Entrepreneurship and Venture Creation - Coursework Example

ENTREPRENEURSHIP AND VENTURE CREATION By Location Entrepreneurship and Venture Creation Introduction Entrepreneurship has received numerous definitions over the years. However, a combination of the different definitions highlights that entrepreneurship has a focus on creating new products, markets, new production methods, as well as new forms of organization structure through rigorous innovation. For an entrepreneurship venture to be successful there must be demand associated with each of the innovations. Notably, entrepreneurship succeeds in creating substantial wealth in a short period, but such ventures face numerous risks and must invest highly in innovation. An entrepreneur is an individual willing to undertake ventures of innovation that lead to the creation of new products, new markets, as well as new production methods. Qualities of entrepreneurship are not common among individuals. Researchers have highlighted that only a small fraction of the entire population exhibits qualities that can qualify them as successful entrepreneurs. In the recent past, entrepreneurship has received much attention from researchers. They have developed numerous theories that govern the establishment of the entrepreneurship ventures and how they can prove to be successful. Famous entrepreneurs across the globe are in the spotlight and researchers have taken thorough analysis of their ventures and characters in an effort to define the central tenets that define a successful entrepreneur. Researcher highlighted that there are different types of entrepreneurship. Although entrepreneurs share common aspects, their personality and characteristics differ. This explains why some individuals are likely to choose the path of a certain type of entrepreneurship that conforms to their personality. This essay will discuss the critical characteristics of an entrepreneur giving special reference to three different categories of entrepreneurship. Moreover, the paper will present case studies of individuals pursuing these types of entrepreneurships. General Characteristics of all Types of Entrepreneurs As highlighted above, entrepreneurs exhibit similar outstanding characteristics. It is important to understand the characteristics if one will determine what drives each entrepreneur to. One of the outstanding characteristics of entrepreneurs is their undying passion to succeed. Many researchers agree on the fact that entrepreneurs belonging to different categories exhibit a high level of passion for what they do, and are willing to succeed in their ventures. These individuals realize that they need to achieve success, create a substantial amount of wealth, as well as develop an outstanding legacy. These goals are the central motivating factors for many entrepreneurs. They exhibit an intense passion for the things that they do. This leads the rest of the world to think that they are fanatics. However, these passions, keep them moving. They keep defining higher goals for themselves. For most of the entrepreneurs, the passion is higher than the desire to make money (Širec & Močnik 2012, p. 11). Entrepreneurs indulge themselves completely into what they do because of their undoubtedly high passion. The undying passion exhibited by entrepreneurs explains why many of them are likely to spend a lot of time developing an idea with no reward. Since they have the conviction as well as passion, they consider such sacrifices worth the time. Their conviction is that there is a higher goal, which will prove more rewarding. Many of the successful entrepreneurs have a history of having indulged themselves intensely into something before they experienced a breakthrough that led to their success. Without doubt, this kind of passion does not exist with every individual. Only a few people destined to become successful entrepreneurs have a passion that motivates them during the hard times and helps them keep trying until they get it right (Širec & Močnik 2012, p. 13). The second defining characteristic of entrepreneurs is their resilience. Resilience in this case means that failure is part of the entrepreneurship journey. It is almost obvious that every entrepreneur will face a failure. Resilience helps an individual to get up and handle a failure while maintaining enthusiasm. Whereas failure is an unfortunate fact in entrepreneurship, having resilience makes the journey worth trying. Entrepreneurs who have proved successful often faced critical failures. However, such entrepreneurs were keen to learn from their mistakes, got up from their failure, and forged forward. Whereas normal people will tend to give up after a failure, and face the overwhelming self-pity of failure, entrepreneurs have the capacity to get over such challenges. They know for sure that they are going to fail at one point. However, they do not let that kill their dreams (Gavrilă-Paven & Fijuljanin 2012, p. 180). They are able to identify the wrong choices that led to their failure. They are willing to identify potential solutions and determine the right track after a failure. Instead of letting failure overwhelm them, they use it to determine how they can register success in the next trial. After a failure, the entrepreneur does not sit down and sympathize with oneself. Instead, their resilience spirit helps them strategize in the next trial. This explains why successful entrepreneurs are able to handle any kind of negativity or challenge and come out successful. Most of the documented biographies of famous entrepreneurs reveal that they faced certain setbacks at some point in their