The Nature of Entrepreneurship and its Role in Business - Essay Example

Entrepreneurship Name of Professor The Name of the School The Date Table of Contents Table of Contents 2 1.0 Introduction 3 2.1 Meaning of entrepreneurship 4 2.2 Meaning of Entrepreneurs 4 2.3 Characteristics of good entrepreneur 4 2.4 Role of entrepreneur in business 6 3.0 The important elements in formulating and evaluating an entrepreneurial business plan 6 4.0 Elements of managing rapid growth 9 5.0 Significant sources of information and assistance for entrepreneurship 11 6.0 Write the self-help guide or instruction manual with a global audience 12 Reference 14 1.0 Introduction For financial prosperity and development, entrepreneurial assumes vital part and a portion of the very much archived guarantees of entrepreneurial are monetary development work creation (Drucker, 2014). The thought that entrepreneurial may empower work development was ineffectively seen yet later was the middle phase of monetary development. In considering enterprise potential in occupation creation and monetary development, one would believe that it is a perfect system to use in those spots that need it most, asset poor fringe areas (Drucker, 2014). Center in enterprise in employment creation and monetary development is perfect system because of the way that solid entrepreneurial base has sweeping consequences for the economy and society all in all (Drucker, 2014). Week institutional and human asset base must be solid and well ground to fortify monetary development. The legislature should likewise guarantee that there is hearty casual and formal institutional to seed environment where people business visionaries can develop and create learning and aptitudes they require and where financial open doors are bound (Aldrich and Baker, 2007). This paper expects to answer the accompanying inquiries in accordance with enterprise:- 1. The nature of enterprise and its part in business, a comprehension of entrepreneurial conduct including ways to deal with cooperation, correspondence, imagination, advancement, hazard 2. Identify and portray the vital components in defining and assessing an entrepreneurial strategy for success for a start-up association or for another task in a built up association 3. Identify and portray the essential components of overseeing quick development and overcoming obstructions in an entrepreneurial domain. 4. Identify and portray noteworthy wellsprings of data and help including the business people and critical entrepreneurial occasions in the course of the most recent fifty years. 5. Write the self-improvement aide or guideline manual in light of a worldwide crowd. 2.0 The nature of entrepreneurship and its role in business, 2.1 Meaning of entrepreneurship Entrepreneurship is the readiness to go out on a limb, create, sort out and deal with a business wander in an aggressive domain be it neighborhood or worldwide commercial center which is always developing (Aldrich and Baker, 2007). 2.2 Meaning of Entrepreneurs Business visionaries can be portrayed as trailblazers, pioneers, trend-setters, pioneers and financial specialists in a business (Aldrich and Baker, 2007). 2.3 Characteristics of good entrepreneur Capacity to handle risk:- for a business person to be powerful, he should be able to handle hazard because of that actuality that they work in a situation loaded with danger, he should have the right individuals around him to handle danger and vulnerability. Results situated: - a good business person must be result arranged, he takes the proprietorship to complete work. He is a man who shows judgment skills in his choices and activities and can slice through and resolve issues which may confront the business (Baumol, 2006). Team player: - a genuine business visionary must be a genuine cooperative person, he should perceives how her part adds to the general exertion and accomplishment of the association. Cooperative person must acknowledges responsibility and proprietorship for his range of obligation (Baumol, 2006). Great communicator: - in accomplishment in business, correspondence frames larger part, what represents the moment of truth business is correspondence and is the key component which makes the association with individuals. Business people must learn social capacities, whether made, talked or non-verbal messages which are gone on through non-verbal correspondence (Baumol, 2006). Leader: - Entrepreneur not simply drove themselves through self-motivation as self-starters who bounce into errands with enthusiasm, yet they are also capable at driving others. They know the importance of collaboration and they grasp the need to esteem others, backing and compensate them as indicated by their execution. Honest to goodness pioneers don't get the chance to be indispensable, by and large things turn out badly in their nonappearance and they can never rise to the biggest measure of entrepreneurial adaptability and achievement (Baumol, 2006).Innovator: - as depicted prior a business person must be a trailblazer as the business requires imaginativeness as the business sector is aggressive and requires changes every last market. System inventiveness is vital inside the business. Creative - inventiveness and innovativeness goes as an inseparable unit and with innovative pioneers, business can develop and create to more prominent statures. Business visionaries should be imaginative in ranges of business and have the capacity to move the difficulties purchased by business environment (Aldrich and Baker, 2007). 