Are Entrepreneurs Born, or Can Learning Make an Entrepreneur - Assignment Example

Entrepreneurship Name Institution Course Date Entrepreneurship 1. Policy Introduction Australia is considered a country that understands and utilizes technological advancement. The government has implemented technological and innovation polices for Small and medium sized enterprises in order to enable them upgrade in their value chain and operations (Amsden and Chu, 2003). Australian government is committed to helping in the growth and development of SMEs. One important enterprise, small firms and innovation policy implemented in Australia is Demand-side technology policy. This paper will discuss the enterprise, small firms and innovation policy implemented in Australia and its effects on SMEs. Demand-Side Technology Policy Innovative products and services are important in increasing the competitiveness, growth and development of enterprises (OECD, 2002). Many small enterprises in Australia are known for their innovative product, services and processes. Demands-side policy in Australia is aimed at creating markets for products and services developed by SMEs. One important element of Demand-size policy is public procurement (Australian Government, 2014). The Australian government often procure products and services from SMWs that meet the conditions indicated like delivering of products that adhere to the environmental sustainability regulation or those that function better than existing products etc. In addition, the government also offers the first market for innovative products and services of SMEs (OECD, 2002). Public procurement offers the first business opportunity for SMEs with innovative goods and services. Moreover, demand-side technology policy allows the government to encourage the private market to accept innovative products from SMEs through several mechanisms such as labelling and offering tax incentives for buyers of innovative products (Australian Government, 2014). The government in Australia support labelling campaigns on innovative products that are environmentally and socially sustainable. The policy also highlights that the government is responsible for creating markets for SMEs facing difficulty in raising resources for marketing (Australian Government, 2014). It is very important to develop an environment where innovative products are successful in the market. In the essence, demand-side technology policy has incentivized SMEs to demand better technologies and innovations. The policy supports the provision of subsidies for research and development work for small enterprises in Australia (Australian Government, 2014). The government also assist SMEs to acquire patents for their innovative work and ensures that innovative products are rewarded by markets (Amsden and Chu, 2003). Demand-side technology policy is deployed by several instruments like tax incentives, loan guarantees, government direct participation, grants and direct subsidies. The policy in Australia has majorly supported SMEs through Research and development incentives since it applies to all SMEs taking part in R&D (Australian Government, 2014). Direct grants are also offered to small enterprises to support innovative work. Demand-side technology policy in Australia is generally aimed at offering assistance to small enterprises engaging in innovative work. The most prominent innovation financing mechanism in the country is loans (Australian Government, 2014). The government has supported SMEs’ innovation by offering loans for product and process upgrading, R&D and general innovation projects. Demand-side innovation policy has brought about many benefits to Australian SMEs. This policy has been able to address different needs of poor producers by offering assistance in innovation work (OECD, 2002). The policy has enabled the growth of SMEs in Australia by offering financial assistance in terms of marketing and production of innovative goods. Moreover, through the policy, small enterprises can access markets and resources which promote their growth and development. Through their influence on demand, corporate governance, and human resource provision, Demand-side technology policies can open opportunities for small companies. Innovation process starts with idea generation then idea screening and finally idea implementation (OECD, 2002). Through the policy, the government has been able to convert innovative ideas into products and services through financial and direct involvement (Amsden and Chu, 2003). Demand-size technology polices ensures that SMEs receive investment money up front, which reduces risks and uncertainties by increasing credibility. Small enterprises in Australia can now compete fairly in the market with large corporations as a result of opportunities offered to them by the policy (Amsden and Chu, 2003). The market in Australia is considered fragmented and imperfect due to institutional constraints. This often offers little incentive for innovative activities. However, through the demand-side technology polices, the government is able to create demand for innovative products of small enterprises which results to their growth and development. Conclusion Demands-side policies in Australia are meant to create markets for products and services developed by SMEs using different mechanisms such as offering financial support, offering tax incentives for buyers of innovative products, and labelling. Through the policy, the government has offered the first market for innovative products and services of small enterprises. The policies have led to the growth and development of SMEs in Australia. They are able to compete fairly in the market and the risks and uncertainty of innovation are eliminated. 