entrepreneurship journey. However, they chose not to give up and continued trying. The above is the real spirit of resilience that distinguished entrepreneurs from other individuals. As mentioned above, entrepreneurship is a risky venture (Gavrilă-Paven & Fijuljanin 2012, p. 174). This is because the level of risk is higher and the goals determined are too high. For many people, such goals are beyond human capacity. However, entrepreneurs exhibit the resilience of facing each risk and attaining those goals. In addition, entrepreneurs exhibit a unique kind of flexibility. They have the potential to determine when there is a need for adaptation to changes. They do not define a rigid method or course that determines their innovation. Many a times, entrepreneurs spend time strategizing on a business plan, which turns out to be ineffective. When they realize that there is a need for change, they focus on making adjustments in an effort to ensure that their idea remains viable. Entrepreneurs have a clear understanding of what they want to achieve. However, entrepreneurs realize that to achieve their desired goals, there are many challenges, and changes that may compel them to change their strategies. For many entrepreneurs, a change of strategy exhibits their capacity to adapt to changes while their goal remains very clear (Aguilar-Morales et al 2013, p. 25). There are times when entrepreneurs will focus on innovation of a new product. After assessing the performance of the product in the market, they realize that it is flopping. For them, this means that they need to make changes to their initial plan. Such changes will involve shifting resources and time to the innovation of a product that will have a positive reception in the market. As highlighted above, the entrepreneurship ventures must exhibit innovation that creates a certain demand. If the innovation does not meet this criterion, it means that they need to strategize and adopt a different track to their goals (Aguilar-Morales et al 2013, p. 29). This explains why many entrepreneurs are likely to carry out pilot projects of determining whether their innovation has value in the market. Researchers seeking to understand personality traits of entrepreneurs have identified that they have a clear vision. Entrepreneurs have the capacity to see the future beyond what is present. When they look at the existing products or services, they can figure out what will become of such products and services in the future. Their vision is what drives them into entrepreneurship. The fact that they can recognize that a certain modification made to a certain product, this presents the initial drive for them to get into entrepreneurship. Their vision does not allow them to recognize an existing opportunity (Kanellos 2013, p. 340). It drives them to develop a plan of making their vision a reality. Entrepreneurs exhibit an inspiration by things that they are yet to see. The things that they need to discover motivate entrepreneurs to success. Their vision is usually unique and specific about a certain idea. They can make future prospects through their entire vision and define a clear plan of making their vision into reality. Vision enables entrepreneurs to exhibit a high level of curiosity that helps them recognize market niches that have not received any attention (Kanellos 2013, p. 342). After the recognition of such market niches, they focus on innovation to meet the needs of such niches. Successful entrepreneurs have the potential to visualize another world and recognize things that they can do to bring that world closer. They know how to make their vision clear to the entire stakeholder, especially investors, their staff, and specifically their customers. The vision is of critical importance in any type of entrepreneurship because entrepreneurs face the compulsion of being ahead of the market (Nimalathasan 2008, p. 354). This cannot happen unless they can develop clear visions into the future. It is becoming evident that entrepreneurs exhibit a high level of self-confidence. Without doubt, entrepreneurs realize that self-belief is of critical significance if their products are to be successful in the market. Successful entrepreneurs have a strong conviction that their innovation will yield something that the world needs. They face negative energy, especially from other people who believe that the product will not have any value in the market. Notably, entrepreneurs indulge in rigorous research prior to venturing into entrepreneurship. However, the venture involves a measure of risk. Self-confidence helps them handle the risk and believe that their products will have an exemplary performance in the market. This self-confidence comes irrespective of potential challenges that entrepreneurs face. For example, they are well aware that there is going to be a tough competition in the market (Nimalathasan 2008, p. 359). However, entrepreneurs exhibit an outstanding conviction that their products are good enough to earn the highest market share in the market. Therefore, their conviction helps them convince others that the product is worth an investment. Although entrepreneurs realize the value of teamwork and appreciate the contribution of others, they are well aware that their sense of self is of critical contribution to the success of their venture. Self-confidence explains why entrepreneurs also depict a measure of self-motivation. They do not let in doubt and fears overwhelm them. They choose to believe that their innovation is a real deal and that it will bring forth rewards in the end (Širec & Močnik 2010, p. 7). Many successful entrepreneurs