Entrepreneur

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I st her es ome t hi ngt haty ouc anwor kono v erando v eragai n,wi t houtge t t i ng b or e d? I st h er es ome t h i n gt h atk e ep sy o ua wa k ebe c au sey o uha v en otfi ni s hedi ty e t ? I st her es ome t hi ngt haty ouha v eb ui l tandwantt oc ont i nuet oi mpr o v eupon, a ga i na nda ga i n ? I st her es ome t hi ngt haty ouenj o yt hemos tandwantt oc ont i nuedoi ngf ort her es t ofy ourl i f e?

Yourdemons t r at i onofpas s i onandmo t i v at i onwi l l de t er mi ney ours uc c es si nan y ent r epr eneur i al v ent ur e.Fr om bui l di ngandi mpl ement i ngapr ot ot y pe,t opi t c hi ngyour i deat ov ent ur ec api t al i s t s ,s uc ces si saf unc t i onofpas si onanddet er mi nat i on.( For u r nY o u r Pa s s i o ni n t oaPr o fi t a b l eSi d eBu s i n e s s mor e,s ee :T . ) 2 .Ri skTak i ng Ent r epr eneur sar er i s kt ak er s   r eadyt odi v edeepi nt oaf ut ur eofunc er t ai nt y .Butnotal l r i s kt ak er sar esuc ces sf ul ent r epr eneur s .Whatdi ffer ent i at esasuc ces sf ul ent r epr eneur f r om t her es ti nt er msofr i s k ?Suc c es sf ul ent r epr eneur sar ewi l l t or i s kt i meandmone y onun kno wns ,butt he yal s ok eepr es our c es ,pl ansandbandwi dt hf ordeal i ngwi t h " un kno wnunk no wns "i nr es er v e.Whene v al uat i ngr i s k ,as uc c es s f ul ent r epr eneurwi l l as kher s el f ,i st hi sr i s kwor t ht hec os tofmycar eer ,t i meandmone y?And,whatwi l l Ido i ft hi svent ur edoes n' tpayoff? 3 .Sel f be l i ef ,Ha r dwor k&Di sc i pl i nedDe di ca t i on Ent r epr en eur sen j o ywh att he ydo .Th eybe l i e v ei nt he ms ms e l v e san da r ec on fi de ntan d dedi c at edt ot hei rpr oj ec t .Oc cas i onal l y ,t heyma ma ys hows t ubbor nnes si nt hei ri nt ens e f oc usonandf ai t hi nt hei ri dea.Butt hefl i ps i dei st hei rdemons t r at eddi s ci pl i neand dedi c at i on. 4.Adapt abi l i t y&Fl exi bi l i t y I t ’ sgoodt obepas s i onat eore v ens t ubbor nab outwhaty oudo.Butb ei ngi nfl e xi bl eabout c l i entormar k etneedswi l l l eadt of ai l ur e.Remember ,anent r epr eneur i al v ent ur ei snot s i mpl yaboutdoi ngwhaty oubel i e v ei sgo od,butal s omak i ngs uc c es s f ul bus i nes soutof

i t .Ma r k e tne ed sar ed yn ami c :c h an ge sar ear e cu r r i ngp he no me me no n.Su cc es s f ul ent r epr eneur swel c omeal l s ugges t i onsf oropt i mi z at i onorc us t omi z at i ont hatenhanc es t hei roff er i ngands at i s fiescl i entandmar k etneeds .Apr oduc ty oudev el opf ory our s el f al on ema yqual i f yasahobb y ,butapr oduc tf ort hemar k e ts houl ds at i s f yma mar k e tneeds . 5.Under st andYourOffer i ng–AndI t sMa Mar ket Ent r epr eneur sk no wt hei rpr oduc toff er i ngi n si deandout .The yal s ok no wt he ma r k e t p l a ceandi t sd yna mi mi c si n s i dean do ut .Re ma ma i n i nguna wa r eofc ha ng i n gmar k e t needs ,c ompe t i t ormo v esando t here x t er nal f ac t or scanbr i nge v engr eatpr oduc t st o f ai l ur e( f orex ampl e,Bl oc kbus t er ) . 6. MoneyMana geme ment I tt ak est i met ogett opr ofi t abi l i t yf oranyent r epr eneur i al v ent ur e.Ti l l t hen,c api t al i s l i mi t edandneedst obeut i l i z edwi s el y .Suc ces sf ul ent r epr eneur sr eal i z et hi sma mandat or y mo ne yma na ge me me ntr eq ui r eme ntan dp l anf o rpr e sen ta ndf ut ur efi na nc i a lo bl i g at i o ns ( wi t hs omeaddi t i onal buffer ) .Ev enaf t ers ec ur i ngf undi ngorgoi ngf ul l yoper at i onal ,a s uc c es s f u lb us i ne s smank ee psac omp l e t ehan dl eonc as hfl ows ,a si ti st h emo s t i mpor t anta spe ctofan ybus i ne ss . 7 .Pl a nni ng( ButnotOv er pl a nni ng) Ent r epr eneur s hi pi saboutbui l di ngabus i nes sf r om s cr at c hwhi l emanagi ngl i mi t ed r es our c es( i nc l udi ngt i me,moneyandper s onal r el at i ons hi ps ) .I ti sal ongt er m c ommi t me nt ,a ndat t e mp mp t i ngt op l anasmu mu c ha sp os s i b l eatt h eb eg i nn i n gi san ob l e i mpul s e.I nr eal i t y ,howev er ,pl anni ngf orev er y t hi ngandhav i ngar eadysol ut i onf oral l pos s i bl er i s k sma ypr ev enty ouf r om ev ent ak i ngt hefi r s ts t ep.Suc ces sf ul ent r epr eneur s dok eeps ome medr ypowderi nr es er v e,butmor ei mpor t ant l yt he ym ma ai nt ai nami nds etand t emper amentt oc apabl eofdeal i ngwi t hunf or es eenpos s i bi l i t i es . Doaf eas i bi l i t yanal y si s ;i dent i f yt i meandc api t al t hr es hol ds ;t ak et hedeepdi v ewi t hy our l i mi t edr es our c es .I fy ourt hr es hol dsar ec r os sed,l ookf oral t er nat i v esandbepr epar edt o t ak et henex te x i t . 8.Net wor ki ngAbi l i t i es Ho wd oy o ut a py o urn et wor kf ors ol u t i on s?Ma Ma nyp eo pl ese ekc omf or ti nc ommi s er at i o n: f r i ends ,c ol l eaguesandnei ghbor sar ehapp yt ocompl ai nwi t hy ouabout" t hegl obal s l owdown, ”poordemand,orunf ai rc ompet i t i on;butt hatwon' ti mpr ov et hebot t om l i ne. Wh atd os uc c es s f u len t r ep r en eu r sd o?Th eyr e ac hou tt ome me nt or swi t hmo mo r eex pe r i e nc e ande xt ens i v ene t wor k st os eekv al uabl eadv i c e.

