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The setting up of McDonald's, however, was entrepreneurship. McDonald's did not invent anything new; its final product was what any decent American restaurant had produced years ago. But, by applying management concepts and techniques (for instance, by asking what is 'value' to the customer), standardizing the 'product' across all locations and countries, designing processes and tools, and streamlining training on the analysis of the work to be done and then setting the standards it required, McDonald's both drastically upgraded the yield from resources and created a new market and a new customer base. This is entrepreneurship.
Admittedly, all new small businesses have many factors in common. But, to be entrepreneurial, an enterprise needs to have special characteristics over and above being new and small. It needs to create something new, something different that would change the rules of the game and transmute values.
A business enterprise does not need to be new and small to become entrepreneurial. In fact, entrepreneurship is often being practised by large and often old enterprises. The General Electric Company (GE), one of the world's largest businesses and more than 100 years old, has a long history of starting new entrepreneurial businesses from scratch and raising them into sizeable industries. GE has not confined itself to entrepreneurship in manufacturing. Its financing arm, GE Credit Corporation, was largely responsible for triggering the upheaval that transformed the American financial system which has now spread to several countries worldwide. Marks and Spencer, the large British retailer, probably has been more entrepreneurial and innovative than any other company in Western Europe in the last 50 years and may have had greater impact on the British economy and even on the British society than any other change agent in Britain. Again, GE and Marks and Spencer have many things in common with large and established businesses that are totally non-entrepreneurial. What made them 'entrepreneurial' are specific characteristics other than size or growth.
We have several entrepreneurial examples in India too. Reliance Industries Limited (RIL) started first with its textiles business in Naroda, Gujarat, and then gradually went on to diversify and set up new entrepreneurial businesses - polyesters, fibres and fibre intermediaries, chemicals, polymers, petroleum products, telecom, energy, finance, and others - in a relatively short span of 25 years. In the information technology sector too, there are some notable examples such as Infosys Technologies, Wipro InfoTech, Tata Consultancy Services (TCS), and Satyam. In the telecom sector, there are similar examples such as Bharti, Reliance Infocom, and the Tatas.
Let's understand the concept of Entrepreneurship taking a case example of Lord Karan Bilimoria and his successful venture Cobra Beer Empire.
Karan Faridoon Billimoria is one of the UK's most popular and recognized entrepreneurs. His commitment to championing enterprise and entrepreneurship coupled with his contributions in giving back the community led to his being appointed as a crossbench peer in the House of Lords. Karan features as 'an unstoppable character who negotiates brewing in Bangalore and importing to the United Kingdom, who cold-calls on Indian restaurants and supermarkets with cases of the beer in his tiny Citroen, and who turns these unpropitious beginning during a recession into a award-winning, fast growing company and a global brand with continuous penetration of new international markets is certainly a person who encapsulates the romance, challenge and triumphs of entrepreneurship.'
Lord Karan Bilimoria
Profile and Success Story of Cobra Beer depicted from his own book "Bottled for Business - the less gassy guide to entrepreneurship"
A law graduate with a debt of £20,000, Bilimoria spotted the need for a smooth lager to complement spicy food. He negotiated brewing in Bangalore and importing to the UK. He began by cold-calling on Indian restaurants and supermarkets with cases of the beer in his tiny Citroën! Karan turned these challenging beginnings during a recession into a prize-winning, fast-growing company and a global brand constantly breaking into new international markets. As a result, Karan is renowned as someone who encapsulates the challenge and triumphs of entrepreneurship.
The Cobra brand has a current retail value turnover of £178 million, is sold in nearly 6,000 Indian restaurants, and is available in more than 6,000 bars, pubs and clubs and thousands of leading multiples, supermarkets and off-licenses throughout the UK. It has been exported to over 45 countries worldwide, and in 2009 Cobra Beer entered into a Joint Venture with Molson Coors, the largest family owned brewer in the world. In 1999 Karan launched the General Bilimoria Wine brand which is now the house win in maximum of Indian restaurants.
