Monday, 29 July 2013

Exposition of the Entrepreneur



Exposition of the Entrepreneur

Definition of an Entrepreneur


The importance of entrepreneurship demands on true understanding of the concept entrepreneur. Mare (1996) defines an entrepreneur as a person who initiates new circumstances through innovative action and is able to capitalize on opportunities in their striving to generate wealth. Entrepreneurs can be described as people who have the talent for seeing opportunities into profit making businesses. Entrepreneurs are individuals who recognize opportunities where others see chaos and confusion.

        Drucker (1985) states that entrepreneurs see change as the norm and as healthy. The entrepreneur always searches for changes, responds to it and exploits it as an opportunity.  According to Drucker (1985) the act of starting or owning a small business does not in itself make one an entrepreneur so as much as the ability to innovate and exploit opportunity.
        A common trend in the definition of the entrepreneur is that the entrepreneur is regarded as an individual with the potential of creating a vision from virtually nothing. This is fundamentally a creative action where energy is invested in the initiation process by initiating the start-up of an enterprise rather than to merely analyze and be an onlooker in the process of forming a new enterprise. Furthermore, this vision and action involves taking calculated risks that includes personal, social, psychological as well as financial components. The entrepreneur does everything possible to achieve the set goals and to avoid the possibility of failure.
 

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