Qualities to Become Successful Entrepreneur for Individuals
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Introduction To Managing Human Capital And Entrepreneurship
Entrepreneurship is an economic activity that includes in operation and creation of an enterprise with a view to create value or wealth that helps in to ensure optimum utilization of scare resources. Since the creation of value creation business is being performed in a consistent manner and undertake uncertain activities so that dynamic forces can be managed (Park and et. al., 2012). It is a scarce human attribute that includes precise talent, corporate capacity, involves in sprit and attributes to manage risk that is found within an individual.
The main essence of entrepreneurship is the capability to assume risk as a developing factor and implements in novel business ideas. New ideas are always tentative in a business and it probably gives results in a positive form (Iversen and et. al., 2008). Entrepreneurship includes in a regular search of novel ideas and it compels an individual to regularly assess the existing mode of business operations and adopt an effective system and is continuous effort for synergy in an organization. Here, in this report a deep assessment has been made to understand the attributes of entrepreneurship and its significance in today’s competitive business environment. The report analyze major functions like characteristics and qualities an individual requires to become a successful entrepreneur and benefits of High self-efficacy in entrepreneurship.
Entrepreneur is the one who prepares in advance for uncertainties and face challenges in the most suitable as well as profitable manner. This leads him to have a strong base that helps throughout the journey of initiation of business idea leading it till the success. The uncertainties make an entrepreneur utilize effectively all the attributes and qualities to achieve desired outcomes throughout all the efforts (Nandan, 2013).
TASK 1: Literature Review
Entrepreneurship is a heterogeneous attribute of production that includes business effectiveness, managing skills, and capability to undertake risk, talents and innovating capacities that help in to vary from every entrepreneur. Its nature varies in different forms and helps in to undertake business partnership, Joint Stock Company, public undertaking and cooperatives. In modern business era entrepreneur is an important attributes that helps in to undertake production and arrange products and services by managing activities in a range of manner (Acs and Stough, 2008). It is considered as a main driving factor in an economy as it assists in to manage wealth and a high majority of jobs that is being created by small business units to create a bigger corporation.
Diverse people exposed to entrepreneurship ultimately express in more opportunities to accomplish creativity, increased self esteem with an overall increased sense of control among the lives of people. The biggest significance of entrepreneurship exists in the fact that assists in to assess and develop managerial abilities within an entrepreneur. An entrepreneur is one who studies in issues, analyzes the alternatives and compares in with options in terms of cost and benefit implications so that best option can be evaluated.
Important attributes in entrepreneurship
Being an entrepreneur there is a need of much big ideas and a true entrepreneur is one who possess versatile skills with a blend of traits and attributes that helps them to manage the odds and acquire their long term vision. For an entrepreneur to be optimistic they actually require a belief to analyze the way business goals can be achieved and in turn needs a vision. It is one of the attribute that helps in to articulate the needs because mostly entrepreneurs cannot work alone and requires support in a range of form (Hisrich, 2011). There are some specific attributes that every entrepreneur needs as stated below;
Self awareness – It is the means that helps an individual to clearly understand and have a knowledge about their skills as well as their limitations. It helps a people to manage and have the ability to willingly work with others, to listen with others and enhance their vision with respect to light and mange discussions. Self awareness helps an entrepreneur to couple with the actual need to work with people that aids in to comprehend and are committed to lead for vision far less than any hierarchical structure (Chell and Ozken, 2010). In this respect entrepreneurs are mostly interested to achieve their vision and are more inclined to acquire success in the product and process to manage the business card.
Innovative – An individual accomplishing entrepreneurship need to innovative and differentiate oneself from others so that success can be acquired. It is being analyzed in a range of ways and it helps in to offer any product or service with novel variations on existing goods. Being innovative entrepreneur an individual can become an iconic brand and provide customers a unique experience.
Ability to manage people and money – An entrepreneur need to possess in best idea in the global world so that he or she can acquire success in business and develop an idea in a profitable manner to actually undertake a business (Nelson and Devi, 2013). In this respect it is crucial to understand about the practicalities of managing business and hire employees in order to motivate workforce and manage business.
Self-efficacy – Initiating a new venture requires unique mindsets and skills, which may be far distinct from those required for employers or managers in fully established organizations. These mindsets and skills can be found in a successful entrepreneur who may sustain more effort through the process of entrepreneurship to attain positive outcomes (Knutson, 2014).
Highly developed intuition – Most of the entrepreneurs rely more on gut feelings in order to make decisions. Even though they are highly analytical and like to gather lots of data, their most decisions are usually based on what they feel is right.
All the above attributes can be found in a successful entrepreneur and these attributes are highly required to successfully initiate and run a business and sustain for longer. They help entrepreneur take risks and move along innovative paths that they have selected using their gut feelings. Due to this, they are also a successful business manager in one manner who can manage all aspects of business in the most profitable manner (Skogen and Sjovoll, 2010). This is how they are called as exceptional leaders who possess high self-confidence and self-belief to face any challenge positively and with suitable planning.
Individual Quality Needs to become an Entrepreneur
Discipline and Work Ethic – An individual needs to sharpen his/her work ethics as well as discipline which will lead to sound time management skills within the individual. Work ethic is required to practice things that are ethically sound and appropriate for success. This will help in developing qualities of entrepreneurship effectively (Miranda, n.d).