Having qualified as a Chartered Accountant with Ernst and Young, London, and graduated in Law from Cambridge University, Karan Bilimoria developed a less gassy, premium lager brewed to perfectly appeal to both ale drinkers and lager drinkers alike and to complement food. Fifteen years later, Cobra Beer is one of the fastest growing beer brands in the UK and was ranked in the 1999 Sunday Times Virgin Atlantic Fast Track 100, a list of the UK's fastest growing unquoted companies. Cobra Beer was awarded two Grand Gold Medals and nine Gold Medals (more than any other beer company in the world) at the 2005 Monde Selection, Brussels, World Selection of Quality Awards. Monde Selection also presented Cobra with the International High Quality Trophy in 2003 for its achievements.
Karan Bilimoria is the charismatic entrepreneur whose tenacity as founder and chief executive has kept the brand on the path to international growth, achieving a £60m turnover on the way. Cobra's success has made him one of the most admired business people in the UK. His appointment as a Visiting Entrepreneur, attached to Cambridge University's Centre for Entrepreneurial Learning, is proving a real boost to MBA students at the Judge. Not only do they study his company's meteoric rise in the abstract, but they can explore the twists and turns of the story face-to-face with Cobra's creator himself during his regular visits to the school.
General Bilimoria Wines
In 1999 Karan launched the General Bilimoria Wine brand with wines produced in France. The brand is now the house wine of hundreds of restaurants, including being listed in top Michelin-starred restaurants. A range of South African wines were added to the General Bilimoria portfolio in 2002, and a Spanish range was added in 2004.
Karan's talents and contribution to British industry have been widely recognised. In the year 2004 alone he received the London Chamber of Commerce and Industry award for Business Person of the Year, the Royal Society of Arts Albert Medal, the Sage Business and Daily Telegraph award for Best Business Leader, the National Business Award for Entrepreneur of the Year, the Pride of India Award from the Non Resident Indian Institute, and a CBE in Her Majesty the Queen's Birthday Honours List. In the two preceding years he was similarly singled out for the excellence of his company, his products, and his commercial leadership with honours ranging from the Monde Selection International High Quality Trophy for his company, to Asian of the Year and the Outstanding Achievement Award from the Executives Association of Great Britain. In June 2006, Karan was appointed The Lord Bilimoria, of Chelsea. In 2007, Karan was named Honorary Fellow of his Cambridge College, Sidney Sussex. He is Chancellor of Thames Valley University - the UK's youngest at the time of his appointment.
Enthusiasm for fresh ideas, creativity and innovation lie at the heart of his philosophy and is something that he seeks actively to encourage amongst others. This that can be seen in the way Karan Bilimoria structures and runs his business. Visionary himself, he conveys the importance of letting the creativity of others flourish too. He energizes his staff, teaching them how to see the market gap with such devices as an Innovation Task Force and Idea of the Month Competition. The open office culture he has created fosters interaction, the sharing of ideas, and an enthusiasm for taking responsibility and turning vision into reality. The results have an impact far beyond the company's walls. As Karan Bilimoria has proven, striving to be different and better not only develops your product but ultimately changes the marketplace itself.
Such a positive managerial style is based on a deep respect for people. Karan Bilimoria teaches this through his trust in his workforce - there is a low staff turn-over, and many who leave return because they have missed the stimulating "buzz." His company has the Investors in People award, and was ranked by the Sunday Times as one of the top fifty small and medium sized enterprises to work for.
Making Innovation Happen
Karan Bilimoria believes in an organisation having culture of restless innovation. Bilimoria in his book Bottled for Business proposes that 'entrepreneur should be aware of how important innovation is, they must recognise that being innovative is one of the key factor of success, to a growing brand, and growing a business. Second is the state of mind - it is an attitude.' One must have the confidence to innovate and to encourage around you to constantly innovate, then make to innovation happen. That links into creating an environment in your business where you are constantly encouraging people to come up with ideas, and constantly encouraging people to enable those ideas and make them happen.
