The Individual Entrepreneur
The most basic business form is the sole proprietorship, owned and operated by one owner. The owner is also termed an individual entrepreneur. In sole/ individual entrepreneurship, the single owner is solely responsible for business liabilities and solely entitled to business profits.
The individual entrepreneur does not create a new legal entity. He is a natural person who has the right to implement activities, independently on his behalf and at his own risk, without forming a legal entity. The following are some of the notable characteristics of an individual entrepreneur.
1. Sole ownership of the enterprise
2. Bears unlimited liability of business operation
3. Manages and controls the enterprise solely
4. Bears risk and responsibility solely
5. Does not have legal existence
6. Does not share profit or loss
8. Enjoys independence in decision
Entrepreneurial Feeling
Entrepreneurs come from a variety of backgrounds, family situations, and work experiences. Hence, they have different feelings about entrepreneurship. Entrepreneurial feelings are the awareness factors that motivate a person towards entrepreneurship.
Locus of Control
The entrepreneurial feeling has its root in the locus of control. It indicates the sense of control that a person has over life. It may be internal and external.
Internal locus of control:
Some entrepreneurs are motivated by an internal locus of control. It is an extent to which individuals believe that they can control the events that affect them. They believe that they can control their own destiny and make decisions on their own.
External locus of control:
Entrepreneurs with an external locus of control believe that their lives are controlled by outside forces and external forces influence their decisions.
Checklist for feelings about control
1. Do you often feel ” that’s just the way things are and there’s nothing I can do about it”?
2. When things go right and are terrific for you, do u think, “it’s mostly luck”?
3. Do you think you should go into e-business because everything you read these days is urging you in that direction?
4. Do you know that if you decide to do something, you’ll do it and nothing can stop you?
5. Even though it’s scary & risky to try something new, are you the kind who tries it?
6. Do you think it’s important for everyone to like you?
7. If u want something, do you ask for it rather than wait for someone to notice you and ” just give it to you”?
8. Even though people tell you “it can’t be done,” do you have to find out for yourself?
Answering yes to Q’s 4,5,7,8 indicates that you possess the internal control aspect of being an entrepreneur.
Answering yes to Q’s 1,2,3,6 indicates that you are more geared towards external controls which may hinder your entrepreneurial tendencies.
Feelings about independence and need for achievement
- Need for independence- being one’s own boss.
- Need for achievement- recognition of an individual’s need.
Checklist about feelings about independence
1. I hate to go shopping for clothes alone
2. If my friends won’t go to a movie 1 want to see, I’ll go by myself
3. I want to be financially independent.
4. I often need to ask other people’s opinions before I decide on important things
5. When I know I’m in charge, I don’t apologize; I just do what has to be done
6. I’ll speak up for an unpopular cause if I believe in it
7. I’m afraid to be different
8. I want the approval of others
Answering yes to Q’s 1,4,7,8 indicates that you do not have a strong need for independence.
Risk-Taking
Risk-taking is a part of the entrepreneurial process. Entrepreneurs manage risks by transferring them to others.
Risk-taking is a part of the entrepreneurial process. Entrepreneurs manage risks by transferring them to others.
Checklist about willingness to take risk
1. If you are frightened of something, will you try to conquer the fear?
2. Do you hesitate to try new foods, new places, and totally new experiences?
3. Can u walk up a total stranger & strike up a conversation?
4. Have you ever intentionally traveled an unfamiliar route?
5. Do you need to know that it’s been done already before you’re willing to try it?
Answering yes to Q’s 2,5 indicates that you need to develop a greater willingness to take risks.
