The Relevance of Entrepreneurship Theory in Today's Business

This essay critically evaluates the relevance of theoretical entrepreneurship models in the contemporary business context, marked by uncertainty and global dislocations like climate change. It contrasts traditional causation-based approaches with modern effectuation-based strategies, highlighting the shift towards proactive decision-making and customer engagement. The analysis includes examples such as 'Curry in Hurry' to illustrate the transition from economic inevitability to entrepreneurial contingency. The essay also explores the importance of strategic alliances, PESTEL analysis, and STP models in navigating the complexities of the modern market, emphasizing the need for innovation and adaptability to achieve sustainable growth and competitive advantage. The document is available on Desklib, a platform offering study tools for students.

Contemporary
management issue in the
21st century

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically measure the theoretical model of entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
such as climate change.................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals......................................................................................................................7

INTRODUCTION
The modern approach which seems to be used now a day in the businesses are termed as
Contemporary management (Dardot and Laval, 2019). The approach comprises of certain actions
such as planning, making decisions, overseeing and reviewing. With the help of planning,
optimum utilisation of resources could be made, the functions would be performed smoothly and
improvement along with innovation takes place within the products & services offered by
organisations. The stakeholders of the businesses are also provided with facilities to make them
feel satisfied. The employees are treated in such a manner that their satisfaction level could be
enhanced, with this the products are being produced as customer wants. This essay includes the
understanding entrepreneurship though theoretical model, in regard to contemporary business.
MAIN BODY
Critically measure the theoretical model of entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global
dislocations such as climate change.
Entrepreneur is the person who takes initiation in order to start business with it's new
business idea and the activities performed by them or the actions taken by them in order to
accomplish business operations is considered as entrepreneurship (Homer, Huggins and Durairaj,
2019). The entrepreneur is the one who takes proactive actions, in order to makes it's business
activities successful. They have to perform lot of actions so they analyse all the actions in
advance. This is how they are able to grab the attention of more number of customers. Earlier the
products where being manufactured what the company wants, this is because less number of
competition is available in the market. Now for a single product number of competitors are
available so this is how customers are getting lot of choices. The dispersion in the customer base
takes place due to huge competitions in market. This is why the concept of contemporary
businesses have being started. The reason behind this concept was to enhance customer
engagement, which is not possible by using traditional approach.
The modern theory of contemporary business focuses on Entrepreneurial Contingency,
which related to Effectuation (Popkova, 2019). The traditional approach was focused towards
Economic Inevitability, which was related with causation. As per the theory imposed by
Sarasvathy, causation is a reactive approach because, first the cause takes place then the action is

taken according to it, but effectuation is proactive approach, now a days organisations are
involved in taking necessary actions before the cause may takes place. This action is taken
though which the the problem which is going to arise in future could be managed on prior basis.
The entrepreneur is being involved in taking logical decisions which makes them proactive to
take decision and avoid the problem which is going to arise. The entrepreneur is being involved
in using different strategies which can make them more creative and innovative though which
they can acquire more customer base. The causation and effectuation is being explained with the
help of example, a person planned to open a new bakery store, for this they waited for the order
to come and after it they started making list of the products requires to prepared it and this is how
they continue the process. This whole process takes a plenty of time and cost, but they do not
have to perform any future planning. A lot of cost and time is being involved along with
customer have to wait for a longer duration of time in order to get product. This was the
traditional approach of business which is being termed as causation. Now take the same
situation, a person plans to open a new shop of bakery products and this time the owner has
already purchased the essential items required in order to make products. When they get the
order, they randomly stated producing product with the available resource they have, this saves
lot of time. With this, the owner had made bulk purchase of raw material for through which a lot
of cost is being saved. This is the modern business approach which is related to contemporary
businesses.
It have being evaluated that entrepreneurs uses causation when they are more
knowledgeable and in order to find more number of opportunities effectuation is being preferred
(Popkova, Ragulina and Bogoviz, 2019). Causation helps in determining the goals of the
organisation and steps taken by them in order to achieve the accomplished task. At the time of
using causation approach, the entrepreneurs requires more and more network in order to achieve
task. The entrepreneur has to think logically when they have to take major decisions upon certain
things such as regarding the use of latest and updated technology, regarding merger and
acquisition of business and other important decisions. By involving in continuous decision
making the risk bearing capabilities of an entrepreneur enhances.
The perfect example for causation and effectuation is a start up named as Curry in hurry,
this was the restaurant which was being established by using causation process (Wilson and
Bryant, 2021). The economic inevitability theory used by this restaurant soon transforms into

