The role of contractors
To produce goods or provide services, companies must organize their resources and decide how much risk they are ready to take. A entrepreneur will do this by making decisions about what to produce or supply using the resources at their disposal. These resources will include land, labor and Capital city.
For example, a contractor who has identified a need for a new gym will need:
- Earth – natural resources such as land and water. A gymnasium will need land for a physical building.
- Work – human effort, skills and knowledge. A gym will need staff who can offer advice on health and fitness.
- Capital – equipment and money used to provide goods and services. A gym will need fitness equipment and money to pay staff.
- Business – willingness to take risks, make decisions and organize resources. All of this will be needed to open the Gym.
Entrepreneurs who are able to combine these resources successfully often share a number of personal characteristics. These include:
Creativity is the ability to create something, often by using imagination and knowledge and turning them into reality. This doesn’t necessarily mean inventing something new, it can mean finding a different solution to a problem using known information.
Entrepreneurs must be willing to take risks if they want to succeed. There is no guarantee of success in the event of a business, which means that anyone wishing to start their own business runs the risk of failure, often resulting in financial loss.
Entrepreneurs will need to be determined to work hard and keep going even when things aren’t going well. Running your own business isn’t easy, so anyone who gives up at the first sign of trouble is unlikely to succeed.
Entrepreneurs are generally positive people who believe in their ideas and businesses. It gives them the confidence they will need to take risks and will encourage others to believe in their ideas.