Risk, Rewards and Motives Contribution to an Entrepreneurs Goals - Essay Example

?Extent to Which Risk, Rewards and Motives Contribute Towards an Entrepreneurs Goals Introduction Risks, profits, innovations, and change are some ofthe key words that can be identified when referring to an entrepreneur. Entrepreneurs are found to take risks, initiate change and innovate new ways of conducting business, thus creating numerous opportunities for profit making. The goal of venturing into entrepreneurship is usually to make profits and seek adventure. There are very many entrepreneurs in the world but a few of them stand out among the rest (Surridge and Gillespie, 2011). One recognisable entrepreneur associated with a very successful brand is Sir Richard Charles Nicholas Branson. Since the 1970’s, he has founded his own company, Virgin Group, risen to fame with his unconventional entrepreneurial styles making him one of the richest person in the United Kingdom. His success is thought to lie in taking risks, bold leadership, motivating his employees, coming up with innovative ideas, and adaptation of a great business model. Risks When entrepreneurs start new business ventures, they feel the urge to do things quite differently from others so as to capture customers, lower production costs or even venture into new markets. These new procedures entail taking new risks. However, entrepreneurs take calculated risks, which are motivated by extensive research or utilisation of relevant information. Even with research and information, entrepreneurs keep in mind that not everything can move smoothly but in order to ascertain that some risks have to be taken. Entrepreneurs walk away from a path of security and venture into new paths with high level of uncertainty, which translate into new risks. New forms of stress arise, some opportunities seem to be miscalculated and resources may be overstretched but this is all in the hopes of making profits as an entrepreneur engages in a new business venture (Hall, 2008). Many people think that taking risks is being reckless but this is not the same perceptions that entrepreneurs possess. Risks are seen as positive challenges for entrepreneurs and they help them overcome obstacles in their path of success. Risk taking is part of the business and proper risk approach and management can lead to a successful business venture. Once entrepreneurs spot new economic or cultural trends, they see new entrepreneurial opportunities, which mean new risks. It is important to come up with new innovations that give competitive advantage against the competitors. This means that new formulas have to be invented and implemented, therefore, translating to risks. The rewards are always worth the risks as they tend to be greater than when one is using conventional ways (Hall, 2008). Sir Richard Branson insists that an entrepreneur and the team should take calculated risks, which are supported by strategic judgements. An entrepreneur should not engage in blind gambles but should always compute the likelihood of succeeding by calculating potential consequence and profits. Branson started off with Virgin Records with the little money he had saved after working on school magazine. He had to a risk in order to venture into the unfamiliar business of music. However, he was keen on establishing a business that would complement his passion for adventure and entertainment (Branson, 2013). He previously worked with a magazine so a recording business was complementing his previous idea. He took the risk of working for free in order to sign great artists and even signed a controversial band called the Sex Pistols, which had been released by a bigger label for their absurd off-stage personalities. Branson decided to work with them when he realised that they had talent and he could use their controversy as a spring board to gain his label some spotlight in the crowded music industry. Taking this risk proved significant as it earned the label fame and recognition as a leading recording company in London. He then took the risk of venturing into the airline business, which paid handsomely (Branson, 2013). Rewards Entrepreneurs have found out that employees need rewards in order to work vigorously towards the goals of the business. When the employees work harder, the profits increase for the business owner. Therefore, rewarding employees is an important and strategic move to implement in order to increase the profits. Employees can be rewarded through various ways for example, financial rewards, in an effort to retain, attract, and motivate them. To motivate the employees’ performance fiscal rewards are crucial but some studies show that there are other factors like promotions, which are better motivators especially at higher levels(Surridge and Gillespie, 2011). Small businesses have also introduced rewards in an effort to entice top employees and increase performance, hence increasing profits. Identifying business goals, behaviours and performance that need to be achieved is an important element in deciding and measuring the type of rewards to be provided (Hall, 2008). Employees can be motivated through luncheons, variable pays, banquets profit sharing, plaques, bonuses, stock options, gift certificates, and recognition events such as dinners. Branson holds event for his employees, which are meant to appreciate their performance and motivate them into working harder. He is known for taking the best employees for retreats in the Caribbean islands and this serves to appreciate them while motivating the rest. Besides the retreats, he also uses pay increments and bonuses for the employees who indicate excellent performance (Branson, 2013). Motivations Employees need motivators in the work place in order to initiate action towards the desired goals. The best way to motivate the employees is by being a strong influence upon them. When the entrepreneur seems to be hard working and smart, the employees will strive to work smart and work hard. Showing dedication into the business motivates the employees as well as the entrepreneur and with the rewards that come from working hard, the two are motivated to maintain the pace (Hall, 2008). The most difficult stage of the business venture is usually at the beginning when the entrepreneur is striving to lift the venture off the ground. After this crucial stage, it is easier to motivate the employees since there are available resources to conduct this exercise. An entrepreneur can use professional talks and debates among other motivators. Sir Richard Branson motivates his employees by engaging them in ideas that they are passionate about and allowing them to work in the departments where one feels most talented. Branson usually addresses issues by holding talks with his employees. He encourages them to brainstorm and debate about certain issues and come up with new ideas that will help them engage well in the proceedings of his company. Through this method he was able to come up with the idea of creating sustainable environment safe for the masses. Most of his employees are oriented towards a more eco-friendly environment, therefore, making Branson work towards motivating their goals (Branson, 2013). He also motivates the employees through his philanthropic activities geared towards fighting illnesses, climate change and poverty. His employees realise that they are working towards improving the quality of life of other unfortunate men and creating a better place for them, thus working hard to bring positive change. He takes his employees for professional talks and sometimes invites guest speakers into the office, thus motivating the employees. He also challenges the employees by coming up with new innovations and ideas that he needs implemented in a short time, thus enabling them to come up with new ideas (Branson, 2013). References Branson, R. (2013) Richard Branson on self-motivation, Entrepreneur, viewed November 21, 2013, from . Hall, D. (2008) Business studies A level AQA (4th ed.). Harlow, Pearson Education. Surridge, M. & Gillespie, A. (2011) Business studies for AS AQA, London, Hodder Education. Read More