Exploring Entrepreneurial Opportunities in Dynamic Economies

Desklib provides past papers and solved assignments for students. This report explores entrepreneurship, innovation, and startup success.

1
Entrepreneurship, Entrepreneur and Innovation

2
Table of contents
Introduction......................................................................................................................................2
Theories and practices of entrepreneurship, entrepreneur and innovation......................................2
Entrepreneurial Opportunities in national, local and global economies..........................................3
Behavior and competencies of an entrepreneur...............................................................................4
The entrepreneur competencies a student must have in order to start a business............................5
Internal and external factors that affects the creation of an entrepreneurial culture........................6
Process of a startup business from conception to execution............................................................7
Impact impacting on the growth and sustainability on an idea in business for innovation.............9
Conclusion:....................................................................................................................................10

3
Introduction
As entrepreneurship and startup business plays a crucial role in economic development. In this
assignment, we are going to discuss on the theories and practices a business holds in view of
innovation, entrepreneur and entrepreneurship. Also, we will see how the entrepreneurial
ventures bring opportunities in local, national and global economy with its development as an
existing business or as a startup. With immergence of business, we will evaluate how the internal
and external factors can hinder the creation of a business. A detailed overview will be given on,
how a business does set itself from the conception of an idea till the period of execution (Singer
and Broersma, 2019).

4
Theories and practices of entrepreneurship, entrepreneur and innovation
The concept of entrepreneurship in the business world has a wide range of meanings. In the same
phrase, the entrepreneur is a person who is highly aptitude and is a leader to process the
characteristics, change in a business. Entrepreneur can be termed as a person who would want to
work for him/her is concluded to be as an entrepreneur. In a business concept, the entrepreneur is
a person who undertakes to start a business called as its own entrepreneurship venture. Well, also
for a successful running of an entrepreneurship an innovation is also required to imitate the
business with innovation. The entrepreneurship, entrepreneur and innovation theory and
practices goes hand in a hand, and all together they are combined to achieve a successful
business (Covin and Walves, 2019).
The Schumpeter’s view on entrepreneurship
The entrepreneurship theory was defined by the Joseph Schumpeter’s; he defined
entrepreneurship as placed on innovation by adding elements such as:
 production methods,
 New products,
 Exploring new markets
 Adding new forms of organization
A business can also be concluded when the innovation of the products comes into a dead. From
other view point, the function of an entrepreneur can be defined into various input factors that is
generated with the hope that the value can be exceeded with cost input factors, in return of
creation of wealth in a business.
Entrepreneur theory
The theory is emphasized on the abilities of an entrepreneur to organize, innovate and in risk
taking. Entrepreneurship is an essential element to have a stable economic growth, where as an
entrepreneur is a person by which a successful entrepreneurship cannot be a carried on. The

5
entrepreneur takes a keen observation on innovative startups to create a new industry or product
comes together in a market (Toms et al. 2019).
As, man organization depends on the survival of an entrepreneur skills and mindsets which is in
dealing uncertain and dynamic environments. An entrepreneur deals with risk by organizing it
and by implementing effective plans for development and for successful commercializing
opportunities.
Schumpeter’s Innovation Theory
Schumpeter invented the innovation theory, as he always believed that the entrepreneur’s can
gain earn profits through his business only by introducing the successful innovations.
In other words, the innovation theory main aim is to source the innovation and the profits a
business can get for a favorable performance. However, according to the Schumpeter, the
innovation refers to the new policies that an entrepreneur can take to increase its products
demand and the overall cost of its production.
The two categories of innovation
The 1st category of innovation includes elements that can be used to reduce the costs of
production by implementing new techniques of production, new moth, new innovative methods
to organize and new machinery in the industry.
The second category includes on the innovation of activities that can increase the demands of its
products. It can be done by, introducing of new quality goods, new commodity, new raw
material and new sources, emergence of new market and adding new variety or design (Malecki,
2018).
Entrepreneurial Opportunities in national, local and global economies
Different types of condition in society can create the entrepreneur opportunities for starts for to
bring on new innovation of services and goods front heir venture. Well, the opportunity