Ha vi ngs uc hnet wor k i ngabi l i t i es ,i nc l udi ngmor ee xper i enc edment or s ,i sak ey c har ac t er i s t i c sofs uc ces sf ul ent r epr eneur s . 9 .Be i ngPr e pa r e dt oT a ket heEx i t Notev er yat t emptwi l l r es ul ti ns uc ces s.Thef ai l ur er at eofent r epr eneur i al v ent ur esi s v er yhi gh.Att i mes ,i ti sabs ol ut el yfi net ot ak et he“ pr ac t i c al ”ex i tr out eandt r ys omet hi ng new,i ns t eadofc ont i nui n gt omak es esunkcost   i n v es t me nt si nt h es amev ent ur e .Man y f amousent r epr eneur swer en' ts uc c es s f ul t hefi r s tt i mear ound.Butt he yhadt hes er eni t y andf or es i ghtt ok nowwhent oc utt hei rl os s es . 10.Ent r epr eneur sDoubtThems msel ves–ButNotTooMuch Yo uma yas ky o ur s el f ,am Ia ne nt r e pr e neu r ?Andt h ev e r yqu es t i o nma ypu ty o ui n doubtaboutt heans wer .Ev eni fy oudon' tha v et hefl ai rofSt ev eJ obsort hehai rofEl on Mus k ,i fy ouha vet hecour aget oas ky our s el fi nt i mi dat i ngques t i ons–CanIdot hi s ?Do Iwant   t odot hi s ?–y ouha v et hes t ufft obeanent r epr eneur . I ns t eadofwor r y i ngaboutfi t t i ngt hei mageoft heper f ec tent r epr eneur ,c hec ki nwi t hy our gut .I si tonboar d?

PERSONALI TY&TRAI TS Ther ear emanyt hi ngst hatgoi nt omak i ngf oras uc c es s f ul ent r epr eneur . Her ear et het opfi v et haty oumus tha v ei nor dert obes uc c es s f ul : 1.Haveavi   Mos Mo tpeopl et hi nkt hatt obeas uc ces sf ul si on. ent r epr eneur ,y ouneedt ohav eat woi nc ht hi c kbus i nes spl an. Nons ens e.Whaty o uneedi sav i s i on ,wh i c hy o uc ange tt hegen er al det ai l sofdownonones heetofpaper .I nc l udewher ey ouwoul dl i k e t ob e9 0da y sf r o mn owa nday e arf r o mn ow,a ndy o ua r ea l ls e t .On adai l ybas i s ,k eept r ac koft het hi ngsl i k ey ourc as hfl ow,pr os pec t s , e t c .Knowi ngwher ey ouwantt ogoi sf armor ei mpor t antt han pr oduc i ngabi gpaperr epor ty ouwi l ll i k el ynev erl ookatagai n. 2.Bel i f est yl eflexi bl e.   Bus i nes sesus ual l ydon’ ts t ar toutmak i nga pr ofi tr i ghtawa y .Youneedt obeawar eoft hi sandbeabl et o

r eal i s t i c al l yl i v ewi t hi taswel l .I tmeanst haty ouwi l l needt obe c omf or t abl et i ght eni ngy ourbel tunt i l y ourbus i nes ss t ar t smak i nga pr ofi t .Kno wt hi sgoi ngi n,s oy o uc ana cc ommod at eandno tqui c k l y r uni nt heot herdi r ec t i on. 3.Bel i e vey our sel f .   Whatot Wh her st hi nkabouty oudoes n’ tmat t ernear l y asmuc hwhaty out hi nkofy our s el f .I ti ses sent i al t haty oubel i ev e t haty ouhav ewhati tt ak est os uc ceed.Yours el fbel i efwi l l t ak ey oua l otf ur t hert hanany oneel s e’ sbel i efi ny ou! 4.T outy our sel f .   Wheni Wh tc omest oy ourbu s i nes s ,y o uh av et oputy o ur i nhi bi t i onsas i de.Youhav et obeabl et os el l y our s el fandy our comp mpanyandl etasma manypeopl eknow aboutyourbusi nessas pos si bl e.Ev eni fy ouar eani nt r ov er t ,y ouwi l lhav et obeabl et odo t hi s . 5.Beadoer .   Ther ear ebas i c al l yt wok i ndsofpeopl ei nt hi swor l d. Ther ear et hos ewhot al kabouts t ar t i ngabus i nes s ,andt her ear e t hos ewhoac t ual l ydoi t .I nor dert obeas uc ces sf ul ent r epr eneur , y oumus tf al l i nt ot hel at t erc at egor y .I fy ouwantt obes uc ces sf ul i n bus i nes s,y ouhav et o,ats omepoi nt ,s t opt hi nk i ngandt al k i ngabout whaty ouwantt odoandac t ual l yt ak et hel eapt ogeti tdone. Starting a business is a lot of work. Anyone who tells you it's not is either lying or has never actually started one themselves. The hours are long, sacrifices are great and you are assulted with new problems and challenges every day with with seemingly no end. If you don't have the constitution to weather these things, your business could implode on you faster than it started. Clearly, entrepreneurship is not for everyone. ut how do you know whether it!s for you" #ou #ou should start by asking yourself what it takes to be a leader because, for the most part, you'll be doing a lot of the work up front by yourself. If you can't lead yourself through startup, chances are you won't likely be able to lead your business and future employees through growth and on to success. If you en$oy only a few actual hours of real work per day, the rest of the time spent either looking busy or hanging out at the water cooler to catch up on T% talk, a modest but steady paycheck and benefits and are okay with routine day&in and day&out, stop reading here and go back to your cushy desk $ob. If you seek a challenge wrought with risk but with tremendous potential reward both financially and morally, read on friend, for you have something of what it takes to be a successful entrepreneur.

