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Entrepreneurship is the process of discovering new ways of combining resources Which was stated by Dr. Russell S. Sobel . It explains that generate more market value than its resources by individual or groups, the profitability. He stated an example of jean producing and selling to take necessary resources to produce a pair of jeans and sell in more expensive price than its original price of resource. The entrepreneur's business strategy makes the profit and defines entrepreneurship. As the business procession of the people's action, entrepreneurship is become more widen and banal globally and many people are jump into the market to be entrepreneur to venture their new business. In this case, the success of the business is depend on entrepreneur and capital. This issue has argue with "All you need is money to be an entrepreneur".
In nowadays, the types of ventures and choices are extensive by technology advances and broad information range around the world wide. However, in the past, opening a venture was quiet risky because, it have to put more financing sources into business venture by lack of information and limited types of ventures such as constructions or production and sale. But now, it has other options. People could venture in small business in online. The Online-shop provide small and medium vendors to sell their products without rent the shops. The cost and price margin is better for to entrepreneur and customers such as Ebay.com and Amazon.com. They introduce a product to customers and receive a commission from sellers. The evolution of entrepreneurship is become visual by evolved network and internet.(Theory)
This essay, topic of "All you need is money to be an entrepreneur", show and identify the relationship between entrepreneurship and innovation. And also, how to become an entrepreneur without much needs of money.
Most of people are working under the company because most of them think that starting a business is hard and risk taking. However, it is unknown to success or failure. So, many people think that is "starting a new business is like a gamble". (USA Today 2011) But, to win this "gamble" it has to back to business mind, clear evaluation and analyze of business plan is needed. To plan it, money; capital has to be consider.
"The money changes hands". The proverb that is use to saying by people. Money is a life living necessity that bring wealthy life living to people physically. In business use, it can be spend in wages, taxes, utilities, transportations, and rent a space and many other business activities. It is limited resource to individual that it has to be sufficient and spend on suitable business objective.
For business activities, IT business (sales) does not require much capital but some of businesses are require much more capital such as construction business. It requires heavy duty gears, many work force, massive raw materials and vehicles too.
It shows barriers in and difference in individual's skills and money. However, in nowadays, opening a new venture is easy by buying a website domain which cost $100USD and go to administrative department to sign a contract. (ByÂ Christopher Null 2008)
Of course, anyone can do it easily without much money. The entry barrier of business is become easy because of advanced technology. the barriers to entry of a business startup almost do not exist (Theory)
For that reason, I disagree that money is all I need to be an entrepreneur. Instead of money, there are other factors to be an entrepreneur to starting a business.
1) motivation and willingness
Every entrepreneur has objectives and goal in their mind. And that goal starts from the business idea that from his or her. A dream makes perfect picture and endure himself to be better entrepreneur. Successful business men has strong wills and motivated personality. Only way to motivate is yourself. When we want to seek for problem solving and solution, we need to motivate ourselves. As motivations and willingness reach fully, this will result better outcome for work performance and create ideas to work better. This strong mind set synergize the good business plans and endure difficult situation. (Toine Knipping)
Mrs. Fields for example, is a living description of a business starting out with just a dream. At 20 years of age, Debbie Fields only had with her a great chocolate chip cookie recipe and a dream, Mrs. Fields Cookies became one of the world's most recognizable franchises, with more than 600 stores in more than 10 countries worldwide (Mrs Fields, 2012). Her dream of making the freshest and finest oven cookie was fulfilled after her determination of making her cookie business work.
The business planning is essential for starting new business. A clear plan is key factor to accomplish the entrepreneur's dream to become reality. It also shows that the plan is written clearly and you know how much your are prepared and when can you decide to put your money on it. The perfect business plan makes you to feel confident and it can avoid the mistakes and risks. (Jan B. King 2003)
Having a business plan allows one to analyse markets and opportunities in realistic terms before attempting to secure financing to further develop the business (Mariotti, S and Glackin, C., 2010). According to Joseph R. (1985),"If your proposed venture is marginal at best, the business plan will show you why and may help you to avoid paying the high tuition of business failure. It is far cheaper not to begin an ill-fated business than to learn by experience what your business plan could have taught you at a cost of several hours of concentrated work". One need not fear if he does not have the money to start the business. With a good business plan, one should only worry about how to attract the investors and financial institutions to fund his or her business.
However, one cannot stick to the business plan completely. No matter how good a business plan is, it needs a good leader with the right traits to bring these good ideas to reality. Therefore, it leads us to the following points on the other components which an entrepreneur needs.
