Introduction
The local economic context is being reshaped by the insertion of local economics into the globalization of network toward production and consumption. Currently the entrepreneurs are becoming more aggressive catalysts for change in the business world. They are regarded as the individuals who see the opportunity where others see confusion contradiction or chaos. Entrepreneurs are perhaps compared to the Olympic athletes who challenge themselves to break the barrier to the long distance runners or as symphony orchestra conductors balancing different sounds and skills into a cohesive output (Boyles, 2012). However, the essential ingredients of a good entrepreneur include the willingness to take well-calculated risks in terms of time career or equity.
The individual should be able to formulate a venture team using the creative skill to Marshall the resources required. The entrepreneurs should think above the creation of business, and they should combine all the skills and behavior to special perspectives permitting them. More over the perspective can be exhibited outside or inside the organization in both profit and non-profit making businesses. The process of becoming an entrepreneur is mostly referred to as entrepreneurship, which is an integrated concept that permits the business to develop in an innovative way (Frydenberg and Andone, 2011). This paper answers the question: how to become an entrepreneur in the 21st century? The paper as addresses the process of becoming and entrepreneur as well as the behaviors and skills that needs to be adopted.
Nature of Entrepreneurship to the Business
Entrepreneurship is a significant part of both local national economies. It is an important factor in creating and increasing employment opportunities and fuelling economic growth. For many years, policymakers have identified entrepreneurs as important drivers for employment, innovation and economic growth. However, entrepreneurship is regarded as an important activity to regenerate and sustain economic growth in strong economies. Again, t means of boosting employment and productivity in deprived regions or in both developing and developed countries, as it is an important source of job creation, career opportunities and poverty reduction in the society (Griskevicius, Cantú and Vugt, 2012).
Motivation and Commitment: It is one important nature of entrepreneurship; it enables one to get the basic ingredients of start-up right of a business. However, individual and institutions lending money look at the person first and foremost, so motivation is the most vital. One needs to convince the bank manger to make the business work because the market is researched (Katzenstein and Chrispin, 2011).
Abilities and skill: The second and crucial element is one of ability and skills. The person has to have skills appropriate to the type of business proposing to run. However, the skills are not available; individual should have a dependable person with relevant abilities and skills. Nevertheless, it could be that a single knows how to run a business from an operational as well as management perspective, whereas another person has the technical skills to develop the product or service toward achieving business objective.
Innovative and Resources: The entrepreneurship should be able to discover new trading opportunities and lower cost or new technologies to explore the market. The third nature of entrepreneurship is that the process requires resources. That is perhaps not purely about money or even equipment; it is also about intellectual capability, the potential to influence others is imperative. Many entrepreneurs have been able to negotiate very favorable deals against the odds, when instituting their business.
Strategy and vision: The fourth element is that the entrepreneurship involves strategy and vision in terms of thinking four or five years in future as well as having some idea of where that business might be in the future and putting in place a plan to achieve the goal and objectives. Moreover, planning and organization is another aspect that entrepreneurs need to look at to succeed in business. Without planning, organization, coordination as well as administration, the product could neither get to market nor will it satisfactorily meet demand from the customers. One need to think about systems, job roles, and most importantly quality issues, which if handed effectively, will ensure satisfaction of the market by delivering on time and to the right place.
The idea in relation to the market: What people are trying to do is to make certain that they are customer focused. This is achieved by ensuring that the individual is satisfied in their necessities. However, it is crucial to look at the six elements it becomes evident that you can have a bad product with a highly motivated individual, which will produce an acceptable business.
Understanding Entrepreneurial Behavior
Entrepreneurs exhibit significant personality types; however, searching for a specific personality pattern is not an easy task. There are probably as many personality varieties among entrepreneurs as there are entrepreneurs. Researcher David McClelland, a noted social psychologist, determined that founders of high-growth companies appear to share a distinct cluster of personal characteristics. The following are different behaviors exhibited by entrepreneur.
High Need for Achievement: Growth-oriented entrepreneurs should have high need for achievement. Moreover, they perhaps desire to succeed, to achieve, as well as to accomplish challenging tasks .The firm desire for success leads to a desire for independence. The need for achievement may help explain why growth-oriented entrepreneurs are not satisfied with founding or working in one firm; they need to prove themselves again and again.
Low Need to Conform and Persistence: Growth-oriented entrepreneurs listen, but they are able to ignore advice of others. Additionally, conducting skeptics is easy for entrepreneurs. Taking the unpopular course of action, if they consider it best, is the way they do business. On the other hand, growth-oriented entrepreneurs are inattentive and persistent, doggedly doing what is best for the business to succeed (Schaper et al., 2010). They work hard on the details as well as relentlessly attempt to find ways to become more profitable.
