Innovative Approach and Risk-Taking Ability

Discuss About The Commercial Entrepreneurship Across Nations.

In the current business scenario, one of the major trends being emerged is the concept of entrepreneurship. This refers to the initiation of innovative ideas in the existing business processes or existing business sector. In majority of the cases, concept of entrepreneurship depends entirely on the innovative idea and risk taking ability. There are different aspects and perspectives that can be considered in studying the further analysis of the concept of entrepreneurship. These aspects range from the influential factors to characteristics.

This essay will discuss about these different factors for consideration in studying the concept of entrepreneurship. In doing so, different set of information such as peer reviewed articles and news articles will be used in order to identify the diverse factors and their importance in entrepreneurship.

One of the major characteristics of entrepreneurship is promoting innovative idea. This is due to the reason that the concept of the entrepreneurship is majorly depended on the innovative approach of the entrepreneurs. According to Estrin, Mickiewicz and Stephan (2013), the more effective will be the innovative approach of the entrepreneurs, the more will be the probability of having successful entrepreneurship. It is also being stated by the authors that entrepreneurs can only get succeed in the market and can effectively compete with the established players if they are having the access to the innovative and radical ideas. It is also being reported by different media that in the current time, availability of different opportunities and mediums further contributing in generating the innovative ideas from the probable entrepreneurs (www.forbes.com 2018).

Another major characteristic of entrepreneurs being identified is risk tolerance and risk taking ability. According to Hvide and Panos (2014), it is important for the entrepreneurs to have the risk taking ability. This is due to the reason that entrepreneurs are majorly had less expertise, resources and infrastructure for starting their business. Thus, according to the authors, entrepreneurs should have the risk taking ability in order to take more risks in doing business. This is being identified as one of the major characteristics by the authors. According to media reports, there are number of risks being taken by Steve Jobs that further helped him to build the brand of Apple (fortune.com 2018). One of the major risks taken by Steve Jobs is not following the existing business approach and trend and going by his own way. It is also reported that bearing the risks helped Steve Jobs to create own identify in the market distinctive from others.

Personality Traits of Successful Entrepreneurs

Apart from the above discussed characteristics of the entrepreneurs, there is another important factor also to be noted and considered. According to Leutner, Ahmetoglu, Akhtar and Chamorro-Premuzic (2014), personality is also an important factor for the entrepreneurs. This is due to the reason that number of personality related factors such as having the ability to take initiative and showing pro-activeness in driving the entrepreneurship are important to get succeed. This is due to the reason that according to the authors, if the particular entrepreneur is having the ability to initiate then chances of losing opportunities will get reduced. In addition, it is also being stated by the authors that the personality of the entrepreneur should also have the problem solving skills. This is due to the reason that entrepreneurships depends on the ideas by the entrepreneurs. Thus it is the core responsibility for them to initiate new ideas and conceive the effective solutions for the probable issues.

It is also reported that the in the current time, one of the major and most prominent examples of entrepreneur with having favorable personality traits is Jeff Bezos, founder of Amazon.com. It is reported that there are number of personality traits such as having ambition and being adventurous helped Jeff Bezos to get succeed in the market (Hodges 2018). This is due to the reason that the adventurous nature of Jeff Bezos enabled him to bear more risks in the market such as taking the less conventional path and implementing blue ocean strategy. In addition, it is also being reported that Jeff Bezos is having more inclination towards facts and analysis over emotional thinking. This personality trait of him enabled to drive his organization more practically.

Thus, from the above example of Jeff Bezos, it can be concluded that personality is one of the most important characteristics to be considered by the entrepreneurs in having effective process of entrepreneurship. In addition, it can also be concluded that personality of the entrepreneurs also determines the extent to which the business will be driven effectively and efficiently.

There are number of external environmental factors that determine the effectiveness of entrepreneurship. One of the major factors is the political factor. This refers to the government efficiency and political stability in a particular country. It is being stated by Dutta, Sobel and Roy (2013), that political risk is one of the major influential factors for the entrepreneurs. This is due to the fact that if the particular home country of the entrepreneur is having more political instability then it will become difficult for them to promote their ideas. For instance, it is reported by the New York Times that socio-political environment of the United States helped Steve Jobs to get the required support for promoting his ideas. It is also being reported that the external environment of the United States was more favorable for the business approach of Steve Jobs compared to some other countries (Lohr 2018).

