Entrepreneurship: Analysis of Snapchat's Business Model & Impact

This report provides a critical review of entrepreneurship as a concept, exploring its key elements such as innovation, organization, risk, and vision. It delves into the characteristics of an entrepreneur, using Evan Spiegel, the co-founder of Snapchat, as a case study. The analysis covers Spiegel's flexibility, versatility, focus, and creative thinking in developing Snapchat. The report concludes that Spiegel is a business entrepreneur who has significantly impacted the social media landscape. It also examines the ethical and social impacts of Snapchat, including its role in connecting users, promoting businesses, and its governance structure for user safety and environmental responsibility. The report highlights the importance of entrepreneurship in creating innovative ideas and new business startups, impacting society in various economic and social ways.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Critical review of entrepreneurship as a concept.........................................................................3
TASK 2............................................................................................................................................4
Draw on concepts and theories to consider the characteristics of the chosen business owner
and the emergence of his/her business idea.................................................................................4
Reach a conclusion about whether this person is an entrepreneur and, if so and determine the
type of entrepreneur they are (e.g. business, social, etc.)............................................................5
Comment on the ethical and social impacts of the selected venture on a global scale................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is a process that involves identifying opportunities and new business
ideas in order to start up new business venture. Entrepreneurs takes financial risk and business
innovations in order to attain business growth. In the context of Snapchat which is a messaging
application and service development company. It is initially developed as Snapchat Inc.,
featuring picture filters, videos and texting. The application is also focus do with delivering
person to person photo sharing and texting features in real time. Snapchat was founded by Evan
Spiegel, Bobby Murphy and leggy Brown founded in the year 2011. This report talks about
review of entrepreneurship as a concept, concept and theories to determine the characteristics of
the chosen business owner and the emergence of his business idea, type of entrepreneur the
business owners, ethical and social impacts of business venture (Alvarez and Barney, 2020).
TASK 1
Critical review of entrepreneurship as a concept
Entrepreneurship is a process that includes discovery, assessment and exploitation of
opportunities. In simple terms and entrepreneurship can be defined wherein a person who is
called as entrepreneur who comes up with new ideas and innovations, production process, new
strategies into the market environment that did not previously exist. Entrepreneurship is that
process that can be determined as identification of new opportunities and establishing of new
economic activity often via development of a new organisation. Entrepreneurship is a key
activity that also drives number of merits in the society by the way of driving business success
and economic values, further produces employment, mobility of resources and drives other
society and economic development in the society. There are four elements that of crucial in
entrepreneurship it involves innovation, organisation, risk and vision. An entrepreneur has to
manage all key elements for turning the business ideas into business success. Entrepreneurship is
coined around earning profit and other business motive by offering products and services to the
customers. An entrepreneur has to analyse the needs and wants of the society, manage
relationship with stakeholders and continue bringing innovations in the business till the business
accomplish success (Audretsch and Moog, 2020). Thus, it can be said that entrepreneurship is in

continuous process of bearing risk, organizing human and nonhuman resources, working on a
common vision in order to accomplish determined corporate objectives.
What is entrepreneurship?
(López, et al, 2016) As per numerous research on entrepreneurship over last decades it is been
identified that entrepreneurship is such a process that leads to economic and innovation process
which benefits both economy and the business. For some, entrepreneurship can be defined as a
process that involves starting up with a new business venture. But entrepreneurship is actually
defined as a process of identifying, exploring and exploitation of opportunities in order to
develop new products and services, organising, market, process, and raw materials by aligning
efforts that previously did not exist. Where in entrepreneurship is that innovative person who
looks for such business opportunities that will drive the business to accomplish profit goals.
Thus, entrepreneurship involves three-dimensional which are an entrepreneur, a business
organisation and external environment that impacts business performance and decision making.
The new field of research on entrepreneurship focuses over four different elements such as
individual trait of the entrepreneur, the behaviour, environment and identification and
exploitation of entrepreneurial opportunities.
(Bouquet, et al 2018) With the technological advancement in the past two decades, the traditional
approaches have pushed towards creative intelligence. Where the entrepreneurs and business
executives have enhanced their understanding of the innovation process driven by design
thinking and instructive algorithms.
TASK 2
Draw on concepts and theories to consider the characteristics of the chosen business owner and
the emergence of his/her business idea.
Evan Spiegel who is a co-founder and the CEO of Snapchat Inc., was born in Los
Angeles, California in the year 1990. Evan Spiegel developed the famous social media
application which was initially named as Picaboo launched in the year 2011. Later in the year
2017 this social media application named as Snapchat. The application estimated approx. 20,000
users in 2012 but it became increasing in the late April and went up to 1, lakh. Snapchat is a

