Entrepreneurship and Venture Creation

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nEntrepreneurship and Venture Creation

nEntrepreneurs establish an innovative network or progress with an aim to acquire growth under unfavorable condition in the market. Entrepreneurship is the strategy of beginning a business or an organization. The entrepreneur establishes a business model and gains resources and human labor. In addition, he/she is capable of managing the organization in order to ensure that it succeeds (Peters, Frehse & Buhalis 2009, p.1). In this regard, an entrepreneur must possess proper traits that help in innovative and management of the businesses. Successful entrepreneurs have robust leadership qualities. Good leaders are able to make appropriate decisions at appropriate time. A leader is a person who desires to accomplish his/her mission regardless of the problems and risks he/she is likely to face. Moreover, leaders are able to think beyond the common goals of other people (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 4). Social entrepreneurs, for instance, are great leaders because they have good communication skills and capability to organize people towards a specific goal and in an inspired way. Entrepreneurs help their colleagues and juniors to perform effectively and work as a team. As a leader, an entrepreneur gains the respect and trust of his/her team by showing confidence and positive work qualities (Short, Moss & Lumpkin 2009, p.13). He also provides an environment that foster greater cooperation.

nAn entrepreneur has a highly motivated character. For example, intrapreneurs put efforts towards facilitating change in their actions by working tirelessly to come up with solutions of their work. Intrapreneurs are able to adapt well to the changing circumstances (Alpkan, Bulut, Gunday, Ulusoy & Kilic 2010, p.2). Additionally, they help their teams to transform by inspiring them towards new opportunities and goals. Most successful entrepreneurs are guided by complete vision or accomplishment rather than simple mistakes at hand or universal problems (Dacin, Dacin & Matear 2010). He/she is also compassionate concerning his/her ideas that guide towards the final goals.

nSuccessful entrepreneurs, for instance, lifestyle entrepreneurs, are able to take risks and have passed in various hurdles since they are not afraid of failure. However, they act in a calculative manner in order to make proper decisions in difficult moments. On the other hand, lifestyle entrepreneurs acknowledge that sometimes things do not work according to plans (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 8). Therefore, successful people are able to accept change, and usually their actions are based on the desire to improve their effectiveness as leaders.

nSocial entrepreneurs have character of serial innovators. In this regard, their actions are driven by constant desire to develop and enhance existing ideas. They are open to change and they normally base their transformation to promote efficiency as leaders (Peters, Frehse & Buhalis 2009, p.5). Ultimately, entrepreneurs business succeeds because they depend on improving services, products and process in order to accomplish their mission.

nAlso, rural entrepreneurs have a competitive spirit. They have a strong desire to win although they like new challenges. They understand that business is a competition between market players; hence, there is a need to win and increase the market shares (Dacin, Dacin & Matear 2010, p.6). They focus to transform their business in order to produce powerful brands that offer stiff competition in the market. Consequently, they are capable of making many profits that improve their position in the market.

nResourced-based theory concentrates on how people influence various sources of resources in order to initiate entrepreneurial operations. It is associated with intrapreneurs because they utilize resources in their respective places of work in order to invent on new products that increases the competitive advantage of the firm. Availability of capital helps to increase the chance of venturing into business but intrapreneurs often start with limited finances. In addition, resources such as social network, human labor and education, as well as social networks control the type of venture the entrepreneur may take (Alpkan, Bulut, Gunday, Ulusoy & Kilic 2010, p.7). Furthermore, leadership skills influence the kind of resources the intrapreneur might utilize.

nEntrepreneurship psychological theory concentrates on personal and emotional or mental factors that influence entrepreneurial performance (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 9). David McClelland suggests that entrepreneurs have a desire to succeed that guides their activities. Entrepreneurship psychological theory is associated with lifestyle entrepreneurs because they desire to leave their professional work in order to pursue their passion. Such people are guided by strong aspiration to accomplish their commitment. Locus of control theory by Rotter Julian argues that individuals with a good internal locus of control think that their activities can affect the rest of the world. He conducted a research, which confirmed that entrepreneurs have robust internal locus of control (Dacin, Dacin & Matear 2010, p.9). Social entrepreneurs form the classic examples of people who have a strong locus of control because they believe that their actions can solve problems in the society. This type of entrepreneurship is determined by creativity, optimism and resilience.

