Entrepreneurial Change Agent - Essay Example

Running Head: ENTREPRENEURIAL CHANGE AGENT Entrepreneurial Change Agent Evaluation of the change experiences/ leadership of several entrepreneurs From the interviews, each one of the three entrepreneurs encountered different forms of change and used specific leadership skills and approaches to effect the changes in their organisations. The manner in which they went through these processes was highly influenced by different factors; the most important of them being their personal characteristics and the different contexts in which they were operating at the time of the changes in their respective organisations. From the interviews, it is clear that the first change the entrepreneurs had to face in the course of their journeys was changing from full-time and paid forms of employment to becoming career entrepreneurs. Two of the three entrepreneurs who were interviewed were in full-time employment but decided to resign from their jobs and launch their respective business ventures. This form of change presented obvious disruption in their lives. For instance, Jassem, the founder of a car buying and selling agency in Jeddah, indicated that his decision to resign from his job was highly discouraged by his employer at the time. Similarly for Fred, the owner of Addoway.com, the decision to leave his job and get into entrepreneurship was a difficult one to make particularly when one considers that he was working for one of the Fortune 500 companies, a respectable position by all accounts. Although Chuck, the owner of SpareFoot, was not in full-time employment at the time of launching his business, the fact that he was a student at that time presented a personal challenge to him. This decision to leave paid employment (for the case of Jassem and Fred) and taking advantage of an opportunity to set up a business venture underscores the ability of entrepreneurs to take on risks not only at the beginning but also in the course of their careers. In fact, the relationship between the propensity to take risks and a sense of autonomy and entrepreneurial behaviour has been known to exist (Caliendo & Kritikos, 2011, p. 3). Although it appears that the ability to take on financial, social and other forms of risks is an important characteristic of entrepreneurs (Allah & Nakhaie, 2011, p. 78), it is important to point out that this characteristic is exhibited in a careful and calculated manner that is specific to particular contexts. Hyrsky and Tuunanen (2000, p. 242) point out that entrepreneurs are likely to take risks in fields in which they have a high level of understanding. And even from the interviews, it can be seen that the decision to get into entrepreneurship was made after the interviewees had carefully considered the odds that awaited them in the future. Setting up a new business venture is not the only challenge that entrepreneurs face. Immediately the new business ventures have been established, entrepreneurs still face a myriad of challenges which are generally associated with the management requirements that the new business ventures need. Longenecker, Petty, Palich and Hoy (2011, p. 565) observe that some of the challenges that entrepreneurs commonly experience in the course of running their newly established businesses include the need to control the expanding operations, the difficulty of delegating responsibility in the face of a rapidly expanding business and the challenge of creating and maintaining effective communication practices within the organisation. To varying degrees, the entrepreneurs interviewed proved the truth of this observation. For Jassem, the fact that he had to change from the original business venture of dealing in real estate to that of running an electrical shop before finally settling down as a dealer in cars means that he faced a number of challenges in running the first two ventures and this was the main reason that informed his decision to change the type of business twice. For Chuck, one of the major challenges he has been facing while running SpareFoot.com has been the constant danger of failure. For Fredrick of Addoway.com, the constant danger of failing as a result of fierce competition in the field has made it necessary for him to constantly try out new ideas as a way of remaining relevant in the market. While trying to solve the numerous challenges that they faced, the entrepreneurs that were interviewed relied heavily on innovation and creativity. It is by adopting innovative and creative ways of doing things that the three entrepreneurs who were interviewed have been able to overcome the initial challenges that their business ventures faced and have been able to ensure that their businesses remain successful since their inception. When asked about the extent to which his business depended on creativity, Jassem responded that innovation and creativity are the main driving forces behind his business and as such, remain central to the daily operations of the venture. For Fredrick, the use of technological innovations has been the factor that has determined the success that Addoway has enjoyed so far. Chuck, in a bid to ensure that SpareFoot gets repeat customers, uses innovative ways to deliver value to them and ensure that they make bookings that last for long. Therefore, it is clear that regardless of the specific challenges being faced, the entrepreneurs who were interviewed depend on innovation and creativity to tackle such challenges and ensure that their business organisations succeed in the market. This approach augurs well