Evaluation of Entrepreneurship Activity - Coursework Example

Evaluation of Entrepreneurship Activity College: Introduction Entrepreneurs play a very critical role in the economy. As such, there are certain skills and competencies that they require in order to perform their tasks efficiently. These skills play a decisive role in the way services are delivered. Entrepreneurship can be viewed as process through which an entrepreneur devotes his time and effort to come-up with something new despite the risks involved. Personal Entrepreneurship Traits As an entrepreneur, some of my competencies include the following: creating initiative. Through this behavior, as an entrepreneur, I act on impulse whenever I spot an opportunity and do not wait to be compelled to do something. Though risky, through such an approach, I am always a head of the pack as I do not sit back and watch others try new ideas. The other trait I have which is closely related to taking the initiative is that I am a risk taker. I always act on opportunities whenever I see one. Through this mindset, I am in a constant research for new business areas to exploit in my everyday life. I also have concern for any task that is allocated to me and therefore, I admire high quality work as I tend to be a perfectionist. This is because, as an individual, I pay close attention to details and attempt the best way I can to meet standards and observe norms. I am committed to any task I set my mind to accomplish, and will always go an extra mile to ensure that I have achieved my goals ad objective. I will also go out of my way to ensure that targets are met and this way, I believe I am a competent entrepreneur. I am a well-organized individual and always plan ahead of time. For example, before undertaking a venture, I always come up with a systematic plan that involves breaking down of the whole entrepreneurship activity into parts. The parts usually involve production, marketing, and financial requirements. SWOT Analysis Strengths Some of the strengths that I possess are in-line with the skills, knowledge and competencies of an ideal entrepreneur are adept knowledge of the industry that provides me with the necessary skills that are required of an entrepreneur. These skills include various rules and regulations concerning the market. I also have good technical knowledge of team management skills, which has come out clearly in our class discussions and consequently buttress my type of entrepreneurship skills, which according to my facet score is entrepreneur enabler. Since technology is a key area of success in businesses, I have experience working with some of the latest technologies in the area of product development, branding, and marketing. As per the facet scores in the talent chain category, I am a person with plenty of ideas and a high probability of implementing and delivering results, even though the situation may sound complicated. I have a balanced score between my inner and outer ego, which means I have a balanced temperament. The implication of this score in the facet score is that I am an open person with readiness to offer support to my colleagues. Through this score, it is also evident that I have the ambition to achieve and make a difference in life. This trait is fuelled by the need for achievement which is one of my traits. I also have a strong ability to cope with setbacks in my life. Weakness The low advantage score which point out that I tend to overlook new opportunities is one of my major weaknesses. As per the inner/outer ego balance score, I tend to take responsibilities in case of mistakes, which leaves me vulnerable to accusations. Opportunities According to the facet score, the tally score in basic and team score provide me with an opportunity to use my team members to compensate for my weakness in the areas of creativity, focus, ego, and advantage. Threats The low score on beliefs and values on the facet score implies that I am less into business ethics, and environmental awareness. The resultant effect is that, the low level of ethics and environmental awareness pose a threat to the business in that competitors may take advantage of such avenues to push me to catch the eye of the customers and the business community at large. Analysis of the Results In order to be an effective entrepreneur, one has to have the following traits; first, an entrepreneur has to have the need for achievement. McClelland (1996, p. 391) highlighted the need for achievement in entrepreneurship. According to him, this trait provides a tendency to choose and concentrate on activities that result in success or offer maximums self-achievement. These needs are culture-based learning processes and not biological, which explains why some cultures often tend to produce many entrepreneurs than others. This trait coincides with my score in the facet score were I emerged as a person with plenty ideas, willing to pursue them to the latter in order to realize success. Tolerance for Ambiguity According to Budner (1962, p. 29), tolerance for ambiguity is the tendency to view equivocal situations as worthy. These are entrepreneurs who can be described as people who make lemonade from the lemons life throws their way. Such entrepreneurs often take the first initiative bearing in mind the risks that are involved and often take responsibility for the errors that may come out. Risk Takers Begley and Boyd (1987, p. 79) argue that risk takers are individual who are willing to take an extra mile and venture into a business activity, in which the outcome is uncertain. The implication of this is that either a loss is encountered or profit is made. Consequently, for one to succeed as an entrepreneur, one has to be a moderate risk taker. It is for this reason that Busenitz (1999, p. 324) concluded by arguing that entrepreneurs demonstrating moderate levels in terms of risk taking, will do well as compared to their counterparts with either very low or very high levels of risk taking. Discussion of creativity and innovation in B&Q power tools, Bike hire, and Swatch B&Q Company B&Q is a leader in home improvement with a 14.8% market share in repair, maintenance, and improvement. The market share however includes two more companies namely DIY and builders merchant sales. B&Q had an annual turnover of 3.9 billion pounds, with profits standing at 208.5 million pounds by the end of 2006. The company has employed over 38,000 people and by 29th July 2006, the company had a total of 2,350,001 square meters of sales. Creativity B&Q Company focuses on the untapped market of the elderly to meet their demands. The company began to include specialized design on its products in 2000. The company undertook massive research that led to development of an easy to use power tool that could be used by the elderly. This was after an initial research by the center about the DIY industry highlighted the need among the elderly. To develop the power tools, B&Q worked together with an Industrial Design Engineering graduate, Mathew Whiter. Bike Hire Schemes Innovation and Creativity Crime