Entrepreneurship Behaviour - Essay Example

Entrepreneurship Table of Contents Table of Contents 2 Introduction 3 Entrepreneurial Behaviour, Attitude and Skill Development 3 Entrepreneurial Life World 4 Entrepreneurial Values 5 Motivation to Entrepreneurship Career 5 Understanding of Processes of Business Entry and Tasks 6 Generic Entrepreneurship Competencies 7 Strategies Relating to Starting a Business 8 Managing Relationships 8 Conclusion 9 9 References 10 Introduction In this contemporary business world, innovation of new businesses or enterprises has become much easy. After gaining momentum of globalisation in the world economy, several new business enterprises have been trying to ensure their respective long-term sustainability. It is quite obvious that in order to establish a new business enterprise, there lays the requirement of establishing effective leadership qualities. In this regard, entrepreneurship is recognised to be a business process of taking initiatives to start a new business. One of the jobs of an entrepreneur is to develop a business plan by obtaining several relevant resources and handling the involved people in the same efficiently. In addition, an entrepreneur is primarily responsible for successful development as well as failure of any business. The field wherein the people conduct activities relating to entrepreneurship based operations is known as entrepreneurship ecosystem (Sharma & Chrisman, 1999). In relation to the above context, the intent of the essay is to describe about the notion of entrepreneurship with utmost focus on various significant aspects. These aspects generally entail entrepreneurial attitudinal behaviours, skill development and values among others. Entrepreneurial Behaviour, Attitude and Skill Development An entrepreneur is regarded as the main or key organiser of a company. It is strongly believed that without the help as well as the total involvement of an entrepreneur, the businesses could not be able to attain their respective targets. It is worth mentioning that an entrepreneur should possess several traits of a mogul in his or her behaviour. More specifically, it can be elaborated that an entrepreneur should remain confident while performing any activity. The presence of confidence within the nature of an entrepreneur is a behavioural trait of a successful businessman. Moreover, it is also reckoned as a hallmark for the entrepreneurs (Action COACH Business Coaching, 2014). Apart from the above stated attributes, an entrepreneur must bear positive attitudes during the entire tenure of the business process. These positive attitudes will certainly increase or improve in building the key skills of an entrepreneur. In terms of behaviour, attitude as well as skill development, an entrepreneur should have the focus over capturing the need for achievements, open-mindedness, vagueness, locus of control as well as risk taking tendency. An entrepreneur should have the flexibility in its behaviour, so it can address the changes made in external as well as internal business factors. More specifically, an entrepreneur is ought to bear unique identification in his or her overall behavioural approach (Boyd & Vozikis, 1994). Entrepreneurial Life World It is to be affirmed that an entrepreneur tends to possess a different lifestyle, which indicates development of any new aspect in his/her life. Specially mentioning, entrepreneurs often lead different life as compared to the employers of several companies. Apparently, certain differences could be found to get existed between the life of an entrepreneur as well as an employer. The role of entrepreneurship is essentially more risky in comparison with others who are involved in operating an existing business. In relation to the above context, an entrepreneur should have the quality of risk taking ability, which will helpful in achieving the success of business within due time (Sarasvathy & et. al.,1998). It can be apparently observed that an entrepreneur also possesses the ability to address risks that arise during the business process. On the other hand, the person or the employer should also get support of advanced prepared reserves, which will be used during the period of managing any sort of crisis situation. Another major difference can also be found considering the fact that an entrepreneur emphasises reducing the tendency of risks and more vitally controlling the outcomes of the same. Besides, it is essential that an entrepreneur should have the ability to frame several problems relating to the risk factors by taking into concern certain personal values. In contrast, the employers of any company only focus upon developing the sales or increasing the turnover of the company. Moreover, the employers also pay utmost attention on maximizing the outputs gained from the respective business operations (Keh & et. al., 2007). Entrepreneurial Values There exist certain values that are regarded to be the imperative features that highlight the process of key success of an entrepreneur. In this regard, the entrepreneurs should have key focus upon building the team effectively. The main objective of entrepreneurship in this context is to pay utmost attention on building core values as well as principles relating to leadership quality. More specifically, it is also elaborated that an entrepreneur should bear few values in the business process. These values could be ascertained as building team spirit, focusing on attracting the customers and defining the prime responsibilities of the overall business process. Moreover, apart from the aforesaid values, the entrepreneurs should also act as a good leader towards establishing a business as per the desired level (Dew & et. al., 2009.). Motivation to Entrepreneurship Career The aspect concerning motivation in the life of an entrepreneur is recognised to be a vital as well as the most influential factor for establishing a new projected business. In this regard, motivation is deemed to be the chief factor of decision-making procedure. It must be mentioned in this regard that people who regarded themselves as an expert linear of career motives are often taking few casual decision making logics in any particular situation. Thus, with this concern, a wide relationship could be found to be existed between career motives and effectual decision making logics (Gabrielsson & Politis, 2009). Understanding of Processes of Business Entry and Tasks An entrepreneur should bear the knowledge about the current market conditions wherein decisions will be mainly taken regarding how the respective businesses could be established efficiently. While entering into a new market, it is essential that a company holds a good knowledge regarding the prevailing market scenario. More specifically, it can be inferred that an entrepreneur should have the knowledge relating to the developments made in the respective market structure. After understanding the market structure, an entrepreneur should