Sixsixfive Crse Presentation Six
Entrepreneurial culture is a trend that has led to successful businesses globally positively impacting lives of people socially and economically. Entrepreneurship is the ability and willingness to develop and manage new business ventures assuming all rewards and risks for the betterment of society. The major and long run purpose of entrepreneurial culture is to improve human lives. Businesses maybe started for several diverse reasons but after most of those objectives are achieved, they look into how to make life better for people.
Myths regarding entrepreneurship
Belief that faster creation of start-up businesses solves the unemployment crises is a misconception that is affecting entrepreneurship. This is because countries and states are encouraging investment in new business ventures without proper and efficient consultation and evaluation. It is also resulting in existing small businesses remaining small instead of focusing on further growth and development of these ventures. Entrepreneurship is believed to mostly benefit society through job creation. However, entrepreneurship leads to several other vital benefits like solution to societal problems. Myth that entrepreneurs are young is misplaced because from research most successful entrepreneurs have prior work experience and have grown in the employment market before venturing into their own businesses. Many countries believe that investing in entrepreneurship means investing in companies, which to some extent is a misplaced investment. Research and development play a key role in entrepreneurial culture and warrant investing in. Rush into new business ventures is driven by wanting to emulate success stories of Silicon Valley. However, entrepreneurs should understand that each region is unique and what works in a certain area is not necessarily beneficial for another region.
Ways to identify business opportunity
Entrepreneurs observe trends, solve a problem, and find market gaps as ways of identifying viable business opportunities. In observing trends, they look out for changes in environmental trends which are economic forces, social forces, technological advancement, and political activities. Economic forces entail looking at the state of the economy, disposable income level and spending patterns of consumers. This enables identify human needs and wants to satisfy. Social forces could be due to demographic changes, social and cultural changes, and upcoming trends considered in fashion by consumers. New and emerging technologies as well as new uses for old technologies result to creation of new products which are viable business opportunity. Changes in political activities, laws, and regulations preferably result to creation of companies which help existing companies and organizations comply with specific laws. Identifying problems and ways of solving them, enables entrepreneurs identify business opportunities. Identifying market gaps in production and distribution of existing businesses contribute to identification of business opportunities.
Reasons for entrepreneurial culture
Entrepreneurship was fostered by need to pursue personal business ideas, be one’s own boss, and for financial stability and gain. Desire to be one’s boss could be due to long-term objectives of wanting to own a personal business or caused by frustrations in conventional jobs. Conventional jobs can be restricting which frustrates employees who have a lot to offer yet few opportunities so they leave formal work to venture in their own businesses. Other entrepreneurs are driven by the need to pursue their own personally ideas due to their hobbies, wanting to satisfy market niche or out of love for a particular industry. Entrepreneurs have to determine if their ideas are viable business opportunities before venturing into them. People with an entrepreneurial spirit are keen on market gaps in various sectors and take advantage of this through creativity and innovation to satisfy the market niche. Talents and hobbies push some people to invest in them for business reasons. Limitations in formal jobs also facilitate workers to leave them to invest in personal ideas which employers probably ignore on presentation. Financial instability and job insecurity especially in low-income earning states and countries lead to high rates of entrepreneurship as a source of income. People therefore venture into entrepreneurship for financial rewards though the first two reasons are the major ones. Proper management of new businesses ventures lead to large financial benefits.
Characteristics of successful entrepreneurs
Entrepreneurs have prior experience, cognitive factors, social networks, and creativity as common characteristics that enable them easily recognize available business opportunities and invest in them. Prior work experience in industries lead to successful entrepreneurial ventures since one is easily able to observe an underutilized market niche in a particular industry. It also builds connections that are important for growth of new business ventures. One’s extent and depth of individual social networks and relationships determine the level of exposure to new viable business opportunities. The kind of relationships also affects entrepreneurial culture. Strong-tie relationships lead to lesser new business ideas than weak-tie relationships. Strong-tie relationships are between like-minded people therefore they only reinforce existing ideas but weak-tie relationships are between casual acquaintances that have different concepts and ideas in life hence there is more possibility of new ideas being sparked by another. Creativity is what drives the generation of a new business idea. Recognizing an idea requires creative and innovative entrepreneurs to determine what to produce, how to do it, and who and what to involve. Creativity therefore involves preparation, incubation, conception, evaluation, and elaboration of a business idea. Passion for this new business opportunity determines how far n successful it becomes. Passion will ensure tenacity and product or consumer focus depending on what drove an entrepreneur to venture in a new business.
Importance of entrepreneurship
Entrepreneurial culture leads to fulfillment of personal goals, job creation, personal growth, economic growth, and social benefits. Entrepreneurs who venture into business to fulfill and implement their ideas are satisfied by their achievements which is pacifying. Jobs are created for entrepreneurs and other workers employed in a particular business ventures. This improves the living standards of people since entrepreneurs and employees are financially independent. This leads to growth of gross domestic product of a country. Entrepreneurs base their businesses on solving social problems which positively contributes to betterment of society. This is through creation of employments opportunities, provision of goods and services, and or social responsibility of enterprises to society.
Vaynerchuk, G. (2009). Crush It! : Why Now Is the Time to Cash In on Your Passion. New York: Harper Collins.
Davis, S. and Bornstein, D. (2010). Social Entrepreneurship: What Everyone Needs to Know. New York: Oxford University Press.