Introduction
In the modern society, entrepreneurial skills are necessary for both the existing and new venture businesses. The increasing economic and environmental dynamics as well as the intensifying global competition forces enterprises to build more entrepreneurial stratagems in order to compete and endure. Such strategies include the ability to identify opportunities and develop them towards a competitive advantage of the firm. The adoption of change and exploration of business prospects requires certain decisive leadership and entrepreneurial skills. Entrepreneurship entails the exploration of resources beyond one’s control through risk taking coupled with strategic vision and the ability to influence and motivate others as well as organize resources towards a desired goal. Therefore, implementing an effective business strategy put the venture into a better competitive advantage both domestically and internationally.
Strategic Leadership Skills
Leadership in the business sphere faces recurring and new challenges that require immediate decisions. Some of the decisions are high risk and unpredictable for the future of the business. However, the success of an entrepreneur either new or experienced in the industry requires some leadership qualities (Rowe, 2001). Some of the most essential strategic leadership skills and traits include the ability to decide, align, learn, and interpret as well as to anticipate placing the ventures at an advantage.
Anticipation skills involve the ability of the leader to study and detect the threats and opportunities in the business. Strategic leaders are observant and scan the industry for signals of change. They take appropriate measure according to the prevailing dangers or prospects and capitalize the opportunities to stay ahead of their competitors. Leaders can increase their ability to forestall by first conducting market research to understand competitor's possible reaction to new technology initiatives and products. Secondly, talk to the business stakeholders to understand business challenges (Kraus, & Kauranen, 2009). Thirdly, look at the growing rival and establish the secret of their success and fourthly by attending events, workshops and conventions in other industries to realize how to identify opportunities and how to act during challenges.
A strategic leader is never satisfied with the status quo. He/she keeps high expectation that challenge the industry in an attempt to introduce better ways to solve a problem. They reflect, plan and make a decision from a pool of options. The process of decision making requires patience, open-mindedness, and courage. To achieve a solution, a strategic leader focuses on the root issue rather than the symptoms (Kraus, & Kauranen, 2009). He/she analyzes the business environment to identify the problems, risks and opportunities and evaluates the best opportunity with minimal risk. Such a leader must be ready to learn and make difficult and risky business decisions in times of economic crisis. Learning involves the creation of a culture of inquiry that promotes learning from successful and unsuccessful ventures.
A strategic leader with the necessary skills has a positive influence to the employees and the company. Judging such a leader focuses on various aspects related to the business and his impact on it. First, evaluation of a strategic leader looks at goal attainment records. He/she positively influences the business and the employee toward the firm’s set goals and objectives and realizes them in a set time frame. Secondly, the ability to adapt to the environmental dynamics in the business industry and the strategic or operational decision made under pressure to motivate the employees and drive the business towards success. It involves establishing visions and missions as well as formulating and implementing new strategies to achieve success. Evaluation based on team building and conflict resolution within the firm as well as the integration skills that involve the application of some mechanisms to coordinate the workers in the business. Finally, the ability of the leader to maintain his workers morale and interest in their work is necessary for the solidarity of the group as well as the achievement of the set goals.
The challenges
Outsourcing is one of the challenges that entrepreneur encounters when taking a business venture outside the country. Global outsourcing provides companies with competitive advantages given the operation costs in the host countries (Kathawala, Zhang, & Shao, 2005). Businesses get cheap labor, unique materials as well as new market opportunities. In the same account, outsourcing has challenges such as loss of future talents, loss of intellectual assets property and organizational performance.
Language barrier and culture is a serious challenge in taking entrepreneurial venture outside the country. Language proficiency, communication skills and foreign culture challenges international business practices when the official language is not English. Such a scenario makes it difficult for the firm establishment (Kathawala, Zhang, & Shao, 2005). This makes it expensive for a company to hire an interpreter to enhance the communication. Language efficiency and effectiveness makes the business thrive, and the firm has to incur further expenses in training the local in a new language program to enhance communication.