Successful entrepreneurs, from enry (ord to Steve )obs, share similar *ualities with one another. To see how you rank against these distinguished entrepreneurs, do you share at least half of these *ualities" 1. Strong leadership qualities

+eaders are born, not made. o you find yourself being the go&to person most of the time" o you find people asking your opinion or to help guide or make decisions for them" ave you been in management roles throughout your career" A leader is someone who values the goal over any unpleasantness the work it takes to get there may bring. ut a leader is more than $ust tenacious. A leader has strong communication skills and the ability to amass a team of people toward a common goal in a way that the entire team is motivated and works effectively to get there as a team. A leader earns the trust and respect of his team by demonstrating postive work *ualities and confidence, then fostering an environment that proliferates these values throught the team. A leader who nobody will follow is not a leader of anything at all. 2. Highly self-motivated

#ou probably know from knowing even a little bit about some of the most famous business entrepreneurs in history that leaders are typically pretty intense personalities. -obody makes progress by sitting back and waiting for it to find them. Successful people go out into the world and invoke change throught their actions. Typically, leaders en$oy challenges and will work tirelessly to solve problems that confront them. They adapt well to changing situations without unraveling and are typically epert of helping their teams change with them by motivating them toward new goals and opportunities. /ften you will learn that successful entrepreneurs are driven by a more complete vision or goal than simply the task at hand and able to think on a more universal level in that regard. They are also often very passionate about their ideas that drive toward these ultimate goals and are notoriously difficult to steer off the course. 3. Strong sense of basic ethics and integrity

usiness is sustainable because there is a common, understood code of ethics universally that underpins the very fabric upon which commerce is conducted. 0hile cheaters and thieves may win in the short term, they invariably lose out in the long run. #ou will find that successful, sustainable business people maintain the highest standards of integrity becauase, at the end of the day, if you cannot prove yourself a credible business person and nobody will do business with you, you are out of business. 0ith importance in working with clients or leading a team, effective leaders admit to any error  made and offer solutions to correct rather than lie about, blame others for, or dwell on the problem itself. 4. Willingness to fail

Successful entrepreneurs are risk takers who have all gotten over one very significant hurdle1 they are not afraid of failure. That's not to say that they rush in with reckless abandon. In fact, entrepreneurs entrepreneurs are often successful because they are calculating and able to make the best decisions in even the worst of cases. owever, they also accept that, even if they make the best decision possible, things don't always go according to plan and may fail anyhow. If you've heard the old adage, 2nothing ventured, nothing gained,2 that's eactly what it's saying1 do not be afraid to fail, put it out there and give it your best shot. Again, there's not one successful entrepreneur out there sitting on his couch asking, 2what if"2 . Serial innovators

3ntrepreneurs are almost defined by their drive to constantly develop new ideas and improve on eisting processes. In fact, that's how most of them got into business in the first place. Successful people welcome change and often depend on it to improve their effectiveness as leaders and ultimately

the success of their businesses as many business concepts rely on improving products, services and processes in order to win business. !. "no# #hat you don$t %no#

0hile successful entrepreneurs are typically strong personalities overall, the best have learned that there's always a lesson to be learned. They are rarely afraid to ask *uestions when it means the answers will provide them insight they can then leverage to effect. Successful entrepreneurs are confident, but not egotistical to the point that their bull&headedness is a weakness that continually prohibits them from seeing a bigger picture and ultimately making the best decisions for the business. &. 'ompetitive spirit

3ntrepreneurs en$oy a challenge and they like to win. They would have to since starting a business is pretty much one of the biggest challenges a person can take on in their lifetime. In business it's a constant war with competition to win business and grow market share. It's also a personal challenge to use all of this to focus inward and grow a business from nothing into a powerhouse that either makes a lot of money or is so effective that it is sold or ac*uired for a profit as well. (. )nderstand the value of a strong peer net#or%

In almost every case, entrepreneurs never get to success alone. The best understand it takes a network of contacts, business partners, financial partners, peers and resources to succeed. 3ffective people nurture these relationships and surround themselves with people who can help make them more effective. Any good leader is only as good as those who support him.

1. Sincerity (irst things first1 If you come off like a snake&oil salesman desperate to get his hands on capital, you!ll immediately turn investors away. These are wealthy, involved people, and they!ve already been approached by some of the best swindlers and smooth&talkers in the business. If they feel that they!re being misled, or that you are presenting yourself as someone that you!re not, your reputation could be instantly ruined. It!s far better to honestly admit some of your shortfalls and concerns than to try to cover them up, and it!s far better to act like your true self than to adopt a fake personality. To put it bluntly, investors have a great S detector, so stay sincere and honest throughout all your interactions.

