|Type of paper:||Essay|
|Categories:||Business management SWOT analysis|
Entrepreneurship is the process where an entrepreneur identifies an opportunity, can risk and turn the chance into a business that will generate profits. An entrepreneur is an individual who is ready to take a financial risk with the aim of making profits.
In the business world growth and development of business, ideas are realized at a very high rate. Additionally, the ever-changing human needs, taste, and preferences provide business opportunities to the entrepreneurs. However, despite the business opportunities that are represented by different challenges in the business industry it is essential to indicate that it takes a risk taker to realize and implement a new business venture. A new business venture refers to the process of identifying and starting up a new business entity with the aim of making profits. The venture has to establish market gaps in the market industry either in releasing the demand for a new product or meet supply needs. In this case, the entrepreneur and the investors' determine the customers' needs and proceed with product production processes which include planning, developing, designing, production, marketing as well selling the products or services to meet the market gap while at the same time allowing the venture to make profit from their actions.
Entrepreneurship majorly evaluates the contributions made by individuals as well as their personalities, the networks the individuals have with the environmental factors, the resources for the business which are brought together for production and the demand of the products as well as the level of competitiveness. Most entrepreneurs have resorted to investigations of innovative ideas into knowing why their partners with different adopted policies are doing well with their business (Meh 2002). The personal attributes such as the behavior influence how they perceive the opportunities and their response.
Different Approaches to Entrepreneurship
Different perspectives can be used to describe an entrepreneur. The first approach is the economic perspective. The founding contributors of this perspective are Schumpeter and Kirzner in 1883 to 1950 and 1973-1985 respectively (Jong &Marsili2015). The prior leaned more towards innovation and according to him; an entrepreneur is someone who identifies the need to introduce new designs to products and subsequently identify new markets and processes (Jong &Marsili2015). To Schumpeter, an entrepreneur is a dreamer whose will is to conquer and prove to others that he or she is superior. An entrepreneur is in the frontline of changing the economy and paves the way for significant changes in the commercial industry while the old methodologies are rendered obsolete. Conclusively, Schumpeter was more concerned about the creative destruction that led to the birth of many industries including the chemical plants and railroads (Jong &Marsili2015).
Kirzner, on the other hand, viewed an entrepreneur as someone who focused on the process of discovery of unnoticed profit prospects (Jong &Marsili2015). The discovered chances are then introduced into the market and used up until they are exhausted prompting exploration of new opportunities. Unlike the earlier perspective by Schumpeter, Kirzner creates some equilibrium in the market.
The views of both Schumpeter and Kirzner would work well if they were integrated because innovation goes hand in hand with discovery. The need to innovate is prompted when a new opportunity is discovered. Additionally, the fact that Kirzner's perspective forms equilibrium in the market is an important aspect to consider. The other approach is the social approach, which focuses on social factors that range from education, religion to culture and entrepreneurial conduct (Dees 2017). Ethos refers to the attitude towards personal enterprise that supports the practice of the entrepreneur. It keeps changing according to innovativeness.
On the other hand, Education refers to the earned knowledge that an entrepreneur has which subsequently gives him or her the confidence and independence to carry out daily activities (Dees 2017). Education provides the theoretical expertise, and the entrepreneur has to apply the theory into practical skills. Religion is the different beliefs that an entrepreneur has, and they aid in assisting the entrepreneur on what business to venture in. Entrepreneur endeavors in the industry according to the boundaries that have been set by his or her beliefs. For example, a Muslim cannot sell pork because it is not religiously allowed.
The social network is another element in the social perspective, which refers to how well an entrepreneur is connected to other people (Dufays&Huybrechts2014). The broader the network, the more the business will grow because it means more customers, suppliers, new ideas and easy access to resources (Dees 2017). Social approach as an essential element that the entrepreneur needs to consider because it creates the environment for the business. Knowledge in a particular field is also necessary for the entrepreneur because he will understand how the company is run and he or she can know the level of energy and time that is required. The social network as earlier mentioned is an element that can broaden and shrink a business; thus, the entrepreneur needs to be well acquainted with other people.