has come out to be a large detriment to cyclers. According to the home office, around half a million bikes were reported stolen in 2006/07 in the United Kingdom. Consequently, people were deterred from cycling and worst still, insurance claims increased as a consequence trickling the cost to insurance firms inform of claims to new bicycles. This created an opportunity for community biking designers such as Bycklen in Copenhagen, Velib in Paris and Bicing in Barcelona. The designers developed a theft impediment into the system thereby making it easier for people to buy bicycles. Velib Paris This scheme was set up after a bicycle hire scheme ran in Lyon. The biggest shortcoming was the loss of more than 2000 bikes through theft, which was almost half of the total fleet of the company. In an effort to curb the theft, Velib Paris developed a system through which cyclists could register their details with the company using their credit cards. Through this, the company collected information regarding the user’s bank details and address. Velib Paris also established an upfront security deposit system, which allowed the company to withhold deposits paid by cyclist who failed to return bikes in time, which was stipulated at 24 hours. In addition to this, such cyclist faced deregistration from the scheme. Another aspect of innovation and creativity is that through their technological infrastructure, Velib Paris could trace any customers who either misused the bicycles or damaged them. Their bicycles are fitted with alarm and lock systems, which are automatically activated when the bikes are not returned in time or are damaged. Bycyklen in Copenhagen The transport system that Bycyklen Company has established has won them the various awards in the transport sector. The company has total of 2000 bikes spread across the city center in 110 bike racks. The company offers its services from April through November and has put in place infrastructure that allows it to service all its broken bicycles and redistribute them to other bike racks across the city center using their services called “Bycykel services”. This service employed 30 people from rehabilitation centers on a six month period and through this, 80% of this people get employed. In innovation, Bycyklen has established measures that preclude the theft of bicycles parts. To curb the theft of bicycle parts, Biking in Barcelona has designed their bikes in a propriety method thereby making their parts incompatible with the parts of other commercially produced bicycles. Swatch This a company found in Switzerland that specialized in making watches. As a result of the take-over of the industry by Asia’s Quartz crystal technologies, the company experienced a series of economic crisis in the mid-1970s. During the same period, the company was facing recession and therefore was forced to be put under receivership of a bank. However, in the mid-1980s, Nicolas Hayek who was the CEO brought the company thereby privatizing it once more. Through this move, the company began its operations and consequently restoring Switzerland’s position in the watch manufacturing market. The creative part of swatch was their designs. The watches came along with combination of product aesthetics and reengineering thereby making it the largest watch company in the world. The first watch swatch produced was very slim with only 51 components as compared to the normal watches with 91 or more components. Along with contemporary style and design, the watches were very affordable. As result of innovation and creativity, the company’s gross sales increased tremendously in 2007 as compared to when it was under receivership, reaching all-time high of approximately 3 billion pounds. Similarity and Contrast The similarity of these biking schemes is their goal. They are both driven by the need to make use of bikes an alternative means of transportation, and reduce crimes that are related with their services. For example, both Bycyklen and Bicing have employed the same creative method of custom making parts that cannot fit in commercially sold bicycles. All the above three companies have also embarked on innovation as a tool of competitive advantage in the market. In contrast, while Velib bikes are fitted with automatic lock and alarm systems to counter theft and damage of the bikes, Bycyklen and Bicing custom make their parts. While Swatch’s innovative approach involves the reduction of the size of the wrist watches to make them appealing to the customers, B&Qs approach involves designing power products that are tailor-made to meet the demands of the elderly customer. The increasing pressure by customers on insurance companied who were demanding compensation for stolen bicycles fueled the motivation behind the establishment of these biking schemes. People had also began to refrain from biking, consequently yielding an opportunity for the growth of these schemes. B&Q started producing power tools that could be used by the elderly after a research by the center about the DIY industry indicated that demand for power tools was almost nil within the elderly population. B&Q saw this as an opportunity and invested in it thereby increasing their turn over. The creative sparks in the bike schemes was brought by the increase in theft with schemes loosing up to half of the entire fleet. In B&Q, the motivation was behind their creative thinking was because of the realization that those products were not being bought by the elderly. So in effect, to encompass them in the market, the company designed power tools that were tailor-made for the elderly. Because of innovation and technology the biking schemes, cycling has once again been restored as an attractive option for the residents. In the repair and maintenance sector, B&Q has enabled the elderly to have access to their equipments as the power tools meet their requirements. Through innovation and creativity, cyclists have been relieved of the burden of carrying massive locking equipments, which are somehow cumbersome to prevent theft of their bikes through the use of community bikes. The community bikes are fitted with security gadgets such as alarms and lock systems, therefore curbing theft of the bikes. Through innovation, Hayek restored Switzerland’s image as a global leader in the manufacture of watches. According to Swiss Watch Industry, watch exports increased by 5 billion pounds from 1986 and 2006. List of References Begley, TM & Boyd, DP 1987, ‘Psychological characteristics of associated with performance in entrepreneurial firms and small businesses’, Journal of Business Venturing, vol. 2, no. 1, pp. 79-83. Budner, S 1962, ‘Intolerance for ambiguity as a personal variable,’ Journal of Personality, pp. 30, pp. 29-50. Busenitz, L 1999, ‘Entrepreneurial risk and strategic decision-making: It is a matter of perspective,’ The Journal of Applied Behavioral Science, vol. 35, no. 3, pp. 325-341. McClelland, D 1965a, ‘Achievement and entrepreneurship: A longitudinal study’, Journal of personality and Social Psychology, vol. 1, pp. 389-392. Read More