Entrepreneurship: Skills, Theories, and Economic Impact

This essay provides a comprehensive overview of entrepreneurship, delving into the core traits and skills essential for success in the field. It differentiates between the traits and skills of an entrepreneur, highlighting the importance of vision, passion, adaptability, and financial acumen. The essay also explores various entrepreneurial theories, including Schumpeter's theory of creative destruction and Kirzner's theory of alertness, and their practical applications. Furthermore, it examines the impact of entrepreneurship on the economy, emphasizing job creation, market standards, and economic growth. The assignment also addresses the challenges posed by events like the COVID-19 pandemic and how entrepreneurs can navigate such crises by leveraging their skills and adapting to changing market dynamics. The essay concludes by showcasing real-world examples of successful entrepreneurs and the theories they employ to drive innovation and achieve economic growth. Overall, the essay serves as a valuable resource for understanding the multifaceted nature of entrepreneurship and its crucial role in the modern economy.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Traits and Skills of an entrepreneur........................................................................................4
Theories of an entrepreneurship.............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9

INTRODUCTION
Entrepreneurship is the ability to bring the skills to develop, organise and run the
business efficiently and manage the uncertainties comes in running the business. The significant
example of an entrepreneurship is the starting of any business either small or large scale
business. In the term of economics, entrepreneurship somehow connected with land, labour,
capital and natural resources with the help of these factors an entrepreneur can gen rate the profit
to run the business (Wartiovaara, Lahti and Wincent, 2019). The main topics covered in
assignment are theoretical knowledge of entrepreneurship, differentiate in between traits and
skills of an entrepreneur, theories related to the entrepreneur traits & skills and importance of
entrepreneurship and entrepreneur with relation to economy.
MAIN BODY
The entrepreneur defines the person who manage the task of the day to day work in the
business and have an ability to start, administrate and succeed in the start-up venture along with
all the risk factors. An entrepreneur can be from a small business to a multinational company. In
short any one who can run the businesses with taking all the risk factors and earn the profit than
that person may called the Entrepreneur. There are four different types of entrepreneurship
according to the type of the organisation and it includes small businesses which are entrepreneurs
who open the new and small stores like grocery, travel agent, consultant, hairdresser etc. all are
comes under the small business. For them the profit earning desired is just to feed their families
and live a normal life. The next type is Scalable Start-up Businesses, they are the person who
start-up their business by thinking out of the box, they know that they have the ability to change
the world. Another type is Large Businesses, these companies include high profits and pre-
defined life cycle structure (Parker, 2018). These includes MNC's also, companies sustain their
growth and profit by offering new products and innovation in their products. And the last one is
Social Entrepreneurship, they have their focus is on manufacturing products and giving services
which solve the social need and main motive is making products for the societies not for the
profit earning.
The organisation have employees that are having skills and they will be starting a new
venture can involve the failure in the starting, so an entrepreneur must have the ability to take a
risk. They should be highly innovative and have the ability to generate the new ideas to earn the

profits. An entrepreneur must be the nature of flexible and open-minded according to the market
environment and the most important characteristics is that they must know about their products
which they serve to the customers and also be aware with the latest technologies trend which are
prevailing in the market (Lortie and Castogiovanni, 2015).
The businesses are rapidly changing due to innovation in technologies, customers
behaviour and a new issue appeared this year 2020, by the effects of Covid-19, entrepreneur
have been now going through with high competitive environment in comparison to large sectors
industries with financial and intellectual resources. In order to be successful and constant in the
post Covid-19 in the world, the most of the entrepreneurs must follow the traits and skills that
help them to become different from the world. Thousands of people start their venture and
business, some will successful widely, some are engaged in sustainability and some will fail.
Success of an entrepreneur is based on the vision, mission and ability of an entrepreneur.
Traits and Skills of an entrepreneur
Successful entrepreneur must have a clear vision about their business and they identify
the appropriate goal and purpose of the businesses. The entrepreneurs should be passionate about
their start-up it is all about full of dedication and hard work. An entrepreneur must have the
ability to accept the rejection and failure in the starting of the business (9 traits of successful
entrepreneurs you should develop, 2020). The advantage of the traits are that the entrepreneur
must be flexible and confident in the nature for the growing nature of the business. And the
disadvantage is they have to be a leader and high patience level as without that no one can
become a good entrepreneur. They must be prudent with the money arrangement in the business
and continuously track and managed their budget according to the need of the business. In last an
entrepreneur must be a resilience as no matter how successful a business is growing there are
some issues occur natural like Covid-19 and external factors like changes in policies and
customers preferences, so they just have to always put a setbacks as an growing opportunities to
grow and learn (Storey, 2016). All these traits help the entrepreneur to run the business smoothly
and manage the issues occur in the growing business pattern. In the recent biggest issue of
Covid-19, give a learning factor to all the entrepreneur that how they have to manage the
business during such a pandemic and give a growth to the business and economy as well.
I think that traits are the basic characteristics which shows that what are the qualities have
to be in an entrepreneur. A successful entrepreneur is the one who can see his succeed future and

