Entrepreneurial Motivation and Growth: A Comprehensive Analysis

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Entrepreneurship
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Q1 Definitions of entrepreneurship.................................................................................................3
Q2 Theories of entrepreneurship.....................................................................................................3
Q3 How innovation affect entrepreneurship?..................................................................................5
Q4Two historical perspectives affected or influenced by entrepreneurial characteristics since
Victoria’s type has not changed.......................................................................................................5
Q5 Characteristics of most entrepreneurs........................................................................................6
Q6 What influences entrepreneurship growth in a country?...........................................................6
Q7 Relationship between small business owners and entrepreneurship.........................................7
Q8 What are entrepreneurial management styles? Explain what are the cultures and structures
that facilitate entrepreneurship........................................................................................................8
Q9 Different approaches and parameters affecting entrepreneurship around the globe along with
explaining the factors. Explain the ways in which entrepreneurial business can move into
international business situations......................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Entrepreneurial motivation plays a critical role in understanding the psychological and the
process of entrepreneurial process (Dees, 2017). In other words, it can be said that the
entrepreneurial process can be driven by the several factors which further impacts their
motivation level as well as regulate the overall performance of people involved. The writing is
carried to define the perspectives and influencing factors that affect the motivation level of the
entrepreneurs. It studies present an overall evaluation of the present-day factors such as economy
and environment that further influence the same.
Q1 Definitions of entrepreneurship
Kuratko (2016) has defined entrepreneurship as a process of building the business along with
scaling up the profit and the net margins of the same. However, as per the critical evaluation
made by Burns (2016), social change, new or transforming lifestyle and consumer demand have
adversely hit the core of the businesses; which is why thriving for the best in the market is
essential to growing the business at the fullest.
However, the writing of Barringer (2015), depicts that any of the entrepreneur explanation
seldom mentions or discuss the massive impression they create on the world by influencing other
start-ups.
Q2 Theories of entrepreneurship
Entrepreneurs are said to be the pillars of any country's economy as they contribute to making
the business world or the corporate world strong by encompassing the powerful beliefs and
ideas. Moreover, there are several theories which have been devised by the researchers that
emphasize the entrepreneurial decisions as well as the aims and objectives of entrepreneurship.
Some of the theories which encompass the same are Schumpeter’s Theory of Innovation, Peter
Drucker’s View on Entrepreneurship, Kirzrier’s View on Entrepreneurship, Kunkel’s Theory,
The Uncertainty-Bearing Theory of Knight, and more (Kirzner, 2015).
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Figure 1: Theories of Entrepreneurship
The theory proposed by Schumpeter states the case of an entrepreneurial fastened economy
which is in immobile steadiness. In his theory, he states that entrepreneurs imbalances or hinders
the overall level of the economy by fostering or bringing innovation. Also, he further added that
the activities introduced by the businessperson or enterprises disturb the stationary motion of the
economy.
On the other hand, Peter Drucker presents contrary views in his theory of entrepreneurship by
saying that entrepreneurs are people who can be described as a unique or creative agent of
change (Drucker, 2014). It has been further identified in his theory that entrepreneurs make use
of all the opportunities available in the environment to respond to change and bringing further
economic benefits within a specific country. Drucker has also presented views on how
entrepreneurs can foster innovation in order to become a major asset or aspect within the
company’s economy. His concepts on entrepreneurship further explain that government and
society plays a major role in determining the success of any business or start-up.
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Q3 How innovation affect entrepreneurship?
It has been assessed by Zahra and George (2017) that innovations in entrepreneurship contributes
largely to the overall economic growth, reduction in the level of poverty, employment generation
as well as assist in the generation or impact of key social challenges. It is known that innovation
can be fostered by the implementation of various advanced technologies as well as digitalization
in order to grow and develop the overall business.
Various social media platforms are an example of innovation; Instagram, Facebook, Twitter and
more are some of the examples of tech or social businesses that have gained a lot of importance
in recent years. The irony is most of the small and big business owners use these platforms to
advertise their products and services in order to target a large pool of audience in a cost-effective
manner. However, innovative businesses further have a risk of getting their idea copied by other
business. For instance, Twitter has basically taken the idea of Facebook's status update and
shrunk it into the byte size or the limit of 140 characters. Moreover, the idea of Snapchat’s
stories was adopted by Instagram and further by Facebook which did not stay unique or
innovative for a longer period of time (Burns and Dewhurst, 2016).
It has been otherwise confronted that companies or businesses can every so often be so blinded
in their hunt of the succeeding inordinate innovation that they create a blunder out on the
understandable magnate, which is merely enduring to improve the prodigious invention they
previously have on the world or the marketplace.
Q4Two historical perspectives affected or influenced by entrepreneurial characteristics
since Victoria’s type has not changed.
