Theories and Qualities of an Entrepreneur

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Entrepreneurship is a very important aspect of the economy and contributes much to the world. However, entrepreneurship depends on many aspects that individuals influence. Entrepreneurial skills are very useful for any entrepreneur to succeed in entrepreneurship. These skills can be learned while others are inborn, and it might take a lot of time to instill those skills in a person. Entrepreneurs need skills like good communication, leadership, problem-solving, creativity, and time management. There are several ways in which individuals always know if they are good in entrepreneurship very early after assessing themselves and seeing if they possess the skills and qualities for entrepreneurship. This is because these qualities play a crucial role in the success of a business.
Theories and Qualities of an Entrepreneur
Innovation theory
Innovation theory is among the oldest in the field of entrepreneurship and was developed by J.A Schumpeter. The theory of Schumpeter emphasized Innovation by the innovator, the entrepreneur. The entrepreneur is responsible for combining several tools and introducing something new for consumption (Piñeiro-Chousa et al.,2020). The theory covers several aspects involving introducing new goods that consumers are not yet familiar with. The second element is the introduction of new methods of production that consumers have not yet tested the experience. The third aspect is opening up the new market, which a branch has not ventured into. The theory of Schumpeter emphasized more on Innovation. Schumpeter made a clear distinction between an inventor and an innovator in his Innovation theory.
In the economic development process, entrepreneurs have been assigned a crucial role so that the tempo of growth is maintained effectively. The combination of products to produce newer and better goods helped to yield satisfaction in society and profit for the entrepreneur. The development process requires several changes brought into the economy by entrepreneurs. According to Schumpeter, his theory was much more extensive, and entrepreneurship includes not only business people but also managers who are responsible for innovation functions. However, the theory has a few limitations, which can be very challenging. The innovating entrepreneurs are always vigorous and are not the majority of entrepreneurs. Secondly, Schumpeter emphasized too much Innovation leaving out other elements. The theory is effective, but some other aspects don't work without Innovation.
The social change theory
This theory was first initiated by Max Weber, who believed that entrepreneurs' growth heavily relied on ethical values and societal concerns. His sole concern was the social change and reaction of social ethics and capitalism. The theory analyzed religion and how religion impacts entrepreneurship culture (Bansal et al., 2019). The rationalized technology and acquisition of money impacted industrial growth. These elements of growth rely on the specific value orientation of individuals. Individuals tend to acquire what should be governed by ethical values. According to Max Weber, the driving force for entrepreneurs was the adoption of exogenously supplied religious beliefs. The Indians took the values and brought them to behavioral business, which remained immune to external pressure.
The theory of social behavior
Kunkel presented this theory, and he stated that the supply of entrepreneurs is based on political, social, and economical structure. This theory asserts that individuals' activities are related to their present and previous surroundings, social structure, and physical condition (Shultz et al., 2018). Individuals perform different activities; some are accepted by society while others are criticized. Accepted activities are rewarded by society. It acts as reinforcement which leads to the probability of repeating the behavior pattern. This social pattern is used as entrepreneurial behavior to determine the supply. The entrepreneurial supply depends on the limitation structure, demand structure, labor structure, and opportunity structure. These elements influence the various aspects of entrepreneurship in different dimensions.
Qualities of an Entrepreneur
Entrepreneurs need to have several qualities which enhance their success in the competitive world. They should be creative and innovative, which will be useful in problem-solving. When a path to a solution is not clearly defined, we need creative individuals to come up with a solution. Creativity is very crucial for all entrepreneurs as it allows them to create new ideas which will be very effective. Entrepreneurship entails many activities, and individuals need to be very creative since they will come across many problems in their daily activities. They have to be in a position to think outside the box and give a viable solution that covers the present and the future.
Collaborative and communication
Entrepreneurs don't operate in a vacuum; they interact with people, and they should be able to build connections. The ability to build connections and start collaboration is crucial in entrepreneurship (Piispanen et al., 2018). They have to develop a clear understanding of the digital world and be able to use it in collaborate with others people. It enables them to benefit from a diverse range of conversations and build ideas and partnerships across borders. Communication can enable them to build a campaign and communicate several elements of the business easily.
Flexibility and opportunity recognition
An entrepreneur needs to be able to recognize opportunity once it emerges. Some opportunities are emerging daily in our life that entrepreneurs need to take advantage of. There are cases where entrepreneurs are afraid of investing, and others fail to recognize the opportunity is going to waste. Successful entrepreneurs can always look at the problem and develop a potential solution (Piispanen et al., 2018). Entrepreneurs should also be ready to welcome diverse ideas and adapt to different situations. It is important in overseeing and planning for the future. Some...