growth of the business in the starting days. And he must be an open-minded person to accept the
all circumstances occur in ongoing business. He must be able to choose the right person for their
business who can help in the growth of their organisation. The entrepreneur should have a
leadership trait and he should be focusing on the needs of the employees. The customers are
important for the success of the organisation and the entrepreneur should give quality products.
Skills which are required to become a successful entrepreneur which actually help a
person to develop themselves as an entrepreneur and manage the growth in the business. From
the view point of Freelance Writer, entrepreneur needed many skills from financial planning to
selling in the market. Some skills should be learned in starting and some learned in time to time;
Most important skill is managing the money, if a person is able to manage their money according
to their business need. An entrepreneur must be stress relives for themselves and to other
members of the company also (Morris, 2015). They are also a good motivators to encourage the
employees to complete their work on time with effectively. They must know about their own
strength and weakness and work on the weakness, so that weakness doesn't impact their business.
The pros of the skills in an entrepreneur must hire the loyal and effective people in the business,
they must be able to trained and managed them according to the business need and market
demand. An entrepreneur must have the abilities to see changes happened in the market and new
trends comes in the responded to customers. No business have a straight path to the success, so
every person have the skills to deal with the every circumstances occur in the business life cycle.
An entrepreneur skills have cons that they have high stress level and management of the funding.
In the last the most amazing motivation is to see a major changes in the market where you work.
To start a business the best skill is required to see a success in future in the business ventures (5
Skills That Are the Foundation of Entrepreneurial Success, 2020). All these skills plays an
important role in motivating an entrepreneur to assigning the business task and designing the
responsibilities and power to the other member of the company. These skills and traits help the
business man to run the business on the basis of the three main factors land, labour and capital.
Because of Covid-19, many business affect a lot with the drastic losses, most of the
business just started up before lock down and they have to face major amount of financial loss.
Entrepreneur must use the above listed traits an skills to work properly and manage the losses
which occur due to Covid-19 (Kassean and et.al., 2015). To help in this there are various theories
are developed Schumpeter's theory of creative destruction and Kirzner's theory of alertness.

Theories of an entrepreneurship
These entrepreneurial theories is based on the three aspect of the venture or a business,
these three aspect on which every theory is made are: nature of the entrepreneur, nature of the
entrepreneurship and nature of the market where the business is going to be run. Theories
mainly divided in two aspects namely discovery and creative theory.
Schumpeter's theory of creative destruction is given by J.A. Schumpeter. According to
him an entrepreneur is basically an innovator who introduced the new business and new products
in the market (Castaño, Méndez, and Galindo, 2015). He used the capitalist economy which is in
stationary equilibrium. He believed that a successful entrepreneur disturb the flow of economy
by introducing the new and innovative products in the market. These innovation of an
entrepreneurs are responsible for the economy changes and development. Schumpeter believe
that innovation and invention is the two different things as, innovation leads to change in the old
production while invention means produce a new product in the market which was never
experienced by the customers, But there are some criticism which includes; he ignored the
function of the other team workers in the organisation, ignored the risk taker function for the
entrepreneur. Companies like Beatroots, Bluesky international and Custodian solutions are the
examples of the company who are mostly based on this theory and work with innovation
techniques in their businesses. In the period of Covid-19 all the companies are facing lots of
issue, so this will lead more problems for the entrepreneur. For example, Amazon used the
schumpeter theory as they need more innovation in their company to satisfying the need of the
customers.
Kirzner's theory of alertness is given by Israel Kirzner, a British economist. He said that
an entrepreneur balanced the demand and supply of the market by evaluating and detecting
them. He think that all the market imperfection comes from the market factors and a successful
entrepreneur is the one who analyses the market situation and work accordingly to that
(Matalamäki, 2017). This theory is criticised as because market research can clearly help in
recognizing the opportunities but it is known that these market research is based on the nature of
entrepreneurial. Companies like Unilever and Rio Tinto are the examples of which are using this
theory and there entrepreneur used the market analysis (Schwens and et.al., 2018). While Tesco
used the kirzner theory as they need the market based research which influence the demand and
supply of the company.