Outsourcing companies fear losing control of resources and the introduction of new laws and services. Offshoring exposes companies into new liabilities because of lack of adequate information on the consumer’s taste and preferences (Kathawala, Zhang, & Shao, 2005). Exposure to new trade regulations and political instabilities are major hindrances to the firm development. The host government might have laws that disadvantage foreign companies in favor of domestic businesses. To counter the challenges, the company should establish a thorough research before outsourcing to establish the laws, political environment, as well as pre-market research, to establish customer test and preferences. The management should make the decision on the scope of the business as they focus on customer choices.
In most cases, companies outsource in developing countries that need modern technologies and professional expertise in various fields. This poses a challenge to the business because it hinders its ability to meet its targeted production quality and quantity (Kathawala, Zhang, & Shao, 2005). Additionally, lack of skilled and experienced workers increases the cost of production through the importation of technology and employees. To solve the challenges, the firm uses short-term and long-term strategies of importing workers and technology as well as investing on training locals for these positions.
Other challenges include unfavorable business and political environments, weak intellectual property rights, and social differences. These factors provide significant challenges that the firm cannot control or solve. This is because the factors are beyond the firm’s reach, and it can do nothing to alter the native culture, language or political issues. However, the firm can survive through managerial strategies of adaptation to the country environment.
Entrepreneurial Environment in the U.S.A
In the recent past and the present, the United States experiences entrepreneurial optimism. There is a continued increase in business opportunities as the Total Entrepreneurial Activity is at its highest since the establishment of the Global Entrepreneurship monitor (GEM) survey in 1999 (Karlgaard, 2013). Entrepreneurship in America exhibits diversity in terms of gender, age, and race as well as immigrant status among other characteristics. Entrepreneurship in the United States is characterized by operating from home, using family labor, limited sources of capital and domestic operations. Entrepreneurship is the current goal of most Americans as the citizens seek to achieve their dream of prosperity.
According to Gem report, the climate of entrepreneurship in the United States of America is improving compared to the previous years. The population is creating and embracing any business opportunity and utilizing business niches in the industry (Karlgaard, 2013). Consequently, many people are finding self-employment in this ventures thus creating employment and raising their living standards. The report suggests that five people opened a new business venture in 2012 for every person who closed the business in the previous year. It implies that as the recovery process of 2008 economic crisis continues, better economic environment are available for new businesses (Karlgaard, 2013). Despite there being some challenges for new business such as high competition from the existing firms, there is a recorded better economic environment favorable for new businesses.
The promising business environment and political stability in the United States offer the best opportunity for national development and venture. Following the economic recovery from the current global economic crisis, the American business environment is viable and attractive to both new and established businesses. The collaboration between the big and small firm stimulate business development in the U.S (Karlgaard, 2013). Established companies in America depend on small-promising firm to develop their technologies and new products. This gives new businesses a chance to expand their domestic venture through increasing their innovativeness and tapping creativity to endure the high competition in the American trade industry.
Expansion Strategy
The development of business is a central aim of every manager and entrepreneur. Though development takes different models, the American business environment is attractive for domestic expansion than out country venturing (Hickman, 1994). Since the firm is aware of the trade regulation within the American society, it is important to consider domestic venturing. The success of a business depends on the adoption of aggressive venture strategies. These procedures ensure the business expands to capture new markets and increase its customer base.
Internal venturing is an approach that incorporates traditional expansion methods with the modern method to achieve the firm’s objective. Despite the policies having some hurdles, it is the best option for emerging small company that is yet to establish itself in the industry (Hickman, 1994). Internal venturing is important because the management and control of the business remain with the owner despite the expansion plans. This strategy also accrues more profit thus stimulating growth and development as well as venturing into a new market either physically or the introduction of new products.
Conclusion
In conclusion, therefore, entrepreneurship and leadership are two different concepts that are dependent for business success. A good strategic leader employs adequate and appropriate strategies for the achievement of the firm’s objectives. A successful entrepreneur possesses strategic leadership skills such as the ability to make a sound decision, anticipate the industry, and not get contented with the status quo and willingness to learn new strategies to execute various projects.
External venturing is a common trend in business due to globalization and increased technology. Businesses that outsource accrue advantages from the availability of cheap labor, raw materials and new market that increase their revenue. However, the companies face challenges from communication barriers, cultural differences, hostile economic and political conditions and lack of advanced technologies and professional experts. The management can address some of these challenges while some are beyond their control.
