ENTREPRENEURSHIP Definition

Understanding Entrepreneurship

Entrepreneurship is nothing but self-employing. An entrepreneur should have innovative ideas and should plan proper strategies to implement those ideas. The process of entrepreneurship also involves decision-making and forecasting. To start any business, entrepreneur has to find sources for financing the business and then earn profits from the business deals. The entrepreneurs have come up with a lot of new business ideas which has developed different types of entrepreneurial ventures (Drucker, 2014). The type of entrepreneurship can divided under many bases. Based on the type of business occupation, there are five types of entrepreneurship as given below-

  1. Business Entrepreneurs- These types of entrepreneurs are those individuals who develop new ideas for a particular product or service. After that they try to convert their idea into materialistic business by means of developing new business opportunities. The entrepreneurs seek for resources to run their business and production. The size of their entrepreneurial business venture can be big or mall. Mostly the size of all the ventures is small and the owners are called the small business entrepreneurs. Example, advertising agency, tour and travel agency, confectionery, ready-made garments, textile processing house, etc. These small business enterprises have flourished in the manufacturing business and have significantly contributed towards the economy.
  2. Trading entrepreneurs- The trading entrepreneurs do not involve in the business of manufacturing good and services, they are concerned with the trading. They identify the potential market and create the demand for their products amongst the customers. The buyers become interested to purchase their products. Trading entrepreneurs are involved in both the national and international trade (Colquitt, Lepine & Wesson, 2011).
  3. Industrial Entrepreneur- The industrial entrepreneurs are those who specifically manufacture goods and services according the customer needs. These entrepreneurs are product-oriented who start their ventures with the thought of producing new products. The industrial entrepreneurs have the capability to convert the economic resources into a profitable venture with the help of technology. Example- textile units, machine tool manufacturers, electronic industry, etc.
  4. Corporate Entrepreneur- These types of entrepreneurs are the ones who manage corporate undertakings and demonstrate their innovative skills. the corporate undertaking are those ventures which are registered under specific regulatory Act to run as a separate legal entity. The corporate entrepreneurs have to make sure that they run their business according to the rules and regulations under which their company is registered.
  5. Agricultural Entrepreneurs- The agricultural entrepreneurs take up business activities of agriculture. They produce and market the agricultural crops, fertilizers and other such products related to agriculture. They use the method of irrigation and utilize the technology for dry land to increase the productivity of the agricultural sector (Goffee and Scase, 2015).

All the entrepreneurs of different entrepreneurial ventures study the market and the behaviour of their prospective customers. They analyse the products and are always ready to take calculated risks. The main in every business is to run successfully by providing effective service and qualitative products to the customers.     

ENTREPRENEUR

The similarities and dissimilarities between types of entrepreneurial ventures and roles, characteristic and objectives of different types of ventures

There are certain similarities between the above-mentioned types of entrepreneurial ventures. The most common thing between all the entrepreneurs is that they are risk takers. Every business involves some amount of unavoidable risks. The entrepreneurs have the ability to convert their innovative ideas into realistic work. When they try to allocate their resources or when they try to take up any new manufacturing decision, or in any other situation, there are risks involved, which the entrepreneurs are ready to take. The entrepreneurs have the capability to manage their finances from the very beginning of their business process. They know which product would give them the maximum return and which will not. All types of entrepreneurial ventures aim at satisfying their customers. They spend time in doing proper market research and they try to study the behaviour of the customers. This helps them to provide the right kind of product and services to the customers (Bridge and O’Neill, 2012). All the entrepreneurs formulate plan for every types of situations and follow it so that the entire organization runs in a systematic way.

There are certain difference between the private enterprises, public enterprises and social enterprises. The differences can be stated as below-

Point of Difference Private Enterprises Public Enterprises Social Enterprises
Roles Providing the customers with different line of products and services; Analysing the needs of customers. Companies try to reinvest their earned profits into the society. Providing high quality products for their customers and offer them best service (Fayolle and Gailly, 2015, p.92). Make the society aware of several issues related to poverty and lack of resources; Providing goods and services to less fortunate people; spread awareness about the environment.
Characteristics Owned solely or jointly by individuals Concentrates on Corporate Social Responsibilities; Funded by Government bodies. Mostly, non-profit making companies established for philanthropic drive or environmental safety.
Objectives Earning maximum amount of profits Continue to serve the customers even during the recession. Make their country and rest of the places a better place for people to live and survive peacefully, save the environment from pollution and work for the people.

 

The micro, small and medium sized entrepreneurial ventures are mainly established to focus on the customers largely. The customer base for these kinds of ventures is huge and these customers have trust on these small sized enterprises. The gestation period of micro, small and medium sized firm is shorter than the big established ventures as the customers happen to do repeat purchases very frequently. These enterprises do not need to research for days and formulate plans to adapt to any economic variations in the market. They can modify their products and services accordingly the needs of their regular customers easily. The mode of working is also very simplified and these ventures try to maintain good relations with their customers (Jaskiewicz, Combs and Rau, 2015, p.33).

How the aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset? How is the personality of entrepreneurs shaped by family upbringing, cultural difference, and personal motivation?

The mindset of the entrepreneurs helps them to develop their behaviour and have positive attributes. The mindset of the entrepreneurs helps to be creative and innovative. They use these skills to differentiate their business process from others and bring a change in their product line. The positive attitude of the entrepreneur is important for running the business and for managing the employees of the enterprise. During recession or during the time when the company is incurring huge loss, the entrepreneur must show positive behaviour so that the employees get motivated to work harder to achieve the target and pull the company from the recession. The entrepreneurs must be open-minded and should provide opportunities to the employees to come up with their own ideas for any product or product strategy. This would help to build a good communication relationship between the entrepreneurs and its employees (Audretsch, 2012, p.758).

