Basic Entrepreneur Skills - Essay Example

Entrepreneurship - Opportunity Recognition (Interview & Literature Review) Table of Contents Introduction 3 Assessing Certain Opportunities 3 Characteristics of Viable Opportunities 4 Opportunity as a Sustainable Option 5 Approaches That the Company Takes To Broaden Its Prospects 5 Assessing Theoretically or Empirically the Implementation of Opportunity 6 Conclusion 7 References 8 Introduction In the context of entrepreneurship along with the entrepreneurial procedure, the concept related to opportunity recognition is crucial relative to the fact that a major stage in any entrepreneurial venture creation method is the identification of the opportunity by the entrepreneur. In other words, opportunity recognition is generally considered as an activity which might take place before the creation of the enterprise and might also take place after its formation (Dyer et al 2008). The objective of the paper is to analyse the contents of the interview that has been conducted with the entrepreneur of Verista Singapore Pte Ltd, Mr. Ceylon Aw. The interview took place on 20th August 2012 at 3.00 pm at Verista Singapore Pte Ltd. The subsequent section of the paper will examine the linkages between Mr. Ceylon Aw, the entrepreneur interviewed and the literature review on opportunity recognition. Assessing Certain Opportunities It is well accepted fact that the notion of entrepreneurship looks to comprehend how the opportunities are recognised and exploited. According to the views of Kirzner (1973), it has been recognized that the theoretical and unbalanced nature related to opportunity assessment as well as identification restrains the firm from future growth. In the similar context, it has been noted that Mr. Ceylon Aw approved of the fact that the company has created empirical means for the purpose of evaluating certain opportunities and he further stated that the company shall always assess opportunities on the combination of experience, values and logical thinking. Thus, it is essential to identify if the interviewed entrepreneur possess knowledge and logical thinking capabilities or not. Mr. Ceylon Aw characteristics considerably match with the entrepreneurial trait school of thought. From the General Enterprise Tendency (GET) test, it has been observed that Mr. Aw has attained a score of 8 in need for achievement tendency which is below average score. He is most likely to possess result oriented qualities, self confidence and forward looking qualities to a certain extent which are likely to be beneficial for the company to expand its operations (Refer to Appendix II, Question 1). Characteristics of Viable Opportunities According to the views of Ardichvili et al (2003), the various characteristics of the viable opportunities are considered to be the entrepreneur’s personal characters, preceding knowledge regarding a particular venture and social networking. Duta and Crossan (2005) mention the fact that the tendency to develop new ventures from opportunities is viewed to be directly proportional to the organisational learning. However, the interview results have been slightly different from that of the theoretical perspective. Mr. Ceylon Aw stated that the characteristics of a viable opportunity would be the benefits of the opportunity to the company, benefits to the employees and finally the customers. He mentioned that profit and loss account is not the factor that he would desire to consider. He seems to focus upon the social and cultural school of thoughts by concentrating upon the factors shaping his behaviour. According to the scores of GET test, it has been found that Mr. Ceylon Aw scored 5 in terms of independent achievement which is below average score. For Mr. Aw to develop a viable opportunity it becomes essential to be self-confident and to equate results with efforts (Refer to Appendix II, Question 2). Opportunity as a Sustainable Option Entrepreneurship needs sense of creativity as well as dedication related to a particular idea and there are innumerable risks for each reward. Furthermore, an opportunity would be considered as a sustainable option if the entrepreneur possesses strong sense of passion, determination as well as enthusiasm. According to Patzelt and Shepherd (2010), it is significant for the enterprises to develop ways so that they can ensure the same or higher level of input for the future of the companies. Mr. Ceylon Aw stated that a good entrepreneur must have the capability to sell anything. His views seem to be consistent