Importance of Entrepreneurship: Traits and Skills

This report explores the importance of entrepreneurship and the traits and skills required for success. It discusses the critical analysis of entrepreneurial traits and the practical application of these skills. The report also highlights the theories of entrepreneurship and their practical application in a real-life business scenario. It emphasizes the role of entrepreneurship in driving innovation and growth in business.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical analysis of entrepreneurial traits ans skills.....................................................................1
Practical application of guest entrepreneur for establishing a link between theory and practice.
.....................................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is the capacity and state of developing, organising and running a
business organisation, apart from this ability of facing any uncertainties in order to make profits.
Its role in the economy is to improve standards of living and creating wealth, not only for the
entrepreneurs, but also for the related businesses (Wiklundand 2017). On the bases of economy
high earnings are the gift of entrepreneurs which also boost national income and tax revenues.
The person who has ability and desire to establish, administer and succeed in starting new
venture is known as entrepreneur. An entrepreneur has needs to have skills of human resource
management, marketing, decision making and finance. Apart from this, traits like having self-
confidence, innovativeness, stress tolerance and need of achievement are also important for any
entrepreneur. These things are important for entrepreneurs as they tend to have strong
communication skills and strength which help them interact with people. This report focuses on
the importance of entrepreneurship, different skills and traits which are required as entrepreneur.
MAIN BODY
Critical analysis of entrepreneurial traits ans skills.
Every entrepreneur assumes about the risks which may happen in business while they in
return rewarded with lots of pressure. That is why it is important that right entrepreneurial traits
which would get better position to fulfill their goals. The following are the traits which have
been discussed by one of the guest entrepreneur Faiza from Slync. She is entrepreneur in
company which provides social hiring tool to those candidates who wants to highlight their talent
and shares profiles with employers (Sutter,Bruton and Chen, 2019).
Point- Self-confidence
Explanation- It can be defined as the attitude of having skills and abilities which means
that entrepreneur accepts and trust the work done by him and has full sense of control in life.
Relate- Fazia from Slync expressed that for running her business she was and is confident
about the thinks she is doing by which she has seen that her work would get done easily. For
instance if she was not confident about her work, that time she either dropped that part and
handed over to her partner. By this meant that if you are not having confidence do not try to do
that thing, its is not sure that you would succeed that is why its ok to hand over to the other
person.
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Point- Innovativeness
Explain- The state of mind which has attributes of being innovative to grow continuously
and renew an enterprise with new and better products with effective processes and enhance
business models.
Relate- Guest entrepreneur Fazia believes that bring innovativeness in business creates
fresh image on minds of people. According to her it is important for an entrepreneur to thing at
the level where its audience do not image the things can be (Siqueira, Webb and Bruton, 2016) .
She says that people didn't believed about the idea of hiring people through an application or
website. Having different mindset can give great work to people and by this they can earn good
profits in business. Innovativeness of person helps in assessing the problems and getting the
solutions for them becomes hobby of many people.
Point- Stress tolerance
Explain- The ability to relaxing and composing mind while facing difficulties can be
defined as stress tolerance of entrepreneur. Every person has different level of stress and
different ways to claim themselves.
Relate- There has been times where Faiza, an entrepreneur of Slync had difficulties at the
time of start the business, she says that starting a business means getting yourself blow full of
difficulties and challenges. But it is important that you should not focus on those things as they
are temporary, it is necessary that you focus on the goal. Having stress of work is normal, it
depends on the priorities people have. If they are focused for the work then they would not care
about such things and if they care then they can not work with such thinking.
Point- Need of achievement
Explain- The importance of things which unmet the needs that requires satisfaction with
the help of entrepreneurial persistence can be defined as need of achievement for an entrepreneur
(Marvel and2016).
Relate- Faiza as guest entrepreneur said that for her the achievements are very important.
With the aim of achieving something the ability of doing work increases. She always has some
objective and goals which she wants to achieve. Once those aims are achieved her ability of
doing things increase as this works as motivation for her. Achieving something is equal to
reward which one can give to himself or herself. She suggest to every entrepreneur and even any
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employee to set the goals with get period of time. By this one can challenge himself to work with
certain aim and achieving that would give ultimate reward which can not be achieved by anyone.
