University Report: Entrepreneurship Theories and Practices Analysis

This report provides a critical analysis of entrepreneurship, evaluating theories and practices with a focus on both positive and negative aspects. It defines entrepreneurship, exploring the proverb "You can’t make an omelette without breaking eggs," and examines the traits and attributes of entrepreneurs. The report includes case studies of Bill Gates and Joanne Rowling, highlighting their paths to success and the challenges they faced. It delves into theoretical backgrounds, including psychological, sociological, and integrated models, providing a comprehensive understanding of entrepreneurial development. The analysis also considers the potential downsides of entrepreneurs' behaviors, linking them to their achievements. The report concludes by reinforcing the idea that success often comes with struggles and failures.

Running head: ENTREPRENEURSHIP THEORIES AND PRACTICES
ENTREPRENEURSHIP THEORIES AND PRACTICES
Name of the Student:
Name of the University;
Author note:

2ENTREPRENEURSHIP THEORIES AND PRACTICES
ABSTRACT
The current assignment focuses on the describing the term entrepreneurship and its major
attribute in creating an entrepreneur. The paper shows the success and failure path of an
entrepreneur, the two well-known entrepreneurs are taken as Bill Gates and Joanne Rowling. The
paper also demonstrates the concepts of entrepreneurship and the ideology nature of the
entrepreneurship. The paper at last concludes by justifying the statement that one cannot make
omelette without breaking the egg, that is without struggle and failure there is no success.

3ENTREPRENEURSHIP THEORIES AND PRACTICES
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Theoretical background of Entrepreneurship..............................................................................5
Bill-Gates- The story behind the Success....................................................................................8
Joanne Rowling: The Women who created fame and wealth with magic.................................11
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14

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Introduction
The current assignment focuses on providing the critical analysis of Entrepreneurship; the
paper evaluates and discusses the theories and formulation referring to both the positive and
negative aspects of entrepreneurship. The paper aims at describing entrepreneurship by a most
popular and powerful proverb “You can’t make an omelette without breaking eggs”. This
statement highly defines the struggle behind a successful entrepreneurship. This proverb states
that it is impossible to achieve something really big and important unless and until there is efforts
and struggle or some bad effects (Cantner Goethner and Silbereisen 2017.). The paper primarily
focuses on traits of entrepreneurs and entrepreneurial attributes; these are defined by taking two
evidences of famous entrepreneur with focusing on a particular question “Is the downside of
difficult behavior or shady business dealings an acceptable trade-off for the success and wealth
that entrepreneurs create?

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Discussion
Theoretical background of Entrepreneurship
Entrepreneurship is an important element in today’s economic growth and development.
Entrepreneurship has become a significant aspect, as it plays a big role in GDP per capita
development, employability of the country and evolvement of potential wealth in the nation.
There is increase of these factors as entrepreneurship attracts potential investors and investing
resources.
Entrepreneurship can be defined in many different prospects but all the definition derive
only one true meaning that is creating and developing something new which has never been
discovered or invented. A new business venture tries to find a gap in the existing market and
hence creating a need for the public. In the 21st century there are many new and old entrepreneurs
who created inevitable demand for the public, which is until now, are used and cherished by all
the customers. Moreover, according to Al-Dajani and Marlow in the year 2013, proposed that
entrepreneur is the not the one who only create big and famous companies but also the one who
create small ventures and start from initiating small business and develop them into bigger ones
(Cantner Goethner and Silbereisen 2017). According to Schumpeter “Entrepreneurship is based
on purposeful and systematic innovation. It included not only the independent businessmen but
also company directors and managers who actually carry out innovative functions”.
Entrepreneurship is widely accepted and an attractive approach for most of the people
who see dreams of creating something new and big and most of the them try to start their own
business as they find entrepreneurship achieves employment, freedom and opportunity to
maximize their wealth. The path of being an entrepreneur is not easy and requires extreme level

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of effort, persistent, involvement and needs patience to create something new and make it work.
Apart of those factors, it requires steadiness to ability to handle the risk associated with the new
business. Therefore, it is said that to achieve something great it is inevitable to avoid the risk or
mistakes and some sacrifices are ought to be made. According to Bessant and Tidd stated that
“failure is one of the important aspects of innovation as it provides insides of the mistakes and
helps to build capability and learn how to manage innovation (Eckhardt, Ciuchta. and Carpenter
2018). Therefore, great achievements come through progressive efforts and failures as well. In
order to understand in a broader view the conceptual base of entrepreneurship has been
demonstrated:
Entrepreneurial Development Model
The Psychological models:
David McClelland proposed in his theory that “the Achieving society” depicts that there is
needed to identify the determinants of the entrepreneurship. In the following model the author
describes that motivation is the primary factor which provokes the individuals to start something
new. Therefore, motivation is identified as the arousal for achievement need among the adults.
After identifying that the achievement orientation is the major key for the development of
entrepreneurship (Eckhardt, Ciuchta and Carpenter 2018.), McClelland proposed and suggested
that motivational training can make potential future entrepreneurs those who are seeking new
opportunities.
The Sociological Model:
Frank W. Young’s theory of entrepreneurship is the theory based on change it can be with
reference to society in corporation of reactive sub-groups According to the author, a group

7ENTREPRENEURSHIP THEORIES AND PRACTICES
becomes reactive when they face low status recognition, for economic development. According
to Young it is stated that “instead of looking at individuals, one must find clusters, ethnic
communities, and occupational groups as politically-oriented factions”.
The Integrated models:
The integrated models are well explained by T.V. Rao, Rao framed and suggested the following
factors:
Long-term involvement: It is like foreseeing future, by rethinking level or activity level while
carrying out the entrepreneurial activity.
Resource: Material resources, social and personal resources which is related to the success and
entry in the areas of entrepreneurial activity.
Social-Political System: This factor is perceived to be suitable for the development and
establishment of the enterprise or business.
The author states that all the factors are additional factors and is kind of secondary or optional
which can lead to the entry of entrepreneurship. This can also lead to acquisition of the available
resources.

