Entrepreneurship and Small Business Management - Literature review Example

Entrepreneurship and Small Business Management Name: Course: Tutor: Institution: Date: Introduction Increasing global market competition, and the maturation of a majority of the existing industry business models, has raised a need for entrepreneurship. In this case, the entrepreneurship revolution involves innovating, developing and managing new business ventures. In this regard, as Baron (2012, p.23) noted, unlike the small business ventures that seek to execute the existing business models to earn profits, entrepreneurial business ventures apply new models. In this case, entrepreneurs establish new models and approaches of doing things to increase efficiency as well as increase the supplied product value proposition to the consumers. This essay offers a personal evaluation and reflection of my skills as an entrepreneur. In this regard, the analysis focuses on my strengths and weaknesses as a future entrepreneur, thus serving as a self-evaluation tool to promote the development of a relevant self-improvement plan. The analysis is based on the key entrepreneurial success aspects, namely need for achievement, need for autonomy, risk-taking, creativity and internal locus control respectively. In the test results, attached to Appendix 1, I scored an 80% score. Need for Autonomy Marco (2010, p.713) argued that one of the fundamental trait and characteristics of a successful entrepreneur is the need to autonomy. In this case, a need to achieve is the desire to develop and attain new approaches and systems that do not exist. In this regard, a personal evaluation established strengths in the initiative development process. As such, I have a propensity for starting up new ventures and innovating as well as taking charge of new businesses on my own. In this regard, as Morales and Holtschlag (2013, p.272) stated, the ability and desire to develop new business ventures, and take charge of their operations is a key entrepreneurial strength relevance. Therefore, this indicates that I have the required organizational traits and qualities required to start up a business venture. In addition, the high need for achievement analysis illustrates that I am not comfortable working with other people, but instead prefers working on my projects. This is one of the fundamental traits that serve as push factors in entrepreneurship development. Therefore, this is a further indication that the factor is bound to push me into being and entrepreneur in the future. Nevertheless, the analysis establishes that I have poor interpersonal skills. In this case, although being an entrepreneur is a personal initiative that requires an individual effort to achieve, it requires cooperation. For instance, once an entrepreneurial business is established, there is the need to establish strategic relationships with the customers, suppliers, as well as employees in the venture. Therefore, these fundamental relationships as McIntosh, Luecke and Davis (2008, p.107) underscores, form the basis for the need of good interpersonal and interrelationship skills. As such, the analysis concludes that based on the analysis I have a weakness in poor interpersonal skills management. As such, I identify this as one of the areas I will seek to improve in the future as a means of increasing my probability for success as an entrepreneur. Need for Achievement Jain and Ali (2013, p.137) stated that an individual need for achievement is described as the extent and nature to which individuals are willing and ready to achieve. In this case, the components of a desire to achieve include resilience, and desire to try out new ideas. In this regard, it was based on this background that I analysed my desire to achieve. In this case, the analysis established that I am resilient. This is an indication that I am ready and willing to face challenges and difficulties in the process of realizing my objectives and set targets. In this regard, the realization implies that as Norton, William and Hale (2012, p.24) argued, I have the driving force and motivation to achieve my goals and objectives. Therefore, this is a key strength that I will strive to build on and develop in the future for increased entrepreneurial activity’s success. Nevertheless, the analysis establishes that I am inclined to adopt ideas that fit into my lifestyle. In this case, it implies that although I am ready and willing to develop and strive to attain goals, my scope is limited to my lifestyle and to issue and the factors I am used and accustomed to. In this regard, the analysis serves as both strength and weakness. On one hand, it is strength as it allows me to develop ideas and business structures in areas I am interested and accustomed to. Therefore, this will guarantee reduced management challenges in the venture process execution. However, the limitation of the scope is a disadvantage. In this case, it implies that I would not be willing and ready to pursue business innovative ideas that are beyond my current lifestyle, limiting my desire to achieve in the entrepreneurial world/ As such, based on the analysis, I have developed an individual