Role of Entrepreneurs in Organizations - Essay Example

? Topic: Role of Entrepreneurs in Organizations due: ROLE OF AN ENTREPRENEUR IN AN ORGANIZATION Question one Today’s business organisation solely depend the entrepreneurial culture that enhance a company’s competitiveness and the market share it gains. An entrepreneur is a person who organizes and mobilizes resources-people, money, skills, ideas and market to create something that did not exist before and which is feasibility profitable.( Academy of engineering, 1978).An entrepreneur according to Drucker(1985) is someone who perceives and exploits opportunities. This implies that an entrepreneurship is a process of creating new and valuable things which includes ideas and converting into a usable product that satisfy a need (Hisrich and Peter, 1985). The increasing importance of entrepreneurship accentuates why small ventures are growing at a faster rate than larger organizations. A similar survey indicates that over the last decade, small ventures created more jobs than the larger which instead, continues to lose jobs (Drucker, 1985). Furthermore, the changes in the business environment such as harsh global as well as the local competition, sudden and unexpected alteration of demand, the rapid acceleration of technological development and increase in risks. Innovation and creativity have become essential for survival, growth and profitability in today’s business world as evidenced in the leadership styles, product and market development strategic moves and innovations and immense creativity. Another feature of that has changed the face of entrepreneurs in an organization is the growing networking. This network can be characterized by increasing market forces, co-operation between firms, collaboration for research and development, subcontracting, outsourcing and strategic alliances that have leapfrogged firm’s profitability and ironed further the roles that entrepreneurship performs in organizations. As no firm can really operate on its own, each depends on the other for survival in the competitive world. Question two There are various types of entrepreneurs. The scope of entrepreneurs is determined by the nature of the business venture, the ‘real’ objective of starting up the business. First, there is a business entrepreneur. This is entrepreneurs who conceptualize of a business idea, start and manage the business. In business arena, they generate noble ideas, exchange goods and services with tailoring all the marketing and brand building to attract and increase the sales volume of their products. They manufacture and innovates new and unique products and services which satisfy the customers’ needs by alleviating the prevailing problems. For instance, Sir Branson of UK serves as an imperative example. Business entrepreneur plans, organize, develop and manages corporate affairs with immense creativity and skill that champion their corporate firms into profitable ventures. For instance, former General Electric long-serving CEO, Jack Welch who stirred the firm into greater heights in performance. Second, there are technology-based entrepreneurs endowed with skill and high technical knowledge in technology. The technical entrepreneur poses high skills in product crafts and focuses mainly on the product design and development so as to supply the market with sophisticated products. The non-technical entrepreneurs focus on the non-technical aspects such as marketing, distributions and pricing strategies to promote the sales of the product while the professional entrepreneurs are the one who creates new technology or an idea and sells to others in form patents and other copyrights. Third, there are motivational based entrepreneurs. First, pure motivational entrepreneur create jobs for other rather than seeking a job for himself. They pose a high desire to create a new venture or an idea that will create jobs and improve the living standards for others. Others in this category include ,induced entrepreneurs who are encouraged by the government to invest in a particular sector so as to spur economic growth and development. For instance, Mark who has created jobs for others through his inventions. This has driven the economy of his nation and the improved resource and information needs through facebook services. This is due to the fact that there are businesses around the world which depends on facebook as a tool for communication. ( Williams, 2006) A great entrepreneur should pose the following characteristics to qualify as a good entrepreneur. First, he/she should have a brain to plan. A wise entrepreneur is a creative and wise thinker who knows how to predict the future. Through this prediction, he organizes a plan so that his objectives of the plan are attained. This sets him/her apart from others who fail to plan. As the saying goes, whoever fails to plan is instead planning to fail (Kuratko, 1995) Kuratko (1995) argues that an active entrepreneur executes his/her plan. He /she poses an organized implementation framework that distinguishes him from those, though they have good plan fails to execute them making them useless and wasted. He/she mobilizes and organizes resources such placing people in their right jobs and positions, has a good communication, leadership and can motivate his team accordingly all the time. Third, successful entrepreneurs see things twice. This enables him to avoid biased and harsh decisions that will hurt others. It can also be noted in the article that he does monitors and checks the business activities to ensure that it is running according to plan (Kuratko, 1995) Fourth, a shrewd entrepreneur has a good nose to study his competitors through a possible search detection of risks and dangers. ( Williams, 2006).His creativity enables him to come up with so many ways of prevention of the foreseeable danger. In addition, he/she has good stress management skills to enable him protect his business, employees