Before i explain about entrepreneur and anything that include in it, you must to know, who are the entrepreneurs? Entrepreneurs are frequently thought to be individuals who discover market needs and launch new firms to meet those needs. They are risk takers who provide an impetus for change, innovation and progress in economic life.
- Entrepreneur is a person who is relentlessly focused on an opportunity, either in a new or existing business, to create value both for the customer and the owner. The entrepreneur assumes both of the risk and reward for his or her effort.
- Small business is a business that is small compared to large companies in an industry, is geographically localized, is financed by only a few individuals, and has a small management team.
Some rewards of entrepreneurship are :
- Profit : financial gain proportionate to personal achievement.
- Personal satisfaction : enjoyment of satisfying way of life.
- Independence : power to make own business decision.
- Personal fulfillment : contribution to the community.
- Freedom : escape from an undesirable situation.
The various types of entrepreneurs and entrepreneurial ventures.
- The types of entrepreneur
1. Founder entrepreneurs : an entrepreneur who brings a new firm into existence.
2. Franchisee : an entrepreneur whose power is limited by a contractual relationship with a franchising organization.
- The types of entrepreneurial ventures
1. High potential ventures (gezelle) : a small firm that has great prospects for growth.
2. Attractive small firm : a small firm that provides substantial profits to its owner.
3. Microbusiness : a small firm that provides minimal profits to its owner.
4. Lifestyle business : a microbusiness that permits the owner to follow a desired pattern of living.
Artisan VS Opportunistic Entrepreneurs
Because of their varied backgrounds, entrepreneurs display differences in the degrees of professionalism and the styles of management they bring to their businesses. The ways in which they analyze problems and approach decision making may differ radically.
- Artisan entrepreneur is a person with primarily technical skills and little business knowledge who starts a business.
- Opportunistic entrepreneur is a person with both sophisticated managerial skills and technical knowledge who starts a business.
- Entrepreneurial team consist of two people who work together as entrepreneurs on one endeavor.
Five potential competitive advantages of small entrepreneurial companies as compared to large firm.
- Customer focus : entrepreneurial manager have an opportunity to know their customer well and to focus on meeting their needs.
- Quality performance : by emphasizing quality in products and services, small firms can build a competitive advantage.
- Integrity and responsibility : independent business owners can build an internal culture based on integrity and responsibility in relationships both inside and outside the firm; such a culture have strengthen the firm’s position in a competitive advantage.
- Innovation and globalization : many small firms and individual operators have demonstrated a superior talent for finding innovative products and developing better ways of doing business in the global marketplace.
- Special niche : small firms that find a special niche of some type can gain an advantage in the marketplace.
Reference : Moore, Carlos W., et al. Managing Small Business, 15th edition (United State : South-Western, Cengage learning, 2010)