There are lots of entrepreneur who are become the role models for the new start-up
owners. Mark Zuckerberg, founder of Facebook, a big networking social media application. He
used the innovation techniques in references to the demand of the customers. Mark Zuckerberg is
much better entrepreneur in term of getting the high qualities for the customers and getting
success in such a young age, on the other hand Sir James Dyson used the entrepreneur skills and
theories like innovation and invention techniques as he introduces something new in the market
which is never being used by the companies. William Bill Gates, the founder of Microsoft, he
used both the theories by using innovation techniques in mobiles and other technologies he adopt
the market demand and supply. Sir James Dyson start the business with a vacuum cleaner and
now he run a MNC in all over the world. He use the Innovative theory.
Entrepreneur help in achieving the economic growth, contribute in national income.
Entrepreneurship create employment in the community, maintain a standard in the market as well
as for their customers. So all this shows that an entrepreneur and entrepreneurship have focus on
the important for the economy.
CONCLUSION
From the above essay it is concluded that an entrepreneur and their business help in
increasing the economy growth and improve the condition of the market. A business have a
major traits and skills which help the entrepreneur to grow their business in a smooth way and
help theme in solving the uncertain issues related to the economy like Covid-19. There are lots of
issues occur in the business but a successful entrepreneur who used full traits and skills can
resolve them easily. Various theories of entrepreneurship help the owners to run their business
effectively and achieving the desired targets.

REFERENCES
Books and Journals
Wartiovaara, M., Lahti, T. and Wincent, J., 2019. The role of inspiration in entrepreneurship:
Theory and the future research agenda. Journal of Business Research. 101. pp.548-554.
Parker, S.C., 2018. Entrepreneurship and economic theory. Oxford Review of Economic Policy.
34(4). pp.540-564.
Lortie, J. and Castogiovanni, G., 2015. The theory of planned behavior in entrepreneurship
research: what we know and future directions. International Entrepreneurship and
Management Journal. 11(4). pp.935-957.
Storey, D.J. ed., 2016. Entrepreneurship and New Firm: Theory and Policy. Routledge.
Morris, M.H., 2015. Entrepreneurship as experience. Wiley Encyclopedia of Management, pp.1-
6.
Kassean, H. and et.al., 2015. Entrepreneurship education: a need for reflection, real-world
experience and action. International Journal of Entrepreneurial Behavior & Research.
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2015. The effect of social, cultural, and
economic factors on entrepreneurship. Journal of Business Research. 68(7). pp.1496-
1500.
Matalamäki, M.J., 2017. Effectuation, an emerging theory of entrepreneurship–towards a mature
stage of the development. Journal of Small Business and Enterprise Development.
Schwens, C. and et.al., 2018. International entrepreneurship: a meta–analysis on the
internationalization and performance relationship. Entrepreneurship Theory and
Practice. 42(5). pp.734-768.
Online
5 Skills That Are the Foundation of Entrepreneurial Success. 2020. [Online]. Available
through:<https://www.entrepreneur.com/article/249137>.
9 traits of successful entrepreneurs you should develop. 2020. [Online]. Available through:
<https://www.monster.com/career-advice/article/entrepreneur-traits>.

APPENDIX
1. Schumpeter's theory of creative destruction
2. Kirzner's theory of alertness