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Characteristics of Entrepreneurship: Do YOU have what it takes?

Created on 24 Mar 2023

Wraps up in 13 Min

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Updated on 30 Mar 2023

Do you want to leave your imprint on the world and have a great idea but aren't sure how to make it a reality? If so, entrepreneurship could be the right path for you!

Entrepreneurship is a mindset that includes the ability to recognise and act on opportunities. It is the process of starting and running a business with the goal of making money, and it necessitates creativity, resourcefulness, perseverance, problem-solving abilities and a pinch of luck.

Entrepreneurship is fundamentally about taking risks and innovating. It is about being able to think differently and come up with creative solutions to problems. It is about having the courage to take risks and the resilience to recover from setbacks. It involves having the foresight and perseverance to turn your dreams into reality.

The world is full of successful entrepreneurs, but it's important to remember that entrepreneurship isn't just about becoming a billionaire. It's about having the ability to spot opportunities and seize them, even if that means beginning modestly. To create something from nothing requires perseverance and tenacity. Making your ideas a reality requires passion in order to remain dedicated and work tirelessly.

Steve Jobs was a visionary entrepreneur who wanted to create something new. The idea of creating a computer that was user-friendly and accessible to the general public inspired him. He wanted to create a computer that was more than just a tool; he wanted it to be a way of life. He considered computers to be an extension of a person's lifestyle. He had witnessed the success of the personal computer (PC) industry and believed he could do better.

To create the Apple I and Apple II computers, he assembled a team of engineers and designers. He desired to create a computer that was well-designed, simple to use and featured a graphical user interface (GUI). He also wanted to develop an innovative marketing and distribution strategy for Apple products.

He built relationships with local computer stores and bargained with national chains. He also developed a direct-mail marketing campaign to reach computer enthusiasts. Steve Jobs was a successful entrepreneur who dared to try new things. His vision, innovation, and commitment to quality resulted in the establishment of a company that revolutionised the computer industry and altered how people interacted with technology.

Entrepreneurship requires dedication and hard work, whether you're starting your own business, developing a new product, or launching a new service, but the rewards are well worth it. You can make your dreams a reality and create something truly unique if you have the right mindset and attitude. So, if you're ready to dive into entrepreneurship, now is the time to get started.

Factors necessary for successful Entrepreneurs

There are no fixed checkboxes that a person can possibly hit in order to be “the best entrepreneur alive”. The discipline is ever-evolving, and the parameters that may lead to success differ among businesses and entrepreneurs alike.

However, these are some of the traits that an entrepreneur could benefit from inculcating in their lives.

1. Vision: Vision is essential when it comes to successfully navigating the entrepreneurial journey. The founder of Invento Robotics, Balaji Viswanathan, has a clear vision for revolutionising how people use machines in their daily lives. His robots are programmed to do mundane tasks like cleaning, gardening, and even cooking in order to make life easier and more efficient. This entrepreneur is driven to make his vision a reality with a strong sense of purpose.

2. Risk-taking: Ratan Tata, the former chairman of the Tata Group, one of India's largest business conglomerates, demonstrated that taking risks pays off! Tata Group acquired the iconic Jaguar Land Rover from Ford Motors under his leadership, a risky move at the time. The Tata Group, on the other hand, has become one of India's most successful conglomerates thanks to Ratan Tata's willingness to take risks. So, take a chance, and who knows, you might become the next Ratan Tata!

3. Creativity: Apoorv Sinha, the co-founder of Grofers, demonstrated his ability to think outside the box. He employed novel strategies such as converting grocery stores into delivery hubs and leveraging store owners' customers. To increase customer satisfaction even further, he implemented a customer rewards programme and a same-day delivery system. If you want to be an innovative entrepreneur, think like Apoorv and be creative—it could be the key to your success!

4. Passion: Setting your passion on fire is crucial if you want to succeed as an entrepreneur! Just take a look at Ola Cabs' founder, Bhavish Aggarwal. His fervent desire to offer practical transportation options throughout India has enlightened the country and given people the freedom to move about with ease. So, ignite your passion and entrepreneurial spirit!!

