Business owes much to the entrepreneurs. Without them business could not be formed. Society gets benefit from their entrepreneurial activities. First of all, entrepreneurs are very innovative. They create new products, styles, techniques and processes. This leads to an increase in the standard of living of individuals in society. They also create new job opportunities for the public. The creation of new jobs has had the effect of reducing the level of unemployment.
Entrepreneurs are business people who take risks and form businesses from scratch to provide goods and services that the community needs, while at the same time earning profit as their reward. Entrepreneurs start their business from zero. Their stimulus is profit. They likely think that if they perform well and serve to satisfy their customers, the customers will pay the price for the goods that also Includes profit, that rewards their efforts.
Entrepreneurs first notice an opportunity in an industry. They try to calculate the cost of inputs, other expenditures and things to be done to perform those undertakings. They also make calculation about the revenues. Then based on the calculations and expectations they start a business. Of course they start the business to make profit. That Is, the revenues collected from the customers in selling their products should be more than the expenditures made from offering the product to the market. That is, if the revenues collected are more than the expenditures, then the remaining balance will be profit, the reward for the entrepreneur.
However, not all entrepreneurs have success In starting and operating a business. Sometimes they fail. That is, the expenditures for offering their product to the market could be more than the revenues collected from the market. Then entrepreneurs face loss that is an unwanted, unexpected situation. In creating large businesses, during the first years, generally loss occurs. But if a business goes steady and when markets mature then profits take place. This also compensates for the prior years’ losses.
Entrepreneurs should possess some important characteristics. Although many people would like to start their own businesses or operate businesses as owners that have been started by other entrepreneurs, some may not have the important features that entrepreneurs should possess. We see many entrepreneurs who do not have these qualities starting and operating their business. Therefore these characteristics should not be considered as obligatory requirements. But an entrepreneur who has these qualifications will have many possibilities to succeed in business.