2. 'harisma

Charisma is an intangible *uality with multiple definitions, but essentially, it!s a level of likability or charm that attracts other people. Initially, you might not consider 4likability5 as a key trait for running a business && after all, a business owner needs to make ob$ective, emotionless decisions for the benefit of the business before any human interest considerations. ut at the same time, entrepreneurs are leaders. 3ntrepreneurs are responsible for building and maintaining the team of employees who will drive the business forward, and responsible for attracting a first round of initial clients. To do this, they need some level of charisma, and investors look for this *uality in potential investments.

3. *assionate If you come to an investor meeting and simply run down the numbers in a monotone voice, your investors won!t be impressed. owever, if you come in visibly ecited about your idea, to the point where you almost can!t calm yourself down, they can!t help but contagiously 4catch5 some of your enthusiasm. 6assion makes people work harder and more satisfied in the process of pursuing their goals. 0ithout passion, entrepreneurs are far more likely to give up when trouble hits , and are far less willing to take essential risks to keep the business moving forward. -ever be afraid to demonstrate your enthusiasm. +elated, *itching nvestors With 'ustomer otivations Won$t Wor%

4. Humility

0hile charisma and passion can sometimes be associated with obnoiousness or even arrogance, a level of humility is important to investors as well. 3ntrepreneurs need to be grounded with humility for  several reasons. (irst, they need to be willing to listen to outside opinions. As an entrepreneur, you aren!t going to know everything, and you!re going to make mistakes. eing humble enough to listen to outside insights is imperative to improve the business. Second, they need to understand that not everything is going to be perfect.. umble entrepreneurs understand that mistakes and pitfalls perfect will occur, and their ideas won!t become successful overnight. This humility leads to greater long&term thinking, and more rational responses in a crisis.

. /mbitious (inally, in the eyes of investors, entrepreneurs need to be ambitious && hungry for success. Investors look for opportunities to make more money, so they need to see that the business owners they invest in are e*ually eager to make money.  Ambitious  Ambitious people are far more more likely to to create goals, goals, and and are far far more tenacious when it comes to facing problems. They!re also future& focused, allowing them to make wiser long&term decisions than if they were merely concerned with day&to&day operations. #ou have to want success to earn success. /bviously, it!s hard to change your personality on a dime, and you don!t want to pretend that you!re someone you!re not. ut you can, through careful considerations and 4putting your best foot forward,5

showcase the personality traits you have that make you a best fit for the business. on!t be afraid to acknowledge this directly in conversation, and tell stories about your past eperiences that prove your worth as an entrepreneur as potential investors engage you and try to get a better feel for you as a person.

0enacity Starting a business is an ultramarathon. #ou have to be able to live with uncertainty and push through a crucible of obstacles for years on end. 3ntrepreneurs who can avoid saying uncle have a better chance of finding their market and outlasting their inevitable mistakes. This trait is known by many names&&perseverance, persistence, determination, commitment, resilience&&but it's really $ust old& fashioned stick&to&it&iveness. 2Tenacity is -o. 7,2 says 8ike Colwell, who runs 6lains Angels, an Iowa angel investor forum, and the accelerator usiness Innovation 9one for the :reater es 8oines 6artnership. 2So much of entrepreneurship is dealing with repeated failure. It happens many times each week.2 0hen failure happens, you have to start all over again. )ett 8cCandless was a partner in a fast&growing freight logistics operation. ut the rapid epansion triggered mistakes, including an invoicing glitch that left the company without enough cash reserves. The business had to be sold for a fraction of its value. 8cCandless didn't agree to the terms and was fired. e lost the company house and car and wound up moving into his girlfriend's apartment. 2It was a very tough time,2 he recalls. 2I came very close to going bankrupt.2

e went on ;< $ob interviews and got offers for logistics positions paying =;>>,>>> and up. ut 8cCandless, who grew up in Section ? public housing, wondered, Should I take a comfortable, secure job, or could I build something better?  2I was afraid that failure could define

the rest of my life, and I wasn't going to let that happen,2 he says. So rather than accept one of those big offers, he started over, founding a new company, Carrierirect, in Chicago. amstrung by the noncompete contract with his previous firm, he created a wholly new space in the logistics field. Instead of matching shippers with truckers, he switched to consulting, providing marketing and sales for logistics companies. In two years Carrierirect grew to =@< million in revenue. 2I'm glad I didn't take one of those corporate $obs,2 he says now.

*assion It's commonly assumed that successful entrepreneurs are driven by money. ut most will tell you they are fueled by a passion for their product or service, by the opportunity to solve a problem and make life easier, easi er, better, cheaper. 28ost entrepreneurs I know believe they will change the world,2 says )ay (riedlander, a professor of sustainable business who works with entrepreneurs at the College of the Atlantic and at abson College. 2There's an ecitement and belief in what they're doing that gets them through the hard times.2 6assion based on your company's specific mission is an intrinsic drive that provides the internal reward that can sustain you between paydays. )ohn oulac is passionate about hemp, which has a host of industrial and food uses and can be grown without herbicide, making

it a keystone crop for sustainable agriculture. 0ith a mission of providing a new market for Canadian hemp farmers, oulac launched his company, -utiva, in 7BBB with a hemp food bar. ut he *uickly ran into interference from .S. Customs officials who associated hemp, part of the cannabis family, with mari$uana. 2Initially, they tried to harass us,2 oulac recalls. 2They would say our products couldn't leave the warehouseD then they could. It was very hard to stay in business.2 Two years later the )ustice epartment published a rule that put hemp products in the same illegal category as heroin. 2It was either go out of business, keep going or go to $ail,2 he says. 2It could be bankruptcy or humiliation.2 oulac had more than =7>>,>>> invested in the business by this point. A lot of people told him to *uit. Instead, he decided to go on the offensive and sued the rug 3nforcement Administration. 0ith support from the natural&products industry, particularly soap company r. ronner's, he won the suit two years later. oulac's belief in the power of his mission had prevailed. 2I believed that I was on the side of truth and that there was a government agency trying to prevent something good happening for the country,2 he eplains. 2I feel at a core level that this is my destiny to help create a better food system.2 Today -utiva sells a variety of organic products, from hemp protein shakes to virgin coconut oil. oulac's advice when things get tough1 2ig deeper.2