6
conditions in relevance of national, local or global economy comes from variety of sources.
Talking on a broad societal level, the changes in understanding and knowledge can be the major
forces that can bring opportunities for startups. In local economy, the changes in political view,
development of new technology, changes in aptitude, changes in norms and shifting of
demographics can give a rise to new opportunities and new preferences. These are some of the
major forces that are always open in local economies that can give a constant growth as well as
an opportunity of the new and existing entrepreneurs (Eesley and Miller, 2018).
Related to national economy, a certain change in demographic shifts and change in population
level can create opportunities. For examples, if half of the world’s population has started living
in the developed areas, then the quality of present service improvement presents a great
opportunity of the new and existing entrepreneurs.
The new or existing entrepreneurs must recognize the opportunities in their area sand even in the
economies to innovate and to propose a business that can be an attractive alternative of services
that a customer might be looking for. However, a solution is always the first step to look onto the
opportunities the economy has. An entrepreneur must always investigate the economic values
their business might old that can imitate their opportunities (Naranjo-Valencia et al. 2018).
An entrepreneur must also research well to understand the potential of their services and
products that provide the value to their customers that they might be willing to pay for.
In these ways, an entrepreneurial venture through startups or through the existing ventures
contributes as a whole to the economic growth as well as the standard of societies living by
providing the customers with services and goods.
As, we have seen startups and existing business are termed as the world’s engine in terms of
change and in business growth. The existing business and startups has not only contributed in the
national and local economy but, they have boosted the economy and investment worldwide. It is
estimated that in year 2013, around $50.5 billion was invested in startups around the world. The
expansion in global economies will be seen in sudden change of high employments, more job
opportunities and higher RIO in countries (Boone et al. 2019).
Behavior and competencies of an entrepreneur

7
An entrepreneur’s characteristics, behavior and personality include to be creative, innovation,
organized to be a successful entrepreneur, However the main characteristics of an entrepreneur’s
behavior is to be a simulator of change and to operate in the new combinations to search for the
new opportunities in the area. However, success of an entrepreneur cannot be counted as an idea
or jus by money. Nonetheless, an entrepreneur must have specific sets of its skills, personality,
behavior and characteristics that they can develop into a business to improve its chances of
success. Here are a few characteristics and behavior an entrepreneur must have to conduct a
business
Must be able to face uncertainties:
This is one of the major aspects of an entrepreneur that is to face uncertainties, in respect of
adding new commodity or in respect of their profits or high loses.
Bearer of risks
In a business an entrepreneur has to bear several types of risks that can be by- money, time and
efforts in the starting of the business. They risk can also come by in the depreciation of
operations in the business, fluctuation on sales and non-acceptance of customers of products and
prices. The entrepreneur must always have a mind set to bear the risks in the business
(Chowdhury, 2019).
Positive self thinking
This is one of the major characteristics or a personality a business entrepreneur must hold in
order to get himself and his organization in rate of success. The entrepreneur must be positive
even if his business is facing a high loss. He/she must have high hopes on achieving success in
any which way (Darnihamedani, 2018)
The entrepreneur competencies a student must have in order to start a business

8
The entrepreneurial competencies are said to be the skills which are necessary for an
entrepreneur to have, in terms of a student who are willing to start their own venture below are
some of the competencies which they must adapt to be a successful entrepreneur.
Firstly, a student must be highly adaptable to venture an idea into an enterprise. They should be
able to manage and organize their business competently. They should also know the aim on
which they are establishing their business (Hechavarria et al. 2019).
The behavior competencies:
The behavioural competencies are known to be the basic competencies that are required to have
by an entrepreneur to adapt with a successful business. A student can adapt to basic
competencies by practice and essential training. The basic competencies is needed to be required
by the students that is irrespective of the size, economic, location and social dimension they are
thinking to work on. The behavioral competencies include:
Delivering high quality performance
 Problem solving
 Risk taker
 Planning systematically
 Managing information’s
The above are some of the basic competencies an entrepreneur must have and also a student must
have to start their own venture. The importance of competencies will help to run the enterprise
competencies will also help to manage the enterprise and will also help to organize the enterprise
in a fruitful way (Eckhardt et al. 2018).
Internal and external factors that affects the creation of an entrepreneurial culture

9
Before, creation of an entrepreneurial culture is important for a business to fully understand their
marketplace and the factors that can impact on the development of their venture. The two factors
that are the external and internal factors are considered to the two important aspects that can
bring broth negative and positive impacts in an entrepreneurial culture or creation. Therefore,
below is a brief discussion on how the internal and external factors can affect a venture before its
launch (Link and Sarala, 2019).
Internal impacts
Human resources
The human element such as the staff and every other individual associated with a business
effects the internal environment of a company. The staff members are said to be the both
weakness and strength of a company that all depends on the level of their attitudes, practical
skills and their work ethics. If a business already has a set of motivated and skillful workers, then
it is sure that they will be the biggest asset of a business. Conversely, if the staffs are not well
trained and have negative work ethics then it will be a challenge of a company to fulfill their
objectives and services in the market (Huda et al. 2019).
Capital resources
Money is said to be one of the vital part of an enterprise to move further to it’s create its working
plan. No business can survive without enough capital resources. An inadequate capital resource
is considered to be one of the internal hindrances that many business creations have to face. Even
though, there are several ways an enterprise can get a stable budget plan is by getting in touch of
some resources such as from investment opportunities, annual income and funding.
Operational efficiency:
The way a business operation itself also affects the success in the market. Even if the business is
into the creation mode and has not been set up in a market then too it can eventually affect a
business. The operational efficiency includes the contributing factors that are as customers,
employees and products. Before an implementation of a business the entrepreneurs must evaluate
on how the consumers will react to the favourable circumstances. They must also evaluate the
improvements they might need on their operation to handle the problems which may occur.

