Entrepreneurship: Traits, Skills, Theories, and Ventures Report

This report provides a comprehensive overview of entrepreneurship, delving into the crucial differences between traits and skills and their combined impact on establishing successful entrepreneurial ventures. It identifies key entrepreneurial traits, such as creativity, vision, and risk tolerance, and ess...Read More

Entrepreneurship
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Table of Contents
INTRODUCTION ...........................................................................................................................................3
Understanding of the difference between traits and skills and their role in establishing a successful
entrepreneurial ventures.........................................................................................................................3
Fundamental traits and skills of entrepreneur........................................................................................4
Entrepreneurship Theories......................................................................................................................5
CONCLUSION...............................................................................................................................................7
REFERENCES ................................................................................................................................................8
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INTRODUCTION
Entrepreneurship is defined as the procedure of designing or launching a new business
venture by using new or innovative ideas through which a plan can be developed. An
entrepreneur is a person who undertakes risk of initiating a new venture for the major purpose of
making profit and proving ease to people (Burns, 2016)
Entrepreneurship is associated with risk and rewards, the entrepreneurs are having various traits
in their personality which makes them differentiated form others and provide them a reason to
grow. There are various factors which need to be consider while planning to start a business.
Faiza J of Slync has given the knowledge about various situations and points to be consider
before starting business.
Understanding of the difference between traits and skills and their role in establishing a
successful entrepreneurial ventures
Traits
Creation of idea: Entrepreneurs are having traits of creativeness through which they
propound varied ideas which are emerging and capable to attract people as well. This trait of
entrepreneurs provides them a reason to get success and enhance their career opportunities as
well. One should simple don't belief on the idea, should focus on its implementation that is
consider various distribution channels, traffic multiplier and many more.
Mission, Vision and value : Entrepreneurs always keeps long term vision due to which
they have sense to identify challenges in very prompt manner. This trait of entrepreneurs
provides them more options to deal with challenges that may create barriers in their succession.
(Mitra, 2019). The clarity in the mission, vision and value helps in effective planning and
conduction of operations which drives effective results to the business.
Small start : The major personality trait of an entrepreneur is that they are risk taker, as
entrepreneur is associated with some new and emerging concept which is having high degree of
risk. So a successful entrepreneur is laced with the power to bear risk in appropriate manner. The
individual who want to start a business is taking risk where as they should start from small that is
first must complete the paper work, related legal documents, focus on budgets and must hire
correct employees.
Skills
Communication: Communication is the primal skill which is held by an entrepreneur.
Communication is the major aspect by which idea can be explained by entrepreneur to their
stakeholder in order to get investments and understand their employees as well. With the help of
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effective communication skills they can establish communication with their peers and related
parties through that they may get high assistance in their success.
Ability to learn and focus on opportunities: Entrepreneurs are having skill to learn new
things which can be used by them to develop their business skills and creativity as well. For
example Simon Cowell has experienced various aspects though he leant so May new things
which made him successful in his career. Entrepreneurs are having opportunity that they learn
from every up and down or failure which gives them understanding and insight to gain
knowledge (Murnieks and et. al., 2016). Moreover individuals should consider the opportunities
as the challenges in order to achieve desire results.
Leadership skills and focus on outcomes: Entrepreneurs are having leadership quality
due to which they can lead mass people and supervise their work in order to achieve decided
objectives. Entrepreneurs create an aura by which their subordinates support them without
keeping any doubt. This skill of entrepreneurs gives them power to acknowledge their efforts in
such a manner that they inhale success in lieu of those efforts. They should focus on the outcome
of the business practices so that if anything goes wrong they can improve or correct it with the
time.
Role in successful entrepreneurial venture
Successful entrepreneurial venture are results of hard work and dedication of
entrepreneurs. For attaining success entrepreneurs are facing prominent challenges and ways to
deal with the same so that resilience can be created to manage those barriers. Skills and traits of
entrepreneur’s plays significant role in developing successful entrepreneurial venture as these
skills and qualities lead entrepreneur to deal with all those challenges that may create barrier in
their path. With the help of creativity an entrepreneur can initiate their own distinct business by
their innovative idea. By keeping long term vision entrepreneurs can deal with challenges and
maintain clarity in goal attainment (Adomako and et. al., 2018). Risk taking is one of the most
essential qualities of entrepreneurs which enable them to tackle complexities in appropriate
manner. On the other hand communication skills are assisting entrepreneur to establish effective
interaction with various stakeholders so as to simplify procedures and to learn new things as
well. So this can be said that skills and personality trait of entrepreneurs are playing vital role in
setting up successful entrepreneurial venture.
Fundamental traits and skills of entrepreneur
Entrepreneurs are one who have different personality type and ability to do something
different of their own in order to stand out from other people (Smith, Bell and Watts, 2014). In
context of Simon Cowell the fundamental traits which he has are describe below-
 Motivation and growth mindset- Simon Cowell is one of the hard working individual
who has able to gain success in very young age. The motivation factor has helped in
gaining success in life as he has mindset to do something of his own which he has able to
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attain as he is self motivated. Hence motivation play important role in the life of people
which helps in achieving the target objective and goals in life. With the mindset of
achieving success or desire results one will definitely get it.
 Creativity- The person who is able to think out of box and develop idea which is new and
innovative then able to attract its potential customers and able to accomplish its set goals
and objective in life. In context of business and entrepreneurs it is one of the crucial
factor which helps in improving their company’s or business workflow and productivity.
 Vision- It is one of the essential factor which helps in developing the long term planning
and strategies which helps in achieving the desire results. In context of Simon Cowell he
has vision to build his career in the field of music which he has able to attain.