0olerance of ambiguity

This classic trait is the definition of risk&taking&&the ability to withstand the fear of uncertainty and potential failure. 2It all boils down to being able to successfully manage fear,2 notes 8ichael Sherrod, entrepreneur&in&residence at the -eeley School of usiness at Teas Christian niversity. e sees the ability to control fear as the most important trait of all. 2(ear of humiliation, fear of missing payroll, running out of cash, bankruptcy, the list goes on.2 )ill lashack Strahan knows the fear factor. The founder and C3/ of Tastefully Simple, a direct&sales company for gifts and easy&to&make meals, remembers the calls to her bank when she was three months overdue on her mortgage. 2That fear that I would lose my house almost controlled me,2 says lashack Strahan, who also had to overcome the deaths of her brother and then her husband shortly afterward. 2The night after the funeral of my husband, I thought maybe I should give up, get a $ob and be a mom.2 This is where the ultimate entrepreneurial test takes place, on the mental battlefield. #ou can go with the fear and *uit, or push through it. 2I said noD this idea is going to work,2 lashack Strahan says. 20e have the power to control our thoughts. 0hen we commit mentally, our action follows.2 She made a conscious decision to push through the fear. er company had sales in ;>7; of =B? million. 0hile many would feel powerless in the face of such adversity, 2the entrepreneur looks at the situation and knows he has some control over the outcome,2 says )onathan Alpert, a psychotherapist and author of Be Fearless: Change Your Life in 2 !a"s .

ision /ne of the defining traits of entrepreneurship is the ability to spot an opportunity and imagine something where others haven't. 3ntrepreneurs have a curiosity that identifies overlooked niches and puts them at the forefront of innovation and emerging fields. They imagine another world and have the ability to communicate that vision effectively to investors, customers and staff. 8any people would be satisfied with a couple of successful businesses, but 3ldad 8atityahu saw beyond his two thriving froEen& yogurt stores. e'd been reading about the fiber&optic space and decided he wanted in on the technology sector that surrounded him in Silicon %alley. So he sold his yogurt shops and his arley and got into a field he knew nothing about. e took a $ob with a fiber&optic company to learn the business and discovered his niche there. Customers told him they were frustrated that they couldn't have access to see who was on their networks&&important for security. 2I realiEed there was no solution on the market addressing this pain point,2 8atityahu says. 2I took the time to figure out why.2 The products 8atityahu created made activity on the network easily visible and also protected the system. e bootstrapped his company, -et /ptics, with =7>>,>>>&&the proceeds from his two yogurt stores and arley Falong with a small investment from family membersG&& turning down venture capitalists along the way. In /ctober ;>7@ he sold the company for =7B> million. 23ntrepreneurs often face naysayers, because we see the future before the future plays out,2 8atityahu says. 2#ou have to be several steps ahead of the market.2

Self-belief  Self&confidence is a key entrepreneurial trait. #ou have to be craEy& sure your product is something the world needs and that you can deliver it to overcome the naysayers, who will always deride what the ma$ority has yet to validate. esearchers define this trait as task&specific confidence. It's a belief that turns the risk proposition around&&you've conducted enough research and have enough confidence that you can get the $ob done that you ameliorate the risk. 2#ou have to have a lot of self&confidence. e willing to take a risk, but be conservative,2 says )ason Apfel, founder of (ragrance-et.com, an e&commerce site for beauty products. Apfel didn't know anything about the beauty world when he started the company, but he believed he could create a solid website to sell such products. 2I thought selling a commodity online at the most competitive price would work,2 he says. is company has outlasted well&funded competitors and sees =7H< million in annual sales.

leibility usiness survival, like that of the species, depends on adaptation. #our final product or service likely won't look anything like what you started with. (leibility that allows you to respond to changing tastes and market conditions is essential. 2#ou have to have a willingness to be honest with yourself and say, 'This isn't working.' #ou have to be able to pivot,2 says Colwell of 6lains Angels.

0hile still a student at abson College, 8att +auEon wanted to digitiEe the process of designing personaliEed $ewelry. After raising =<>>,>>> from ighland Capital 6artners, he launched a custom  $ewelry design design platform platform for retailers retailers in in ;>>?D however, however, a year year later there was no payoff in sight. 2In theory, it was a perfect match, but in practice we found that we simply couldn't change the $ewelers' focus on selling the epensive inventory they had sitting in their display cases,2 +auEon recalls. e reached out to his $eweler customers to solicit feedback. 2/ne of them actually said, '#ou have built something so amaEing, with so much potential, you should let people use it directly,'2 he says. +auEon decided to do eactly that, and with additional rounds of financing, relaunched the oston&based company as :emvara.com, selling the custom $ewelry eperience directly to consumers. e won't disclose sales, but he has raised =<7 million to date, including additional millions from ighland Capital, which backed his initial concept. e has even hired away eecutives from the $ewelry world's biggest retail force, Tiffany  Co.

+ule-brea%ing 3ntrepreneurs eist to defy conventional wisdom. A survey last year by oss +evine of the niversity of California, erkeley, and #ona ubinstein of the +ondon School of 3conomics found that among incorporated entrepreneurs, a combination of 2smarts2 and 2aggressive, illicit, risk&taking activities2 is a characteristic mi. This often shows up in youth as rebellious behavior, such as pot&smoking.

