ENTREPRENEURIAL MINDSET

WHAT IS ENTREPRENEURSHIP?
Entrepreneurship involves directing all factors of production towards the achievement of set goals to obtain profit. Entrepreneurs are risk takers and the greater the risks, the higher the profit. However, not all risks are worth taking but successful entrepreneurs take calculated risk.

Out of the four factors of production, entrepreneurs play a unique role in the effective coordination of other resources. Unlike labour, entrepreneurs are thinkers, visionary and employers of labour. They create job opportunities for the labour force.

Entrepreneurs are those that manipulate others in order to get their job done OR employs people to fulfill their visions, goals and objectives. Every businesses has its own risk but the level at which they operate differs.

NOTE: The higher the profit, the higher the risk.

Entrepreneurs make profit and the extent at which the profits are made depends solely on the entrepreneur and his decision. Hence, entrepreneurial gains are not fixed because it fluctuates. They can make higher and higher gains depending on their level of risk taking. Labour on the other hand, can’t earn more than their employers. Hence, they are limited in gains and employ more of physical strength in getting things done. The negative effect is, they depreciate fast.

• Entrepreneurs make profit WHILE Labour earn wages.
• Entrepreneurs are employers of labour WHILE Labour are the employees.
• Entrepreneurs employs the use of analytic thinking WHILE Labour employs the use of physical strength.
• Entrepreneurs gives directives WHILE Labour follows directives.
• Entrepreneurial gains are unlimited WHILE Labour gains are limited.

• Behind every project implementation is a vision, so an entrepreneur should have business visions and plans that are realistic.

BUSINESS SECRET:

• What makes one business venture a success more than the other lies in an entrepreneur’s business secret, it is the strength of an entrepreneur. If care is not taken and it falls in competitor’s hand, it will pose itself as a threat to the entrepreneur and may not maintain their competitive advantage position for long.

ORGANIZATION:

• Combining and directing all factors of production towards the goal of making profit. Differentiating assets from liabilities, an asset of unknown use constitute liabilities or wastage.

ACCESS TO INFORMATION:

• It is not enough for the entrepreneurs to know their products inside out. There is need to possess current information about the market for their product, their customer feedbacks, competitors etc.

AVAILABILITY OF CAPITAL:

• Successful entrepreneurs plan for present and future financial obligations and always set aside funds to cater for emergency situations.

EFFECTIVE PLANNING:

• This goes beyond making just prototypes, it includes managing the limited resources; time, labour, capital, land etc. It involves putting a business plan in place, capable of dealing with emerging situations.

EXIT PLAN:

• In entrepreneurial ventures, things don’t always go according to plan. Sometimes it is best to quit the funding of a failing business and focus on funding something new “much realistic”.

Images credit

Written and compiled
By @aduragbemi
15/04/2018