At Cobra Beer, Karan likes in keeping an open atmosphere in the office with very few rules, where people are encouraged from all parts of the company to come with ideas and make them happen. To encourage this activity, Cobra Beer uses the mechanism of 'idea of the month' where the employees can put their suggestions or business to increase the market for the corporation. An important of this process is not just the aspect of generating ideas, but that the process makes everyone in the company feel a part of overall business. It helps in developing the intrapreneurship qualities and helps in having a more open environment, which results in more innovation.
Another part of making innovation happen, says Bilimoria, is to pay attention what the competitors are doing. It is very important to note that you are not copying or imitating. He says that Cobra team has always tries to do its own things. It is an attitude of always looking ahead, being aware of competition. The only way to stay ahead is to always be one step ahead of the competition. (Source: Bilimoria & Coomber 2007, Video interviews, Articles)
Some Business Lessons on Entrepreneurship from Karan Billimoria to build a Successful Business Empire.
Thousands of people have good ideas, but how many of those ideas are ever translated into a business? Not many. The key is the entrepreneur. A good entrepreneur will find the right idea, maybe not the first time, and then find the resources to take that idea and build a business from it. The question then is, and it is one that has been asked countless time: what makes a good entrepreneur?
Different people have different takes on this thorny issue. Business academics will tell you that, even if you can't teach a prson to be entrepreneurial, you can equip them with the skills they need to successfully start, run and grow a business. But that's not really an answer. Billimora, on the other habd, has a very clear idea of the qualities required to create a successful business; the qualities that have enable him to start his venture and take it all the way through to the £ 110m business it is today.
The ability to be creative
The first thing Bilimoria singles out is the ability to be creative. If your heart sinks when you read this, then you may be heartened to know that being creative does not necessarily equate with being good at art at school. Creativity is something that many people do not even realise they possess.
'It is very important to think about creativity not as an isolated activity done in some kind of creative silo,' says Bilimoria. 'It is a not a question of, "Right, I'm going to be creative now." Instead, strange as it may sound, it is a way of life. It is about being constantly engaged in everything you are doing. All the time try to think original and new and different ways of doing and approaching things, driven by the knowledge that if you tackle life in this way you can add value and make a difference.
Going the Extra Mile
Entrepreneurs must always go that one step further, says Bilimoria. You are not just going to do things because they have been done a certain way; you never accept things just because they have been done a certain way; you never accept things just because this is the way they are done. You are always trying to see if it can be done better in some way, or if you can take things further.
As an entrepreneur you must have confidence in your own abilities, as ell as the abilities of others. So you need a ability to build a team around you. By 'team' Billimoria does not only mean internal teams within the company, but also a team of external advisors, who believe in your ideas and are willing to go that extra mile for you, whether they are your lawyers, accountants, advertising agency or factoring agency.
"There is an element of luck, no question about it, but you make your own luck as well - you have got to be out there looking for the luck."
Bilimoria says that "being an entrepreneur means being a self-starter - which means always taking the initiative - no one is telling you what to do. It is not like working in a large structured organisation where there are people telling you what do, as well as people you can consult about the proper way to carry out a task. As an entrepreneur, certainly at the start, you will be on your own for a lot of the time. And being a self-starter requires discipline".
Creating a successful business means always being willing to work that much harder. There is no substitute for hard work, drive, determination, persistence, and perseverance. Bilimoria cites the indomitable spirit of Winston Churchill encapsulated in this excerpt from one of his famous speeches: 'Never give inâ€¦-in nothing, great or small, large or petty - never give in, except to convictions of honour and good sense.'
A constant desire to learn:
"If you go and attend a course at a business school regularly, for one you are getting away from your business and that stepping aside in itself is beneficial. You are meeting with other business people, so you are learning from each other and each other's experiences and you are learning from whatever is on the course. More often than not, I find that when I come back from these courses not only do I feel refreshed and invigorated but I come up with huge amounts of ideas."
"It is an attitude of always looking ahead, of not always looking over your shoulder; not being scared of the competition but being aware of the competition, using the competition to spur on innovationâ€¦ by being constantly innovative by the time people have copied you, you have moved on."