nEntrepreneurship occurs as a product of social contexts that help him/her to utilize the opportunities as sociological theory suggests. Sociological theory is linked to social entrepreneurs. They are guided by a need for an expressive life, social linkages, socio-political factors and cultural identification (Alpkan, Bulut, Gunday, Ulusoy & Kilic 2010, p.7). This theory explains that cultural forces, for instance, social approaches influence both social entrepreneurs behaviors and perception.

nOpportunity-based theory by Drucker Peter confirms the idea that entrepreneurs succeed after utilizing opportunities established by cultural, technological and social changes. At international level, lifestyle entrepreneurs exploit any international opportunities because of their creativity and imaginative combinations (Short, Moss & Lumpkin 2009, p.15). Entrepreneurs are able to deal with uncertainties due to globalization. In addition, rural entrepreneurs utilize the opportunities in the rural areas such as availability of raw materials and cheap labor to start small and medium enterprises.

nFurthermore, entrepreneurship has a strong integrity and ethics and appreciates the need of a strong peer network. Strong integrity and ethics are the foundations for a sustainable business entity. Entrepreneurs avoid criminal actions, which are likely to harm their business. Therefore, they strive to create a credible business that understands the importance of working with customers and stakeholders for the benefit of his business (Peters, Frehse & Buhalis 2009, p.8).

nIntrapreneurship is a form of behavior that involves acting as an entrepreneur when working with a big firm. Intrapreneur utilizes entrepreneurial features without suffering from risks related with those operations. In most case, intrapreneurs are workers in an organization who are allocated a particular project or idea. Moreover, intrapreneurs are supposed to establish the project as an entrepreneur would do (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 11). The intrapreneurs usually utilize the capabilities and resources of the company at their disposal. The main task of intrapreneur in an organization is to change that exceptional idea into a business venture that makes huge profits for the firm.

nIn the contemporary business competition, firms are in dire need of intrapreneurship. Intrapreneurs provide new and innovative ideas hence firms attempt to establish an environment where workers have freedom to employ ideas. In case the idea is providing huge profits, an individual is an intrapreneur. Intrapreneurship has played a crucial role in the market today (Dacin, Dacin & Matear 2010, p.9). For instance, it has enabled the production of new product innovation in majority of firms. An intrapreneur in Lockhead Martin Company established a variety of outstanding aircraft designs. In addition, intrapreneurs in Google Company created Google News, Gmail and AdSense while in 3M Company they established the Post-It Notes. These organizations reap the dividends of utilizing intrapreneurs from its employees. In this regard, when firms embrace the idea of permitting their workers to use entrepreneurial skills and maximize on new business ideas.

nIn case of Google, the company launched a free flowing program known as “20 percent program” where employees compete, initiate ideas, hackathons to their employers (Alpkan, Bulut, Gunday, Ulusoy & Kilic 2010, p.9). Intrapreneur requires a smart company that helps workers to stimulate business growth and permits them to acquire competitive edge in the market.

nMost managers in smart companies are willing to back their workers who have a strong desire to focus on new business opportunities within their firm (Peters, Frehse & Buhalis 2009, p.9). Moreover, research shows that 40 per cent of millennial workers have strong inspiration in engaging in intrapreneurship. Supervisors who assist their employees instead of restrain them ensures that they make effect in enhancing the entrepreneurial spirit of their juniors (Kuratko 2013, p. 89). However, when workers in the 21st century lack career opportunities in the firm, they quit from such firms. Therefore, intrapreneurship works to resolve problems of retention of workers (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 18). Therefore, many organizations have initiated programs to solve the rising case of retention in firms. Studies show that more than 36 percent of workforce in the United States quit from their current jobs because they lack career chances.

nMost firms such as LinkedIn promote their workers by motivating them to initiate a new idea every year. Moreover, the employees work as a team and deliver their proposal to the executive team. In case their proposal is accepted, they utilize their time up to three months dedicating their efforts towards changing their idea into something that can help the firm (Dacin, Dacin & Matear 2010, p.11). Similarly, at DreamWorks organization, they educate their workers on ways of developing new ideas, and allow them to practically perform it in front of their executive. Other firms such as Facebook innovated on the “Like Buttons” via hackathons. In this respect, they motivate their engineers to work together on projects involving its software. It forms the major innovations in the history of the company via utilization of hackathons program.

