When children of Bill Gate grow up, they will certainly start their own business. Its not about their intentions to follow their father's footsteps because their alibility to manage business successfully may relate to entrepreneurship knowledge and other natural factors. Obviously, solid knowledge would support potential entrepreneurs to initiate businesses at correct market segment so may leverage their innovative products to compete with other rival. On the other hand, entrepreneur mindset offers people with clear visions on market opportunities and design tactical strategy to exploit economic opportunities (McKenzie, 2007). Many scholars have debated whether successful business owners mainly rely on entrepreneurship education to manage their own businesses or personal characteristics are the most vital elements in growing personal businesses. Therefore, this report aimed to investigate the influences of entrepreneurship traits and knowledge on managing private businesses. After analysing dedicated theoretical and statistical researches, the report strongly agreed that successful entrepreneurs are nature instead of nurture.
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Researchers have different views regarding to the definition of entrepreneurs. According to Gartner, the author of "'Who Is an Entrepreneur? ' Is the Wrong Question" article, entrepreneurship are new businesses establishment activities (McKenzie, 2007). This definition has been widely accepted due to its simplicity and associated statistical research method. However, this definition was critically criticized because it didn't cover external exposures (McKenzie, 2007). For example, it didn't mention either about the external economic movement which would strongly influence the decisions to become business owners or how potential entrepreneur behave based on their own beliefs and knowledge (McKenzie, 2007). Researchers have recently found out that entrepreneurship is about contingency, creativity and organization innovation rather than solely business establishment (McKenzie, 2007). Therefore, entrepreneurs might be clearly defined as person or people who are seeking and taking advantages of both existing and potential market opportunities (McKenzie, 2007).
Critical discussion on influences factors on entrepreneurs
Money has become an important factor in all business stages. Firstly, initial capital is necessary for potential entrepreneurs to establish their own businesses. For example, Nielsen family sold their wood cabinet manufacturing business in order to raise initial capital to establish Westwind Hardwoods Inc in 1994 (McKenzie, 2007). The company focused on advertising qualified lumbers and was radically grown into a popular example of successful family business in Canada & US (McKenzie, 2007). Obviously, the owners of the company might not switch its business objectives without raising sufficient initial capital because it's costly to hold qualified lumbers in their showroom. Secondly, capital is a critical factor to finance and sharp competitive advantages. Actually, firms will be able to expand its distribution networks and archive economy of scale by producing in bulk to save manufacturing expenses if they are able to increase its owner's equities. Moreover, strong capital allows firms to provide flexible trade credit terms to their suppliers while they impose higher bargaining powers on their suppliers and competitors. Furthermore, entrepreneurs might attract the top talent executives in the market to join their teams by providing attractive salary (Nilsson, 2012). Therefore, money becomes a critical factor for entrepreneurs in managing and growing their businesses.
Entrepreneurship education was originated from UK in 1970s and it has become global trend due to rising demand from students and societies. Its idea is based on the idea of freedom and opportunity for people to establish a business and define themselves as entrepreneurs (Matlay, 2008). Thus, Governments and universities join their hands to implement dedicated policies to develop entrepreneurship education to meet rapid changes in global economy. In developed countries, entrepreneurship education is designed and delivered in business schools because they offer potential entrepreneurs with courses which have a higher propensity to become successful entrepreneurs later on (Matlay, 2008). According to the recent empirical research, researchers found out the positive relationship between attending famous MBA programmes with engaging in successful business establishment so education has become the crucial factor to decide the success of most business owners (Matlay, 2008). In fact, most MBA courses require students to have dedicated working experiences so they would be able to create synergy benefits by combining practical experiences and innovative learning methods. For instance, experienced MBA students improve their knowledge structure with external contextual exposures so they are certainly in advanced positions to deal with common sense issues in practical business environment (Matlay, 2008). Therefore, business schools obviously proved their capabilities in providing student with benefited course to strengthen their entrepreneurship knowledge so they are ready to start their own enterprises profitably upon graduation.
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Researchers have also raised several questions about the creditability of business schools in ensuring the potential successes of business owners. They argued that traditional teaching method, which is focus on solving theoretical issues within classrooms, is incompatible with the requirement of entrepreneurship education (Matlay, 2008). In fact, many business schools are misleading between teaching entrepreneurship subjects and general overview of entrepreneurship subjects so their students may not be able to match provided theories with real business decisions (Nilsson, 2012). Therefore, business schools switched from theoretical teaching into combination of theory and field works to meet latest education requirements. For example, US universities are focusing on guiding student to create and adjust their business plans based on their internal resources and external exposures because business plan is the most important function of the enterprises education (Jones & Iredale, 2009). As a result, detailed analysis of entrepreneurial problems are aligned with real case study to provide potential business owners with basic economic mindset so they would utilise provided knowledge to solve common business problem at initial stage of their businesses.