Entrepreneurial Contingency as suggested by Sarasvathy. With the introduction of technical
feasibility in the businesses, they soon make use of causation. In order to make success in the
businesses an entrepreneur have to make use of certain strategies, this is how they will be able to
retain in market for longer duration and get competitive advantages, which will help organisation
in generating more revenue. By using certain strategies the organisations can make themselves
protected form the internal as well as internal environment. As to make success and attain
objectives it is important to be aware about the changes that is taking place at micro as well as
macro level.
The organisations also works together in order to expand and increase it's revenue, the
best example which can be seen for strategic alliance was Noble & Barnes with Starbucks. Both
the organisations where equally benefited by doing strategic alliance. More number of customers
are obtained by this alliance as they are getting best facilities. If the organisations where on
Entrepreneurial Contingency then they might not do this alliance and continued to operate
individually even tough they are having loss.
The McDonald is involved in making non- veg burger when they were operating in U.S.,
but when they started operating in Asian countries with the help of it's research & development
team they have analysed that some countries of Asia do not consume no- vegetarian food. This is
how they become proactive and take decision of make vegetarian burger for those customers.
Thus they changes the strategies used by them at the time of operating in various counties. With
the help of PESTEL analysis organisations make the analysis of it's position in external market.
Now a days social media market is a contemporary business as this is they most cost effective
way of making promotion of it's goods and services. They make use of it to reach the large
customer base at a short duration of time among lot of customers. The organisation can easily
monitor that among how many customers their post have being reached, though this they make
demand forecasting which saves lot of cost of companies.
By making use of STP model, porter's generic model, Ansoff matrix and so on the current
position of business can be analysed, the position of competitors could be evaluated and most
important the organisation can make evaluation that which product they want to pitch to which
customer (Woldeab and Brothen, 2019). As number of variety of products are being available in
the market and each and every customer have different taste and preferences. This is why the
whole market is being segmented by organisations according to it's preferences. The customer

having similar kind of characteristics are dumbed into single group and similar kind of products
are produced.
The Unilever is operating in more than 190 countries with this huge number of products
are available in it's portfolio. With the use of STP model they have evaluated which product is
being required by each customer, as per it they had segmented them, then pitch the customer
whom they want to target and at last they have to position themselves in this competitive market.
With this they have to hire huge workforce which are having different mindset so the chances of
conflict is high. To avoid these unnecessary conflicts, in contemporary businesses certain
strategies are made. The entrepreneurs using modern approach make full use of modern
technology and innovation in it's products, which leads in rising the living standard of customers.
They make necessary changes to achieve it's goals smoothly they even make changes in it's
policies to provide better experience to it's employees. Overall development in the process make
the organisation grow along with making contribution in economic development.
CONCLUSION
From the above essay it can be concluded that by using contemporary management the
success rate of organisation enhances as they use modern approaches within it's business. The
essay is majorly focuses on two elements that is Causation and Effectuation. The effectuation is
the part of modern approach which states contemporary businesses, where as causation is
traditional approach.

REFERENCES
Books and Journals
Dardot, P. and Laval, C., 2019. Common: On revolution in the 21st century. Bloomsbury
Publishing.
Homer, N., Huggins, A. and Durairaj, V.D., 2019. Contemporary management of orbital blowout
fractures. Current opinion in otolaryngology & head and neck surgery, 27(4), pp.310-
316.
Popkova, E.G., 2019. Preconditions of formation and development of industry 4.0 in the
conditions of knowledge economy. In Industry 4.0: Industrial Revolution of the 21st
Century (pp. 65-72). Springer, Cham.
Popkova, E.G., Ragulina, Y.V. and Bogoviz, A.V. eds., 2019. Industry 4.0: Industrial revolution
of the 21st century (Vol. 169, p. 249). New York: Springer.
Wilson, G.A. and Bryant, R.L., 2021. Environmental management: new directions for the
twenty-first century. Routledge.
Woldeab, D. and Brothen, T., 2019. 21st century assessment: Online proctoring, test anxiety, and
student performance. International Journal of E-Learning & Distance Education, 34(1),
pp.1-10.