There are some underlying factors or perspectives from past history which has influenced or
affected the overall entrepreneurial characteristics. Protestantism has favoured rational pursuits
that have gained wide economic gains and has given rise to moral and ethical entrepreneurship
(Hitt and Duane Ireland, 2017). Furthermore, considering the protestant scene, it can be said that
the precise association amongst Protestant groups and entrepreneurship throughout the early and
later phases of contemporary monetary development within the modern age or developed
countries such as the UK and US has fascinated much investigation.
There is a piece of evidence that over the previous three centuries, it has been identified that
some of the nation shave fully-fledged extremely rich and industrious while others continued to
stay relatively deprived. The reason behind the same is the availability of adequate resources and
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capital to educate the masses as well as the productive and expanding nature of the country and
its populace. Another is, where organization study on entrepreneurship over the past years has
been scarcely gathered in its experimentation, often illustration of comprehensive over
simplifications grounded. This is done on highly advanced expertise and technology start-up
businesses in rare places, historical identification and studies had pursued to recognise private
enterprise in an ampler wider variety of locations and, more prominently, to classify its part in
determining economic growth or expansion in a particular region or setting (Read et al., 2016).
Q5 Characteristics of most entrepreneurs
In order to start the new business, it is required by entrepreneurs to have distinct characteristics
that will result in attaining personal and professional success. One of the essential characteristics
of an entrepreneur is a passion that supports in attaining the working professional's success and
allows the individual to take the risk that results in enhancing the confidence level (Frese and
Gielnik, 2014).
Passion will help the entrepreneur to get motivated towards their dreams in the situation where
they feel discouraged, and thus, it will drive the entrepreneur to proceed forward that will further
result in accomplishing their goals and objectives. For example, Richard branson is the founder
of Virgin. He became a tycoon with his airlines professional because of his business interest and
increasing passion ranging from music to cola to space travel. Thus, passion is one of the
essential characteristics of an entrepreneur that support in taking risk factor and be successful in
the competitive industry (Kerr, et al. 2014).
It has been assessed that hard-working business owners are incredibly motivated towards
attaining success. With this characteristic entrepreneur is required to be dedicated to the plan and
keep towards moving forward even if in the situation of immediate paycheck. As per the view of
Mason and Brown (2014), with this characteristic will ensure that the entrepreneur directly
attained the annual targets of the company are achieved. However, as an entrepreneur with
motivational characteristic, it would support in running the business in a profitable manner so
that it efficiently and effectively succeed the businesses.
Q6 What influences entrepreneurship growth in a country?
Some of the factors which adversely and positively impact the entity or business setting are
discussed below:
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 Capital – Capital or financial resources are termed as one of the greatest or significant
features of manufacture for the formation of an initiative or a developed business further
depending on the size. The upsurge in assets speculation in feasible developments marks
an intensification in incomes which support in quickening the progression of the capital
establishment. Entrepreneurship motivational achieves a sort of enhancement with the
easy accessibility of assets for further investment. Therefore, capital investments are said
to be one of the most influencing factors, which can result in both an increase, and
decrease of the company's value.
 Labour–The quality instated quantity of employees is an additional aspect which impacts
as well as influences the development of business or entrepreneurship. Further most
fewer settled nations are employment rich countries owing to thick and flat cumulative
inhabitants. However, entrepreneurship can only be fortified if there is a movable and
approachable or efficient labour force available in the labour market (Cooper and Folta,
2017).
 Infrastructure – Highways and availability of transport is a major factor which impacts
the overall development of the business as it provides a road to reach a high number of
audience or customers. Therefore, it not only benefits to increase the size of the market
but enlarge the prospects of the overall business also.
 Attracting to places – This is also an influencing factor which further influences the
company or entrepreneurs in expanding to places which they find attractive or feasible
with respect to the availability of several resources. It further requires a lot of or
figurative market research for expanding or shifting the business to a new place (Cooper,
2017).
Q7 Relationship between small business owners and entrepreneurship
Small business owners are the one that takes the initiative to start a new business, and in turn, all
the operations are carried out by them on a very small basis. Further, in the case of
entrepreneurship, the idea behind conducting business is unique, and it allows in enhancing the
business position in the market. There is a direct relationship between small business owners and
entrepreneurship (Meyer, et al. 2017). , Small businesses with unique ideas can easily survive in
the market for a longer time, and this is the main reason due to which it becomes easy for them
to sustain in the market. The relationship between the two can be understood in terms of the
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practices carried out by the small business owners where they prefer to search for new ideas that
are highly unique, and they are implemented in the business practices.
Generally, the attributes of small business owners such as creativity, innovation, self-discipline, a
clear sense of direction, decisive, etc. allow them to carry out the entrepreneurial activities in the
best possible manner, and it leads to favourable outcomes (Lipset, 2018). In the present scenario,
small businesses are the one that are carrying out entrepreneurial activities, and they have
invested a large number of resources so as to make their business practices successful. Mainly
small businesses focus on searching for the best ideas on the basis of which operations can be
carried out efficiently and in the case, if such idea is not at all feasible then in such case
entrepreneurial activities cannot be conducted smoothly in the market. Hence, with the help of
overall analysis, it can be stated that direct relationship is present in between the
entrepreneurship and small business owners.