Never taking 'No' for an answer
"Your job is to convert that 'no' into a 'yes'. Your job is to convert threats to opportunities. Your job is to convert frustration to opportunity. Your job is to convert obstacles to opportunities. And you learn to do that throughout building a business." (Source: Bilimoria & Coomber 2007, Video interviews, Articles)
SIGNIFICANCE OF PURPOSEFUL INNOVATION
Something similar would need to be done with respect to innovation. Entrepreneurs will have to learn to practise systematic purposeful innovation. Successful entrepreneurs do not wait for a bright idea to strike; they do not look for the big time innovation that will revolutionize the industry they are operating in nor do they work to create a multi-billion dollar business. Therefore, those entrepreneurs who start out with the idea of making it big and thus are in a hurry are probably destined to fail because they are bound to do wrong things. An innovation that looks very big may turn out to be nothing more than technical virtuosity while the one with modest intellectual pretensions, a McDonald's for example, may eventually turn out to become a gigantic and highly profitable business.
Successful entrepreneurs, whatever their individual motivation - be it money, power, curiosity or a great desire for fame and recognition - try to create value and make a tangible contribution. It is true that successful entrepreneurs aim high; they are not content simply to improve on what already exists or to modify it. They try to create new and different value propositions to convert a 'material' into a 'resource,' or to combine the existing resources in a new or more productive configuration. And, it is this change that always provides the opportunity for the new and different.
In an interview with Anita Samtani of Geeta Foods Ltd, she said that entrepreneurship encompasses of three factors: Mindset, Actions, Process.
Mindset: Entrepreneurs go through the world continuously seeking ideas and opportunity that can be commercialized. They focus on innovating, doing things better, and adding, creating, and delivering unique value to customers and to all stakeholders. And they want to be rewarded for their success. The more value thy add, the greater their financial rewards.
Actions: Entrepreneurs are proactive to the extreme, and once on the opportunity trail, they move mountains to mobilize the necessary resources to accomplish their goals. And then, they just do it their own way.
Process: Entrepreneurship is a dynamic, continuous, living process. The process is driven by you, the entrepreneur, the founder, the champion. As you build your money machine, you will take the following actions:
Generate ideas incessantly.
Select the real opportunity from th heap of ideas.
Build and empower the team.
Mobilize and control necessary resources, regardless of whether you own them.
Develop and astute strategy to capture customers and to generate sales and sustainable profits.
Develop a compelling business plan
Harvest the rewards of success: sell your business, list your company, or build your venture and pay yourself appropriate and generous compensation.
In the current era of rapid change, the success of a business will clearly depend on how much the top management encourages and practises entrepreneurship and innovation. If the enterprise does not innovate, it will inevitably age and decline rapidly. Sometimes, successful and financially healthy businesses do run the risk of becoming bureaucratic and complacent which could become a serious impediment to entrepreneurship and innovation.
However, we must understand and appreciate that entrepreneurship is not 'natural;' it is not 'creative.' It is hard work as opposed to what conventional wisdom would like us to believe. Entrepreneurial businesses treat entrepreneurship as a duty. They are disciplined about it; they work for it and religiously practice it.
Specifically, entrepreneurial management requires and practices in four major areas:
The organization must be such that it is receptive to innovation and views change as an opportunity rather than a threat. It must be organized in a manner that it is willing to take up the challenge and do the hard work of the entrepreneur.
The pre-requisite for this would be to have appropriate policies and practices to create the entrepreneurial climate. For example, to make innovation attractive to managers, it would rather be essential to have a policy of abandoning whatever is obsolete, unproductive, and outworn as well as mistakes, failures, and misdirected effort. It is very important to recognize the fact that all the existing products, services, markets, distribution channels, processes, and technologies have limited health and life expectancies.
It must be made mandatory to have systematic measurement or at least appraisal of the company's performance as an entrepreneur and an innovator. Peter Drucker (1964) in his book Managing for Results has termed this measurement as 'Business X-Ray' which provides the information needed to define how much innovation a given business requires, in what areas, and within what time-frame.
