Individual Report: Entrepreneurship and Economic Impact Analysis

This report provides a comprehensive analysis of entrepreneurship and its significant role in fostering a robust economy. It delves into the journey of Mark Zuckerberg, the CEO of Facebook, as a case study, examining his pivotal decisions, ethical dilemmas, and legal disputes encountered during the company's evolution. The report investigates how Zuckerberg's leadership shaped Facebook's growth, highlighting the challenges and strategic choices that influenced its revenue and market position. It explores the impact of entrepreneurial ventures on employment, regional development, resource mobilization, and overall economic strength, offering insights into the complexities of building and managing a successful business in the modern digital landscape. The analysis also addresses the ethical and legal ramifications of business operations, providing a well-rounded perspective on the multifaceted nature of entrepreneurship.

Running head: ENTREPRENEURSHIP MANAGEMENT
ENTREPRENEURSHIP MANAGEMENT
Name of the Student
Name of the University
Author Note

1ENTREPRENEURSHIP MANAGEMENT
Executive Summary
The report is based on the analysis of entrepreneurship and the role that is played by the
entrepreneurs in improvement of the economy of the country. The entrepreneur who has been
considered for the analysis is Mark Zuckerberg, the CEO of Facebook. The journey of Mark
Zuckerberg in the course of operations of Facebook is an important part of the analysis. The
issues which have been faced by CEO in the organizational operations has been analysed in
the report on detail. The difficult decisions which have been taken by the CEO for increasing
revenues of the organization has also been analysed in the report.

2ENTREPRENEURSHIP MANAGEMENT
Table of Contents
Introduction....................................................................................................................3
Role played by entrepreneurship in developing a strong economy...............................3
Critical analysis of the entrepreneur..............................................................................5
Difficult decision taken..............................................................................................6
Ethical challenge that has been encountered..............................................................7
Legal dispute that has been faced...............................................................................8
Conclusion......................................................................................................................9
References....................................................................................................................10

3ENTREPRENEURSHIP MANAGEMENT
Introduction
Entrepreneurship can be defined as a process based on designing, starting and running
the operations of a new business organization. The owners of the newly developed business
organizations are termed as entrepreneurs. Entrepreneurship can further be defined as the
willingness and capacity which is related to the development and proper management of a
new business venture. The risks that are related to the proper development of a new business
in any industry are quite high (Acs et al. 2018). This is able to affect the ways by which the
organizations are able to operate and the levels of profitability that are earned as well. The
definitions related to entrepreneurship are mainly based on the profits that are earned by the
new organizations. A significant part of the start-up based business organizations have to stop
their operations due to the lack of appropriate funding (Burton, Sørensen and Dobrev 2016).
The report will be based on the analysis of the role that is played by entrepreneurship
in the development of the economy of a country in which the business operates. The
entrepreneur who has been considered for analysis is Mark Zuckerberg, the CEO of
Facebook. The journey which has been undertaken by Mark Zuckerberg in the ongoing
operations and success of Facebook is the most important part of the analysis that will be
made in the report (Horst and Murschetz 2019). The report will be able to throw light on the
ways by which the entrepreneur has been able to develop the organization and improve its
profitability levels in the industry as well.
Role played by entrepreneurship in developing a strong economy
According to Jing, Qinghua and Landström (2015), entrepreneurs are able to play a
major role in the economic development of a country. The process related entrepreneurship is
thereby considered to be an important part of the ways by which the strength of economy can

