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Acquirable Attitudes and Behavior of Entrepreneurs - Coursework Example

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The paper "Acquirable Attitudes and Behavior of Entrepreneurs" is an outstanding example of business coursework. Entrepreneurship is a term used to denote the act of designing, planning and running a new business or applying a new technique in running the business to make a profit or for any stated motive…
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Entrepreneurship readings: Name: Course: Instructor: Date: ENTREPRENEURSHIP READING JOURNAL (HOW DID I BECOME AN ENTREPRENEUR). Learning journal 6349. Introduction. Entrepreneurship is a term used to denote to an act of designing, planning and running a new business or applying a new technique in running the business to make a profit or for any stated motive. This term is mostly used when referring to a business from essentially the start-up through its life cycles by an entrepreneur. Entrepreneurs are individuals who come up with viable ideas, outsource the required capital outlay and take the risk of starting a business. The idea should not only be a fresh idea from creativity but also an improvement of an already existing idea through innovation. These people should in most instances have specific skills, knowledge, attributes and qualities to facilitate success in their entrepreneurial ventures. Skills and knowledge Analytical skills-this will assist him, or she does a critical analysis of the idea and the operating environment of the business. Resilience-This skill facilitates stay in business without giving up even when profits may be so low. Bookkeeping skills to assist maintain records on business operations and funds Focus-This will facilitate future orientation in the firm. Sales skills-All entrepreneurs are salespeople, and they will need to sell their products to the market. Management- He or She should know how to manage people and resources. Qualities and attributes. Determination-This quality assists the entrepreneur to stay focused on the goals of the business Knowledge seeker- Through seeking of in depth information on ways of business improvement. Risk taker-taking investment risks in anticipation of unforeseen profits. Future oriented-this quality will make the entrepreneur stay within the business with a security of going concern. Goal oriented- This attribute facilitates achievement of the set goals through remaining focused on the strategies for achieving the goals. WEEK 2 READING Introduction. The chapter is all about an entrepreneur as an individual. It intensifies the relationship between an entrepreneur as a person and the entrepreneurship world. A clear distinction is made between an entrepreneur and a manager. On this several facts brings clear distinctions between the two terms. This inclusive of; Organizational Structures An entrepreneurial organization is categorized by its vast informal and flexible structures. On the other hand, Professional management requires a more formal and rigid organizational structure, which leaves limited room for any rapid reactions to business opportunities. Behavioral Differences A typical entrepreneur always needs to "be in full control" of his investment (which is normally the main reason why he started the business).The entrepreneur always needs to have full control of his employees. A professional manager, on the other hand, comes in a company which wants to delegate authority, since it has touched the stage in its growth where the owner can no longer "manage it all himself". Management Style Entrepreneurial managing style is often very demanding. It leaves a very little room for substantial errors, and none at all that may lead to failures. The business is regarded as one man show even with many employees present. Management gives room for mistakes as an avenue of learning. The organization must tolerate errors and failures to accommodate new hires that may sometimes lead to failures. Decision-Making Entrepreneurial decisions are always made instantly as the need arrives. The decision must not be after any consultation. Management decisions must go through a given set procedures and after consultations. The reading brings out an aspect that an entrepreneur can be a professional manager while it’s not easy for all professional managers to succeed in entrepreneurial sectors as real owners and administrators. Entrepreneurs as leaders. A successful story of Ewing Marion Kauffman who founded a company about 66 years ago with only $5000 owing to three major leadership principles; Maxim of equity as a person should treat others as they are expected to be addressed. Share the wealth created with people who created them or contributed in any way to the contribution. Giving back to the society. A good leadership principle is vital for the success of any entrepreneurial venture even with very minimal capital outlay. The main distinction should be made between management and leadership. The differences include. Agenda formation- Management involves planning and budgeting while leadership encompasses establishment of courses of action. Development of human resources-Management includes organizing of structures and staffing those structures to achieve the plan. Leadership only includes aligning those structures towards the agenda. Execution – Management includes identification and alignment of deviation towards the agenda while Leadership gives motivation and morale to pass any challenge that may cause variation. Outcome- In management, the