with the strategic formulation school of thought as he focuses upon planning. From the GET test scores, it has been observed that Mr. Ceylon Aw scores 3 in terms of proactivity which is below average score. Hence, it is significant for the entrepreneur to improve his proactive skills by a considerable extent (Refer to Appendix II, Question 3). Approaches That the Company Takes To Broaden Its Prospects Mr. Ceylon Aw stated the fact that his friend offered him the opportunity to take all the 30 employees that he cut off. Mr. Ceylon Aw took this as an opportunity to initiate a project and took all the employees. The viewpoints of Mr. Ceylon Aw are consistent with the venture opportunity school of thought which emphasises upon making use of the right idea in the right time in the right market. According to Dimov (2011), there are generally three domains for the empirical study of opportunities such as opportunity as happening, opportunity in actions and opportunity in market structures. It has been observed that Mr. Ceylon Aw obtained a score of 7 in terms of calculated risks which is below average. Hence, the entrepreneur might not be likely to evaluate the probable benefits against likely costs. It is imperative to improve in these aspects to ensure sustainable business growth (Refer to Appendix II, Question 4). Assessing Theoretically or Empirically the Implementation of Opportunity Mr. Ceylon Aw stated that he would evaluate the likely benefits that he can obtain and the possible impacts. His thought is in agreement with the displacement school of thought since the internal factors are preventing him from doing certain activities. Park (2005) on the other hand reveals the fact that it is significant to capture the market behaviour for assisting in the successful identification and implementation of the opportunities. The entrepreneur must possess creative tendency in this regard. It has been noted that Mr. Ceylon Aw scores below average score of 6 in terms of creative tendency. Hence, he needs to improve in this aspect to become more imaginative and innovative (Refer to Appendix II, Question 5). Conclusion The results of the interview reveal the fact that the entrepreneur, Mr. Ceylon Aw is an average performing entrepreneur. However, it can be mentioned that Mr. Ceylon Aw can be referred as an entrepreneur. The main reasons behind this fact are that he has been capable of contributing to the economy of the nation by creating job opportunities for 30 employees, which is one of the key attributes or contributions which an entrepreneur makes in the society. Business opportunities are generally a manifestation of the entrepreneur’s internal disposition to begin changes in the economy. An entrepreneur needs to be an innovator creating new opportunities for the economy. However, Mr. Ceylon Aw has been found to score quite less in terms of drive and determination which is one of the most essential characteristics of the entrepreneur. Hence, Mr. Ceylon Aw needs to develop in this regard to become a better entrepreneur. References Ardichvili, A., Cardozo, R, and Sourav Ray. 2003. “A Theory of Entrepreneurial Opportunity Identification and Development.” Journal of Business Venturing 18 (1): 105-123. doi:10.1016/S0883-9026(01)00068-4. Dyer, Jeffrey, H., Hal, B, Gregersen and Clayton Christensen. 2008. “Entrepreneur Behaviors, Opportunity Recognition, and the Origins of Innovative Ventures”. Entrepreneurship Journal 2: 317-338. doi: 10.1002/sej.59. Dimov, Dimo. 2011. “Grappling with the Unbearable Elusiveness of Entrepreneurial Opportunities.” Entrepreneurship Theory and Practice 35 (1): 57-81. doi:10.1111/j.1540-6520.2010.00423.x. Duta, Dev K. and Mary Crossan. 2005. “The Nature of Entrepreneurial Opportunities: Understanding the Process Using the 4l Organizational Framework.” Entrepreneurship Theory and Practice 29(4): 425-449. doi: 10.1111/j.1540-6520.2005.00092.x. Kirzner, I. M. 1973. “Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach”. Journal of Economic Literature 35(1): 60–85. http://www.jstor.org/discover/10.2307/2729693?uid=2129&uid=2&uid=70&uid=4&sid=21101209896987 Patzelt, Holger and Dean Shepherd. 2010. “Recognising Opportunities for Sustainable Development.” Entrepreneurship Theory and Practice 35 (4): 631-652. doi:10.1111/j.1540-6520.2010.00386.x. Park, John S. 2005. “Opportunity Recognition and Product Innovation in Entrepreneurial High-Tech Start-ups: A New Perspective and Supporting Case Study.” Technovation 25 (1): 739-752. doi:10.1016/j.technovation.2004.01.006. Read More