2. Business Pitch Executive Summary In order to start a new venture, there are so many things that an individual needs to take into consideration (Barry, 2016). Before starting a business, an entrepreneur is expected to evaluate and analyse venture opportunities in order to ensure that the new business will be successful. My business will deal with the manufacture of dairy products including ice cream, yogurt and butter and cheese. The type of ownership of the company is sole proprietorship. The aim of the company is to deliver unique and high quality dairy products to customers at low prices. It will target customers in relation to age and lifestyle elements and with use retail concept as its main delivery channel. Introduction Starting a business is not an easy task as it requires a lot of effort. This report is a succinct business proposal of a new start-up that will deal with the manufacture of dairy products such as ice cream and yogurt. This business pitch is going to highlight the function of the business, type of ownership, value proposition, key resources of the company, delivery channel and the target customer segments. Function of the Business The function of my business will be to manufacture daily foods that serve the needs of the market. I am considering opening a high status dairy manufacturing company in Australia town centre due to the growing demand of the products in the market. The company will offer quality products to the market and will provide the best customer experience at lower prices compared to the players already in the market. The company will be engaged in offering diverse and premium dairy products as a way of satisfying the needs of the markets (Barry, 2016). The company will not only manufacture dairy products, but will also distribute and market across the country. Type of Ownership The type of business ownership applied to the company is sole proprietorship. A sole proprietorship is a business started by one individual who has full control of all operations. Sole proprietorship is the most common business ownership type. I chose this type of ownership for my company due to its simplistic approach and its simple way of operation. Sole proprietorship will give me an opportunity to have a greater flexibility with regard to management, fewer regulations and low taxes. My plan is to have a full ownership of the company at its initial stages and open a room for investment. Value Proposition The company’s value proposition will be based on four elements; attribute positioning, benefit positioning, competitor positioning and category positioning. The value positioning will highlight that the company offers unique, sweet and fresh dairy products that provide the best value for money. It will illustrate that the company offers unique experience of happiness, unique taste and best quality at affordable prices (Barry, 2016). Key Resources The key resources of the company will be classified into two: tangible and intangible resources. Tangible resources represent the physical assists of the company including people, finance, patents and physical location (Barry, 2016). On the other hand, intangible resources represent the non-physical assets that will be utilized by the company such as information and knowledge. The major resources of the company will include physical, financial, human and intellectual capital. These resources are very important to the success of the company. Customer Segments The company will utilize demographic segmentation approach with age as the main parameter. The fundamental target segments of the company with regard to demographic segmentation are children, young people and young urban family. In addition, the company will also use psychographic segmentation (Budholiya, 2014). It entails the customer’s activities together with their corresponding interests and opinions. The company will target a market that includes individuals who enjoy healthier drink and food alternatives such as dairy products. Delivery Channels The delivery channel to be used by the company is the use of retail channel. It can use the retail concept in order to make its products available to the consumer at the right time. Effective retail channels for the company include supermarkets and hypermarkets (Budholiya, 2014). In addition, the company will also establish some outlets where it will sell its products directly to the consumers. Conclusion The main function of the new start-up is to manufacture, distribute and market dairy products to customer in Australia. The products will be cost-effective, unique and high quality. The main target audience include children, young people and people enjoying dairy products. The company open its outlet to deliver products direct to customer and will also use retail concept. What will differentiate these products from the competitors is its taste, quality, cost and uniqueness. 