2.4 Role of entrepreneur in business Business visionary is the lender of the business. This is one of the real capacity and part of a business visionary. In the wake of conceptualizing a thought, the business person must take a gander at wellsprings of fund which are accessible for business (Aldrich and Baker, 2007). In this way, he or she will have the capacity to give funding to the business to get. Besides, business visionary give authority in the business, new business requires vision and targets and this is the part of a business person subsequently it is his part to give the important initiative in the business. Ultimately, business person's part in business is to give answer for the difficulties in the business. 3.0 The important elements in formulating and evaluating an entrepreneurial business plan The initial step for any new venture is to create strategy for success. A strategy for success can be depicted as what the business visionary is planning to do in his business. The procedure of recording what is included in conveying your business thoughts to reality include composing strategy for success. For the most part marketable strategy incorporate;- Business portrayal which is the thing that a business visionary is wanting to do and motivation behind why you need to wander into the business. Furthermore, it contains market examination which is for the most part the clients you are aiming to deal your item or administration. Thirdly is the contender's investigation which is fundamentally those individuals who are working in the same business as you or produces same item as you. Fourthly, working arrangement which is for the most part how the business visionary is wanting to works and runt its business. Fifthly, money related arrangement, this is for the most part the financial backing, what amount are you wanting to utilize and what are the wellsprings of the asset in the business. Finally, official rundown which is for the most part the outline of the above components in a word. By and by, synopsis is composed last and dependably start things out in the arrangement (Kirzner, 2015). The strategy for success more often than not take after the accompanying steps 1. Executive outline 2. Business Description 3. Market examination 4. Competitor's examination 5. Business Operations 6. Financial arrangement Business Description: This segment ought to have the capacity to give business diagram and serves as the presentation of your strategy for success. It gives destinations of the business, statement of purpose of the business, estimations of the business and the result of the business. A business visionary ought to have the capacity to expressive this so well an outsider can comprehend what you are aiming to manage without battle. Market examination: Entrepreneur ought to have the capacity to talk about the business sector and how he means to approach it. It ought to have the capacity to depict the qualities of the business sector, the objective client profile, the opposition in the business sector and your upper hand over the rivals in the business sector. Competitor’s examination: - In checking available you are expecting to work in, it is essential to contract down to particular rivals in the business sector. The strategy for success ought to have the capacity to characterize who immediate and roundabout contenders. During the time spent auditing contenders, a portion of the zones business person ought to cover in the strategy for success concerning his rivals include: a) Market offer b) Customer relationship c) Advertising arrangement d) Price e) Product components and attributes f) Supplier's profile Promoting arrangement: In strategy for success, showcasing arrangement addresses four noteworthy territories which incorporate; 1. Product advertised 2. Price charged 3. Distribution framework and 4. Promotional endeavors Business visionary ought to have the capacity to verbalize these zones in his marketable strategy well-spoken these ranges as they will give the guide for the new venture Business Operation arrangement: This is vital zone and arrangements particularly with the inside association of the business. It addresses authoritative structure, operation and gears required to kick begin the business. It characterizes the business possession, staffing and working arrangement of the business, it likewise takes a gander at legitimate issues encompassing the operation of the business. Financial: This just the financial backing, the money you are expecting to use as the underlying capital and determined income and costs for the new business (Kirzner, 2015). 4.0 Elements of managing rapid growth In order to manage a rapid growing business, entrepreneur needs to focus on some specific elements. They include; Customer experience:- when there is rapid business growth and the management is overwhelmed with the waves of new customer order, one important factor an entrepreneur needs to remember is that positive customer experience is at the heart of every successful business. The entrepreneur must ensure that he deliver his services at the right time and product of high quality that meets customer needs and expectation (Kirzner, 2015). Creating future value: - one of the factors affecting start up business is lack for future focus and focusing on daily crises. This is normally done at the expense of building long term plan for the business. As business picks up and start growing faster, there is need for long term plan on how to deal with future challenges and risk involves in the industry (Stevenson & Jarillo, 2007). Building