Entrepreneurs who Informed by the Management of Projects - Term Paper Example

How Entrepreneurs Might Inform or be Informed by Management of the Project Management al Affiliation) Entrepreneurship is an important skill that is required to facilitate business management and thus success of the entire business venture. The introductory section of this research will focus on the history of entrepreneurship. In addition, this research will focus on various perspectives of entrepreneurship and how these concepts have been used in the real business world. Moreover, the discussion will attempt to describe entrepreneurship in accordance to the manner by, which different stakeholders describe or understand the corpus of entrepreneurship. On the other hand, it will also focus on a discussion based on the relationship between entrepreneurs and mitigation of business risks. Consequently, it will highlight and elaborate ways through, which entrepreneurs can undertake innovations and elaborate the conditions for these acts. Keywords: Entrepreneurship, mitigation of risks, innovation Introduction History of Entrepreneurship Entrepreneurship has been one of the major concepts applied in issues ascribed to business management in the society over a period of two hundred years. Different societies have varying definitions of entrepreneurship, that is, the history of entrepreneurship in India may differ to the history of entrepreneurship in s country like Nigeria. For example, the etymology of entrepreneurship in a country like Nigeria occurred when the levels of goods produced superseded the level at, which such goods were consumed among the populace compelling the society to engage in a barter trade system (Bridge, Neil & Cromie, 2003). On the other hand, in India, the history of entrepreneurship has been characterized by four phases of entrepreneurship characterized by variations in the economy, basically by a shift from an agro-based economy to an industrialized-based economy. However, a universal history or etymology of entrepreneurship has been cited to have began in the early 1700’s, during this period, entrepreneurship was described in regard to the qualities of leadership, innovations as well as the delivery of products and services among companies or any sector involved in economic and social development (Schilit, 1990). These features were majorly used to ensure that companies become successful in relation to their operations by offering new models for effective working relationships, collaborations as well as mutual values. History has indicated that entrepreneurship is a major factor in the dimension of micro-economics and efforts of studying its facets can be dated back to the 17th century, where Richard Cantillon and Adam Smith pioneered the study of Classical Economics. In the late 20th century issues ascribed to entrepreneurship have been studied by Scholars like Joseph Schumpeter, who facilitated its understanding in various facets of economic activities (Bridge, Neil & Cromie, 2003). Existence of Entrepreneurship in an Environment of Failure Businesses are usually experienced by certain operational challenges that require innovative modes of thinking geared towards reduction or elimination of the challenges. In this regard, entrepreneurship has been perceived as a tool that can be applied to facilitate business success on a wide perspective; that is, entrepreneurship has been perceived as an innovative tool, leading to the formulation of solutions that can be applied to reduce challenges in the business (Burns, 2007). Basically, the essence of entrepreneurship entails generations of ideas that can be applied to solve identified challenges (Oates, 2010). Moreover, entrepreneurship is also characterized by managerial skills, characterized by team building skills that facilitate the success of any business that may managerial challenges. According to Robert Reich, the pertinence of entrepreneurship has been evident in the case of business failure by providing leadership skills, managerial as well as team-building in order to facilitate the success of the concerned business (Reich, 2011). Entrepreneurial Seizure The essence of entrepreneurial seizure occurs when a person with technical skills and desire to start a business enterprise takes an initiative to start a business, but ends up working in the business, rather than working on the business. Research has shown that entrepreneurial seizure can occur in three main dimensions; to begin with, it may occur when a person appears to have so much information about a specific business enterprise than the person who specifies in undertaking the business (Khal, 2012). In addition, it may occur when a business owner appears to lack information as compared to his/her employees. Consequently research has shown that entrepreneurial seizure may occur when a person has more knowledge regarding the sale of a structure that requires technical skills to develop, than the actual developer. Entrepreneurial seizure is usually associated with various challenges that may hinder the success of any business. One of the challenges that may arise from it is that a person may lack imperative knowledge in the case that a business requires two sets of multiple sets of information for instance; when a building developer possess the skills to construct the structure, but lacks the knowledge to sell the house (Khal, 2011). This is a major challenge that may hinder the success of the developer owing to the fact that he/she may not distribute or sell the finished products. Another challenge that has been ascribed to entrepreneurial seizure is that business owners may lack managerial skills despite the fact that they possess adequate financial resources to manage their businesses i.e. they may lack managerial skills in regard to rules and regulations of business management (Khal, 2011). However, research has shown that there are ways through, which business persons can prepare for entrepreneurship seizure; to begin with, it is imperative to identify and the respect that those businesses that require technical skills cannot succeed without managerial skills, that is, managerial skills and technical skills work exist along each other. Entrepreneurial Seizure can also be avoided by undertaking initiatives geared towards learning how to integrate managerial skills, financial management skills as well as technical skills. Entrepreneurs with technical skills should not rely only these skills, but should recognize the pertinence of managerial as well as financial management skills (Wiscon, 2008). Literatures Review and Discussion In the business environment, an entrepreneur has been described as an individual who undertakes efforts directed towards organizing, operating and managing various aspects of a business. In regard Schumpeter’s definition, “an entrepreneur is basically an innovator who applied the process of