outcome is predictable from one period to another while leadership results to change that may be useful. Acquirable attitudes and behavior of entrepreneurs. The reading journal gives great emphasis on the issue that just like any other humans entrepreneurs can also acquire useful demeanor to help them succeed. Ability to have a positive response to challenges and great perseverance through determination are the great attributes that an entrepreneur must acquire. Motivation to excel, adaptability to difficulties, leadership, and courage, are some of the themes for success. An entrepreneur should try to avoid impulsiveness and perfectionism. Apprenticeship. An entrepreneur should be an apprentice and learn from more experienced entrepreneurs. They should also have role models to boost their motivation. Reading Summary. Entrepreneurship is in the mind. Entrepreneurs than management should vastly embrace leadership. A distinction should also be made on the myths that surround entrepreneurship as whether born or made; an individual can acquire the skills and attributes to succeed in the business. With desirable characters and competencies, a person can succeed in starting up a business like other successful role models. WEEK 4 READINGS. Creativity and business idea. It is a common notion that a good business idea will translate to a successful entrepreneurial venture, but all this depend on intrapersonal attributes of that individual entrepreneur. Basing on success ventures such as Omidyar in the reading, even a crafty business idea can be translated into a more favorable opportunity when there are passion and commitment. Ways of identifying business idea. Trends- Trends are emerging forms of handlings issues. An entrepreneur should embrace new trends to as a way of coming up with a more viable business idea. Environmental trends are best such as the green environment and desire for clean energy. Consumers-Consumers are the reasons for business.Critical analysis on consumer tastes and preference is vital for obtaining a business idea. A market niche may also be identified by an entrepreneur through consumer consultations. Existing products-Looking at existing products, an entrepreneur may be able to be creative and improve on the product through innovation. Distribution channels-Through analysis of the length of a distribution channel, an entrepreneur can identify ways of shortening it through innovative ideas. Federal government-The government files contain many ideas which haven’t obtained patent rights.An entrepreneur can use this file to come up with a high breed idea. Research and development-The journal give this as the primary method of idea generation. Through research and development of existing ideas through innovation, an entrepreneur can obtain an idea. Methods of generating business ideas. Brainstorming- Even with no guarantee of implementation, if this approach is done objectively, ideas come out. Without criticizing anybody, each should be given an opportunity to give his or her idea. Focus groups- Groups of individuals who gives information through structured discussions. Brainwriting-Created by Bernard Rohrbach, this is a written form of brainstorming and is a vital method of idea generation. Problem inventory analysis.-This the method obtains new ideas through critical analysis of existing problems. Reverse brainstorming- In this approach, ideas are received through focusing on the negativity of some ideas generated through brainstorming. Gordon method- In this approach, an entrepreneur creates a new plan by obtaining solutions from the group without telling them the problems. Innovation. Innovation is a situation where an entrepreneur tries to improve on an existing product or attempts to solve an existing problem through concept addition on existing technique of solving.(Blomous,2013.Page.54) Types of innovation. Breakthrough innovation-They are not familiar and heavily patented. They form a basis for further innovations. Technical innovation-This type tries to use technology in improving on an aspect of the same product. Maybe on delivery or packaging. Ordinary innovation-It's very common in enterprises. This innovation involves coming up with a more improved product from the last produced. Opportunity recognition. From the journal, an entrepreneur should always have a sharp eye on opportunity recognition. Opportunities can be recognized through; Knowledge and experience-Basing from prior knowledge and experience from a given field, an entrepreneur can identify an opportunity by observing the market and determine the niche. Good assessment plan-By using a good assessment plan, an entrepreneur can analyze the market and come up with an idea. Product planning. Product planning involves assessment of a product from idea generation stage to commercialization. Each stage should be handled carefully to avoid failure. The product goes through; Idea generation stage, concept development, Product design, testing and commercialization of the product. In product planning, evaluation should be done to ensure the success of the product in the market. Entrepreneurial Ethics Ethics are acceptable codes of conduct in undertaking business. Entrepreneurs are expected to uphold ethical behaviors in their business. This include, Honesty-Honesty is the best policy; entrepreneurs are supposed to support honesty through the packaging of right quantities. Consistency-Consistency will ensure no discrepancy in the products qualities. Quality-High quality products will ensure value for customer’s money. Reading summary. An entrepreneur