Effective entrepreneurs are important examples of creativity in business. Being an entrepreneur is often associated with successful individuals who have accumulated loads of money; however, an entrepreneur must deal with never-ending stress and frustration. Many people forget that most new businesses fail; but when a business succeeds, entrepreneurship can be highly rewarding, both emotionally and monetarily.
According to Gareth R. Jones and Jennifer M. George's book, Contemporary Management, an entrepreneur is defined as "an individual who notices opportunities and decides how to mobilize the resources necessary to produce new and improved goods and services."
Bill Gates and Liz Claiborne are examples of successful entrepreneurs who have made fortunes from the success of their businesses. However, millions of people lose money and fail after starting new business ventures. According to Jones and George, "80 percent of small businesses fail in the first three to five years; nevertheless, by some estimates 38 percent of men and 50 percent of women in today's workforce want to start their own companies."
Entrepreneurs are likely to possess certain personality characteristics. They are high on the personality trait of openness to experience. They also believe that they are responsible for what happens to them and that their own actions determine important outcomes. They have high self-esteem and are also likely to have a high need for achievement.
Work Alone or With Others
With the use of modern technology, many people are starting solo ventures. However, people may frequently need to hire others to help run a business, especially during expansion. For example, Michael Dell began his computer business as a college student. In weeks, he hired several others to help him assemble computers from parts he bought from suppliers. Dell Computer is currently the largest PC maker in the world.
Not a Manager
Entrepreneurship and management are not the same. Management encompasses decisions involved in organizing, planning, leading and controlling resources. According to Jones and George, entrepreneurship is "noticing an opportunity to satisfy customer needs and deciding how to find and use resources to make a product that satisfies their need." However, entrepreneurship may or may not include the duties of a manager.
Providing products in an efficient and effective manner is vital for the entrepreneur to succeed. Many founding entrepreneurs lack the patience, skills and experience to engage in management duties. Some may find it hard to delegate authority because they may be afraid to risk giving a portion of the company to others. They may become overloaded. Others do not have the detail orientation necessary to create and plan operations procedures. In order to succeed, an entrepreneur must hire managers and delegate duties--if he does not have those skills himself--so that the venture can survive.