Entrepreneurship Issues - Assignment Example

Running Head: ENTREPRENEURSHIP Entrepreneurship Insert Name Institution Date Question one Facebook is one of the examples of a socio-economic innovation. This is because it meets the social needs of the consumers and at the same time contributes to the growth of the economy. Question two The computer invention and internet can be considered to be a receptivity gamble. The invention of computer and internet was never known whether the consumers could find the technologies acceptable for use in any way. But over time, some consumers have accepted the knowledge based innovation while others are still rigid to the idea. Question three Innovation is like a task which needs to be done as per the specified regulations and with the right mix. It can not therefore be said that there can be a specified lead time for an innovation which is based on new knowledge. Various factors are to be put into consideration before one comes up with a certain lead time. Some of the factors that influence the lead time therefore include: consumer wants and preferences and creativity in invention. The way the new innovation meets the needs of the society also determines its lead time to success (Drucker, 2007). The current societal needs may include: climatic, demographic changes and security needs. The lead-time to success of an innovation can also be pegged to its way of reaction to competition, thus the faster its reaction the less the lead time to its success. The lead time to success can also be based on the acceptance from the society at large, it can therefore be said that the more acceptable a new knowledge based innovation is the less its lead time to success. Markets with high consumer confidence have a less lead time to success of a new innovation. An educated society is also a major factor to be considered in influencing the success of an innovation which is mainly based on new knowledge. The more educated a society is the less the lead time to success of the innovation. It is therefore essential for an innovator to base a new innovation in an informed market. The existence of barriers in most internal markets is another factor that lengthens the lead time of the success of a new innovation based on new knowledge. A conducive regulating environment is also a necessity for the success of a new innovation. The environment needs to be one that heartens and accommodates new inventions. Regulation systems can also be considered as a factor to success of a new venture. Where there is simple, effective, flexible and predictable regulation, it reduces the lead time to success of a new innovation. An innovation can also be a success within a short lead time if the entrepreneur carries out an exceptional research before embarking on the innovation. Research helps in boosting the acceptance of the new innovation and at the same time finding a market for the innovation. If the research is thus well done, the lead time to the success of the innovation is thus reduced. The other factors that contribute to the success lead-time include: expected and unexpected performance of a venture, consumer behavior, new knowledge and changes in perception and meaning. Question four. The saying is hyperbolically used to appraise new inventions and innovations. The sliced bread in this case is mainly used as a symbol of innovation. The sliced bread is therefore used to represent the other innovations that have come up over the years. Sliced bread brings out the factors that influence innovation. For instance the sliced bread was a solution to most households thus meeting the consumer needs. Though it was first met with opposition from the government, the fact that it met the consumer needs made it easier for acceptance of the new innovation. The saying can thus be seen as a promotion of innovations and ideas (Drucker, 2007). The sliced bread shows how innovation is mainly geared to solving a need or adds value and meaning to people’s lives. Question five When innovation gets referred to as being both perceptual and conceptual means that before an invention comes to being there first must be an idea and the idea must be put into practical use so as to come up with an innovation. Innovation is therefore made of both the abstract and concrete ideas which are applied in meeting needs of consumers or the society at large. Innovations are therefore driven by ideas. Innovation is mainly made up by purpose and hard work that is systematic. The conceptual and perceptual aspect of innovation comes from the use of senses, for instance one needs to be out there to find out what innovation can be of use to the society. One therefore needs to listen, see and feel the idea of innovation. Innovators thus look at numbers and how the innovation will make a difference or be of use in their lives. For instance the innovation of sliced bread came from the fact that non-sliced bread was hard to manage; hard to chop all those pieces , then the innovator who must have been part of the consumer niche found the solution to the problem by baking ready sliced bread. The conceptual part of innovation also involves the analysis of the opportunity to find out whether people will have interest in the innovation. The perceptual idea implies that an innovator needs to be ready to learn from the aimed market. Innovation should thereby be focused and driven by the market. Innovation in this case is considered to be investigative; it looks for problems and then finds the solutions to the problems. Innovation works at adding value and enhancing the current state of its market. Question six Innovation mainly deals coming up with a latest and enhanced way of doing things. Any successful innovation or venture starts small. The principle of starting small gives the innovator space to make changes to the innovation case there is need. The starting small gives the innovator to research the market in cases where the innovation does not meet all the consumer needs. This thereby helps the innovator to adjust in meeting the needs that have not been met thus helping promote the good or service. Starting small also boosts effectiveness and efficiency. It is necessary to start small for the purpose of analysis of the market; this also helps in cutting down unnecessary costs in the initial stages. It can also be concluded that every successful venture starts small. Starting small has the advantage of leaving space for