Entrepreneurship Analysis: Theories, Tesla, and Social Impact

This report provides a comprehensive analysis of entrepreneurship, beginning with a definition of the concept and an exploration of various theoretical models, including innovation theory, the need for achievement theory, and the social change theory. It then transitions into a detailed analysis of Tesla, focusing on the entrepreneurial characteristics of its founders, Martin Eberhard and Marc Tarpenning, highlighting their leadership styles, problem-solving abilities, and commitment to learning. The report also examines Tesla's social entrepreneurship initiatives and its ethical and social impacts on a global level, particularly its role in promoting sustainable energy and environmental awareness. The conclusion summarizes the key findings, emphasizing the importance of entrepreneurship in economic development and the positive influence of businesses like Tesla on society and the environment.

Entrepreneurship
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Entrepreneurship as a concept................................................................................................1
Theoretical Concepts and Models of Entrepreneurship.........................................................1
TASK 2............................................................................................................................................3
Analysis of TESLA business..................................................................................................3
Concepts and theories to uncover characteristics of Martin Eberhard and Marc Tarpenning3
Social Entrepreneurship TESLA by Martin Eberhard and Marc Tarpenning........................4
Ethical and social impacts of TESLA on the global level......................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship refers to the ability and willingness of an individual to organize, establish
and operate an entity while taking risks and handling uncertainty to generate profits. The
entrepreneurial activities are very important within an economy for its development and growth.
The following report consists of two parts which will be elaborating about entrepreneurship with
the help of analysis of an organization. The first part of the report will be demonstrating the
concept of entrepreneurship with the help of various theories, concepts and models of
entrepreneurship. The second part of the report will be demonstrating the analysis of Tesla,
which is an automotive company that was established in the year 2003 and is headquartered at
Texas, United States. Furthermore, it will be demonstrating the concepts and theories to uncover
the characteristics of the owner of Tesla. It will also discuss the entrepreneurship type that is
visible in the practice of Martin Eberhard and Marc Tarpenning and the ethical and social
impacts of Tesla on a global level.
TASK 1
Entrepreneurship as a concept
Entrepreneurship can be defined as the ability and willingness to create, plan, organize,
operate and establish a business entity and undertake risks and tackle uncertainties with the aim
of earning profits. In economics, entrepreneurship is explained as the use of land, labor, finance,
raw materials and capital by an individual to establish a profitable business by taking risks and
innovating for change. The main characteristics of entrepreneurship are identified as the ability
to take risks, innovation, vision and leadership quality, open mindedness, flexibility and the idea
of business (Audretsch and Moog, 2022). Entrepreneurship is important within an economy
because it helps to generate employment, innovation, social and community development,
increases welfare, enhances research and development activities.
Theoretical Concepts and Models of Entrepreneurship
It is a universal fact that entrepreneurship activities have a significant contribution towards
the economic development of a country (Claire, Lefebvre and Ronteau, 2020). The entrepreneurs
are the risk bearers and innovators who create opportunities for growth and development of the
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society and community. The existence of a systematic theory of entrepreneurship is just an
illusion because there isn't any systematic formulation regarding this by the economists.
However there are various theoretical assumptions of entrepreneurship that focuses on the nature
of entrepreneurship, the nature of opportunities and the nature of decision making framework,
which explains the following theories which are as follows:
 Innovation theory was formed by Schumpeter, who explains it as the ability of an
individual to combine the old ideas to create new innovations or formulate new ideas
from the present ones. In this theory Schumpeter focuses on the innovation to discover
new methods and new materials from the existing ones. According to this theory the
development requires basic changes and entrepreneurs are the people who make the
changes in the existing ideas to create new things.
 Theory of need for achievement was propounded by David McClelland who states that
the entrepreneur uses their human values and motives in order to seek and exploit
opportunities for getting favorable trade conditions. David McClelland states that
entrepreneurship means innovation and tackling uncertainties to create new things for the
sake of getting higher achievement and success.
 Theory of social change was developed by Max Weber who stated that the growth of
entrepreneurship depended on the ethics and values of the society. According to Max
Weber, entrepreneurship depends on the rational use of technology, finance or capital for
creating higher productivity that in turn provides maximum profits (Piñeiro-Chousa and
et. al., 2020). According to this theory, entrepreneurship is highly affected by the belief of
people, society, ethics and morals etc.
 Theory of social behavior was developed by Kunkel who stay that entrepreneurship is a
function of social political and economic structure that is concerned with the activities of
entrepreneurs and their connection with past and present environment, social, political
and physical conditions. According to Kunkel, entrepreneurship performs various
activities among which are expected by the society that achieves reward in favor while
others are not which achieves losses.
 Theory of leadership was framed by Hoselitz, who elaborate entrepreneurship as a
function of managerial skills and leadership. According to this theory the leadership skills
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are the most important for carrying out the entrepreneurship activities and the other
requirements are of secondary importance.
 Theory of systematic innovation: According to this theory which was developed by
Professor Ducker, entrepreneurship depends upon the systematic innovation and well-
structured analysis of the opportunities for growth (Ratten and Usmanij, 2021).
TASK 2
Analysis of TESLA business
TESLA is an American automotive company that was formed in the year 2003 and is
headquartered at Texas, United States. The company was initially founded by the engineers
Martin Eberhard and Marc Tarpenning in 2003 which was funded by Elon Musk who further
became the CEO of the company. Tesla is positioned as one of the most successful independent
automakers and a Pioneer in the electric car manufacturing industry. The automotive industry has
many challenges including huge investment, wide network and market coverage of existing
competitors, but the company has exceptionally expanded its business enterprise. Everyone
knows about Elon Musk but what do the people know about the masterminds’ behind TESLA.