That description would certainly hold true for some of the most famous entrepreneurs of recent years. In fact, simply starting a business breaks the rules, as only about 7@ percent of Americans are engaged in entrepreneurship, according to a abson College report. oing what the ma$ority isn't doing is the nature of entrepreneurship, which is where the supply of inner resources comes in.

irst, 'orrupt and unsupportive business environment

+ack of supportive and market&augmenting governmental regulations serve as a barrier to entrepreneurship. ussia leads all other large nations in having an unsupportive business environment because they lack rule of law, have poorly defined contract and property laws, enforce regulations inconsistently, allow rampant corruption and bribing, allow regulatory authorities and inspectors to act in a predatory nature which therefore re*uires friendly ties with government officials and bureaucrats to smooth the way for businesses to operate. China has similar issues. See the accompanying list where pictured is ussian dissident&businessman, dissident&businessman, oris ereEhovsky, ereEhovsky, now eiled in +ondon, 3ngland. ereEhovsky was one of the ussian oligarchs who ac*uired massive wealth by taking control of state assets after the fall of communism. e also has links to the poisoned ussian spy Aleander +itvinenko. 0ied for second, mployee related difficulties

uilding an employee asset base for the enterprise is one of the more daunting and sometimes overlooked tasks. 3ntrepreneurs must find and select the best&*ualified employees who are motivated and willing to grow with the venture. Then they must ensure the employees do not leave. The professors say this task becomes a barrier when employees! epectations epectations increases, governmental regulations related to labor employment is hardened, and employee costs grow. 3mployee cost is more than pay. It includes healthcare, workers! compensation, compensation, social security ta, and health and safety regulations. )ust ask Charles 4Chip5 Starnes, who was recently held hostage by his own employees in a plant in China. It has been widely reported that Starnes was held hostage by current employees who did not receive severance pay that @> workers received because they were being laid off. Starnes was moving a plastic&in$ection& molding division to 8umbai, India, where production costs are lower. After being barricaded in the plant for almost a week, Starnes reached an agreement after nearly a week to pay two t wo months! wages, totaling almost =@>>,>>>, to the remaining BJ employees.

0ied for second, Severe mar%et entry regulations

:overnmental rules, taation, environmental regulations, lending re*uirements and licensing are all barriers to entrepreneurship. 8ost countries, the nited States included, proscribe or license market entry and the creation of new firms to protect incumbents in certain industries and professions. 3ntry procedures, or 4red tape,5 vary such that entrepreneurs need one day to register an enterprise in one country and up to ;> weeks in another. /ther /ther barriers to entrepreneurship are predatory ta behavior of authorities, lack of property rights and ta disadvantages. 0ied for second, Shortage of funds and resources

(inding the money to start up an enterprise is a leading barrier to entrepreneurship. 0ithout funds, any person cannot begin to organiEe, train, develop and sell product. ifth, 5ac% of ntrepreneurship ntrepreneurship 6pportunities

%enture %enture creation re*uires eisting marketplace opportunities with possibilities known to the entrepreneur and favorable odds for success for entrepreneurial 4spirit5 to succeed. Sith, 5ac% of ntrepreneurial ntrepreneurial 'apacity

/pportunities go untried until someone comes along with an eye for possibility and a can&do attitude. Some cultures may discourage entrepreneurial capacity resulting in a low rate of new firm entrance. It is i s like having an oil well field without knowledgeable people to mine the wells. 3ntrepreneurial capacity is the e istence of people with entrepreneurship *ualities, willingness and motivation to initiate new ventures. Seventh, 5ac% of /dequate ntrepreneurship 0raining

Training and education can be a robust incubator for new ventures. This includes training in technical skills, managerial skills, entrepreneurial skills and entrepreneurship. 0ied for eighth, 5ac% of /ppropriate 0echnical 0echnical and *ractical S%ills

6eople tend to use the skills they have ac*uired to pursue entrepreneurial initiative. +acking the appropriate skills and knowledge inhibits economic development. 0ied for eighth, 5ac% of ar%et perience

The essence of leadership is first learning and doing before leading. Therefore, the capability to start a business is propelled by previous education and work eperience. ushing into a new market because it looks attracti ve and rewarding without having some eperience and background in it can be fatal. 3perience in a related business before start&up is positively correlated to the probability of success. 0enth, ear of ailure

3ntrepreneurs have to decide whether to take action so they don!t miss the boat, while knowing that hasty action may cause them to sink the boat. leventh, /version /version to +is%

 A psychological psychological barrier closely related related to the fear of failure is aversion to risk. 3ntrepreneurs must take initiative, create structure with a social&economic mechanism and accept risk of failure. 3ntrepreneurs have to be risk takers while those who are risk averse will seek the security if an eisting establishment.

1.Fi nanc e:Nat i onal e xper t sc ons i der edpr obl emswi t hfi nanc et obeoneoft hepr i nc i pal f ac t or s hi nder i ngent r epr eneur s hi pi nt hei rc ount r yandt her el at i ons hi pbet weenfi nanc eandl ev el sof ent r epr eneur s hi pac t i v i t ywasconfi r medi nt hedat a.Theav ai l abi l i t yofear l y s t agefi nanc e,ei t her f r om i nf or mal s our c essuc hasi ndi v i dual sorf or mal s our c essuc hasv ent ur ec api t al f unds ,i s gr eat eramongc ount r i est hathav ehi gherl ev el sofent r epr eneur i al ac t i v i t y . 2.Educ at i on:Educ at i onpl ay sav i t al r ol ei nent r epr eneur s hi p.Thes t udyi dent i fi edt hati ft hel ev el ofpar t i c i pat i oni npos t s ec ondar ywer et heonl yf ac t orus edt opr edi c tent r epr eneur i al ac t i v i t y ,i t woul dac countf or40per c entoft hedi ff er enc ebe t weent hest udyc ount r i es .Pr o vi di ngi ndi v i dual s wi t hqual i t yent r epr eneur s hi peduc at i onwasoneoft het oppr i or i t i esi dent i fi edbynat i onal e x p e r t s . 3.Fundament al s :Thes t udyal s oar guedt hatpol i c i esgear edt o war dboos t i ngent r epr eneur i al ac t i v i t ys houl dnotbec onfi nedt ot heent r epr eneur s hi psec t orpers ebutal s oe xt endedt ot he mac r oe conomi cf undament al soft hec oun t r yl i k emar k et s ,c ompe t i t i onandr egul at i on.I n par t i c ul ar ,t hemos tent r epr eneur i al l yac t i v ec ount r i eshadagr eat ereas eofdoi ngbus i nes swi t h t hego v er nment ,mor efle xi bl el ab ormar k et sandl o werl e v el sofnon wagel aborc os t s . 4.Soc i al Legi t i mac y :Theper c ei v eds oc i al l egi t i mac yofent r epr eneur s hi pwasal s oar guedt o ma k eadi ff er e nc e .I twa sf o un dt h atme as u r e ss uc has ( a)t heex t entt owhi c hf earoff ai l ur eac t sasadet er r entt os t ar t i nganewfi r m and ( b)r es pec tf ort hos es t ar t i ngnewbus i nes seswer eas s oc i at edwi t hdi ffer enc esi nl ev el sof ent r epr eneur i ala ct i v i t y .

