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Economists define an entrepreneur as someone who combines resources, labour, materials and other assets to make
a profit. Psychologists describe an entrepreneur as someone driven by a psychological impulse, often characterised by
a strong desire to achieve or attain specific goals. Sociologists define an entrepreneur as an individual whose actions
influence social status and play a significant role in driving societal progress. Management experts define an entrepreneur
as someone who has a goal and creates a plan of action to realise it.
4.1.1 Entrepreneurship Characteristics

The following are some of the characteristics of entrepreneurship based on the definitions provided:
• Economic Activity: Entrepreneurship involves establishing, developing, and sustaining a profit-driven organisation.

• Opportunity Identification: It begins with recognising potential opportunities to sell products or services and
generate profit in the market.
• Resource Optimisation: It focuses on the efficient utilisation of resources to maximise outcomes.

• Risk-Taking: It reflects the willingness of both the entrepreneur and the organisation to take calculated risks.
4.1.2 Entrepreneurship—Science and Art

Entrepreneurship is seen as an art as much as a science. To be termed scientific, a subject must have a gradual progression
supported by reliable proof, such as chemistry or physics. Some steps must be taken in order to achieve a specific result.
On the other hand, some subjects are classified as art, where no exact method of achieving a result is required and the
ability to use the subject matter is essential. Music is an example of art. A musician can use any combination of musical
notes to create calming and heartfelt music. Entrepreneurship is the perfect combination of art and science because it
involves definite progression and procedures to be followed as well as the ability to deviate whenever necessary while
still making the entire activity profitable and growth-oriented.
An entrepreneur is someone who has the ability to establish a business by organising the numerous resources needed
to make a business possibility a reality. Profit is not always motivating for entrepreneurs, but it can serve as a yardstick
for assessing performance or success.

4.1.3 Qualities of Successful Entrepreneurs

Entrepreneurs possess many qualities essential for effectively managing a business. Among these, the following are
considered indispensable:

Willingness to
take risks

Ability to learn
Initiative
from mistakes
Qualities of
Successful
Motivation Self-confidence
Entrepreneurs

Ability to make
Hard work
decisions
• Initiative: In the world of business, opportunities emerge and just disappear. An entrepreneur must be able to take
the initiative and capitalise on opportunities. If a person misses out on an opportunity, it may never return. As a result,
the entrepreneur must take the initiative.
• Willingness to take risks: There is an element of risk in any business. It means that it is not required for every firm to
make a profit. This discourages people from taking risks and starting their own businesses. An entrepreneur, on the
other hand, always offers to take risks in order to manage a successful firm.

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