while caring for the satisfaction of the business stakeholders. For instance, he will ensure that customers are satisfied within products and services created. In times of trouble, he still remains steadfast and composed. His center on his objectives remains a goal to be executed and pursued. Fifth, an active entrepreneur has a heart to create good relationship with others. As noted in the article, he practices patience, shows humility, rejoices in truth and avoids evil acts that may cause him trouble. For instance, dome business persons act unethically and illegal as long as there benefit exceed the cost. These are good entrepreneurs as they cause harm and trouble to others (Ghohal and Bartlett, 1995). Furthermore, he maintains a real good bond with his employees, co-owners, investors, creditors and customers. In addition he has good spirit to live on. The dreams hatched are pursued to the latter as he believes in them and walks a step each day towards them. (Kuratko, 1995) .They are profit and growth-oriented innovators who take up calculated risks. Basically, these qualities have both tangible and intangible benefits to the society and the region as a whole. For example he defends his employees, business and other stakeholders. This has an impact of creating peace and stability in a nation through creation of jobs, enhances an intercultural diversity, promotes the living standards f the citizens and solves the needs for the people in a society. In a long run, there is a peaceful co-existence between different groups of people thereby promoting further economic growth and development. Developing a new and unique product or service into a successful business greatly depends on the brilliance of the idea that an entrepreneur invents. The source of business ideas vary depending on the nature and personality, the skills and knowledge and the interest a person predisposes. According to Pinchort (1985) one of the sources of business ideas that may champion into a business success is to figure out the manner of mitigating that pain, suffering through an excellent execution. Ideas can also originate from, mistakes, decisions, experience, hobbies and leisure activities, travel and trips, brainstorming, watching and listening to creative business idea generation programs, unexpected events, stupid situations, changes in the demographics and industry structure. These sources of business idea promote the quality of life by enabling companies produce quality product and services. The cost of living is reduced thus improving the worth of life in a social order. Question three Entrepreneurs create networks in organizations. According to Pache (1989) networks are long-lasting exchange relationships between two or more companies that is based on the mutual interests of the members. This organization uses resources and assets owned by others within the same network. The members take up a proactive role in product or service improvements to ensure that the venture is lucrative. Networks have created due to various types of environmental, demand and supply, market and technical changes and globalizations. These changes have fueled and altered strategic changes in organizations in terms of style of management, strategy and change. They have saved on cost thus increasing profits and thereby expanding the business further. For instance, they have fostered the directive way of management in that faster and well refined decisions are made faster and according to the situation at hand (contingency theory). The relationship in firms and organizations have changed and continues to change due to the behavioral approach the executive has adopted as a way of managing relationships between it and staff. Networks have also improved on the flow of information, increased the effective redistribution of resources in society’s thus promoting equality and fairness. This buoyed by the need for a system’s approach towards solving of problems by taking a broader outlook and having along term planning approach. This has far reaching benefits in an organization and the society as a whole. Through entrepreneurship, the global competitiveness has changed and increase in terms of scope, objectives and focus. This has enabled firm to move away from the convectional perspectives and towards the entrepreneurial perspectives where the organization is viewed in terms off a system, change is anticipated, weakness and opportunity ascertained and linked strategically so as to aid enhance the company’s competitiveness. This improves the organization and makes the life of consumers better and cheaper through such means as a reduction in price of products and services reduced the product life-cycles and other incentives. It also has improved on the product development patterns, altered the consumers purchasing and consumption patterns and improved in the information sharing between firms and consumers. Due to launching of new ventures in business worlds today, there is a possibility of growth and improvement on the entrepreneurial potentials and capabilities in the business markets. This enables business organizations to share risks with others, assess additional resources and substitute the missing entrepreneurial skills (Hisrich and Peters, 1989).This implies that entrepreneurs spearhead and alter the manner and outlook of the way strategy, policies and structure of a given organization is run and managed. This improves the learning curve for the organization thus leapfrogging the organizations’, sustainability, growth and survival today’s business world characterized by fierce competition , low-cost superior products and shorter product life cycle. Entrepreneurs promote entrepreneurial activities in an organisation. First, an organization constantly contemplates new ways of leadership, new markets, great innovations and a revolutionalised system of thinking in terms of formulating strategic business unit and delegating