The Process of Entrepreneurship - Essay Example

Entrepreneurship Business Start Up

Entrepreneurship is one of the most exciting and challenging activities that any individual could start doing. It is defined as a process in which people can explore as well as create their own opportunities by combining the resources available. The main principle of any business start-up and its further development is innovation. The novelties introduced by businesses across the globe drive the change in the societies, providing people with content worth their attention. An entrepreneur is a person who implements the idea with several advantages for the public through creating an organization. This, in turn, can be a profit or a nonprofit one. However, the main point is of creating value, a product or service that would be unique, interesting and innovative. The process of starting a business depends much on the notion of growth and improvement of the existing production strategies and goals.

There are different models that describe the process of entrepreneurship. A complete one is suggested by Bygrave (2004, p . 3) and is structured on the four basic principles. The first one is innovation. It is shaped by the environment of the existing possibilities before the individual. It is also related to the personal features such as education, ambiguity, existing experience or achievement. One's creativity enables the start of the second stage which is triggering event. This point can be described as a crucial point that directs the person to engage in the entrepreneurship. For instance, the desire to take a risk or loss of the previous job make people think of the need to start their own business. The third core principle in the process is implementation.

Clearly, this is the most intriguing and practical point that is impacted by different variables. For example, the social networks that a business owner holds combined with the personal qualities of being a committed leader are affected by the business environment with a certain rate of competition, politics or resources. The final basis for entrepreneurship is growth. This is a point at which many successful businesses fail. Having an idea is not enough to make a business start up profitable and interesting for the public. In fact, there is a need for organizational environment structured by a successful team, culture, and strategy. This stage is impacted mist by the external factors such as competition on the chosen segment of the market, customer satisfaction, logistical concerns, financial growth, investments and plenty of other vital for businesses concerns.

It is vital to understand for any individual who decides to start a business how the mentioned above model actually works. Primarily, it is necessary to understand the initial process of creating value. Inherently, it is always driven by the possibilities. The product or service that is to be turned into an entire organization must be creative, innovative and fitting the environment. The holistic requirement is the greatest initial challenge that demands brainstorming of several individuals. According to Timmons and Spinelli (2004, p . 57) entrepreneurship is structured on communication. This is the key to success, development of new technologies and basing new ideas. Each founder or the business owner must surround him or herself with a proper team of people, whose desire to innovate and work together is as vivid. The leadership in unity with creativity provide the base for the proper usage of existing opportunities as well as resources. Each opportunity is driven by the entrepreneurship and his or her team. In fact, each business or organization is dependent on both the human and the actual resources. Integration of all the point will provide a context for fruitful development and innovation.

It is interesting to explore the features that entrepreneurs should have in order to actually start a business. For instance, there is a consideration that not all people can possibly engage in business or start something on their own. However, this is on true, as any person with the desire to innovate can create opportunities that would reveal his or her own potential. Entrepreneurs are not born. They become who they are through hard work, long educational and accumulation of creating resources. Clearly, some people clearly have more opportunities than others due to the social status, impact of family and financial condition. However, ambition supported by knowledge and social ties can also provide possibilities for a new business start-up. It is vital to see the whole picture and have leadership skills that would unite and inspire other people to join and work diligently on your own idea.

Entrepreneurship process relates not only to the finance but also to the psychological part, as different individuals hold unique types of personality that enable them to reach success. In fact, each can evolve through developing by experience and education. Common attitudes, behavior or qualities that can describe a good entrepreneur range from kind to demanding, strict to loving, cheerful to serious. A good entrepreneur is not defined by one category or feature. In fact, each individual provides something special for the market and the society due to the personal features that enable him or her to reach the set goal. The common tendencies also include being good in people skills or very talented in technological innovations that are highly demanding in the modern world. According to Bolton and Thompson (2000, n.p.) any individual can become an entrepreneur.

The consideration of the personality, environment, and action factors creates a system that interested individuals can follow contributing their own skills and knowledge. The personal feature common for all entrepreneurs according to the mentioned researchers include initiative, analytical ability, aggressiveness, drive as well as willingness to take risks. Others relate to skills in propelling relationships or analysis of the environment. The attributes of the personality are only a part of the needed successful picture. The personality factor itself should be enriched with motivation, behavioral characteristics and understanding of the future (McConkey, 1988, p. 25). There is a nature - nurture model that regards entrepreneurs as ones born with the talent as well as temperament to lead. Yet, these genetic features are as advanced by the external environment.

For instance, experiences in education and training, unstructured learning activities contribute to the development of talent, possibility to control the ambitions and learning new techniques. These factors lead to the excellence of any person in the entrepreneurship. A business start- up should be based on a determination as well as the commitment of the entrepreneur and his or her team to the common deal. This is usually supported by the discipline, persistence or tenacity in the decision-making process. The total immersion in the business provides the individual with an understanding of strengths and weaknesses. Leadership is another vital for business start-ups point (Johnson & Scholes, 2003, p. 7). Leadership skills can be obtained and developed. This is fortunate for future entrepreneurs as they can evolve the sense of integrity, patience or trust. Entrepreneurs should be obsessed with opportunities before them. They are usually aware of the needs that customers have and have a plan of implementing them in reality. The focus on the customers provides the possibility of being driven by the market, what is crucial for the sustainability of the business. Creativity along with tolerance to risk shape the ability to adapt to the constantly changing world of entrepreneurship.