needs to have innovative and creativity skills. Just as seen in week two readings, desirable qualities enhance success. An entrepreneur should conduct a proper product planning and uphold high standards of ethics. WEEK 6 READINGS. Business plan. Always seen as a dream to glory, a business plan is an important written document prepared by an entrepreneur showing a roadmap on how the business will be undertaken. For a start-up business just like Belinda Company owes its success to the plan of activities, it's critical for an entrepreneur to prepare a business plan. Users of the business plan. The entrepreneur. A good business plan will assist the entrepreneur to know the roadmap of the firm and assist in critical assessment. Financial forecasts will help the entrepreneur to know the business profitability and amount of funding he or she will require from investors. Investors Investors will need a well-written business plan to fund the entrepreneur. The plan will provide ideas on the financial forecast and expected the profitability of the firm.Investors only invest on those ideas that are profitable and have higher chances of shorter Payback period. Credit suppliers. These people will use the plan to know whether their credit supply will be paid. They do this by checking on the return on investment forecast. Sources of data for a business plan. In preparation of a business plan, data may be obtained from; Business journals Government market data Industry trends data Benchmarks. Elements of a business plan. A well-prepared business plan should include all of the following information: Front Cover page. The cover information provides the reader and users an instant impression of the business, so it needs to look professional. It should show the name and logo of the business. Summary A brief summary of the business and its purpose should be highlighted. If it’s to receive funds, highlight it. State the strengths of the business that makes it qualify for the funds. Lastly, show in the plan how much money you need and the proposed sources of the funds. The Business. A brief overview of the business is highlighted. Describe the product or service.Purpose and goals are stated. For a business not in startup, a brief history is necessary on issues of funds and performance. Give a brief explanation of the legal structure of the business. The Market A description of targeted customer and market niche is given. A small market research overview is also necessary to identify the segment. A market analysis of the 5Ps of market analysis should be discussed. Financial Forecasts. This section should be prepared to show the profitability of the product or service if funding is the main agenda of preparation. Financial forecasts should be made carefully. At least a 1 or 2 years forecast is necessary. The primary objective of this section is to give financial expectations and the route course to achieve these plans. This section should have; A forecast of the business profit and loss account. A cash flow forecast. Ideally, you should also include an estimate of the balance sheet. Appendices. Any additional information that may seem more appealing to the investor should be provided here. In addition to these items mentioned above, you might include: Photographs of the business quotations business equipment and insurance Other legal information of the firm - partnership agreement, leases, etc A copy of research questionnaires. Any relevant secondary research or analysis information. Conclusion The business plan should be taken as an important tool for the business not only during start up but also at any stage of business life. In giving a description of the business, the entrepreneur should be careful to avoid being overambitious. Financial forecasts should be achievable. An entrepreneur should be brief in a business plan as possible and try to write in line with the intended aim of making a plan. WEEK 8 READINGS. I.Sources of capital. No business idea will be useful without funds to implement the idea. Capital is the initial investment by the entrepreneur on the business. In financial accounting, capital is taken as a liability. Major sources of funds. Equity capital. This type of capital is the exchange of partial ownership of the idea or business with finance. It’s also known as share capital. An entrepreneur should use this type of funding when sourcing for a large amount of fund. Loans. Banks and other financial institutions are a straightforward source of funds. A large number of these establishments give loans to start-up enterprises. An entrepreneur should only try to generate some collateral for the loan. The government. Through the SBA (Small Business Administration), The government can assist the entrepreneur with funds and legal advice on any issue of legality. The role of SBA. Venture capital funding. Provide guarantee loans to entrepreneurs. Assist in legal administration in the business. Family and friends. Friends and family of the entrepreneur should be the first investors on the entrepreneur’s idea. On demonstration of the ideas viability and profit forecasts, relatives and friends will join in investment. Credit suppliers. Credit supply is an important financial tool at start up. Convinced suppliers may be willing to provide the business with any amount of raw material with a belief of profitable return.The business should first conduct publicity to ensure the existence of many customers to pay the creditors. This can be done through distribution channels and media. Business angels. These are philanthropists who are ready