Importance of Entrepreneurial Motivation to Determination of Business Success Compared to other Factors - Coursework Example

Entrepreneurial Behavior Importance of Entrepreneurial Motivation to Determination of Business Success Compared to other Factors Introduction For any business to succeed, there are a number of factors that play roles in achieving it. Such factors vary from internal factors to those that exist in external environments of a business. To ensure that a business is on the path to growth and yielding the desired profit is never an easy task. Long best practices, confidence, and optimism are vital to ensure survival and profitability. Determining business success involve factors, some controllable while others are beyond business or government control. However, each of them must be efficiently and sufficiently available to achieve business success. Such business success determinants include capital, product price and its quality, employees of the business, management or entrepreneurship and technology applied in the business. Customers, working cost and systems are some other factors that play crucial part in ensuring success of any business, whether small in size or big (Brockie & Rosemann 2014, p. 129). Each these factors have their strengths and advantages in achieving business success. Entrepreneurship, therefore, is an area of interest in determining business success. It refers to an individual’s willingness and ability to develop, manage, and organize a business venture irrespective of the risks involved to make profit. Entrepreneurship combines with land, resources, labor, and capital to yield profit. Business environments, both internal and external, are ever increasingly dynamic and competitive globally. Consequently, every entrepreneurial effort must have qualities of being innovative, risk taking and ability to succeed despite the competitive environments in the global market. Entrepreneurial behavior is a vital determinant of business success that has great significance compared to the other factors. It is vital to note that entrepreneurship, characteristics, attitude, goals and due diligence are the major factors that drive entrepreneurship to success. Entrepreneurial behavior promotes important factors including passion, motivation, risk-taking, dedication in business, flexibility, understanding of products determination, planning skills and vision for the future that are imperative in business success. Passion and Motivation Passion is one of the factors that give entrepreneurship an advantage over other business success determinants. Many people around the world will say and believe that business success relies on money drive. However, researches reveal that most entrepreneurs value passion as the greatest drive towards success of their businesses. Business owners feel motivated to solve problems related to their products to ensure customer satisfaction, make life easier, cheaper, and better. Based on company specific objectives, passion acts as an intrinsic motivation that avails internal reward to sustain the entrepreneur between paydays (Robinson 2014, p. 1). Passion for that matter plays a vital role especially in situations where businesses face frustrations from unfavorable government policies, insufficient capital, inadequate customers, and poor technology. Ability to Take Risks Entrepreneurship contributes to business success greatly because entrepreneurs are willing to venture into and tolerate ambiguous business activities. Risk taking involves the ability to defy fears of uncertainty and possibilities of potential failure when starting a business. Risk taking therefore means being successfully able to manage fear rather than avoiding it. Such fears may include but not limited to humiliation, running out of capital or cash, bankruptcy and business failure. Entrepreneurs instead have the ability and understanding to control fear and pushes through the venture as a result. However, a successful entrepreneur must be careful to have a resource reserve, bandwidth, and plans for dealing with the uncertainties. Failure to have the reserve can result into a terrible business failure (Seth 2014, p. 1). Entreneurship contributes to business success hugely because every entrepreneur is willing to succeed and asks himself or herself whether the business is worth risking before venturing into it. Discipline, Dedication, and Self-Belief Unlike other determinants of business success, people entrepreneurship enjoys what they do in the business. The entrepreneurs show dedication, confidence, and self-belief as they undertake their business activities and projects. Despite the fact that entrepreneurs at times demonstrate stubbornness when they intensely focus on faith of their brilliant ideas, entrepreneurs demonstrate discipline as well as dedication (Seth 2014, p. 1). Researchers define self-belief as a task-specific confidence that gives an entrepreneur surety that his products are hot cakes for the market and he is capable of delivering it (Robinson 2014, p. 1). Confidence, self-belief, and discipline lead to self-promotion and are among the strengths that entrepreneurs have at their disposal. Consequently, business products are discovered and embraced by masses in the market places hence business success. Flexibility Business survival and success fully depends on its ability to adapt efficiently and sufficiently to the market and operational environment. Flexibility is an outstanding character of an entrepreneur that allows him or her to respond without haste to changes market conditions, tastes and preferences. Entrepreneurs keep modifying the faces of their products to respond and keep up with market and supply dynamics. Any inflexible business is a potential failure because entrepreneurship does not involve only what the business believes is good, but creating successful business venture out of it (Seth 2014, p. 1). Entrepreneurs also understand that changes are not stationary phenomena; therefore, they welcome suggestions and opinions from their clients, partners, and competitors. As a result, the business achieves customization as well as optimization, which consequently results into market needs and client satisfaction. Market and customer satisfaction hugely promote business success as well as competition cutting edge over rival business. Product and Market Understanding Entrepreneurs have comprehensive and great understanding of products they offer to their customers. In addition, they also understand market dynamics fairly well inside out. Blockbuster, for instance, is a company that failed to understand needs of the changing market as well as other external factors. As a result, the company failed terribly and closed down its operations as a result (Seth 2014, p. 1). Entrepreneurs also value customer understanding by offering personalized attention to them. For instance, in the current world of technology, many customers may