Wednesday, 21 February 2018

Qualities of a Good Entrepreneur

The personality of the entrepreneur plays a very important role in the success of a business. He is like the captain of the ship. He is one of the four factors of production namely, land, labor, capital and enterprise(entrepreneur)
Following are some of the qualities of a good entrepreneur-

1. Risk Taker- They say  "Fortune favors the brave". The entrepreneur is the true risk bearer of any business. Risk taking is the most important quality of a good entrepreneur. He should be able to take calculated risks. A completely risk-averse person cannot make a successful entrepreneur. Risk taking is the most important function of an entrepreneur. However, he should also not be too adventurous. There have been instances in the where global giants became bankrupt due to excessive risk-taking.

2. Innovator- In today's highly competitive business environment, it is only the innovators who survive and succeed. With the removal of restrictions on international trade, the companies all over the world compete against each other. Continuous innovation is the only road to success in the global economy.

3. Quick Decision Maker- The entrepreneur also should be a quick decision maker. Taking too much time in decision making can lead to loss of good business opportunities which could be costly in today's highly competitive business environment

4. Leader- An entrepreneur also needs to have good leadership skills. He has to lead his team from the front. He should have good listening skills. At the same time, he should be able to make his own decisions. He should be able to provide a sense of direction to his employees. He should be open to suggestions of his employees. He should be capable to keep his employees motivated as employees are the most important asset in today's business. Only the companies with highly motivated employees can succeed in the long run. “Take Care Of Your Employees And They’ll Take Care Of Your Business,” Says Richard Branson, Founder of The Virgin Group

5. Coordinator: Its the job of an entrepreneur to maintain a proper coordination between other factors of production, namely land, labor, and capital. He needs to maintain proper coordination among his team members so that they all can work together for the achievement of a common goal (the goal of the business). A successful business is all about teamwork as business is a team activity. Without proper coordination between various departments, the business cannot succeed

6. Planner - Planning is also a very important function of an entrepreneur. A company without planning is like a ship without a direction. Big businesses cannot operate without proper planning

7. Foresight- An Entrepreneur has to be a person with foresight. He should be able to see what's coming up in his industry. He should be able to spot likely future changes in his business and the economy, such as upcoming technologies, upcoming products etc. He should be pro-active rather than reactive. Otherwise, he may lose first-mover advantage (advantage of being the first company to enter a new product line, new business opportunity etc.

8. Knowledgeable- An entrepreneur cannot be ignorant about his business or the economy. Having a good knowledge base is always an asset, It helps his business to be one step ahead of the competition always. He should have complete knowledge about the business environment in which he operates his business like laws pertaining to his business, best business practices etc.

9. Flexibility- An entrepreneur has to be flexible by nature. If a plan doesn't work he should be flexible enough to make necessary changes to his plan or to follow an alternative plan

10. Good Communicator and Assertive- It is important for an entrepreneur to be a good communicator. Then only he can communicate his vision to employees clearly. An entrepreneur has to spend a lot of time communicating with various stakeholders of the business like the government, suppliers, customers, creditors etc. Hence an entrepreneur needs to have good communication skills. He should also be assertive in his communications and should know when and how to say "No"

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