Entrepreneurs usually start, organize and manage businesses bearing in mind the initiative and the risk that they are taking so that they can receive a reward at the end of the business process. As managers, they usually take part in the overseeing the implementation of new business procedures and the launching of new products in the market due to their creativity, innovation and the desire to fill the gaps that exist in the market (Sami, 1989). In this paper, I will write a report summarizing the most important insights that I have learned and gathered from the research about one entrepreneur named Laurine. I will look into the patterns, the similarities as well as the differences that exist between the entrepreneurship theory and her entrepreneurial orientation, behavior, and mindset.
Type of entrepreneur
From the research, Laurine can be said to be a determined entrepreneur. This is because, even though she has not yet made it be the person that she wants to be in business, she still strives hard to achieve it irrespective of the circumstances (Kaplan, & Warren, 2010). She greatly sees the value in entrepreneurship and feels that it is possible to achieve the success that she desires even without copying what other people are doing and she thus devotes herself to do anything that it takes for her to grow her business. Even though starting and ensuring a steady growth in business is hard, Laurine commits to the task, and this shows the possibility of her business thriving in future. For an entrepreneur to get where they want to be in future, they need to change their mindset such that they focus on the shape they know their reality is likely to take (Kuratko, & Hoskinson, 2017).
Factors that motivate people to pursue entrepreneurial opportunities
Different entrepreneurs have varying opinions or perspectives on why they undertake entrepreneurship. One of the things which motivate people to undertake entrepreneurial activities is passion. When individuals have the belief in something, they usually have the courage of getting involved in risk taking business ventures. It is as a result of the passion that they have that they have the faith that they can push through their business ideas and they can achieve this through sheer hard work and perseverance (Krueger, 2002). It is the energy that arises from their passion that motivates the entrepreneurs to keep pressing on even when things do not go as expected. The other thing that motivates people to take part in entrepreneurial opportunities is the desire for self-reliance. When people are employed, they do not have the freedom to execute or solve problems as they desire because they have to follow the protocols set in the organization. Some people are thus motivated by this to engage in entrepreneurial activities so that they can fully exercise their creativity, enjoy a sense of freedom and also be independent.
The third thing which motivates individuals to engage in entrepreneurial activities is the feeling of accomplishment. In this case, some people out of the feeling of pride usually develop the desire to make a difference in the society that they live in through the establishment of business ventures. People want to become their bosses so that they can derive satisfaction from that, give their customers the best experiences and also strive hard without limit so that they can achieve the desired level of excellence. The other thing that motivates people to pursue entrepreneurial opportunities is the desire to attain the sense of control. This is because the entrepreneurs have a job security and complete control over all activities that are taking place in their businesses and this great aids in the driving of their skills.
The other thing that motivates people to take part in the business ventures is the desire to attain personal growth. Running a personal business achieves an individual to achieve growth because through the challenges that they face on a daily basis, they can become conscious of who they are and this greatly assists in the achievement of their desired phenomenal growth. Having no one to rely on, entrepreneurs do not have options rather than working on their weaknesses so that they can be in a position to see their businesses grow.
Challenges faced by entrepreneurs
One of the challenges that entrepreneurs usually encounter in their business ventures is lack of adequate capital. In this, inadequate capital usually plagues many businesses especially the startup and this at times leads to the closure of businesses (Ortiz, & Sahut, 2014). In most of the cases, when businesses are starting up, they do not have the required cash flow, and this interferes with their operations. The setting of the prices is also an issue because if they set the prices too high, they may end up not getting customers and this will lead to low sales while on the other hand if they set the prices too low, the business will not be profitable. They thus encounter difficulties when making the right pricing decision.
The other challenge that the entrepreneurs face is the weak management. The fact remains that an individual has adequate knowledge and skills of being a creative entrepreneur does not guarantee them of being a good manager. They are usually faced with the challenge of ensuring that they recruit the best employees to fill the existing positions. The entrepreneurs are thus supposed to ensure that they hire a string management so that they can be in a position to work hand in hand to ensure that they provide goods and services that meet the needs of their clients. The hiring of a weak management team can result in poor operational performance in the organization and also inadequate business plan (Kaufmann, & Shams, 2015). To ensure a strong management team, entrepreneurs should consider offering regular training to their employees so that they can be in a position to perform effectively and also develop a business plan that is solid.
The third challenge that the entrepreneurs usually encounter is ineffective marketing. Even though a business may be having very good, unique and high-quality products which have a great potential market appeal, they should consider advertising in a very cost-effective manner so that they can reach a wide scope of customers. If the entrepreneurs do not carry out market research, they are not likely to know the best time to introduce their products or services in the market or to know whether the size of the market is adequate to support its business activities. Entrepreneurs should thus carry out a market research so that they can familiarize themselves with the market that they want to invest in and hence the best marketing strategy that they should adopt so that they can reach a wide scope of the target market (Davidsson, 2008). However, consideration should be taken into to ensure that the cost of marketing is less than the revenue that the business is likely to receive from the sale of the products so that the business can earn a profit. If the costs are greater than the revenue, the business will not be profitable.