Apart from this traits, some skills are also important for an entrepreneur so that the task
and working in the business can be easy to operate plus with some good skills one can motivate
other people in company (Mandel and Noyes, 2016). The following are some skills which are
necessary according to Faiza:
Point- Marketing
Explain- It refers to activities company undertake for the promotion of buying and
selling Of the product or service. It undertake all activities through which company can maintain
relationship with customer. It is necessary for the growth of the firm and for increasing the sale.
Relate – The guest entrepreneur Faiza narrated how she exhibited the marketing skills in
the business because without this they can not establish themselves in emerging industries. In the
Slync the promotion activity is necessary for the growth. Marketing strategy is also developed by
understanding the mission and goal of the firm. She can also do the online marketing for increase
the sales and improve the productivity of the product. The most common trait which are found in
entrepreneur are innovation, risk taking and good communication skills. Growth is the goal of
entrepreneurship and marketing is the primary way for growth.
Point- Finance
Explain- It refers to management and study of money such as investing, borrowing,
lending, borrowing, saving. It divided into three category personal, corporate and public finance .
Businesses obtain finance through various sources.
Relate- The guest entrepreneur Faiza narrated how she exhibited the finance skills in the
business because without them no business operates in these market. In Slync finance is used for
the creation, development and acquisition of business. In the market financial performance is
very important for the company (Fu Okumus and 2019). All the decision is taken on the basis of
the profitability analysis, entrepreneur can also borrow loan from other financial institution for
the expansion. She can not operate the business without finance. Through this entrepreneur can
invest money at specify interest rate and also borrow money at specify interest rate which is
necessary for the organization.
Point- Decision-making
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Explain- Decision making is a process of selecting appropriate course of action to
achieve desired result.
Relate- Faiza who started an organization named as 'Slync' stated that 'Decision-making'
of management plays a vital role in strategic planning of any organization. Managers should
make right decisions for 6 Ms in organization, which are, money, men, material, market,
machine and methods. This will ensure optimum utilization of resources available and increases
efficiency of an organization. According to this entrepreneur, decisions made by management
has very crucial role in growth and expansion of any business (Fritsch and Wyrwich, 2017) .
Effective planning motivates employees to work harder towards their target which further
ensures achievement of business objectives. It empowers firm to face challenges in an efficient
way. Effective decision making increases company's productivity and minimizes risk factor.
Point- Human Resource Management
Explain- Human resource management implies recruitment, selection, induction, training
and motivation of employees of organization. It certifies optimum utilization of working force of
firm for the purpose of increasing profitability.
Relate- Entrepreneur assures that better management of human resource is essential for
business. It ensures selecting right person according to company's requirement so that they
perform effectively to achieve firm's objective. Employees should also be motivated on regular
basis to maintain or even increase their productivity level (Calic and Mosakowski, 2016).
Compensating and rewarding employees on good performance also leads to increase in their
motivation level. Human resource management (HRM) also covers training of employees which
increases their skills and knowledge and hence, enhances their engagement in firm. HRM is
responsible for ensuring that every employee is aware of values and motives of company. Faiza
also reveals that it works as a bridge to decline gap between objectives of business and
performance of employees. It has great importance in development and expansion of business.
Practical application of guest entrepreneur for establishing a link between theory and practice.
Entrepreneurship is the activity which uses by a person by establishing a business with
the help of their skills, talent and abilities that helps to operate a business and increase the
organizational productivity. Different theories in relation to entrepreneurship which uses by
Faiza are as defined:
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Schumpeter’s theory of creative destruction: This theory is related to perpetual
products and process of innovation mechanism by which new production units replaced outdated
ones. This theory states that an entrepreneurs should things about brining innovation and changes
in their organisation so that all activities and performance can be improved. In other words,
theory of Schumpeter’s is closely connected with importance of economic dynamism that can
help to analyse the environment and bring the changes accordingly. All the business
entrepreneurs bring the use of such theory in their organisation which supports to complete the
research and increase learning how to bring the changes in their organisation and maintain the
higher performance by developing the activities. The selected entrepreneurs uses this theory in
their organization name is Slync for brining the innovative products and services instead of
existing one which helps to develop a business and maintain higher productivity. The concept
behind this, many businesses are still work in the old, ignoring supply chain impacts and
wastages that create the higher cost. This theory suggest that by replacing outdated process from
new process can help to increase the sales and sustainable business in changing environment
(Schumpeter’s theory of creative destruction, 2020).