10
External factors:
Economic situations:
The economic situations are one of the driving factors that can affect the creating of a venture
even if it’s the external element in a business. Some of the economic situations that contribute to
the factors are economic crises, fluctuation of interest rate that directly affects the consumption
power of customers and consequently affects the estimated sales of a business.
Laws
The rules from a local or national government also plays an integral role in creation g a venture.
There are many countries that prevent the development of certain types of business. Besides, a
business venture must first evaluate the dimension of their business according to the rules and
regulations of their local city.
Customer demands
A customer’s demand always keeps fluctuating as per the environment change. Customer’s
choice and demands are the major factor that can affect the creation of a business. For example,
if a customer wants something in present time they won’t need the same thing in future. The
creation of a business also holds on stake on the demands and preference of customers.
Process of a startup business from conception to execution
A startup venture is executed by a certain type of procedures and process that ensures the
business is developed properly. The stage of a startup process requires specific attention and
extreme detail to execute it into a success. The entrepreneurs follow the process from an idea that
adheres to stringent standards. To increase the chances of success, the entrepreneurs require
following of a proper preparation and development in all the stages (Frederick et al. 2018).
Creation
Creating a brainstorming idea is the first key. An entrepreneur must keep all the tracks of its
ideas that are being generated. The ideas will eventually be varied according to its potential. The

11
review and estimation of each idea should be determined for its appropriateness. An entrepreneur
must determine and analyze each of its idea that has the most value for future and that will
substantially help them to generate products.
Assessment
The process of assessment involves on the research where the information of an idea can be
analysed and collected through a market research. It is quite an essential element of the startups
to conduct a market research to analyse whether their idea is practically Viable or not. The
entrepreneur must also understand the target market by evaluating its willingness on pay,
demands and expectations on service. Crucial estimates of these aspects are important to move
on to the next stage of execution (Campbell, 2019).
Planning
The net process is to execute a chosen business plan. Within the plan, the entrepreneur must
carefully identify the business goals. Relevant information on the income statements, balance
sheet and cash flow must be evaluated. A well determined and studied business plan will help the
business to get into the right direction by increasing the chances of successful launch and long-
term survival in the market.
Development
In this stage, the concept and idea Is formulated into the concrete form. An entrepreneur can
develop a prototype of its services and products that has to be offered into the market. An
entrepreneur can also create an operation and manufacturing process of its plan that can be
launched on the market of a test.
Testing
This process includes a test to be made in the market to identify what the consumers think and
react on your product. Once the results come from the test, an entrepreneur can realize on what
prototype can the business be set on in the marketplace. The results will eventually inform
whether it the idea is valid to move forward in reality or not.
Launch

12
A successful launch typically determines whether the activities are properly executed and
planned, whether your documentation has been developed and weather you have the right
employees that are ready to support you throughout the process of business.
Impact impacting on the growth and sustainability on an idea in business for innovation
The successful implementation of an idea is quite important in a business as it helps to improve
the process by increasing their efficiency and the most importantly their profitability.
The marketplaces such as the regional, local, national or global are highly competitive these
days. The competition has increased in a level that has resulted to the wider access on the new
technologies and the increase of knowledge and trading in sharing the opportunities that being
offered.
This section of assignment will show how the innovation impacts the sustainability and the
growth of a business idea that outlines them differently from other organizations too. The study
will also give an outline to the creation of a business to evaluate the new ideas to give a support
to the business.
The business case of innovation
Innovation is a commercial application that exploits the area of successful exploitation of an
idea. Innovation can also mean by a single breakthrough by introducing to a new product or
service which can range in series of small or large changes. Well, innovation typically means to
induce something unique or new into a business that can be:
 Replacing or improving new business process to increase the productivity and efficiency
of a business to extend the range of its services and present products.
 Developing an improved product to meet the rapid challenge and preference of
customer’s needs and demand
 Adding a new value to the existing product to differential the business from the
competitors