Discuss about the Significant issues facing entrepreneurs in IT.
From the age of industrialisation the entrepreneurial ventures have made their place in various industries. All around the world there are many new entrepreneurial ventures that are coming up (Ashe-Edmunds, 2018). Entrepreneurs have an idea of changing the society and later develop that idea into the business. Such ventures have helped the society in many ways especially in lifting their standards of life style. This has led to coming up of any new business. It is also to be understood that since the business has transformed a lot over the years. This has created many issues for the entrepreneurs that are present in the industry. The major challenges are occurring for the new entrepreneurs that are planning to come up in the industry. In the modern times most of the entrepreneurial ventures are coming up in the IT industry. This report highlights the entrepreneurial ventures that are coming up in the society and the challenges that they are facing while establishing their business. It also describes the factors that influence the probability of new venture achieving success.
IT industry in the current times is the biggest industry in the whole world. IT mediums have become an integral part of the lives of individuals as well as for the operations of every organisation. Most of the companies in this industry are working either in secondary sector or tertiary sector (Bailetti, 2012). There have been shift in the number of entrepreneurial ventures from the automobile industry in the start of the 20th century to IT industry towards the end of the same century. Since the speed of research that is going on the IT industries are larger in number. This has led to emergence of new ideas as per the requirements of the society which have been successfully transformed the new business. The dependence on IT mediums for completing most of the operations in other industries has also boosted up new ventures in this industry. Some of the most successful entrepreneurs are from this industry who is also great innovators like Steve smith co-founder of Apple or Sergey brin and Larry page founders of Google Inc.
In spite of having so many new entrepreneurial ventures this fact cannot be denied that there are significant amount of issues that are faced by them in the information and technology sector. All these issues are pulling down the success ratio in the longer run. Some of the issues faced by entrepreneurs are as follows:
- Heavy investment: Since the number of researches that are going on in this industry is large in number. This has compelled entrepreneurs to invest a lot on the various kinds of research related to their business (Chakravarty, Grewal & Sambamurthy, 2013). The research must be in terms of the demands the consumers have as well as the need of the technology industry. This has forced entrepreneurs to be more selective while carrying on with any idea. Although comparative to other industry, the amount of investments that is needed by this industry is less.
- Existing competition: The competition in the IT industry is getting tougher and tougher. The survival of the ventures has not remained any easy task. There are lot of bigger companies who have control over the larger part of the market and hence coming up with the new idea and making it count for the business is a difficult task (Del Giudice & Straub, 2011). Bigger and smaller firms that are doing extensive research in the same fields and hence they have more power to influence the demands of the market.
- Ethics: The penetration of the IT industry in the personal lives of the people have increased significantly, there are lot of ethical issues that are also coming up. One of the most significant challenges that entrepreneurs are facing is about the security of the personal data of billions of people on their servers (Drucker, 2014). There are many hackers that are operating in different parts of the world and are working for either stealing or corrupting the data. They sometimes also intend to destroy the system. This is a matter of concerns for the entrepreneurs in this sector.
- Technological advancements: Technology in the fields of IT sector has been advancing at very fast rate. This has created many new challenges for the entrepreneurs as they need to raise funds for making technological advancements (Ejermo & Xiao, 2014). It is a challenge for most of the entrepreneurs as the cost of the new technologies and their implementation is very high. It is also to be understood that bigger companies that are already established has large amount of resources and hence they can easily make these changes but for the new firms it is a bigger challenge.
Significant issues facing entrepreneurs in IT
There are large numbers of entrepreneurial activities that are going on in the IT industry. This has also been possible due to the fact that there are huge amount of researches that are going on in this industry (Lundqvist, 2014). Due to this there are many new entrepreneurs that are coming up. It was also possible due to larger numbers of investors interested for investing in the new ideas. It is a result of the new entrepreneurial ventures that the cost of the technology and the software being used inside the industry has decreased considerably. It has also resulted in making sure those things that was considered to be impossible some decades back is possible in the present scenario.
New kinds of entrepreneurial ventures are coming up is based on the idea that can resolve some of the problems existing in the society. There are many challenges that are faced by the societies and the entrepreneurs are trying to resolve those. There are many new ventures at the local levels are coming up that are promoting the expansion of this industry in the lives of the people. They are easily getting investments by the investors or government based on the ideas of their. In most of the parts of the seeing the socio-cultural benefits of entrepreneurial activity the governments are also promoting it in different ways (Martín-Rojas, García-Morales & Bolívar-Ramos, 2013). On the larger platform there are many entrepreneurs that have made their name but are investing in the new technologies of Future like the Virgin group and some more. On the smaller levels there are small entrepreneurs that have emerged in many countries. These smaller entrepreneurs are basically providing services to the bigger firms. Most of them are just the entrepreneurs that are utilising someone else ideas for continuing with their business.
It is crucial to understand the probability of new venture gaining success in the industry without which investments can go in loses (Nambisan, 2013). There are many factors that are influencing the success of the new ventures. Some of them are as follows:
- Competition: The more the competition in the market the lesser the chances to achieve success in new ventures. Bigger competitors always tend to influence the trends in the market which has a direct impact on the performance of the new entrepreneurs coming in the industry (Onetti, Zucchella, Jones & McDougall-Covin, 2012).
- Innovativeness: The higher the innovativeness in the idea of the entrepreneur’s, the higher the probability of gaining success. This is due to the reason that innovativeness in the idea always helps in satisfying the needs of particular sections of the society. Innovative products always find its place in the market as they create blue ocean strategy for the company.
- Value of the product: More valuable a product is for the market more is the chances of it getting success. It is also crucial that entrepreneurs make an operational mechanism where in stage value is added to the products because it is only thing for which a company pays (West, 2012).
- Need of the society: There are many entrepreneurial ventures that get failed. This is due to the reason that they are unable to fulfil the need of the society or they are many a time unnecessary and fall short of fulfilling the needs of the consumers.
- Resources: The amount of resources and the quality of the resources an entrepreneur has arranged for doing their business has impacts the probability of their success (Ratten, 2013). In IT industry entrepreneurs needs to make sure that they have most advanced technologies and an excellent talent pool for developing their business.
From the above report it can summarised that there are many entrepreneurial ventures that are coming up in the IT industry. Many of these entrepreneurs come with the original ideas while most of them copy the ideas of others. IT industry is one of the fastest growing industries and many new kind of smaller entrepreneurs are also coming up in the industry. Apart from this there are many issues that are faced by the entrepreneurs in this industry. Understanding the trends in the IT market is one of the most essential aspects in any entrepreneurial venture. It is crucial that many of the new entrepreneurial ventures are coming up at different levels of IT industry. There are several factors that are affecting the probability of success for the entrepreneurial ventures
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