Innovation and Training
The Organization for Economic Cooperation and Development has found out that the high failures rates in the early stages of most enterprises, big or small, are because of the informality and the lack of originality (OECD, 2009). To ensure success, there has to be innovation. Today, entrepreneurship cannot occur alone without innovation, as it is seen as a tool or instrument used to exploit change as an opportunity (Mckeown, 2008). Advancement in technology is challenging the traditionalist thinking about IT, thus creating the need for researching about what promotes innovation (Max Planck, 2010).The "online"business environment generates opportunities for new business models, new ways to create value, and access to new markets on a global stage (Prof. Tan Wee Liang, 2002).
In order to survive in this knowledge-based era, entrepreneurs need to understand how they can inculcate an innovative culture into the business with the use of IT, for further development. As Julian E. Lange, associate professor of entrepreneurship at Babson College, has said, "For creative entrepreneurs with limited resources, the Internet offers significant opportunities to build new businesses and enhance existing enterprises." (Borton, W. 2008)Â
Therefore, entrepreneurs need proper training to obtain the core knowledge to improve their ability to innovate with scalable products or services which could provide with greater value in their businesses (Lorenzo Vicens& Sergio Grullon, 2011). According to Linda Yu (2004), "About one in five new businesses fail in the first 8 years, although this is largely due to the fact that entrepreneurs are not getting proper training". Hence it further proves that besides money, having proper training is required to become an entrepreneur.
Despite the many success stories of rising enterprises, big or small, not everyone is cut out to become an entrepreneur. Entrepreneurship is known to involve huge risks and uncertainty. What an entrepreneur needs is a high tolerance towards high degrees of risk and uncertainty. Looking at the global economy today, the financial crisis in 2008-2009 and the recent Eurozone crisis have affected many businesses, domestically and internationally. These crises were unplanned and uncalled for. Entrepreneurs will need to be able to react to these situations in a quick and calm manner and think about the next step.For example,(â€¦â€¦..). Although money is important at this point of time, but with bad planning, this money which is used to salvage the situation may end up going to waste.
Vision and Foresight
Having the vision and foresight is essential for every entrepreneur to recognize opportunities in the areas where others see as problems. J.P. Morgan recognizes the essentials of strong character and reputation in business. "The first thing is characterâ€¦ before money or anything else. Money cannot buy it." (Bittleston, J. 2012). A vision is necessary for an entrepreneur to paint a big picture of how the organization should become (Mariotti&Glackin, 2010). Drucker, P.F. (2005), further identifies entrepreneurs as people who see "change" as the standard, echoing Heraclitus of Ephesus, the Greek philosopher who said, "The only constant in life is change." Entrepreneurs should regard change as essential and welcome it as it is beneficial to the lives of big corporations and small businesses alike. With change, there is room for improvement. In addition, nothing is constant in the world. Technology, business practices, mind-sets and even rules are always changing. Taking Anita Roddick, founder of the Body Shop is a living example of an entrepreneur with vision and foresight, who started out as a dissatisfied customer. She was unhappy about how products were expensive because of the unnecessary perfume and packaging when she bought makeup. She aimed to turn this problem into an opportunity. Till date, (stats and elaboration).
In this essay, I had been looking forward into components to become an entrepreneur. As we can see, money is not only one to be an entrepreneur. Money is important part of it too. However, there are more important elements too. Such as motivation, planning, innovation and creative idea. Those are more importantly put in the parts of doing a business. As I evaluated on the top above, entrepreneurship is to create value in business that is
Based on the above evaluation, it can be seen that money is not the sole component of what it takes to become an entrepreneur. Instead, many other such as good character and having a good business plan take precedence. Entrepreneurs create new businesses, generating jobs for themselves and those they employ. In many cases, entrepreneurial activity increases competition and, with technological or operational changes, it can increase productivity as well. Innovations improve the quality of life by multiplying consumers' choices. They enrich people's lives in numerous ways - making life easier, improving communications, providing new forms of entertainment, and improving health care. Money is seen as a secondary need as the other components form the fundamentals of entrepreneurship, while money is used to backup and finance the business. As analysed earlier, money without any of the mentioned components will lead the business nowhere. A true entrepreneur should not be motivated by money. Instead, he or she should be driven by the success and process of doing it. Money should only be seen as the reward.
By Judy Keen, USA TODAY 28 November 2011
Toine Knipping (2012) Mind your business, Motivation page 79
Jan B. King 2003 Business plan to Game plans: A practical System for Turning Strategies Into action page3