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Entrepreneurs are lifeblood of the economy. Entrepreneurship helps to create
wealth and decrease unemployment of the country. Entrepreneurs contribute to
industrialization as well as to economic growth; they improve the standard of living, and tax
revenues from their enterprises contribute to a nation's treasury (Dana, 2001). It is not easy
to give a particular answer to the question: Why do people want to start and
run independent businesses? Different answers may come from different people.
Some people may start a business just because they love independence and hate to
tolerate bossing in the jobs. Some may not have the capability and qualification to do a
job; and as job is not available to them, they go for independent businesses to survive.
Some may have some special skills and love challenges to run an independent
business. Several motivational factors like need for
affiliation, need for power and need for achievement (McClelland, 1961) are also responsible for going for an
independent business. Whatever may be the reason, it can be said that in most of the times in
the history of human civilization, there were entrepreneurs who did
independent businesses and this trend of history still continues. For a few decades,
entrepreneurs are regarded as value adding people to the society. Holt (1992) says, "the
term entrepreneur may be properly applied to those who incubate new ideas, start
enterprises based on those ideas, and provide added value to society based on their
independent initiatives." These people are considered value adding persons because jobs are
created in the society, capital formation is promoted, country's export trade is
increased, concentration of economic power is reduced, balanced regional development
becomes possible, forward and backward linkages among the industries are created and
equitable redistribution of wealth, income and even political power is ensured (Khanka, 1999).
To become an achieving entrepreneur is not that easy. An entrepreneur should
have several special characteristics that help him/her to become successful. An
entrepreneur should be a risk taker, should be innovative, confident, goal-setter, hard worker
and accountable (Siropolis, 1997). In other words, entrepreneurs must be
persistent, confident, creative, optimistic and independent (Holt, 1992). In a workshop
on entrepreneurship conducted at the East-West Center, Honolulu, in 1977, a list
of characteristics and traits of the entrepreneurs was prepared (Meredith et al., 1982). This list says an entrepreneur should have characteristics like self-confidence,
task-result orientation, risk-taking, leadership quality, originality and future orientation. It is
not necessary that an entrepreneur should have all these characteristics at a very high
rate. But the more a person has these qualities, the greater chance is there to become
an entrepreneur (Meredith et al., 1982) because he/she will be able to perform
the `entrepreneurial functions' properly because of these traits. |