Describe three features of entrepreneurs and analyze three strategies of acquiring capital by an entrepreneur.

5. (a) Describe any three features of entrepreneurs.

• Innovation: Entrepreneurs introduce new ideas, products, services, or processes to the market. They are creative and constantly look for ways to improve or disrupt existing industries.
• Risk-taking: Entrepreneurs are willing to take calculated risks, both financial and personal, in pursuit of business opportunities. They understand that success is not guaranteed and are prepared for potential losses.
• Proactiveness: Entrepreneurs are self-starters who take initiative and are driven to make things happen. They don't wait for opportunities but actively seek them out and create them.

5. (b) Analyze three strategies of acquiring capital by an entrepreneur.

• Bootstrapping: This strategy involves funding a business using personal savings, revenue generated from early sales, or by minimizing expenses. It allows entrepreneurs to maintain full ownership and control without relying on external investors, though it can limit growth speed.
• Debt Financing: Entrepreneurs can acquire capital by borrowing money from financial institutions like banks, credit unions, or through government loans. This typically involves repaying the principal amount with interest over a set period. It allows the entrepreneur to retain full ownership but requires a solid business plan and collateral.
• Equity Financing: This involves selling a portion of the company's ownership (equity) to investors in exchange for capital. Common sources include venture capitalists, angel investors, or crowdfunding platforms. While it provides significant capital and often mentorship, it means giving up a share of ownership and control.