An entrepreneur is individuals who conceive the idea of some innovation and take the initiative to transform that idea into a business. Rather than working as an employee they feel encouraged to assume all the risks and rewards of the venture. The idea can be related to the innovation of any new product or service or with innovative business procedures. Entrepreneurs have high importance in an economy, people who have the ability and skills to transform the needs of customers in the form of goods and services in the market. The importance of an entrepreneur can be evaluated from economics parameters. Economists categorize factors of production as land, labor, capital, and entrepreneur. Entrepreneurs combine all other factors and perform leadership activities and manage the business, they face many obstacles to build their company. the major obstacles or challenges faced by entrepreneurs are overcoming bureaucracy, talent acquisition and raising finance.
Entrepreneurial behavior is the behavior of the entrepreneur to undertake innovations and seek motivation for the change. It refers to the willingness of an entrepreneur to bring a change in the market and launch a new business. They plan their personal life in accordance with their passion for business.
Types of entrepreneur
- Innovative entrepreneurs are those who invent new ideas, innovations, processes, and methods for production to discover and grab new opportunities in the market. Innovative entrepreneurs are the main contributors to the development of the country and are valued by consumers for fulfilling their needs and demands in the form of goods and services. They have to bear high risk to innovate something new and create demand for that innovation.
- Imitating entrepreneurs are those who immediately copy the new innovations made by innovative entrepreneurs. They generally copy the innovation by using different resources other than used by innovative entrepreneurs. These kinds of entrepreneurs are mainly found in underdeveloped regions where resources are not properly available, and even lack of industry.
- Drone entrepreneur is conservative in nature; they are happy with their present condition and reluctant to make any changes in an organization. The efforts will not have made even if they are bearing losses.
- Fabian entrepreneur is very doubtful in nature; they do not take initiative if they are not sure about it. They are rigid in nature and do not accept change follow the traditional measures.
- Optimizer entrepreneurs seek opportunity in every circumstance and have a positive outlook towards life and work. They generally put efforts to transform their creativity into a business model to derive personal satisfaction.
- Visionary entrepreneurs are those who have a long-sighted vision of market conditions and demand and plan their product and services according to the future demand of consumers.
Importance of entrepreneurs
- Free market: Entrepreneurs set the market free and entertain the demands and needs of customers in the market by adopting the changes in new technology and trends and deliver it to their homes.
- Improve efficiency: a successful entrepreneur will put all the efforts and creativity to efficiently convert resources into final goods and services to fulfill the demand of customers.
- New markets: Entrepreneurs develop new markets by exploring new innovative ideas. They forecast the future needs of customers and develop products accordingly and create a new segment in the market.