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03. How would you identify and select entrepreneurs for financing SME projects? Discuss.


Entrepreneurs are those persons (business owners) who seek to generate value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets. A desire for independence and a strong sense of initiative are usually characteristics of a successful entrepreneur. They have the following characteristics:

·         They are dedicated to their workings.
·         They have Entrepreneurial Personality
·         They have basic business competency, industry specific knowledge.
·         They desire to win and succeed coupled with vision
·         They are the creative type.
·        They take risks and succeed. Risk involves looking into the future and believing that there is a probability of the occurrence of certain events. And on this basis a decision is taken to do or not to do something.
·         Successful entrepreneurs react quickly to change.

There are many types of entrepreneurs like Spiral (Helical) entrepreneurs, Occasional entrepreneurs, Habitual entrepreneurs, Growth entrepreneurs etc. We need to select true entrepreneurs by their characteristics. We can say, the characteristics which are discussed above are considerable to select entrepreneurs for financing SME projects.