5. Determination: In the same way that a rocket engine propels a rocket to the stars, an entrepreneur's perseverance keeps them from giving up. Just take a look at Alibaba's founder, Jack Ma. He persevered despite all obstacles to achieve his goal of making it simpler for small businesses to access the global market. Remember that if you want to succeed, what will propel you there is your determination!

6. Adaptability: Entrepreneurs must be able to adapt to changing market conditions in order to remain competitive. For example, Vijay Shekhar Sharma, founder of Paytm, was able to quickly adapt his business model to the changing landscape of digital payments in India.

7. Leadership: To guide your team and organization to success, you need a strong topping of leadership on the delicious cheese pizza of the business. With the right ingredients, you, like Kiran Mazumdar-Shaw, founder of Biocon, can make your company the biggest and best it can be!

8. Resourcefulness: Sachin Bansal is a master of resourcefulness! He discovered a way to make the most of limited resources to launch the phenomenally successful online marketplace Flipkart. He was like a chef who created a delicious meal from the ingredients in his pantry! His resourcefulness was a key ingredient in his recipe.

9. Persistence: Entrepreneurs must be persistent and never give up in order to achieve success. For example, Jeff Bezos, founder of Amazon, was persistent in his pursuit of creating an online marketplace that could provide customers with a wide variety of products.

10. Networking: It's always a good idea for entrepreneurs to build a strong network of connections. As Falguni Nayar of Nykaa has done, they can gain access to the resources and opportunities they need to succeed. Consider your network to be a spider's web: the stronger it is, the more secure it is. So reach out and start making connections today—you never know where it will lead!

11. Self-Awareness:  As an entrepreneur, self-awareness is like a superpower; it provides you with the insight and clarity to identify and leverage your unique strengths and weaknesses. With it, you can make decisions that result in revolutionary products, as Apple's Steve Jobs did. So polish up your self-awareness and use it to propel yourself to the top of your industry!

12. Problem-Solving: Entrepreneurs who want to succeed must be expert problem solvers! They must be able to think quickly and come up with solutions in a challenging environment so that their business can succeed. Consider Travis Kalanick, the man who started Uber. He was able to recognise the lack of dependable transportation options and develop a remedy that revolutionised the sector. If you want to be a successful entrepreneur, don't be afraid to explore possibilities and solve any problems that come your way..

13. FInancial Literacy:  If financial education were a tasty dish, Mark Zuckerberg would be the head chef. If financial education were a tasty dish, Mark Zuckerberg would be the head chef. He used his knowledge to develop a recipe that has resulted in Facebook becoming one of the most profitable businesses in the world.. Whether it's analysing investments, understanding cash flow, or developing budgets, Mark has the expertise to make sound business decisions that have kept Facebook in the black. He is a financial literacy expert, and his success formula will ensure that Facebook continues to grow for many years to come.

14. Market Knowledge: Entrepreneurs must have an in-depth understanding of the market in order to identify opportunities and create successful products. For example, Elon Musk, founder of Tesla, has a deep understanding of the automotive industry that has enabled him to create revolutionary electric cars.

15. Communication: The journey of an entrepreneur is similar to that of a roller coaster; there are thrilling highs and jaw-dropping lows. Nevertheless, success depends on your capacity for effective communication with those around you, regardless of how rough the ride may be. The importance of communication cannot be overstated, whether it be for developing relationships with potential clients or winning support for your company. Take hold of your communication skills and buckle up for an unforgettable ride if you're ready to jump in..

Best countries for Entrepreneurship

Entrepreneurship is not just dependent on the person(s) running the business. The country that the business sets off in also plays an important role in terms of the operations of the economy, the regulatory ease or hurdles and more.

Here are some of the best countries in the world in terms of ease of running a business.

Entrepreneurship in India

According to the new Global Entrepreneurship Monitor (GEM) and National Entrepreneurship Context Index (NECI), India ranks fourth out of 51 countries in terms of the quality of its entrepreneurial ecosystem.