develop a business plan, which basically depicts how to conduct an entire business process efficiently. Thus, the initial stage of an entrepreneurship procedure lies in developing a business plan. In this regard, the entrepreneurs may face the challenges relating to identification of actual market structure (Dew & et. al., 2009). After preparing the business plan, the second stage of entrepreneurship is identified to be starting up the business process. In this stage, the entrepreneurs should have the focus on establishing a new customer base for the respective company. In this stage, an entrepreneur will get involved in designing an effective marketing plan. This marketing plan needs to be more effective in nature. By preparing an effective marketing plan, the respective company will be able to attract a major portion of potential customers (Sarasvathy, 2003). The third step or phase in an entrepreneurial context is identified to be growth. This particular stage indicates raising the revenue level by attracting huge figure of customers. In this regard, the respective company should focus upon mounting its product sales by producing demanding products. After the growth stage, the establishment is recognised to be an important for the company. In this stage, the entrepreneur should also emphasise establishing the new marketplace within the industry. After establishment, expansion is the next phase of the business lifecycle. It will be worth mentioning that expansion is much important for the growth of a company. Thus, in this context, an entrepreneur should pay focus on developing new products as well as services for expanding businesses into new business markets. It is worth mentioning that while attaining profits, the entrepreneurs may seek the opportunities for minimising excessive costs that are incurred while conducting different operational functions. The final stage of the business is identified to be the exit or winding up of the same. In this stage, it is the sole liability of an entrepreneur to decide about winding up the business (Wiltbank & et. al., 2009). Generic Entrepreneurship Competencies It is evident that a quality and a potential entrepreneur possess the knowledge relating to every aspects of business. One of the abilities of an entrepreneur is reckoned to be self confidence as well as risk taking skill. An entrepreneur should have the courage of managing several risks relating to the establishment of a new business. On the other hand, employers do not have the ability of controlling several risks solely similar to the entrepreneurs. Besides, the entrepreneurs are independent in nature, but the employers remain dependent over several people (Wiltbank & et. al., 2009). Strategies Relating to Starting a Business There are several factors of a business that play an imperative role towards the establishment of a new business successfully. Justifiably, during the initiation of a new business, an entrepreneur has to focus over several key factors that can be helpful for the development of the company. In order to establish along with operate the business process as per the long run basis, the entrepreneurs should have focus upon collecting money or acquiring finance from the different reliable sources. Apart from this, such entrepreneur must also pay utmost attention over identifying huge figures of uncertainties that relate to the business process. It will be worth mentioning that identification of market structure, capitals and other resources such as personnel are regarded as the prime elements of a successful business (Sarasvathy, 2003). Managing Relationships An entrepreneur should have the knowledge about managing relationships with several other factors that are deemed to be quite important for establishing a business and ensuring its long-term sustainability. More specifically, it is to be affirmed that an entrepreneur should have the capacity of maintaining good relationship with the stakeholders of the respective companies. In this regard, the factor of customer satisfaction is deemed to be much significant for securing the future of a new business. In this context, the entrepreneurs should emphasise building better association amid the customers as well as other stakeholders. Similarly, the suppliers as well as the employees of any are also recognised to be a vital part of business growth. In this regard, forming effective communication amid the respective potential customers is deemed to be essential (Sarasvathy, 2003). Conclusion From the above analysis and discussion, it can be ascertained that a successful entrepreneur must possess numerous positive qualities that can be helpful in developing a business efficiently. In this regard, the study has pointed out certain positive as well as significant qualities that must possess by an entrepreneur. It was also observed that an entrepreneur possesses a very different life journey as compared to employers of an organisation, which can aid in developing the behaviours of an entrepreneur. In conclusion, it can be affirmed that an entrepreneur is mainly responsible for ensuring the success as well as the failure of a business. References Action COACH Business Coaching, 2014. 12 Essential Characteristics of an Entrepreneur. Whitepaper Franchise, pp. 1-9. Boyd, N. G. & Vozikis, G. S., 1994. The Influence of Self-Efficacy on the Development of Entrepreneurial Intentions and Actions. Entrepreneurship Theory and Practice, pp.63-77. Dew, N. & et. al., 2009. Effectual Versus Predictive Logics in Entrepreneurial Decision-Making: Differences between Experts And Novices. Journal of Business Venturing, Vol. 24, pp. 287-309. Fitzsimmons, J. R. & Douglas, E. J., 2005. Entrepreneurial Attitudes and Entrepreneurial Intentions: A Cross-Cultural Study of Potential Entrepreneurs in India, China, Thailand and Australsia. Babson-Kauffman Entrepreneurial Research Conference, pp. 1-19. Gabrielsson, J. & Politis, D., 2011. Career Motives and Entrepreneurial Decision-Making: Examining Preferences for Causal and Effectual Logics in the Early Stage of New Ventures. Small Business Economics, Vol. 36, Iss.3, pp. 281-298. Keh, H. T. & et. al., 2007. The Effects of Entrepreneurial Orientation and Marketing Information on the Performance of SMEs. Journal of Business Venturing, Vol.22, pp. 592–611. Sarasvathy, D. K. & et. al., 1998. Perceiving and Managing Business Risks: Differences Between Entrepreneurs And Bankers. Journal of Economic Behaviour & Organisation, Vol. 33, pp.207-225. Sarasvathy, S. D., 2003. Entrepreneurship as a Science of the Artificial. Journal of Economic Psychology, Vol. 24, pp. 203-220. Sharma. P. & Chrisman, J. J., 1999. Toward a Reconciliation of the Definitional Issues in the Field of Corporate Entrepreneurship. Entrepreneurship Theory and Practice, pp. 11-27. Wiltbank, R. & et. al., 2009. Prediction and Control under Uncertainty: Outcomes in Angel Investing. Journal of Business Venturing, Vol. 24, Iss.2, pp. 116-133. Read More