to finance brilliant idea. An entrepreneur can approach them with a well-written business idea and plan to convince them to fund the projects. Extensive networking is vital while using this type of outsourcing. Grants. Grants are money given by the government to entrepreneurs without the need of return. The entrepreneur may use this type of financing to at all stages of the business life cycle. II. Strategies and growth. From the reading, strategies in entrepreneurship are the laid down policies that an entrepreneur uses to ensure that the business achieves its goals. They include, Market development strategy. These are policies aimed at market expansion. They include, Strategies aimed at a new geographical area. Strategies are focusing on new demographic characteristics of customers and new customer age. Strategies aimed at coming up with new product use. Product development strategies. This strategy aims at developing and coming up with a new product to serve the same purpose. It always involves ensuing correct sales of sales. Diversification strategies. This approach ensures expansion and creation of alternatives. This stratergy can be done through backward and forward integrations. Backward integration ensures that the business is the supplier of raw materials and forward strategies ensure the business is the buyer of the product. Growth. In business, this is the increase of the size of an enterprise both financially and structurally. From week eight reading, the growth of enterprises has many challenges and implications. They include, Create pressure on the human resources such as employees. The management gets pressure to adjust to change. Install pressure on the entrepreneur since he has to work for an extra time to cope with the modification. There is also pressure on financial resources since more funds are required to adjust to growth. In handling these challenges, an entrepreneur should; Ensure better health Have good time management Improve of financial balancing. Delegate some duties. Ethical considerations during growth. The business should uphold accepted code of conduct even during growth. The entrepreneur should consider the following; Avoiding misleading adverts in expanding it’s customer base. Failing to pay their bills and suppliers in time. The entrepreneur should avoid using business money for personal bills. Pay the workers fairly Uphold business honesty at all times. Conclusion Week 8 reading mainly focused on the enterprise. Finance is talked of as a very important tool in the business and entrepreneurs for sustenance. Before outsourcing for funds, the entrepreneur should consider the following; Stage of the business Size of the enterprise Urgency of the fund Availability of collateral. A well written and goal oriented strategy should also be in place at every growth stage to ensure a healthy development of the enterprise. In doing all this, the chapter says that business ethics should be upheld event at the growth stages of the business. WEEK 10 READINGS Entrepreneurship in large organisations. Entrepreneurship has been vastly discussed from reading on week 2.In large organizations, Entrepreneurs are called intrapreneurs. Intrapreneurs are people who exercise their entrepreneurial skills within the organizations they work for. Entrepreneurship and Intrapreneurship are similar in the following ways, They both focus on innovation Both have interest in value edition Involve massive risk taking. Differences. An entrepreneur independent in his actions while an intratrepreneur depend on the entrepreneur. An entrepreneur bears all the risk while an intrapreneur partially bears the risks. Entrepreneur raises funds while intrapreneur doesn’t. Entrepreneur operates from outside the business while intrapreneur is an employee. Challenges of intrapreneurs Lack of independence-There may be too many approvals from the management. Impersonal relationship with the business owner. This reduces the morale of the intrapreneur. Short budget cycle is facilitating shorter targets. Strategies of intrapreneurial development There should be tolerance of risks without fear. Formulation of multiple options. No laying offs. There should be patience on the money. Intrapreneurship in the public sector. The public sector is large in operations and with a vast number of employees. The sector is always characterized by cultures and old traditions in operation.The public sector has limited instances of intrapreneurship du to many reasons.These include; Complexity-The operations are so complex that at times it becomes difficult for employees to be creative. Few systems of change-Some organizations in the public sector have no systems through which change can be effected limited intrapreneurship. Culture-Culture of operation is always preferred by the management to an extent that employees are not allowed to be any creative at all. Lack of visionary leadership to set new strategies in the sectors Limited resources to fund creative ideas. Resistance to change in the public sector. There are many factors discussed on reasons why employees in the public sector are reluctant to change. They include, Limited trust from the management. Negative belief Many economic threats like limited funds. Many fear failure The organization should embrace change through the use of the following strategies, Use of task forces in implement the change. Building collusion. Monitoring the change. Preparing people in advance to expect change. Making symbolic advances to enhance change. social entrepreneurship. This is the application of entrepreneurial