A Critical Reflection - Essay Example

? A Critical Reflection Part My first encounter with entrepreneurship took place when I was ten years old. Back in my family home, I realized that most of my schoolmates had been taken by the frenzy of wristbands. However, the wristbands available at that time were mass produced and therefore lacked any aspect of uniqueness. I realized that I could make some money if I sold some branded wristbands to my friends at margin. Although the venture collapsed shortly thereafter due to lack of sufficient resources, it played a critical role in shaping my life towards always looking for opportunities to satisfy unmet business needs. I believe that success does not come only from working hard but also by seizing opportunities at the right time. Essentially, entrepreneurship requires one to have a knack of identifying the unmet needs, assessing the business potential of an idea and then finally committing to implement the idea. Since my first experience in business at the age of ten, I have made significant efforts to improve my personal organization skills in order to be effective. One of the key areas that greatly influence entrepreneurial success is time management. Planning and productive use of time is essential in helping one to achieve his or her goals (Bird and West 2007). In order to manage my time effectively, I always plan my work well in advance and try to follow the schedule accordingly. However, sometimes I do get distracted by other responsibilities such as family issues and deviate from my set plans. Also, private engagements and having fun consume a significant portion of my time which would otherwise be utilized in a more productive manner. Entrepreneurship often involves the pursuit of new and innovative ideas. Thus, an entrepreneur inherently works in a highly stressful and challenging work environment. I have managed to internalize and apply this skill in my life by exercising self awareness of my personal strengths and limitations as I pursue business goals. According to Rae, interpersonal interaction is a core component of entrepreneurship capabilities (Blenker et al 2012). Business inevitably involves interactions with people of various backgrounds. For instance, a businessman has to interact with customers, competitors, suppliers, government authorities and other stakeholders. In my daily endeavors, I always aim at growing my network of social and industry contacts. I have learnt that it is through interactions with people that I am able to find out what is important to them and understand the situation from their perspectives. This is fundamentally important for an entrepreneur as it helps one to gain comprehensive understanding of the customer and lays the foundations for creating a product that perfectly addresses the needs of the clients. Teamwork is essential in entrepreneurship since the tasks involved are often enormous and difficult for a single individual to handle (Clarke and Robin 2010). Working in teams requires the leader to rally individuals to towards the attainment of a common goal. Negotiations are also critical as part of interpersonal interactions since an entrepreneur has to bargain for the best deals possible. From the entrepreneurship module, I have that negotiations require proper planning, clear goals and patience (Robson 2010). These components are important since they help one to get the best results from any negotiation and reach a favorable agreement. Teece (2010) noted that an idea remains simply an idea unless it is rigorously assessed to ascertain its potential value. Imperatively, it is foolhardy to rush into executing a business a idea before investigating its viability. The first step of entrepreneurship is coming up with new or better ideas to solve challenges in the society. It is evident from the learning in this module that once an opportunity has been identified, the entrepreneur should investigate and develop options for exploiting the opportunity. It is also necessary for one to entrepreneur to identify how the available resources can be connected to exploit the available opportunities. In as much as I always try to evaluate and investigate opportunities, sometimes my judgment is crowded by subjective interests. For instance, I can develop sentimental attachments to some ideas due to the fact they appeal to my personal interests. However, Yeow (2007) indicates that opportunities have to be objectively assessed and evaluated before the idea which offers the greatest potential is selected. Innovation is a core element of entrepreneurship since entrepreneurs inherently seek new and creative ways of solving present problems (Kyrgidou and Mathews 2012). It is evident from the entrepreneurship module that innovation should be utilized to connect current knowledge and technologies to create new products and services. I believe that innovation is vital in entrepreneurship as it differentiates game changing products from mere imitations. I have adopted the culture of innovation in many of my engagements as I always seek new and creative ways of solving customer needs. Growing up, I learnt the importance of being creative and improvising since I had to survive with the available resources. This skill has enabled me to accomplish various even when the right resources are unavailable. As the cliche goes, success happens when preparation meets opportunity. One of the necessary aspects of business is strategic venture planning. Successful enterprises need a clearly defined