authority to ensure a speedy decision making in an organization. Foe example, Toyota international has delegated authority to their regional managers in different parts of the world. This ensures customer excellence, reduction in cost of operations and improves the quality and speed of decisions enacted. The improvement of quality of systems, procedures and process that are creative and innovative ensure that products and services are of global standards- are able to compete in global markets and earn a substantial profits for the company. Entrepreneurial activities such as research and development, out sourcing and subcontracting to obtain the best quality of products are all activities that result from the entrepreneurship processes in organizations today. For instance, everyday companies outsource, subcontract to get the best quality of services and enhance their value chain activities. This promotes the competitiveness of the firm. By enacting effective planning mechanisms, organizational leadership stemming from noble ideas, marketing and advertising ads that capture and retain their customers, all champion the organization to gain a better market share and position in the industry. In time of business adversity, these firms can survive and grow to be the world leader in the products. It can also be noted that through entrepreneurship, there rate of globalization has accelerated and continue to grow in the technological realms (Heelas and Morris, 1992) Lastly, entrepreneurship acts as a stimulant in economic development. The competition between different organizations necessitates the need to come up with new and superior products to stay competitive in the market. Firms continue to institute continuous programs in their operations with an aim of improving quality f goods that customers need. As noted by Drucker (1985), speed and focus on creativity improve the economic system that determines the allocation of resources in society. It enables resources to be allocated efficiently and effectively thereby avoiding wastages and inefficiencies. It promotes the rate of growth and economic development by improving mechanisms through which a given economy functions. Question four Entrepreneurship is without drawbacks and challenges. These are factors that act in hindrance to the consumers’ success. There is stiff competition which slices the market share due to lean profit margins and slow rate of expansions. This has been evidenced especially in regions which have sophisticated technology (Hisrich and Peters, 1989). There is lack of financial and non-financial support from the creditors, suppliers, friends and relatives as they lack the same focus like the entrepreneur thus limiting how far the progress of advancement moves. Lack of relevant education and training has been pointed out as one of the factor s that impede the growth and performance of entrepreneurs in our society. Drucker (1985) notes that the more educated and trained an entrepreneur is the better and well informed his decisions. This has positive correlations with the rate of performance. There is also lack of government support in terms of formulating relevant terms and conditions, policies and creation of an enabling environment for business success. For instance, in insecurity, political instability such as that in Somalia, heavy taxation and lack of incentive will discourage the potential entrepreneurs from venturing into their ideas. This limits the rate of growth and development in a society as the profits, demand, markets and technological progress is fixated. Finally, there are socio-cultural aspects in some culture of people that hinder the smooth progress of entrepreneurs in our societies. Presence of taboos, indecent superstitions and discouraging cultural frameworks, all work against the growth and development of entrepreneurship. Well, entrepreneurship is a very imperative process that drives the organizations and the society in general due to their benefits they bring to their organizations and societies despite the challenges. There are still millions of ideas that are unexploited and my urge is that young people think of what idea can become profitable. Let them pursue their dreams as anyone can in this sector. References I. Casson, M.1995. Entrepreneurship and Business culture. Edward Elgar, London. II. Williams, C.C., 2006.The hidden enterprise culture: entrepreneurship in the underground economy. Edward Elgar Publishing III. Drucker, P. 1985: Innovation and entrepreneurship. Pen books, London. IV. Ghohal, S. and Bertlett, C.1995: Building the entrepreneurial corporation: New Organizational process, new managerial tasks. European management journal, 6: 139-155 V. Hisrich, R. and Peters, M. 1989. Entrepreneurship. Irwin, Homewood (Illinois). VI. Kuratko, D.1995: Developeing Entrepreneurship within organization is today’s challenge. Entrepreneurship, Innovation and change, 2:23-32 VII. Pache, G.1989.The role of small business in the development of a network organization: The case of France. International small business journal, 4: 71-76 VIII. Paul Heelas, Paul Morris.1992.The Values of the enterprise culture: the moral. Taylor & Francis. IX. Pinchort, G.1985:intrapreneuring.Herper&Row, New York. X. Szarka, J.1990: Networking and small firms. International small business journal, 2:10-22 Appendices Q1: What is entrepreneur and briefly discuss its increasing importance in today’s business societies around the world today. Q2: Briefly, enumerate the type and underlying features that distinguish these people from others from other type of entrepreneurs in business world today? Q3: What are some of the roles played by these very important people in business organizations? They say that an organization that lacks an entrepreneurial culture stands chance of cherishing in the long run. Comment on this statement? Q4: what are some of the challenges that entrepreneurs face in a given society? Read More