Importance of teamwork in entrepreneurship
One of the importance of teamwork in entrepreneurship is that ideas flourish. In this, when the entrepreneurs work as a team, they can feel comfortable sharing ideas with each other and this usually leads to brainstorming of information which is beneficial to all teams. In addition to this, teams that work together can research a team, and this reduces the costs that each of the entrepreneurs could have incurred carrying out their research. The other importance of teamwork in entrepreneurship is that the team members can support each other. In this, they assist each other in the improvement of their performance, achieve development professionally, and this results in the development of trust between them (Glauser, 2016).
Importance of networking in entrepreneurship
Networking is considered to be key to the achievement of business development and personal growth among the entrepreneurs. Entrepreneurs thus need to network with each other so that they can draw energy from each other and hence achieve the desired success. One of the importance of networking in entrepreneurship is that people have the opportunity to share knowledge and ideas. This greatly aids in the expansion of their knowledge which gives them an opportunity to view issues from a different perspective. The other importance of networking is that it always leads to opportunities through referrals among other methods such as partnerships and requests for products or services. Networking thus assists the entrepreneurs in taking advantage of the opportunities available. The other importance of networking is that it increases the confidence of the entrepreneurs. In this, when the entrepreneurs network regularly and push themselves in interacting with people they don’t know, they can raise their level of confidence. This attribute is very imperative for the entrepreneur because the growth of their business ventures highly depends on the connections that they have and interaction with other people (Corbett, & Katz, 2013).
Patterns, differences, and similarities between entrepreneurship theory and an entrepreneur’s mindset, orientation and behavior
One of the similarities that Laurine mindset, behavior and orientation have with the entrepreneurship theory is that she is fully committed to giving her best in her business venture. She ensures that she carries out adequate market research so that she can know what the customers out there need. The other similarity is that she is very innovative. In this, to fill the gaps that exist in the market, she works towards the creation of new products in the market and opening up of new markets (Little, Go, & Poon, 2017). In entrepreneurship theory, the entrepreneurs need to be very innovative, organize their abilities and also ignore the risk taking. Her mind is set on achieving the goals, and that is why she considers interacting with the other entrepreneurs in the market and working as a team to be of great importance. This is because, through this, they can trust each other and then offer assistance so that they can grow professionally.
One of the differences between Laurine mindset and the entrepreneurship theory is that she focuses on being a risk taker instead of being risk averse. In this, before investing any business venture, Laurine should ensure that the cost involved in the building up of the business idea and implementing it is less than the revenue expected from it. Laurine should focus on being a risk averse individual such that she should only invest in the business venture whose expected revenue is greater than the costs involved (Schulte, & Sauer, 2014). The other issue is that the entrepreneurs should learn to be consistent and reliable. In this, they should ensure that they produce goods and services that are high quality so that once they attract customers; they can be in a position to retain them. In addition to this, they should always focus on their passion, their desire to achieve self-control, independence, and reliance so that they can be motivated towards reaching their set goals. Finally, it is clear that entrepreneurs need to remain focused at all times so that they can achieve and maintain a steady growth in their businesses.
Corbett, A. & Katz, J. (2013). Entrepreneurial resourcefulness : competing with constraints. Bingley, U.K: Emerald.
Davidsson, P. (2008). The entrepreneurship research challenge. Cheltenham, UK: Edward Elgar.
Glauser, M. (2016). Main street entrepreneur : build your dream company doing what you love where you live. Irvine, California: Entrepreneur Press.
Kaplan, J. & Warren, A. (2010). Patterns of entrepreneurship management. Hoboken, N.J: Wiley.
Kaufmann, H. & Shams. (2015). Entrepreneurial challenges in the 21st century : creating stakeholder value co-creation. Houndmills, Basingstoke, Hampshire New York, NY: Palgrave Macmillan.
Krueger, N. (2002). Entrepreneurship : critical perspectives on business and management. London New York: Routledge.
Kuratko, D. & Hoskinson, S. (2017). The great debates in entrepreneurship. Bingley, U.K: Emerald Publishing Limited.
Little, S., Go, F. & Poon, T. (2017). Global innovation and entrepreneurship : challenges and experiences from East and West. Cham, Switzerland: Springer Nature.
Ortiz, M. & Sahut. (2014). New challenges in entrepreneurship and finance : examining the prospects for sustainable business development, performance, innovation, and economic growth. Cham: Springer.
Sami. (1989). Entrepreneurship development in India. Delhi, India: Mittal Publications.
Schulte, A. & Sauer, B. (2014). Entrepreneurship : theory, role of economic development and practices. Hauppauge, N.Y: Nova Science Publishers, Inc.
Welsch, H. (2004). Entrepreneurship : the way ahead. New York: Routledge.