Car i ngt oomuchf ort hepr oductt hant hecust ome mer s As t ar t upi sabab yofanent r epr eneurandi ti shi sdut yt oens ur et hatt hepr oduc thasgr eat qual i t yt os at i s f yt heneedsoft hec ons umer s .I nI ndi a,ent r epr eneur sar ev er yat t ac hedt ot hei r b us i n es swh i c hma k est h em f o c ust o omu c ho nt h es t a r t u pa ndt h ep r o du c ta v oi d i n gt h emo s t i mpor t antf ac t or-' c ons umer s ' .I ndi anent r epr eneur smu mus thav eabal anc edchar tt oens ur et hat t h ei rf o cu si sont h es t a r t u pa ndt h ec u st omer sb ec au sec us t o mer me sa ndco ns ume r sde t er mi n et h e

f ut ur eofanent r epr eneurandhi sst ar t up. I ndi anent r epr eneur sf earf ai l ur e I tmi ghtbeabol ds t at ementt hatI ndi anent r epr eneur sf earf ai l ur ebutt hef ac tnev erc hanges . Ent r epr eneur sar oundt hewor l dhav eaf earongui di ngt hei rs t ar t upt ot her i ghtdi r ec t i onbuti n I ndi at hes cenar i oc hangesqui t eabi tmak i ngi tmor edi ffic ul tf ort hes emenast he yar eno tl e tt o t ak eupr i s kbear i ngr es pons i bi l i t i es .I ndi anf ami l i esdonotenc our aget hei ry out ht or unt hei rown bus i nes sasi tmi ghtbr i ngi nl o ssands uc ht hought sar ei nduc edi nt ot hes emenatav er year l y s t ag e. T oomuc hi nt e r f e r e nc ei ne v er y t hi ng Anent r epr eneuri sanal l r ounderbutt hatdoesno tmeanheget si nt oev er yac t i v i t yoft he bu si n es swi t ht o omu chc on ce r n .I twou l di nf a ctb eh i so wnc omp an ybu ta ne nt r e pr e ne urmu s t bes mar ma tenought oc hoos ehi sr es pons i bi l i t i esandpr i or i t i eswi t hi nanor gani z at i on. Deci si onsmu mustbebol d Whi l emos tent r epr eneur sha v et heabi l i t yt omak eandt ak equi c kdec i s i onsI ndi anent r epr eneur s fi ndi tal i t t l edi ffic ul tt omas t ert hi ss ki l l duet ov ar i ousex t er nal r eas ons .Anent r epr eneurmus t ha v et hec our aget ot ak ebol ddec i s i onsandmar c hf or war dbuti nourc oun t r yt hi n gst ur noutt o beal i t t l edi ffer entasent r epr eneur sar eemo t i onal l yat t ac hedandar eans wer abl et ov ar i ous emo t i onal ques t i onst hatpu tt hem i nt hes t at eofdi l emma. Few I ndi anent r epr eneur sdonothavet hepassi on Pas si oni sak eyf ac t ort hatdet er mi nesanent r epr eneur i al j our ne yandwi t houtt hi szeal an ent r epr en eurc anno tr eac hhi sgoal .

What are factors inuencing Entrepreneurial development in India? Ans: 1. 1.

Economic Factors

Capital, labour, raw materials and market are the main economic factors. (a)

apital:

Capital is one of the most important prerequisites to establish an enterprise. Availability of capital helps an entrepreneur to bring together the land of one, machine of another and raw material of yet another to combine them t hem to produce goods. Therefore, capital is regarded as lubricant to the production process. Basically, capital is the life blood of any activity. If capital is available, people who have innovative ideas would like to put them into reality. ithout having any obstacles, if capital is available, it will act as a lifeline to entrepreneurs. !o, if capital is available, entrepreneurial entrepreneurial activities will increase. (!)

"a!our:

The quality and quantity of labour is another factor which in"uences the emergence of entrepreneurship.. Availability of labour makes entrepreneurship attractive. #ore than entrepreneurship abundantly available available labour, the presence of skilled labour force is very important because such a workforce is generally less mobile than other resources. If entrepreneurial activities are initiated near areas where labour is available, then it is easy to carry out the business more comfortably and pro$tably pro$tably at low cost. This is why one $nds te%tile units and machine tools manufacturing industries concentrated in certain cities like Coimbatore, Tiruppur, &udhiana, 'a(kot, Baroda, etc. (ust because of availability of skilled labour force required for such units. (c)

#a$ %aterials:

'aw materials are required for establishing any industrial activity and therefore has an in"uence in the emergence of entrepreneurship. In the absence of raw materials, neither any enterprise can be established nor an entrepreneur can emerge. In some cases technological innovations can compensate for raw material inadequacies. The supply of raw materials is not in"uenced by themselves but becomes in"uential depending upon other opportunity conditions. The more favourable these conditions are, the more likely is the raw material to have its in"uence on entrepreneurial emergence. (d)

