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  • Definition of Entrepreneur

    Definitions by different scholars, sources and their views is described below for your reference.

    Entrepreneur is one who assumes the risk and management of business. Webster dictionary

    Entrepreneur is a person bearing risks of profits (loss) in fixed price contract with the government. The 17th century concept.

    Entrepreneur is a person bearing risks is different from one supplying capital. Richard Cantillon, 1725.

    Entrepreneur is a person bearing risks, planning, supervising, organizing and owning. Beaudeau, 1797.

    Entrepreneur is separated profits of an entrepreneur from profits of capital. Jean Baptiste Say, 1803.

    Entrepreneur is distinguished between those who supplied funds and received interest and those who received profit from managerial capabilities. Francis Walker, 1876.

    Entrepreneur is an innovator and develops untried technology. Joseph Schumpeter, 1934.

    Entrepreneur is an economic man who tries to maximize his profits by innovations. Haggen, 1958.

    Entrepreneur is an energetic moderate risk taker. David McClelland, 1961.

    Entrepreneur maximizes opportunities through systematic innovations. Peter Drucker, 1964.

    Entrepreneur takes initiative, organizes some socio-economic mechanisms, and accepts risk of failure. Albert Shapero, 1775.

    Entrepreneur seen differently by economists, psychologist, business person and politicians. Karl Vesper, 1980.

    Intrapreneur is an entrepreneur with an already established organization. Gifford Pinchot, 1983.

    Entrepreneur is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychological, and social risks and receiving the results- rewards of monetary and personal satisfaction. Robert Hisrich, 1985.

    Entrepreneur is a person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs. Indigo Dictionary of Business, 2002.

    Entrepreneur is an individual who undertakes (from the French entreprendre to undertake) to supply a good or service to the market for profit. Entrepreneurs will usually invest their own capital in a business and take on the risks associated with the investment. The view of capitalist is that the initiative of entrepreneurs creates a society’s wealth and that governments should therefore establish conditions in which their activities are encouraged. Oxford Dictionary of Business, 2002.

     

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  • Location Selection for Starting a Business

    Selecting a proper location is one of the major factors to be considered when starting a business. When a location is selected it should observe the long-term perspective of the business. Location selection involves a big investment. Choosing the right place at initial stage will avoid costs of relocation in the future. Improper location selection also results in loss of sales and in turn low revenue and profit. In order to select the right site we need to consider some factors. Here below are some factors you should consider when selecting your business site.

    Customers: When you select a site consider the availability customers around your location. This is considered when you intend to sale products and services around the site. Check the closeness of the market around your business and select the site accordingly. If the plan is to sale products and services in other location or online you do not need to worry for this point.

    Competitors: Assess the availability of competitors around the site. If there are many competitors in one place it is a sign of the existence of huge market but there is also strong competition. If you get considerable amount of revenue you can proceed with the site which has strong competition. Nil competition means there is a high market or no market at all. So the existence and non-existence of competitors around your site will show you how much market is available.

    Transportation: When you select a business location take in to account the existence of public transportation service. Customers come and purchase products and services if there is convenient transportation service. Study also how much does it cost to reach your location. If transportation cost is too high people may prefer to go to other places. So consider the availability and cost of public transport while selecting a site.

    Supply and Inventory: When you start a business you sale products and services. These products and services require inputs to be processed or to be resold without any processing. When you select a business site consider the existence and cost of supply and inventory. Sometimes there might be supply and inventory in the location but if the cost is too high you need to be cost effective in selecting.

    Utilities: Utilities are the major input to run the day to day business activities. A site must have utilities in place to be considered as a business location. Check the existence of electric power, water, communication and transportation services while selecting a site.

    Workforce: The engine of any business is the workforce. The availability of workforce is unquestionable for the success of a business. You cannot run a business alone especially when it grows. You have to consider the existence and cost of workforce while selecting a business location.

    Physical Plants: You are not required to build your own plants at initial stage of starting a business due to various reasons. The reasons could be not all business requires a new plant, lack of finance or you are not interested to have your own plant. You need to check the cost of leasing a physical plant and consider it for your site selection.

    Future Expansion: A business started today will grow and expand in the future. The expansion requires additional space around the existing location. Consider the availability of space for future expansion when you select a business site.

    Parking Facilities: You sell products and services to your customers when they visit your site.  When customers visit your site they need parking services. Give careful consideration for the accessibility of parking facilities when you select a business location.

    Traffic Flow: You need to consider the general situation of the traffic flow around the location you are going to select. The traffic flow should be as convenient as possible to get the required number of customers. Customers may not frequently visit your site in overcrowded traffic flow areas.

    Points to Remember: you need to consider the cumulative effects of the above factors while selecting a business location.

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  • House approves second national human rights action plan

     The House of People's Representatives (HPR) on Tuesday (December 27) approved the second national human rights action plan. Tabled to the House by the Legal, Justice and Administrative Affairs Standing Committee, the amendment made its focus on civil, political, socio-economic, cultural, environmental and developmental rights. According to the Chairman of the Committee, Petros Woldesillasie, the newly included and amended human rights laws are believed to ensure the human and democratic rights of the people. 

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  • Entrepreneurs are Inventors

    Entrepreneurs are individuals who change the world through invention and innovation. Invention and innovation make new or existing things with added value where there are potential markets.Entrepreneurs change problems and risks in to opportunities and final products. They also have the abilities to overcome difficulties that would hamper many people.

    Innovation by Entrepreneurs

    This is the advancement or modifications launched by entrepreneurs which include the following:

    1.Initial Project

    • New environment-friendly or Eco-friendly task and manufacturing of goods

    2.Expansion of the Project

    Succeeding modifications and developments in the amount of items created

    3.Factors Innovation

    Increase in supply or performance of elements of production. It includes the following:

    • Financial- Procurement of capital resources from new supply or new in kind.
    • Labor- finding of labor from new source or in new type; upgrading of an existing labor.
    • Material-Procurement of old product from brand-new resource or usage of brand-new material.

    4.Production Innovation

    Modification or Adjustments in the manufacturing procedure or process. Includes:

    • Technological – introducing of brand-new production methods. Worth addition to an already existing product.
    • Organizational – adjustment of type or structure or connections among people.

    5.Market Innovation

    Changes in the size or make-up of the marketplace; includes:

    • Product-production of new item or change in quality or reducing price of an existing product.
    • Market-penetrate in to new marketplace.
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