nTherefore, intrapreneurship is a crucial business practice that enhances dynamic change and growth for both employees and businesses (Peters, Frehse & Buhalis 2009, p.10). It helps employees to develop their leadership qualities while stimulating transformation. Intrapreneurship is a perfect answer to initiating sustainable competitive advantage for workers. By utilizing firms brand and internal resources, employees can make proper effect that helps to reap huge benefits.

nA lifestyle entrepreneur is an individual that establishes a firm or business aiming to change his/her individual lifestyle. In addition, lifestyle entrepreneur have no priority of making profits in the firm. Instead, they concentrate on life rewards offered to people that enjoy their services, and have desire for what they are performing (Peters, Frehse & Buhalis 2009, p.11). The choice of a business is solely determined by their passion for the kind of business they are doing. Therefore, there is limited possibility for the failure. Lifestyle entrepreneurs organize their business and work performance based on their goals (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 20). The personal targets include satisfying work, flexible hours, utilizing their time with friends and families, creative pursuits, hobbies and charity work.

nMost notably, in lifestyle entrepreneurship, it is important to make money because they are in business professionals. However, they are more concerned with making just enough money for them rather than making huge profits and wealth like in capitalist system (Antoncic & Antoncic 2011, p.8). They differ from business executives and founders, since they voluntary strike a balance in their work and their initiatives to develop a lifestyle business that offer them favorite performance while getting source of income. Richard Cantillon proposed the economic entrepreneurial theory in 1700s, which suggested that entrepreneurs are risk takers. This theory is linked to lifestyle entrepreneurs because they are risk takers and they take advantage of the economic opportunities such as tourism in order to pursue their vision and passion. In addition, their actions are not controlled by increasing profits but rather to acquire what is enough. However, economic entrepreneurial theory failed to recognize that vibrant, free nature of market perspective, and overlooked the special feature of entrepreneurs (Short, Moss & Lumpkin 2009, p.13). For instance, capital investors or business shareholders perform a lifestyle entrepreneur (Dacin, Dacin & Matear 2010, p.78). They take a back seat in their investment, while at the same time they continue having a good time in work they are assigned to do. For instance, some of the lifestyle entrepreneurs include, Pat Flynn. He has established “The Smart Passive Income.” His business activity involves creating varieties of online platforms such as video, podcasting and blogging.

nSimilarly, tourism industry forms part of lifestyle entrepreneurship. Majority of individuals now leave their jobs, and are motivated to join tourism and hospitality. They often have limited experience, expertise and training but they are often following their dreams or passion. They utilize their savings from their former careers and are guided by optimism that their new endeavors will succeed (Short, Moss & Lumpkin 2009, p.14). Additionally, they are motivated by the perceived quality of life and achieve their preferred lifestyle. Lifestyle entrepreneurs are crucial in tourism industry because they initiate change by identifying an opportunity for innovation, and the ability to change it into an actuality (Peters, Frehse & Buhalis 2009, p.14). They develop creative resourcing strategies by accessing resources for managerial functions from complicated sources. The desire to succeed inspires them to become creative in resourcing.

nThey are inspired to gain entrepreneurial skills via necessary reflection and exploration aiming to excel. Lifestyle entrepreneurs are always alert in order to identify opportunities. Therefore, they constantly concentrate on current affairs and trends in order to be realized and captured. Furthermore, most lifestyle entrepreneurs in tourism sectors are continuously creative and innovative (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 33). They renew services and products via value addition and imagination. Ultimately, they are capable of producing perfect opportunity by acting within minimum time in order to effectively optimize an opportunity.

nSocial entrepreneurship involves the process of innovating ideas in order to solve social problems. Therefore, social entrepreneurs are people with creative and ambitious traits that are able to provide solutions to majority of social problems (Antoncic & Antoncic 2011, p.10). These individuals are also persistent in tackling hard social issues and offering new perspective that promote change. Social entrepreneur do not leave the public problems to the government but rather they find the solution to the problems via changing the system, distributing the solution and influencing the whole community to move in a particular direction (Short, Moss & Lumpkin 2009, p.29). In this regard, social entrepreneurs are possessed with great ideas and commit their lives to change the direction of the society. In addition, they have visionary, realists traits, and are concerned on useful application of their vision.