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Figure1: A
model of Factors Influencing the Emergence of Entrepreneurship
(Source: Adapted by Abdul Aziz Mahmud “Developing effective Indigenous
Entrepreneurship” 1974)
Bill-Gates- The story behind the Success
It is very well said that “You cannot make omelette without breaking the eggs”. This
statement can be illustrated by giving an exaplme of a well-known personality Bill Gates, a
billionaire of the economic world. It will be very disrespectful to say that Bill Gates achieved

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success without any circumstances or failure. Before launching the Microsoft, Bill gates was a
drop-out student in Harvard University and was a co-owner of failed enterprise which was
named as Traf-O-Data which was driven by his high integrity passion for computer
programming. William Henry stated in the yaer 1955 about Bill Gates that Bill is American
business tycoon, an entrepreneur, investor, and philanthropist and most importantly he is valued
as a programmer (Parker 2018). In the start-up world, the term failure is viewed as the valuable
feedback an entrepreneur can get. Before starting Microsoft, which took Bill among the richest
person in the world, Bill and Paul Allen were co-owner of a business Traf-Data which dint turn
out well as expected and it was failed business. Traf-O-Data was invented for the purpose
processing paper tapes from the traffic counters. Four times when Bill Gates saw failures and lost
opportunity:
When Traf-O-Data was created and had to face failure and circumstances:
When Bill got the chance to create the world’s leading search engine but let Goggle do it, at
point his opportunity was lost.
When he underestimated the power of internet and let the other companies pass Microsoft online.
When the government filed a case on antitrust against Bill Gates.
Starting a new business is like taking a huge risk as well, and there is no end to what extent our
creativity can go wrong. It requires experience, trust and patience in order to face failures and
how one can turn the failures into feedbacks and ultimately to success. There are certain which
must be realized and asked in the journey of entrepreneurship:
“Are you someone who can learn from failure”?

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“Are you self-aware enough to acknowledge you own weakness and failure”?
“Do you take smart risk”?
“How do you view risk, failure and success”?
The entrepreneurship personality and attributes of Bill Gates can justify his success in the global
market and this can be demonstrated in the following ways:
Passion: Pursuing what he loves
A person cannot become a leading entrepreneur if that person lacks passion. Gates was
passionate and fascinated about computers and programming. In his younger stage he uses to
spend most of the time in learning program. He was not the model student of the class but ended
up pursuing what he loves and can do in his entire life. If one wants to work, work passionately
and do what you love. Being stuck in a company where one finds no interest ad hard to sustain
thinking about future. Therefore, passion is an important and primary factor which is required to
become an entrepreneur.
Looking Forward:
It is tough to start an enterprise without thinking of the future prospects and a leader
continues to look forward. Even after his failure with Tarf-O-Data, he did not lose his passion
and dedication towards his work and developed Microsoft. Even after developing Microsoft he
had to face many challenges throughout, the whole battle, Gates continued his strategy that
helped him to focus on his business and overcome his obstacles.
Constantly Evolving:

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Bills Gates is not someone who is satisfied all the success he has been achieving, he
always tries to involve more and more into his passion and tries to heed the lessons of failure. He
also suggests that “Your most unhappy customers are your greatest source of learning”. Gates
always aimed at making Microsoft the leading software in the market and not replaceable
software for the users. An entrepreneurship must be dynamic in nature and should be static.
Gates in considered as legend as he remained evolved to stay relevant. He was aware of the fact
that the market will remain dynamic in nature that is the needs and demand of the customer will
change continuously.
This are some of the attributes and entrepreneurship behavior perceived by Bill Gates
which makes him the most renowned and successful personality in the world. Bill Gates clearly
defines the statement of “You cannot make omelet without breaking the eggs”.
Yes, the downside of difficult behavior or shady business dealings an acceptable trade-off for the
success and wealth that entrepreneurs create as among the failures of Bill Gates it is observed
that his overconfidence had lead him to see failure and face huge loss. When Gates
underestimated the power of internet and let the other companies to pass Microsoft online.
Joanne Rowling: The Women who created fame and wealth with magic
The most popular novel and later series “Harry Potter” was created by Joanne Rowling.
Rowling created an immensely popular novel which is based on the character Harry Potter and
his two other friends. The journey of the author was tough and one can hardly imagine the
situation she was going through before the publication of the novel. The idea and a writer in her
emerged when she was about to travel from Manchester to London and due to her delayed train.

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Since, then Rowling became the UK’s best-selling living author and one of the wealthiest
women in the world. She must have ever thought that she would be this successful in life; she
was in financial crisis, broken within and was not happy with her life as she had pass from
various incidents from her mother’s death to being financially deprived. The concept of
entrepreneurship which can be referred here is based on the model of Frank W. Young’s theory,
“The Sociology Model”. J.K. Rowling innovations and ideas made her a successful
entrepreneur. The entrepreneurship attributes she perceived is motivation to do something, her
resilience and her primary soft skills which made her a good writer.