 Risk Tolerance- In order to become successful in the business the entrepreneur need to
take risk in its business operation in order to get success. In context of Simon Cowell he
has resigned from his well settled job in order to focus on his life goals and able to
accomplish them.
 Confidence- Without confidence or belief on self one is not able to get success in life as it
act as support in the life of entrepreneurs. In context of Simon Cowell he is so confident
in his life regarding the steps with is he taking and able to attain his desire goals and
objectives.
 Decision making- Having the option to settle on choices rapidly is a significant trademark
for business visionaries since it tends to be the distinction among progress and
disappointment. Business visionaries not just need to have great dynamic aptitudes, yet in
addition must have the ability to settle on those choices rapidly to try not to pass up on
chances. This requires rapidly thinking about current realities and afterward choosing. In
context of Simon Cowell he has the capability to take decision on his own in his business
operations and activities (Chell, 2013).
 Communication skills- The effective communication skills helps in driving better
outcomes as individual would be able to explain the facts and figures properly. The
effective communication lead to reduce the chances of conflicts and misunderstanding .
 Tracking Progress- One should focus on the business activities and operations as with
proper tracking, disciple, momentum and commitment helps in establishing better
working environment which lead to accomplishment of desire results.
 Failures- The one always consider the failure as the opportunity to learn new things and
to improve the weak areas so that they should not face any difficulty in future.
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Entrepreneurship Theories
There are various theories of entrepreneurship which helps the individuals in
understanding and learning the various factors which they may face in their professional journey.
Some theories are explained below-
Schumpeter’s theory of creative destruction- This theory was discover by Joseph Schumpeter in
year 1942 which describes the various steps and knowledge in the process of development of
innovation (Tülüce and Yurtkur, 2015). It is a long term process which helps in the
manufacturing process in order to enhance and increase the level of productivity in the business
operations. Moreover this theory focus on long standing arrangements and assumptions which
are consider in order to fully use all the resources and energy in order to develop the innovation.
It helps in reducing the level of competition in the marketplace as with innovative products and
strategies company or business can attract the large number of potential customers. Furthermore
this theory considers the economics as an organic and dynamic concept which can bring changes
in the business and its activity at any time so entrepreneurs need to be well prepared in advance
in order to deal with them. Proper adoption of this theory provide effective results that is success
in the business. This theory helps in determining the internal process and functioning of the
business in order to identify various business opportunities with the motive to earn profit. The
only disadvantage of this theory is that main focus is made on development of innovation due to
which other areas of business didn’t get due attention which may lead to certain difficulties. In
context of Simon Cowell, he has taken big risk in his life by resigning his job and starting its
own business. He has opened record label named as Fanfare Records with his fellow mate Lain
Burton. Later on he focus on expanding his business by adopting innovation in its work. He has
come up with various number of television reality shows such as X factor and many more. Hence
with help of innovation he has able to come up with something new in order to expand his
business.
Kirzner’s Theory of Alertness- This theory has been develop by British-American economist
named as Israel Kirzner where he has put a point that in order to balance the demand and supply
in the marketplace the entrepreneurs identify the various market imperfections and exploit them
for their benefit (Storr and John, 2015). Market imperfections take place due to various factors
that is asymmetry information and bounded rationally. Asymmetry information alludes to
situations where various partners have differing data about an undertaking. On the off chance
that one partner utilizes the data preferred position to benefit from the another, it is participating
in pioneering haggling. Bounded rationality alludes to the possibility that people are not
completely balanced. Neo-old style and Classical financial matters model the suspicions of
monetary man, and will in general disregard limited objectivity. According to this theory the
successful entrepreneurs are one who have the ability to face the ups and down in the
marketplace and able to tolerant the uncertainties in the business. The market conditions are not
same all the time its essential for entrepreneur to be prepare in advance with various strategies
and plans in order to deal with the undesirable and uncertain conditions. With the help of proper
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and effective market research in which the customer needs, desires and competitors strategies are
been identified in order to formulate better strategies and to identify the certain types of
opportunities. The individual who is planning to start a business spend his time on analyzing the
market trends and the needs, preferences and desires of the customers. As every business has one
motive to provide quality products and services to its potential customers in order to satisfy
them. He identify the growth opportunity in coming up with television shows with the motive to
entertain its customers and to attract them in order to increase its profits and to enhance its brand
value.
CONCLUSION
From the above study it has been concluded that entrepreneurship is not easy and simple
way in order to attain success. There are various factors which need to be considered by the
entrepreneur in order to achieve its desire objectives in life. The most important factors is to have
the mindset to do something big and different in order to establish its name as brand. The
individual with long term objective and self motivated able to achieve its desire results.
Moreover the innovative and creative skills helps in bring something new in the marketplace
which attract the customers and helps the individual to make its idea successful.
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REFERENCES
Books & Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction. Routledge.
Adomako and et. al., 2018. Entrepreneurial alertness and new venture performance: Facilitating roles of
networking capability. International Small Business Journal. 36(5). pp.453-472.
Murnieks and et. al., 2016. Drawn to the fire: The role of passion, tenacity and inspirational leadership in
angel investing. Journal of Business Venturing. 31(4). pp.468-484.
Smith, R., Bell, R. and Watts, H., 2014. Personality trait differences between traditional and
social entrepreneurs. Social Enterprise Journal.
Chell, E., 2013. Review of skill and the entrepreneurial process. International Journal of
Entrepreneurial Behavior & Research.
Tülüce, N.S. and Yurtkur, A.K., 2015. Term of strategic entrepreneurship and Schumpeter's
creative destruction theory. Procedia-Social and Behavioral Sciences, 207, pp.720-728.
Storr, V.H. and John, A., 2015. The determinants of entrepreneurial alertness and the
characteristics of successful entrepreneurs. In Culture and Economic Action. Edward
Elgar Publishing.
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