4ENTREPRENEURSHIP MANAGEMENT
be increased within a short period of time. The important factors which are considered to be
an important part of the development of economy of a country are as follows,
 Employment based opportunities – The labour who are employed by the
entrepreneurs are responsible for managing different activities related to
business operations. The entrepreneurs provide huge number of opportunities
to a large group of people and are able to reduce the issues that faced due to
unemployment. This is a major role which is played by entrepreneurs in order
to improve the economic strength (Kellermanns et al. 2016).
 Balance in the regional development – The development of different regions
is promoted by the government. This process of is termed as decentralised
development of the industries which further enables the grant of incentives in
the rural and the backward areas. The entrepreneurs are able to avail benefits
with the help of establishment of the industries in different areas. The
entrepreneurs are thereby able to reduce the levels of disparities and
implement regional development which is balanced in nature as well (Kuratko
2016).
 Mobilization of the local resources – Entrepreneurs are able to utilize and
mobilize the local resources that include talents of the relatives and the small
savings. The entrepreneurs are thereby able to utilize the resources in an
effective manner (Landström and Harirchi 2018).
 Optimization of the capital – The main aim of entrepreneurs is to provide
effective levels of return to the investment which is made by them in the
industry. This is able to act as a force which stabilizes the entire method with
the help of high output based capital ratio and high employment based capital
ratio (López‐Fernández, Serrano‐Bedia and Pérez‐Pérez 2016).

5ENTREPRENEURSHIP MANAGEMENT
 Promotion of the exports – The entrepreneurs are able to reduce pressure on
balance of payments of the country by increasing the levels of exports and
earning foreign exchange.
 Demands of the consumers – A wide range of products are offered by the
entrepreneurs to the customers in order to fulfil their needs and demands. This
helps in reducing the shortage of the goods which are offered by organizations
(Marvel, Davis and Sproul 2016).
 Social advantage – The entrepreneurs can help in proper development of
society by offering employment to the people for the independent living. Self-
governance and democracy is encouraged by the entrepreneurs which is based
on the proper distribution of national income.
 Increasing per capita based income – The per capita based income of a
country is affected in a positive manner by the work process of entrepreneurs
(Müller 2016).
 Formation of capital – The development of capital is considered to be an
important factor that is able to affect the economic development of the
country.
The process of entrepreneurship is thereby considered to be highly effective for the
proper development of economy of the country. The levels of economic growth are thereby
increased with the help of opportunities which are offered by the entrepreneurs and new
organizations (Naranjo-Valencia et al. 2018).
Critical analysis of the entrepreneur
As discussed in Theguardian.com (2019), the mission statement that has been
developed by Mark Zuckerberg for the operations of Facebook is mainly based on the power

6ENTREPRENEURSHIP MANAGEMENT
which is provided to people which helps them to share and further to make the world more
connected and open in nature. The CEO of Facebook Mark Zuckerberg mainly grew up in
New York City and was a student of Phillips Exeter Academy in New Hampshire. Mark’s
mother is a psychiatrist and his father is a dentist. Mark also has three sisters who are a part
of the family. The computer programming was learnt by Mark Zuckerberg along with his
fellow programmer Adam D’Angelo.
As argued in Forbes.com (2019), they had also been able to catch the levels of
attention of major organizations like Microsoft and AOL. However, both of them had
rejected offers related to job. The undergraduate career of Zuckerberg was however not long
enough. A photo-rating based site was developed by Zuckerberg and was provided to the
Harvard students. The non-compliance with privacy based rules had proved to be a major
issue that was faced by the platform that was developed by Zuckerberg. Facebook was then
launched by Zuckerberg in the year 2004 along with the co-founders namely, Chris Hughes,
Eduardo Saverin, and Dustin Moskovitz.
As discussed by Rawhouser, Cummings and Newbert (2019), the platform had been
able to gain high levels of popularity in different universities within a short period of time.
The name of the organization was then permanently changed to Facebook in the year 2005
and the venture capital that was raised was raised was more than 12 million Dollars. The
success levels which have been gained by Zuckerberg are based on the ways by which the
organization is able to gain the levels of popularity. The CEO and the organization had
however faced major criticisms that are based on hacking the personal information of people
in order to develop the website in an effective manner.