growth; every success must accommodate space for growth else it will be stagnant. Starting small may also be perceived as not only solving small issues but also as doing a combination of small things at the same time with an aim of coming up with an enhanced innovation. Starting small should not be seen as just doing small things but also it should be considered to be the effort of striving specific needs. An innovation should therefore lack ambiguity and be specific as to what needs it aims to meet else it becomes meaningless to the community. Question seven Aiming at leadership is another important principle in innovation. Entrepreneurship and innovation are companion terms. Entrepreneurship entails looking for the most current innovation and making something out of it. Leadership mainly entails market dominance (Drucker, 2007). If an innovation is not aimed at being the best in the market then it might be hard for it to be a success. An entrepreneur undertaking any venture should therefore focus on improving the service or good offered so as to claim the top rank of the market. It is necessary for the innovator to cut a niche of the market for himself this is so as to have the power to deal with the competition of the market. Most of the time the leaders of a market or venture are normally not hit by competition; this is because they always strive to be ahead of competition. Aiming at leadership also helps the innovator to be in a position of noticing new opportunities. For one to be in the position of leadership he or she needs to be dynamic and make out already occurred changes in demographic, values or in technology in terms of the venture. Being a leader also involves changing the services and products so as to keep up with the fast changing markets. Question eight Wesley Hyatt’s roller bearing can be used as one of the justified example of a successful innovation. Hyatt’s innovation of roller bearing did not successfully work for him, this was because of his attitude that the bearings were only meant for railroads. Sloan buys the enterprise from Hyatt and broadens his vision on the product, the roller bearing end up fitting in Sloan’s idea of the automobile. Sloan’s business thus flourishes. It can thus be said that successful business are based on flexibility and adaptation to changing markets. In this case if Hyatt could not have been too rigid his innovation could have been a success since it could have been right for the new need in the market (Drucker, 2007). Innovation is also based on the analysis of the market so as to ascertain the need in the market. In this case Sloan researches the market and finds the upcoming need for the roller bearing. This is the part where the conceptual and perceptual principle applies. If Hyatt had tactically applied the principle then his venture could have been a success. Innovation can thus be considered to be a dynamic process in that an idea or an invention should keep up with the fast changing societal needs. It can also be said that for success in any innovation or venture one needs to have adequate knowledge on what he or she is undertaking. For instance in this case, Sloan comes into the venture with a high level of knowledge on the functionality of the roller bearing thus making the venture easier to pursue. The issue of management was an issue for Hyatt thus leading to the fall of his innovation. It is therefore necessary for any upcoming entrepreneur to consider acquiring knowledge on the cash flow of the venture because this determines the existence of the venture. Question nine An existing venture with so many levels can stifle entrepreneurship structures. Rigid regulatory systems can also suppress entrepreneurship organization structures. This is because the more rigid it is the harder it will be for new ventures to enter the market. Adaptation and dynamism of a venture is also a determinant of the stifle on the organization structures, this is because if they are not adapting and dynamic then it will be hard to accept change and innovation. A new innovation can also stifle the structures of an enterprise. Question ten A current existing business can be considered to be an incubator environment that can encourage entrepreneurship. This is by virtue of the fact that innovation thrives from enhancement to the existing venture. The public service can also be considered to be an incubator environment by the fact that it is through that consumer needs are known and thereby inventions are created to meet the needs. New venture can also be considered to be an incubation environment by the fact that it will attract more new inventions and modification on it thus encouraging entrepreneurship. Question eleven Education is one of the most vital policies in promoting entrepreneurship. This by the fact that without education there can not be innovation and information is what defines entrepreneurship. Entrepreneurship is brought about by the ability of people to think and invent new ideas into practical business ventures. Education is therefore necessary in imparting desirable knowledge for the purpose of entrepreneurship growth. It is through education that society is measured on its level to come up with ideas and put them into use. It is also through the same education that one becomes knowledgeable to handle issues that deal with management of a venture. Enhancement of the regulation environment is also one of the policies that can boost entrepreneurship. This is by the fact that there will be in place regulations that act in favor of business ventures. The policy will consider the enacting of a regulatory system that is flexible and accommodative to the needs of the entrepreneurs. For the part of regulation systems, they should work at reducing other costs; administrative costs which are sometimes tedious and may be unnecessary. Boosting of innovation and research through financial funding is also a policy that can improve entrepreneurship. This is by the fact that the financial boost will attract entrepreneurs who have the ideas but ck the funds. The funds can be used by the existing entrepreneurs who wish to expand their ventures. Research is the core contributor to the development of innovation, so for the existence of successful enterprises it is necessary to have in place quality research facilities. The research works at reducing high rate of unexpected failures and promotes more entry into the entrepreneurship