Concepts and theories to uncover characteristics of Martin Eberhard and Marc Tarpenning
The leadership style determines the entrepreneur qualities and characteristics of an
individual. The leadership style is elaborated as a certain quality all style of an individual to lead
themselves and their teams. Martin Eberhard and Marc Tarpenning are a transactional leader
who changes with time by being flexible and developing new ideas to create effective results.
The entrepreneurial qualities and styles of Martin Eberhard and Marc Tarpenning are as follows:
 Motivation from failures: During the unfavorable conditions they have demonstrated
impeccable entrepreneurial qualities which also motivated his team towards the success.
The failures are considered as a part of entrepreneurial experience that must be accepted
and it should be used as a lesson to drive future success. Martin Eberhard and Marc
Tarpenning do not focus on negative results instead they try to enhance and improve the
business strategy and their working so that better results can be obtained.
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 Problem solving ability: As transformational leaders Martin Eberhard and Marc
Tarpenning focused on solving the greatest problem across the world that could help to
create a better future for everyone. Martin Eberhard and Marc Tarpenning have
understood and identified the critical challenges across the globe and have developed
strategies to create solutions for improving those conditions.
 Developing the learning abilities: An entrepreneur should have a keen desire for
knowledge and learning new things so that innovations can be made. Martin Eberhard
and Marc Tarpenning have elaborated their eagerness to understand and learn new things
in order to develop greater innovations for the betterment of the society, community as
well and the whole planet. Martin Eberhard and Marc Tarpenning are always involved in
learning new things and elaborating new ideas that could help and solve the problems in
the upcoming future. Due to the continuous learning, foresightedness of Martin Eberhard
and Marc Tarpenning has also increased which has improved their ability to get better
insight of the future problems and solve them easily.
 Aggressive about achieving the business goals: Martin Eberhard and Marc Tarpenning
leadership style of transformational leadership mainly aims towards creating a better
world for the future generations (Wood and Fisher, 2022). Martin Eberhard and Marc
Tarpenning are completely action oriented and are highly focused towards achievement
of their business goals instead of sitting around the philosophies he gets into the task and
execute them in order to check its viability and success.
Social Entrepreneurship TESLA by Martin Eberhard and Marc Tarpenning
Martin Eberhard and Marc Tarpenning are considered as a social entrepreneur who mainly
works towards resolving the social problems and challenges across the globe. Martin Eberhard
and Marc Tarpenning have shown that they are among the passionate people who want to create
a better society and culture for the upcoming generations by improving the health of the planet.
Martin Eberhard and Marc Tarpenning show their actual motive of becoming a successful
entrepreneur to enhance the world and make it a better place for living. TESLA has developed
many enterprises that were formed to create and enhance the lifestyle of people so that most
sustainable products and services can be developed for the betterment of society. Their idea
focuses on producing such products and services that could easily resolve the social needs and
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benefit the overall community across the globe. The main motive of the company is to produce
such products that can help to develop more products and services so that more and more
problems can be solved which makes TESLA a Social enterprise.
Ethical and social impacts of TESLA on the global level
The TESLA has produced a very high impact on the world towards the transition to
sustainable energy development and manufacturing such cars that could reduce the harmful
effects on the environment. The company has many ethical and moral impacts on the society,
culture and environment which are elaborated below:
 Movement towards sustainability: TESLA has created revolution for sustainable
development of vehicles due to which more and more companies are ditching the production
of fuel based cars and moving towards the manufacturing of electric vehicles that are
comparatively considered more sustainable than traditional vehicles (Zainea and e. al.,
2020).
 Awareness and necessity for better health of the environment: The Company has focused
on creating awareness and necessity for better health of the environment among the other car
manufacturing companies across the world. This has created urgency among the automobile
sector to transform them so that their negative impact on the environment can be reduced.
 Innovations: TESLA has been through many research and development processes through
which it was able to create many innovations constantly. Due to this the organization has
created such innovations that could benefit the society on a large scale and provide the other
organizations with the insight to improve their practices for developing a sustainable world.
CONCLUSION
From the above report it has been concluded that entrepreneurship is very important within
an economy for its development and growth. It has been understood that entrepreneurship is the
ability and willingness to create, plan, organise, operate, establish a business entity and tackle
uncertainties with the aim of earning profits. Moreover, the theoretical concepts of
entrepreneurship such as innovation theory, theory of need for achievement, theory of social
change etc. has been elaborated in the report. There is an analysis of a business entity with the
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description of concepts and theories and characteristics of that business owner and their ideas.
Furthermore, the report has been providing the characteristics of an entrepreneur such as
motivation from failures, problem solving ability etc. In the end, the report has been explaining
the ethical and social impacts of the business such as increase in awareness about sustainability,
better health of the environment etc.
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REFERENCES
Books and Journals
Audretsch, D. B. and Moog, P., 2022. Democracy and entrepreneurship. Entrepreneurship
Theory and Practice, 46(2). pp.368-392.
Claire, C., Lefebvre, V. and Ronteau, S., 2020. Entrepreneurship as practice: systematic literature
review of a nascent field. Entrepreneurship & Regional Development, 32(3-4). pp.281-
312.
Piñeiro-Chousa, J. and et. al., 2020. Innovation, entrepreneurship and knowledge in the business
scientific field: Mapping the research front. Journal of Business Research, 115. pp.475-
485.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education, 19(1). p.100367.
Wood, M. and Fisher, G., 2022. EXPRESS: A Collective-Evolutionary Alternative for
Appraising Entrepreneurship Theory. Strategic Organization,=. p.14761270221089959.
Zainea, N.L. and e. al., 2020. Social entrepreneurship, a key driver to improve the quality of life:
The case of TOMS Company. Business Ethics and Leadership, 4(3). pp.65-72.
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