organization culture: - It should be noted that human productivity and engagement at the heart of the healthy business growth. With increased growth culture inculcated in the business employees will be translated into performance hence be able to handle the rapid growth than might be experience in the company. Creating a positive culture in and organization is very important as it will act as a catalyst of motivating employees. The culture must be also sustainable in long term (Stevenson & Jarillo, 2007). Communication: - as one of the key elements of the good entrepreneur characteristics. With rapid growth come changes in procedures and policies for staff. The organization structure will help in defining the communication channels. The management must ensure that there is free flow of information and they keep communicating the new information and organization objectives and goals to the employees (Stevenson & Jarillo, 2007). Mission and vision: - the management should not by any chance forget its mission and vision. The mission and vision gives the organization the road map which they are supposed to use to achieve its objectives (Sharma & Chrisman, 2007). It is important for entrepreneurs to remember that rapid growth can be challenging at a time and if those who are in the management are not well equipped on how to manage it and channel the growth into positive business outcomes. Growth usually means more availability of resources, more capital and greater visibility (Sharma & Chrisman, 2007). The rapid growth will be more meaningful when it is well managed and entrepreneurs must ensure that it is managed for continuity of the business. 5.0 Significant sources of information and assistance for entrepreneurship Entrepreneurial information is very important and every entrepreneur needs to access more information concerning entrepreneurial skills. Some of the sources of information include:- Library: - this is the primary source of information. Governments and government institutions have variety of publication which may be useful for start-up business and entrepreneurs. Learning institutions and scholars have written several articles on how to manage business and quality of good entrepreneur which are found in the libraries Internet: - this is another vital sources of information for upcoming business. Entrepreneurs can carry out desktop research and gather relevant data concerning business management. Emails and social media are rich sources of information that can be used to exchange ideas for young entrepreneurs. Trade papers and magazines: - these are very vital sources of information that can be used by entrepreneurs and other interested parties concerning growth and development of the business (Sharma & Chrisman, 2007). For the past fifty years, there are major events that has taken place to support the idea of entrepreneur and entrepreneurship. Most governments have introduced revolving fund targeting women and youth in order to support SMEs. Programs like Sharktank is one example where talented and focused entrepreneurs are being supported. They fund viable business ideas and this is a big new development which was not existing for the past fifty years. World Bank has supported many emerging economies resulting from the development of entrepreneur’s innovation. Ideas like M-pesa in Kenya has transformed online money transfer, the speed of accessing money and trade across the globe. President Obama has supported young entrepreneurship since he came to power and formed Africa youth forum where young entrepreneurs are financial supported after training of the entrepreneurial skills. Local institutions like banks and microfinance normally train people before they can be given loan for business. This is a positive development in the line of entrepreneurship. 6.0 Write the self-help guide or instruction manual with a global audience Business plan format guideline Using the global perspective, the following guidelines can be used as a self-help guide or instruction manual for business plan Executive summary The business The markets The future The finance The business Business details Registration details Business location and premises Organization structure Ownership and management Key personnel in the organization Product and services offered Risk management techniques Legal consideration Operation and sustainability plan Markets and market analysis Market research Market targets Environment and industry analysis (PESTLE) Customer analysis SWOT analysis Competitor’s analysis Advertisement and sales techniques Future Business strategy Vision statement Mission statement Goals and objectives’ Action plan Business Finances Key objectives and financial review Assumptions Start-up costs for the year Balance sheet forecast Profit and loss statement forecast Expected cash flow forecast Reference Aldrich, H. E., & Baker, T. (2007). Blinded by the cites? Has there been progress in entrepreneurship research?. Baumol, W. J. (2006). Entrepreneurship: Productive, unproductive, and destructive. Journal of Business Venturing, 11(1), 3-22. Drucker, P. (2014). Innovation and entrepreneurship. Routledge. Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press. Sharma, P., & Chrisman, S. J. J. (2007). Toward a reconciliation of the definitional issues in the field of corporate entrepreneurship*. In Entrepreneurship (pp. 83-103). Springer Berlin Heidelberg. Stevenson, H. H., & Jarillo, J. C. (2007). A Paradigm of Entrepreneurship: Entrepreneurial Management* (pp. 155-170). Springer Berlin Heidelberg. Read More