Entrepreneurs are innovators who modernize human civilization and bring life-changing products and services to the people. Moreover, global interest in entrepreneurship has grown rapidly over the past decade. According to Global Entrepreneurship Monitor 2018/2019 report, 62% of people believe entrepreneurship is a good career. If you are someone looking for a career in entrepreneurship, there can be no better time than right now.
But entrepreneurship is easier said than done.
Therefore, the question is, what sets an entrepreneur apart from regular people? And more importantly, what does it take for a person to start a successful career in entrepreneurship?
In this article, that is what we are going to discuss. Here are the ten functions that make a successful entrepreneur.
Let us dive in.
Quick, efficient, and informed decision-making is a vital function of an entrepreneur. Entrepreneurs deal with startups most of the time, and they involve a host of issues that require thinking on their feet and doing what’s best for the business in the long term.
According to Vidur Gupta, co-founder of Spectrum Talent Management,
“Time lost can prove expensive and hence decision making needs to be quick and effective,”
Entrepreneurs draw on their knowledge, experience, and business acumen to make decisions on various aspects of their enterprise, such as the policy of production, management philosophy, hiring, marketing, organizational structure, project feasibility, budget allocation, and more. Without sharp decision-making skills, an entrepreneur’s venture can’t achieve its desired objectives.
The ability to take the initiative sets apart an entrepreneur from the rest of the crowd. The world is constantly changing, and an entrepreneur steps in when they recognize a problem that needs to be solved. Recognizing this gap and taking the initiative at the right time helps an entrepreneur build a successful business.
Moreover, once they set up a startup, an entrepreneur has to take the initiative in various aspects of the business such as production, planning, management, etc. Doing so allows them to try new techniques, bring innovation, improve productivity, and stand out in a highly competitive market.
“Innovation is the unrelenting drive to break the status quo and develop anew where few have dared to go.”
–Steven Jeffes, Marketing & business expert
For an entrepreneur, not being creative and experimenting with new ideas is a surefire way to shut down their business before it can even land on its feet. An entrepreneur understands how important it is to challenge how things are being done and create new ways of doing business. Doing so allows the entrepreneur to become an industry leader and solve people’s problems more efficiently.
The ability to innovate also allows an entrepreneur to keep up with the rapidly changing technological trends. Doing that lets them make the best use of the latest innovations and provides them with a competitive advantage.
Entrepreneurship is laden with risks and uncertainties, but an entrepreneur must be willing to sail through dangerous waters to start an enterprise and make it productive. Only a visionary entrepreneur who can see their destination across this risky landscape can muster the courage and take the necessary risks.
An entrepreneur also understands that taking risks for risk-taking’s sake is stupid. They use their experience and knowledge to collect data, estimate the results their decisions will yield, and then take a calculated risk accordingly.
An entrepreneur has limited resources, especially during the startup phase of things. Only an entrepreneur who can manage resources well at this stage can take the business to new heights.
The ability to manage resources means that an entrepreneur knows how to recognize talent in their team and assign responsibilities to bring out the maximum potential each employee has. An entrepreneur also recognizes raw talent in their employees and mentors them to transform them into their most productive selves.
Besides managing human capital, an entrepreneur also knows how to manage financial capital. They understand what part of the business will bring the most benefit and then allocate capital to that area accordingly.
Management is an essential function that helps entrepreneurs use human capital for the enterprise’s benefit. Management is the skill of getting things done by working with and through others. It comprises planning, organizing, staffing, controlling, and directing.
Many promising organizations with big budgets and talented teams fail because of poor management, while many small-scale startups with limited capital and small workforce become successful because of good management.
A good entrepreneur knows how to create a product or a service, but more importantly, they understand how to bring that product or service to the people. That is what marketing is.
Marketing involves consumer research, surveys, brainstorming, product planning, packaging, pricing, advertising, promotion, and distribution. An entrepreneur knows all these functions and performs them efficiently to make the enterprise successful.
Identifying Business Opportunities
When a business is up and running, many new opportunities open up with time and demand. It is an entrepreneur’s function to identify these opportunities and use them to the organization’s advantage. These opportunities allow the entrepreneur to expand the business, such as
- Adding a new product or service,
- expanding their reach with the increasing demand,
- Identifying a gap where a competitor is absent.
“Business opportunities are like buses; there’s always another one coming.”
–Richard Branson (Entrepreneur and founder at The Virgin Group)
This calls for competitor analysis, knowledge of the latest market trends, communicating with existing customers, reaching out to potential customers, and a deep understanding of one’s industry. Having expertise in these areas allows an entrepreneur to perform the function of identifying new business opportunities efficiently.
An entrepreneur understands how their business is not just going to bring financial benefits to them but benefits to society as a whole. As a consequence, job creation is a core function of an entrepreneur.
“According to this research, business startups are responsible for about 20% of gross job creation in the United States.”
Entrepreneurs recognize the areas of business where they would require help from fellow human beings and then create opportunities for people to do those jobs. As a result, their business brings livelihood to many individuals and families. Moreover, good entrepreneurs go a step further than simply creating jobs. They look after their employees’ needs and preferences to help them bring out their best selves for the benefit of all.
Creating and Sharing Wealth
Starting an entrepreneurial venture gives way to a network of economic activities that generate wealth. Some entrepreneurs take initial capital from family, friends, or banks, while others are at the stage where investors become interested in their product. Everything from production to marketing generates economic activity when the business is running.
Moreover, an entrepreneur takes care of their employee’s salary, rent, interest, contractual responsibilities, wages, and other expenses. All these are paid through the income that business creates, and as a result, wealth is distributed among different sections of society.
Any entrepreneur who possesses the skill, knowledge, and experience in performing these ten functions efficiently can put any venture on the road to success. New entrepreneurs can learn and practice these functions to become their best version and realize their true entrepreneurial potential.
In short, entrepreneurship is a skill that can benefit society greatly, and with these functions under your belt, you too can become such a change maker.