11

Transcript

Hello!! Friends in our previous class we were discussing about the typology of entrepreneurial firms. Where in we have seen four different types of firms which have a specific characteristic and behave in a certain direction. In this class we will be discussing about what makes an entrepreneur and what are the factors that influence the entrepreneurial behavior of an entrepreneur. Let us start with the functions of an entrepreneur. With this I am just brushing your memory because we have already discussed the functions of an entrepreneur. The first and foremost objective of an entrepreneur is determination of objectives for his venture or the enterprise. Then the second function of an entrepreneur is to build the organization to satisfy the objectives that he has set for and securing adequate financial resources is another function and the technological equipment and the revision of the technological equipments as and when it is necessary. The fifth function of an entrepreneur is to develop the market for the products and the sixth and the most important one is the maintenance of the good relationship with public authorities and with society at a large. With these basic functions of an entrepreneur when an entrepreneur begins with his enterprise he needs good number of support from different sections, then so under such circumstances the guiding principles of the entrepreneurs, there are four guiding principles that we can say, number one Belief in ones ability to succeed, the second one is Prioritizing the relevant learning. What is the prioritization of this relevant learning which includes the things what I have learnt so how I am going to make use of, so that is what is the basic understanding here. So with that learning so how can I provide the appropriate services and the appropriate goods to the people who are having faith in this particular enterprise so that is what is the belief in ones own ability to succeed.

The Proactive approach – the Proactive approach of an entrepreneur helps him because he is anticipating these things and he is becoming more active before exactly he faces the problem. So that is what your proactive approach. He never waits for the problem to appear and then to solve that particular problem. Before, coming to the problem, before problem appears him he only anticipating that one and he is making an deliberate attempt to solve that one so that is what your proactive approach. Then the next principle is the patience. To what extent that you are humble in your approach and to what extent you can sustain your efforts over a period of time so that is going to make you a successful individual. So, Bill Bolton in the year 2000 said that the Talent, temperament and the technique are the three basic ingredients to be a successful entrepreneur. The talent says about the innovation, the temperament makes you to be a successful entrepreneur and that makes you an economic man and the technique is the skill with which that you are working may it be related to the technical skills, the technological skills, the communication skills, the managerial skills, various type of skills that are part of this technique. So, if you have these three things so then you can be a successful entrepreneur. So, that is what is going to make you an entrepreneur. There are various personality factors that influence your entrepreneurial behavior in which we have already discussed about the motivation and we will be discussing about in detail also in the next class and the emotion which gives the drive and purpose and self confidence of an individual so that drives you to be a successful entrepreneur.

The high need for achievement drives you to be an entrepreneur because if you lack this need for achievement, before we enter into the need for achievement let us try to understand what exactly the need is. The need is basically the difference between what is and what are to be. So when you know that what is which gives you the exact existing situation, the prevailing situation and what ought to be the desired situation. So what ought to be has lots of limits or we can say that it is limitless. If you want to achieve that particular thing so then obviously you are becoming an entrepreneur. Then the competitiveness – to what extent that you are competitive. So you are competing with your own standards or you are competing with others. The competition with self is the best form of competitation as said by most experience people. So here we can quote one of the famous sportsman who was the famous sports man of Pole vault who has broken his own international records 17 times Sergey Bubka. So he has broken his own records 17 times, so that is what is the level of competitiveness that he has and the hard work that he has put in. Then the need for independence which is the basic quality of an entrepreneur which makes you an entrepreneur.

Then coming to the environmental factors which influence the entrepreneur include the family background. Obviously, and while defining the concept of entrepreneur itself we said that entrepreneur is the product of a social situation. Wherein the family comes first. Wherein his parents and the qualities that he or she has inherited from their forefathers, so all these factors are going to influence the individual to be a successful entrepreneur.

Education which is not much important, means the formal education is not much important to be a successful individual, but the nonformal education or the informal education of an individual definitely plays the key role and they are the key things to be a successful entrepreneur, and he has to start at an early age. So coming to the work experience which is very very important because based on his own experience the entrepreneur is going to build empire of his own desire and the Action factors what entrepreneurs do. Because many times we plan but it becomes very difficult to implement. So, entrepreneurs are action oriented. It is what we plan is more important but how we act it becomes more critical as far as the entrepreneur is considered. So the entrepreneurs are very creative and innovative and since beginning we have been emphasizing on the innovation and without innovation the entrepreneur cannot sustain. Spot and exploit the opportunities. The spotting of this opportunities means, the opportunities are lying in the environment in which we live but to what extent we are able to catch those opportunities that depends on each and every individual and how can we exploit these opportunities for our betterment and for the betterment of my society that depends on that particular individual and that is what is going to make you a successful entrepreneur. Then find a resource to exploit these opportunities is another thing which makes successful entrepreneur. Then management of the risk creation of the capital. As he needs capital implementation of his own ideas, at the same time after implementation of his ideas, he is going to be the creator of that capital and he can sustain the further innovations and basically the entrepreneurs are good networkers and they have the quality of determination. All these things are going to influence to be a successful entrepreneur. So put together we can say that so these are the factors which have been called out after a series of research efforts that the factors which are affecting the entrepreneurial behavior as reported by various researchers from different parts of the country include number one which is Family background, which has already been emphasized in various efforts. Then the achievement motivation of an individual, the social participation. To what extent he is active in various activities of the society. So, that makes him a more successful entrepreneur. Then the educational background this education again means does not necessarily mean only the formal education the non formal and the informal education. The training which is the inseparable part of the entrepreneurial behavior we can say then the size of holding and the age as far as the farmers are considered. Then perception of the market factors. In case of agricultural entrepreneurs we are not at all thinking anything about the market factors but as far as the entrepreneurs in the production, or in the processing, or in the service sector they are mostly concerned about the market factors and accordingly they are developing their products. Then the selective exposure through which they want to develop their own specializations and they want to enter into the market with that particular thing and that shows in Indian context the caste also plays the dominant role and the information sources utilization – so these sources of information which were rare before the revolution of information communication technologies. After the revolution in case of information communication technologies, the sources of information are open to each and every individual. So now I don’t have an access to appropriate information, it is not that I am blaming an individual I have to blame myself because I have also have an equal opportunity of getting information from the same source where the most informed man is getting permission. The value orientation and the socio cultural factors are the societal factors which influence the entrepreneurial behavior of an individual.

The support system – we can say that the institutional support for the development of for the concept of entrepreneurship. There is huge list of institutions which are providing the support system to develop entrepreneurship. The type of environment we can create. So it may be the programs like in western India or investment in particular state and what type of policy framework that the state is providing. All these are going to create an appropriate environments as far the as entrepreneurship is considered. The cosmopolitness of an individual. To what extent he is exposing himself to various other institutions, other areas, other cities or countries or whatever it is. That goes hand in hand along with the mobility of an individual. The highly mobile individual obviously he is cosmopolite in nature. The socio economic status, the extension contact, mass media exposure, the experience and the self confidence, risk orientation, decision making behavior, result orientation, Innovative orientation, progressive values, regular support of raw material and the market linkages all these factors are contributing for the entrepreneurial behavior of an individual. Last but not the least the intuition – the internal feeling of that particular individual which takes him to different heights. So that also contributes to the maximum extent to be a successful entrepreneur. So with this we have discussed various factors which are influencing successful entrepreneur.”>