social media platform which was launched in the year 2011 by Evan Spiegel, Bobby Murphy
and Reggie Brown. This social media application gives users to drive real life experience and
connect to people personally and securely every day. Snapchat is that social media application
that allows users to click pictures, record videos, add text and drawings and connect to different
users.
The characteristics of Evan Segal can be drawn as per:
Flexible
Before Snapchat was launched into the marketplace there were different flexible decisions that
were taken into account. Initially Snapchat was launched in order to send image messages to the
users. Later, new and different features into the social media application to make the business
grow over time (Berger and et.al., 2021).
Versatile
Versatile is an important characteristic that determines that an individual must be capable of
handling different functions and activities. Snapchat was started a small business by the co-
founder and CEO of Snapchat, Evan Spiegel who was a college student. He balanced his
personal, professional and academic life in a way well trying to develop his own entrepreneurial
business.
Focused
The most important characteristics of an entrepreneur is that he or she must be focused without
any distractions for accomplishing the determined objectives. Evan Spiegel and Bobby Murphy
worked together for long hours in order to establish the social media application while managing
other academic and personal activities (Blundel and et.al., 2021).
Creative thinking
An entrepreneur must be creative and innovative thinking of new ideas and processes for
establishing new business. Evan Spiegel and Bobby Murphy worked together and created an
application as future freshman and digital footprint prior to establishing Snapchat. But due to

certain uncertainties they didn’t succeeded, after different thoughts and ideas Spiegel came up
with establishing Snapchat.
Reach a conclusion about whether this person is an entrepreneur and, if so and determine the
type of entrepreneur they are (e.g. business, social, etc.)
Yes, Evan Spiegel is an entrepreneur, he came up with an innovative idea of creating
social media application where in the users can connect to people irrespective of the location
personally and securely any time. The Snapchat also contain Geo filters that overlay pictures
with filters and designs, quotes, time, location. Snapchat was started as a start-up business and
soon it became to grow, today it has become a game changer in social media platforms. In
Snapchat home screen, there is an option where users can watch short video clips or a 10 second
photo of their friends, celebrities’ business, athletes Snapchat and others. Snapchat uses a
differentiated way of creating capacity allow and recognise serenpendity democratise innovation
that makes users excited about using the social media app. Even Spiegel is a business
entrepreneur. A business entrepreneur is an individual who creates and develops new
opportunities and business ideas in order to establish a new business by taking risk and owning
the profit by himself/herself. The business entrepreneur comes up with new innovations, and
business procedures for the primary purpose of acquiring profitability and business benefit.
Entrepreneur plays a vital role for economic and social changes in the economy, an entrepreneur
uses the best potentials and skills for bringing innovations in creativity to the market (Dana ed.,
2021).
Evan Spiegel established Snapchat Inc., which is a social media image messaging and
multimedia sharing application. The application first primarily launched for the sole purpose of
sharing pictures through private messages which are also called as snaps that can be viewed by
the user within a specific time period. Later, Evan Spiegel came up with different innovations in
the application of video message, picture filters and other features in the application (Fortunato
and Alter, 2015).
This start up business has boomed the competitive market environment where in The number of
daily uses of Snapchat in the year 2016 were recorded as one 58 million. In the year 2020,
Snapchat was recorded about 265,000,000 of users per day around the globe.

Comment on the ethical and social impacts of the selected venture on a global scale.
Snapchat has impacted the society in different ways such as for connecting users in real
time, given a new way of engaging on social media platforms by picture filters, videos, texting.
Snapchat have also helped many businesses in order to promote its brand via social media
platform which reaches out to large number of customers through video ads. Other societal
influence of Snapchat can be seen as strengthening relationships where people are able to keep in
touch with each other irrespective of the location. It is new and entertaining way especially for
youngsters, helping to connect large number of users with more information. The ethical impact
of Snapchat can be seen as managing the business more responsibly and ethically, managing tax
strategies for keeping the business responsible as a part of community. Snapchat also creates a
proper governance structure in order to create long-term shareholder value and transparent
decision-making process. The business adds principles to ensure that there is safety and privacy
for the users of the application. Apart from that, the business also takes measures to combat with
environmental concerns and taking measures to reduce carbon footprints from the business
activities. Measures for conserving natural resources and proper waste treatment (Olanrewaju
and et.al., 2020). Snapchat also prioritizes for creating equitable workplace to inspire innovation
and encourages wellness and a healthy safe environment.
CONCLUSION
Thus, in a nutshell, it can be concluded that entrepreneurship plays an important role for
creating new innovative ideas and opportunities for new business startups. Entrepreneurship
impacts society in different economic and social manner. The report reflected the characteristics
of business owner and emergence of the entrepreneurial ideas. The type of entrepreneur and how
the business venture impacts business ventures.

REFERENCES
Books and Journals
Alvarez, S. and Barney, J. B., 2020. Has the concept of opportunities been fruitful in the field of
entrepreneurship?. Academy of Management Perspectives. 34(3). pp.300-310.
Audretsch, D. B. and Moog, P., 2020. Democracy and entrepreneurship. Entrepreneurship
Theory and Practice, p.1042258720943307.
Berger, E. S. and et.al., 2021. Digital or not–The future of entrepreneurship and innovation:
Introduction to the special issue.
Blundel, R. and et.al., 2021. Exploring entrepreneurship. Sage.
Dana, L. P. ed., 2021. World encyclopedia of entrepreneurship. Edward Elgar Publishing.
Fortunato, M. W. and Alter, T., 2015. Community entrepreneurship development: an
introduction. Community Development. 46(5). pp.444-455.
Olanrewaju, A. S. T. and et.al., 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management. 50. pp.90-110.
Online References:
Online available
through;<https://www.researchgate.net/publication/318470458_At_the_Crossroads_Managemen
t_and_Business_History_in_Entrepreneurship_Research >
Online available through;<https://hbr.org/2018/11/bring-your-breakthrough-ideas-to-life >