mission as well as the mechanisms to attain the goals of the business. I have learnt that the preparation and running of a business are enormous tasks that may require cross cutting expertise. It is difficult for a single individual to possess all the skills required to prepare all the strategic plans for business operations. A business plan is important in order to lay down all the aspects of the business that the entrepreneur seeks to start. According to Biais and Enrico (2008), the strategic venture planning can be used to identify and plan the resources that are needed to launch and grow a business. I have realized that proper planning can assist the entrepreneur to clearly identify all the requirements of the business and where the various resources will be sourced from (). The motivation for entrepreneurs is to gain profit or returns while serving the needs of consumers. Marketing is vital in order for the entrepreneur to reach out to potential customers of the goods or products. (Bird and West 2007) indicates that marketing plans form the blueprint of how the products and services will trickle down to the consumers. The entrepreneur has to first establish the actual and potential customer needs and preferences. It is also necessary to develop targeted marketing tactics that effectively address the target customers. It is imperative to note that a business is an ongoing venture and thus the process of marketing should be continuous and monitored according to the set milestones. Part 2 My personal vision for the future is to become a successful entrepreneur and create a positive difference in the society. I believe that entrepreneurship will not only help me to solidify my financial position but also play a role in making life better in the community by solving the needs of people. My motivation to become an entrepreneur is rooted in my passion to engage in challenging activities and be at the forefront of leading development in my country and the world at large. Suffice to say, entrepreneurship presents the flexibility and opportunities that can help me to achieve my vision. One of the most important values in my life is hard work. It is evident that any worthy endeavor may be faced by challenges and difficulties. This means that one has to be ready to work hard in order to achieve his or her goals in life. For instance, it is necessary for a student to put in long hours of study in order to pass examinations. According to Robson (2010), an entrepreneur has to put efforts towards ensuring that the business takes off and attains profitability. In the future, I hope to reinforce my work discipline so as to enable me to succeed in entrepreneurship. Kyrgidou and Mathews (2010) notes that an entrepreneur has to be committed to attain the goals of a business irrespective of the challenges or difficulties. The ability to see things through in spite of challenges is also a key value in my life. Determination is the ability to stay focused to a particular goal and committing to do all that is necessary to succeed. A substantial number of people often quit or give when challenges and difficulties arise. However, it is necessary to note that the adversities and challenges are part and parcel of the entrepreneurship and career journey. It takes time and significant effort for a person to grow his career and set himself apart from other common people as an achiever. This applies to both entrepreneurship and in formal employment. In fact, it is notable that entrepreneurship requires plenty of determination given the fact that it has instability and uncertainty especially during the formative years of the business (Biais and Enrico 2008). The entrepreneur has to stay determined and focused towards achieving the goals of the business even when other people may be disoriented or disillusioned with it. In order to achieve my career plans, I intend to establish myself in terms of a formal career. I believe that a formal career in my profession will help me to gain substantial practical experience in my field. Nabi et al (2010) notes that there is often disconnect between what students learn in university and what they are expected to do in practical situations. In essence, formal employment will help me to hone my skills and help me to learn the requisite skills for solving actual customer needs. In order to rapidly gain experience, I plan to start off my professional career by engaging in an internship program in my field before I seek for an actual job. The internship program will help me to attain the necessary industry skills which will give me a competitive advantage during job hunting. Career development will also help me to obtain the necessary experience that will be instrumental in starting my own business. () indicates that entrepreneurs need some experience in order to innovative products that meet the actual and potential needs of the customers. Arguably, formal employment is an important source of practical experience since it offers the employee an opportunity to interact with customers directly. The direct interaction with customers will help me to gain insights into the problems facing customers and thus develop potential business ideas. I plan to engage in formal career for a period of five years after which I will move to the private sector. The five years in formal employment will help me to gain the necessary experience and savings to enable me to successfully start my entrepreneurship journey. My life goal in business is to become a successful