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In the current business environment the most of the stakeholders of organisations require to earn a profit through their business but there are a number of risks involving in the current business environment therefore anyone who makes strategic decisions for the organisation must concern about those risks as well. Here the entrepreneurship is the ability to build, organise and managing a business venture even with the risks with regard in it to make more profit. Economics point of view entrepreneurship is combined with labour or human resources, lands, capital as well as natural resources can produce a profit. The main body of the entrepreneurship is categorized by risk taking and innovation. Also this is a most important part of a country's ability to successfully in competitive and highly varying current business environment in the global market.
Managing of Entrepreneurship
Here to understand the process of entrepreneurship when starting a firm by after examining all the risks and uncertainties that are arisen in the business as well as the opportunities that are with the business. Here include innovation in new products and experimentation, processes and business models which are central to entrepreneurship.
Here is about the financing in entrepreneurship ventures by studying about the consequences of entrepreneurial funding decisions in both of the local as well as internationally.there are number of ways to get funding for an entrepreneurship such as bank finance which gives loans with an interest rate depending on the organisation but to give such loan there will be some rules and regulations in the same way there is something called Islamic finance which gives loan without any interest.Also venture capital finance can be used to get fund for the entrepreneurship.
Here is to understand the way how the entrepreneurship respond to context and shape of they environment operate by analysing the history of entrepreneurship of national borders as well as cultural context for current entrepreneurship.
Idea of Entrepreneurship
The main idea behind the entrepreneurship is to get more profit through entering to the market as a new player without any fear for risk through better planning, management and etc.in other words Entrepreneurial management is the planning of finding entrepreneurial knowledge and utilising it to rise up the effectiveness when starting up a new venture and managing small or medium sized businesses. Here the controlling of existing large companies is called as entrepreneurial control. In order to gain a positive result there should be a strong direction, guidance and clear idea about the thing that needs to be achieved, how it is supposed to achieve it, the opportunities and threats that are there.This I why the entrepreneurs should make sure they work with a clear strategy set to achieve a specific objective which includes specification of resources required. When an entrepreneur has got an idea or a concept that fulfils the needs of the society, it can be the base of a successful venture and this will be the idea of entrepreneurship.
Models of Entrepreneurship
Entrepreneurship is not only a one model but it has 4 different models of entrepreneurship. These are opportunist model, enabler model, advocate model and producer model. These are categorized based on the amount of resource authority and organisational ownership. Each module has a different approaches to entepreneurship.
Opportunist model is where the organisation has no deliberate approach to entrepreneurship and the resource authority is ad hoc and organisational ownership is diffused.
Advocate model is where the company toughly gets into entrepreneurship while business units provide the primary funding and the resource authority is ad hoc but there is a focused organizational ownership
Enabler model is the company offers funding and senior executive consideration to the new venture and there is a dedicated resource authority with a diffused organizational ownership.
Producer model is focused organizational ownership and here the company establishes and supports a full service and for the venture with dedicated resource authority and focused organizational ownership and here the company establishes and supports a full service.
Characteristics of Entrepreneurship
There will be number of characteristics when considering the characteristics of entrepreneurship. Self Confidence, feeling a sense of ownership, ability of proper communication, passionate about learning, a team player, dedicated, grateful, optimistic, gregarious, being a leader and etc. Self confidence comes through a better planning which decreases the level of uncertainty. It's also come up with the knowledge. And also work as a team player is the most characteristic in entrepreneurship because in order to success in the current global market team working is an important factor. Also having innovative ideas will help to gain competitive advantage over other companies. To better plan to have to make good strategies innovative characteristic is vital.
Causation and effectuation of Entrepreneurship
This model can be simply explain like giving some food items to a cook to make something out of it without telling what to do or how to make. Here the same as Without looking for what is commonly done by others, entrepreneurs can carry out according to the guidance or set of rules which guide the entrepreneur and help to find solutions for each risk or problems that are arised time to time. There are a number of different models that show the altered actions that can take in different scenarios arise with risk. But the main thing is in Causation model is that the entrepreneurs may not have a clear idea about the what they are doing. Entrepreneurs decide the most suitable solution by looking at the current and future situation without any predetermined solutions. On the other words model is following the general rules or guidance that can be followed to get different solutions as well as carry out different solutions according to those.
