What is Entrepreneur

Entrepreneur
With the pursuit of self-fulfilment, the need for independence, the technology boom and changing mindsets, the World Bank's entrepreneurship Survey and Database records a booming growth in entrepreneurs. Several startups are getting built in different sectors, and entrepreneurship is rising. With successful entrepreneurs like Steve Jobs, Mark Zuckerberg and others paving the way, young and old alike are starting companies to build successful ventures on their own.

What is an Entrepreneur?
Considered the source of innovation and new business ideas, the entrepreneur definition includes an individual creating a new enterprise and bearing the risks and the rewards of the establishment. The process of establishing a business is known as entrepreneurship. They play a key role in the economy as they use their skills to study the market and bring new products according to the market.


Entrepreneurs combine capital, labour and natural resources to provide services and manufacture goods. Upon creating a suitable business plan, entrepreneurs hire labour, acquire required finances and resources, & provide leadership and guide the business through eligible management. Entrepreneurs have to overcome obstacles like bureaucracy, obtaining financing and hiring suitable talents.

How to become an entrepreneur?
Assessing the market
One of the important tasks for an entrepreneur has to be studying the market, identifying the problem and providing a suitable solution after that. Targeting your business around catering to a specific problem can help usher success faster than others. An aspiring entrepreneur should gain perspective of the world outside by consuming content across multiple channels. Skimming through content produced from newspapers, magazines, podcasts and news channels can help gain new perspectives.


Building skill sets
Improving different soft skills before entrepreneurship is required as an entrepreneur must face different situations each day. Building a business from scratch requires the possession of diverse skill sets. There are numerous workshops and seminars, both online and offline, that can help in polishing existing skill sets and building on some new ones.

If you wonder what makes an entrepreneur, then these are some skills that an entrepreneur should have

• From building a new venture to handling the different aspects of the business, an entrepreneur must be versatile to juggle all hats effortlessly.
• As we know, finances play a crucial role in building a new venture; being money savvy is required as funds can make or break the business at these initial stages.
• An entrepreneur has to be resilient and focused as the new venture is bound to face troubles, and remaining headstrong is required to go through the storm
• An entrepreneur should have excellent communication skills.

Ensuring financial stability
While starting a new business, it is usually recommended to have adequate provision of funds. Financial stability can prove beneficial as a continuous cash supply will aid in increasing personal runaway and more security by reducing the worry of making quick money.

Networking
The business world is competitive, and it gets difficult for an entrepreneur individually to handle the different facets of their establishment. Therefore, networking becomes critical for new entrepreneurs as with increased networking, building a successful business becomes easier. Networking with the right people will introduce you to the required contacts in the industry. Attending conferences, emailing and calling people you know in the industry can produce mentors and assistants to guide you through the industry.

Finances Involved
For entrepreneurs, finances play an extremely critical role. Proper funding can build or halt the growth of a new venture. With the financial risk associated with a new business venture, acquiring funding initially can be difficult.

Some methods to procure finances for entrepreneurship can be mentioned down below.

• Entrepreneurs can avail of small business loans to start their business. Entrepreneurs who are willing to give a part of the equity in their venture can receive the aid of capitalists and investors.
• Crowdfunding has also become a popular method of acquiring funds for a business venture. In crowdfunding, the entrepreneur creates a web page for their goods or services, and a monetary goal is set up. Those who donate will receive promising return givebacks.
• Another source of acquiring funds for your business venture will be bootstrapping. Bootstrapping refers to building a company solely from the money from the entrepreneur. There is risk associated with this method as there is very little room left for error, and if the venture fails, the entrepreneur loses their money. However, bootstrapping provides its advantages as well. There is no external interference, and the entrepreneur can run the business with their vision.

Entrepreneurs generate money by generating revenues greater than cost. While building a business, it is important to keep the cost of production low as it will then help generate a higher profit margin.

Like any other business establishment, you have to pay taxes as well. As an entrepreneur, the taxes you pay will depend on the business structure.

• Sole proprietorship: Business and expenses are filled on Schedule C on the personal tax return, and at the individual tax rate, you are taxed.
• Partnership: Like sole-proprietorship, the taxes and expenses get split between the partners.
• C-Corporation: It is a separate legal entity, and taxes are filled with a separate IRS from the entrepreneur. It gets taxed at the corporate tax rate.
• S-Corporation or Limited Liability Company: Similar to C-Corporation, the only difference is the taxes are charged at lower amounts.

What are the different types of entrepreneurship?
Small Business Entrepreneurship: SBEs are built from business loans or loans taken from friends and family, and they are not created to make huge profit margins.
Scalable Startup Entrepreneurship: These enterprises are built on a vision to reform the world. They hire the best resources and require venture capital to fuel their establishments.
Large Company Entrepreneurship: These companies have a definitive cycle. New enterprises are built by the companies to cater to the different sections of the market.
Social entrepreneurship: This entrepreneurship is built to cater to social needs and problems.

What are the ideal characteristics of an entrepreneur?
An ideal entrepreneur should have the ability to take risks, be innovative, possess visionary and leadership qualities should be flexible and open-minded. They should understand the market and cater to the needs accordingly.

What are the types of entrepreneurs?
Founder, Intrapreneur and CEO

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