The act of being an entrepreneur is known as entrepreneurship. The one, who manages, organizes and bear the risks of an enterprise is an entrepreneur. Anyone can become an entrepreneur. Anyone who has an idea in mind can be an entrepreneur. For example a lady who never been to school but has certain ability and skills of making pickles and sells at her home and which most people like can set up an enterprise for pickles. Thus, an entrepreneur is an ordinary person who has a sense of innovating ideas and putting the ideas into practice which in return can provide the entrepreneur a lot of money.
An individual tend to become an entrepreneur when the latter is frustrated with his or her current job and wants to have their own business in order to make much more money than they were/ are earning in their jobs. Or even, a person can see no opportunities in the business. Some people may even think that their skills and knowledge is being wasted by working for someone else, thus they would prefer to work for themselves.
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Moreover people prefer to be an entrepreneur as they are going to be their own bosses. They will not have to work under pressure. These people will want to have their own business as they donâ€™t like to have bosses who will force them to work. Thus, by having their own enterprise they are going to be the boss. They will work whenever they want and at the time they think is appropriate and they are able to be on holidays whenever they wish. There being an entrepreneur proves to be very beneficial for a person.
Success cannot be guaranteed. Individuals are not sure whether they will be making a profit or a loss if they set up an enterprise. If we have a good idea in mind and by making an analysis in the market, we will be surer that the business is going to be successful, thus it is going to be worthwhile for a person to start a business. However, as stated before success cannot be guaranteed. Loss can also happen. The product or service provided by the entrepreneur can be good but there is no one who is buying the good or service, then the entrepreneur is going to make a loss.
Before getting involved in a particular business an entrepreneur should posses certain skills, capabilities and knowledge to start the business. Before engaging in a business, the new entrepreneur should answer the following question:
Is the person able to take responsibilities?
The type of goods or services that will be produced?
Where the market should be situated?
Will the business be able to provide wages for the employees?
Will the new entrepreneur be able to raise funds in order to start the business?
Whether the entrepreneur should start the business alone or should involve partners in or order to start a particular business?
These questions might help an entrepreneur to start his or her business. An entrepreneur should have certain characteristics and these are listed below
An entrepreneur should have intelligence and creative thinking in order to make innovations.
The entrepreneur should have an aim about the business. They should produce goods that will benefit their enterprise and not those goods that will allow them to make losses.
An entrepreneur should have the potential to keep secrets of the firm. If those secrets are leaked out then it will be advantageous for competitors.
Entrepreneurs should communicate properly. There must be a good communication between the receiver and the sender.
History of Entrepreneurship
The word entrepreneur has been around since the eighteenth century. Ever since humans felt the need that they should work, only then people were identified as entrepreneurs. Since the independence of Mauritius, the government had a policy to encourage the creation and promotion of small and medium enterprises (SME).
Small and medium enterprises found its origins in 1960s. At that time Mauritius was beginning a timid industrialization process with an import-substitution strategy with the main objective of supplying the local market and giving certain autonomy to the country.
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Entrepreneurship may provide jobs to people. Ever since there has been the barter system the concept of entrepreneurship has exist.
In 1976, under the aegis of the ministry of commerce and industry the SSIU that is small scale industry unit has been established. Entrepreneurship has been evolved with SMEDA, SSIU and others have helped entrepreneurs to start their business.
Development of entrepreneurship in Mauritius
Anyone who wishes to be an entrepreneur will start a small business first and then will try their level best in order to make it big one day. Thus entrepreneurs try to achieve a high profit by expanding their business.
A small entrepreneur can rise by providing what customer really needs. They will have to produce goods that customers are likely to buy. If customers are buying their products on a daily basis, thus the entrepreneur will be able to make profit by selling the products. These profits gain can help the entrepreneur to expand its business. For example, if an entrepreneur had one shop for clothing in a particular place, then the profits that the entrepreneur had received will allow him to start another shop for clothing in another place and so on. Thus the revenue gained from the sale of products will allow entrepreneurs to make their products known in different places.
For an entrepreneur to be successful, the latter must be able to manage risk and also satisfy customer needs. If customer needs are satisfied then there may be the concept of customer loyalty that is once a person has buy something from the entrepreneur and have appreciate their service then the customer will remain loyal to the entrepreneur that is will continue to buy their products. Entrepreneurs should take great care of their customers if they want to be successful.
