Reflections on How I Became an Entrepreneur
Introduction
We live in societies of high unemployment and low real wages and therefore it is inevitable for the economies to increase the demand for labor and create a set of new sources of income. This can be so by encouraging the creation of new firms, thereby generating not only profits for the owners but also new jobs (Bridges, O’Neill, & Cromie, 2013). This is a context that encourages the economy to benefit from the individuals with entrepreneurial abilities to practice such traits and become entrepreneurs. A critical aspect of this process is that the policy option of encouraging and nurturing entrepreneurship comes at a cost, and thus it constitutes an interesting public policy issue.
The purpose micro-enterprises perform as catalysts for economic development and as a remedy against poverty for key segments of the population has been emphasized enough (Drucker, 2011). Pursuing these objectives has enabled many government programs, NGO’s and international organizations to support and encourage small firm ownership. These micro-enterprise programs have several objectives –job creation, self-sufficiency, economic development, which make them different from other anti-poverty programs since they have potentially efficient ways of helping individuals to help themselves (Drucker, 2011). When these resources flow into the micro-enterprise sector, the question that arises is that: what gains do the individuals associated with becoming the entrepreneurs get?
Therefore, the individual entrepreneur creates or detects business opportunities that he/she exploits through small and medium-sized firms, usually participate in funding the firm’s capital, carries out the duty of arbitrator or simply “sells the idea” of the business proposal (Hmieleski, & Corbett, 2013). The chief executive or the “corporate entrepreneur” of large firms must also be considered. The position is no longer restricted to efficiently managing the assets of the firm and controlling and coordinating its activities; within the current setting, he/she must anticipate, articulate and ensure that he/she manages change. That is, they need to reinvent the firm daily, coming up with new enterprise (spin-offs) and develop company networks. Looking at the figure of the corporate business person, there should be a consideration of key shareholders that play an active role in the firm along with managers who share in formulating the firm’s essential competencies (Bridges, O’Neill, & Cromie, 2013).
Therefore, this paper gives the insight into the various aspects of becoming an entrepreneur by looking at the skills, attributes, and knowledge that an entrepreneur should exhibit. Secondly, the aspects of how the development in ICT and revolution in social media has impacted on the process and initiative of an individual pursuing the path of becoming an entrepreneur (Shane, 2013). Lastly, the level of risk-taking, creativity, and innovation around striving to become an entrepreneur is exhaustive.
Skills, Qualities, Knowledge, Attributes of an Entrepreneur
Embracing the culture of entrepreneurship comes along with specific attributes, skills, and knowledge. These various aspects of the entrepreneurial undertaking are critical in different levels or degrees of entrepreneurial intensity (Hmieleski & Corbett, 2013). They would include:
Attributes
The self-employed mindset
An entrepreneur should have a self-employed mindset. The emotional driving vigor behind a self-employed person is far from security but rather a desire for greater control over his/her life, destiny, and career (Shane, 2013). Relinquishing such level of control to a boss on a daily basis from nine to five has never been an idea for him/her to be happy, but the belief that they can get the job done perfectly without an employer –and probably without the need for other employees. This makes them have the urge of pursuing a greater level of autonomy (Shane, 2013). They want to get things done their way. This is usually done by beginning to create a situation in which they do the same kind of work they were doing while employees, but figuring out how to undertake it by themselves for themselves.
On the other hand, this aspect of going it alone usually has cut them off form gaining or getting valuable intelligence, talent experience, and feedback that could be offered by others in the form of assistance (Rae, & Carswell, 2011). They also create a scenario in which experiencing freedom may not be achieved with all that ease.
The managerial perspective
As an entrepreneur with a managerial outlook, one is often in a great position to succeed in his/her undertakings, except two misconceptions which lead to massive problems. It is the belief of many managers that if the business has failed to work, then the solution would be to hire more employees (Rae, & Carswell, 2011). Thereby, throwing other bodies at the problem, thus aggravating the situation since it fails to address the fundamental cause of the problem or lack of profitability. Secondly, there is a mistaken belief that route to success is through growth – not the profit growth but the general structural growth of the enterprise (Drucker, 2011). Growing bigger does not necessarily mean that you are getting better unless the fundamentals are efficient and sound. When a small business grows larger to fix the problem, it results in a much bigger business with the problems magnified and expanded, thereby becoming much more expensive to remedy.
Another misconception comes in when one thinks that entrepreneurs want to be bosses, even in the circumstances of losing critical potential or talent of employees. Giving orders and being in charge do not require great aptitude or skill, but it is a rare quality to be a leader –a person who can train and inspire others to higher levels (Drucker, 2011). Managers who become leaders become successful since they accept the responsibility and challenge of making sure that individuals under him/her flourish and succeed.
When the employees give their best, the managers can delegate their business activities to others and set higher goals. An employer who can't find good employees lack what it takes to create or attract good employees –thus lacking what it takes to be a successful entrepreneur (Drucker, 2011). Therefore, an entrepreneur who do not only manage but also always lead rice to a greater level and become leaders/owners.