across the globe have exhibited an undoubtedly high level of self-confidence. Their self-confidence does not make them obnoxious. However, they appear pleasantly self-confident motivating other individuals in their team towards making their vision a success. Entrepreneurs have the realization that their choices and actions define what they will become. Therefore, they make their choices and remain confident that those choices will bring them success (Širec & Močnik 2010, p. 11). All types of entrepreneurs need to have the potential to make decisions. Evidently, decisiveness is one of the critical determinants of successful entrepreneurs. Entrepreneurship needs critical decisions as it involves innovation. There is a salient need for strategies and a clear course of action. Decisiveness helps entrepreneurs to remain on this track of entrepreneurship. Worth noting is the fact that entrepreneurs undertake rigorous research and evaluate their choices carefully. However, some individuals may fail to make decisions and prove to be indecisive in critical conditions (Lin & Tao 2012, p. 55). Entrepreneurs make decisions, stand for them, and are willing to handle the consequences of their decisions. They do not let the fear of failure prevent them from making decisions. In addition to decisiveness, they have a high level of intuition. The above is what determines the course they take during the decision-making. They can rely on their gut feelings to determine the right action in their entrepreneurship venture. Indecisive individuals cannot handle the pressures and risks associated with entrepreneurship. This is because successful entrepreneurs face risks by doing what they feel is right. They do not postpone decision making because they realize that opportunities only present themselves for a short while (Lin & Tao 2012, p. 60). An additional intriguing characteristic of entrepreneurs is that they are willing to break the existing rules. Although they understand the conventional wisdom and its implications, they have the willingness to defy such wisdom. They know that new ideas must meet a form of resistance. However, they are willing to take the risk of choosing an outstanding way to go, rather that following the crowd. As long as they have a clear vision of what they want to attain, they are willing to defy the existing rules and define new mechanisms in the game. These characteristics are not common in the population. Very few people have the courage or the will to defy commonly recognized conventional wisdom. However, entrepreneurs take the risk of exploring new opportunities and new realms of possibilities. All types of entrepreneurs have the capacity to identify exiting opportunities. Their entrepreneurship ventures thrive on the identified opportunities. Many entrepreneurs only need to look at a situation from a different perspective and identify an existing opportunity. For example, Joseph Bata, the founder of the Bata Shoes Company sent one of his employees on a mission to an African country to assess the potential market for shoes. According to the reports from the representative, Africa did not have any potential shoe market because the people living in Africa had not even started wearing shoes. Apparently, Joseph Bata being an outstanding entrepreneur saw this report in a very different perspective. The news excited him because he realized that Africa had the greatest market opportunities for shoes. This is because there was no other company supplying shoes to Africa, explaining why they did not wear shoes (Muravyova, Matzuta, & Yerlykova n.d, p. 96). This is a clear example of how entrepreneurs recognize opportunities that other people do not recognize. This capacity of recognizing opportunities ensures that their innovation is purpose driven. Worth noting is the fact that all types of entrepreneurs have the capacity to solve problems. Whereas the rest of the people place all their emphasis on the problem itself, entrepreneurs move a step ahead and focus on developing the potential solutions. This explains why they look beyond the present. They know that problems will always be there. Instead of viewing such problems as a hindrance, entrepreneurs perceive problems as potential opportunities that can yield an innovation. Evidently, only a small percentage of the population exhibit all the characteristics described. Therefore, it is clear that entrepreneurs exhibit outstanding characteristic. Their success in entrepreneurship has a direct association with their personality types (Muravyova, Matzuta, & Yerlykova n.d, p. 100). Evidently, not everybody in the society can develop a vision, have an intense passion, prove to be resilient and pursue their vision just as entrepreneurs do. However, there are different categories of entrepreneurship that require the entrepreneurs to have a different set of characteristic. Three Types of Entrepreneurs and their Characteristics As mentioned above, there are different categories of entrepreneurs. Each type of entrepreneurship has a different goal, a factor that determines the characteristics that qualify an individual to venture into that type of entrepreneurship. Notably, the personality of an individual is of critical contribution in determining the type of entrepreneurship that he or she will pursue. All the above characteristics defined the similarities exhibited by entrepreneurs across the different types of entrepreneurship. The first type of entrepreneurs comprises of social entrepreneurs. These individuals exhibit a deep passion to bring about the fundamental changes in different aspects of the society (Krstić 