Benefits of Entrepreneurship to Society - Coursework Example

Entrepreneurship Name Course Instructor College Date of Submission Introduction The theory of entrepreneurship is as old as the man’s earthly existence. Entrepreneurship is an ordinary term to a lot of people, a subject that has taken on a top spot on scholars’ research schedule from various fields and drawn great concern from people of diverse professions. Several writers have strived to offer an explicit explanation for entrepreneurship, categorizing what they consider makes entrepreneurship different from other disciplines. This arises from the premise that commencing and operating a business is neither necessary nor sufficient for entrepreneurship. The definitions comprise a broad breadth of skills, thinking, objectives as well as real behaviours in an entrepreneurial world (Schuetz 2005, p.2; Mokaya 2004; p.3). This paper seeks to find out the outstanding definition of an entrepreneur along with their characteristics. It also outlines the societal gains of entrepreneurship as well as how entrepreneurs identify and exploit opportunities. A close examination of entrepreneurship in IT forms the last section of the paper that entails a case study of two major IT achievers and what drove them to such admirable success. The study is based on Steve Jobs of Apple and Michael Dell of Dell. Who is an Entrepreneur The character of entrepreneurship research is varied. This field has invited research from diverse areas that include; economics, sociology, psychology, political science, anthropology and the arts. A lot of terms have over and over again been used to define entrepreneurship; innovativeness, flexibility, dynamism, risk-taking, creativity, value creation, uniqueness and growth orientation (Stevenson 2000, p.3). The special expressions and phrases used by different people to define entrepreneurship proof its varied and wide-scoped character (Burnett 2001, p.10). Combining these terms, entrepreneurship can be described as the practice of continually scrutinizing the surroundings, spotting business openings, accumulating capital to exploit the openings and at last initiating a business venture that expends by making proceeds. Hence, entrepreneurship symbolizes the actions of entrepreneurs who are the main propellers of entrepreneurship. Entrepreneurship cannot be complete devoid of talking of entrepreneurs; people who give entrepreneurship logic (Mokaya 2004, p.5). The definition of who is an entrepreneur is also varied due to the notion that anyone who starts a business is an entrepreneur. Joseph Schumpeter depicted entrepreneurs as trendsetters who steer the “creative-destructive” course of entrepreneurship. According to his definition, entrepreneurs are the driving force of reforms in the economy. By supplying new markets or creating new habits of doing things, they propel the economy forward. However, this definition has been heavily criticized since commencing a business is not the real meaning of entrepreneurship. Being an entrepreneur is connected to commencing a business; however this is an extremely free use of a term with a rich narration and a much more important implication (Schutez 2000, p.5; Schumpeter 1934, p.4). According to Wakkee et al. (2008, p.311) an entrepreneur is an individual who manages a business entity and assumes the risks for the venture with the aim of making a profit. Chen et al (1998, p.296) defines entrepreneurs as innovators who take advantage of or create change and opportunities mainly to make profit. Combining the two, an entrepreneur is an individual who manages a business entity, takes advantage of or create change and opportunities and assumes the risks for their undertaking with the aim of making a profit. Benefits of Entrepreneurship to Society Entrepreneurship is the force driving modern business. The innovative and high worth merchandise flowing into the market every day are out of entrepreneurial labours, making entrepreneurship improvement a key approach for sustainable socio-economic growth. It is the active course of action of creating enormous prosperity by persons who deal with major risks ranging from fair play, time and/or career dedication of providing worth for some product or service (Boettke & Coyne 2004, p.7). Entrepreneurship has been applied as an approach for economic advancement in scores of countries. It has been and still is a major vehicle for trade along with financial growth. Great consideration has been paid to this topic of in the past several years, shooting for the most part from the finding by financial market analysts that small businesses have a substantial say to economic development and liveliness. In addition, a lot of individuals have selected entrepreneurial jobs as doing so apparently presents better financial as well as mental rewards than big corporations. And by this entrepreneurship has created employment openings. Over and above the job openings, entrepreneurship guarantees some form of job security (Chrisman & MacMullan 2000, p.41; Boettke & Coyne 2004, p.9). By creating job opportunities, entrepreneurship has boosted people’s living standards. People desire to work so as to earn income that will