Self-Efficacy: Theory of Behavioral Change - Essay Example

?introduction An entrepreneur is someone who starts a new venture to make the most of the benefit of an opportunity that he sees. Apart from this, anentrepreneur takes several calculated risks in the process of starting and managing his venture (Lundstrom, and Stevenson, 2005). There are different characteristics of entrepreneurs that make them different from others and these characteristics are helpful in making them successful. This report analyses the characteristics of entrepreneurs that make them successful. Attributes, characteristics and behavior of entrepreneurs Entrepreneurs are different from others. Their attributes, characteristics and behaviour are not the same as of any other individuals. The most important attributes, characteristics and behaviour of entrepreneurs have been mentioned below: Ability to take Risks: It is the characteristic of an entrepreneur to take risk which is not found in everyone and it is one of the characteristics that make entrepreneurs successful. Entrepreneurs have the ability to take calculated risks and because of their attribute to take risks throughout their lives they are more successful than others. As it is said that high returns are associated with high risks (Khan, 1986). Determinant: Successful entrepreneurs are determinant and focused towards the end goals and objectives. This enables them to achieve these goals and objectives. It is important for the entrepreneurs to be dedicated and focused in order to accomplish the set targets (Deakins and Freel, 2009). Passionate and Ready to sacrifice personal goals: The passion and dedication of an entrepreneur are the factors that motivate him. An entrepreneur is very passionate about achieving his goals and for this reason he is even able to sacrifice his personal goals. Self-Directed: An entrepreneur knows what he has to do and what he has to achieve. Entrepreneurs have great planning skills and with this, they are able to plan short term as well as long term goals. He knows his mission and his objectives and in order to accomplish his mission he works hard. A successful entrepreneur does not require directions and initiates the processes himself (Lundstrom, and Stevenson, 2005). Hard Worker: Hard work is one of the main attributes of an entrepreneur and he is ready to work day and night to achieve the objectives. An entrepreneur is never afraid of giving his best efforts and he is ready to achieve his objectives and mission, with his hard working characteristic (Deakins and Freel, 2009). Enjoy Work: The important characteristic of an entrepreneur is that the he enjoys whatever he does and this distinguishes an entrepreneur from others and because of this characteristic he is not tired of working for long hours day and night. This also facilitates the entrepreneur in the putting endless efforts for accomplishing the set targets and goals (Deakins and Freel, 2009). Optimistic and Positive: An entrepreneur is very positive, confident and optimistic and this is the reason why he is able to devote everything that he has to achieve the objective and help his business to win the competition (Lundstrom, and Stevenson, 2005). The optimistic approach of an entrepreneur is helpful in making different decisions as well throughout his professional careers. Theories related to the personality factors of the entrepreneur Psychological Entrepreneurship: There are certain psychological characteristics that accelerate entrepreneurship. If those are possessed by any individual then it can be very helpful for him to be an entrepreneur. Those characteristics include need for high achievement, a broader and constructive vision, and capability to be able to face all sorts of challenges. These are few characteristics that are incorporated in an individual during his upbringing. All of these qualities not only affect individual’s productivity but also the quality of work he delivers, self-determination and his morale. Innovation theory Entrepreneur plays a very important role in the development and progress of any economy. His efforts reflect innovation, smart thinking, and creativity. Innovation in any society is began when any entrepreneur comes out with a new product, or a new methodology, explores a new market, finds out a new source of raw material, or does an introduction of new technology or an organization in any industry. Theory of Achievement Motivation Two characteristics have been identified by McClelland: 1) Doing things in a new and improved way 2) Ability of making decisions in uncertain situation He emphasized on the fact that people with high on need for achievement are more inclined towards entrepreneurship. These are the people for whom only money and extrinsic rewards do not work much, they need to achieve more and more. For them achievements are realized by success and competency. Motivation theory by McClelland (Acquired Needs theory) According to McClelland, there could be three types of need that one can possess at a single time. 1) Need for achievement 2) Need for power 3) Need for affiliation Among these three, need for achievement is one that must be up to the most level in any entrepreneur. Whereas affiliation refers to marinating good relations with others including