Entrepreneurship: Theories, Motivation, and Characteristics

This report delves into the theories, motivation, and characteristics of entrepreneurship, with a specific focus on Richard Branson. It covers topics such as innovation theory, need for achievement theory, and the role of leadership in entrepreneurship. The report also highlights Branson's entrepreneurial journey and his contributions to the business world.

Entrepreneurship
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Entrepreneurship theories............................................................................................................3
Entrepreneurial motivation..........................................................................................................4
Entrepreneurial Characteristics...................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Entrepreneurship is define as the ability of individual or group of people to establish and
run a business and carry out operations after considering all the situations in order to make
profits (Herrington and et.al., 2010). They are the one who create employment opportunities that
is provide entry level jobs to the freshers. Entrepreneurs establish new business with innovation
in it that is provide new products and services bases on latest technology which helps in
increasing the living standards of people (Bruton, Ketchen Jr and Ireland, 2013). The report is
bases on Richard Branson who is English business tycoon and the founder of Virgin group. He is
among top ten entrepreneurs of UK and his group has 400 companies. The topics covered in the
report are entrepreneurial theory, motivations and characteristics of the entrepreneur.
MAIN BODY
Entrepreneurship theories
An entrepreneur is one who is responsible for carrying business operations together with
many other factors and take the risk in its business in order to earn profits and grow the business.
The entrepreneurship play a crucial role in the economy and helps in the development of
economy (Klein and et.al., 2010). An entrepreneur is one who I known for its risk taking
capabilities and functions under uncertainty. There are different set of approaches and theories
adopted by different entrepreneurs in their businesses in order to attain success. There is no
systematic theory of entrepreneurship and here are theories which are adopted by Richard
Branson (Bacigalupo and et.al., 2016).
Innovation theory- Entrepreneur is one who are innovators that is established business
by introducing new combinations of products and services. Basically they are one who introduce
new methods and techniques in goods and services. In context of Richard Branson, he is dealing
in different type of businesses which are totally new and innovative. He develops new products
according to the market condition. The virgin group is dealing in banking sector where the
branches of bank look like living room (Parker, 2018). The motive behind this new innovative
business is to provide easy and comfort to the customers. Virgin Money is the name of bank
which is operating in Britain and has Wi-Fi facilities, comfortable seating area and has various
magazines and newspaper for its customers.
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Need for Achievement Theory- The entrepreneur is more focused to develop and grow
the business and it is possible with the need for achievement. Basically it determines the desire to
do well in order to obtain the desire results and not just for social recognition but for sake of own
good or for personal accomplishment (Siegel and Wright, 2015). The actions of the entrepreneur
determine their achievements and also guide them to accomplish what they want. In context of
Richard Branson, from the very beginning that is in quite young age he stated with his own
magazine and later started with mail order record business and many more (Delgado, Porter and
Stern, 2010). All this shows his winning attitude and want to achieve something big in life. He is
one of the coolest entrepreneur who is known for his sporting achievements.
Theory of leadership- Entrepreneurship is defined as the role of managerial and
leadership skills where an entrepreneur show his ability to manage and lead. In context of
Richard Branson, he has shown his abilities and leadership styles in early age of 16. He dropped
his school eduction and start working on youth-oriented magazine. This efforts shows his
leadership nature that is he has the power to lead a team with his own innovative ideas and
strategies (Acs, Autio and Szerb, 2014).
Entrepreneurial motivation
Entrepreneurial motivation is the process where an ordinary individual has capabilities to
become powerful businessman that is create opportunities for its own growth and contributes on
wealth maximization and economic development. In order to become successful entrepreneur
one should identify various factors prevailing the environment and analyse the strength and
opportunity accordingly (Berglann and et.al., 2011).
In context of Richard Branson, he has the desire to do something big in his life that is to achieve
big. From the young age he want to do something new and different in order to create positive
impact on the society (Etzkowitz and Zhou, 2017). He want to become independent in his life
and for that he started working at the age of 16. He is among top ten entrepreneurs who take
decisions on their own and always have winning attitude. He starting working very hard in order
to achieve want he want. This attitude has helped him and now he is the owner of Virgin group.
From the very early stage he started working on magazine and is taking interviews of celebrities.
Later on he come up with his own business in banking sector and has its own British airways
(Welter, 2011). All these steps taken by him has made him recognized for his various
contribution to the world of business and economy. He started practising from very early stage
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which has made him experienced. Moreover his way of thinking and coming up with new ideas
and innovation has made him successful as he has proper plans and strategies for the business he
want to enter (Koellinger and Roy Thurik, 2012).
Furthermore Richard Branson with his own business group contributing in the growth and
development of economy. The main motive behind moving in airways business is he want to
provide easy and comfort to customers. The customers should not suffer due the difficulties and
problems of management and its operations. Virgin group is providing full support to
government and functions according to the rules and policies of government. Richard Branson is
a self motive person and he motivates his employees so that they work hard and achieve their
needs and desires (Nambisan, 2017). His main focus is on the success of its employees that they
are able to get desire results in their life. His personal motivation is to become successful in life
and to serve the society. He is very successful entrepreneur as he has the abilities to achieve want
he wants that is he finds the way to prove himself. The organisational motivation for him is to
satisfy the needs and desires of customers and focus in the financial health of its business. His
way of thinking and formulation of strategies is so accurate that his business size is increasing
day by day. The social and environmental motivation for Richard Branson is to make investment
in society and to enhance the life of its employees by motivating them to achieve their set
objectives and goals (Acs, Audretsch and Lehmann, 2013).