Teamwork: The entrepreneurs should be able to participate effectively in team work.
Successful entrepreneurs have intense focus on their core teamwork of their business in the early stages of their ventures. Later, when they have capital to spare, they can dabble in other ventures and test their skills in new industries. The key driver to succeed is usually an internal motivation some people are just more driven by the team work than others.
Creativity and innovation: Entrepreneurs have the ability to come up with new business models as well as new products that fits the expectations in the market. However, many entrepreneurs assist develop their own drive by creating a clear vision and mission of where they would like to go and then using every resource at their disposal to achieve that vision. Another important factor to entrepreneurial success is the ability to come up with creative ideas to achieve goals.
Communication and risk taking: Successful entrepreneurs develop widespread communication social networks that they can leverage in time of need. This ensures effective communication within and outside the business. The risk-taking tendency enables entrepreneurs to have high need for achievement tend to take risks. Notably, growth-oriented entrepreneurs believe so strongly in their ability to achieve such that they do not realize much possibility of failure. For this reason they accept risk and find it motivating factors.
Elements of Entrepreneurial Business plan
Entrepreneurial business plan helps to provide direction by making individuals to discuss where they want to take the venture and define what they want out of it. Again, a business plan provides structure to the thinking and helps in ensuring that people have covered all of the important areas before launching a business. Again, a business plan prompts one to think about the future of the business. For instance, a business plan might help in considering what to be do and when it should be done, once the venture is developed, it perhaps attracts several competitors. Notably, a good business plan will include ideas for dealing with new competitors in the market, helping entrepreneurs to prepare your business for this situation. Plan of activities will help you communicate the idea, not only to financers, but also to employees, potential employees, suppliers, as well as customers. However, as a communication tool, a carefully developed plan will assist in providing something that other people can react to. The essential elements of the entrepreneurial business plan are explained below.
Business Description
As an introduction to your business, this section should provide an overview of the business and its objectives. Readers of your business plan will want to know why this business should exist. Having a mission statement will help communicate this. However, mission statement is also very crucial in giving the mission of the business. As one begins the business venture, the first step is to clarify what is most important. Additionally, Business overview is also included in the Business Description portion of a business plan; this is a summary of the current state of the venture. Again, provide a definition of the business, state whether in is a retailer, wholesaler, service provider, or some mishmash. Also, include the description if it is to be started from scratch, as an expansion, or as an acquisition. Products and services description is also necessary, this is the description of product or service to provide context for what will be later considered as market.
Market Analysis
This part is the place for one to evaluate the market and your approach to it. In it you describe the market's characteristics, your target customer's profile, the competition, and how you plan to gain an advantage over them to create a successful venture. Market Characteristics of the business will be an integral part of an industry. The industry’s market is described so that readers can understand the market place. On other hand, information on its size, location, history, competitiveness, profitability and its general health. Significantly, the discussion of the current trends in opportunities and threats are made clear. This foundation will help to prove that a market exists for the product. However, the efforts to reach the potential market and create a profit will be limited by other competitors involved in the industry. Target customer profile is generated to narrow the range of potential customers to those specific ones who are willing and able to Purchase the product. Although your product or service may meet the needs of a large constituency of potential customers, the goal is to define your target customer as specifically as possible both quantitatively and qualitatively.
Competitor Assessment
In the market analysis, it is important to include a review of your specific competitors. Notably, all businesses have competitors in different forms. Consequently, some competitors sell similar products, while others sell a product that serves the same role. The set businesses will likely not take your entry into the market flippantly. First, define who the competitors are, and then profile them accordingly. The opponents need to be accessed with a critical eye on their strengths and weaknesses compared to that of the business. It is perhaps crucial to have a better understanding of the operations of the competition so as to know how to stand in relative terms. The entrepreneurs should keep in mind that the customer profile created in earlier stages. In this section, address how the competitors satisfy the needs and what the new business should offer.
Marketing Plan
Marketing plans usually address four areas that include product offered, price charged, distribution system, as well as promotional efforts. Goods and Service in the business description, the product or service is described in general terms. In this section, the entrepreneur should describe product and how it will be used (Varis and Littunen, 2010). Moreover, this is a chance to explain products or services, identify their features, benefits, as well as discussing what needs or problems they address in the market. The pricing programs are perhaps formalated based on the values of the products and services, the cost of doing business, as well as expected competitive advantage actions.
