Entrepreneurship - Essay Example

Entrepreneurship Affiliation Introduction Since its inception, the concept of entrepreneurship has evolved and shown considerable changes all along. Essentially, different people have had distinct ways of defining this concept. Economists refers to entrepreneurs as people whose focus is on starting up a venture, with close utilization of an innovation, while at the same time taking considerable amount of risks. Even economists such as Joseph Schumpeter has done intensive researches in establishing the factors behind an entrepreneurs drive for success, creation of new goods, innovation and risk analysis.

The evolving nature of business in the world, with the ushering in of the globalization concept is an ingredient that demands the rise of more entrepreneurs. Other factors contributing to the emergence of entrepreneurs include culture and governmental policies. The function of this task is to dig out into the traits an entrepreneur should be in possession of in a bid to register success in the business field. Furthermore, it will analyze different components of which he must demonstrate awareness in, for guaranteed and assured success.

The scan will remain a vital tool in provision of insight on the entrepreneurship journey to aspiring entrepreneurs. Characteristics of entrepreneur The competence theory is detrimental in the discussion. It asserts that every person has an area in which he or she fairs best and performs in an excellent manner. Such body of skills, attitude, desires, and motivation builds up the intrinsic urge to start up a business. Motivation entails having a deep desire to achieve something. The inner drive pushes somebody to making a firm decision to start up a business, yet foreseeing all the risks that come along with such ideologies.

Every party has the reason and motive for coming up with a business. Such factors are categorized as push factors. For instance, the desire to be an own boss or lack of a stable job can form such factors. Inner factors such as desire for autonomy, achievement, and power can make up the internal factors. Concisely, an entrepreneur must possess such traits which act as drives to coming up with a business. The Whole Brain Model is imperative in entrepreneurship description. It identifies four thinking dimensions of an entrepreneur.

Such thinking models provide a leeway to conception of gigantic ideologies likely to expand the business to the next level. First, they are the key to decision-making and choices establishment. An entrepreneur should possess a dominant thinking style, though he has to undergo the four stages of a manager, expert, salesman and pioneer (Sandberg & Bostrom, 2008). Furthermore, a successful entrepreneur must possess the right personality skills. He should arm himself with the “I can” attitude.

The Big Five Factor Model demonstrates clear illustrations of traits that drive to success their business goal. The model has been useful for a long time, and has proven reliable (Ashton & Lee, 2005). First, conscientiousness entails taking the right action based on one’s initial instincts. Secondly, altruism is critical as it makes one have a persistent orientation to personal experience and other people’s objectives. Most significantly, extraversion aspect assumes that the entrepreneur will focus all the energy and attention to the business.

Stability of emotions is the backbone to winning the competition war, as one will venture in with immense resistance to all forms of pressure and resistance. Finally, an entrepreneur should be ready to welcome any new experience and learning lessons (Teece, 2010). Establishment of a business comes along with other responsibilities. For instance, one will be required to employ a few individuals who will work along to actualize the dream. Therefore, personnel management skills come handy. Consequently, one has to understand and relate well with the employees, be a good leader in all instances, supervise, budget, and control all business activities.

Listening is the backbone of good performance, while interpersonal skills and conflict resolution strategies binds the teamwork which is such a great necessity. In overall, there is creation of a good climate for growth and business expansion, therefore bringing to satisfaction the entrepreneurial spirit. The entrepreneur must be rich in possession of futuristic skills. First, all the goals made must reflect that he is conscious the business is there to stay for a long time and impact to the society.

All the set goals must be realistic, time bound, achievable, measurable, and specific. Primarily, he should be in a position to measure performance and progress of the business. All such can be measured via the business proceeds, losses, and profits. Keeping such financial records is essential in projecting such progress. What to have before starting a business Creation of a viable business plan is the first step demonstrating the need to start up a business. It acts as a guidance tool, with its basic elements revealing the determination to succeed.

It is both a long-term and short-term goal-setting tool that attracts employees and other ventures that may desire to form an alliance or partnership. Elements such as products or services on hand, marketing plan, financial sources, operational plans, measures to combat competition and management strategies all act to bring a clear picture of the business. It reveals the envisioned desire, shaping it up to become a great opportunity (Mullins & Komisar, 2010). The ideology of having a business venture does captivate every person.

However, success does not just prevail in a single night. The process comes along with the initial decisions made by the entrepreneur. Most significantly, it is of utmost importance to plan prior to establishment of the same. Several components do affect the business to great extent, and therefore remains the cornerstone of its success. The idea in mind should rotates around the target client, and what would motivate him to purchase the products from the new firm. First, differentiation is critical.

It involves separation of the business products to an extent where they are unique in the market, hence beating up the competitors. Its importance is noted in the stability of the market prices, as there are minimal fluctuations due to the quality of the services and goods. Cost consideration is not the sole strategy in market entry, as large business possesses the advantages of cost lowering since they already have a stable market. Identification of a market niche is an outstanding attempt to ensure that the goods have a good market.

One has to perform an intensive market study, analyze the gaps present, and set the deal. Market gaps are brought up by diverse change sin population needs and ages, such as lifestyle, age groups, and enthusiasms. Above all, the concept of innovation defines the performance of the newly established business. Innovation should happen all through, from goods or service production to marketing, service delivery until they reach to the target customers. Creative imitation is a good concept to adopt for entrepreneurs in the developing nations.

An entrepreneur should be sensitive about the legal components. Legal aspects may relate to taxation levels, distribution of the sales, leasing processes, importation and exportation procedures. He must demonstrate familiarity with the contract law, application of patents and requirements to making claims in insurance firms. In overall, one must demonstrate understanding of all the legal issues surrounding business establishment. Conclusion The paper has analyzed in details all the entrepreneurial traits one should be in possession of, and other consideration made prior to coming up with any business.

What makes one a good entrepreneur can be summed up as creativity, dedication to serve, and consistent determination, flexible to the changing market needs, possession of a leader’s traits and passion to achieve the best. In addition, self-confidence helps in uncertain moments. Possession of such skills in great degrees is essential for success. Furthermore, the consideration of other factors such as legal, business plan, marketing plan and source of finance provides an opportunity to clear the success path.

References Ashton, M. C., & Lee, K. (2005). Honesty-Humility, the Big Five, and the Five-Factor Model. Journal of Personality, 73, 1321–1354. doi:10.1111/j.1467-6494.2005.00351.x Mullins, J., & Komisar, R. (2010). A business plan? Or a journey to plan B? MIT Sloan Management Review, 51, 1–6 (Achtung war exklusiv fürs Web nicht in der Pr. Sandberg, A., & Bostrom, N. (2008). Whole brain emulation: a roadmap. Technical Report (Vol. #2008–2003, p. Oxford, UK: Future of Humanity Institute, Oxford U). Teece, D. J. (2010). Business models, business strategy and innovation.

Long Range Planning, 43, 172–194. doi:10.1016/j.lrp.2009.07.003