Q.Define entrepreneur and explain the characteristics.

An entrepreneur is a person who starts and runs an enterprise by organising resources, innovating and bearing risk in the hope of profit. Important characteristics are risk-bearing, innovation, initiative, foresight, leadership, decision-making ability, hard work and self-confidence.

Meaning / Definition of Entrepreneur

The word entrepreneur comes from the French 'entreprendre', meaning 'to undertake'. An entrepreneur is a person who perceives a business opportunity, brings together the factors of production - land, labour, capital and organisation - and starts an enterprise, bearing its risk and uncertainty in order to earn profit. Richard Cantillon described the entrepreneur as a risk-bearer, and Joseph Schumpeter stressed the entrepreneur as an innovator.

Characteristics of an Entrepreneur

1. Risk-bearing - An entrepreneur invests capital and accepts the uncertainty of profit or loss.
2. Innovation - He introduces new products, methods, markets or sources of supply.
3. Initiative and drive - He takes the first step in launching the venture and keeps pushing it forward.
4. Decision-making ability - He takes quick, sound decisions on what, how and for whom to produce.
5. Leadership and organising skill - He leads and motivates the team and organises resources effectively.
6. Foresight and vision - He anticipates future market changes and plans accordingly.
7. Hard work and perseverance - He works long and tirelessly to make the enterprise succeed. …