Distribution portion of the marketing plan, describe how the product or service will be distributed and over what geographical area. Nevertheless, distribution decisions concentrate on the methods and channels of delivery that will optimize your sales and profits. In this part, it is necessary to describe how the product will be sold, whether through retailers, direct sales, among other methods (Morris, 2012). Again, discuss any relationship developed with distributors or any licensing agreements acquired by the business. Promotional activities are designed to communicate the value of the products and services to the customers, ultimately leading them to purchase the product or service. On the other hand, the range of promotional tools available is perhaps very broad and may be a combination of advertising, personal selling efforts, as well as general public relations activities.
Operating Plan
The operating portion of the plan deals specifically with the internal organizational structure, operations, as well as facilities needed to operate the venture. One should discuss how the business will be owned and managed, personnel as well as physical resource requirements, and the legal issues to be possessed (Varis and Littunen, 2010). Ownership and management section describes the property of the venture, and explain how the business will be managed on a day-to-day basis.
Financial Plan
This is a necessary part of evaluating a new investment opportunity. With it you develop an estimate of your profit potential. It can even become an operating plan for the financial management of the venture. In this section, describe the current economic status and present forecasts of future financial statements. Lastly is executive summary, abstract is your chance to highlight the important aspects of the venture. As a overview of the plan it should be short (Varis and Littunen, 2010).
Elements of managing Rapid Growth and Overcoming Obstacles in Entrepreneurial Environment
Entrepreneurial environment is growing dynamically. For this reason several elements have been establish to ensure stability in the environment. Technical skills: these are those skills necessary to produce the product or service of the business. On the other hand, managerial skills are essential to the day-to-day management and administration of the enterprise. Entrepreneurial skills elements are also established, this involve recognizing economic opportunities as well as acting effectively on them.
Personal Maturity Skills include self-awareness, accountability, emotional skills, and creative skills. This enables the entrepreneurs to think and act appropriately toward the change. Additionally, environmental observation is used in examining the key skills required of entrepreneurs identified a number of key elements which are believed featured prominently in entrepreneurship (Rasmussen and Borch, 2010). These skills include the ability to identify and exploit a business opportunity, human creative effort of developing a business or building something of value and willingness to embark on risk.
Competence to organize the necessary resources to respond to the opportunity: this is achieved by instilling empathy with entrepreneurial values and associated feeling as well as learning things. Development of the aptitude for strategic thinking and scenario scheduling and the practice of making intuitive decisions based upon ruling with limited evidences. This enables the entrepreneurs to manage the changes in the industry as a result of rapid growth in the entrepreneurship sector.
Creation of a vision as well empathy with, the way of life of the entrepreneurial individual: This implies a substantial stress upon the employment of educational pedagogies inspiring a sense of possession, control, independence, responsibility, autonomy of action as well as commitment to see things through while living, day by day, with uncertainty and complexity. Stimulation of the practice of a wide range of entrepreneurial behavior such as opportunity seeking and grasping, taking initiatives, persuading others, networking and making intuitive decisions, this requires a comprehensive range of pedagogical techniques.
Focusing upon the cognitive as well as affective enjoyable and stimulating aspects of learning as well as the cognitive as the relevance to application is of fundamental importance. Again, maximizing the opportunity for experiential learning and engagement in the community practices will create space for learning by doing and re-doing. For this reason, projects will need to be designed to stimulate entrepreneurial behaviors and assessed accordingly.
However, the Creation of the capacity for relationship learning, network management on the basis of trust-based personal relationships ensures successive overcoming of entrepreneurial challenges. The future Business Plan perhaps becomes an important module of relationship management leading to understanding that several stakeholders need have a strategic plan with different emphasis such as a venture capitalist or angel is looking for different features rather than a banker or the potential associate.
Developing understanding and building knowledge around, the processes of organization development through survival to growth and internationalization ensure persistence in business. This will require a focus upon the dynamics of change, the nature of problems and opportunities
That arise and how to anticipate and deal with them (Landes et al., 2012). Again, focusing upon a holistic approach to the management of organizations and the integration of knowledge creates the capacity to design entrepreneurial institutes of all kinds in different contexts and understand how to control them successfully. The industrialist should focus strongly upon processes of opportunity seeking, evaluation and opportunity grasping in different contexts of trade.
Sources of Information, Assistance
Chambers of commerce and world trade centers: this comprises of over 80 percent of the membership of the typical Chamber of Commerce in the small business category. Nevertheless, only a small percentage of the small enterprise in a given area usually belongs to the Chamber serving their area. The membership costs are usually given as the reason for not join. The main role that the Chamber of Commerce plays for its members is its relationship with the U.S. Department of Commerce and the Chambers at the state level and State Development Boards that function to advance the business atmosphere of their area (Morris, 2012).