nMoreover, they offer user-friendly, ethical and applicable ideas that provide widespread support aiming to utilize the number of citizens that will adopt and implement the idea. Successful social entrepreneurs recruit huge number of people who serve as local change makers (YOU CAN BECOME YOUR OWN BOSS!’ 2008, p. 29). Furthermore, the act as role models by ensuring that citizens who apply their ideas can make significant changes in their lives.

nSocial entrepreneurs act just like other entrepreneurs in business since they work as catalysts of change by utilizing opportunities and initiate new strategies. Moreover, they develop solutions that facilitate change in the society for the better (Kuratko 2013, p. 69). Social entrepreneurs initiate an idea and then apply it in a large scale creating huge impact in the society. This type of entrepreneurship is different from the traditional entrepreneurship although it shares some concepts. For instance, social entrepreneurship focuses on the idea of transforming the society (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 45). Therefore, they concentrate on changing the society instead of maximizing their profits – in case of typical entrepreneur.

nSome of the historical social enterprises include Susan Anthony in the United States who led Womens Right movements. The organization fought for the right of women to own property and right to vote. Additionally, in France, Jean Monnet helped in re-establishment of the French economy after the Second World War. She led the development of the European Coal and Steel Community (ECSC), which played a great role in the formation of European Union (EU). In United Kingdom, Florence Nightingale was a social entrepreneur who founded modern care nursing. She fought for rehabilitation of hospital condition in the U.K. and she built the first school of modern nurses. The modern social entrepreneurs especially in Asia include Muhammad Yunus (Dacin, Dacin & Matear 2010, p.16). He founded the Grameen Bank that initiated the microcredit finance for helping innovators in various part of the world for instance in Africa, Asia and Latin America.

nSocial entrepreneurs possess a variety of qualities, since it is a long-term and continuous process. In this regard, they have the ability to overcome incomprehension, habit and apathy as well as disbelief while facing community resistance. In addition, social entrepreneurs have the capability to organize political will and improve their ideas (Dacin, Dacin & Matear 2010, p.58). Besides, they are contented with uncertainty, and have a high sense of autonomy. Since social entrepreneurs operate in a social setting rather than in business context, they have minimal availability of capital and normal market support conditions. Therefore, they are skillful in resource and human mobilization, as well as political resourcing (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 67). Ultimately, they are strategic since they aim at taking opportunities and creating new approaches that establish social value. Most notably, social entrepreneurs are self-driven in their mission for social vision.

nAdditionally, they engage in social activism as they try to initiate change via indirect action by affecting other lives. For instance, they influence NGOs, governments, workers and consumers to take action. Social entrepreneurs may not create firms to advance the changes they need (Peters, Frehse & Buhalis 2009, p.13). Successful ones can accomplish improvements to existing systems that produce a new equilibrium.

nSocial entrepreneurship has become popular in societies, because it concentrates in community development. In addition, it may be divided in different categories such as community-based, social services and socially responsible enterprises. Community-based businesses are designed on social ventures of the whole society that applies its culture and capital to allow itself as a business (Dacin, Dacin & Matear 2010, p.19). On the other hand, socially responsible business aims to initiate sustainable development via their projects designed to offer community gains. Furthermore, social service enterprises experts work particularly in the social service field to promote social capitol for various organizations, individuals and society (Antoncic & Antoncic 2011, p.10). They also provide economic activities that balance profits, and social transformation for communities. Social entrepreneurship, in deed, is even dedicated to empowering social entrepreneurs linking mentors and strengthens the enterprises bonds (Peters, Frehse & Buhalis 2009, p.89). These concepts help social entrepreneurship to spread across the world. For instance, microcredit program is a form of social entrepreneurship that establishes microfinance.

nThis has played a crucial role across the globe in helping poor communities especially in rural areas to acquire small loans at lower interest rates compared to other financial institutions (Lee & Phan 2008, p.23). Secondly, social entrepreneurship programs such as Womens Empowerments helps to offer education, awareness of farming, business ideas, and vocational trainings particularly among poor women in rural areas. Through such programs in India, a farm owned by women was the second producer of bananas in south India by 2006 (Alpkan, Bulut, Gunday, Ulusoy & Kilic 2010, p.21). Profits generated from farming are applied in improving the living standards of women across the globe.

