Archive for November, 2011
Entrepreneurs can improve performance and achieve a competitive advantage with the attainment of a higher educational level and by gaining entrepreneurial experience. Although culture plays a role in the entrepreneurial orientation, religion has little influence on an entrepreneur’s ability to improve his or her orientation (Altinay & Wang, 2011).
Entrepreneurs use knowledge gained from their education and experience. Education causes entrepreneurs to think creatively, maintain flexibility, and respond appropriately to problems. Education improves the entrepreneurs ability to deal with risk. Business experience contributes to the entrepreneurs skills in using information to respond to customer needs. An entrepreneur with experience has a better understanding of how to run the business (Altinay & Wang, 2011).
How can an entrepreneur gain an education and experience, while pursuing opportunities? Click here.
Altinay, L., & Wang, C. L. (2011). The influence of entrepreneur’s socio-cultural characteristics on the entrpreneurial orientation of small firms. Journal of Small Business and Enterprise Development, 18(4), 673-694. doi: 10.1108/14626001111179749.
Society values entrepreneurs as innovators who solve problems. Anyone thinking of entering into a venture to solve problems should consider his or her ability to innovate. Liedtka (2011) performed a case study and determined entrepreneurs wanting to innovate must have an ability to face uncertain conditions and experiment with small trials to deal with new experiences. An entrepreneur must step away from established procedures designed to deal with known conditions and experiment in unknown territory. Lietka revealed an entrepreneur must have a deep empathy for people to satisfy their needs and find solutions to problems they experience. Unlike established firms desiring to exploit existing markets, the innovative entrepreneur puts people first. An entrepreneur has to have the ability to make mistakes and learn from them because solutions to unresolved problems lack a history. Making mistakes is part of the entrepreneurial mindset.
Although entrepreneurs have a mindset attuned to making mistakes, they deal with them by using small experiments to minimize risks. Small mistakes are part of learning, but entrepreneurs avoid larger mistakes by taking small steps. Are you up to the challenge?
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Liedtka, J. (2011). Learning to use design thinking tools for successful innovation. Strategy & Leadership, 39(5), 13-19. doi: 10.1108/10878571111161480
The success of the entrepreneur relies not only on traits but on cognitive behavior. Tipu and Arain (2011) undertook a case study to develop success factors emerging from entrepreneurial behavior. Entrepreneurs must think and take the right actions to improve their ability to succeed.
Among the behaviors identified in the case study, the most significant success factors developed include startup planning, managing risk, learning, managing human resources, finance, and networking. Entrepreneurs work in an unfavorable setting and improve their ability to succeed by their ability to use these factors. What entrepreneurs think and do does make a difference (Tipu & Arain, 2011).
Entrepreneurs can manage their success through their behaviors. An understanding of these success factors can guide the entrepreneur in launching a new venture.
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Tipu, S. A. A., & Arain, F. M. (2011). Managing success factors in entrepreneurial ventures: a behavioral approach. International Journal of Entrepreneurial Behaviour & Research, 17(5), 534-560. doi: 10.1108/13552551111158844
Much of the economic literature on entrepreneurship supports the broad benefits of entrepreneurship on economic growth and job creation. However, not all entrepreneurs contribute equally to these economic benefits. The primary driver of good entrepreneurship is innovation and creativity. Bad entrepreneurship arises largely from firms’ inability to apply innovation to the market and convert these innovations in the right places to fit the market. Hence, experience and knowledge is imperative to produce more good entrepreneurs and less bad entrepreneurs who cannot find a fit with gaps in the market. Successful entrepreneurship creates competitive advantage. Countries need more good entrepreneurship to produce economic growth and create jobs (Anderson, 2011). Entrepreneurs can benefit from learning from successful entrepreneurs and gain experience how to convert innovations into successful market applications.
Baumol (1990) showed the success of the Chinese in the eigthteenth century emerged because of creating the right climate for innovation, but the West surpassed the Chinese because of its ability apply the innovations to the market. Combining innovative capabilities with the ability to apply innovations in the market decreases the high failure rate of entrepreneurs (Anderson, 2011).
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Anderson, A. R. (2011). The university’s role in developing Chinese entrepreneurship. Journal of Chinese Entrepreneurship, 3(3), 175-184. doi: 10.1108/1756139111166957
Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of Political Economy, 98(5), 893-921. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9103252727&site=bsi-live