entrepreneur. In regard to this goal, I have teamed up with two of my friends to start a business of selling hybrid electric vehicles. According to statistics, the price of oil has been increasing exponentially in the past decade and also greatly affected by political issues in oil producing countries (European Euromonitor 2009). This problem of increasing cost of fuel presents a business opportunity for us to market and sell hybrid electric vehicles that use electric batteries in conjunction with some amount of petrol thus helping the consumers to save money. Teece (2010) indicates that business ideas have to present potential customers with solid benefits in order ascertain their viability. One of the benefits of the Hybrid Electric Vehicles (HEVs) is that they make more efficient use of petrol. This means that the customers will make significant savings in terms of the costs of purchasing petrol. Also, HEVs produces far less toxic emissions than any standard gasoline vehicles. Thus, the HEVs will be environmentally friendly due to significant reduction in pollution. The price of the HEVs will also be considerably lower considering that they have numerous benefits as compared to gasoline vehicles. The target customers for the HEVs are people who drive for short distances within the streets of a given town. According to Djik et al, Hybrid Electric Vehicles are faced with the challenge of batteries that cannot keep substantial electric charge for long (2010). Thus, the vehicles are not suitable for long distances as the batteries may run out of charge. Our target market will therefore be taxis, bus companies and patrol cars. It is imperative to note market targeting is a critical element in business as the product has to be directed to the right market for business success (Kyrgidou and Mathew 2010). Also, the due to the price of the HEVs, we will lock out customers in the lower and middle income levels as they may be unable to afford to purchase the vehicle. Biais and Enrico (2008) indicate that the marketing mix of a business has to be strategically planned so as to enable the business to gain profitability and grow. In our business idea, the defining qualities of our product will be its quality, design and performance. The Hybrid Electric Vehicle will be presented as a technologically superior alternative to the traditional gasoline consuming motor vehicles. The price will be communicated to the potential customers through a price list. In order to penetrate the market easily, our business will offer discounts to the first buyers. In terms of place, the HEVs will be distributed nationally through vehicle dealers. Chua et al (2010) indicates that vehicles are mostly sold through dealers and agents therefore it is imperative that the HEVs will adopt the same model. We will also sale on the internet by launching a dedicated website. The rapid rise in the usage of social media also offers us the opportunity to reach potential customers. As noted by Barringer (2010), entrepreneurs have to adopt guerilla marketing tactics due to the fact they operate on low marketing budgets. In this regard, social media and the internet will help our company to make marketing foray in an affordable manner. The promotion of the product will also be done through strategic alliances with taxi companies and even police precincts in order` to establish our brand image. This will help our brand to gain recognition and hence increase our sales. According to our business model, our key business partners will be domestic corporate companies and the local government. It is essential to identify business partners in order to streamline the operations of a new enterprise (Yeow 2007). The domestic corporate companies will offer our company with selling places, human resource pool and social reputation. In order to stay in line with government policies, our company will liaise with the local government. Since we will be assembling the Hybrid Electric Vehicles locally, it is imperative that we will outsource the production of some components. The component supplier of our company will be from China since the products from this country cheaper and of good quality. Our engines will be supplied from Japan since the country has highly advanced industries. Costs are inevitable components of any business venture. Raabe et al (2007) points out that new companies have minimize their operating costs to the lowest level that cannot compromise efficient operations. Entrepreneurs have to ‘bootstrap’, a practice of operating under the barest conditions so as to channel to little financial resources at their disposal to other important aspects of the business (Smith and Charles 2012). The key costs of our business include employees’ salaries, rents, utilities and raw materials. We will endeavor to minimize the expenses associated non essential items and facilities. However, the company will utilize some of the available funds for marketing and advertising albeit through cheaper and creative means such as the internet and strategic alliances. Value proposition is an important aspect of marketing new products to actual or potential customers. Clarke and Robin (2010) point out that mature entrepreneur have to embrace the fact that customers look for value in the products that they purchase. In this regard, our team of three has crystallized the value proposition of the HEVs as vehicles that save money, reduce environmental pollution and reduce fuel consumption. These factors will offer our present customers and