Entrepreneurship Theory & Practice

Entrepreneurship Theory & Practice
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Contents
Introduction................................................................................................................................3
Body...........................................................................................................................................4
Part A - Can you make omelets without breaking eggs?...........................................................4
A) Entrepreneurship is said to have the following characteristics -.....................................4
B) Strengths and Weakness of an Entrepreneur...................................................................5
Part B - Make specific reference to the activities of two well-known entrepreneurs to help
illustrate......................................................................................................................................7
C) Elon Musk, SpaceX, and Tesla decisions while facing challenges.................................7
D) Howard Schultz and Starbucks challenges and decisions...............................................8
E) Relation...........................................................................................................................9
The Conclusion........................................................................................................................10
References................................................................................................................................11
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Introduction
Entrepreneurship is the process of setting up a business and taking the responsibilities of the
risks involved in the business venture. Entrepreneurship allows the invention, innovation, and
the creation of new products or services or even making the existing product or service better,
then serving it to the people. Anyone who has great thinking and has creative skills can
become an entrepreneur, given that they are able to provide value to others, making them
want to use an entrepreneur’s idea or invention to solve their daily problems (Business
Dictionary, 2019). The report includes analysis of the entrepreneurship regarding their
strengths, weakness, and challenges apart from the two selected entrepreneurs, whose
complete skills are examined.
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Body
Part A - Can you make omelets without breaking eggs?
It’s a well – known in the business organization that without pain, it’s difficult to achieve
anything. Basically, hard work is the key to success and it must for an entrepreneur. An
entrepreneur is a person who takes the responsibility and accountability of founding a
business venture and operating it.
A) Entrepreneurship is said to have the following characteristics -
 Economic Activity - There is no doubt that entrepreneurship is an economic activity
as it involves the exchange of goods and services for money. It also involves
production as well as full resource utilization (Jagwan, 2019).
 Innovation - As mentioned in the introduction, there is a requirement of innovation
and new ideas to constantly provide value to people. If an organisation does not
innovate, it can no longer remain in the marketplace (Glavas, Mathews, 2014).
 Vision and goals - An organisation is established to fulfill a purpose or vision that the
founder(s) of the organisation foresaw, due to which, they decided to take action to
start the company.
 Value creation - One of the most important aspects of entrepreneurship is that it is
based to create value for people. The more value is created, the better it is for the
organisation to stay and serve customers to their full potential (Shrikova, Osiyvskyy,
2016).
 Risk-taking - Entrepreneurship is about risk-taking every now and then. An
entrepreneur has to take credit risks, risks related to applying new and raw ideas and
concepts, financial risks, political risks, and many other types of risks (Smith,
Chimucheka, 2014). When starting a business, an entrepreneur might take funds from
various investors, which also adds to risk-taking because if the business fails,
someone else's finances will also be lost along with the business. Political risks are
those risks that might crop up due to political instability, war-like situations in a
country where an entrepreneur is running his business. The huge risk is present of
business shut down because of the turmoil going on in that country (Lehkonen,
Heimonen, 2015).
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