Business Studies Ch-20 Entrepreneurship: Qualities of a Successful Entrepreneur and Functions of an Entrepreneur (For CBSE, ICSE, IAS, NET, NRA 2022)

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Qualities of a Successful Entrepreneur

Let us now know about the qualities of a successful entrepreneur. There may be many qualities needed to successfully run an enterprise. However, the following qualities are considered important:

Qualities of a Successful Entrepreneur


In the world of business, opportunities come and go. An entrepreneur has to be a man of action. He should be able to initiate action and take advantage of the opportunity. Once you miss the opportunity it will not come again. Therefore, initiative on the part of entrepreneur is a must.

Willingness to Assume Risk

In any business there is an element of risk. It implies that a businessman may be successful or unsuccessful. In other words, it is not necessary that every business shall earn profit. This deters individuals to take up business. However, an entrepreneur always volunteers to take risks to run a business and be successful.

Ability to Learn from the Experience

An entrepreneur may commit mistakes. However, once a mistake has been committed, it should not be repeated as that will lead to heavy losses. So, one should learn from his mistakes. An entrepreneur, therefore, should have the ability to learn from the experience.


Motivation is the key to success. This is necessary for success in every walk of life. Once you get motivated to do something you will not rest unless you complete it. For example, sometimes you become so much interested in reading a story or a novel that you do not sleep unless you complete it. This kind of interest in the work comes through motivation. This is an essential quality of a successful entrepreneur.


For achieving success in life, one should have confidence in himself or herself. A person who lacks confidence can neither do any work himself nor can inspire others to work. Self-confidence is reflected in courage, enthusiasm and the ability to lead. A successful entrepreneur must have self-confidence.

Decision Making Ability

In running an enterprise, the entrepreneur has to take a number of decisions. He should therefore, be capable of taking suitable and timely decisions. In other words, he must take right decision at the right time. In the present world, things move very fast. If an entrepreneur does not have the ability to take timely decision, he might miss opportunity and incur loss.

Functions of an Entrepreneur

Some of the major functions of an entrepreneur are:

Functions of an Entrepreneur

Identifying Entrepreneurial Opportunity

There are many opportunities in the world of business. These are based on human needs like food, fashion, education, etc. , which are constantly changing. These opportunities are not realized by common man, but an entrepreneur senses the opportunities faster than others do. An entrepreneur therefore, has to keep his eyes and ears open and require imagination, creativity and innovativeness.

Turning Ideas into Action

An entrepreneur should be capable of turning his ideas into reality. He collects information regarding the ideas, products, practices to suit the demand in the market. Further steps are taken to achieve the goals in the light of the information collected.

Feasibility Study

The entrepreneur conducts studies to assess the market feasibility of the proposed product or services. He anticipates problems and assesses quantity, quality, cost and sources of inputs required to run the enterprise. Such a blue print of all the activities is termed as a ‘business plan’ or a ‘project report’ .


An entrepreneur needs various resources in terms of money, machine, material, and men to running the enterprise successfully. An essential function of an entrepreneur is to ensure the availability of all these resources.

Setting up of the Enterprise

For setting up an enterprise the entrepreneur will have to fulfil some legal formalities. He also tries to find out a suitable location, design the premises, install machinery and do many other things.

Managing the Enterprise

One of the important functions of an entrepreneur is to run the enterprise. He has to manage men, material, and finance and organize production of goods and services. He has to market each product and service, after ensuring appropriate returns/profits on the investment. Only a properly managed organization yields desired results.

Growth and Development

Once the enterprise achieves its desired results, the entrepreneur has to explore another higher goal for its proper growth and development. The entrepreneur is not satisfied only with achieving a set goal but constantly strives for achieving excellence.

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