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Money is essential in starting a business, and you may need it in registering a company, hiring employees, developing and advising your products. Some people may think that all you need is money to become an entrepreneur. However, money may obtained from not only entrepreneurship, but also from employment, lottery, and parents. It is that entrepreneurs make money, but money can not make entrepreneurs. In order to start your business, you do need money, but you can have it in cash on hand or from some financing works (Mariotti and Glackin, 2010). Financing is not having money on hand, but it is a method of gaining money from earning, debt, and equity (Lively, 2006). After you started your business, you will become an entrepreneur. Running the business will help an entrepreneur to make money and make his or her business in a better operation and organization. So entrepreneurs make money, and use it to invest and operate their business. The purpose of entrepreneurship is not just making profit, but also realizing his life goals. Entrepreneurs may start their business in the purpose of helping people or solving a problem, but they gained money from their effort. Thus, an entrepreneur need money to start a business, but what he or she needs is more than money.
Factors of Being An Entrepreneur
First of all, what entrepreneurs need is management. Management is the key to an organized business, and it determines the quality of recruitment and the efficiency of operation. The management of the entrepreneur is to set his or her company's pace and tone, and the entrepreneur need to not only set the disorganized employees from unsystematic to systematic but also govern employees to perform loyal and honest (Mariotti and Glackin, 2010). Unique business culture will be built through the managerial method. The essential factors of management is coercive, authoritative, affiliative, democratic, pacesetting, and coaching supervision (Mariotti and Glackin, 2010). Coerciveness needs entrepreneurs to command employees in a proper way, authority requires entrepreneurs to set the overall goal and be an expert, affiliation recommends entrepreneurs to build the business in teamworks with the right direction, democratism requests entrepreneurs to delegate the responsibilities moderately, pacesetting asks for entrepreneurs to work in a high standard performance, and coaching demands the entrepreneurs to train and give support to employees. Madam C. J. Walker, "the first self-made American female millionaire and one of the first African American millionaires," successfully managed two thousand agents by clustering them into clubs, setting goals with cash prizes, and encouraging agents opening their salons, and made herself become great entrepreneur (Mariotti and Glackin, 2010). Robert Khoo, President of Operations and Business Development", has made Penny Arcade a true business, by trading Penny Arcade into brands and expanding it into the market of books, games, clothings, and other products (Kotaku, 2012). His highly motivated spirit of working inspired employees to work motivatedly and efficiently.
Management is also need entrepreneurs to manage time. Starting out with a plan and not to scrambling to make up for lost time. Entrepreneurs often make a time schedule and balance themselves according to the time table. They also make a PERT chart (Program Evaluation and Review Technique), to help them organized their business (Mariotti and Glackin, 2010). According to Time Bao, "Arts of Balancing Between Health and Business in Time Management", Li Jia Cheng, a great successful entrepreneur in Hong Kong -China, managed his time succesfully, by a regular time table of himself and his business, and made him healthy and his business grow fast (2009). Andrew S. Grove, founder and CEO of Intel Cooperation, managed his time very strictly and efficiently. According to Susan, Grove's secretary, Grove's office is full of tables, which were linked to each other using different colored numbers and lines in a well-organized order, and the files in his small office are clustered in a clean and tidy way (Wen, 2004). Entrepreneurs need to operate and organize the whole business of their companies, so they need to work efficiently. At the same time, the business needs operating in a businesslike way so that it won't waste time in the regular procedures in case of losing the best time of developing and competing. In purpose of efficient operation, the entrepreneur needs to set the detailed tasks of project like location selection, registration, meeting with lawyer and accountants, creating statements, and installing technology. A good management of time will make entrepreneurs balance their works, and organize the business well in case of missing a to-do-task.
Secondly, what entrepreneurs need is leadership. Leadership is defined of a role of a leader who "creates a world to which people want to belong", related to "managing relationships and communicating within a team to move towards a specific goal, and "the ability to express a vision, influence others to achieve results, encourage team cooperation, and be an example" (Bean, 2006). It is an essential path to good management. An entrepreneur will need to corporate management by building his or her team in details. It is the ability to organize the employees, including staff and the CEO. Of course, entrepreneurs learn how to manage their companies and try to make the business well-organized. Good leaders know how their employees's work and the progress of their projects, as well as the funding balance of the programs. They are still good presenters, and the employees feel relaxed when they see their leaders. Moreover, leaders will show their existence everywhere, they may walk around the company, chatting with some employees. In this case, employees would glad to share their opinions and it is easy for leaders to find faults and problems in the business. Andrew SÂ·Grove, appealed "one hundred and twenty five percent solution", created sign-in sheet in order to motivate his employees and himself, made Intel Cooperation a hard-working industry, transferred the company's products from storage processor to microprocessor, and saved the company from the business competition (Wen, 2004). Jack Welch, Chairman and CEO of General Electric between 1981 and 2001, made General Electric grow fast. His leadership was showed in his innovation of the company's management by "Work-Out" activity, an activity that communicate teams and groups towards the specific business goal (Wen, 2004). The successful examples of the entrepreneurs show that leadership can survive the business in a crisis and make it better organized.