The society in which the person lives in affects his or her behaviour and personality. Every person hold different personality traits and they come from different family background with different financial status. The upbringing of a person has a huge role in nurturing the personality and character. A person develops several personality traits from different people in the society. The family values of a person can either make him/her focused, disciplined, honest and well behaved or it can make the person a complete rebel, unruly and mischievous (McKenzie and Woodruff, 2012, p.98). It also depends on the person as to how much he or she wants to adapt the family values. The surrounding of a person should be positive and motivating as it helps the person to achieve the characteristics of a positive person. Hence, the upbringing, cultural difference, and personal motivation nurture the personality of an entrepreneur.

How the background and past experience of a person can hinder or foster entrepreneurship? What are the Risks and rewards of starting a business?

A person can gain experience of how a business enterprise operates and functions, through proper training and working in different places. Different workshops, business training and internships can be taken up the entrepreneurs to enhance their skills and knowledge. This would help them to understand the ways in which they can operate their own business in future. They should also try to work under different types of business organizations to find out which pattern they would like to follow or which product they are interested to trade for their own business (Dacin, Dacin and Tracey, 2011, p.1208). There are other factors, which can foster the experience of the entrepreneurs-

  • Educational background- Education helps every person to gain knowledge about different subjects. An entrepreneur can have idea about different aspects of business through various articles, books and training courses. It is not always necessary that only those people with high number of qualification can become entrepreneurs. If a person has the passion and understands the basic functions of business, then he or she can also become a successful entrepreneur. For example- Steve Jobs (founder of Apple), Larry Ellison (founder of Twitter), Michael Dell (founder of Dell), Jan Koum (founder of Whatsapp) and many more famous people were college drop-outs who have proved that it is not necessary to hold a degree to become something (Neck and Greene, 2011, p.63).
  • National Culture– The entrepreneur has to understand the culture of the country in which he or she lives in. The products and services demanded by the customers would differ from one country to another has it affects the choice of the customers. The national culture also affects the business pattern and operations. The entrepreneurial ventures have to follow the rules and regulations of the act applicable in the country where they wish to run the business.
  • Economic Market- The market of every country is also different from each other. The entrepreneurs should study these markets thoroughly so that they can create demand for the products they want to offer to the customers. Before doing so, they should also understand that there can fluctuation in price of the raw materials or in the currency rate, so for this the entrepreneurs should make strategies so that the business operations do not fail during economic market changes (Lofstrom, Bates and Parker, 2014, p.237).

Every business has certain risks and reward involved in the business operation. When the entrepreneurs start their business with a certain sum of money as their capital, which has been taken as a form of loan, they should try their best maximize their profits and minimize their losses during the business process. This function would help to them in the long run as the business would attract investors. The risk is involved, as in case the company goes into loss, the entrepreneurs would have to pay the loan amount from their own pockets.  Hence, there are rewards and risks involve in entrepreneurship.

Conclusion

The process of entrepreneurship has influenced many youngsters to become entrepreneurs. Entrepreneurs have been successful in converting their innovative ideas into their business operations. The products and services offered by them also reflect their innovation and skills. The business of these entrepreneurial ventures has positively spurred the economic growth and has improved the economic condition of many countries by creating millions of job opportunities.

 

Reference List

Books

Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).

Bridge, S. and O’Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.

Colquitt, J., Lepine, J. A., & Wesson, M. J. (2011). Organizational behavior: Improving performance and commitment in the workplace. McGraw-Hill Irwin.

Drucker, P., 2014. Innovation and entrepreneurship. Routledge.

Goffee, R. and Scase, R., 2015. Entrepreneurship in Europe (Routledge Revivals): The Social Processes. Routledge.

Journals

Audretsch, D., 2012. Entrepreneurship research. Management Decision50(5), pp.755-764.

Awogbenle, A.C. and Iwuamadi, K.C., 2010. Youth unemployment: Entrepreneurship development programme as an intervention mechanism. African Journal of Business Management, 4(6), p.831.

Dacin, M.T., Dacin, P.A. and Tracey, P., 2011. Social entrepreneurship: A critique and future directions. Organization science22(5), pp.1203-1213.

Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial attitudes and intention: Hysteresis and persistence. Journal of Small Business Management, 53(1), pp.75-93.

Jaskiewicz, P., Combs, J.G. and Rau, S.B., 2015. Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship. Journal of Business Venturing, 30(1), pp.29-49.

Klein, P.G., Mahoney, J.T., McGahan, A.M. and Pitelis, C.N., 2010. Toward a theory of public entrepreneurship. European management review, 7(1), pp.1-15.

Lofstrom, M., Bates, T. and Parker, S.C., 2014. Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers. Journal of Business Venturing29(2), pp.232-251.

Martin, B.C., McNally, J.J. and Kay, M.J., 2013. Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business Venturing28(2), pp.211-224

McKenzie, D.J. and Woodruff, C., 2012. What are we learning from business training and entrepreneurship evaluations around the developing world? (Vol. 6202). World Bank, Development Research Group, Finance and Private Sector Development Team.

Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new frontiers. Journal of Small Business Management, 49(1), pp.55-70.

Raposo, M. and Do Paço, A., 2011. Entrepreneurship education: Relationship between education and entrepreneurial activity. Psicothema, 23(3), pp.453-457.

Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics, 111(3), pp.335-351.

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.

Thurik, A.R., Stam, E. and Audretsch, D.B., 2013. The rise of the entrepreneurial economy and the future of dynamic capitalism. Technovation, 33(8), pp.302-310.

Williams, C.C. and Nadin, S.J., 2012. Tackling entrepreneurship in the informal economy: evaluating the policy options. Journal of Entrepreneurship and Public Policy, 1(2), pp.111-124.