potential clients a realistic manifestation of how our products will help them. I intend to convince my team to formally register our company. After the registration of the company, I will marshal the available resources in order to raise capital for our business. We` will explore various ways to raise money for starting the business such through obtaining a bank loan or using personal savings. We intend to roll out our production within one year of staring our business. Theoretical and practical thinking on entrepreneurship: a review of literature According to Rae (2007) and entrepreneur can be defined as “the person who acts in an enterprising way, and who identifies or creates and acts on an opportunity, for example by staring a new business” (p. 3). Robison (2010) indicates that an entrepreneur is a person who takes action to solve problems in the society for a financial gain. This definition was expanded by Rigg and Bredder (2012) to include social entrepreneurs who may not necessarily be profit oriented. It is imperative to note an entrepreneur is defined fundamentally by his or her ability to recognize an opportunity. Entrepreneurs differ from other people in that they are able to seek creative ways of meeting the pertinent needs of customers using new and available resources. According to Nabi et al (2010), entrepreneurship opportunities are those opportunities in which an enterprising person can be able to produce a new service or product that serves the needs of customers and can be sold at a profit. Basically, opportunities arise when a person can be able to recombine existing and new means to create products or services a relatively higher costs when compared to that of the production. As noted, the potential for profitability is not necessarily the main factor that defines an entrepreneurial opportunity. Yitshaki and Fredric (2011) point out that according to social entrepreneurs, opportunity can be defined as any situation that can be harnessed to create positive change in the society or community. Despite the apparent differences in the definition of opportunity, it is evident that whichever the definition, an opportunity should be able to create a positive impact whether in terms of profit or just change in the society. It is evident that opportunity is one of the critical cornerstones of entrepreneurship. An opportunity may exist in the present or even later on (Rae, Simmon and Moon 2010). One of the types of opportunities is the creation of a more effective business process or model. The discovery of such an opportunity is dependent on the ability of an entrepreneur to think creatively and innovatively in order to come up with new ideas. Also, a gap as noted in the current market might infact offer an entrepreneur a business opportunity. For example, the advent of digital cameras was precipitated by the need by consumers to see the photographs instantly. It is notable that opportunities should point to a clear need that can be met in order to be considered as a potential business idea (Blenker et al 2012). Opportunities should also be realistic and achievable so as to make impact in the society. Rae (2007) emphasizes that opportunities are at the center of entrepreneurial venture since it lays the foundations upon which any entrepreneurial venture can operate. The entrepreneurial spirit can be nurtured in any individual depending on his or her characters. According to research, people are not born entrepreneurs but rather nurtured to become entrepreneurs (Biais and Enrico 2008). This indicates that entrepreneurship can be practiced by any person and it is not a genetic pedagogue. However, entrepreneurs world over have some similar characteristics including determination, a knack for adventure, focus, ingenuity among others (Biais and Enrico 2008). Suffice to say, entrepreneurship is a challenging and difficulty undertaking and this qualities are essential to enable one to succeed despite the odds. In any case, part of the reason why very few people succeed in entrepreneurship is due to the immense challenges involved. Kyrgidou and Mathews (2010) indicate that one can nurture and entrepreneurial spirit by adopting the characteristics of successful entrepreneurs in the society. Due to the huge challenges involved, it is necessary for new and aspiring entrepreneurs should seek the assistance of mentors in order to gain insight and encouragement (Rigg and Bredda 2012). Practical entrepreneurship requires input from various experts in order to be successful. The importance of diligent planning and time management for entrepreneurs cannot be overstated (Smith & Charles 2012). It is necessary for entrepreneurs to make business plans and marketing plans to clearly indicate the course of action that the enterprise will take and the resources required to attain the goals of the enterprise. Planning also helps businesses to have written goals to guide the business towards a particular path. It is notable that plans and milestones help a business to evaluate its progress and make essential changes depending on the performance. Bibliography Barringer, B, 2010, ‘The Most Important Considerations for Starting Your Own Business: The Feasibility Study and Business Plan’ FT Press, New York Biais, B, and Enrico P, 2008, "Entrepreneurs and new ideas." The RAND Journal of Economics 39.4 (2008): 1105-1125. Bird, B, and West, P 2007, "Time and entrepreneurship." Entrepreneurship Theory and Practice 22 (2007). 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