The Role of Entrepreneurs in Innovation

This assignment delves into the crucial role entrepreneurs play in driving innovation. It examines how inherent traits and acquired knowledge contribute to an entrepreneur's success. The analysis considers personal backgrounds, educational experiences, and situational factors influencing decision-making in the entrepreneurial process. The document emphasizes the importance of managing these factors effectively to achieve entrepreneurial goals.

Entrepreneurship and small
management

Table of Contents
INTRODUCTION...........................................................................................................................1
1.characteristic traits and skills of entrepreneur....................................................................1
2. Personality reflects entrepreneurial motivation..................................................................2
3. Entrepreneurs born or made...............................................................................................3
4 Background and experience foster entrepreneurship. ........................................................4
5 entrepreneurial characteristics and the influence of personal background .........................4
CONCLUSION ...............................................................................................................................5
REFERENCE ..................................................................................................................................6

INTRODUCTION
Entrepreneurs are known for their innovation and creation. Entrepreneurs take huge
financial risk while implement any new idea. This study describes behavioural trait and skills
that is required for become a successful entrepreneur. It also describes the factor which
influence a person to go extra mile. Study also suggest the process so that a person can become
entrepreneur who does not have business background. Case study which is used in following
study is about Steph croft,founder of Nom Foods , she launches organic Nom popcorn.
Personality trait that helps Steph croft 's and the way she manages the stress. She follows a
standard process by that she got success in her popcorn product. She used different marketing
start to compete her rivalry.
1.characteristic traits and skills of entrepreneur
Risk taker vs risk averse-
Entrepreneur are open to take risk because they believe in no risk no theory. On the other
hand manager try to avoid risk or they take calculate risk only. Steph croft- simon took risk by
making organic popcorn because popcorn do not contain harmful colour and ingredients, so it
has risk of acceptance of product by consumer. Apart from this risk popcorn has less share
market in comparison of potato crisp, which also increases the risk for steph. Consumer can
take this innovation as useless experiment or false business tactics. A manager avoid risk
because does not have risk taking personality as well as his nature of work not demand to take
risky decision.(Macpherson, Jones. and Jayawarna, 2015)
Innovators vs adopter-
Entrepreneur's sight always seek new opportunity in existing system that can bring some huge
profit to them. “Entrepreneur not play with old toys, they make new toys”. Steph croft also bring
innovation in popcorn, earlier popcorn are consumed only for taste and fun but she offers
consumer to add some health benefit in their engaged life. This nutrition addition effort by steph
make its product different from others and people see her popcorn as healthy snack. Stpech also
target children and young people because she knows this age segment has high demand of
popcorn.
Accountability vs responsibility
Entrepreneur has sense of accountability which means he accepts the failure and try to correct it
without external order and motivation. A manager only take responsibility which means manager
1

only accept responsibility for task given to him, manager has nothing to do with failure of
organisation's policy and product. In case manager fails in his managerial work he takes
corrective action when his higher authority ask to do so. In this case stody Steph croft ready to
accept the failure of her decision regarding her new idea.
2. Personality reflects entrepreneurial motivation
Personality trait has huge impact on decision making by Entrepreneurs because they take
decision with huge risk which required self motivation. Some studies find on entrepreneur find
personality trait which help them in tough decision making and face adverse situation with
courage. These personalities traits are given below-
Equanimity-
most entrepreneur have these common personality trait that they remain calm and stable
in difficult situation. They do not loose panic with adverse market condition and risk associate
with their decision. Equanimity motivate and help an entrepreneur to explore more opportunity.
For instance Steph croft did not panic in taking huge decision in launch product in saturated
popcorn market.(Marques and et.al., 2018)
Openness to experiences-
Entrepreneur like adventure at thought level. They don't like repetitive and ordinary
work. They have inner enthusiastic to get new experience. This trait motivates them to show
their creativity skill, and imagination and innovation. Steph croft has this personality trait that
why she uses his creativity in popcorn which is result of her unique imagination and innovation
thought for popcorn.(Putta, 2014)
Conscientiousness-
Entrepreneur are conscientiousness means they do their work with full effort and moral
responsibility. They have passion for their work. This trait motivates them to take accountability.
Entrepreneur always seek for big achievements and they follow mindset of “nothing worth come
easily”. This mindset help them to put a lot of effort in tough situation. If they fail in something,
they stand and fight again. James Watson is the best example for entrepreneur's
conscientiousness trait. He failed 99 time before get success in lighting the bulb.
Optimistic-
Entrepreneur are optimistic in their nature. Optimistic nature help them in seeking
opportunity, for instance its hopeful nature of Steph croft that help her find new way to present
2