The final approach is the psychological perspective that mainly focuses on the traits (Baum 2014). The personal characteristics of an individual fall under this category and create a profile for the entrepreneur. It is a common belief that an entrepreneur has in-built characters that are permanent like in the case of "born entrepreneurs." According to psychologists, five personality dimensions define an entrepreneur; they include, extraversion which means that an entrepreneur is sociable and optimistic (Baum 2014). The other aspect is neuroticism that says that an entrepreneur tends to be emotionally unstable and continually waiting for things to happen or make them happen. The third dimension is agreeableness, which means that he or she gets along with people easily thus liked; the fourth one is conscientiousness, which means that he or she is someone you can rely on because of being ambitious (Baum 2014). Finally, openness to experience which means that he or she is always ready to try a new way and can form different approaches to solve problems (Baum 2014).
The view focuses more on an individual, but a broader perspective shows how the character traits of a person can cause a business to grow or fail. The reason behind the approach is to show that inherent characteristics can also aid in broadening the mind of an entrepreneur and how she or he relates to his environment is crucial. The three perspectives holistically show the needed tools that an entrepreneur should have before embarking on a business. In the economic outlook, an entrepreneur can choose which approach works for him or her, that is the low or high-level approach and concentrate on it. To conclude, all perspective explains the differences seen in different entrepreneurs.
The availability of a ready market for the products and services offered is another essential factor in entrepreneurship. Marketing also plays an equally important role in the business sector. It involves creating awareness for the consumers and broadening of the market base. Marketing provides an opportunity for the business to brand it in a unique way that will attract more customers and improve the sale of the business (Bruce & John 2012). The current dynamic world enables the entrepreneurs to be updated and in touch with the current and latest market trends and technologies to be incorporated into the business.
The market forces provide the entrepreneur with the needed profits; hence, there is a need for a large market force. The consumption capabilities of the market force influence entrepreneurship (Sarasvathy 2001). The monopoly of a certain product in a specific market makes the entrepreneur realize more profits as compared to the open and competitive environment. When there are quality products offered in the market, it is a reflection of improved systems of transportation of raw materials, the availability of the raw materials and the provisions of the labor. This reduces competition when the quality of goods services offered is high.
Both passion and determination are complementary and equally useful for a successful entrepreneur. Whether a person decides to bring a fresh idea or advance an existing one, passion is very crucial to ensure that the business thrives. When investing in a business, it is not only finances that are required the business also requires long days and nights of commitment. These commitments can end up consuming the businessperson, and hence passion about whatever they do is necessary to deal with the challenges and uncertainties of the firm. Being an entrepreneur is a hard task because one has to deal with all challenges associated with the business. It requires one to push themselves every day when things are not right, and it takes much effort to keep working hard even when nothing good is coming your way.
Factors That Contribute to Business Failure or Growth
A business can grow or fail because of different factors (Storey 2016). The factors that will contribute to the success of the company is the updated curriculum that the Unique Driving School (UDS). The curriculum will have more impact on the students who lack proper driving lessons. Combined with the new curriculum the new teaching methods will keep students on edge. The flow of customers will also ensure that there will be constant cash flow, which is very important for every business (Fraser et al. 2015).In addition, the newer models of cars used will entice the students to learn driving. The flexibility of the timetable will see more students enroll because as they can work and go for lessons at the same time. A student can choose a plan that best suits her, and because the school is open for seven days, a student can go for the lessons when they are off work. The theory learned will have an online platform where the students can learn from the comfort of their homes and do practical occasionally when it is required because the method is not enough (Do Paco 2015).
The business may fail because of two factors. The first is brand awareness. Awareness is essential for the company because the more people are reached; the more customers there are (Dufays 2014). Also, obtaining the license to run the business and cost of insurance will be another hindrance for the industry. It is crucial to meet the legal obligations of a country, and thus it is necessary to obtain the license before embarking on the job. The company is a driving school, and it is a requirement that every car should be insured which will be very expensive for the school.
The opportunities available to the entrepreneur are expanding the market shares to other cities like Birmingham and Manchester (Group AL n.d.). The other niche that can contribute to growth is the creation of a strong brand name. A well-recognized brand name is the backbone of any business as it advertises itself (Dufays 2014). Conclusively the relationship between the students and the driving school needs to be built in the light of low competition.
The primary threat that will face driving school is the existence of well-known driving schools. Thus, the school will have to keep up with the competition.
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