make them survive, fulfil their requirements and satisfy their economic desires. Also, entrepreneurship plays a major role in ensuring that there is impartial allocation of capital. With additional entrepreneurship actions open to the populace in rural areas, residents have more job openings and they would not see any need of moving to other places in search for jobs (Boettke & Coyne 2004, p.7). Having resources and making use of the resources are two distinct things. Entrepreneurship brings them together by facilitating the utilization of accessible human along with natural resources by converting them into more helpful forms. Through entrepreneurship, the government is able to accumulate resources then distribute it to citizens in form of social facilities such as hospitals, schools, infrastructure and more importantly maintenance of peace and orderliness (Bygrave & Minniti 2000, p.6). Another benefit of entrepreneurship is that it offers flexibility. As an entrepreneur, location does not have much meaning; an individual can make use of the present day technology such as cheap teleconferencing, e-mails to manage a business dealing competitively. Entrepreneurs as well earn some degree of freedom through creating their own success. There is the freedom of choosing the manner in which to conduct your business (Bygrave & Minniti 2000, p.6; Chrisman & MacMullan 2000, p.39). Successful entrepreneurs uplift the wellbeing of the society as a whole through: Charity works; hospital funding, building schools, to assist the less privileged; Sponsoring poor students to through their learning or offering scholarships; Welfare arrangements; assisting the physically challenged, widows, orphans and it times of crisis especially natural calamities that occur like floods, epidemics or even droughts and Advise to interested parties and stakeholders such as the government. A classic case in point is the Belinda and Bill Gates Foundation under Bill Gates and his spouse, Belinda who channel billions through the foundation to fund various projects in low developed as well as developing countries (Bygrave & Minniti 2000, p.6). Entrepreneurial Characteristics Determining the personality attributes of an entrepreneur is quite an intricate matter. It entails aspects from the background that a person was brought up in, their relatives, as well as their character. This issue has been the focus of a lot of both studies plus research especially in the 1980’s and 1990’s dating back to as early as the 1950’s. The traits discussed below are a review of various conclusions by researchers as well as personal opinions (Carton et al 2004, p.20). Desire to achieve Entrepreneurs are folks with a soaring desire to accomplish something. They are more of actors and make stuff to happen. They are usually incredibly aggressive since they are aware that they can perform better than others. Research indicates that the mainly constant attribute established in entrepreneurs is the absolute determination to be successful, they want to achieve in all they execute and become the top (Dabson 2005, p.9 Carton et al 2004, p.21). Nonconformity Entrepreneurs have a propensity of being self-governing, discontented when strained to be conventional. These individuals find it hard to toil for others as they would like to lay down their personal targets. They believe that if anything is to be prepared, they have to begin it. They put in place restrictions and ensure that tasks tag along that course. They are practical and do not wait for somebody to give them authorization (Dabson 2005, p.10). Hardworking and Resilient Opening a business is no easy, it requires hard work. According to, ‘except you by now work hard you must not set up a business.’ There is a big difference. Running a business is not likely to roll a slothful lout into a powerful bull. Entrepreneurs are just for ever and a day exceptional hard workers. Often they will be the first to reach at work and the last to go away. Their state of mind is at all times on their work. Entrepreneurs are not disillusioned when they lose. They perceive defeat as an opening for victory. Hence, they are resolute to rally their energies and succeed, therefore will attempt over and over again in anticipation of success. Victorious entrepreneurs do not consider that something is undoable (Dabson 2005, p.16). Tough Leadership Managing a new business could prove to be an upsetting incident occupied with uncertainty as well as risk. Running the business effectively through these irritating times calls for a great deal of leadership abilities (Carton et al 2004, p.23; Dabson 2005, p.11). Social On the event an entrepreneur spots relations who are vital for the success of their venture, the majority of their time is used up establishing, discussing, and preserving these associations. This means that victorious entrepreneurs can convince others to come into interaction and take deeds that will assist the undertaking. A main division of any leader’s task is convincing folks to do things that they are not certain on or do not wish to do. In addition, the social character of entrepreneurship implies that entrepreneurs use up a lot of their time in groupings (Carton et