The entrepreneurial investor
An entrepreneur who has succeeded in running a business that generates profits can begin by accepting an exciting challenge, involving managing money so that it produces more money (Drucker, 2011). To invest for maximum returns, one engages in smart leveraging of assets, and the entrepreneurial investor will usually leverage the success of the first business to create another one based on the same system or model.
Qualities, Skills, and Knowledge of an Entrepreneur
Risk-taker –an entrepreneur is an individual who is willing to take a risk in his/her undertakings. While everyone else is trying to avoid risk, entrepreneurs do understand that risk is a natural aspect of striving to achieve the set goals (Meredith, Nelson, & Neck, 2011). Their virtue of self-confidence helps them to accept the challenges of the risk they take. The good thing about taking risk is that successful entrepreneurs take calculated risks, thereby weighing the pros and cons, of the decisions they face, consider the impacts of their action, evaluate the possible outcomes and then make an informed and calculated decision having put every aspect into consideration. They consider taking risks as part of the game, but taking calculated risks results to positive outcome most of the time (Meredith, Nelson, & Neck, 2011).
Thrive on competition –entrepreneurs always tend to thrive on competition. Entrepreneurs compete with others and against themselves too. This makes them constantly try to improve their individual performance irrespective of what others may be doing.
A knack for creativity and innovation
A successful entrepreneur exhibit ambition to innovate –this includes developing new methods, ideas, services, products, and new solutions which would meet new requirements and ensure the provision of more value the stakeholders (Rauch, & Frese, 2013). Being successful in business mostly calls for relying upon improvement and positive change. This makes good entrepreneurs show the vision to be innovative and creative to realize this change and improvement.
Creativity is very key in entrepreneurship. A simple idea is powerful and can change a lot if the innovator uses the appropriate strategy to bring the idea to the market (Key, 2011, p. 5). Lack of resources should not constrain an entrepreneur's creativity and innovation. Key (2011, p. 5) argues that one does not need to start a company to implement an idea. Companies spend a lot on traditional research and development but most of the ideas they implement come from outside people (Key, 2011). After identifying an idea, an entrepreneur can license his ideas to companies and earn royalties in return.
Personal effectiveness
Handling the pressure that comes with their busy lifestyles, the entrepreneurs must portray the ability to manage time well and to take care of their own business efficiently. Since the first impressions are critically significant, entrepreneurs need to give of emphasis to aspects like personal appearance and telephone skills (Rauch, & Frese, 2013). Moreover, as an entrepreneur, it is important to acknowledge and appreciate our strengths and weaknesses to know how to handle every situation appropriately.
Leadership skills
Among the most significant leadership skills that an entrepreneur must exhibit is the ability to develop a vision for the business and be a source of inspiration to the employees of the company for them to pursue that vision as a team. From the entrepreneurial venture one acknowledges that people are led rather than being managed (Vandervert, Schimpf, & Liu, 2010). Only a few entrepreneurs possess all the skills needed to ensure that the business attains success. For example, an entrepreneur would seek for outside experts for help in areas like contracts and legal issues, accounting and finances, specialized marketing and strategic planning.
Communication skills
An entrepreneur should be able to discuss, explain, market and sell their goods or services. As an entrepreneur, it is significant to be able to interact effectively with your business team. Moreover, and entrepreneur needs to be able to express themselves clearly both in writing and verbally (Vandervert, Schimpf, & Liu, 2010). He/she should have excellent reading comprehension skills to enable them to understand the contracts and other forms of written business communication.
ICT & Social Media
The aspect of digital entrepreneurship has scaled the heights of entrepreneurship concept at large. The evolution of technology has made an immense contribution from entrepreneurship in the business sector and the economy at large especially through the digital divide (Bhide, 2014). Moreover, the framework of digital entrepreneurship within the wider context of digital business ecosystems has presented fragileness and complexity.
The lack of connectivity within different economies has necessitated the rebuild of a modern communication infrastructure with an aim of stimulating economic growth and uplifts the living standards of people. Entrepreneurs have champion the development of information and communication technologies to attain their development and reconstruction objectives. The development in ICT has facilitated the entrepreneurial initiatives through the resumption of productive capacity and the simulation of various activities in every sector of the economy (Vandervert, Schimpf, & Liu, 2010). ICT has given huge contributions in the establishment of basic economic linkages by booting out the bottlenecks in communication from cultural, governmental and financial information flows. Entrepreneurs find communication essential in boosting productivity and building a climate for investment, job creation, and sustainable growth.
ICT is a powerful tool for fostering development because it is a critical aspect of the economic innovation. On the other hand, innovation is one of the core impetus of growth (Ward, 2014). The digital entrepreneurship and the business sector, in general, play a critical role in bridging the digital divide to foster digital economy.
ICT has ensured reduction of costs and time-consumption and has removed the bureaucratic systems by creating changes in different organizations. It ensures the provision of sufficient incentives for the entrepreneurial activities, creating diversity, and provide necessary coordination for the individuals and the organizations with the changes in the communities (Ward, 2014).