Entrepreneurship is an extremely complicated discipline that requires not only skills of professional management, yet ability to be unique and do uncommon things. When people start to work with something they do not know about and even never tried they have an absolutely different approach to the case (Thornwood, 2014, n.p.). This different approach is a key to unexpected and unique ideas that can be created only with a clear mind that is not stuffed with a wide range of knowledge about the discipline. It is the fact that to be successful in something is impossible with well knowledge and skill in the case, yet fresh mind can produce an idea that will be incredibly useful after the work on it and clarifying of all positive and negative effects (Breek, 1993, p. 45). This is possible because a person with a great bench of knowledge do not produce anything new, but reproduces, what already knows in different variations. The scheme of vise person without knowledge is absolutely opposite because mind tries to make a suggestion on how everything should work that leads to innovation.

Humans usually evaluate their ideas in their heads and only then start to talk about it, yet during the process of evaluation, everything uncommon and unusual is sorted out that makes all thoughts similarly same. This equality is negative sometimes, because, without the process of evaluation, people say a lot of things that should be sorted out later, yet after the expression of unusual ideas, qualified professionals are aimed into the brand new direction of thought (McLoud & Thompson, 2002, p. 63). This out of ordinary approach is like a treasure sometimes because it helps to create innovations. In its turn, innovations are one of the most perspective things for entrepreneurship due to the fact that there are only two outcomes of the innovation. The first one is negative that new idea will not have any impact or future.

However, there is a chance that everything will be changed by the innovation and whole market space will be trembled and changed. Generally, the production of new ideas depends on the creativity of the person. Creativity is a feature of character that is formed by life position, knowledge, experience, lifestyle and way of thinking of a human. Creativity is an unavoidable feature for creation of the innovation. Yet there is still a question, what the innovation is. Oppositely, the innovation born of creativity is not a feature, yet a process (Donaldson & O'Toole, 2002, p. 32). It requires the creation of the idea, evaluation if it is innovative, searching for the way of its developments and forming it. Then, innovation has to be created and spread out because only a thing that is talked about can have a great impact on society and business environment.

Nevertheless, after the final creation of the innovation it has to become incremental innovation. Incremental innovation is the one that is developed after the beginning of its use. Development of some additional features or services is incredibly important because there are always some drawbacks of any product or service and it is the reason, why it would be improved and led to the perfect condition (Toops, 2011, 348). Described process is quite long and requires even more time than the creation of the innovation. When even incremental innovation appears to be not effective and does not provide creators with the opportunity of growth and development it can be turned into radical innovation. Radical innovation is the one that changes something completely. It can a production, services or even delivery, but the fact is that it changes the core of the market competition and rules of the business environment. It comes along the same or even greater level of customers satisfaction to be compatible, yet des it in brand new way.

As it has been mentioned before, innovation is impossible without fresh and clear mind, yet it does not mean that there are no techniques of ideas generation and they are called styles of innovation. Visioning is the first one, it is usually used be people, who set long-term goals, and the main point of it is imagining of the perfection. With this style of idea generation, a person thinks about what would be great to have in a perfect world, finds an answer and starts to move in the direction of its performance. The second approach is called modifying (Barringer & Ireland, 2006, p. 14). This style of innovation is not about creation something brand new and template breaking, but rather about a development of already existing production or service. People with such profile think about what does not satisfy them in some kind of goods and thinks about how to improve it and what should be done about it. In this search, they find an answer and the most suitable way to solve the issue. Therefore, described approaches are completely different, yet both are leading to the creation of innovative ideas, productions, and services.

However, there are two more ways to generate ideas. The third approach is called exploring. Exploring is completely about a question, which means that people with such profile are thinking by questions. They ask themselves about the way to improve or create something, way to do something brand new and keep a conversation with themselves to get some fresh and outstanding thought (Armstrong, 1999, p. 5). It is the fact that questions can be asked in previous two types and they are about thinking as well, yet this is not the main point of first two approaches while exploring is completely about questions. Finally, the last one is experimenting, and it is completely different from previous three approaches due to the fact that learning and searching are performed not only by thinking, imagining and questioning but also by testing. People with experimenting profiles prefer to try everything out and make their suggestions and create ideas from the results of experiments.

The process of entrepreneurship has long been researched from varying perspectives. These range from the economic and political factors to technological and social environment. The theory of entrepreneurship started its launch in the early 70's. It was Richard Can who first provided the term entrepreneur (Aldrich, 2007, p. 32). The theory started to evolve with each researcher aiming to find the perfect features or system that anyone can follow in order to become an entrepreneur. The actual business start-up is based on the existing theories and researches that construct the theory of entrepreneurship. For instance, a business model is required for each business start up. It is often based on a solemn idea and supported by the evolved system, where enterprise rises. Each enterprise consists of several vital factors. These relate to the costs that were incurred in order to produce and deliver products as well as services. Other significant points relate to the availability of internal and external resources. Moreover, the revenues from the consumers fill in the model of an enterprise.

The final stage of starting a business is understanding the market segment. This is based on the four principles of knowing the structure, finance, relationship, as well as the market for the enterprise. Market demand, understanding of the costumer’s needs, control, of the environmental factors - these all provide a possibility for the emergence of a successful new business model with an enterprise that impacts the public (Brooks, 2016, n.p.). To sum everything up, entrepreneurship is a very engaging and interesting process. It is structured on principles that are easy to understand and apply in any individual’s life. Every person can become a successful entrepreneur. The only limit is the willingness to succeed and develop. Education along with other related experiences pave the path to understanding of how business works and what opportunities entrepreneurs can create for themselves.