aspects in solving social problems in the society. Types of social entrepreneurship. Community Enterprises: These are enterprises which serve a given geographical community serving their interest in the board. Social Firms: They tend to integrate individuals who may find it difficult in the mainstream job market, like physically challenged. Co-operatives: Firms owned, controlled, and run for the sole benefit of their registered members. Community Development Finance Institutions: These institutions give loans and other types of investment mainly for social enterprises and small businesses. Development Trusts: These are enterprises with aims of developing community, generally through the ownership and management of property. Public sector spin-outs Are independent social enterprises started to provide services that were previously provided by public sector firms. They are traditionally referred to as 'externalized' services. Trading arms of charities: these are organizations set up to assume trading activity to raise funds for their aid parent company e.g. charity shops, catalogs, and consultancy. Basic requirements for social ventures. Resources-These is both financial and non-financial resources needed to run the enterprise. Human resources are very fundamental in the management of these enterprises. Legal framework-This is to ensure recognition by the communities and government. Ethical considerations in social entrepreneurship The enterprises should stay in honesty with their expected services Should not concentrate on profit making forgetting about the social aspect Clear and transparency in management of donor funds Summary. The reading has a broad overview of entrepreneurship within large firms and how that is beneficial. Social entrepreneurship is also highlighted in the text giving discussions on different types and the necessities. WEEK 12 READINGS Families and entrepreneurship. The reading is attempting to discuss the relationship between entrepreneurship and families in Australia. Families are viewed as having a serious connection with entrepreneurial ventures and plays a major role in the success of an entrepreneur. Family entrepreneurial firms are increasingly dominating both the financial sectors and service industries in major cities of Australia. The domination by family firms is a boost to the entrepreneurial spirit in the nation. There are many reasons behind the success of these family managed enterprises. They include, Trust-This is a major aspect in enterprises. Many partnerships and organizations fail due to limited trust in their operations. In family businesses, the blood relationship enhances trust between the employees and hence they give their best in the duties given. Availability of funds-Funds from inheritance and plowed back profits in these businesses makes it accumulate more funds for development and operations. Coordination- A good coordination framework within the members of the family ensures that there is goal orientation towards the business success. In these businesses, top management is always family members and their coordination is salient to success. Freedom of entrepreneurship-With good coordination of duties and good relationship between the members of the family, there is more room for creativity and innovation in the operations of the business ensuring entrepreneurship in the business. Challenges of entrepreneurship. There is a trial to relate past success with future success. This backfires in most cases as its more theoretical. Most of these businesses have assets in the form of legacies, and their net values always don’t relate to market values. From one generation to the other, there is difficulty in passage of entrepreneurial spirits from one generation to another. This is a major challenge for one generation may not be entrepreneurial and forced to acquire the trait. Leaders in these organizations try to balance the risks in investment to avoid failure and loss of family funds. Creating dialogue and congruence. The dialogue in family businesses is channeled to create a similar mindset and align issues that will facilitate going concern of the business. A sense of synergy is necessary for these organizations to facilitate cohesion. Congruence on the other side is the application of these dialogues in ensuring that the businesses are managed with people reading from the same script. From the study, the following internal logics are necessary for ensuring congruence. Leadership-A sense of good leadership in these organizations is salient in these businesses. Relationship- Family relationships are important to ensure cohesion in these enterprises. Vision-The dialogues should have a sense of vision in the future of the organization and generation to come. Strategies-Clear strategies for business operations are necessary for the firm. It ensures unity and cohesion. A vision for tomorrow is also a core strategy for the business. Performance-Individual performance translates to group success or failure. If the businesses are well organized, and managed family business will be vital in the firm. Book summary. Entrepreneurship is diverse, and the book covers several dimensions of the sector. From individual entrepreneurs to family enterprises in the week 12 readings. Critical analysis of creativity and innovation and their relationship to risk and return is also discussed. Work cited. Blomous C. Clinton, (2013). Entrepreneurship, business innovation, and world order. Cambridge, Mass.: World Business Foundation, 54(2). Read More
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