The internet has been the most powerful and the largest communications network which is an explicit example of entrepreneurship. In the recent years some entrepreneurs have operated on the internet platform and via online, thereby having an interactive framework in which businesses have been facilitated and job opportunities created (Uzzi, & Dunlap, 2014). This makes information and communication to be the two fundamental tools required for the entrepreneurial activity (Sull, 2014). Therefore, information and communication technology provide lots of changes in the various aspects of entrepreneurship, especially in job creation. Moreover, a strong commitment to information and communication technology (ICT) is among the various critical elements required in accelerating the entrepreneurship.
Creativity & Innovation
There has been urgency for the different countries to identify the new sources of growth and thus develop a sustainable framework to economic success as a result of global economic crisis (Sull, 2014). The traditional reliance on a nation’s natural resources is considered insufficient to maintain the long-term growth. It is only through creativity, innovation and entrepreneurship that countries can enhance their competitiveness, realize the benefits of a rapidly expanding digital economy, and diversify their economies. The Organization for Economic Cooperation and development (OECD) has pointed out that some countries are currently tapping into the increasingly expanding global marketplace and lead the innovation economy (Bhide, 2014). On the other hand, the difference in multifactor productivity which is always driven by improvements in efficiency and innovation –has accounted for much of the overall gap existing between the advanced and emerging economies.
According to Drucker (2011), innovation is an essential of entrepreneurship. Both entrepreneurship and innovation call for a high demand of creativity. Creativity involves the ability to make something new, be it in the form of a solution to a problem, a new device or method. Creativity is considered as the ability to accept change and newness, that is, the willingness to play with possibilities and ideas and seeking better ways to improve it (Rauch, & Frese, 2013). There are numerous business opportunities in applying the creative thinking to solve the cry of mankind in search of basic products and support services – better jobs, better homes and better ways of life.
The entrepreneur is concerned primarily with developing new processes, products, and markets. An entrepreneur would indulge in original thinking more than how any other person would think and he/she can come up with solutions which revolve around an established knowledge (Shane, 2013). They are inclined to adapt and consider a broad range of alternative methods. Entrepreneurs strive to challenge the status quo and would want to carry out their undertakings in a different way from the obvious, thereby taking bold, creative steps.
On the other hand, innovation brings about the best ideas into reality, thereby triggering a creative idea. Innovation involves the creation of new value. It involves the process of transforming new ideas into new value (Shane, 2013). A person cannot innovate without creativity. Innovation entails a fresh way of understanding people, looking at things and the entrepreneurial willingness to work hard and take risks.
The different enterprises across the globe are experiencing a revolution which encompasses the rise in energy and material costs, new technologies and fierce international competition, and an advanced use of automation and computers (Meredith, Nelson, & Neck, 2011). These issues have posed major challenges, which require a positive response from the entrepreneur and the management to forge the prosperity and survival of the enterprise.
My Risk-Taking
As an entrepreneur, I have taken a lot of risks in my business undertakings. Before I could venture into the world of business ownership, I had first to say goodbye to the job I was doing. This is an opportunity cost that called for deserting a steady paycheck that I had enjoyed for more than four years to venture into the world full of uncertainties (Meredith, Nelson, & Neck, 2011). This is a risky plunge since there is no guarantee of personal income, particularly in the first months and years of the business. Additionally, venturing into a personal business called for me to sacrifice my personal capital which another risky aspect of entrepreneurship as a failure of the business could make the entrepreneur bankrupt (Rauch, & Frese, 2013).
Conclusion
Entrepreneurs have been increasingly considered an important key to the economic progress of a nation. The small and medium size enterprises in collaboration with the entrepreneurs hold a huge potential for the development of a nation (Okpara, 2010). The entrepreneurs are critical towards building a stable and healthy society. They have been at the forefront of creating an important middle class besides being an invaluable source of tax revenue, foreign currency, jobs, among other tertiary benefits (Rae, & Carswell, 2011).
The key roles that entrepreneurship has played in our economies have created changes in the communities we live. All these aspects felt in the societies today and in the difficult circumstances is driving a lot of attention towards addressing the formulation of entrepreneurship and entrepreneurial thinking (Bhide, 2014). This is because entrepreneurship is the engine of transforming and changing the economic, culture and society development and moreover its growth can lead to the transformation of the national economy. Most importantly, in various cultural and economic circumstances of different countries in the recent years and the high rates of jobseekers and unemployment, entrepreneurship has played a key component of national plans (Okpara, 2010).
Not even a single enterprise or entrepreneur becomes big and fruitful or even hold a place of leadership unless it recognizes the fact that modern business operates in a world of galloping change. There are new problems, risks, and opportunities that are created, and therefore they have to mobilize resources of the enterprise before the changes impact hugely on its operations and success. Achieving this in a successful manner calls for the entrepreneur or the enterprise to identify where the firm is heading to and how the firm will find its way there. Hence, it requires a precise definition of the company's business which will enable it to adopt operations continuously to the reality concepts of the marketplace.
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