The Nature of Entrepreneurship and its Role in Business - Coursework Example

The nature of entrepreneurship and its role in business The success of a firm is mainly due to numerous attributes, but the greatest factor contributing to entrepreneurial success is the entrepreneur himself. They play a key role in business success since, an entrepreneur believes strongly in himself as well as thy stay firm when business setback falls on them as well as they remain decisive in changing business risk into business opportunities (Elizabeth Chell, 2014). Entrepreneurship therefore must build a founding team with contemporary expertise. Self-skills through self-assessment is consequently of paramount significance. Nevertheless, truthfulness, obedience, as well as knowledge of individual behavior in relation to one’s traits. An understanding of entrepreneurial behavior including approaches to teamwork, communication, creativity, innovation, risk An effective entrepreneur should pose the following skills and attributes Technical skills; they are essential skill necessary to produce business product and service. Managerial skill; this skills are significant to the daily administration of the enterprise Entrepreneurial skills; they entails appreciating economic chances as well as acting efficiently on them, Personal maturity skills; they are individual awareness, responsibility as well as innovative skills. IN appraising entrepreneurial skills, the follow significant element must consider The capability to recognize as well as exploit business opportunity The innovativeness of the individual effort to develop business Willingness to assume business risk Competence to control the required resource to act in response to the business opportunity. An entrepreneur must poses an effective communication skills as well as encouraging wider participation in decision making by way of having an effective teamwork as well as being creative and innovative. Combining all this attributes will hence make an entrepreneur a risk taker hence a successful in the business. The important elements in formulating and evaluating an entrepreneurial business plan for a start-up organization By planning on some consideration on a probable business venture onto a business plan, one might start the process of creating a successful firm. A business plan covers what an entrepreneur plans to do and how it will be done. The progression of developing what is entailed coming with an idea to reality commands dealing with why, what who how and where of the venture. An ideal business pan will therefore consider the following element Business description—what one intends to execute, why he or she is starting the business venture. Market analysis—who will be targeted clients, what do they need from the business. Competitor assessment—who will the firm compete against, what do these rival offer. Marketing plan—how will one reach your customers. Mission statement Having a clear intent creates a meaning to the users of the business plan (Alain Fayolle, 2006). A mission statement is therefore documented to outline the reasons as well as motivation and thus a mission statement communicates the reason as well as the principles of what to do and why it is being done. An ideal mission statemtn must precisely expound why an entrepreneur venture exist as well as what hopes to attain in the real business world. Product and service The users of the business plan will need to comprehend the enterprise product and services being offered. This is clearly explained in the market analysis segment where the locality of the business, its product as well as the industry in which the business is in order to ensure that users of the business plan clearly comprehend the existence of the business and the product as well as. The competitor analysis must as well as be included in this segment and consequently, the competitor is defined and then profiling them, one must appraise competitors with critical view of their strength and weakness in relation to individual. It is significant to comprehend competitor’s business operation in order to make sure that understand how to stand in relative terms. Operating plan The operating proportion of the plan focuses purposely with the internal structure of the firm, its operation, as well as equipment in order to operate the business effectively (Elizabeth Chell, 2014). A discussion of the business will be owned and admisnitered, the employees as well as the course required and the legal issues to be considered. Ownership and management The entrepreneur must depict the ownership of the enterprise as well as expound how the business will be administered on a daily basis. An entrepreneur are held accountable for turning an idea into a successful business and thus an entrepreneur must possess technical, managerial and financial skills as well as the experience and relevant training. The important elements of managing rapid growth and overcoming obstacles in an entrepreneurial environment The hard part in attaining the consensus concerning how to change enterprise into growth oriented firms start from the inability to find a settled ,meaning concerning what is growth oriented firm. Growth objective of an entrepreneur is affected by the own attitudes, by perception of others as well as by the perceived feasibility of success (Yeung, 2002). The attitude of the entrepreneur is impacted by the positive factors such as the financial effect, contribution to the community as well as recognition of the community. The negative influence of the rapid growth is the pressure for extra stress, probable loss control as well as work-family balance. The combination of these factors both positive and negative leads to accumulation on entrepreneurial growth intention, which together with competitive advantage as well as managerial skills conclude the growth result of the firm. Overcoming obstacle in entrepreneurship Every enterprise are susceptible to business fail and to overcome this obstacle, an entrepreneur must ensure that he has technical skill and managerial know-how as well as he is update with the current business trend in order to comprehend existing business situation in order to develop strategies that will overcome business obstacle.  