Frugal Business Spending – An individual needs to learn to spend money frugally for both personal as well as business use. In case of failure, the individual may not have to face depression if the money spent on business is low as compared to high initial spending for effective running of business (Bhargava, 2008).
Openness – The individual needs to open up to new ideas and thoughts and this will help in acquiring a different perception towards things or events happening around. This is how successful entrepreneurs generate new concepts or ideas to put them successfully into business. In this way, individual may develop quality of acquiring a number of ideas at a time which can be put into practice in order to diversify and reduce risk.
Sense of Urgency – An individual needs to have a sense of urgency and this is how he/she may become punctual as well as regular and consistent towards certain idea or task which is crucial for successful implementation of business idea. This will also generate self-confidence within the individual and he/she may get to feel relaxed during hard times (Bhargava, 2008).
Motivation to Success – Individual is highly required to look for a number of motivations to success. At least one and the most significant motivation is highly required to be acquired by the individual which will only help him/her stay focused on the right direction along his new idea or concept within the business (Hisrich, 2011).
Knowledgeable – The individual is also required to be knowledgeable from all aspects in order to understand and analyze factors that contribute to the success of business. Individual needs to know economic trends effectively in order to be able to generate sound implications of data gathered to get benefited from the positive aspects of economic trends within the market This can only be possible when the person is knowledgeable (Miranda, n.d).
Mentally and Physically Healthy – Individual needs to be healthy both mentally and physically. This is required because only a healthy state of mind can acquire capability of generating new ideas and these ideas can be implemented personally only when the person is healthy by physical aspect. Thus, being healthy is also required as a quality to become successful entrepreneur (Fieger, 2005).
Ability to Balance Work-Life – An individual is also required to have essential balance within his/her work life and this is necessary because there are certain factors that affect capability to generate and implement ideas relating top business and these factors are associated with poor work-life balance. Thus, the person is also required to have effective work-life balance to become a successful entrepreneur.
All the above qualities are highly required by an individual to become a successful entrepreneur and this is because absence of these qualities may significantly lead to failure of business idea. This must be understood with practical implications of these qualities which also involves understanding of how more than one idea can be implemented so that risk of failure can be diversified and reduced. With the development of such an understanding will automatically lead to injection of these qualities within the individual. Thus, the person initiating as an entrepreneur should not rely on any one aspect of doing business (Fieger, 2005). This is because self-confidence does not mean that the gut feeling of a person will always lead him/her to success. It is therefore said that, analysis of more than one idea must be undertaken so that the individual can incorporate and utilize all these abilities within themselves effectively to become a successful entrepreneur.
TASK 2: Business Plan
Business plan of Unilever will involve considerations of all the revenues and expenses as well as financial projections and these are explained as under:
Calculation of revenue
Revenue can be calculated by multiplying the total number of products sold by the price of one product. This can be shown in the following manner:
Total units of Frozen Oatmeal sold in one month = 3000
Price of 1 Frozen Oatmeal = £50
Revenue of Unilever for one month = 3000*£50 = £150000
Calculation of Expenditure
Calculation of expenditure can be done by considering costs of material and labor that have been required to manufacture frozen oatmeal for customers. For one month, Unilever bears expenditure of labor equals to £10,000 and for that of materials equals to £40,000.
Financial projections may involve Income Statement for Frozen Oatmeal of company which the difference between income and expenditure of the company. This can be explained as under:
Income for a year = £80,000
Expenditure for a year = £50, 000
Thus, Income statement will show profit of £30, 000 when expenditure will be deducted from income for a year. Hence, Unilever gains profit of £30, 000 in a year for the new product frozen oatmeal.
It can be said that entrepreneur often has to take risk and work within challenging environment provided that he possesses all the successful entrepreneurial qualities such as self awareness, innovation, ability to manage money and people, self-efficacy, and highly developed intuition. All these qualities are required to make him and his team prepared to take up challenges and work in well in the most dynamic set of situations in the business environment. External and internal environmental factors vary depending upon the structure and culture of organization. These factors are responsible to bring a number of opportunities to the business and it is the duty of the entrepreneur to identify these opportunities appropriately and eventually exploit them to benefit the business operations.
The individual qualities of the entrepreneur are to be highly developed in order to make him enable of benefitting from them. All these qualities make an individual a successful entrepreneur despite failing a number of chances to success in the industry. Discipline and work ethic are the qualities that bring the most out of an individual and on the basis of which other various qualities can be strengthen and practiced. Work ethic is the quality found in an entrepreneur which is essential for frugal spending in the business and as well as for the motivation to success. Also discipline helps in gaining a sound sense of urgency which is required to keep the business running and for the openness which is required for accepting things as they come one’s way. Through all these, an individual becomes knowledgeable which further makes him mentally as well as physically healthy and this is highly required for the individual to acquire balance between his work and life. In this way, the person can become the most successful entrepreneur of industry.
Acs, J. Z. and Stough, R. R., 2008. Public Policy in an Entrepreneurial Economy: Creating the Conditions for Business Growth. Springer.
Bhargava, S., 2008. Entrepreneurial Management. SAGE Publications India.
Chell, E. and Ozken, K. M., 2010. Nascent Entrepreneurship and Learning. Edward Elgar Publishing.
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