to take favorable decisions in due time. He shall be a risk taker but in limits. It is usually said that more risk indicates more profit. But the risk taken should be a calculated one. He shall not be afraid of taking risks. He should be flexible and open-minded about the changes that take place in the dynamic environment. He shall have amazing business skills and future vision. An entrepreneur shall never stop believing himself and shall never doubt his skills. Having proper knowledge about the market in which the firm is entering will help in growing more rapidly.
It is a perception that a businessman is an entrepreneur. But this is not true. There are many differences amongst the two. A businessman need not take innovation into account whereas innovation is very important when it comes to entrepreneurship. Businessmen are usually risk-averse and they prefer not to take a high degree of risk but on the other hand, an entrepreneur loves to take a calculated risk. A businessman treats his employees as an owner or boss but an entrepreneur is a leader of his employees. A businessman is a very traditional term where no originality exists whereas an entrepreneur is a 21st-century term which symbolizes originality of thought and action.
Definition of an entrepreneur is very often mistaken. People think that a person who is a businessman is an entrepreneur but that is not true. An entrepreneur starts his business from the very beginning and takes the risk.
There is also one more term “Start-Up” which is equally confusing. An entity will be known as a startup in its first five years of incorporation. Also, When it’s turnover will not exceed 25 crores in its last financial years, an entity will be termed as a startup. When an entity is working towards innovation, new products, development, commercialization or services that are driven by technology or intellectual property, it will be given a status of a startup.
Passion, determination, and perseverance play a very vital role in entrepreneurship. One should be aware that entrepreneurship is not a cake walk. It is a roller coaster ride. But when you have a passion for something, you will drive through. Perseverance and passion help an individual in sticking through and coming out strongly out of a storm of being an entrepreneur.