Lack of capital Inadequacy of the capital is frequently a critical difficulty faced by successful entrepreneurs in their enterprise since, its very success creates the inadequacy, and it firstly turns out to be a vicious cycle. Devoid of industrious cash flow control and raising capital, inclusive of the debt, the enterprise frequently is constrained by the capital as the business grows. Often the reported net profit in an operating cycle to fiancé the incremental working capital necessary for the next operating cycle. This is more especially the situation where an enterprise is ether inventory or receivable concentrated as well as the operating cycle is a long one. Numerous capabable entrepreneurs cannot conquer the obstruction in their business cash flows cycle as well as cannot provide the funding often does not have the collateral to sustain the debt (Sahlman, 2008). The solution is often than most entrepreneurs realize. It frequently starts with planning to depict whether cash requiremtn as well as when it arises. In this regards, the entrepreneur will be able to control as well as centers on the cash management approach most probable to be successful in the enterprise. Willingness to change Change is inevitable and every entrepreneur must be willing to accept change in order to become part of the business transformation. In so doing, a firm will survive business obstacle as well as remaining firm in a competitive market.  Lack of management skills Inadequacy of information skills is a problem that is significant to deal with in much enterprise as the size of the top executive team is scarce. These areas of weakness might be funding, human welfare marketing as well whichever areas where the present administration do not have the experience or at the time to deal with the issues. The explanation is to establish what those areas of inadequacy are as well as then to create a plan for dealing with those challenges. When the weakness has been realized, it frequently compensates for devoid of time effort or funds so long as they are of weakness are not core area for a specific enterprise (Pratima Bansal, 2012). The solution is that assign the accountability to present executives with needs to supervise for the apparent drawbacks. To employing a qualified personnel. Underestimating competition An entrepreneur must not underestimate competition since; this is what brings business to fail. As a result, keeping constant each on the trend of the competitor as well as understanding the risk that competitor must bring to the business is important in an adaptive enterprise. An entrepreneur must therefore ensure that the competition is not underestimated. Strategic goal and planning An enterprise must have its tactical planning and objective put in place since, this is what drives the business and consequently, a business must stick to its strategic plan in order to provide guidance at the time of obstacle as well as during normal business operation. Strategic planning therefore ensures that a business remain focus and hence leading to rapid growth Motivation Employees must be motivated in the business sin order to encourage teamwork and effective communication; this will lead to improvement ion business operation as well as minimizing business risk consequential from resistant to change (Griffin, 2011). As a result, motivating employees will therefore encourage wide participation of workers in making the enterprise grow. The sources of information and assistance together with the entrepreneurs and significant entrepreneurial events. (a) Marketing Information Any people who participate in an enterprise engage in marketing. Some features of marketing for several years have transformed drastically .Superior product and services in the past since were no longer customer’s needs. More enterprise and distributors as well as the increasing purchasing power transformed the market place; globalization of market as well as latest sophisticated administration instrument is necessary entrepreneurs to stay in a rapid growing and competitive market. Whichever market primary entails individual as well as entrepreneurs require focusing their efforts on a single segment of the market in which the product have the largest probable appeal. Ideal market segmentation is mandatory for whichever successful marketing approach. (b) Technical Information In creating enterprise ideas, there is need for probable entrepreneur to adopt a keen moderated as well as intellectual technical method. Planning is a progression that never ends for enterprises. It is very significant in the early stages of the enterprise when the entrepreneur will require technical information to set up an initial business plan (George Vozikis, 2014). There is diverse sort of technical information that might be part of any enterprise. This might entail designing