interfering with the status quo of already established business products or services with an intention of creating new modes of operation”. However, other researchers and scholars have cited that an entrepreneur is a person that focuses on improved quality of operation by revitalizing existing modes of business operation, in the case that the business perceives an opportunity for business activities (Wiscon, 2008). There are different perceptions of entrepreneurs in the society; this has led to mixed definitions as well as description of entrepreneurs among the society. In most cases, people tend to associated entrepreneurs with business ownership or management. Moreover, the essence of being an entrepreneur differs from one aspect of the society to another for instance; it may differ in relation to the size and the type of an organization or business activity one indulges in i.e. a construction business may require different entrepreneurial skill as compared to the entrepreneurial skill that is usually required by managing an hotel. According to David McClelland, “an entrepreneur is basically an individual, who has a desire to achieve certain goals, characterized by tremendous energy, but limited capacity to take risks”. However, in most cases entrepreneurs have been cited as persons with high risk taking capacities, a claim that contradicts McClelland’s point of argument. Some researchers have argued that McClelland’s argument that entrepreneurs lack risk taking capacities was based on the fact that some entrepreneurs possess financial resources to undertake a business. Types of Entrepreneurs There are five major types of entrepreneurs that have been greatly discussed in the economic sector. To begin with, there those entrepreneurs that have been described as idealists; this is a class of entrepreneurs that focus on innovation and generation of new ideas that can be used to change the manner through, which a business operates (Brush, 2007). On the other hand, there are also entrepreneurs that are described as optimizers, the roles of optimizers in any business entails a scenario where, these entrepreneurs engage specifically in ownership of a specific business venture. That is, optimizers are entrepreneurs that simply own a business. Research has also shown that there are those entrepreneurs that are usually referred as Sustainers; the corpus of being a sustainer entrepreneur entails those persons who usually make efforts to balance their personal lives and businesses in the sense that they control their businesses so that they may not grow in a manner that denies them the chance to enjoy their personal life (Norcia & Painter-Morland, 2009). Another class of entrepreneurs is usually referred as hard workers; it consists of entrepreneurs characterized by business persons driven by the desire to invest extra efforts in order to ensure that their businesses develop large profits over a specific period of time. They are usually characterized by the readiness to face any challenge that may come their way in the process of business operation; hence tend to be successful in their endeavors. A group of critics have argued that the current society is characterized by a scenario where every business entrepreneur works hard to ensure success in their specific ventures. Consequently, there is also Juggler entrepreneurs; they are characterized by the ideology that a business gives them a basic platform where they can handle everything for themselves. Basically, they are energetic individuals, who enjoy working on environments with a lot of pressure i.e. the pressure to meet deadlines or reach certain business targets. Entrepreneurs and Learning from Failures As is has been indicated in this research, entrepreneurs possess diverse skills and knowledge regarding business investment as well as modes of business operations. Business failure is a common factor that has been evident in most business ventures and requires people with high levels of commitment in order to ensure that their businesses succeed even in the event of failures. However, McClelland asserts that an entrepreneur is a person that should view failures as learning experiences thereby enhancing their efforts directed towards identifying solutions that will be used to solve future similar challenges. Entrepreneurs and Risk Taking The essence of being an entrepreneur in the contemporary society entails risk taking; that is risk taking and being a successful entrepreneur goes hand in hand (Petrakis, 2004). Majority of economic experts have asserted that risk taking is an imperative aspect of being a successful business entrepreneur. Usually, entrepreneurs perceive risks as the pathways to success hence making efforts to ensure that they device methods that will ensure that perceived risks are properly handled and managed in order to eliminate the occurrence of associated challenges (Petrakis, 2004). The skill to take risks to ensure that businesses succeed has been evident among hard-worker entrepreneurs, who focus on investing extra energy to ensure that their business ventures succeed. How entrepreneurs break in the Market through Innovation The definition of entrepreneurs indicates that entrepreneurs are business minded-persons with the capacity to come up with new ideas directed towards identifying new methods of operations. The ideology is based on the fact that their generation of new methods of operation is usually generated in the case that a business opportunity is recognized or suspected that will exist in future (Dhar, 2011). In some cases, entrepreneurs may stop doing specific business only in the case that they generate new ideas that may lead to initiating a new business venture, that is, in the case that a new opportunity for business occurs, that needs new ideas for investment, entrepreneurs may decide to shift to another different business venture. Conclusion The essence of being an entrepreneur in the contemporary society involves the possession of different skills and knowledge in relation to business management. It is a fact that being an entrepreneur requires proper skills to solve various challenges that may arise in the process of business operations. Mitigation of risks is one of the imperative skills that are required by entrepreneurs to solve certain business management process. Basically an entrepreneur is an all-rounded individual, with basic and necessary skills that can be used to facilitate business success. However, there have been controversial arguments regarding entrepreneurship, with a large number of populace arguing that entrepreneurs are basically people that engage in business operations i.e. business owners. Bibliography Ajagbe, F. (2012). Features of small scale enterpreneur and access to credit in Nigeria: a microanalysis. AMERICAN JOURNAL OF SOCIAL AND MANAGEMENT SCIENCES, 3(1), 39-44. 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