al 2004, p.25). Entrepreneurial Identification and Exploitation of Opportunities Entrepreneurship entails occurrences and practices associated with identifying, assessing, as well as exploiting opportunities to generate commodities for the future (Shane & Venkataraman, 2000, p.221). Entrepreneurial openings can be separated into two groups. Some possibly will crop up due to the inventive doings of the prospective entrepreneur; implying the innovator is the only lone person in a situation to detect the subsistence of the prospect. Additional opportunities come up since individuals perceive the market that presents an entrepreneurial chance, maybe as plain as purchasing an item inexpensively in one locality and trading for more somewhere else, or perhaps as composite as purchasing inputs, mixing them in a fresh developed method, then selling the new creation for a return. The initial kind of opportunity identification is attributed to the innovator only, as no one besides is in a point to survey the novelty, while the second kind of identification is open to any person, since it depends only on spotting an idle market by means of existing knowledge (Shane 2000, p.457). Entrepreneurship, as portrayed by Kirzner (1999, p.12) is inclined to the second kind of opportunity spotting. However, there have to be a marketplace in which the income prospect can be recognized for it to happen. The first kind as well relies on a marketplace. Accordingly, Harper (1996, p.46) stresses the tight link stuck between the progresses of awareness along with the invention of entrepreneurial action. He further and highlights that as soon as entrepreneurship can be gainful, people are attracted to spend in gaining knowledge, which sooner or later can bring into being an inducement if it turns out into entrepreneurial prospects. The information required to note various entrepreneurial openings is principally accessible by everybody, even though identifying that information acquired comprises an entrepreneurial prospect and may well too involve some explicit knowledge of time as well as place. Other times the information is not normally on hand. This is what drives confidential research and development (Gorman 2004, p.219). The exploitation of these opportunities entails actions and outlay dedicated to extract proceeds from the innovative product resultant from the opening by way of erecting well-organized production structures for complete functioning. Entrepreneurs may spend time and collect information to cut doubts and put together wherewithal and abilities prior to concluding to penetrate the market and exploit the prospect (Gorman 2004, p.225). Then again, entrepreneurs may well exploit the opportunity instantly to stretch their lead time (the phase of monopoly for the earliest participant earlier to rivals inflowing the industry). Broadening the lead time might engender vital performance gains, together with facilitating the entrepreneur to build up their brand expand their merchandise line pull off cost returns during experience building and retain elevated margins in the lack of price rivalry (Mueller 2006, p.432). Vital entrepreneurial tricks before operation incorporate market study into impending customer needs (Chrisman & McMullan, 2000), back-up expansion and assessment of expertise (Gorman 2004, p.223; Rice 2002, p.171), mounting and building the managing panel in addition to creating stakeholder support such as investors, government, human resources, and the incubator administrator (Rice 2002, p.171). These actions endow entrepreneurs with possessions considered necessary for opportunity exploitation. Case Study: IT Entrepreneurs This section involves a close examination of entrepreneurship in IT. It is based on a case study of two major IT achievers and what drove them to such admirable success; Steve Jobs (Apple) and Michael Dell (Dell). Steve Jobs (Apple) Steve Jobs had a dream; that of a "computer for the rest of us". This is what ignited the revolution in personal computers (PC) and completed Apple as an emblem in the global IT industry albeit having gone through several ups and downs. Early Life Steven Jobs was born on February 24, 1955, in San Francisco, California, and got adopted by Paul and Clara Jobs. He spent his childhood in Mountain View; Calif., a growing hub of electronics that got referred to as the ‘silicon valley’. Steve displayed curiosity in electronics at an early age. During his high school years, Steve courageously called Hewlett-Packard (co-founder and President William Hewlett) to request for some components for his school assignment. Hewlett got overwhelmed by Jobs move and besides the parts he requested Hewlett presented to Jobs a summer job at his company. This is where Jobs got introduced to Steve Wozniak (his future Apple co-founder) then a youthful engineer and five years older than him. Both became allies and shared common attributes especially playing around with electronics (Isaacson 2011, p.1; Young 2006, p.2). At Reed College then to Atari and Eastern Asia After his high school studies, Steve was registered in Reed College, Oregon to study a rather confusing selection of subjects; literature, physics along with