2014, p. 128). Whereas some may focus on the declining socioeconomic levels, poor educational status, others choose to focus on either environmental agenda or different health conditions. Social Entrepreneurship Social entrepreneurs recognize the inadequacy of the existing conditions and systems. They realize that there is a potential of introducing change. Their perceived change has the potential to bring about better conditions in the society. They have a clear vision just like any other entrepreneur. They know that they want to move the society from point A to point B. In order to facilitate the change, social entrepreneurs engage in commercial activities. This is where their innovative nature comes into place. They recognize opportunities for potential innovation in an effort to generate funds that they can use to achieve a specific social agenda. They have all the qualities of running a successful entrepreneurship venture in an effort to create a substantial amount of wealth. However, they have an outstanding recognition of social responsibility as their primary duty (Ahmadkhani, Paknezhad, & Maaroufkhani 2012, p. 311). They understand the different needs of the society and have the potential to develop models that can prove effective in implementing fundamental changes. Many social entrepreneurs identify existing social problems and develop visions that can alter the situation. Usually, social entrepreneurs hold a recognized position in the society that allows them to be able to mobilize the existing resources and establish networking systems that can bring together different organizations and individuals in an effort to address the social problem. Social entrepreneurs develop projects defined by social values as a priority and not necessarily the economic terms. Social entrepreneurs exhibit the capacity to combine different aspects in an effort to meet a certain end. They bring together innovation, entrepreneurship, and a social purpose. They participate in profit making ventures as a source of revenue towards the achievement of their social purposes (Krstić 2014, p. 127). Social entrepreneurs exhibit passion and vision just like other entrepreneurs. Moreover, they can identify existing opportunities and innovations, significantly bringing forth new products and services. However, their primary goal is to address a social problem. This is in accordance with their personality by giving social value creation a priority. When they prove successful, they are willing to ensure that the society benefits from their innovations. Although they exhibit a remarkable measure of passion, they accompany this with an unwavering zeal to assess the impact of their entrepreneurship. Their most critical achievement is being able to register impact in different sectors of the society. Researchers describe entrepreneurs as game-changers and change-makers (Marshall 2011, p. 186). Bill Gates is an outstanding of a social entrepreneur. He exhibits the passion, vision, and ability to innovate in an effort to produce new products. For many years, he has proved resilient in his software development activities, overcoming different challenges and eventually becoming one of the successful entrepreneurs in the entire globe. In addition, Bill Gates has proven to be a problem solver and a risk taker as well as displaying his outstanding potential to identify opportunities (Ahmadkhani, Paknezhad, & Maaroufkhani 2012, p. 309). Without doubt, he is one of the individuals with a strong combination of characteristics that qualify him as an entrepreneurship. However, his foundation of charity projects alongside his wife Melinda serves to introduce the social entrepreneurship in him. Bill Gates has accumulated a substantial amount of wealth over the years, proving to be one of the richest men in the world. Therefore, he has the capacity to mobilize the resources and exhibit a determination to bring fundamental changes in different sectors of the society (Marshall 2011, p. 189). For example, he mobilizes resources and organizations to participate in the health sector and promoting education. The reward of his entrepreneurship is being able to register impact in different sectors. In his specific industry of innovation, Bill Gates targets to develop software that can help small businesses as well as large business to operate in a smooth manner. Before Bill Gates began, he realized that many businesses were facing multiple challenges in the management of their businesses. Through rigorous innovation over the years, the Microsoft Company, which he owns, has registered an immense impact in the society. Without doubt, his personality suits his ventures in social entrepreneurship. The fact that Bill Gates focuses on developing solution through creative imagination, as well as relying on unconventional wisdom, and his strong self-belief qualify him as an enthusiastic social entrepreneur. He exhibits impatience towards the existing status quo and is willing to identify opportunities that can help him push for change (Marshall 2011, p. 195). Lifestyle Entrepreneurship Lifestyle entrepreneurs form the second category of entrepreneurs. These individuals passionate about the things they pursue. These people are likely to take up an entrepreneurship venture purely for lifestyle reasons. The financial rewards only come as an additional reason after they have pursued their passions. Lifestyle entrepreneurs crave for independence. They like to be their own boss and run activities their own way. They venture into entrepreneurship that conforms to their lifestyles. They consider their responsibilities in their