the enterprise, product, as well as nature of services and product offered. It might as well as entail tools and equipment, location and choice one need for production progression (c) Information and Communication Technology (ICT) Information and communication technology is extremely significant for entrepreneurship growth since it is easily sourced. An entrepreneur can source through the internet and get the sort of hardware and software for the business to be venture in (d) Technology Is Constantly Changing the Demands of Consumers Enterprise employs latest technologies to manufacture latest product as well as services. Entrepreneurs must realize that latest technologies growth increases the exchange of information as well as might have an effect on the operation of the enterprise (Dollinger, 2003). Entrepreneurs might not be familiar with the nature and impact of the latest technologies, yet the ought to try establish technical progression which are probably to have huge effect on their business operations. (e) Financial Information whether an enterprise is small or big, entrepreneurs must have financial information concerning the nature of business venture. One of the fundamental frequent overlooked areas of information for entrepreneurship growth is then financial information. Frequently deem as back-office features of the business, the financial information plays a key role for verdict making. Since decision, is merely as good as the information, on which they are based, determining a reliable data from business? Environment ought to be precedence for entire enterprise devoid of size and industry. it is merely when an entrepreneur posses right financial information that he will understand the nature of capital needed for the sort of businesses to invest in and approach of sourcing for the funds. Funds plays key role in an enterprise, at the start of the business, money is required to buy required equipment and other needs (David Smallbone, 2008). To be competitive, a start up firm ought to prepare for entire anticipated events as well as market transformation. A fundamental aspect of such preparation is the cash flows planning.In adqaute planning of cash flows will cause business failure and consequently, understanding some basic accounting will aid much better in managing the cash flows. (f) Legal Information Business is entailed of the economic as well as commercial existence. It might be executed on a small, medium, or large-scale enterprise. It might as well as be executed on a domestic or foreign business but an entrepreneur must understand the legal consequences of every one of them this is where the legal information is extremely significant. Business and companies employ the same. Conclusion The accomplishment of an entrepreneur is chiefly due to abundant characteristic, but the most aspect contributing to consumerist accomplishment is the capitalist himself. They play a key role in business success since, an entrepreneur believes strongly in himself as well as thy stay firm when business setback falls on them as well as they remain decisive in changing business risk into business opportunities (Alain Fayolle, 2006). Entrepreneurship therefore must build a founding team with contemporary expertise. Self-skills through self-assessment is consequently of paramount significance. Nevertheless, truthfulness, obedience, as well as knowledge of individual behavior in relation to one’s traits. An effective entrepreneur should pose the following skills and attributes Technical skills; they are essential skill necessary to produce business product and service. Managerial skill; this skills are significant to the daily administration of the enterprise Entrepreneurial skills; they entails appreciating economic chances as well as acting efficiently on them, Personal maturity skills; they are individual awareness, responsibility as well as innovative skills. Combining all these factors will lead to success of entrepreneurship as well as the growth of the business opportunities. An entrepreneur must therefore be a risk taker, motivator as well as adaptive to change since, many business are susceptible to change and competition and to cope with this issues, an entrepreneur must be very skills full, competent as well as problem solver and ensure that there is wide participation of employees in decision making but ensuring that there is an effective communication between the top and low level management since, effective communication reduces misunderstanding and resistance to change as well as increasing the productivity level hence leading to rapid business growth and success. Business obstacles must as well as be ascertained in order to ensure that as business grows; there are no other obstacles that might hinder its progression. References Alain Fayolle, ‎.K., 2006. International Entrepreneurship Education: Issues and Newness. David Smallbone, ‎.W., 2008. Entrepreneurship and Small Business Development. Dollinger, M.J., 2003. Entrepreneurship: Strategies and Resources. Elizabeth Chell, ‎.K.-Ö., 2014. Handbook of Research on Small Business and Entrepreneurs. George Vozikis, ‎.M.‎.F., 2014. Entrepreneurship: Venture Initiation, Management and. Griffin, R., 2011. Fundamentals of Management - Page 124. Griffin, R., 2012. Management - Page 266. New york. Pratima Bansal, ‎.J.H., 2012. The Oxford Handbook of Business and the Natural Environment. London. Sahlman, W.A., 2008. How to Write a Great Business Plan. Yeung, H.W.-C., 2002. Entrepreneurship and the Internationalisation of Asian. Read More