with theoretical developments about entrepreneurship. For instance, Okpara (2007, p. 2) states that creativity and innovation are essential parts of the entrepreneurial process. This is because entrepreneurs not only require to be creative and innovative when detecting and acting upon opportunities but also later when running the organisations where the ability to look at new ways of improving existing products and processes is important for their survival. Closely connected to creativity is the concept of innovation which, according to Okpara (2007, p. 5) is represented in the form of the ability to make use of new knowledge that has been gathered from connections to change the approach that an entrepreneur uses in running a business. It is from important contacts that Jassem has obtained wisdom to help him tackle the challenges he has been facing in running his business. Therefore, entrepreneurs use creative and innovative ways to solve the problems that they face in running their businesses. Also, in getting creative and innovative solutions to the problems that they face, entrepreneurs rely on their connections with other people in their social circles. Another aspect of entrepreneurial behaviour that is important in helping entrepreneurs successfully manage change in the course of running their businesses is the ability to be focused on growth and expansion. From the interviews conducted, it can be seen that the entrepreneurs are focused on growth and expansion as the primary goal in their entrepreneurial endeavours. When asked about his future plans, Chuck emphasises the need to grow SpareFoot.com in the near future. Asked about the future plans for Addoway.com, Fred states that his concern is to build on the past success of the business for a better future. Similarly, the primary concern of Jassem is to grow and nurture his business. It appears that focusing on the immediate needs of the business while seeking to grow it in the future is an important strategy that entrepreneurs use to manage change. In theory, the ability of entrepreneurs to successfully grow their businesses is based on specific character traits that enable them to be fully focused on growth as a way of successfully managing the changes that they experience in their careers. For instance, character traits such as tenacity, perseverance and passion for work are important in helping entrepreneurs manage their businesses with a focus on future growth and expansion (Baum & Locke, 2004, p. 588). Širec and Močnik (2010, p. 4) state that the need to achieve and a sense of vision are important character traits that enable entrepreneurs to grow their businesses. Reflection on personal strengths and weaknesses To evaluate my team building, negotiation and networking skills, reference is made to the Belbin model of team types. According to this model, an effective team is one that is composed of individuals who, by virtue of their peculiar character traits, play different roles in the affairs of the team (Cameron & Green, 2012, p. 99). An ideal team is composed of individuals who belong to specific character types which can be understood in terms of how individuals perform different types of functions. First, with regard to how individuals get their energy, members can either be extroverts or introverts. Secondly, with regard to how individuals receive information, team members can either depend on sensing or intuition. Thirdly, individuals in a team can either belong to the thinking or feeling type depending on how they make decisions. Fourth, with regard to the sort of lifestyle enjoyed, team members can either be of the judging or perceiving character types. From this framework, it is clear that I am an introverted person who makes decisions through a thorough thinking process that is based on facts and sound judgement. This approach to teamwork is likely to affect my future entrepreneurial process in several ways. For instance, my style of decision-making is likely to portray me as a rigid person who is not flexible enough to accommodate the views of others. Furthermore, a sense of introversion is likely to cast me as a leader who is withdrawn from the rest. On the other hand, understanding my team type, according to this model, is likely to be beneficial to my entrepreneurial endeavour in several ways. For instance, armed with the knowledge, I shall seek to build a team of individuals whose character types complement mine. This way, I shall end up with a team that contains members who have different character types. This will make the team complete and effective. Also, the ability to make logical decisions based on a strong sense of judgement will be beneficial in that it will help me make the right decisions for the success of the business. The importance of this approach has been seen from the interviews with the entrepreneurs. For example, it is clear that the ability to make sound decisions was an important attribute that helped the entrepreneurs navigate through various forms of change in managing their businesses. Evaluating my potential as a future entrepreneurial change agent can be done using different models and theories of entrepreneurship. Such theories identify specific character traits that make it easy for individuals to engage in entrepreneurial activities. One common model is the Durham University Business School Model of entrepreneurship, commonly referred to as the DUBS model of entrepreneurship. According to this model, entrepreneurial character traits fall within four main categories: ideas, planning, doing and self-awareness (van der Kuip & Verheul, 2003, p. 12). To start with, ideas are the qualities that enable entrepreneurs to investigate, be creative and identify new possible opportunities for setting up new business ventures. This was evident in the three entrepreneurs who were interviewed. Secondly, the character traits of entrepreneurs that fall under the category of doing involve the ability to take risks, to be autonomous and to act persistently. Thirdly, self-awareness entails the qualities of motivation, self-confidence and the ability to take initiative. Last but not least, planning includes the ability to make concrete plans and solve problems that emerge in the course of entrepreneurial activity. The aforementioned qualities correspond to the characteristics of entrepreneurship under the social development and entrepreneurship theories which include the ability to take risks, remain committed to specific goals, innovate and set goals (Szerb, 2003, p. 83). Further, according to the Global Entrepreneurship Monitor (GEM) conceptual model of entrepreneurship, conditions such as availability of finance, existing government policies and other social norms determine the extent to which individuals use their skills and motivation to take advantage of existing entrepreneurial opportunities (Szerb, 2003, p. 84). Interestingly, from the interviews with the entrepreneurs, all these characteristics have been shown to be critical. For instance, the character traits that enable individuals to act independently and have a sense of initiative have been shown to be critical in helping the individuals identify specific opportunities that exist in the market and be bold enough to launch specific business ventures. Besides, problem-solving skills have been important in helping the entrepreneurs successfully navigate through the various forms of change that their businesses have been going through since the beginning. It is important to point out that on several occasions, I have demonstrated some of these character traits. This has been evident in the course of going through my study projects or social activities. For example, in the course of handling my study projects, I have demonstrated a unique ability to solve problems, to be persistent and to remain motivated. These qualities have been quite useful in instances where I am part of a team that is handling particular study projects. Besides, in the process of taking part in social activities, I have demonstrated different qualities that are associated with entrepreneurial behaviour. This has been demonstrated clearly in my participation in sporting activities. In such instances, I have demonstrated a high sense of creativity, self-confidence and motivation. It is clear that the same attributes can be quite useful in an entrepreneurial setting. In conclusion, my potential to become an entrepreneurial change agent is seen in the character traits that I have demonstrated while handling my study projects or participating in sporting activities. I have demonstrated a set of character traits which are identified in the theory of entrepreneurship as the most essential qualities that influence individuals to get into entrepreneurship as a career. Besides, from the interviews conducted, it has been seen that the individuals who were interviewed possess these important characteristics. Qualities such as persistence, ability to take initiative, solve problems and focus on growth have been demonstrated as essential requirements for entrepreneurs. Therefore, since I have demonstrated these qualities, I have the potential to become an entrepreneurial change agent in the future. References Allah, M. A., & Nakhaie, H. (2011). Entrepreneurship and risk-taking. IPEDR, 25, 77-79. Retrieved from http://www.ipedr.com/vol25/15-ICEME2011-N00024.pdf Baum, J. R., & Locke, E. A. (2004). The relationship of entrepreneurial traits, skill and motivation to subsequent venture growth. Journal of Applied Psychology, 89(4), 587-598. Retrieved from http://www.taranomco.com/wp-content/uploads/2013/11/185.pdf Caliendo, M., & Kritikos, A. (2011). Searching for the entrepreneurial personality: New evidence and avenues for further research.’ IZA Discussion Paper No. 5790. Retrieved from http://ftp.iza.org/dp5790.pdf Cameron, E., & Green, M. (2012). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. London: Kogan Page. Širec, K., & Močnik, D. (2010). How entrepreneurs’ personal characteristics affect SMEs’ growth. Izvirni Znanstveni Članki, 1-2, 3-2. Hyrsky, K., & Tuunanen, M. (2000). Innovativeness and risk-taking propensity: A cross-cultural study of Finnish and U.S. entrepreneurs and small business owners. LTA, 3(2), 238-256. Retrieved from http://lta.hse.fi/1999/3/lta_1999_03_a2.pdf Longenecker, J., Petty, J., Palich, L., & Hoy, F. (2011). Small business management: Launching and growing entrepreneurial ventures. Mason: Cengage Learning. Okpara, F. O. (2007), The value of creativity and innovation in entrepreneurship. Journal of Asia Entrepreneurship and Sustainability, 3(2), 1-14. Retrieved from http://www.asiaentrepreneurshipjournal.com/AJESIII2Okpara.pdf Szerb, L. (2003). The changing role of entrepreneur and entrepreneurship in network organizations. In I. Lengyel (Ed.), Knowledge transfer, small and medium-sized enterprises, and regional development in Hungary (pp. 81-95). Szeged: JATEPress. Van der Kuip, I., & Verheul, I. (2003). Early development of entrepreneurial qualities: The role of initial education. SCALES-paper N200311. Retrieved from http://www.ondernemerschap.nl/pdf-ez/n200311.pdf Read More