The score, reported in the 'GEM 2022/2023 Global Report: Adapting to a New Normal,' is a significant improvement over the previous year's score of 16. India's latest score of 6.1 reflects a steady improvement in the country's overall entrepreneurial environment over the years.

India's NECI score increased from 5.8 in 2019 (sixth among GEM economies) to 6.0 in 2020. (ranked 4th). However, there was a drop in 2021, with a score of 5.0 (barely adequate) and a ranking of 16th.

GEM defines an economy's entrepreneurial context in terms of 13 distinct characteristics known as the Entrepreneurship Framework Conditions (EFCs). The NECI results are based on the Framework Conditions scores for each of the 51 participating economies. At least 36 experts are chosen to evaluate the statements that comprise the scores that can be compared across countries.

"The improved quality of the entrepreneurship ecosystem is a reflection of both the Indian government's initiatives in supporting new businesses, such as Make in India and the Atal Innovation Mission, and a change in popular culture evident through interest and celebration of entrepreneurship through television shows like Shark Tank India," said Dr Sahasranamam, a co-author of the current GEM global report and Associate Professor in Entrepreneurship, in a statement.

Entrepreneurship in United Arab Emirates

The United Arab Emirates has topped the GEM and NECI for the second year in a row. "Entrepreneurship remains a high priority in the United Arab Emirates, with the recently launched ‘Projects of the 50’ targeting the next 50 years of development," Teemu Kautonen, professor at the United Arab Emirates University and Team Leader of the GEM UAE Team, expressed his opinions.

In 2019 and 2020, the UAE ranked fifth among GEM economies and then leapt forward in 2021 to become the most highly rated of all GEM economies. In 2022, its NECI further improved to a score of 7.2, the highest achieved since the NECI was introduced in 2019.

There are numerous fieldwork conditions that contribute to the UAE's top ranking. For example, with government policies promoting quality support programmes and colleges offering courses on how to start a business, Education at School: Schools introduce entrepreneurial concepts. Market dynamics: markets are free, open, and expanding. Other such factors exist, but these are critical.

India is approximately 39 times larger than the United Arab Emirates. Meanwhile, the population of the UAE is 9.9 million people (1.4 billion more people live in India).

Entrepreneurship in the United States of America

The United States' 15th-place ranking in the GEM and NECI highlights opportunities to improve the country's overall entrepreneurial environment. This is one of the findings in the GEM 2022/2023 Global Report, Adapting to a New Normal, which was released today in collaboration with Babson College.

In the previous report, the United States ranked 11th overall. The four-place drop from the previous year could be attributed to difficult economic conditions, including the highest inflation rates in 40 years. "High inflation rates add uncertainty for entrepreneurs because they must consider the impact of price increases on everything from customer demand to resource procurement," said Jeffrey Shay, Entrepreneurship Professor at Babson College.

The United States of America is a developed economy with a very strong GDP. There have already been so many successful entrepreneurs that Silicon Valley is already chock-full of new businesses. And they have fully utilised the technological resources, leaving almost no or very little room for expansion, implying that there is no untapped market or category in that economy to develop, which is where India enters the picture. 

India has many untapped markets and product categories. As a result, we see this as an opportunity to further develop ourselves through the use of technology and other resources that we have.

Rank

Countries

Score

1st 

UAE

7.2

2nd 

Saudi Arabia

6.3

3rd 

Taiwan

6.1

4th  

India

6.1

Future of Entrepreneurship in India

India's current business environment has improved and now provides numerous opportunities for entrepreneurship. The Indian Government has greatly aided start-up businesses to perform and survive in both the domestic and international markets. The government has provided numerous funds, schemes, and initiatives to help entrepreneurs. Furthermore, talent is increasingly willing to work with start-ups, and investors, both foreign and Indian, are pouring money into them.

According to a World Bank report, India has the world's second-largest population of entrepreneurs, trailing only the United States. This is due to the improved business environment, government initiatives, and funding availability. Initiatives by the Indian government, such as the 'Startup India' program, have improved the country's business environment and encouraged investment in the start-up sector. The "Startup India" programme offers tax breaks, easier credit access, and industry-specific incentives to entrepreneurs.