Private Investor Networks (PINs): These are typically operated by an agency such as an Economic Development Center of a college or university. The PIN is perhaps a confidential computerized matching service which brings together entrepreneurs as well as investors in two distinct stages. In provision of the service, the PIN does not assess applications and makes no attempt to screen subscribers or to verify the accuracy of information presentation. Further, PIN does not assist subscribers in negotiating terms of investments. It acts as a link between entrepreneurs as well as investors.
The NIST Manufacturing Technology Centers Program: This project is of great interest to the manufacturing firms and those involved in software development and system integration for the manufacturing industries. Notably, MTC's efforts focus solely on transferring manufacturing machinery as a means of enhancing the productivity and technology of the firms in the regional manufacturing base (Morris, 2012). However, they do not involve themselves in activities centered on research or development of new mechanized technology.
The Tax Reform Act of 1986: It 's hard to explain the consequences of the Tax Reform Act of 1986 (ACT) in a short space. Moreover, the ACT extended the study credit with som vital modifications. On other hand, R & E credit is reduced to below 20 percent and keeps the base period rule only for qualified research expenses. This provides necessary information to the individuals willing to start a business.
Qualified Research: The 1986 Tax Act suggested that the qualified research is perhaps a study that with respect to which expenditures may be treated as expenses under Code Section 174 if undertaken for the intention of ascertaining information which is technological in natural world, and the application of which is intended to be useful in the development of a new or improved components of business to the taxpayer, as well as substantially all of the actions constituting of elements of a process of experimentation.
Entrepreneurial Events
The entrepreneurial events are the meeting and conferences that young and old individuals attend to further their business leadership skills as well as the entrepreneurial skills. The CEO National launched in Chicago is one of the events, this involves over 1000 entrepreneurs whole come together share business ideas. BarCamp is another event, it is a conference that whereby individuals gather and discuss business and other factors around them.
Moreover, Techcrunch Disrupt is an event the enables the entrepreneur to enter in to competition and answer questions that are tough. This also enables the entrepreneurs to mingle with other investors. Another event that is a significant source of information is Ignite; during this even the business speakers make five minutes presentations to share business ideas. New York Tech Meet up is another event that incorporates over 800 individual in a business demo style event (Robertson and Wardrop, 2012). Also, entrepreneur Week in New York also enables the individuals to access the contacts of the successful entrepreneurs as well as acquiring beneficial ideas.
Conclusion
The insanity in the growth of the entrepreneurship in the 21st century is caused by the upcoming entrepreneurs doing the same thing and expecting different results. For the entrepreneurship process to embrace 21st century, they should adhere to all entrepreneurial behavior and expand their pedagogies to incorporate new innovative approaches in their innovative skills. This will enable them to adjust to the growing environment and compete favorably in the global market. However, the sources of entrepreneurial information the such as media and conferences plays a crucial role in equipping the entrepreneurs with relevant skills.
Bibliography
Bosma, N.S., Stam, E. and Wennekers, S., 2011. Intrapreneurship versus independent entrepreneurship: A cross-national analysis of individual entrepreneurial behavior. Discussion Paper Series/Tjalling C. Koopmans Research Institute, 11(4).
Boyles, T., 2012. 21st century knowledge, skills, and abilities and entrepreneurial competencies: A model for undergraduate entrepreneurship education. Journal of Entrepreneurship Education, 15, p.41.
Frydenberg, M. and Andone, D., 2011, June. Learning for 21st century skills. In Information Society (i-Society), 2011 International Conference on (pp. 314-318). IEEE.
Griskevicius, V., Cantú, S.M. and Vugt, M.V., 2012. The evolutionary bases for sustainable behavior: Implications for marketing, policy, and social entrepreneurship. Journal of Public Policy & Marketing, 31(1), pp.115-128.
Katzenstein, J. and Chrispin, B.R., 2011. Social entrepreneurship and a new model for international development in the 21st century. Journal of Developmental Entrepreneurship, 16(01), pp.87-102.
Landes, D.S., Mokyr, J. and Baumol, W.J. eds., 2012. The invention of enterprise: Entrepreneurship from ancient Mesopotamia to modern times. Princeton University Press.
Morris, M.H., 2012. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Rasmussen, E. and Borch, O.J., 2010. University capabilities in facilitating entrepreneurship: A longitudinal study of spin-off ventures at mid-range universities. Research Policy, 39(5), pp.602-612.
Robertson, M. and Wardrop, K.M., 2012. Events and the destination dynamic: Edinburgh festivals, entrepreneurship and strategic marketing. Festival and Events Management, p.115.
Schaper, M., Volery, T., Weber, P. and Lewis, K., 2010. Entrepreneurship and small business.
Varis, M. and Littunen, H., 2010. Types of innovation, sources of information and performance in entrepreneurial SMEs. European Journal of Innovation Management, 13(2), pp.128-154.