Entrepreneurial management would require appropriate human resources policies and practices with regard to leadership style, organization structure, talent management, reward and recognition, compensation and incentives, and work culture and work practices.
The best way to ensure that new and innovative ideas do not die out due to sheer neglect is to set up the innovative project from the start as a separate business. In the US, P&G, 3M, and Johnson & Johnson have always set up a new venture as a separate business from the beginning under a full-time project manager. The project manager remains in charge until the project is either abandoned or has achieved its objective and become a full-fledged business. Until then, he can mobilize all the skills as needed - research, manufacturing, finance, marketing and so on - and put them to work in the project team. Till the innovative idea takes off as a profitable venture, the unit must not be allowed to shoulder any burden of the existing business nor any member of the project team drawn into issues relating to the existing business.
A large manufacturing company in India had entrusted the responsibility for new product development and innovation to the line managers who were running the existing business. The company had managed to develop quite a few variants of its existing products but had not been able to launch a single niche breakthrough product in the last several years in spite of having an enviable world-class process technology.
The entrepreneurial management of an existing business should not do the following:
It should never mix the existing managerial units with the entrepreneurial ones.
It should not make innovation an objective for people who are responsible for running, exploiting, and optimizing the existing business.
It should avoid innovative efforts that take the existing business out of its own field as they are rarely successful.
It would be unwise on its part to acquire a small entrepreneurial business in order to make the acquiring company's business entrepreneurial. Such acquisitions are normally not successful unless the acquiring company is willing and able to provide appropriate leadership and management to the acquired business.
Some essential entrepreneurial power skills
Being an entrepreneur is about more than just starting a business or two, it is about having attitude and the drive to succeed in business. All Entrepreneurs interviewed have a similar way of thinking and posses several key personal qualities that make them so successful in business. Successful entrepreneurs like the ambitious Richard Branson have an inner drive to succeed and grow their business, rather than having a Harvard Business degree or technical knowledge in a particular field.
QUALITIES OF A SUCCESSFUL ENTREPRENEUR
Inner Drive to Succeed
Entrepreneurs are driven to succeed and expand their business. They see the bigger picture and are often very ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in the way.
Strong Belief in themselves
Successful entrepreneurs have a healthy opinion of themselves and often have a strong and assertive personality. They are focused and determined to achieve their goals and believe completely in their ability to achieve them. Their self optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focused to spend too much time thinking about un-constructive criticism.
Make good decisions:
The ability to make good decisions is essential to success in business and personal life. Bad decisions lead to non-success. Systematic approach to make good decision is setting out a decision statement, specifying the ideal, classifying and weighing the criteria, stating the alternatives, evaluating the alternatives projecting future consequences and making choice.
Search for New Ideas and Innovation
All entrepreneurs have a passionate desire to do things better and to improve their products or service. They are constantly looking for ways to improve. They're creative, innovative and resourceful.
Openness to Change
If something is not working for them they simply change. Entrepreneurs know the importance of keeping on top of their industry and the only way to being number one is to evolve and change with the times. They're up to date with the latest technology or service techniques and are always ready to change if they see a new opportunity arise.
Competitive by Nature
Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self imposed high standards is to compete with other successful businesses.
Highly Motivated and Energetic
Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed and have an abundance of self motivation. The high standards and ambition of many entrepreneurs demand that they have to be motivated!
Accepting of Constructive Criticism and Rejection
Innovative entrepreneurs are often at the forefront of their industry so they hear the words "it can't be done" quite a bit. They readjust their path if the criticism is constructive and useful to their overall plan, otherwise they will simply disregard the comments as pessimism. Also, the best entrepreneurs know that rejection and obstacles are a part of any leading business and they deal with them appropriately.
True entrepreneurs are resourceful, passionate and driven to succeed and improve. They're pioneers and are comfortable fighting on the frontline The great ones are ready to be laughed at and criticized in the beginning because they can see their path ahead and are too busy working towards their dream.
An interview is being conducted to the some entrepreneurs of Small and Medium enterprises.
