Factors that Motivate Entrepreneurs to Start a Business
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This report analyzes the various drivers or factors that motivate entrepreneurs to become successful by taking risks and responsibilities to enjoy the profits of their organizations.
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Entrepreneurship 1
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TABLE OF CONTENT INTRODUCTION...........................................................................................................................3 Various drivers that motivates entrepreneur to start business.....................................................3 CONCLUSION................................................................................................................................7 2
INTRODUCTION Entrepreneurship is ability of individual to take financial risk in order to earn large amount of profitability by deciding to start and run business. Entrepreneurs are individual that take uncertain risk so that they can earn large profit to live a better lifestyles than other people in society.There are some of the factors that influence person to start a business by satisfying needs and preference of wide range of customers. This report is analysis various drivers or factors that motivate an Duncan Bannatyne to become successful entrepreneur by taking various risk and responsibilities to enjoy profit of organisation. Various drivers that motivates entrepreneur to start business Many factors that promote an individual to become successful entrepreneur likes social, economic and psychological factors.Social factors include family background, financial condition, education level and support from relative and friends. Individual that have background ofbusiness family can easily run or start a business as while growing up it has saw its family member to run a business. On the other hand it is quite difficult for a person that have no such social support from his family and relative as person has to take risk to take first steps to start business an earn profit (Stephan and Pathak, 2016). Duncan Walker Bannatyne is a successful entrepreneur, author and philanthropist and since childhood Duncan was interested in business of health clubs, hotels, spa media and property, TV and property.Bannatyne was born on 2 February 1949 in Clydebank, Scotland and grow and develop with an ambition to start new business, earn large amount of profit by meeting needs and requirements of people that are living in the society. Such emotional feeling and mental thinking of entrepreneur has influenced him to find new and innovative methods to satisfied needs of customers in order to earn large amount of profitability (Drover and et.al., 2017). Bannatyne was also famous for business angel on BBC programme Dragon Den. The entrepreneur launches 7 books and among which 200000 copies were sold and names of some books were Smart with your money and smart with your time. Bannatyne was born in poor circumstance so such family background has driven it to become one of the successful businessmen in UK. His mother could not affordable bicycle for it so he decided to join a job of distribution of newspaper thus from they point of time Bannatyne never looked again and work hard to achieve great success in life. Then the entrepreneur joined navy in 1964 at age of 15 and worked their for seven year but due to threatening an offices to throw off 3
boat has lead to dishonourable discharge. Bannatyne finally decided to start a business of ice cream van by purchasing van at £450 but eventually sold business for £28000 and founded new idea to start business of home care products.Therefore, psychological factors such intelligence and creative of Bannatyne has resulted give him ideas to launch new and innovative business to meet needs and demand of different individual. Bannatyne also sold quality home care at £26 million then planned to start new business of children nursery chain by investing amount of £ 22million. Creative ideas and continuous expansion help Bannatyne to expand and develop its market share and profitability. The entrepreneur has decided to expand its health clubs with bannatyne’s chain, by establishing bars, hotels and largest independent chain of health club in United Kingdom (Hong, 2020). Poor family conditions has encouraged and motivate Bannatyne to bear high risk and make invest in various business in order to earn large amount of profitability.It can be stated that various factors that drive Bannatyne to become one of the successful entrepreneur in UK are social, psychological and economic condition of entrepreneur. Various theories can also be used to identify different factors that affect Bannatyne to run an enterprise and meet needs and wants of customers. An entrepreneur is person that decided to run an enterprise by bearing several associated risk in order to earn large amount of profitability. Therefore different theories that explain factors that drive an individual to become entrepreneur are as follows: Economic Theory:It stated that entrepreneur are motivated and influenced to work hard when there is wide variety of growth opportunities within environment.They find opportunities to expand their business in case of effective availabilities of fund, resource and infrastructure to invest in particular field. Bannatyne has born and grown up in poor financial background that motivates him to work hard so that it can fulfil its dream and live better live then other peoples. It in order to earn profit has decided to make investment in various businesses so that best outcome can be resulted (Neck and Corbett, 2018). Despite of less availabilities of fund, resources he has decided to establish business that can meet needs and requirements of large number of people. Bannatyne has in age of 12 only started doing job of distributing newspaper to number of people such a financial condition forces him to think new and innovative solution so that better life can be lived. Bannatyne by doing job has saved certain amount of money which it has used to invest indifferentbusinessideassothatmaximumoutputcanbegained.Variouseconomic opportunitieshashelpedBannatynetoeasilyexpanditsbusinessoperationbymaking 4