The improved business environment in India is also a result of increased investment from both foreign and domestic investors. For example, a business may need to navigate through a maze of bureaucracy to get the necessary approvals, a lack of access to affordable financing or resources like land or machinery, and many other hurdles that can stand in the way of success. It can be like a game of hide and seek, where the entrepreneur is seeking the right people to get the necessary signatures.

Access to financing can also be a major challenge. In India, small businesses often don’t have access to traditional sources of financing, like bank loans or venture capital. This can be a major hurdle, as the lack of funds can be a serious bottleneck in launching or expanding a business.

But despite all these challenges, Indian entrepreneurs are resourceful and resilient. They often find creative ways to overcome these obstacles and make their business dreams come true. 300 active tech startups last year, bringing the total number of active tech startups to 25,000–27,000 India remains the world's third-largest tech startup ecosystem. In addition, the country added the second-most unicorns in the world, with over 23 added in CY2022.

Aside from that, the availability of talent has aided in shaping India's business environment. The number of employees working in start-ups has increased dramatically in recent years. This is because the number of students working for start-ups and e-commerce businesses is increasing. In terms of ease of doing business, India has significantly improved in comparison to other countries.

According to the World Bank, India ranked 63rd out of 190 countries in terms of ease of doing business in 2022. This is a significant improvement from the 142nd position it held when the Modi government took office in 2014.

To summarise, India's improved business environment has helped the country become one of the top three investment destinations in the world. This is due to the government's numerous initiatives, increased investment from foreign and Indian investors, and the availability of talent. India is now regarded as a strong platform for entrepreneurs with bright prospects for the future.

Challenges faced by Indian Entrepreneurs:

Indian entrepreneurs face numerous obstacles on their path to success. It's like attempting to scale a cheese mountain! The cheese is gooey and sticky, and it comes in a variety of shapes and sizes. The following are some of the most common challenges that Indian entrepreneurs face:

1. Inadequate funding: Lack of funding is analogous to attempting to climb a cheese mountain without enough fuel to reach the summit. Startups in India frequently struggle to obtain funding from venture capitalists and other investors.

2. Competitive Environment: The cheese mountain is riddled with obstacles ranging from competitors to regulations, making it difficult for entrepreneurs to stand out.

3. Lack of Talent: Finding the right team is like finding the perfect pathway for the climb. Indian entrepreneurs often face the challenge of finding the right people with the right skills and experience.

4. Bureaucratic Obstacles: It's like trying to climb the cheese mountain while dealing with government red tape. Entrepreneurs in India must navigate a complex web of bureaucracy, from registering a business to obtaining the necessary licences and permits.

5. Lack of Awareness: Many Indian entrepreneurs lack the knowledge and resources necessary to enter the appropriate market and reach their target audience. It's like trying to find a mountain's peak without a map.
Despite these challenges, Indian entrepreneurs are inventive and resilient. They frequently come up with novel solutions to overcome these obstacles and achieve their entrepreneurial goals.

The Bottom Line

It is amazing to see how quickly India has transformed into a thriving entrepreneurial hub. India has the world's third-largest startup ecosystem, with over 84,400 startups operating in 656 districts. This demonstrates that Indian entrepreneurs are constantly striving to innovate and create new solutions for the country's benefit.

The encouraging environment created by the government, investors, and other stakeholders has enabled entrepreneurs to set up shop in the country. This has enabled them to develop innovative solutions that can improve people's lives. With the right support, these startups can realise their full potential and help India become a global economic leader. 

To sum up, entrepreneurship in India is an exciting prospect and the key to a prosperous future. India is on its way to becoming the world's leading startup ecosystem, and with the right support and guidance, it has the ability to reach its full potential. So, let us all work together to create a bright future for India. After all, when it comes to entrepreneurship in India, the sky's the limit!

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Shivam Vallecha

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Shivam is a PGPM student at ICFAI Business School Pune. He participates actively in social activities and believes that people should be the change rather than just seeking it. The majority of his time is spent reading, but he also enjoys binge watching. His belief is that people must dream big and work hard in order to grow each day and achieve their dreams. 

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