initiative to develop and engage in wider activities to diversify my lifestyle scope in the future, for increased business management confidence in the future. Creativity Tendency Audretsch and Belitski (2013, p.823) described creativity as the main basis for entrepreneurial development. In this regard, all entrepreneurs have to possess differing forms and levels of creativity. In this case, the level and nature of creativity vary between the various forms of entrepreneurs. Based on this understanding, a personal test evaluation of creativity illustrates that I am highly creative and innovative. On one hand, the analysis establishes that I have the ability to express my feelings, emotions and mind through an artistic representation. As such, this is the key basis through which to develop new products and ideas in the market by successfully transferring ideas into arguable contents to share with others. In this regard, Daniel, Wennberg and Berglund (2008, p.312) argued that although a majority of the people are creative and highly innovative, many lack the ability to transfer the ideas to perceivable real objects in the market. Thus, the author argued that the difference between the two types of people leads to the emergence of successful entrepreneurs in the market and those who are not. Therefore, I establish that I have strength in my artistic feelings representation. In addition, I realized that I have a good imaginative mind. As such, I can think things in abstract and consequently relate such abstract phenomenon to the existing market gaps and challenges. As such, the creative tendency analysis demonstrates that I have and possess a high propensity for being an entrepreneur in the future. However, the analysis argued that there is a weak link between my creativity and ability to set up a new business in the market. In this case, the analysis establishes that although I am reactive, I lack the skills and the drive to start and manage a new venture successfully. Hence, this analysis leads to my conclusion that I have the potential to emerge as an intrapreneur. In this case, as Burstein (2013, P.72) described, this form of entrepreneurs are within already established organisations, but play a vital role in initiating and managing change, process in such organisations through new product development, as well as new value propositions identification for the consumers. Risk Taking The concept of risk taking is a fundamental component in business management and success. In this regard, the concept allows for the undertaking of risky but potentially profitable business endeavours and ideas. Hoque, Mamun and Abdullah Mohammad (2014, p.128) stated that the nature and extent of an individual risk taking is dependent on other external factors such as their culture, which the Hofstede culture theory established to have different risk taking potentials across cultures. On the other hand, an individual profession, past experiences and other family background relationships. Therefore, based on this analysis Ratten (2011, p.62) argued that although many entrepreneurs are born with the inherent skills for developing new and innovative ideas, others similar to leaders are developed. Based on the understanding, an evaluation of my personal risk taking probability levels established that I have a preference for less risky ideas. In this case, the analysis affirmed that I was inclined to business ideas with a less risk value and thus with reduced uncertainty. Therefore, I am currently inclined to adopt business ideas whose returns and likelihood for success is guaranteed or at least viable for a large percentage. This is a major weakness in the development of new entrepreneurial ideas and ventures involves the process of risk taking and trying out what others have failed or feared to try out. In this case, daring and risk taking cultures from traditional entrepreneurs such as Steve Jobs at Apple Inc. Success was especially due to their trying out new adventurous but risky business ideas. Nevertheless, the analysis established that I would be willing to take risks in partnerships rather than individually. This indicates that in the long run period I can increase my ability and willingness to take business and ideas development risks by working in teams. As such, this analysis and the existing interrelationship skills challenge motivated my decision to join and engage in social activities as well as in the existing teams and groups in the institution. In this regard, as Ja Sebora and Theerapatvong (2010, p.337) asserted, I hope that with my increased participation in teams, I will improve my interpersonal skills allowing for potential future relationships development and retention with market stakeholders. Internal Locus Control The ability to take control and take advantage of the existing situation and conditions is one of the fundamental features of an entrepreneur. In this case, Schjoedt and Shaver (2012, p.716) stated that through increased internal locus control individual attain an increased control over their entrepreneurial skills increasing their potential to be successful entrepreneurs. Therefore, the authors stated that a key