lives, such as family. They are in need to the flexibility of deciding when to work or not. Therefore, they make a living out of the passion of their daily activities. For example, some individuals like cooking. Over time, they develop amazing recipes in an effort to achieve self-fulfilment. Eventually, they may decide to open an outside catering entrepreneurship venture that can earn them an income. This venture has its basis on entirely their passion for cooking. They may let go of other opportunities in an effort to pursue what they like most (Claire 2012, p. 33). Just like other entrepreneurs, they are very passionate about their activities and exhibit a high level of intuition. Lifestyle entrepreneurs exhibit a different attitude towards money and profits. They do not have the desire to amass much wealth. They exhibit contentment with the much that comes from activities that they love doing. Their entrepreneurship venture gives them an opportunity to spend time at home with their families. Such individuals must be very independent. This is because they should have the potential to practice what they are passionate about and be able to earn a living from it. Evidently, not everyone achieves this. An individual needs to be highly independent in order to convert a long time hobby into a business. Moreover, lifestyle entrepreneurs give priority to family and relationships (Claire 2012, p. 36). Therefore, they should exhibit flexibility in terms of allocating time for the business and for their other activities. In terms of the market, they also need to exhibit flexibility in strategic management. Commitment is of critical importance in lifestyle entrepreneurship. This is because an individual will need to develop a business plan that will translate an activity they like into a profitable business. They also need to be highly realistic because any kind of entrepreneurship needs resilience because of the potential failure. Although they do not need to register a high level of profit by expanding their businesses into large corporations, resilience is important in maintaining an entrepreneurship venture irrespective of its size (Eikhof & Haunschild 2006, p. 239). Serial Entrepreneurship Serial entrepreneurship brings into focus, entrepreneurship ventures that compel the individual to develop concepts and business models that can prove viable in the market. Serial entrepreneurs have the capacity to initiate and propel multiple businesses to success during their career. They exhibit diversity in the areas that they innovate and invest (Selection and serial entrepreneurs 2011, p. 5). Serial entrepreneurs are very rare in the society. This is because they start from a modest point, but uses their talent, vision, and passion to develop successful businesses. They are able to identify multiple opportunities that they can focus on. This explains why they develop multiple businesses. Serial entrepreneurs form a group of individuals who have outstanding characteristics. Worth noting is the fact that not everybody can choose to be a serial entrepreneur and succeed (Sarasvathy, Menon, & Kuechle 2013, p. 430). Serial entrepreneur exhibit the highest level of all the characteristics that define entrepreneurship. These individuals can create visions, through the proper identification of opportunities. They explore an industry, identifying the opportunities it presents, and select a team that can work with them in initiating ventures that can exploit those opportunities. They are highly passionate about the industry they venture (Lafontaine & Shaw 2014, p. 78). They have the capacity to remain flexible and resilient. This is because there are numerous failures associated with their entrepreneurship ventures. Therefore, they need to remain highly resilient. They keep their vision and values in check so that they do not lose track. Conclusion Evidently, entrepreneurship is not a venture for everyone. Choosing to venture into entrepreneurship needs a close analysis of an individual’s personality and capabilities. Some characteristics apply to all types of entrepreneurs. Having a passion for what they do, being able to define a vision, identifying opportunities, and developing ventures that conform to the existing opportunities are some of the common characteristics of entrepreneurs. Moreover, entrepreneurs must prove to be highly resilient and flexible because of the uncertainties associated with entrepreneurship. However, some personalities only fit for lifestyle entrepreneurship. For example, individuals who are passionate about their hobby may transform it into a business that can allow them a measure of independence and flexibility to spend time with family. Such individuals need to have a passion, a vision, and develop resilience if their venture is to be successful. On the other hand, some individuals have a strong desire of introducing social changes in different sectors. Social Entrepreneurs have identified existing social problems and they are willing to push for change. They undertake a business venture that can place them in a position to access the required resources needed to initiate change. These are social entrepreneurs. The third category of individuals comprises of people who identify multiple opportunities in an industry and set up different businesses in conformity with the identified opportunities. These individuals are serial entrepreneurs, and have the outstanding capacities to propel different entrepreneurship ventures into success through innovation, having a clear vision, resilience, and remaining passionate. 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