poetry. However he dropped out after one semester and later went back to California. Steve took a proletarian job crafting video games for Atari so as to collect money for his impending tour to India to learn Eastern traditions as well as religious convictions (Isaacson 2011, p.13). Apple I On his return to the United States, Steve bumped in to find Wozniak struggling to assemble a tiny PC simply to pastime. Steve seized the selling possibility of that gadget and persuaded Wozniak set up a business together. In 1975, Jobs and Wozniak commenced their operations in Jobs' parents' garage. They branded their business ‘Apple’ and started working on a computer sample. They generated their $1,350 start-up funds through selling the Volkswagen microbus (Job’s) and Hewlett-Packard calculator (Wozniak’s) (Wozniak 2007, p.34). Apple II and Departure from Apple Apple I sold well primarily to hobbyists producing adequate money that facilitated Jobs and Wozniak to develop and purify their devise. That’s why in 1977 they pioneered the successful Apple II that was the earliest PC having color graphics plus a keyboard. In 1980, operations started to decline due to amplified rivalry. Consequently, Jobs introduced the Apple Macintosh in 1984 that was more user-friendly although it was expensive therefore it did not sell well. All these tribulations culminated into a collision between Jobs and Apple's board of directors. In 1983, Jobs was expelled from the board by CEO John Sculley; he sold his stake in Apple and left in 1985. Return: NeXT Computer Company and Pixar Animation Studios Soon after in 1985 Jobs opened NeXT Computer Co., mainly to manufacture a PC that would transform research as well as higher learning. NeXT computer came with a multitude of innovations, plus remarkably quick processing rates, outstanding graphics along with an optical disk drive. Priced at $9,950 the NeXT PC sold poorly; it was too costly to magnetize adequate sales to sustain the company. This did not discourage Jobs; he changed the company's hub from hardware to software and began being more keen to his other business, Pixar Animation Studios, which he had bought in 1986 from George Lucas (Deutschman 2001, p.24). Return to Apple and the Apple Revolution Shortly after Pixar's hit the stock market, in an ironical twist Apple purchased NeXT Computers for $400 million. Jobs got appointed again to Apple's board but now as a consultant to Gilbert F. Amelio (then Apple’s chairman and CEO). At the end of March 1997 quarter, Apple reported a loss of $708 million. Three months afterwards, Amelio quit and Jobs took over as acting CEO, later he took over the position till his retirement in 2011. With Jobs at the helm of Apple, the company swiftly returned to prosperity. By the close of 1998, Apple posted sales of over $5.9 billion. This opened the floodgate to a chain of innovative products, counting the iBook (1999), the iMac (1998), the iPod, Apple iTunes Store (2003), the iPhone mobile (2007) as well as the iPad tablet PC (2010). The blueprint and functionality of these devices reverberated across users globally (Deutschman 2001, p.323; Isaacson 2011,p.587). Steve was at the helm of Apple until he was overpowered by pancreatic cancer that led to his sad demise in 2011. Steve Job’s Entrepreneurial Personality Traits It is no lie; Steve Jobs is one of the best entrepreneurs of all time. He must have achieved this feat because of his own inherent personality traits. Each and every person can learn so much from him; Steve Jobs character is an incredible blueprint to go after (Isaacson 2011; p.596). First and foremost, Steve Jobs was an amazing magical thinker. It's one obsession to picture your company growing up and acquiring a significant market portion from another player. However it's another craze to imagine that your company's productions will transform the means by which people stay in touch, work and survive. Jobs perceived things not as they are other than how they could turn out to be. He got into the actuality alteration field and made remarkable things come about. He accepted his ideas as right and laboured towards realizing them, regardless of how imaginary they appeared to be. That is why Jobs put up Apple assuming its products and services would revolutionize the world (Brashares 2001, p.45). Jobs had this knack to build up and invent technology stuff that folks treasured and connected with. Steve Jobs facilitated the attachment amid technology with emotion and skill. Steve is a true celebrity in the notion of inventive and interactive design. He perfected this art due to his conviction that design is a vital element to initiating next-generation merchandise that people adore. This grew into Apple's cut-throat advantage and trade name. He made Apple stores the benchmark in client service and best seller on earth by launching uncomplicated innovations (Wilson 2001, p.50). Steve Jobs very passionate, tough and fearless. This is what fuelled his destination. Going after your passion possibly will resonate as a soft ability; Steve Jobs said passion was accountable for a great deal of his achievement. Also his behaviour was notorious to the extent of endangering the future of Apple. He had a