Kirzner’s theory of Alertness: This is another theory of entrepreneurship in which
Kirzner states that a business concern balance supply and demand by knowing the market
perfection and exploiting them. It has been seen that customers are demanding trending products
and services which should be provided by organisation that can help to maintain the customer
satisfaction. Market imperfection caused by information asymmetry and bounded rationality that
are important to consider while running a business. Faiza uses this theory by maintaining balance
between demand supply of products. The entrepreneurs understand in which area customers are
more demanding and make efforts to provide that helps to develop the different business
opportunities and maintain good performance. The entrepreneur have good communication and
coordination skills that helps to understand demand and make efforts to maintain balance
effectively that helps to sustain in competitive environment (.Kirzner’s theory of Alertness,
2020).
Faiza is good entrepreneur who possess of different traits such as Self-confidence,
Innovativeness, Stress tolerance and Need of achievement that helped to establish a business
successfully by managing all activities and functions. This uses Schumpeter’s theory which
motivated to bring the changes in existing process and method so that business can grow and
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develop continuously. This person have skills such as Marketing, Finance, Decision-making ,and
Human Resource Management that helps to know the needs of customers and employees then
provide the products and services accordingly. By having all skills and traits, create a difference
from other entrepreneurs as they feels fear to take any changes and risk where as Faiza has
adopted all risk and changes in their business which helps to take the competitive advantages.
CONCLUSION
From the above report it can be concluded that there are some skills and traits are
important for every entrepreneur as they help in smooth functioning of work. The traits like
innovativeness, stress tolerance power, self-confidence and need of achievement are things
which can help in getting work at different level. The skills like marketing, finance, decision-
making and human resource management helps entrepreneur in managing work within
company.
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REFERENCES
Books and Journals
Calic, G. and Mosakowski, E., 2016. Kicking off social entrepreneurship: How a sustainability
orientation influences crowdfunding success.Journal of Management Studies.53(5),
pp.738-767.
Fritsch, M. and Wyrwich, M., 2017. The effect of entrepreneurship on economic development—
an empirical analysis using regional entrepreneurship culture.Journal of Economic
Geography.17(1). pp.157-189.
Fu, H., Okumus and et.al., 2019. The entrepreneurship research in hospitality and
tourism.International Journal of Hospitality Management. 78. pp.1-12.
Mandel, R. and Noyes, E., 2016. Survey of experiential entrepreneurship education offerings
among top undergraduate entrepreneurship programs.Education+ training.
Marvel, M. R. and et.al., 2016. Human capital and entrepreneurship research: A critical review
and future directions.Entrepreneurship Theory and Practice.40(3). pp. 599-626.
Siqueira, A. C .O., Webb, J. W. and Bruton, G .D., 2016. Informal entrepreneurship and industry
conditions.Entrepreneurship Theory and Practice.40(1).pp.177-200.
Sutter, C., Bruton, G. D. and Chen, J., 2019. Entrepreneurship as a solution to extreme poverty:
A review and future research directions.Journal of Business Venturing.34(1). pp.197-
214.
Wiklund, J. and et.al., 2017. ADHD, impulsivity and entrepreneurship.Journal of Business
Venturing. 32(6). pp. 627-656.
Online
Schumpeter’s theory of creative destruction. 2020. [Online]. Available through:
<https://www.cmu.edu/epp/irle/irle-blog-pages/schumpeters-theory-of-creative-
destruction.html>
Kirzner’s theory of Alertness: 2020. [Online]. Available through:
<https://entrepreneurshiptheories.blogspot.com/2017/08/kirznerian-
entrepreneurship.html>
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