And then an entrepreneur will analyse the company environment including all internal environments, external environment, industry environment as well as the corporate environment. These analyses shows the different solutions for the each situation therefore the most appropriate solution must be taken by looking at competitors, availability of resources and etc. Not only when starting up the new venture, the entrepreneurs who are following prescriptive model for strategic management, will always get the use of different model like while carrying out operations also.
To start a new venture it is vital to recognize the most correct way to do business operations. when carrying out these business activities it is recent to management has to face different type of difficulties especially when starting up a new venture. if the owner and the management of the organisation may not have a enough knowledge and understanding about the different types of situations arise where they need to decide on the best solution which suits and goes in line with the strategy of the company. Here the entrepreneur will attempt to forecast the suitable solutions for the current problems and for the problems that can be arise in the future.But the difficulties that different entrepreneurs have to face when setting up a new ventures are most of the time the problems are same.therefore when a problem arises the entrepreneur can examine for the solutions generally used by other entities to their similar problems.When ever setting up a new entity most of the time entrepreneurs face the same set of problems such as financial issues, problems in setting up the process of operations, cultural matters employee problems, problems in the strategy, legal problems and etc. So there are solutions for all of these problems which were used by the previous entities when they faced the same problem. Based on this past evidence of other entrepreneurs can find solutions for the problems they currently faced. Here the entrepreneurs will be able to find out the approximate approach which solves the problem with minor restrictions for the process. This is called as a descriptive model
This may include problems such as issues in deciding on selecting the most suitable strategy for the new venture and issues in creating the most effective process which company needs to follow, financial issues arise against the planned activities, different difficulties arise from employee management and etc. So the owner and the management of the new venture can seek for the general solutions which were followed by the other companies when the same situation arose. This method where the entrepreneurs search for the solutions what others generally have done for same situation, is called as described or effectation model. This method will enable the entrepreneurs to seek the generally accepted solutions which will result in minor restrictions and lesser risk. So simply, what descriptive model does is, it describes the situation and what the entrepreneur can do with it. Deciding on what to do and how to do it is up to the entrepreneur. So if the entrepreneur is willing to follow the descriptive model, then he should have the ability to come up with the best solution after analysing the situation and possible options available.
Contrast of Causation and Effectuation
Even if these models are two different models and therefore these two have some Similarities as well as differences. When looking at similarities of these two, able to understand when looking at the overall view, Causation model is made to the entrepreneurs to seek for the things commonly do for the same circumstances while Effectuation model makes them focus on the things that suits for the different circumstances. But when considering the real life situations, it is obvious that the models describe under a Causation model which are generally used by other players as well, should be the best solution proven with several practical situations. Hence the both models which are used to fulfil the same needs.
When looking at these two models there are some differences as well. In prescriptive model, the effect is clearly stated while in the Effectuation model only some status is given. As mined in the given scenario this can be described through a process between a customer and a chef. Here if the customer selects a meal out of the menu, the chef only has to obtain the requirements and prepare the meal. This is the Causation model. in effectation model the customer asked the chef to make a meal from the ingredients already. The chef does not have a clear path to follow. This will be the main differences of two models.
Examples of Entrepreneurship
There are a number of famous example can be gathered about entrepreneurship such as Steve Wozniak and Apple Computers, Bill Gates and Microsoft, Sam Walton and Walmart.
Apple computers approach as a new player to the market by innovating new products such as iphone which is the only fully touch phone at that time hence they have to use an entrepreneurship model such as a causation model because they had to find their own solutions to products such as iphones.
On the other hand Bill Gates and Microsoft company provide the most user friendly operating system and other softwares by Entrepreneurship. also Sam Watson opened the walmart in 1962 and became the world's number one retailer.
In the current business environment entrepreneurship has become a very vital topic because the risk and the uncertainty in the current global business environment is at a very high level. It is also important to manage properly when carrying out an entrepreneurship of finance and its. And to carry out entrepreneurship there are a number of methods such as opportunist model, enabler model and etc. In order to be a successful player in the market, the management of the organisation should have the ability to manage both geographical boundaries. The market process definers can use their creativity in order to find out new markets or ways to grow the existing market without getting off of the market or struggling to stay in the market. As mentioned there are two methods called Causation and Effectuation. When understanding these two models, it seems like the descriptive model is the most suitable model to be followed in order to face the different conditions. However in the current market there are a number of players who get the leadership of the market due to entrepreneurship.