5. Conclusion and Recommendation
The study has examined the information required for starting a new successful business through Entrepreneurship and Business Innovation. The research design was based on a constructivists/interpretive/qualitative paradigm, which was developed to understand the concepts of entrepreneur, entrepreneurship, business innovation, key aspects of entrepreneurship such as entrepreneurial orientation, entrepreneurial process, intrapreneurship, etc., while starting a new venture. It suggests that what different entrepreneurship qualities and practices encourage an entrepreneur to foster his idea into money making machine called successful business. What qualities entrepreneur possess and what thrives them start their own venture.
A research was conducted by analysing different case studies on successful business and entrepreneurship and the findings were encapsulated in chapter four. The Conclusion below answers the question being framed in chapter 1 to conduct a research on the stated topic.
Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise. Entrepreneurship is a creative activity. It is the ability to create and build something from practically nothing. It is a knack of sensing opportunity where others see chaos, contradiction and confusion. Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive benefits by setting up a venture. It comprises of numerous activities involved in conception, creation and running an enterprise.
According to Peter Drucker Entrepreneurship is defined as 'a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation.'
Entrepreneurship is a discipline with a knowledge base theory. It is an outcome of complex socio-economic, psychological, technological, legal and other factors. It is a dynamic and risky process. It involves a fusion of capital, technology and human talent. Entrepreneurship is equally applicable to big and small businesses, to economic and non-economic activities. Different entrepreneurs might have some common traits but all of them will have some different and unique features. If we just concentrate on the entrepreneurs then there will be as many models as there are ventures and we will not be able to predict or plan, how and where, and when these entrepreneurs will start their ventures.
Entrepreneurship comprises of three underlying dimensions: innovation, risk-taking, and proactiveness (Drucker, 1985; Hills & Morris, 1998). Within this ideology, innovation refers to the seeking of creative, unusual, or novel solutions to problems and needs. This includes the development of new products and services, as well as new processes and technologies for performing organisational functions. Risk-taking involves the willingness of the entrepreneur to commit significant resources to opportunities that could lead to failure. These are risks, which are perceived as calculated and manageable. Proactiveness is concerned with the implementation and creation of events. Hills and Morris (1998) argued that accomplishing a task through managed risk and adopting those business techniques that best meet the circumstances through innovation and change are central to their concept of entrepreneurial process. Similarly Nelson and Johnson (1997) define an entrepreneur as 'a person who is able to look at the environment, identify opportunities for improvement, gather resources, and implement actions to maximise those opportunities.'
Drucker (1985) argues that innovation is the explicit instrument of entrepreneurship. He defines innovation as the act that endows resources with a new capacity to create wealth. Similarly, Trewin (2004) defines business innovation as the introduction of new or significantly improved goods, services or improved operational, organisational or managerial processes. Zairi (1999) too considers innovation as a process of taking new ideas through to satisfied customers, a conversion of new knowledge into new opportunities. It has been analysed through various case examples that entrepreneurship and business innovation go hand in hand.
A business plan is a document that defines the business and explains in as much detail as possible how the venture will operate in the current market. Operating the company on paper first provides an opportunity to identify potential problem areas and work out solutions without real world consequences. A business plan also communicates goals throughout the organization and helps the business stay focused on its objectives. After implementing the proposed strategies, the owner or manager can use the business plan as a benchmark to identify both achievements of goals and areas that need improvement. Despite the internal benefits, most entrepreneurs begin to develop a business plan because of its external function. A business plan is a requirement if the business is attempting to obtain outside financing. When approached about potential funding, either for a start-up business or for expansion of an existing business, the first thing a prospective investor or lender will ask to see is a business plan. It is the primary tool used by financiers to evaluate the potential of a business.
The business plan is valuable to the entrepreneur, potential investors, or even new personnel, who are trying to familiarize themselves with the venture, its goals, and objectives. A feasible of the business plan will guide the entrepreneur in his or her planning activities; it also helps to determine the viability of the venture in the designated market. Thus an appropriate business plan serves as a blueprint for the success of the organisation.