cluster. The other policy is the encouragement of collaboration among stakeholders. This will mainly involve the operation of the stakeholders in cluster form. The operation in cluster form will help in the promotion of competition in the various ventures. It also works at helping in making information readily available to the market by the fact that it closes the vacuum between research, business and resources. Question twelve Entrepreneurship is an important contributor to the economy of any economy. Entrepreneurship mainly contributes to the public service in a number of ways. Entrepreneurship is mainly focused on mainly making life better for the consumers by the use of innovation. Entrepreneurship aims at giving an enhanced product or service to the society. It is therefore necessary for the public service to adopt various policies that can boost entrepreneurship. Entrepreneurship acts as a house power for the force that drives economic growth and progress. Success in most of the markets is brought about by persistent entrepreneurs who develop innovative products and services. Entrepreneurs act as catalysts of an economy by the fact that they create an external network which promotes the development of new ideas and formation of new markets. Research shows that one third of the national rate of economic growth is accredited to the performance of entrepreneurship. It is through entrepreneurship that we hear of job creation thus creating an ease to the public. Entrepreneurship thus contributes to the larger international economy in a various ways. Based on the above reasons, it is therefore essential for the public service to consider enacting policies and practices that can promote entrepreneurship. Financial support may be among the policies that can promote entrepreneurship. This is applicable in the case where the government puts aside funds to support potential and performing entrepreneurship ventures. The aspect of financial support can also be dealt with by the promotion of local markets. This will involve imposing a tax free policy for raw materials needed in any local entrepreneurial venture. The other policy that can boost entrepreneurship is promotion of innovation; this can be done through the use of patents and copyrights. By promoting local innovations there will be job creation and a boost to entrepreneurship. Promotion of knowledge to the general public on issues such as businesses and their management can be a way of sensitizing the public into supporting entrepreneurship and the efforts of entrepreneurs. Another important strategy that can be of great use in promoting entrepreneurship is the enacting of regulating systems that are flexible, predictable and accommodating in terms of the needs of the entrepreneurs. Creation of a competitive market is also one of the practices that can promote entrepreneurship by virtue of improved products and service delivery. The aspect of creating conducive and attractive avenues for entrepreneurship to thrive should be considered; this is for the purpose of making more people to take up productive entrepreneurship ventures. The government should also look at putting up policies that cater for the needs of the local entrepreneur; this can include regulations that hinder dumping and any other factors that affect the local markets. Question thirteen A new venture will require the following policies and practices for the success of its management: Firstly it will be important to analyze the venture. This will mainly involve looking at all possible factors that are for and against the venture. The analysis also involves researching the market so as to get to understand the market competition and the consumer behavior. This requires the entrepreneur to have a clear market focus this will work in helping him to make a right judgment of the venture. The entrepreneur then needs to look at the cash flow of the venture. The success of a venture is not only measured by the profitability but by the state of its cash flow. The cash flow helps one to be in a position of determining the liquidity or the going concern of a venture. Looking at the cash flow may also involve having a financial foresight which may involve planning for capital wants and budgeting. For a new venture to achieve success it will need to have a professional management. This will work in promoting the growth of the new venture by the fact that it is knowledgeable in a number of ways. The professional management team should be made of top professionals from various fields. It is also important for any new venture to analyze its market so as to ascertain the enthusiasm of the people in involving themselves in the venture. If the people are not interested then it will be necessary to divert to something that can be of interest to them. For the purpose of being effective it will be necessary for the venture to be simple and plainly focused on meeting a specified need. It should also be noted that successful ventures usually start small. The venture should thus embark on starting small; a small market to focus on, a product or service that requires less funds to start and run and it should also spend minimal funds on production and marketing of the venture. With the increasing growth of the market the venture will be in a position of staying ahead of the fast competition. The little by little growth also helps the venture to be in a capacity of controlling its base and resources (Drucker, 2007). The venture should also aim at being the best in the market; offering the best product or service to its markets. Any successful venture has to aim at being at the top this is for the purpose of being in control of the competition and also having an upper hand to more opportunities. Hence for a venture to be a success it has to be a leader; cut a market niche for itself. Dominance therefore is a vital aspect in measuring or predicting the success of a venture. It will also be important to put into consideration the unexpected failures of the venture. This will help the entrepreneur to be prepared in case of failure or may be come up with a strategy to deal with the failure case it occurs. Looking at new knowledge in the line of operation is also vital because it helps the entrepreneur to be more creative and dynamic in coping with competition and upcoming changes in the market. Reference Drucker, P. F. (2007). Entrepreneurship and the SMEs. New York: Elsevier Group Plc. Read More