Archive for October, 2011
The global economy brings many changes to the competitive landscape and influences the approach taken by seasoned entrepreneurs. Entrepreneurs must take a more relational approach to succeed in tough times to deal with different countries’ business practices and to tap into global markets and supply chains. In the past, firms developed more intrinsic approaches to strategic management considering mostly domestic concerns. Some approaches considered industry positioning and others consider resource-based approaches. The new approach relies more on inter-firm relationships and integrating cooperative inter-firm strategies (Hin, Isa, & Hee, 2011).
A firm must consider new ways to compete and handle economic conditions. An integrated approach offers the entrepreneur the adroitness of dealing with unstable economic conditions by relying on inter-firm capabilities and resources (Hin, Isa, & Hee, 2011).
Want to know more? Click here.
Hin, C. W., Isa, F. M., & Hee, H. O. E. C. (2011). Globalization and application of strategic management model and theories to entrepreneurs in a turbulent economy. China-USA Business Review, 10(6), 429-437. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=64372098=ehost-live
No doubt the Chinese’s success in entrepreneurship has fueled the growth of its economic system. A recent article explains how Chinese students learned through the Timmons model by creating student free enterprise teams to learn about and build skills in leadership, creative development of resources through business networks, and balancing the acquisition of resources to develop opportunities (Fan-qi, Xiang-zhi, & Li, 2011). Education plays a key role in entrepreneurial development and helps entrepreneurs achieve success.
However, this study shows entrepreneurial education is both similar and different from traditional educational programs. Traditional educational programs rely less on teams and building business networks. Traditional programs may overly focus on planning or not enough on interpersonal and social relationships. Moreover, traditional programs do little to focus on overcoming uncertainties by creative development of supporting resources.
Want to know more? Click here.
Fan-qi, Z., Xiang-zhi, B., & Li, S. (2011). Study on entrepreneurial process model for SIFE student team based on Timmons model. Journal of Chinese Entrepreneurship, 3(3), 204-214. doi: 10.1108/17561391111166984
Many firms entering the market have done so through global networking, which allows the firms to develop the skills and knowledge needed to become a “born global” firm. As a firm learns more about a specific global market the firm becomes more willing to commit resources and expand business. Networking is the glue that brings entrepreneurial firms together with global partners. As a firm builds networking relationships it grows and becomes more pro-active in its dealing with its network partners (Svante, 2011).
Less market research and planning is necessary as a result of these activities because the entrepreneur learns from its relationships and the knowledge gained in networking activities. An entrepreneur wishing to go global should find it imperative to embark on networking activities. By doing so from the start, a firm is more likely to find success (Svante, 2011).
Want to know more? Click here.
Svante, A. (2011). International entrepreneurship, born globals and the theory of effectuation. Journal of Small Business and Enterprise Development, 18(3), 627-642. doi:10.1108/14626001111155745
The Chinese became successful at starting new businesses because they desired to run a business of their own and maintained a self-reliant attitude. The Chinese abhorred borrowing from banks because banks treated them poorly by demeaning them. The Chinese came to the conclusion that banks only work for big businesses. The Chinese took it upon themselves to manage their own needs by minimizing costs to run their businesses. Similarly, the Chinese used their own income to get started or saved from a spouse’s earnings to start the businesses they desired. The Chinese did not trust government and banks to help them. Instead, the Chinese became resourceful using bootstrapping and their own finances to get started (Wing, 2009).
Sound familiar? The United States once worked this same way to build the number one economy in the world. Anyone who wants to work for themself can. The founder of a new business must use his or her own resourcefulness to get off the ground and build a successful business. Want to learn more? Click here.
Wing, L. (2009). Funding gap, what funding gap? Financial bootstrapping: Supply, demand and creation of entrepreneurial finance. International Journal of Entrepreneurial Behaviour & Research, 16(4), 268-295. doi: 10.1108/13552551011054480
A perfect time never exists to start a business. Today people think about poor economic conditions and the difficulty involved in finding capital. A good entrepreneur who has a passion for pursuing his or her ideas and will not let anything get in the way. The truth is the United States needs entrepreneurs because they are the engine for new jobs and economic growth.
Another good reason the country needs entrepreneurs is because the economic collapse has tarnished the reputation of business leaders. People see many existing business leaders as greedy and self-serving. People have lost trust in them. Entrpreneurship is a way to reinvent the good business leader who people can trust and respect. Reinventing this type of leader will promote business growth and remove skeptism by employees about working for people that only care about themselves.
Is there a risk? Of course, but without taking a risk a person has no chance of starting a business. Want to know more? Click here.
Entrepreneurs have the DNA to experiment and, in the process, innovate new ideas. The conditions are right for entrepreneurs to do experiment because their survival depends on it. Stop trying new things and the business will fail. The entrepreneur DNA must cope with failure, but move on to the next trial and try again to succeed. Large companies most people go to work for do not have the word failure in their vocabulary. The boss tells them what they must do and they do it. If these people do what the boss says this makes them a success, but is it really?
If accomplishing what a boss tells a person is success and that person wants to hear this repeatedly he or she should go to work for a big company. On the other hand, if a person wants to learn from his or her failures to create something new and exciting that person has the DNA of an entrepreneur. A good entrepreneur looks at failure as another step toward success.
Yes, I am sure everyone has heard this saying before, but it is true. A good entrepreneur does not settle for the small achievements the boss tells a person he or she has made. The entrepreneur wants more and realizes it takes more to create truly good achievements.
Do you want the pat on the back from your boss or do want to make truly great achievement?
Learn more? Click here.