popcorn. She knew rivalry product position even after she did not loose hope for her idea. She
decides to tackle situation positively with chasing her customer segment which is also showed
her hope that young people will accept her popcorn by integrate health and taste.(Fayolle. and
Gailly, 2015)
3. Entrepreneurs born or made
This is most talked topic among researcher that entrepreneur are born or they are made.
Its common line some people use that entrepreneurship is in my blood, or I can do business
because my old generation has good track record and all. This is right that some people get
environment and facility which suited for become and think like entrepreneurs for instance if a
person's father was a good business man than he receives knowledge and money for business,
but only money and knowledge can not do anything if a person does not have inner passion and
interest. It can be possible that businessman's son has interest in music and musician son has
interest in doing business.
Individual behaviour changes with time, when he gets new knowledge and experiences,
understanding than risk taking nature affected by knowledge level.(Chell, 2017.) Steph croft had
knowledge of market.(Viinikainen and et.al., 2016) Anyone can become entrepreneur by process
given below-
 First individual has to find industry and market in which he has interest and experience,
as Steph croft has better understanding of food industry so she chooses it.
 Individual must do market research so that he can get the opportunity idea. For instance
Steph croft research today's customer demand of healthy food and other company provide
healthy food and drink only, there are few companies offer organic popcorn.
 Individual can take training and development programme, license, educational degree to
enhance his knowledge and skill which are required to implement his idea into reality.
Steph croft may be acquired more knowledge standard ingredient she can be use and
healthy food making process etc. (Block, Fisch. and Van Praag, 2017)
 After doing whole brainstorm process an individual can slowly move to real market with
calculated risk. Steph croft also target only youngsters which indicate her cautioness
while entering in market.
3

4 Background and experience foster entrepreneurship.
Entrepreneur background consist factor like age, gender, race, immigration, education,
personality etc. there are so many situational factors like government policy, social and cultural
factor, rules and regulation, competition are. An individual's team and network also affect the
process of entrepreneurship.
Steph croft have nice network of friend and interpersonal relation in industry which help
her to get advice, support and help her to get information which are important in making
popcorn. Situation factor like competition affect Steph croft to take decision regarding marketing
decision like she knew the sale of popcorn is less than potato crisps . Although government
policy regarding ingredient used, food making rules and regulation and packaging policy
hamper the Steph croft's speed and it also increases the cost burden on her business, she has less
cost of popcorn but huge operational cost because of legal standard and process decide by FDA.
Earlier Steph's behavioural also get changed with experience , she became more risk taker when
she got deep understanding about market. She has strong financial backgaornd which help her ..
(Staniewski, 2016)
5 entrepreneurial characteristics and the influence of personal background
Personal background include family, race, religion and friends etc. an individual get his
first training from home and he also starts his observation in home. Difference in family
background and Patrice affect the personality and decision of become entrepreneur for instance
an individual who have weak financial background but string entrepreneur skills can not become
successfully. Family has a huge influence on personal trait like individual get become
pessimistic and optimistic by watching activity in family, individual family can encourage and
discourage a personal idea. Religion also play a huge role for example if an individual working
in non veg industry decide to start non food chain, then his religion (whatever) can stop him to
do so. Steph croft's experience play a positive role for her as she get quick knowledge about
opportunity and she knows what has to done to make her popcorn successfully. Personality train
like positivism can be seen in her decision of making a product which already have low chance
of success. Her openness to experiment force him to do smoothing which gives big achievement
to her .(Othman and et.al., 2016)
4

CONCLUSION
From the above study it has been concluded that Entrepreneur are play a very big role in
innovation. They have some inborn traits but these traits can be earn by anyone with proper
research and training. In process of taking decision to become an entrepreneur incudes so many
factor like personal background ,education, situational background etc which can support an
individual in his idea implementation or can create hurdle in whole process. Its all depend on
individuals characteristics that how he manage the situation by using his personality trait and
knowledge. As individual have immense opportunity to change himself according to his
aspiration and desire he must try different way to achieve his goal but never change the goal.
5

REFERENCE
Books and journals
Block, J. H., Fisch, C. O. and Van Praag, M., 2017. The Schumpeterian entrepreneur: a review
of the empirical evidence on the antecedents, behaviour and consequences of innovative
entrepreneurship. Industry and Innovation. 24(1). pp.61-95.
Chell, E., 2017. Introduction and overview to the entrepreneur and entrepreneurial process. In
Tourism and entrepreneurship (pp. 54-72). Routledge.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 53(1).pp.75-93.
Macpherson, A., Jones, O. and Jayawarna, D., 2015. Becoming an entrepreneur: The unexplored
role of childhood and adolescent human capital. In Entrepreneurial Learning (pp. 45-
71). Routledge.
Marques and et.al., 2018. Effects of traits, self-motivation and managerial skills on nursing
intrapreneurship. International Entrepreneurship and Management Journal. pp.1-16.
Othman and et.al., 2016. Influence of work experience and education towards business
performance among entrepreneurs.
Putta, S. S., 2014. Improving entrepreneur's management skills through entrepreneurship
training. Journal of Commerce and Management Thought. 5(3). p.459.
Staniewski, M. W., 2016. The contribution of business experience and knowledge to successful
entrepreneurship. Journal of Business Research. 69(11). pp.5147-5152.
Viinikainen and et.al., 2016. Born entrepreneur? Adolescents' personality characteristics and
self-employment in adulthood.
6