%ar&et :

It is not only the availability of capital, labour and raw materials but a readily available market that attracts entrepreneurial activities. )ltimately, it is the market t hat fetches revenue for any business. If su*cient market is not there, people will naturally hesitate to do business in a sector where there is no market. In addition to market opportunities, it is equally important to ensure future market opportunities for the emergence of entrepreneurial activities. '.

ocial Factors :

+evelopment of entrepreneurship in a society may take place not (ust because of better economic factors but because of the presence of positive social factors. The following social factors in"uence the development of entrepreneurship in a society. (a)

ocial norms and values:

A society sets certain norms and values for the behaviour of people who are part of that society. If people violate or overstep these norms and values, certain restrictions are likely to be imposed on them. As a result, many people are forced to accept certain types of (obs and tasks that re"ect the social environment. If the society has an open and "e%ible approach towards various types of (obs and works, then people will feel free to do whatever they like and even go in for innovation and creativity. hen there is more openness and "e%ibility, entrepreneurship will not only emerge but also thrive. (!)

#ole models:

!ocieties that celebrate entrepreneurship and felicitate successful entrepreneurs in a way encourage many future generations to take up entrepreneurial activities. This is because successful businessmen prove to be role models for the society at large. or instance, states like -u(arat, #aharashtra and to some e%tent Tamil adu and /aryana have e%perienced better

industrial development as a result of higher concentration of entrepreneurs compared to lesser industrialised states such as 0rissa, Chattisgarh, #adhya 1radesh and other ortheastern states. (c)

ocial pressure:

At times, entrepreneurship can emerge in a society due to social restriction too. If a society is orthodo%, close and imposes a lot of restrictions, then it is likely to back$re. 1eople who are at the receiving end are likely to react strongly and go in for change. In other words, because of negative pressure, more number of people would like to become entrepreneurs as a means of improving their status. It has been noticed that where people were marginalised, they became entrepreneurs (ust to prove their abilities and establish an identity in the society.

(d)

#espect and tatus:

If societies accord recognition and respect to people who dare to do something di2erent and creative, it proves to be an encouragement for others to do something enterprising. Therein lies the emergence of entrepreneurship. In the traditional societies, people were looked down upon rather than encouraged for deviating from the set norms or regular occupation. This means there was no respect for change. Thus, societies where there is respect and recognition for people to do something di2erent are more likely to see the development of entrepreneurial activities. (e)

ecurit:

The view regarding role of social security in encouraging entrepreneurship development is rather divided. 0ne school of thought is of the view that people are more prone to take entrepreneurial risks in secure social environments. 0n the other hand, there are others who argue that entrepreneurship will more likely emerge if there are turbulent conditions. In both cases, there is scope for entrepreneurship development. *.

+schological Factors

(a)

,eed Achievement:

According to +avid #cClelland3s theory of need achievement, a constellation of personality characteristics which are indicative of high need achievement is the ma(or determinant of entrepreneurship development. development. Therefore, if the average level of need achievement in a society is relatively high, one would e%pect a relatively high amount of entrepreneurship development in that society. #cClelland gives the psychological concept of achievement motivation to account for the di2erences in response to similar conditions. 'eferring to the encouraging impact of achievement motivation training programmes organised by the !mall Industries 4%tension Training Institute 5!I4T6, /yderabad #cClelland argues that the need achievement can be developed through the intensive training programmes. (!)

Withdra$al of tatus #espect:

4.4. /agen attributed the withdrawal of status respect of a group to the genesis of entrepreneurship.. -iving a brief sketch of history of 7apan, he concludes that she developed entrepreneurship sooner than other non8estern society e%cept 'ussia due to two historical di2erences. irst,  7apan had been been free from 9colonial 9colonial disruption3 and secondly, the repeated repeated long continued continued withdrawal of e%pected status from important groups 5!amurai6 in her society drove them to retreatism which caused them to emerge alienated from traditional values with increased creativity. This very fact led them to the technological progress entrepreneurial roles. /agen believes that the initial condition leading to eventual entrepreneurial behaviour is the loss 0f status by a group. /e postulates four types of events can produce status withdrawal 5a6

The group may be displaced by force:

5b6

It may have its value symbols integrated:

5c6

It may drift into a situation of status inconsistency: and

5d6

It may not be accepted the e%pected e%pected status status on migration in a new society. society.

/e further postulates that withdrawal of status respect would give rise to four possible reactions and create four di2erent personality types (a) #etreatist: /e #etreatist: /e who continues to work in a society but remains di2erent to his work and position. (!) #itualist: /e #itualist: /e who adopts a kind of defensive behaviour and acts in the way accepted and approved in his society but no hopes of improving his position. (c) #eformist: /e #eformist: /e is a person who forements a rebellion and attempts to establish a new society: and3 (d)

Innovator: /e is a creative individual and is likely to be an entrepreneur. Innovator: /e

/agen maintains that once status withdrawal has occured, the sequence of change in personality formation is set in motion. /e refers that status withdrawal takes a long period of time ; as much as $ve or more generations to result in the emergence of entrepreneurship. entrepreneurship. -.

overnment Actions

The government by its actions or failure to act also does in"uence both the economic and non8 economic factors for entrepreneurship. Any interested -overnment in economic development can help, through its clearly e%pressed industrial policy, promote entrepreneurship in one way or other. By creating basic facilities, services and utilities and by providing incentives and concessions, the -overnment can provide the prospective entrepreneurs a facilitative socio8 economic setting. !uch conducive setting minimises the risks which the entrepreneurs are to face. Thus, the supportive actions of the -overnment appear as the most conducive to the entrepreneurial growth. growth. This is true of the Indian entrepreneurs also.