Besides entrepreneurship education, the successes of potential business owners are influenced by internal factors such as personal characteristics and generic. According to Scott Shane, the author of the journal named "Born Entrepreneurs, Born Leaders"; personal genes take important roles in careers and job selection (Akst, 2010). He found out that personal genes decided the work interest, value, job satisfaction, personal performance of over 30% of total sample (Akst, 2010). The effect of personal genes is also reflected through personal characteristics of potential business owners. For example, potential business owners also have common characteristic of a leader such as openness to feedbacks, self-confidence and lack of agreeableness (Akst, 2010). Scholars suggested that entrepreneurship and working behaviours were generally based on the relationship between personalities and cognitive ability, then genetic elements would play the greater roles in making potential entrepreneurs (Akst, 2010). For example, researchers confirmed that adopted children are more likely to select jobs accordingly to their real parents, who have the same biological elements with them (Akst, 2010). In another example, Sophy Hallam, a business consultant, indentified that a few students were more entrepreneurial than others naturally (Hallam & Seebohm, 2007). Furthermore, potential entrepreneurs personally possess creativity, negotiation, networking and exploiting opportunities skills, which didn't come from teaching classes (Hallam & Seebohm, 2007). It could be due to the differences in the Testosterone levels between students. Researchers suggested that entrepreneurs have higher levels than computer programmers and teacher on average (Hama, 2010). Finally, it's interesting to note that major human races could influence the heritable traits including personalities, cognitive abilities (Hama, 2010). In the other words, different races may lead to difference working behaviour because one race tend to works better than others for the same job position (Hama, 2010). Consequently, the success of potential entrepreneurs could come from their biological factors and races.
Entrepreneurs are born, not made
Researchers have spent years to debate whether they could develop dedicated education programs to produce business owners massively or personalities of entrepreneurs are dominant factors to secure their successes. Then, the main debate point would be relevant to the effectiveness of entrepreneurship education programs which have been conducted by business schools around the world. In the previous section, this report indentified general advantages of entrepreneurship training such as business knowledge provision, integrated benefits by combining theoretical classrooms with solving practical case study and scenarios. However, there are three critical issues of entrepreneurship education system which strongly discouraged the idea of "entrepreneurs can be made"
Firstly, although universities have been struggling to reform their education program and increasing the pay wage of business lecturers significantly, the effectiveness of this approach was far under-expected due to low lecturer's performance (Atkinson, 2012). According to study of Raytheon Company, rising lecture wage didn't lead to higher teaching quality but simply expanded the candidate pool (Atkinson, 2012). Scholars may insist that universities may be able to select qualified lecturers from larger candidate pool but there haven't been any empirical researches to support that statement (Atkinson, 2012). Similarly, education researchers, Eric A. Hanushek and Steven G. Rivkin, conducted statistical research about Texas education system in 2007 and they found the same result as above (Atkinson, 2012). Actually, they recognize that higher salary imposes very limited heed to lecture's performance. Moreover, education researchers, Douglas N. Harris and Tim R. Sass, found out no or limited relationship between advanced degrees and lecture's effectiveness in business school (Atkinson, 2012). As a result, universities may not transform their teaching methods if lecturers are underperformed, even when they receive higher salary or acquired higher qualifications.
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Secondly, global financial difficulties may lead to sharp reduction in personal autonomy, which erode the entrepreneurship education performance. Individual and customized learning experiences are core elements of the education, which encourage self-development in unique situation to each student (Marco, 2010). For example, students are used to put in the positions to solve unique issues in enterprise subjects such as creating service advertisements, analyse business and financial performance of target companies in merge & acquisition deals, writing feasible business plans (Matlay, 2008). Consequently, they will personally develop solid knowledge to cope with common risks when then start their business .However, businesses schools have to reduce budgets due to financial difficulties enforce them to implement higher standardization and shrink attention to the autonomy of students (Marco, 2010). As a result, lacking autonomy will boost the failure rate for potential business owners significantly due to lacking capability to deal with practical uncertainty and external risks.
Finally, there is certain relationship between practical experiences of both students and lecturers with education outcome in business school. For example, most MBA courses suggest students to have contextual experiences before taking MBA courses in order to develop tactical knowledge structure (Matlay, 2008). Unfortunately, inexperienced students who are required to solve contextual case studies will be likely to feel irrelevant or dismiss dealing these issues as common senses (Matlay, 2008). Moreover, experience businessman or senior lecturers will have to spend huge amount of time and efforts, which are beyond the teaching scopes in universities (Matlay, 2008). Furthermore, traditional teaching skills are important but not sufficient to train potential business owners. For instance, students should be actively exposed to various business simulation and scenario so they could develop determination and autonomy to overcome difficulties. Consequently, practical teaching methods and experiences could become obstacles to harm the performance to entrepreneurship education programs.
In conclusion, this report strongly disagreed with the statement that successful entrepreneurs could be made by attending relevant education programs. Although initial capital is a crucial factor to start and refine competitive advantages, dedicated knowledge and natural factors fairly contribute to the success of potential entrepreneurs. Recent researches found out that the success rate for educated entrepreneurs has been increased recently due to education reforms. However, there are several critical flaws with education reform project such as reducing attention to student's autonomy, practical experiences, quality of lectures and inefficient teaching methodology has eroded the effectiveness of enterprises education. On the other hand, biological elements such as genes, personalities and human race statistically contribute to the success of potential business owners. Therefore, this report agreed with the statement "entrepreneurs are born, not made".