Entrepreneurial Characteristics
Being an entrepreneur requires a certain set of skills and characteristics that is by
understanding the essential qualities one can grow as successful business leader. The
entrepreneur characteristics are the qualities which contributes in the success of business and
helps in achieving the business goals and objectives. Here are some characteristics of Richard
Branson which make him successful entrepreneur (Pines, Lerner and Schwartz, 2010).
 Risk taking abilities- He has the ability to take risk in life and has taken risk in the initial
stage by dropping his school education. He at the age of 16 left his school and starting
working on magazine (Frese and Gielnik, 2014). Basically no one knowns the outcome of
the efforts they are making in particular activity before performing it and taking risk in
the life.
 Innovation- Richard Branson is highly innovative in generating new ideas and function
accordingly in order to establishes himself as the brand name and earn profits (Mason and
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Brown, 2014). He is the founder of Virgin group and covers 400 companies under it. He
entered in banking sector with innovation as Virgin money provides living room facilities
to its customers. The British airways provide easy and comfort to its customers so that
they didn't find any problems or difficulties. He is launching new products and services
that is new in the market and are able to create demand in the marketplace (Von
Graevenitz, Harhoff and Weber, 2010).
 Open-minded- In the world of business, every situation may act as opportunity and can
be benefited for the growth of business. He has analysed the situation of banking sector
and has recognised the need for better services and facilities for customers (Estrin,
Mickiewicz and Stephan, 2013).
 Flexible- He is flexible and open to change and take corrective actions according to the
privileging situation. He is among top 10 entrepreneurs in UK because of his capabilities
and understand the need of market and equip changes in its products and services
according to the need and preferences of customers. One of the most challenging
situation is to understand the current trends and behaviour of customers.
 Leadership quality- Richard Branson is born with leadership qualities that is at very
early age he started working independently. With his innovative ideas and strategies he
has the capabilities to lead a team and provide them guidance in order to attain success in
life (Wright and Stigliani, 2013).
CONCLUSION
From this report, it can be elucidated that creating new business and bearing risks for that
creation so as to receive rewards in return is often termed as entrepreneurship. The person
initiating this process is known as entrepreneur often called as innovator for bringing something
new in goods or services. They play a key role in development of the economy using the skills
and initiative capacity that these people possess. The rewards are in form of profits, fame and
continued growth opportunities. The main feature of successful innovators has is the quality of
taking risk. As it is commonly said, “higher the risk, higher the profits”.
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REFERENCES
Books & Journals
Herrington, M. and et.al., 2010. Tracking entrepreneurship in South Africa: A GEM perspective
(pp. 1-174). South Africa: Graduate School of Business, University of Cape Town.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Delgado, M., Porter, M.E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of
economic geography. 10(4). pp.495-518.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and Practice. 35(1). pp.165-184.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice. 41(6). pp.1029-1055.
Frese, M. and Gielnik, M.M., 2014. The psychology of entrepreneurship. Annu. Rev. Organ.
Psychol. Organ. Behav. 1(1). pp.413-438.
Von Graevenitz, G., Harhoff, D. and Weber, R., 2010. The effects of entrepreneurship education.
Journal of Economic behavior & organization. 76(1). pp.90-112.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal. 31(1). pp.3-22.
Estrin, S., Mickiewicz, T. and Stephan, U., 2013. Entrepreneurship, social capital, and
institutions: Social and commercial entrepreneurship across nations. Entrepreneurship
theory and practice. 37(3). pp.479-504.
Mason, C. and Brown, R., 2014. Entrepreneurial ecosystems and growth oriented
entrepreneurship. Final report to OECD, Paris. 30(1). pp.77-102.
Acs, Z.J., Audretsch, D.B. and Lehmann, E.E., 2013. The knowledge spillover theory of
entrepreneurship. Small Business Economics. 41(4). pp.757-774.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Acs, Z.J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy. 43(3). pp.476-494.
Bacigalupo, M. and et.al., 2016. EntreComp: The entrepreneurship competence framework.
Luxembourg: Publication Office of the European Union, 10, p.593884.
Klein, P.G. and et.al., 2010. Toward a theory of public entrepreneurship. European management
review. 7(1). pp.1-15.
Bruton, G.D., Ketchen Jr, D.J. and Ireland, R.D., 2013. Entrepreneurship as a solution to
poverty. Journal of Business Venturing. 28(6). pp.683-689.
Berglann, H. and et.al., 2011. Entrepreneurship: Origins and returns. Labour economics. 18(2).
pp.180-193.
Koellinger, P.D. and Roy Thurik, A., 2012. Entrepreneurship and the business cycle. Review of
Economics and Statistics. 94(4). pp.1143-1156.
Pines, A.M., Lerner, M. and Schwartz, D., 2010. Gender differences in entrepreneurship.
Equality, diversity and inclusion: An International journal. 29(2). pp.186-198.
Siegel, D.S. and Wright, M., 2015. Academic entrepreneurship: time for a rethink?. British
Journal of Management. 26(4). pp.582-595.
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