Successful entrepreneurship depends on many factors. Of primary importance is a dedicated, talented, creative entrepreneur. The person who has the ideas, the energy, and the vision to create a new business is the cornerstone to any start-up. But the individual must have ready access to a variety of important resources in order to make the new venture more than just a good idea. He or she needs to develop a plan of action, a road map that will take the venture from the idea stage to a state of growth and institutionalization. In most instances, the entrepreneur also needs to put together a team of talented, experienced individuals to help manage the new venture's operations. Entrepreneurship also depends on access to capital, whether it be human, technological, or financial. In short, entrepreneurship is a process that involves preparation and the involvement of others in order to exploit an opportunity for profit.
Writing in his book The Entrepreneurial Mind, Jeffry Timmons defined entrepreneurship as "the ability to create and build something from practically nothing." His definition captures the spirit of the word, the sense that entrepreneurs are like magicians, creating thriving organizations out of good ideas by virtue of hard work, canny business dealing, and personal skills. An entrepreneur must be a good decision maker in order to exploit the opportunities to convert that business idea into a money making mechanism. Risk factor plays a very important role setting of new business. A new business idea may not compulsory be profitable but the real test of an entrepreneur lies in generating something new from the current business idea to make it profitable. One critical factor for business success is the vision of the company. The vision of the company should be clearly defined and all the members of the company should work for the same goal.
This stage of the entrepreneurial process is the actual establishment and opening of the business. During this stage, the entrepreneur goes from being just a visionary to a visionary with a business to run. One way to examine the changing managerial activities of the entrepreneur is to look at the different roles filled by the entrepreneur as the business develops. As the founder of the organization, the entrepreneur sets the philosophy of the organization, establishes the strategic focus, and educates new employees. In this role, the entrepreneur lays the groundwork for the emerging corporate culture. In addition, most entrepreneurs serve as the primary promoters for their new start-ups. They must act as the new venture's chief spokesperson in contacts with financial backers, prospective clients, employees, suppliers, and others. In addition, as founders (or founding team members) of organizations, entrepreneurs are often called upon to provide counsel or advice to community members or employees. In order to successfully manage a new venture, an entrepreneur must be comfortable in all the roles.
The characteristics of an entrepreneur are identified in high energy creative people, who are self-confident, have high levels of self-esteem and are futuristic in their outlook as they seek to incessantly solve problems, take risks and learn from failures (theirs and others). They thrive on change and have a natural predisposition to showing initiative and willingly accept personal responsibility for projects. They harness all available resources within their scope in order to achieve success on their own terms.
Some common characteristics shared by successful entrepreneurs are: Successful entrepreneur are self confident and to succeed in the highly competitive business world, confidence and trust in oneself is an indispensable trait. Self-confidence means trusting your own powers and capabilities. An entrepreneur must have the gumption to face any adversity and tackle any problems that may be encountered in the world of business. They are Risk Takers as being an entrepreneur means having the ability to trust your hunches and acting on them. Great business ideas sometimes start as a hunch which enterprising individuals acted upon. Successful Entrepreneurs know the value of money and are careful about their finances - to succeed in any business; an entrepreneur must understand the value of money and the cost of things. A good entrepreneur is always on the look out for new ideas and new ways to make money. Many entrepreneurs are gifted with intuition: they know what product or service is going to click next. Successful Entrepreneurs are competitive as the world of business is a very competitive environment. An entrepreneur must be aggressive enough to pursue his goal despite having many rivals and competitors. An entrepreneur must know how to stay ahead of his competitors, either by introducing new ideas and exploring new ventures, all in the spirit of expanding his business. The mark of a successful entrepreneur lies in a good personal work ethic that ultimately leads to good business practices, excellent reputation and good association with industry peers and business partners. Entrepreneurs are action takers and should not be confused with creative day dreamers and idea makers. Entrepreneurs are decision makers and are unafraid of making wrong decisions knowing that these are often necessary in finding the path to the right one.
Need to work onâ€¦â€¦.
Limitations of research