Moreover entrepreneur should be able to deal with competition. If they are able to manage competition with the products they have then they are likely to improve their sales. Once sales increases, the entrepreneur is going to be successful. If people are willing to buy an entrepreneurs product rather than buying competitors brand, then the business is going to be profitable as the entrepreneur has the potential ability to deal with competitors
Incentives of entrepreneurship in Mauritius
There are many incentives in Mauritius that will help entrepreneurs to grow. Below is a list of organizations that help entrepreneurs to start their business.
Small and medium industries development organization is abbreviated as SMIDO. SMIDO is an organization that helps existing and new entrepreneurs to establish and make changes to their businesses. SMIDO has an export assistance scheme. This scheme helps entrepreneur financially to send their products abroad to potential buyers. Thus the organizations allow an entrepreneur to be known not only in its country but also in other countries.
They have another scheme which is known as feasibility study grant scheme. This scheme allows new entrepreneurs and existing ones to expand or diversify. Moreover, SMIDO provide training to new and existing entrepreneurs regularly. These training will enable entrepreneurs to develop skills and knowledge in relation to the setting up an enterprise and existing entrepreneurs are able to manage their enterprise efficiently.
SMIDO covers the following development programmes
Pricing and costing
Management of financing
Management of inventory
Mauritius industrial development authority refers to the abbreviated form of MIDA. MIDA provide financial support to entrepreneurs to participate in trade missions. They give advice to entrepreneurs, that is how and what should they do to make their business successful. They advise them on development promotional tools, thus entrepreneurs learn how to make their products known to the public from various forms of promotional tools.
This refers to the development bank of Mauritius. DBM provides loans to entrepreneurs to start their business and to existing business loans are given to make changes and improve their products and services. Loans can be obtained for manufacturing that is start ups of businesses. DBM also helps entrepreneurs to expand their businesses.
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Challenges faced or threats of entrepreneurship in Mauritius
Despite having certain rise of entrepreneurship there are also challenges that entrepreneurs face. Not all entrepreneurs have the ability to succeed in a particular business; there are also some entrepreneurs who can make loss rather than profits in their business.
Lack of capital
The main challenge that entrepreneurs face is capital. If a person does not have money then it is going to be difficult for him or her to start his business. Banks also does not always provide loans to new entrepreneurs as they do not trust them. Even existing entrepreneurs find difficulties to raise capital in order to manage their business efficiently as for example if the business is making a loss then banks will not think it as wise to lend money to these type of businesses. Thus the business may fail due to lack of capital.
Lack of marketing skills
A new entrepreneur will face difficulty to promote its goods and services to customers. To promote a product will cost entrepreneurs a lot of money. As the entrepreneur has just started his business he will not have enough money to have a good publicity for their product thus the new entrepreneurs only will have to promote their goods on their own. And if they do not possess the ability of convincing customers then they are likely to fail in their business. Therefore marketing also plays a vital role in entrepreneurship. Products and services must be known to customers, and it is difficult to convince customers. Thus a good marketing campaign will allow entrepreneurs to succeed in their business.
Execution of ideas
An entrepreneur may have good ideas but he or she may have difficulties while executing the ideas. Ideas can sometimes be very difficult to be handled. In our mind we may have a great idea of doing something but when the time has to put the idea into action can be difficult for some entrepreneurs. Thus an entrepreneur may feel discouraged if the latter is having at the beginning he or she may feel that it is useless to continue the business.
Lack of managerial skills
Most entrepreneurs may fall in their business just because they are not aware of how to build and run a successful business. They may have ideas but they may lack the basics of setting up an organization.
Cultural and social barriers
It is very difficult to create an enterprise as legislation knowledge, market and environment are demanded. Entrepreneurs need to know the culture of Mauritius before starting their business. Lack of information about the cultures of the society can be proved as a barrier for entrepreneurs as they may produce something that will be against the Mauritian culture and no one are going to buy the product, thus the business is going to fail.
Nowadays people do not want to work for people, they prefer to be their own bosses, and thus they start their own business. Working for our own will prove very beneficial for an individual as it will allow ordinary people to be successful in their lives. Being an entrepreneurship can allow people to rise or even fail. People become more self dependent. They even earn much more than they would have earned by working for other people.
It is a pleasure for me to thanks those who made this assignment possible. I had first liked to thanks my parents who gave me moral and financial support. And I also want to thanks all my friends of the university who enabled me to enable me to finish my assignment on time. And finally I would like to thank my respected lecturer Mr Najmul.