nMore than two thirds of the worlds population live in rural areas. However, the policies and resources are in favor of people living in urban centers. Consequently, there are economic disparities and developmental imbalances. Therefore, a successful poverty reduction strategy would address rural-urban disparities as well as gender inequities (Short, Moss & Lumpkin 2009, p.33). The majority of rural people are dependent on small-scale agriculture, nomadic pastoralism, fishery or rural wage labor. In addition, most of people in rural areas do not have diversified sources of income. There is also a lack of good transportation infrastructure since most of the areas are remote (Dacin, Dacin & Matear 2010, p.21).

nRural entrepreneurs are risk takers, since they are inspired to overcome any challenges that may occur, and utilize opportunities in rural areas. Most successful entrepreneurs in rural areas conduct business through rural small and medium enterprises (SMEs) since the size of local market is usually low as compared to urban centers (Figueroa-Armijos, Dabson & Johnson 2012, p.7). The businesses adapt to the peripheral rural locations by utilizing specialized market niche. In addition, rural entrepreneurs take advantage of lower number of competitors (Antoncic & Antoncic 2011, p.11). Moreover, there is availability of cheap labor. Some of the rural firms are able to enter into foreign market. Rural entrepreneurs depend on internal relationships that promote the flow of services, goods, ideas and information. The family networks in rural areas are in most cases helpful for businesses. They also make outstanding efforts to reach to the urban centers in order to increase the economies of scale (Peters, Frehse & Buhalis 2009, p.89). Since there are many raw materials in the rural areas, entrepreneurs ensure that they utilize these opportunities in order to maximize profits.

nEntrepreneurial activities in rural areas advance the poverty-reducing approaches aiming at diversifying rural economic activities. In this regard, they facilitate the transformation of informal operations into formal growth fields (Aguilar-Morales, Sandoval-Caraveo, Surdez-Pérez & Gómez-Jiménez 2013, p. 4). Rural entrepreneurs develop business opportunities particularly for marginalized groups especially women and youth. Since women in rural areas usually lack revenue for food production and other economic activities, the entrepreneurs offer a chance for women empowerment. Moreover, they utilize the capability of rural areas to support SMEs, which provide a holistic range of factors (Figueroa-Armijos, Dabson & Johnson 2012, p.9). These help them increase global competitiveness, and create a trading environment.

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nReferences

nAguilar-Morales, N, Sandoval-Caraveo, M, Surdez-Pérez, E. & Gómez-Jiménez, S., 2013. ‘CHARACTERISTICS OF ENTREPRENEURS OF SMALL BUSINESS IN TABASCO, MEXICO’. Review of Business & Finance Studies, 4, 1, pp. 23-36, Business Source Premier, EBSCOhost. [Accessed 27 October 2014].

nAlpkan, L., Bulut, C., Gunday, G., Ulusoy, G. & Kilic, K., 2010. Organizational support for intrapreneurship and its interaction with human capital to enhance innovative performance. Management Decision, 48(5), pp. 732-755.

nAntoncic, J. A. & Antoncic, B., 2011. Employee satisfaction, intrapreneurship and firm growth: a model. Industrial Management & Data Systems, 111(4), pp. 89-607.

nDacin, P. A., Dacin, M. T. & Matear, M., 2010. Social entrepreneurship: why we don’t need a new theory and how we move forward from here. The academy of management perspectives, 24(3), 37-57.

nFigueroa-Armijos, M., Dabson, B. & Johnson, T. G., 2012. Rural entrepreneurship in a time of recession. Entrepreneurship Research Journal, 2(1).

nKuratko, D., 2013. Entrepreneurship: Theory, process, and practice. Stanford: Cengage Learning.

nLee, S. H. & Phan, P., 2008. Initial thoughts on a model of rural entrepreneurship in developing countries. In World Entrepreneurship Forum, pp. 14-15.

nPeters, M., Frehse, J. & Buhalis, D., 2009. The importance of lifestyle entrepreneurship: A conceptual study of the tourism industry. Pasos, 7(2), pp. 393-405.

nShort, J. C., Moss, T. W. & Lumpkin, G. T., 2009. Research in social entrepreneurship: Past contributions and future opportunities. Strategic entrepreneurship journal, 3(2), pp. 161-194.

n’YOU CAN BECOME YOUR OWN BOSS!’, 2008, Shape, 27, 12, p. 31, Health Source – Consumer Edition, EBSCOhost. [Accessed 27 October 2014].