Who is an entrepreneur?

In this article, you are going to be learning about the meaning of entrepreneurs, how it is different from the sole proprietorship, the types of entrepreneurs and many more. 

Enjoy your reading.

Who is an entrepreneur?

An entrepreneur by definition is a person who starts a business, either on his own or in conjunction with other people, and is responsible for risk bearing and reward taking from such an endeavour. Undertaking an entrepreneurial endeavour therefore is to take on the role of a leader towards a desired goal. 

Do you know that as an entrepreneur, you get to make your own rules? That’s right. As an entrepreneur, you do not have to abide by any set of rules except the ones you set or lay down by yourself. That is one of the beauties of being an entrepreneur in this present age.

As a matter of fact, entrepreneurs set the pace and drive the economy of the world. It might also interest you to know that governments all over the world take economic decisions based on established entrepreneurs in their countries. They want the economic policies to favour their decisions so that the taxes imposed will keep coming. That may seem prejudiced but it is the way of the world and how things work. 

Think about the old money in the UK and US. All those people started out as entrepreneurs; delving into innovative things people could only imagine and making generational wealth out of it.

Types of entrepreneurs

There are about 4 types of entrepreneurs and we will give a brief description of each in this article. It is worth noting here that these types of entrepreneurs are not strict in the sense that one person has to be one type. Much like the different types of human characters, one entrepreneur can be a combination of two or more of the types.

1. Innovator

Innovators care more about using their ideas to change people’s way of life. The businesses these types of entrepreneurs establish is such that it is geared towards making life easier for people around them. As such, they are more goal-oriented and less business savvy. 

Their management skill is minimal. They don’t do well as administrators; hence, they hire other people to run that aspect of the business while they focus on innovations.

1. Builder

The builder entrepreneur does not mind starting small but he’s going to set the business up in such a way that it can quickly scale up in no time. These are the type of people who start from their garage or basement and then build a large corporation after a short while. 

Builders would not mind doing anything and going all out to get funding for their business and get the best heads to work with them too.

1. Opportunist

These are impulsive by nature. They are adept at sniffing out businesses that will do well, investing and building them, then selling out when the business is at its peak. After that, they go in search of newer endeavours. Because of their impulsive nature, they are willing to take any type of risk, so far they know that it could pay off big time if they took such a risk.

1. Specialist

These types of entrepreneurs are more methodical in nature. They don’t take risks unnecessarily like the opportunist, go all out to seek funding like the builder, or bring up new concepts like the innovators. They rather learn a skill set through education and training and then find a niche where they can practice their trade. Most of their clients are from referrals and they, therefore, do not experience any gigantic leap in their income for a long while.

Another important trait of specialist entrepreneurs is that they are researchers. What do we mean by that? They do adequate research before taking the step to set up as entrepreneurs. In other words, they set out knowing the pros and cons of the endeavour before taking the right steps. 

Impulsiveness is not in their nature. Doing market research for the product or service they want to render comes easy to them.

Skill and character requirements for entrepreneurs

1. Goal oriented – entrepreneurs are by nature goal oriented. They are focused and driven. They are not easily derailed from their goals.
   
    
2. Flexibility – They would not mind making tweaks and changes here and there as necessary.
   
    
3. Versatile – an entrepreneur adapts easily. They don’t fight technological advancements. Rather, they use it as a tool to further their goal.
   
    
4. Profit-oriented – nobody goes into a business to lose. Entrepreneurs have their target set on making profits and they go all out to get it. The major goal is wealth creation that transcends generations.
   
    
5. Daring – risk-takers. Entrepreneurs are not afraid to take risks that could turn profits. While not all risks are worth taking, they are not afraid to take them anyway; especially if the foreseen outcome will be profitable.
   
    
6. Savvy in decision making – entrepreneurs are shrewd in making decisions. They are not emotional about it. They know the right choice for their business and they take it without fear.
   
    
7. Resilient – being resilient, no matter what keeps entrepreneurs going. This is because every venture requires some sort of doggedness and perseverance to be able to see it through. Without this character, most entrepreneurs will opt out before reaching their goals.
   
    
8. Resourceful – entrepreneurs use whatever resources are at their disposal to achieve their goals. They are not deterred by a lack of resources to achieve their aims.

Financing opportunities for entrepreneurs

Starting off on a new idea, especially in business, requires some capital. Entrepreneurs have to have some capital backing to start off. Some other times, they start and find means to woo investors. The following are a few ways by which entrepreneurs fund their ideas.

1. Personal or family funding – this comes from personal savings or loans from family members. Monies from trust funds and inheritances also fall into this category.
    
2. Loans from banks, cooperative societies, or any other financial institution – depending on the feasibility of the business idea, you can get loans from banks. You must be armed with a good business proposal for this though.
    
3. Partnerships – going into partnership with one or more people who then become shareholders is a good way to raise capital for a business venture.
    
4. Crowdfunding – this can come in form of donation or taking a business public by offering an IPO (initial public offering) to get external shareholders.
    
5. Hedge funds 
    
6. Angel investors
    
7. Venture capital investors.

All of these help entrepreneurs get their businesses off the ground within a short period.