Thirdly, what entrepreneurs need is ethics. "Ethics are a system of morals or standards of conduct and judgment that help determine right from wrong. The Golden Rule -"Do unto others as you would have others do unto you" -is a well-known ethic" (Mariotti and Glackin, 2010). Ethics is the key for a business to exist long. The relationship between the business and its customers is quite similar as the relationship among people in our normal life. Honesty is the key point in dealing with people and maintaining their good friendship in a long term. If you cheat your friend, it will not only end your friendship, but also harm your reputation which may cause you lose some current friends and potential friends. Ethics, is the business terminology as honesty in friendship. Ethics builds the friendship between the entrepreneur and his or her customers. It requires the good quality of products, legal procedures, humanity of the business, and also respecting customers. Never cheat your customers like using a fake product or an inferior one. If you find the problem of your products, do call them back and apologize to your customers. In 1994, when the problem of floating in Intel microprocessor surfaced and caused ripples in Intel Cooperation, Andrew Grove spent 0.48 billion dollars ,which is almost half-year funding of Intel Cooperation research and five-year advertisement cost, to substitute all the microprocessors and upgrade the design of the processors, gained Intel Cooperation a good reputation and a bigger market (Wen, 2004). Ethics requests entrepreneurs be honest and be responsible, which will make the business develop.
Business ethics including "ethical employer and employee relationships" and "ethical corporate governance, meaning that these companies need to have rules and safeguards in place to ensure that executives behaved legally and ethically" (Mariotti and Glackin, 2010). Ethics will reflect the entrepreneurs personal qualities and thus will improve the entrepreneurs leadership because their employees like them. Treating the employees well, will motivate them to work hard and efficiently, since everyone likes to work with a good man. Employees will work happily because they know the ethical entrepreneur will bonus them by selling them a discounted company stock or give them general end-of-year bonus. Be ethic in operating the business will avoid corporate ethical scandals, which is fatal to the entrepreneurs. Many companies like Tyco, giant Entron dumped in one night due to continuously publishing inaccurate financial statement and using up employees pension to invest the company's stocks. This made the the crisis in the stock market, and left their employees nothing but tears. Therefore, business ethics is the guarantee for entrepreneurs to grow their business.
The least but not the last, funding is a significant for an entrepreneur. According to the survey of "Nature or Nurture: Decoding the DNA of the Entrepreneur", "the number one barrier for the entrepreneurial leaders to grow their business is access to finance" (Pinelli, 2011). Money is the basic element for the entrepreneurs to start and develop their businesses. All the procedures of business need money. Employees require salaries, research demand fundings, advertisement need money, and even the housing of a business requests rentals too. To start or expand a business, the entrepreneur needs to to researches, including its location, market condition, employment, decoration, advertisement and so on. There are many ways to finance other than having money on hand. Three basic ways of financing are "obtaining gifts and grants, borrowing money (debt), and exchanging a share of the business for money (equity)" (Mariotti and Glakin, 2010). Moreover, the last two methods of financing, debt and equity, are more popular than having money on hand. Entrepreneurs finance from earnings, equity and debt and use them into the business operation like starting or expanding.
In conclusion, there are some other factors other than money that you need to become an entrepreneur. You can obtain money from parents, employment, lottery, and other ways, but it does not mean you will become an entrepreneur. At the same time, you still need some other factors, management, leadership and ethics to step into entrepreneurship. Famous entrepreneurs like Andrew Grove started his company with no money in hand but borrowing, his ability in management and leadership made him become a great entrepreneur. Management determines the quality of recruitment and the efficiency of business operation, which is essential for an entrepreneur. Leadership creates a sound working environment and motivates the employees work inspiredly towards the business goal, so that the business can survive in a crisis and be well-organized. Ethics, the business terminology as honesty in humanity, builds the friendship between the entrepreneurs and their customers, and thus it will last the business in a long term. Funding is also an essential factor in business and an entrepreneur can finance with earnings, debt, and equity. Only when you owned all the factors like management, leadership, ethics, as well as funding in entrepreneurship, can you become an entrepreneur.