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"An entrepreneur is an individual who accepts financial risks and undertakes new financial ventures", (Wisegeek, 2009) also involves starting a new project, as well as trying new opportunities. The Word "Entrepreneur" had come from the French verb 'entrepredre', meaning to do something or to undertake. According to Jean Baptiste Say, "An entrepreneur is the economic agent who unites all means of production, land of one, labour of another and the capital of yet another and thus produces a product", (Kumar, Poornima, Abraham, Jayashree, 2003).
An entrepreneur must therefore select a feasible opportunity for a business, for this reason they must evaluate and understand the following gap between demand and supply, the SWOT of the business (Strength, Weakness, Opportunity and threats), investment opportunity and law's rules and regulations. Whereas, an entrepreneurship is a dynamic activity which helps an entrepreneur to bring changes in its production system, such as bringing more creativity and innovation within a product, which motivates the entrepreneur resulting in achieving strong motive. Therefore according to Peter F. Drucker "innovation is not only a servant of the marketing goals of the business but is, in self, a dynamic force to which the business contributes and which in turn affects it". (Peter F. Drucker. 2007.48-49).
Entrepreneurs in general are known to be the opportunity seeker, as they tend to identify, discover and select a business opportunity. An opportunity can be defined as a chance or prospect that an entrepreneur searches for and accepts the idea. However a good business opportunity must be able to cover feasible projects. Entrepreneurship is the process which involves being resourceful in order to find ways to obtain the resources required to achieve their main objectives (paggu.2009). This therefore gives an entrepreneur the ability to be motivated and have power to encourage the business to become successful, as they do not give up. Entrepreneur's main characteristic involves the willingness in order to make decisions and becoming motivated within the work they are doing. According to Landau entrepreneurs are high risk-takers, this is whereby they are not fearful and take the risk in opening up a business and hope to be successful in the future. What makes entrepreneurs unique is that they always thinking of new ideas and new ways to increase profit and expand their business, as they are not afraid to put their ideas into practice, which results in them identifying and measuring to fill the gap within the market, to achieve its motive in the enterprise. According to Peter F. Drucker "Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service". Innovation is also consists as one of the entrepreneurial characteristics as it " will change the customer's wants, create new ones, extinguish old ones, create new ways of satisfying his wants, change his concepts of value or make it possible to give him greater value". (Peter F. Drucker. 2007.48).
The major factor that is placed upon affects of entrepreneurial growth is "high demand". As this is always the pressure that is placed on the entrepreneur in order to survive, also be strong for the company and also finding ways to beat its competitors. Entrepreneurs also needs to time manage them selves in order to also have a social life as well as work, as this would help them relax as well develop their imagination away from work (Wickham, 2006). This therefore includes doing extra leisurely activities, spending time with families and friends. Another factor affecting the entrepreneurial growth is competition and lack or innovation. This is whereby the competitor affects the ability of the business to make profit, as competition will continually tend to differentiate their product and service in order to gain and provide better values.
"Marketing is the distinguishing, the unique function of the business" (Peter F. Drucker. 2007.33). Marketing is also the key aspect of identifying and meeting customer wants and needs. Marketing is considered to be one of the most important departments within an organisation as it works with the rest of the team to help determine the new products needs of the market. Marketing is used within every business, whether it's entrepreneurial or a small business. However it is used in different forms within different prospective, for example the marketing mix is used by every firm however it is mainly used within a small business. "The Marketing mix is generally accepted as the use and specification of the four P's describing the strategic position of a product in the marketplace" (zimbio.07). "Its elements are the basic, components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion" (Marketing Mix. 00-09). Whereas on the other hand, entrepreneurs' uses inbound marketing, this is whereby the style of marketing focuses on getting founded by the customers. Entrepreneurs use the simplest and cheapest form of marketing to promote their products and services in order to reduce the cost of the business also save time. Placing an advert of their product or service on social networking sites such as 'facebook' could be seen as one form of entrepreneurial marketing, where the advert will reach a wide target market who will get in touch with the owner in product or service. Entrepreneurs also create websites and use telecommunications to promote their business as this form of marketing also reaches out to a wide audience where they are able to obtain a vast majority of information about the product or service. This form of marketing makes it less time consuming and easier for customers and other businesses to purchase products as they do not need to travel. These form of marketing helps to boost both the sales revenue and profit of the business which is then invested back into the company in order to expand and create new products.
Both entrepreneurs and small business owners have their differences and similarities. An entrepreneur takes more risks also enjoys learning through growing, increasing revenues and expanding their business. Where as a small business owner, aims to render his service in an enterprise, which means they would have less risk, also less innovation as the majority of their products and services are mainly the same therefore less innovation is required. An entrepreneur is innovative which in turn gives customers a wide range of products to choose from in order to suit their ability. Entrepreneurs also segment their market geographically which mean reaching the audients from world wide, where as small business are mainly located for the local area. For this reason a small business owner have a very little potential for growth compare to an entrepreneurs due to the competition, low income and the strategy they use to market their products, also a small business owner may have employees which means they need be paid also expenses such as taxes and benefits. However an entrepreneur may choose to work independent contractor rather than having employees working for them. (extracted from the class notes).
In order for a business to be productive and profitable (including entrepreneurial enterprise) it needs to converts its input and outputs. This therefore means it will need to incorporate within its internal and external environment as these are the players inside and outside the business who can affect the business or could be affected by the business and benefit the business. The internal and external environment consists of the following, which also helps the business with its marketing programme.Â The SWOT analysis which is used to analyse both the internal and external aspects of the business and its environment, the SWOT also considered as the first stage of planning and helping the marketing department to focus on key issues. The SWOT stands for strengths, weaknesses, opportunities, and threats. The internal factors consist of the strengths and weaknesses where as opportunities and threats are the external factors. Innovation is seen as one of the key strengths within the entrepreneurial business sector, as they have the ability to be imaginative and create new products and services in the market which helps their business begin the marketing programme. Lack of innovation or undifferentiated of product or services could be seen as one of the weaknesses within an entrepreneur, as this could damage it reputation and could result into deficits or poor quality goods or service being produced which will slow down the production within the enterprise. Spotting opportunities is part of entrepreneur's characteristics, this therefore could consists moving into a new market segmentation which could improve profits, or developing new marketing such as international market. This is done in order to increase sales revenue, profits as well as gain better margin, which will improve the business reputation. Having competitors nearby, or having price wars with competitors would be a threats to an enterprise as customer could turn from you and buy your competitors products or service which results in a threat within the organisation as if this was to happen an entrepreneur will need to create and use their imaginative mind to produce a new and better product or service in order to win it customers.
Peter F. Drucker. (2007) The Practice Of Management. Burlington: Butterworth-Heinemann.
S.Kumar, S.C. Poornima, Mini K. Abraham, K. Jayashree. (2003) entrepreneurship Development [online] P.1 K.K. Gupta. New Delhi. Available at http://books.google.co.uk/books?id=REJjANEnzVYC&pg=PA24&dq=scope+of+an+entrepreneur#v=onepage&q=scope%20of%20an%20entrepreneur&f=falseÂ [accessed 6 December 2009]