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investment in different fields. Economic condition has driven him to work hard or invest maximum hours in creating business successful so that it can achieve its desired dreams. Therefore itcan be statedthat economicfactorsdrive an individualto become success entrepreneur by deciding to invest fund in new and innovative ideas. Such as Bannatyne has decided to invest in ice cream business, then home care and finally run one of the largest independent chains of health clubs and charity work to make life of people better and healthy (Lee, Hallak and Sardeshmukh, 2016). Entrepreneur as per economic condition formulated its strategies and plans to run different business so that it can take advantages of available opportunities. Since childhood Bannatyne has faced situation of poor financial condition so he has decided to earn maximum amount of profit so that each dream of it can be fulfilled. Therefore economic condition of individual is main driver that motivate it to work day and night in order to earn large amount of profitability for long period of time. It helps him to face various challenges and bear high risk and stay positive in various situation thus economic is main driver that influence behaviour of Bannatyne. Social theory:It state that various social factors such as social support of family, or education level of individual and characteristics, attitude, nature, skills and knowledge of individual drive him to become successful entrepreneur. Since Bannatyne has incredibly poor childhood and had faced lot of struggle while growing up as his parent could not afford things such as car or television. His family was last to buy television in the street so all such social condition and less support, various challenges has made Bannatyne a strong individual. Therefore Bannatyne want something different that can put him and its family out of poverty so he realised that hard work is one of the best option (Hornsby and et.al., 2018). Another social factor that drives Bannatyne is his dream since childhood to start a business of hotels, health clubs, media and television. Such determination, ambition has of entrepreneur since childhood has motivated him to work hard and faced different challenges of business in order to earn huge amount of profitability.After working at different job Bannatyne realised that If he want to fulfil its dream has to make extra and different effort as compared to other for qualitative results.Poor condition and less availability of support, resources influence Bannatyne to make huge investment in charity for better living of other people and establish health clubs for safety and security of individual. Entrepreneur has innovative and creative skills since childhood so it gave opportunity to Bannatyne to find new and creative ideas to run business effectively and earn maximum amount 5
of profitability. Social factors have influenced him to contribute in charity and good cause for children as he has faced lot of adversity and challenges since he was child. Therefore he decided to make effort to provide children a better live so that they does not have to struggle as Bannatyne has done in his personal life (Muñoz and Cohen, 2018). Passionate and determined to achieve specific goals and run a successful business has drive Bannatyne to start business of ice cream then home care and finally health clubs, hotels and restaurants. Therefore it can be stated that strong determination and will of Bannatyne has always motivated and influenced it to work hard for effective growth and success of enterprise in the industry. Psychological theory:Another factors that motivate Bannatyne to take various steps to start differentbusinessinordertoearnprofitmarginandbetterlifestylesthatotherpeople. Psychological are special characteristics and skills that are present in particular individual which helps it to become successful entrepreneur by incorporating risk. Such as quick decision ability of Bannatyne has helped him to find various available opportunities in the market and move from one business to another for search of one of the best suitable option for better life in future (Blaug and Towse, 2020). Quick decision making ability and intelligence of Bannatyne has also helped him to easily face various challenges and threat of business by finding appropriate solution to each of the specified problem. Effective time management ability of Bannatyne has provide another advantages to entrepreneur to make decision within limited timeso that company can gain competitive advantages and expand its market share across worldwide. Thus, it can be stated that effective time management, quick decision making helps him to become leading entrepreneur in UK. Bannatyne have wide range of knowledge and skill as he has worked at various job since childhood so such has provide opportunity to him to know and learn about different skill that are required to performed different task and abilities. Creative and strong determination of Bannatyne to start a business of hotels, clubs etc has influenced him to take various steps so thathis childhood dream can be fulfilled. It can also be stated that he has innovative skill as Bannatyne never stick to particular job or business, he was always in search of new best possible opportunities to satisfy its needs and wants. Therefore innovative skill within Bannatyne has helped him to discover new opportunities that are available in market and promote continuous expansion and growth of business (Wagner, 2017).Risk taking ability of Bannatyne has also drive him to become successful entrepreneur as he by taking various risk to start different business and investing its whole amount of saving of job in business has able to 6
gaincompetitiveadvantages.Atlastitcanbeillustratedthatstrongdeterminationand confidence of Bannatyne in himself and his innovative ideas has influence him to take risk to run and close different business operation in order to achieve growth and development in future circumstances (Acs and et.al.,2018). Therefore it can be stated that psychological factors all impact or drive an individual such as Bannatyne to take risk and initiative to start a business with full energy and determination to earn maximum amount of profitability. CONCLUSION From the above report it can be concluded that entrepreneurship is ability of individual to run and establish business in order to earn specific amount of profit margin. Entrepreneurs are buildthroughvariousexternalenvironmentalfactorssuchassocialbackground,culture, economic condition in which individual has grown up and psychological factors. Duncan Walker Bannatyne has also become successful entrepreneur in UK due to various motivational factors such as economic, social and psychological. Thus, it helps entrepreneur to run business smoothly by bearing associated risk to earn maximum amount of profitability. 7
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REFERENCES Journals and Books Acs, Z. and et.al.,2018, July. Entrepreneurship, institutional economics and economic growth: A systems perspective. InAcademy of Management Proceedings(Vol. 2018, No. 1, p. 12774). Briarcliff Manor, NY 10510: Academy of Management. Blaug, M. and Towse, R., 2020. Cultural entrepreneurship. InHandbook of Cultural Economics, Third Edition. Edward Elgar Publishing. Drover,Wandet.al.,2017.Neuro-Entrepreneurship.InAcademyofManagement Proceedings(Vol. 2017, No. 1, p. 13893). Briarcliff Manor, NY 10510: Academy of Management. Hong, J., 2020. The financing of alliance entrepreneurship.Journal of Business Venturing,35(1). Hornsby,J.S.andet.al.,2018.Entrepreneurshipeverywhere:Acrosscampus,across communities, and across borders.Journal of Small Business Management,56(1). pp.4- 10. Lee, C., Hallak, R. and Sardeshmukh, S.R., 2016. Innovation, entrepreneurship, and restaurant performance: A higher-order structural model.Tourism Management,53. pp.215-228. Muñoz, P. and Cohen, B., 2018. Sustainable entrepreneurship research: Taking stock and looking ahead.Business Strategy and the Environment,27(3). pp.300-322. Neck,H.M.andCorbett,A.C.,2018.Thescholarshipofteachingandlearning entrepreneurship.Entrepreneurship Education and Pedagogy,1(1). pp.8-41. Stephan, U. and Pathak, S., 2016. Beyond cultural values? Cultural leadership ideals and entrepreneurship.Journal of Business Venturing,31(5). pp.505-523. Wagner, M. ed., 2017.Entrepreneurship, innovation and sustainability. Routledge. 8