7ENTREPRENEURSHIP MANAGEMENT
Difficult decision taken
According to Schwens et al. (2018), Mark Zuckerberg had to take a difficult decision
related to the operations of Facebook after two years of the commencement of the business in
the industry. The organization had just started growing at that point of time and had been able
to affect the levels of profitability and revenues in a huge manner. Yahoo had offered to
purchase Facebook for 1 Billion US Dollars. The management had made discussions with the
investors, however, the decisions were to be taken by Zuckerberg himself. The CEO had
however taken the decision to hold on to the organization instead of selling it to Yahoo.
According to, Terjesen, Hessels and Li (2016), the strategy or culture of the
organization was also not supportive of the motivation which was required to be provided to
the employees and other members of the organization as well. The main challenge which was
faced by the CEO in this situation was to convince the employees to trust the mission and
overall purpose of the organization. The CEO of the organization had to face huge levels of
challenges based on the ways by which the revenues had been affected at the start of its
growth stage.
However, the decision of the CEO was proven to be right and the organization had
gained a market capitalisation of 363 Billion US Dollars. The decisions which were taken by
the CEO were quite effective for increasing the revenue levels of the organization and its
long term based operations as well. Mark Zuckerberg thereby had to take many tough
decisions in the course of operations of Facebook in the industry which had later been
effective for the revenues of the organization (Schwens et al. 2018).
Ethical challenge that has been encountered
According to Terjesen, Hessels and Li (2016), Facebook had faced a major ethical
challenge in its operations in the year 2016. The major accusations against the CEO were that

8ENTREPRENEURSHIP MANAGEMENT
the website had been manipulated during the US presidential elections that had taken place in
the year 2016. The CEO had however stated that the notion which had been developed by the
media and other concerned people was a “crazy idea”. Mark Zuckerberg had also stated that
the organization aims at providing people an effective platform in order to give them a voice
and bring people closer. He also stated that the organization has immense levels of respect for
the democracy and levels of integrity which is present in the political system. The levels of
transparency which have been demanded by the Congressmen had led to many ethical issues
that have been faced by Facebook.
As discussed by Marvel, Davis and Sproul (2016), the company was forced to take
responsibility based on the advertisements that are placed on website that are related to
political activities. The business model that has been designed by Mark Zuckerberg has also
proved to be highly troublesome in nature and has affected the ethical responsibilities that
need to be fulfilled by the organization. The lack of transparency in operations of Facebook
can be attributed towards the business model which has been implemented by the
organization. The CEO has been able to play a key role in maintaining the organizational
position in spite of different issues.
Legal dispute that has been faced
According to Horst and Murschetz (2019), Facebook had faced major legal disputes
related to the lawsuit that was launched by Divya Narendra who was a Harvard alumnus. The
organization had to make a legal settlement in which the CEO had to pay 65 million Dollars
in cash and shares of the organization worth 45 million Dollars. The settlement was reached
by the organization in the year 2008. The case was mainly based on wrong valuation of the
Facebook shares that are owned by different people.

9ENTREPRENEURSHIP MANAGEMENT
The law suits were them settled by the CEO of Facebook by providing effective
number of shares to people who claimed them. The lack of proper knowledge gained by the
partners of the organization based on the operations in technology based industry is
considered to be a major factor which has led to different legal issues that have been faced by
Facebook. The co-founders have thereby faced major issues that are based on the ways by
which different laws and regulations in the technology based industry needs to be followed
(Landström and Harirchi 2018). The management of the organization along with the CEO
has faced major levels of issues that are based on the regulations and policies that need to be
followed in business operations in the technology industry.
Conclusion
The report can be concluded by stating that Facebook has been able to develop its
position in the industry with the help of a huge customer base that has been earned in the
starting growth years. The CEO of the organization has proved to be a successful
entrepreneur and has provided his services to Facebook. Mark Zuckerberg has been able to
increase the levels of revenues and profitability that has been earned by Facebook. The CEO
has however faced some major challenges that are mainly related to the legal issues and
ethical challenges. Zuckerberg has been successful in facing the challenges that are posed
towards the organization and has maintained the strong position of Facebook in the industry.

