Entrepreneur Characteristics in Business and Socioeconomic Development


To be a great entrepreneur, you must have 'a fire in the belly or the burning desire to turn your company’s ideas into reality and success. According to Peter Drucker, entrepreneurship is "a systematic innovation that consists in the deliberate and organized search for changes and the methodical study of the potential such changes may give for economic and social innovation." It's the natural capacity to develop and create something valuable and profitable. In a larger sense, entrepreneurship is a mindset that seeks out complex possibilities, takes only sensible risks, and focuses on the advantages of establishing a successful business.

Entrepreneur Characteristics in Business and Socioeconomic Development

Most of the functions that come with entrepreneurship's characteristics focus on broader socio-economic development. The essential duties of an entrepreneur are discussed below.

A risk-taker is an entrepreneur.

According to Shawn Finnegan in Utah, Entrepreneurship is all about having the desire and foresight to take calculated risks to make a profit or loss. If not original, he believes that an entrepreneur must be risk-taking, forward-thinking, and efficiently aware. The position of an entrepreneur entails both calculated and unmeasured risks. On the other hand, a successful entrepreneur can anticipate and take unmeasured risks in his firm, turning them into possibilities for development and profit.

An innovator as an entrepreneur

Entrepreneurship plays a critical role in integrating previously untapped information and establishing new forms and functions of production to develop, manufacture, and sell unused and creative goods. As Joseph Schumpeter pointed out, innovation does not require that anything be found for the first time. An entrepreneur can make use of previously untapped information in the manufacturing process. In addition to being an innovator, an entrepreneur must be capable of turning an idea into a profitable commercial venture.

As a leader, the entrepreneur

Entrepreneurship plays one of the essential functions. An entrepreneur, according to Alfred Marshall, "must be a natural leader of men who can correctly appoint assistance but also exert general control over everything and maintain order and unity in the primary plan of the company." He should be on the lookout for new approaches that are certain to be the most cost-effective given the current expenses. He should be born with the ability to guide the company and its employees toward a better socioeconomic situation in the long run.

Entrepreneur as Perceiver or Restorer

According to John Bates Clark, Entrepreneurship is the act of sustaining coordination and returning the socioeconomic system to a state of effective equilibrium. Entrepreneurs explore new attractive prospects and dangers via a complete "discovery process," bringing the market closer to peace. The role of entrepreneurship is to be aware of lucrative business prospects, and a successful entrepreneur's perception is a critical feature in this regard.