External Environmental Factors

Another major environmental factor that determines the effectiveness of the entrepreneurship is the social and technological sector. This is due to the reason that according to Castano, Mendez and Galindo (2015), if the home country cannot have the required infrastructure for nurturing innovative ideas along with not having favorable social acceptability towards the concept of entrepreneurship, then it will be difficult for the entrepreneurs to promote their idea. For instance, if Steve Jobs did not had the required facilities in the United States for building his computers and electronic gadgets in his earlier time, then maybe it would have difficult for him to develop his business as it is now in the current time.

According to Felicio, Goncalves and da Conceicao Goncalves (2013), apart from the external factors, there are also some internal factors that are having impact on the effectiveness of entrepreneurship. The authors have stated that internal factors such as family and community are having influence on the business approach of the entrepreneurs. For instance, entrepreneurs from the western countries will have more inclination towards having economical products in the market. On the other hand, the entrepreneurs from the developing countries and the eastern regions will have the preference for social empowerment. According to the authors, this is mainly due to the influence of the family and community on the entrepreneurs. In addition, governmental factors also determines the effectiveness of entrepreneurship due to the fact that entrepreneurs from China will have more socialistic approach while entrepreneurs from the western economies such as the United States will have more capitalistic approach.

Conclusion

Thus, it can be concluded that entrepreneurs are having different factors and aspects for considerations in order to get succeed in the market. This essay critically analyzed the different factors with the help of different views and real world examples. This report also concludes that the concept of entrepreneurs can get influenced both from internal and external factors along with determining the effectiveness of the entire process.

Reference

Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2015. The effect of social, cultural, and economic factors on entrepreneurship. Journal of Business Research, 68(7), pp.1496-1500.

Dutta, N., S. Sobel, R. and Roy, S., 2013. Entrepreneurship and political risk. Journal of Entrepreneurship and Public Policy, 2(2), pp.130-143.

Estrin, S., Mickiewicz, T. and Stephan, U., 2013. Entrepreneurship, social capital, and institutions: Social and commercial entrepreneurship across nations. Entrepreneurship theory and practice, 37(3), pp.479-504.

Felício, J.A., Gonçalves, H.M. and da Conceição Gonçalves, V., 2013. Social value and organizational performance in non-profit social organizations: Social entrepreneurship, leadership, and socioeconomic context effects. Journal of Business Research, 66(10), pp.2139-2146.

Hodges, C. (2018). The Top Personality Traits of the World’s Richest Man, Jeff Bezos. [online] Gogig.com. Available at: https://www.gogig.com/blog/top-personality-traits-of-the-worlds-richest-man-jeff-bezos [Accessed 13 Jun. 2018].

https://fortune.com (2018). https://fortune.com. [online] Fortune. Available at: https://fortune.com/2016/10/18/steve-jobs-leaders-risk/ [Accessed 13 Jun. 2018].

Hvide, H.K. and Panos, G.A., 2014. Risk tolerance and entrepreneurship. Journal of Financial Economics, 111(1), pp.200-223.

Leutner, F., Ahmetoglu, G., Akhtar, R. and Chamorro-Premuzic, T., 2014. The relationship between the entrepreneurial personality and the Big Five personality traits. Personality and individual differences, 63, pp.58-63.

Lohr, S. (2018). Steve Jobs and the Rewards of Risk-Taking. [online] Nytimes.com. Available at: https://www.nytimes.com/2011/08/28/technology/steve-jobs-and-the-rewards-of-risk-taking.html [Accessed 13 Jun. 2018].

www.forbes.com (2018). [online] Forbes.com. Available at: https://www.forbes.com/sites/martinzwilling/2013/12/25/a-new-era-for-entrepreneurs-and-startups-has-begun/#6511f79e4bd1 [Accessed 13 Jun. 2018].