Q8 What are entrepreneurial management styles? Explain what are the cultures and
structures that facilitate entrepreneurship.
Selecting the right management style is considered to be highly crucial in the entrepreneurship
business. Further, it depends on every entrepreneur like what kind of style the individual prefers
to adopt for conducting the overall practices (Dees, 2017). Democratic is one of the main and
most effective management styles that is mostly preferred by a large number of entrepreneurs.
Further, with the help of this style it becomes easy for the entrepreneur to participate individuals
in the business affairs and in turn, it brings favourable results. Democratic style contributes a lot
in obtaining views of the different officials, and their advice can be easily taken also.. Another
main management style is laissez-faire that is also adopted by the entrepreneurs. In accordance
with this management style employees are given full freedom, and they can easily work on their
own and along with this deadline can be easily set also.
Planning structure is also practiced by the entrepreneurial firms and through this strategic
planning is carried out efficiently and in the best possible manner.
On the other hand, entrepreneurial culture is somehow very different. Mainly open culture is
practiced within the organization whose key elements are adaptability, innovation, creativity,
commitment and emphasizing on the future. By utilizing all these elements, it becomes easy for
the entrepreneur to carry out all the activities in the proper manner. In case if the entrepreneurial
culture does not encourages innovation, creativity, etc. then in such case, it becomes quite
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difficult to carry out the key activities of the business and sometimes it leads to decline in the
level of the actual performance in the market (Burns, 2016).
Q9 Different approaches and parameters affecting entrepreneurship around the globe
along with explaining the factors. Explain the ways in which entrepreneurial business can
move into international business situations.
Different parameters or approaches are present that affect entrepreneurship, and in turn, the
entrepreneur has to consider these parameters to conduct the overall operations smoothly
especially in the global market. One of the main parameters is the availability of capital or funds
and in the case when a proper or adequate amount of capital is not at all present with
entrepreneur then in such case it becomes quite difficult to carry out the business activities.
Along with this, the parameters also involve political, legal, taxation, labor market, raw
materials, etc on the basis of which the entrepreneur has to carry out the business operations in
the market. Political factors are also present that needs to be focused upon. The six factors that
are associated with political are as follows:
 The political stability of the area or the nation
 Political support
 Tax rates in the market
 Tariffs
Above shown are the key three political factors that affect the practice of entrepreneurship.
Further, all these factors are considered by the entrepreneurs properly so that it may not act as a
hurdle in the performance of the business (Barringer, 2015). Along with this, social factors have
also influence on the business practice. Below are the six main factors:
 Customer preferences
 Market trends
 Family background
Moreover, some historical factors are also present that influence the business practices and they
are as follows:
 Death rate
 Trade restriction
 Liberal notions
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Hence, these are some of the key historical factors of entrepreneurship on the basis of which
business practices are carried out in the best possible manner. Moreover, culturally related
factors are also present that needs to be undertaken by the entrepreneurs, and they are as follows:
 Cultural pattern
 Religion
Customers
 Beliefs
 Attitude
In the case of every entrepreneur if cultural factors are not considered when it acts as a hurdle in
meeting with the requirement of the target market.
On the other hand, different effective ways are present through which entrepreneurs enter into
the international market. Further, one of the ways is choosing the strategic option where merger,
acquisition, setting up a new unit in the market, etc are adopted for conducting business in the
international market (Kerr et al., 2014). One of the main task is to decide well in advance like
which option is feasible and it is decided so that it can have a positive impact on the overall
performance.
Conclusion
From the entire study, it can be summarized that entrepreneurship is a process which is further
influenced by a number of factors which can be both external as well as internal. In addition to
the same, it has been identified that organizational decisions are based on the succinct factors
such as infrastructure, culture, market, labour and the overall society. The study further analysed
that there are certain historical perspectives present such as liberal notions, death rate, trade
restrictions in older European regions and more, which plays a major role in impacting the
overall nature and characteristics of entrepreneurs.
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References
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Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
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handbook of entrepreneurship, pp.348-367.
Cooper, A.C., 2017. Networks, alliances, and entrepreneurship. Strategic entrepreneurship:
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Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
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Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Kerr, W.R., Nanda, R. and Rhodes-Kropf, M., 2014. Entrepreneurship as
experimentation. Journal of Economic Perspectives, 28(3), pp.25-48.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Lipset, S.M., 2018. Values, education, and entrepreneurship. In Promise Of Development (pp.
39-75). Routledge.
Mason, C. and Brown, R., 2014. Entrepreneurial ecosystems and growth oriented
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Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Read, S., Sarasvathy, S., Dew, N. and Wiltbank, R., 2016. Effectual entrepreneurship.
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