1. The Role of The
Entrepreneur

2. Characteristics
Enterprise Tariq Mansuri - Role of Entrepreneur 2

3. Characteristics of entrepreneurs
Q1: Why does an entrepreneur need to possess initiative?
A: There is no-one to tell the entrepreneur what to do
Comment: Successful entrepreneurs need to balance a
willingness to use initiative with a willingness to take
advice. Even the most talented entrepreneur will soon
reach a position where expert guidance on some matter
(e.g. legal advice) will make the business more successful
Enterprise Tariq Mansuri - Role of Entrepreneur 3

4. Characteristics of entrepreneurs
Q2: Why does an entrepreneur need to possess creativity?
A: Entrepreneurs will often be faced with new situations,
which will demand an imaginative response
Comment: Creativity needs to be understood in its widest
sense. For example, someone with business flair setting up
a clothes shop could employ someone with a
flair for fashion to choose the clothes
(and vice versa)
Enterprise Tariq Mansuri - Role of Entrepreneur 4

5. Characteristics of entrepreneurs
Q3: Why does an entrepreneur need to be hard working?
A: Entrepreneurs will be competing against established
businesses. Entrepreneurs need to make up for their need
to win new customers by working harder
Comment: Hard work and creativity go together
in business. A winning idea has to be followed
up by implementation – and
implementing new ideas is
always hard work
Enterprise Tariq Mansuri - Role of Entrepreneur 5

6. Characteristics of entrepreneurs
Q4: Why does an entrepreneur need to possess a
willingness to take calculated risks?
A: Setting up a business is statistically risky. Many fail in
their early years
Comment: One common trigger for setting up a business
is the experience of repeated redundancy. Traditional
employment carries its risks too
Enterprise Tariq Mansuri - Role of Entrepreneur 6

7. Characteristics of entrepreneurs
Q6: Why does an entrepreneur need to have resilience?
A: Every new enterprise will meet setbacks. An
entrepreneur has to be able to keep going in the face of
such setbacks
Comment: Successful entrepreneurs often have
a streak of hardship somewhere in
their backgrounds. Setbacks in life may
well lead to a renewed
determination to do well. The
crucial thing is how we respond to
Enterprise Tariq Mansuri - Role of Entrepreneur 7
setbacks

8. Characteristics of entrepreneurs
Q5: Why does an entrepreneur need to have self-
confidence?
A: Entrepreneurs take the leading role within their
business – inevitably this demands more self-belief than
working for someone else
Comment: While some are naturally more
self-confident than others, like any
other characteristic self-
confidence can grow
over time. ‘Nothing succeeds like success’
Enterprise Tariq Mansuri - Role of Entrepreneur 8

9.  Entrepreneurs are optimistic and
future oriented
 They believe that success is
possible and are willing to risk
their resources in the pursuit of
profit.
 They're fast moving, willing to try
moving
many different strategies to
achieve their goals of profits.
 And they're flexible, willing to
flexible
change quickly when they get
Enterprise Tariq Mansuri - Role information.
new of Entrepreneur 9

10. Motivation
Enterprise Tariq Mansuri - Role of Entrepreneur 10

11. What motivates entrepreneurs?
Q7: What is the difference between working for a wage
and working for profit?
A: A wage is traditionally a more stable form of income,
paid in return for labour.
Comment: Setting up a business and working for a profit
is more risky, and normally involves an up-front
investment of financial capital (cash) – which may be
lost. On the other hand, the potential rewards are
greater too
Enterprise Tariq Mansuri - Role of Entrepreneur 11

12. What motivates entrepreneurs?
Q8: Looking purely at the financial angle, why might
someone choose to set up a business for profit rather
than working for a wage?
A: They may have a belief (whether true or false) that they
will make more money that way
Comment: Alternatively, they may have accumulated
sufficient capital to be able to take the risk, or traditional
employment opportunities may be limited, or they
may be able to rely on a spouse to provide an
income from employment
Enterprise Tariq Mansuri - Role of Entrepreneur 12

13. What motivates entrepreneurs?
Q10: Why might anyone wish to work independently?
A: Some people are more productive working
independently and/or prefer the autonomy of not
reporting to a boss
Comment: While an independent turn of mind is essential
to any entrepreneur, no business person will ultimately
be successful if they cannot also learn to
co-operate with others
Enterprise Tariq Mansuri - Role of Entrepreneur 13