subordinates. On the other hand, need for power refers to the ability to control other around you. Motivating factors for them could be internal or external, varies from person to person. the Kakinada Experiment Under this experiment young adults were taken for three months training program. The focus of the training program was to make individuals achievement oriented for their future. The contents of the courses were: The trainees were encouraged to talk to themselves in a positive manner and get rid of all the evil thoughts existing in their minds. They are made to control their thought process They were made to imagine themselves in a situation where they are in high need for challenges and success and for their achievement; they needed to set high achievable SMART goals (Deakins, and Freel, 2009). They were made to be concentrated towards their goal and were getting frequent feedback which was making them stay focused on their path. Traditional beliefs are not rigid in entrepreneurs because they are the ones who think out of the box and come out with something new and different. Relevant training programs can be very helpful in such cases and they act as a motivating factor for young entrepreneurs. It has positive impact on their overall level of performance and productivity. Kakinada experiment program actually made people realise about the importance of this training program known as EDP (entrepreneurial development program) whose basic aim is to motivate young entrepreneurs and induce competence in them. Self efficacy and effectuation Self efficacy is referred to have faith in one’s own ability and is about self-determination. Effectuation refers to execute a business idea in a correct manner (Bandura, 1995). For any entrepreneur it is very important to have these traits. These are the two things that are the clear distinctions between a businessman and an entrepreneur (Bandura, 1977). Personal Reflection to these characteristics and attributes Successful entrepreneurs should govern their business by setting an example for the employees, they lead by example. Their passion for business explains the reason why they leave secure jobs to start their own firms and why billionaire such as bill Gates of Microsoft continued working even after they got rich and financially very strong. Entrepreneurs identify opportunities by continuously trying something new. The failure rate associated with new businesses are usually high their tenacity despite failure shows the commitment to the employees as well as their customers. There are several characteristics of an entrepreneur that are also found in my personality and some of the most prominent and common characteristics in an entrepreneur and in my personality are: hard worker, risk taker, optimistic, and passionate. Although at times, I am hesitant in taking risks but I try to evaluate the situation from different perspective to make sure that the decision is correct in the long run. These characteristics of an entrepreneur that are found in my personality as well have been helpful throughout my life in making me what I am today. And I am confident that these skills will enable me to achieve my goals and targets in my future life. Seminars in the class have been very helpful and they have realised me that the above mentioned characteristics and attributes are very important for an individual to achieve success in his life. Also these seminars have been useful in making me understand the importance of each of these characteristics and behaviours as well as in identifying me ways to improve their level of characteristics. Conclusion An entrepreneur generally struggles in his early phases of live when he is starting a new venture however these characteristics are helpful in making him successful and going through this challenging and difficult phase of his life successfully (Andersson, & Wadensjo, 2007). All these abilities are God gifted, but one can polish these skills with the help of appropriate training and development (Oosterbeek, Praag, & Ijsselstein, 2010). There is strong evidence that entrepreneurship activities have a strong impact on economic and social stability. It has a positive impact on not only the firm but also motivates others to start their own business and in turn this encourages economic growth. Entrepreneurs would take risk however it is important for them to take calculated risks. The most important quality or skill for any entrepreneur is the ability of continuous learning and improvement. List of References Andersson, P, & Wadensjo, E 2007, ‘Do the unemployed become successful entrepreneurs?’, International Journal of Manpower, vol. 28, no. 7, pp.604 – 626 Bandura, A 1977, ‘Self-efficacy: Toward a unifying theory of behavioral change’, Psychological Review, vol. 84, pp. 191-215. Bandura, A 1995, Self-Efficacy in Changing Societies, Cambridge University Press: Cambridge. Deakins, D, and Freel, M 2009, Entrepreneurship and Small Firms, 5th Edition. McGraw Hill: New York Lundstrom, A, and Stevenson, L 2005, Entrepreneurship Policy: Theory and Practice, Springer: New Mexico. Oosterbeek, H, Praag, M, & Ijsselstein, A 2010, ‘The impact of entrepreneurship education on entrepreneurship skills and motivation’, European Economic Review, vol. 54, no. 3, pp. 442-454. Read More