strange aptitude to drive his company plus its workers to the limit devoid of exceeding elasticity. Finally, Steve was a great salesperson; he made potential as well as existing clients appreciate the importance of Apple's products or services (Wozniak 2007, p.34; Isaacson 2011, p.356). Michael Dell (Dell) Early Life Michael Saul Dell was born on 23 February 1965 in Houston, Texas to Alexander Dell who worked as an orthodontist and Lorraine Dell who worked as a stockbroker. Dell’s curiosity in computers started a tender age of around 15 years. He joined the University of Texas eager to become a doctor. This was not to be, aged 19 years; he stopped attending classes to set off his own business. Dell bought IBM PCs from sellers and added extra memory along with disk drives then sold them at a lower price from his dorm room. He rolled his business with the State of Texas with a start-up capital of $1,000 (Dell 2013; Biography 2013). PCs Limited Dell incorporated the business PC's limited, and started selling PCs direct clients using order application forms, phone orders, as well as Internet orders. By 1986, the company was providing the first toll-free mechanical support service, a practice afterwards applied extensively in the computer business. Dell unrelentingly gave customers a ten percent price cut less than his rivals by applying the "just-in-time" deliverance activities. Dell bought components depending on orders already requested, and just put together equipment for instant deliverance slashing significant operating costs and passed the benefit on to his clients. The remarkable sales quantity achieved through this strategy reserved the company’s profitability (Hazeldine & Dell 2008, p.122). Dell Computer Corporation In 1988, Michael renamed PCs Limited Dell Computer Corporation and listed the company in the stock exchange, moving up $30 million in its initial public offering. Afterwards the selling went worldwide, with manufacturing amenities, joint ventures plus subordinates in Europe, Latin America, Australia as well as Asia. By 1992, Dell Computer Corporation was among the Fortune 500 globe’s biggest companies. Also, at age 27, Michael Dell was the youngest Chief Executive ever to head one of the 500 (Dell 2010, p.124). Online Sales, Dell Inc. and Product Diversification In 1996, Dell pioneered online sales and despite scepticisms and from sales of 30 to 50 computers a day, it took close to 10 years and Dell's every day online sales hit $18 million. Dell Computer turned to become the most money-making PC manufacturer in the globally. Cognizant of the growing and stiff competition in the PC world, Dell diversified into other products including network servers, storage systems, printers, IT support services, projectors, home entertainment systems and personal electronic devices. Dell again changed his company’s name from Dell Computers Corporation to Dell Inc. In 1998, Michael established MSD Capital LP, a private investment firm, to play a part in growing minor companies. Michael Dell is also involved in many other companies under his trade name (Hazeldine & Dell 2008; p.215). Michael Dell’s Entrepreneurial Personality Traits Michael Dell is another successful entrepreneur in the IT field. He started Dell singlehandedly and took it to the global stage amid stiff competition in the computer industry. Definitely Michael must have inherent entrepreneurial characteristics that drove him all through the tough times (Hazeldine & Dell 2008; p.12). Michael Dell was innovative; he started his business individually and from time to time tried to find out innovative habits of getting it better. To be successful in the quickly evolving computer industry Dell was actually proactive. He brought about variations instead of lagging behind for it to come about. Dell Inc. is at the front position of transformation in the industry (Dell 2010; p.24). Michael must have been confident in his personal capability to propel ideas into reality. Exclusive of his self-assurance in direct selling, Dell’s brisk ascent in the computer industry would not have occurred. He was also very influential. At every step of the company’s progress, Dell made choices as regards his company’s prospective course. Even as the majority of industry decisions engross a definite aspect of risk, Michael Dell took that risk. Conclusions are just arrived at subsequent to gauging circumstances logically (Dell 2013). Conclusion The theory of entrepreneurship is as old as the man’s earthly existence. Entrepreneurship involves the practice of continually scrutinizing the surroundings, spotting business openings, accumulating capital to exploit the openings and at last initiating a business venture that expends by making proceeds. An entrepreneur is that person who manages a business entity, takes advantage of or creates change and opportunities and assumes the risks for their undertaking with the aim of making a profit. Entrepreneurship benefits the society as a whole through supporting job creation and providing necessary goods and services. This is characterized by a desire to achieve, innovation, true leadership as well as being social. 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