10ENTREPRENEURSHIP MANAGEMENT
References
Acs, Z., Estrin, S., Mickiewicz, T.M. and Szerb, L., 2018, July. Entrepreneurship,
Institutional Economics and Economic Growth: A Systems Perspective. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 12774). Briarcliff Manor, NY 10510:
Academy of Management.
Burton, M.D., Sørensen, J.B. and Dobrev, S.D., 2016. A careers perspective on
entrepreneurship. Entrepreneurship Theory and Practice, 40(2), pp.237-247.
Forbes.com 2019. Mark Zuckerberg's Net Worth Is Up $13 Billion Since Height Of Privacy
Scandal. [online] Forbes.com. Available at:
https://www.forbes.com/sites/noahkirsch/2018/05/12/mark-zuckerberg-net-worth-is-up-13-
billion-since-midst-of-privacy-scandal/#7113577d758a [Accessed 10 Jan. 2019].
Horst, S.O. and Murschetz, P.C., 2019. Strategic Media Entrepreneurship: Theory
development and problematization. Journal of Media Management and Entrepreneurship
(JMME), 1(1), pp.1-26.
Jing, S., Qinghua, Z. and Landström, H., 2015. Entrepreneurship research in three regions-the
USA, Europe and China. International Entrepreneurship and Management Journal, 11(4),
pp.861-890.
Kellermanns, F., Walter, J., Crook, T.R., Kemmerer, B. and Narayanan, V., 2016. The
resource‐based view in entrepreneurship: A content‐analytical comparison of researchers' and
entrepreneurs' views. Journal of Small Business Management, 54(1), pp.26-48.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.

11ENTREPRENEURSHIP MANAGEMENT
Landström, H. and Harirchi, G., 2018. The social structure of entrepreneurship as a scientific
field. Research Policy, 47(3), pp.650-662.
López‐Fernández, M.C., Serrano‐Bedia, A.M. and Pérez‐Pérez, M., 2016. Entrepreneurship
and family firm research: A bibliometric analysis of an emerging field. Journal of Small
Business Management, 54(2), pp.622-639.
Marvel, M.R., Davis, J.L. and Sproul, C.R., 2016. Human capital and entrepreneurship
research: A critical review and future directions. Entrepreneurship Theory and
Practice, 40(3), pp.599-626.
Müller, S., 2016. A progress review of entrepreneurship and regional development: What are
the remaining gaps?. European Planning Studies, 24(6), pp.1133-1158.
Naranjo-Valencia, J.C., Calderón-Hernández, G., Jiménez-Jiménez, D. and Sanz-Valle, R.,
2018. Entrepreneurship and Innovation: Evidence in Colombian SMEs. In Handbook of
Research on Intrapreneurship and Organizational Sustainability in SMEs (pp. 294-316). IGI
Global.
Rawhouser, H., Cummings, M. and Newbert, S.L., 2019. Social impact measurement:
Current approaches and future directions for social entrepreneurship
research. Entrepreneurship Theory and Practice, 43(1), pp.82-115.
Schwens, C., Zapkau, F.B., Bierwerth, M., Isidor, R., Knight, G. and Kabst, R., 2018.
International Entrepreneurship: A Meta–Analysis on the Internationalization and
Performance Relationship. Entrepreneurship Theory and Practice, 42(5), pp.734-768.
Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A
review and research agenda. Journal of Management, 42(1), pp.299-344.

12ENTREPRENEURSHIP MANAGEMENT
Theguardian.com 2019. Facebook legal battle: Why the two heads of the Winklevoss twins
weren't better than one. [online] the Guardian. Available at:
https://www.theguardian.com/technology/2011/jan/16/facebook-zuckerberg-winklevoss-
legal-battle [Accessed 10 Jan. 2019].