Entrepreneurship is the method or ability to build a constructive framework of business opportunities and execute them under the situation. The aspects of Entrepreneurship need to maintain the momentum in a long run and change a process of innovation into a process or procedure of regular formulated practice. Entrepreneurship is also about the essence of successful negotiations and can be treated as a blend of an opportunity-seeking mind and the ability to execute that opportunity.
Common personal entrepreneurial characteristics or traits are the qualities that make an entrepreneur successful as a business person. These Common personal entrepreneurial characteristics or traits can be enumerated as strategic ability, resourcefulness, proper HR capacities, and understanding a situation clearly. It is believed that these are the common personal entrepreneurial characteristics or traits for business success and all successful entrepreneurs possess all these qualities. (McKee, 2003)
The method of sustaining or developing a business by an entrepreneur depends on the amount of creativity present along with the innovative capacity to understand and provide the market needs. The business movement of an entrepreneur is construction on the idea. It can be stated that an idea can develop at any stage of history but opportunity, specifically in business and marketing, arises only when this idea can be motioned in a direction that would be instrumental in yielding a profit for the company. In other words, a need should be created in the market so that this idea can become sellable. For example, interest in selling refrigerators to Eskimos is an idea but to create the need of the product within the customers by making them believe that this product helps the food to conserve from extreme cold is the opportunity. (Cunningham, 2005)
Similarly, another mode of operation of this type of business is innovation. Innovation is the improvement of a prototype product or service or strategy that becomes helpful for the business to gather extra mileage or competitive advantage over its competitors in a given market segment. Innovation is a very important aspect of business and management and thus any proper innovative idea can be regarded as an asset for the company. It can be stated that a successful entrepreneur occasionally uses innovation in terms of economical statements to make a better understanding of a market structure. (Kirzner, 2007)
To make a business flourish or move, an entrepreneur needs a specific business angle. Business angels can be defined as the point of view that enable business personnel to analyze and evaluate a given situation from the perspective of profit and loss scenario. Under such a perspective only the market segments are taken into consideration in general. However, political or environmental issues are also evaluated if those aspects are directly or indirectly associated with the profit and loss consciousness of the business. It could be stated that business angles are extremely relevant for concern but there are times when social issues should also be taken into consideration.
There are, however, other specific traits of an entrepreneur. The relationship between individual awareness and team effectiveness is a bond that is interlinked and an effective aspect of the success formula under the parameters of HR and Team Management principals. It is obvious that an individual is a part of a team and if that individual’s level of awareness is good enough then the overall team would benefit from the individual. Relationship, when effectively put into use, is extremely helpful for any team. Thus it is essential to maintain a lucid relationship within a team. The same can be stated for the relationship among the entrepreneurial team, task orientations, and entrepreneurial life-cycles as all of these aspects are parts of a bigger picture that indicates the success of business in the long run. All successful enterprises bear this specific quality and this quality is the major provider of momentum for the business. (Hindmoor, 2008)
Difference between entrepreneurs and small business owners
The basic aspect of an entrepreneurial business plan is the features that incorporate the different variables of the market segments and evaluates its strength, weakness, opportunities, and threats under the parameters of a given market segment. The key objective of an effective entrepreneurial business plan is to formulate an able strategy that would help the company to sustain itself in the market and occupy market segments. On the other hand, a small business owner depends on the existing trends of the market. There is nothing creative about the function and method. It follows the tested and usual mode of buying and selling.
An entrepreneurial exit strategy is another creative and innovative strategy that makes an entrepreneurial business different from a general small business.
An entrepreneurial exit strategy is a strategy that enumerates the marketing plan to quit the business in terms of sell-off, merger, or complete acquisition. It is important to know the time to exit and if used properly it would enable a company to reestablish again in the long run. It could be stated that several companies ended up in mergers and acquisitions and thus resulted in a survival strategy in the long run. On the other hand, a small business owner is unable to move into such strategic financial modes and thus tends to go bankrupt when the time for the specific form of business is not appropriate. (McCraw, 2007)
Reasons individuals choose to be an entrepreneur
It is always profitable and effective for individuals to choose to be an entrepreneur and not a small business owner. An entrepreneur is a person who develops a business idea that is based on an Entrepreneurial opportunity. Entrepreneurial opportunity is the aspect of business that every business personnel waits for with eagerness. It should be mentioned that to achieve penetration into the market segment of a given product or service the business must look forward to Entrepreneurial opportunities. Without this Entrepreneurial opportunity, it is very difficult to be successful in the initial stages of the company. (Hindmoor, 2008)
It can be mentioned that an Entrepreneurial opportunity is a situation that indicates a favorable scenario for a business within the parameters of its market segment. As an example, it can be stated that an entrepreneur uses the market need or is quick to understand the need of a market. This opportunity is like developing new software that could be used to negate a fundamental software-related problem like spyware. The need for this software in the market is an Entrepreneurial opportunity and one who uses this opportunity is an entrepreneur. (Henrekson & Jakobsson, 2000) Thus, it is needless to say that being an entrepreneur is much more profitable and creative and thus people choose to become an entrepreneur and not just a small business owner.
Cunningham, S.A. (2005). Introduction to Management Principals. Wellington: DLTT Publications Ltd.
Henrekson, M. & Jakobsson, U. (2000). Where Schumpeter was Nearly Right: The Swedish Model and Capitalism, Socialism and Democracy. NY: Research Institute of Industrial Economics
Hindmoor, A. (2008). Policy Innovation and the Dynamics of Party Competition: A Schumpeterian Account of British Electoral Politics. British Journal of Politics & International Relations, 10(3), 492-508.
Kirzner, I.M. (2007) Must Capitalism Yield to Socialism?. Economic Affairs, 5(3), 35-37.
McCraw, T.K. (2007). Prophet of Innovation: Joseph Schumpeter and Creative Destruction. London: Harvard University Press.
McKee, D.L. (2003). On Schumpeter, Services and Economic Change. American Journal of Economics and Sociology, 49(3), 297-306.