3. Are entrepreneurs born, or can learning make an entrepreneur? Introduction An organisation is influenced by the leader’s capabilities of achieving goals and objectives (Lundstrom and Stevenson, 2005). There has always been a debate about whether an entrepreneur is born or made. Not every person can be an entrepreneur. There are some qualities that entrepreneurs have that differentiate them from the rest of the people. Some scholars argue that these qualities are innate while others say that the qualities are acquired through formal education. This essay will discuss whether entrepreneurs are born or are made using different entrepreneurship theories. Making an Entreprenuers Some researchers and scholars say that entrepreneurs are born and not made through formal learning. What makes an entrepreneur is their personality and innate qualities rather than formal education (Lundstrom and Stevenson, 2005). The biographies of great leaders like Richard Branson and Theo Paphitis has borne an expression that entrepreneurs are born with leadership personalities. According to the trait theory, people are either born or not born with personalities and innate qualities of effective leaders (Shirokova et al., 2016). This theory originated from the ‘great Man’ theory in order to identify the key qualities that make up successful leaders. A believe that resulted from this theory is that critical leadership qualities could be identified and that individual with such qualities could be selected and incorporated into leadership positions (Lussier and Achua, 2004). According to the trait theory, effective leaders have interests, personality and ability traits different from a typical person. The theory has identified some qualities of people with leadership potentials such as self-confidence, ability to motivate employees, achievement drive and integrity etc. All these qualities according to the theory are innate. Some of these qualities and skills cannot be taught to people inspiring to be entrepreneurs (Webb, 2007). However, some scholars argue that the qualities of an entrepreneur and a leader can be taught. According to behavioural theory, entrepreneurship is founded upon some specific behaviours of a leader (Webb, 2007). The theory argues that behaviours of an individual can be preconditioned according to certain stimuli. In contrast to trait theory, behavioural theory argues that an effective entrepreneur can be made through extensive teaching and education. It proposes that an effective leadership is all about taking into consideration the actions and not the mental qualities as suggested by the trait theory Shirokova et al., 2016). Therefore, entrepreneurs can be taught and learn although they are not born with qualities of a leader. An individual can be made a leader by training and teaching him or her appropriate and effective behavioural responses for any particular situation. In addition, Shirokova et al. (2016) argues that entrepreneurs are born but can also be made. Some people are known to have leadership DNA, while others have the ability to adopt from the environment. Such people learn from other people who have been successful in their business. Entrepreneurs are often creative, innovative and risk-takers and are not afraid to start or run a business. When an individual surrounds his/herself with the right people, it is possible to be a great entrepreneur. Style theory concentrates on what leaders do instead of focusing on who leaders are. A number of these style theories take into account the actions of leaders (Taylor, 2009). The principal of style theories is the thought that leaders often take part in two kinds of behaviours. They include both tasks as well as relationship behaviours. These theories suggest that a combination of the two behaviours highly influences the effectiveness of leadership skills. Furthermore, style theory entails that a high task as well as high relationship style of leadership often produces the most desired results which strongly differs from trait theory indicating that leaders can actually be made (Taylor, 2009). Conclusion In conclusion, different people as the question of whether an entrepreneur is born or made. Trait theory suggests that entrepreneurs are born with innate qualities that different them from the rest. However, behavioural theory argues that entrepreneurs can be made through formal education and interaction with successful entrepreneurs. It is therefore true to say that entrepreneurs are either born or made since while some people have innate qualities that differentiate them from the rest, other have the ability to learn. References Amsden, A and Chu, W 2003, Beyond Late Development, Cambridge, MA: The MIT Press. Australian Government 2014, Innovation Policy Report, Department of Industry, Australia: AGDI Barry, M 2016, Dairy Marketing Strategy. Retrieved 23rd Oct. 2016 from http://smallbusiness.chron.com/dairy-marketing-strategy-73920.html Budholiya, A 2014, Milk and Dairy Products Market Analysis, Size, Share, Growth, Trends And Forecast Global Industry 2014. Retrieved 23rd Oct. 2016 from https://www.linkedin.com/pulse/20141009071241-269904646-milk-and-dairy-products-market Lussier, R & Achua, C 2004, Leadership Theory, Application, Skill Development, Minnesota, Southwestern. Myer 2010, Myer’s place in history. Retrieved 23rd Oct. 2016 from http://www.bendigoadvertiser.com.au/story/710520/myers-place-in-history/ Organisation for Economic Co-operation and Development (OECD). 2002, Tax Incentives for Research and Development: Trends and Issues, Paris, OECD. Taylor, R 2009, Leadership theories and the development of nurses in primary health care. Primary Health Care, 19(9), pp. 40-46. Webb, K 2007, Motivating Peak Performance: Leadership Behaviors That Stimulate Employee Motivation and Performance. Christian Higher Education, 6(1), pp. 53-71. Read More