14. What motivates entrepreneurs?
Q9: Why might someone wish to work from home?
A: This is a cheap and flexible arrangement. It may enable
the person to fulfil other responsibilities, such as looking
after children, the sick or the elderly – or may be
combined with housework
Comment: Many large businesses started life in
someone’s kitchen, bedroom or garage – and
of course many will never outgrow their
beginnings
Enterprise Tariq Mansuri - Role of Entrepreneur 14

15. What motivates entrepreneurs?
Q11. What ethical reasons might there be for setting up a
business?
A: Ethical beliefs are one source of the powerful motivation
that any entrepreneur needs
Comment: This may either be general (e.g. to provide a
better and/or cheaper service than rivals), or specific
(e.g. to set up a business which is more
environmentally friendly than existing
options)
Enterprise Tariq Mansuri - Role of Entrepreneur 15

16. Role of the
entrepreneur
in business
development
Enterprise Tariq Mansuri - Role of Entrepreneur 16

17. ▒ Business activity begins with the entrepreneur having a business
idea. An entrepreneur is considered to be innovative; s/he
forms a business where one did not exist before
▒ Entrepreneurs choose a level of personal, professional or financial
risk to pursue opportunity.
▒ Entrepreneurs tend to identify a market opportunity and exploit it
by organizing their resources effectively to accomplish an
outcome that changes existing interactions within a given sector.
▒ Business entrepreneurs are viewed as
fundamentally important in the
capitalistic society.
Enterprise Tariq Mansuri - Role of Entrepreneur 17

18. Role of the
entrepreneur
in economic
development
Enterprise Tariq Mansuri - Role of Entrepreneur 18

19. ▒ Entrepreneurs occupy a central position in a market economy - it's
the entrepreneurs who serve as the spark plug in the economy's
engine, activating and stimulating all economic activity.
▒ The economic success of nations worldwide is the result of
encouraging and rewarding the entrepreneurial instinct.
▒ Entrepreneurs seek disequilibrium--a gap between the wants and
needs of customers and the products and services that are currently
available.
▒ The entrepreneur then brings together the factors of production
necessary to produce, offer and sell desired products and services.
▒ They invest and risk their money--and other people's money--to
produce a product or service that can be sold at a profit
Enterprise Tariq Mansuri - Role of Entrepreneur 19

20. Reading Material
▒ An increase in the number of entrepreneurs leads to an increase in
economic growth. This effect is a result of the concrete expression
of their skills, and more precisely, their propensity to innovate. This
can be termed as “the carrying out of new combinations”, by
distinguishing five cases
(1) The introduction of a new good – that is one with which consumers
are not yet familiar – or of a new quality of a good.
(2) The introduction of a new method of production, that is one not yet
tested by experience in the branch of manufacture concerned,
which need by no means be founded upon a discovery
scientifically new, and can also exist in a new way of handling a
commodity commercially.
Enterprise Tariq Mansuri - Role of Entrepreneur 20

21. Reading Material
(3) The opening of a new market, that is a market into which the
particular branch of manufacture of the country in question has not
previously entered, whether or not this market has existed before.
(4) The conquest of a new source of supply of raw materials or half
manufactured goods, again irrespective of whether this source already
exists or whether it has first to be created.
(5) The carrying out of the new organisation of any industry, like the
creation of a monopoly position or the breaking up of a monopoly
position”
Enterprise Tariq Mansuri - Role of Entrepreneur 21

22. Reading Material
▒ Through his innovative activity, entrepreneur seeks to create new
profit opportunities.
▒ These opportunities can result from productivity increases, in which
case, their relationship to economic growth appears quite clearly.
▒ Moreover, the disequilibrium created by the entrepreneur can be
encouraging for additional innovations and profit opportunities.
▒ Therefore, more entrepreneurs means more growth, which in turn
leads to more entrepreneurs… The phenomena seem to be self-
feeding.
Enterprise Tariq Mansuri - Role of Entrepreneur 22

23. Reading Material
۩ Entrepreneur sets up business for transformation of resources into
products and services – and meet the needs of the people
۩ Business activity involves human activities. People manage activity
۩ Business activity involve production – manufacturing, retailing, mining
and services – create employment opportunities
۩ Business creates wealth. Wealth results in a country’s economic
growth
۩ The businessperson or entrepreneur is at the heart of the business
world.
۩ Entrepreneurship, particularly among women in developing countries
like Pakistan, seems to offer an improvement in the standard of living
as well as a path out of poverty. Entrepreneurship is now growing at
nearly three times the rate among women as it is among men
Enterprise Tariq Mansuri - Role of Entrepreneur 23