wish to access information that they need from the business website directly rather than being sent to retrieve it elsewhere. During such moments, entrepreneurs maintain personal touch between the customer and the business either online or on phone call (Stephenson 2014, p. 1). Through such efforts, entrepreneurship achieves bigger success that other determinants. Persistence and Determination Entrepreneurship has tenacity that enables it to push though obstacle crucibles and uncertainty for years. Tenacity trait also refers to the ability to persevere, commitment, persistence, resilience and determination though researchers say it is obsolete in the competitive market. Entrepreneurship is a business determinant that survives again if any failure occurs through its tenacity. Every business venture can be a victim of failure due to mistakes or other environmental factors that is inevitable. It, however, is only businesses that can switch their operations or resurrect their operations can have a continuity, hence success. Most determinants of business success fail to keep tenacity, hence failing to achieve success. Proper Planning Entrepreneurship involves construction of a business from scratch operating in limited resources. The limited resources include time, money, human resource, and personal relationships. It is a noble impulse for an entrepreneur to attempt a long-term dedication in planning. Businesses that plan for everything and avail possible solutions to all risks end up preventing the enterprise from moving forward. However, entrepreneurship as a determinant of business success possesses great skills of business planning and a mindset that enable entrepreneurs successfully handle unforeseen circumstances (Seth 2014, p. 1). Furthermore, entrepreneurs perform feasibility analysis that enable them identify capital thresholds and time after which they can decide to seek alternatives or take exist. Entrepreneurs are well organized on the sequence of business activity to perform and amount of time to spend to spend on it. Because entrepreneurs operate on a created single calendar related to work form, their job completion schedule is never compromised (Stephenson 2014, p. 1). Moreover, entrepreneurs are capable of planning to slot for their family members into own activities from a single calendar to facilitate management. Consequently, business success becomes eminent. Entrepreneurship Businesses Are Visionary One of the most outstanding characteristics of an entrepreneur is his or her ability to spot into a future opportunity and visualize what others fail to imagine. Entrepreneurs also develop curiosity that gives them ability to identify neglected business opportunities putting them at the innovation and emerging issues forefront ahead of other businesses (Ács & Audretsch 2010). Entrepreneurship, therefore, becomes well placed to communicate effectively their opportunity vision to potential investors, business staff, and customers. Such visions attract investors, as well as customers leading to great success in the entrepreneurship business than the rest of the determinants. Most businesses would always remain satisfied when they realize some successes in their operations. However, visionary entrepreneurs see beyond their current success, they adventure into other possible opportunities and in most cases end in success. Most Entrepreneurs Are Good Money Managers Wise utilization of capital that involves proper finance management is another conspicuous feature of an entrepreneur. They are quick to realize need for proper money management requirement after which they plan for both future and current financial responsibilities. Further, successful entrepreneurs maintain comprehensive cash flows, which is most crucial aspect of any venture in a business activity. Entrepreneurs Have the Ability to Effectively Network Reaching out to successful entrepreneurs with massive business experience and elaborate entrepreneurial network is a priority to any entrepreneur who aspires to be successful. Similarly, they build strong networks with mentors, business partners among others. The process is key to achieve business success. Risk Preparedness It is undisputable fact that that not all businesses that start end up in success, infant, chances of failing are always higher than possibilities of succeeding. Entrepreneurs therefore, try other possible exit means by trying a new but different investment. For that that reason, entrepreneurs find means and ways of avoiding falling into the trap of making sunk cost investments in the same venture. Through this process, entrepreneurs, even if not successful, take stress free and foresight to avoid or cut down loses. With this initiative, entrepreneurship will always achieve success. The Art of Negotiation Entrepreneurs have an effective negotiation technique that enable them get favorable and lucrative deals from potential investors, customers, and business partners. Negotiation skills are used daily in any business set up making it vital to business success. Entrepreneurs can easily orchestrate a win-win situation because of their fine tuned skills. To build a long-term business relationship that is profitable, every party involved in a negotiation should feel a win. Because entrepreneurship employs this method in its business activities, they achieve a great range of business success than other distinct methods of determining business success. Conclusion Entrepreneurship remains a high motivator towards achieving busing business success than the rest of business success determinants. Entrepreneurs are therefore very important to the world and their success contributes significantly to the success of the nation. Entrepreneur contributes immensely to the growth of the economy together with the other factors of production. Entrepreneurship remains the unique factor of production because of its ability to assemble all the other factors of production. Such factors as land, labor, and capital cannot lead to business success without the mobility by entrepreneurship. References Ács, Z. J., & Audretsch, D. B. (2010). Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction. New York, Springer. Brocke, J. V. & Rosemann, M. (2010). Handbook on Business Process Management 2 Strategic Alignment, Governance, People And Culture. Berlin, Springer. http://public.eblib.com/choice/publicfullrecord.aspx?p=645916. Peterson, R, & Limbu, Y 2010, Student Characteristics and Perspectives in Entrepreneurship Courses: A Profile, Journal of Entrepreneurship Education, 13, pp. 65-83. Robinson, J. (January 10, 2014). The 7 Traits of Successful Entrepreneurs. Entrepreneurs. Retrieved on November 16, 2014 from http://www.entrepreneur.com/article/230350 Stephenson, J. (November 14, 2014). 25 Common Characteristics of Successful Entrepreneurs. Entrepreneur. New York: Connect. Retrieved on November 16, 2014 from http://www.entrepreneur.com/article/200730 Read More