What is Entrepreneurship? And 12 Characteristics of Successful Entrepreneurs

what is successful entrepreneurship


what is successful entrepreneurship

Data from the Indonesia Central Bureau of Statistics in 2016 shows that the number of Indonesians who have become new entrepreneurs is around 3.1 percent of the population. When referring to the 2018 Entrepreneurship Global Index, the ratio of entrepreneurs in Malaysia, Thailand, and Singapore is 6 percent, 5 percent and 7 percent of the population, respectively, that one of the conditions for becoming a developed country is that the number of entrepreneurs in that country reaches 14% of the population.

However, the growing desire to become entrepreneurs among the millennial generation is seen as a positive trend. This can be seen by the emergence of new young entrepreneurs with creative ideas for innovation, besides providing many solutions to existing problems. Many young entrepreneurs have opened businesses related to environmental issues. For example, making plastic substitutes that we use today with materials that are easily destroyed and are friendly to be reabsorbed by nature.

What exactly is the meaning of Entrepreneurship?

According to the Big Indonesian Dictionary (KBBI), the meaning of entrepreneurship is the same as an entrepreneur. Namely someone smart or talented in recognizing new products, determining new production methods, arranging operations for procurement of new products, marketing them, and regulating their operating capital.

Peter F. Drucker (1909–2005) a management guru in his book Innovation and Entrepreneurship: Practice and Principles, defines “entrepreneurship is always exploring change, responding to it, and using it as an opportunity.” In summary, he said that Entrepreneurship is a “discipline”, something that can be learned and continuously worked on.

What is the Purpose of Entrepreneurship?

In line with the definition, Entrepreneurship must aim to produce or provide added value from a good or service, because for that you will get income, by providing added value in exchange for payment. Without creating or increasing added value, entrepreneurship will not be able to run, because it means that no person or company will want to buy the goods or services produced.

The purpose of an entrepreneur:

  1. Providing solutions to problems, increasing the added value of goods and services.
  2. Increasing welfare for both individuals and others with the business opportunities and jobs that are created.
  3. To create jobs for oneself and ones for others.
  4. Assisting the government in efforts to reduce unemployment and increase economic growth. With the increasing number of entrepreneurs, job opportunities will be wide open.

Thus, it is important for you not to focus on the income you want to get, let alone the motivation to want to start an entrepreneur, simply to be rich. It is not wrong to want to have more income, but this must be based on the right motivation focus on providing solutions and added value. If an entrepreneur can provide the right solution, it will automatically increase income.

characteristics of successful entrepreneurship

Characteristics an Entrepreneur Should Have

To become an entrepreneur or a successful entrepreneur, there are several characteristics that must be possessed, or explore continuously.

  1. Creative & Innovative

    Able to see existing problems & shortcomings, then make it an opportunity to create new products and services or improve the process of producing services and goods.

  2. Learning independently

    The desire and ability to continuously learn are important characteristics, especially with the rapidly changing world conditions. Always learning new things is the first step, to be able to find problems and solutions needed according to the times.

  3. Have a Present and Future view

    Building a profitable business today is certainly very important for the smooth running of a business but continuing to learn and innovate for future needs is just as important. That way the business you build can continue for the long term, not being sedated by momentary success.

  4. Dare to take risks

    This does not mean only dare to take risks carelessly but being able to calculate the risks it faces. Is the balance between the results obtained with the risks that can be faced, so that the company avoid fatal mistakes.

  5. Also read: What is a SWOT analysis? Benefits and Examples

  6. Have a spirit of never giving up

    Entrepreneurship is not an easy thing where often you have innovated, have learned things that are needed in the future, and are taking risks. However, the results are often far from what you expected, so it takes a winning spirit so that during difficult times, entrepreneurs can bounce back.

  7. Able to Do In-Depth Analysis

    An entrepreneur will always be faced with decisions that must be taken. Thus, the ability to analyze existing facts, input from the team and various information from outside the company is needed before making decisions. Nowadays, in an increasingly computerized era, it is important to conduct analysis based on existing data, so that decision making can be more precise, not based on assumptions let or based on intuition alone.

  8. Also read: 9 building blocks that entrepreneurs must think

  9. Have a Leadership Spirit

    An entrepreneur certainly does not aspire to run his own business alone, although this can be done. For example, an entrepreneurial photographer, you may feel you can do everything yourself. However, this is not included in the entrepreneurship category, an entrepreneur certainly wants to advance his company and build his business so that it can become a home for many employees which ultimately increases the workers’ income as well.

    For that entrepreneurs need the ability as a leader to build a reliable team, and together build a business.

  10. Continue to Build a Network of Relationships (Network)

    To become a successful entrepreneur, the ability to build relationships with partners is also needed. A good relationship with customers, with suppliers will certainly help business continuity. Building a network of relationships can also be with similar business associations, so you can get the latest information about what’s going on in your business industry, see existing shortcomings, or even get help from fellow entrepreneurs.

  11. Dare to Share

    In general, many entrepreneurs do not dare to share, because they feel they have not been successful or successful. “I only have 5 stores, later when my stores is 100 I will share”. Sharing is not about how much you give so that something is missing from you. But sharing is about helping other entrepreneurs with whatever we have today.

    We learn to share with all our limitations. Especially in 2015, 5 years ago when we started to provide free android mobile cashier application IREAP POS Lite to help Micro entrepreneurs to record all stock items, and store sales transactions, so they can better analyze sales to profits. Currently, the IREAP POS Lite cashier application has been downloaded by more than 200,000 entrepreneurs, worldwide

  12. Also read: Free Mobile Cashier Android for Micro Business iREAPPOS Lite

    franchise business cashier application

  13. Financially Prudent

    Many entrepreneurs fail to run their business because they are not wise in terms of finances. Generally, they have only been running a business for one or two years and get a profit. Instead of reinvesting the profits earned into his business but buying consumer goods for personal needs. Of course, you should be happy when your business is profitable, but you should not be complacent because doing a business has its ups and downs, and you need preparation when hard times come.

    When the Covid-19 pandemic lasted for more than 10 months and still shows no signs of ending. Many companies cannot survive, because of a lack of cash flow. This happened due to the decline in income for months which eroded the company’s financial condition.

  14. Access to Capital

    The weakness of micro and small entrepreneurs, in general, is access to capital, this is because they do not have neat and correct business records. This makes it difficult when you need additional working capital from financial institutions such as banks. Therefore it is important to have a record of all your business transactions correctly, not only when you need capital but also to analyze your business.

  15. Information Technology Adaptation

    The use of Information Technology is getting easier and cheaper, entrepreneurs must use information technology to compete in today’s highly competitive era. Entrepreneurs must use Information Technology to help manage their business better, faster, and more efficiently.

    For example, you can only open one shop, because you need to be always in the store all the time, all prices and stock items information only you and your sibling understand. By using information technology, you can start giving trust to your team for day-to-day operations. So you can expand to open a 2nd, 3rd store or franchise your business so that it can grow, and more people will benefit from your business.

  16. IREAP POS PRO helps monitor your multiple stores

So, before you want to start entrepreneurship, obviously there are many things that must be prepared well in advance, know the advantages and disadvantages of entrepreneurship for your business to be successful. Recording business transactions since the beginning of the business will be very helpful, making it easier for you to supervise, analyze your business, and make decisions.