Factors and Characteristics of Entrepreneurship

This essay critically analyzes the different factors and characteristics of entrepreneurship, including innovative ideas, risk-taking ability, personality traits, and environmental factors. Real-world examples are used to illustrate the importance of these factors. The impact of internal and external factors on entrepreneurship is also discussed.

Running head: ENTREPRENEURSHIP
Entrepreneurship
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Introduction
In the current business scenario, one of the major trends being emerged is the concept of
entrepreneurship. This refers to the initiation of innovative ideas in the existing business
processes or existing business sector. In majority of the cases, concept of entrepreneurship
depends entirely on the innovative idea and risk taking ability. There are different aspects and
perspectives that can be considered in studying the further analysis of the concept of
entrepreneurship. These aspects range from the influential factors to characteristics.
This essay will discuss about these different factors for consideration in studying the
concept of entrepreneurship. In doing so, different set of information such as peer reviewed
articles and news articles will be used in order to identify the diverse factors and their importance
in entrepreneurship.
Characteristics of entrepreneurship
One of the major characteristics of entrepreneurship is promoting innovative idea. This is
due to the reason that the concept of the entrepreneurship is majorly depended on the innovative
approach of the entrepreneurs. According to Estrin, Mickiewicz and Stephan (2013), the more
effective will be the innovative approach of the entrepreneurs, the more will be the probability of
having successful entrepreneurship. It is also being stated by the authors that entrepreneurs can
only get succeed in the market and can effectively compete with the established players if they
are having the access to the innovative and radical ideas. It is also being reported by different
media that in the current time, availability of different opportunities and mediums further
contributing in generating the innovative ideas from the probable entrepreneurs
(www.forbes.com 2018).

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Another major characteristic of entrepreneurs being identified is risk tolerance and risk
taking ability. According to Hvide and Panos (2014), it is important for the entrepreneurs to have
the risk taking ability. This is due to the reason that entrepreneurs are majorly had less expertise,
resources and infrastructure for starting their business. Thus, according to the authors,
entrepreneurs should have the risk taking ability in order to take more risks in doing business.
This is being identified as one of the major characteristics by the authors. According to media
reports, there are number of risks being taken by Steve Jobs that further helped him to build the
brand of Apple (fortune.com 2018). One of the major risks taken by Steve Jobs is not following
the existing business approach and trend and going by his own way. It is also reported that
bearing the risks helped Steve Jobs to create own identify in the market distinctive from others.
Importance of personality in entrepreneurships
Apart from the above discussed characteristics of the entrepreneurs, there is another
important factor also to be noted and considered. According to Leutner, Ahmetoglu, Akhtar and
Chamorro-Premuzic (2014), personality is also an important factor for the entrepreneurs. This is
due to the reason that number of personality related factors such as having the ability to take
initiative and showing pro-activeness in driving the entrepreneurship are important to get
succeed. This is due to the reason that according to the authors, if the particular entrepreneur is
having the ability to initiate then chances of losing opportunities will get reduced. In addition, it
is also being stated by the authors that the personality of the entrepreneur should also have the
problem solving skills. This is due to the reason that entrepreneurships depends on the ideas by
the entrepreneurs. Thus it is the core responsibility for them to initiate new ideas and conceive
the effective solutions for the probable issues.

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It is also reported that the in the current time, one of the major and most prominent
examples of entrepreneur with having favorable personality traits is Jeff Bezos, founder of
Amazon.com. It is reported that there are number of personality traits such as having ambition
and being adventurous helped Jeff Bezos to get succeed in the market (Hodges 2018). This is due
to the reason that the adventurous nature of Jeff Bezos enabled him to bear more risks in the
market such as taking the less conventional path and implementing blue ocean strategy. In
addition, it is also being reported that Jeff Bezos is having more inclination towards facts and
analysis over emotional thinking. This personality trait of him enabled to drive his organization
more practically.
Thus, from the above example of Jeff Bezos, it can be concluded that personality is one
of the most important characteristics to be considered by the entrepreneurs in having effective
process of entrepreneurship. In addition, it can also be concluded that personality of the
entrepreneurs also determines the extent to which the business will be driven effectively and
efficiently.
Impact of environmental factors on entrepreneurships
There are number of external environmental factors that determine the effectiveness of
entrepreneurship. One of the major factors is the political factor. This refers to the government
efficiency and political stability in a particular country. It is being stated by Dutta, Sobel and Roy
(2013), that political risk is one of the major influential factors for the entrepreneurs. This is due
to the fact that if the particular home country of the entrepreneur is having more political
instability then it will become difficult for them to promote their ideas. For instance, it is
reported by the New York Times that socio-political environment of the United States helped

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Steve Jobs to get the required support for promoting his ideas. It is also being reported that the
external environment of the United States was more favorable for the business approach of Steve
Jobs compared to some other countries (Lohr 2018).
Another major environmental factor that determines the effectiveness of the
entrepreneurship is the social and technological sector. This is due to the reason that according to
Castano, Mendez and Galindo (2015), if the home country cannot have the required
infrastructure for nurturing innovative ideas along with not having favorable social acceptability
towards the concept of entrepreneurship, then it will be difficult for the entrepreneurs to promote
their idea. For instance, if Steve Jobs did not had the required facilities in the United States for
building his computers and electronic gadgets in his earlier time, then maybe it would have
difficult for him to develop his business as it is now in the current time.
Impact of community on entrepreneurship
According to Felicio, Goncalves and da Conceicao Goncalves (2013), apart from the
external factors, there are also some internal factors that are having impact on the effectiveness
of entrepreneurship. The authors have stated that internal factors such as family and community
are having influence on the business approach of the entrepreneurs. For instance, entrepreneurs
from the western countries will have more inclination towards having economical products in the
market. On the other hand, the entrepreneurs from the developing countries and the eastern
regions will have the preference for social empowerment. According to the authors, this is
mainly due to the influence of the family and community on the entrepreneurs. In addition,
governmental factors also determines the effectiveness of entrepreneurship due to the fact that

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entrepreneurs from China will have more socialistic approach while entrepreneurs from the
western economies such as the United States will have more capitalistic approach.
Conclusion
Thus, it can be concluded that entrepreneurs are having different factors and aspects for
considerations in order to get succeed in the market. This essay critically analyzed the different
factors with the help of different views and real world examples. This report also concludes that
the concept of entrepreneurs can get influenced both from internal and external factors along
with determining the effectiveness of the entire process.

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Reference
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2015. The effect of social, cultural, and
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