definitive characteristic of a successful entrepreneur is their ability to take advantage of existing situations. ‘ In this regard, a personal evaluation of internal locus control established that I am highly opportunistic. As such, in the event that there exists a market gap and I have the ability and knowledge to meet the gap in demand in the future, I am likely to seize the opportunity and consequently start up an entrepreneurial venture to meet the demand. Johnston (2000, p.226) argued that opportunists are more likely to succeed in business than peers who are less opportunistic. In this case, the opportunism trait allows such entrepreneur identity and recognizes market demand changes well in advance. In this case, the population is characterised by the analysis of trends in an environment to understand changing factors, as well as the future implications of such factors. Therefore, unlike a majority who act reactively to changes in the market and society at large, opportunists’ act proactively in developing systems and products to cover the expected market gaps. In addition, the analysis established that I am self-determined and proactive. In this regard, these are consequential traits and characteristics following my being an opportunist. In this regard, being proactive implies that I seek to develop and analyse issues not based on their present form but based on their future forms, changes and implications. As such, Nilsson (2012, p.43) argued that proactive individuals are good at developing a knowledge base through which they rely in their decision-making process. Based on an evaluation of my internal locus control analysis, it is evident that I have traits that are likely to enhance my future entrepreneurial development and success. Conclusion In summary, this essay offers an individual reflection of my personality traits as a potential entrepreneur in the future. In this case, an overall evaluation of my traits based on the five key scale parameters establishes that I have the potential to be a successful entrepreneur in the future. On one hand, an autonomy desire establishes that I am naturally autonomous and prefer leading rather than taking orders. On the other hand, achievements desire analysis reveals my desire to achieve challenging goals. Moreover, a creativity analysis establishes that I am creative as well as an internal locus control that reveals my self-determination and opportunism. However, the analysis establishes my minimal willingness to take risks which I a major weakness. As such, it forms a basis through which I will improve my risk taking ability and desire in the future. References Audretsch, D.B. & Belitski, M. 2013, "The missing pillar: the creativity theory of knowledge spillover entrepreneurship", Small Business Economics, vol. 41, no. 4, pp. 819-836. Baron, R. A., 2012, Entrepreneurship: An evidence-based guide, Edward Elgar, Cheltenham. Burstein, D. D., 2013, Fast future: How the millennial generation is shaping our world, Beacon Press, Boston. Daniel, Y.H., Wennberg, K. & Berglund, H. 2008, "Creativity in entrepreneurship education", Journal of Small Business and Enterprise Development, vol. 15, no. 2, pp. 304-320. Hoque, N., Mamun, A. & Abdullah Mohammad, A.M. 2014, "Dynamics and traits of entrepreneurship: an Islamic approach", World Journal of Entrepreneurship, Management and Sustainable Development, vol. 10, no. 2, pp. 128-142. Jain, R. & Ali, S.W. 2013, "A Review of Facilitators, Barriers and Gateways to Entrepreneurship: Directions for Future Research", South Asian Journal of Management, vol. 20, no. 3, pp. 122-163. Johnston, V. R., 2000, Entrepreneurial management and public policy, Nova Science Publishers, Huntingdon, NY. Marco, .G. 2010, "Autonomy as the guiding aim of entrepreneurship education", Education & Training, vol. 52, no. 8, pp. 710-721. McIntosh, P., Luecke, R., Davis, J. H., 2008, Interpersonal communication skills in the workplace, American Management Association, New York. Morales, C.E. & Holtschlag, C. 2013, "Post materialist values and entrepreneurship: a multilevel approach", International Journal of Entrepreneurial Behaviour & Research, vol. 19, no. 3, pp. 266-282. Nilsson, T. 2012, "Entrepreneurship Education - Does It Matter?", International Journal of Business and Management, vol. 7, no. 13, pp. 40-48. Norton, I, Jr & Hale, D. 2012, "Team Charters and Systematic Search: A Prescription for Corporate Entrepreneurship", Journal of Applied Management and Entrepreneurship, vol. 17, no. 1, pp. 19-36. Ratten, V. 2011, "Sport-based entrepreneurship: towards a new theory of entrepreneurship and sport management", International Entrepreneurship and Management Journal, vol. 7, no. 1, pp. 57-69 Schjoedt, L. & Shaver, K.G. 2012, "Development and validation of a locus of control scale for the entrepreneurship domain", Small Business Economics, vol. 39, no. 3, pp. 713-726. Sebora, T.C. & Theerapatvong, T. 2010, "Corporate entrepreneurship: a test of external and internal influences on managers' idea generation, risk taking, and proactiveness", International Entrepreneurship and Management Journal, vol. 6, no. 3, pp. 331-350. Appendix 1: GET2TEST Summary Read More