The Connection between the Enterprise, Entrepreneurship and Intrapreneurship - Essay Example

Enterprise and Entrepreneurs New Business Idea 1603 words Table of Contents 1.0. Introduction 03 2.0. Definition of Enterprise, Entrepreneurship and Intrapreneurship 03 3.0. Skills, Attributes and Behaviours 04 4.0. Importance of Enterprise, Entrepreneurship and Small Business 06 5.0. Evaluation of New Business Plan 07 6.0. Common Misconceptions 08 7.0. Summary and Recommendations 08 8.0. References 10 1.0. Introduction Entrepreneurs and proper entrepreneurship is very much needed in this era of business world where the level of competition is very intense and so they help in setting up new business through new ideas and taking financial risks with the hope of profit making. With their skills and attributes they are very much in control and shall surely enhance the business of the enterprise, whether it is a small or a big one. This assignment discusses the same as with throwing light upon the connection between the enterprise, entrepreneurship and Intrapreneurship for an organisation. The basic attributes and qualities like communication, planning, leadership and marketing skills which help in adding importance of the entrepreneur for a business is also detailed. The common misconception of entrepreneurs being born and not made has been very tactfully argued through the use of an example and also discussed regarding the steps involved in starting a new business idea. 2.0. Definition of Enterprise, Entrepreneurship and Intrapreneurship The three terms enterprise, entrepreneurship and intrapreneurship are all interconnected and associated with any business or organisation. All these three terms are defined distinctly in their own respect. Enterprise is a business or a company which is involved in activity which is associated by initiative and resourcefulness. It involves many people and keeps the ability to deal with difficult things and find possible solution for the same. A business enterprise generally operates to provide goods and services relating to financial and commercial matters and also earning profit from the same (Amo and Kolvereid, 2005). Example of an enterprise can be both public and private like the post office and Global Diagnostics. The capacity and willingness of an individual to develop and organise an idea and manage the business venture, along with the risks and making profits out of it is known as entrepreneurship. An entrepreneur is best explained as an innovator of new products, new production methods, mew markets or new forms of organisation. It is the journey of opportunity exploration and risk management creation of value for profit or social good. The most obvious example of entrepreneurship is starting of a new business. A classic example of entrepreneur is the founders of Adobe, John Warnock and Charles Geschke, the company having an annual turnover of over $3 billion. Intrapreneurship is the practice of entrepreneurship by the employees of an organisation and within the organisation. Derived from the terms internal and entrepreneurship clearly states the meaning that it carries. Intraprenuers are highly self-motivated, proactive and action-oriented people who are willing and comfortable to take initiatives in pursuit of new products and services (Molina and Callahan, 2009). Unlike an entrepreneur, an intraprenuer shall continue to receive salary even if the product fails to make itself to production. Example of intraprenuer is “Skunk Works” grouped at Lockheed Martin. 3.0. Skills, Attributes and Behaviours Skills that an entrepreneur must possess are as follows: Communication: It is required to have the ability to explain, discuss, sell and market goods and services by an entrepreneur. He should be able to sell ideas and persuade others (Brooks, 2015). Ability to Plan: Development of a business idea to meet the goals in various areas including finance, marketing, production, sales and personnel are foremost required. Marketing Skills: Efficient and effective marketing skills may result in people wanting to buy goods and services which are critical for entrepreneurial success. Interpersonal Skills: This is the ability to establish and maintain good positive relationship with the customers, clients, employees, financial lenders, investors, lawyers and accountants for the success of entrepreneur’s business venture. Basic Management and leadership Skills: An entrepreneur needs to know the basic day-to-day management to deal with the affairs of the business. With the leadership skills they can develop vision for the company and inspire employees to pursue their job. Many top business leaders have earned success through such skills of entrepreneurship like Henry Ford, Walt Disney, etc. Some of the key skills, attributes and behaviours of an entrepreneur are as per the table below. SKILLS ATTRIBUTES BEHAVIOURS Intuitive decision making with limited information. Sense of self belief. Seek and take opportunities. Capability to cope with uncertainty and complexity. Strong sense of independence. Initiative taking. Developing know-how and trust relationships. Goal oriented. Build and develops networks. Creative approach towards problem solving. Building of own know-how and trust relationships. Assess and takes risk. Capacity to negotiate. Commitment to see things through. Holistic management of situations. Selling/ persuasive capacity. Sense of ownership over problems and actions. Strategic thinking. 4.0. Importance of Enterprise, Entrepreneurship and Small Business In context to the wider economy Enterprise, entrepreneurship and small business have a crucial role in the economic recovery in the current economic climate. Enterprise and entrepreneurship are related and so are small business and entrepreneurship. Entrepreneurship activities take place in both the small and big business, at its own scale and both contribute towards the economic welfare on a whole. These factors help in absorbing resources and workers from the market and help in creation of labour market situation (Thurik and Wennekers, 2004). Business enterprises and small business indulge entrepreneurs to run their business and their target is profit maximisation keeping in mind the welfare regarding both social and economic factors. The growth in business of large and small firms in various continents of European and other countries of the world have led towards adoption of corporate decision-making practices based upon stakeholders rights, fostered more co-operative labour relations and make more resistant to take-overs which directly or indirectly are important in context of the wider and global economy. Entrepreneurship is very closely related with knowledge and flexibility and has gained new significance as a source of competitiveness in the rising globalised world economy. In context of an individual or team The correct values and principles of enterprise, entrepreneurship and small business affects the individual or teams in regard of their ability to perform as is brings in them a motivation factor to work in a systematic and channelled process established under correct entrepreneurship. The individuals or the teams are the ultimate performers and any policy that affects the working of them shall affect the organisation or the enterprise. The importance of the three factors are very high for an individual or team as it directly affects the work culture and brings them under the work ethics to perform better. 5.0. Evaluation of New Business Plan The evaluation process of a new business plan involves taking into consideration some basic steps for successful formulation and running of the business. Step 1 is the evaluation of new concept and it should be very concise and not just a summary of a business plan. This stage allows the entrepreneur to discover and address any flaws in the business plan before proceeding with the same. Step 2 requires evaluating the market opportunity with the use of models like SWOT and PESTEL to understand the competitiveness and the opportunities of the market for a success and steady growth in the future. The SWOT helps to understand the strengths, weakness, opportunities and threats of the market with a very clear idea of the same. Step 3 should examine the company strategy for capturing the market and examining the alignment between the problems and solutions. Step 4 needs to understand the business environment with reference to the Porter’s Five Force Model and other well-established tools. Also implementing a market mix shall help in understanding the 4 P’s of the market scenario. Step 5 ensures that the financial projections are both promising and realistic. Assessing funds with the best investors and capitalists is very necessary. Step 6 requires investigation of the returns provided by the investment. Step 7 evaluates the business plan as a whole document and a reflection of a real world company. The final evaluation helps in determining whether the company have any chance of success or not. 6.0. Common Misconceptions Many believe that entrepreneurs are born, which is true for many people, but this does not brings the argument to an end that those who are not born with the skills or desires cannot turn out to be entrepreneurs. There is a very strong reasoning for believing in the fact that great entrepreneurs are made through nurture and not nature. A generally held theory is that entrepreneurs emerge from the population on demand, from the combination of opportunities and people well-positioned to take fair advantage of them. Some strong arguments regarding the common misconception can be made very clear with the real life experience of Kendra Scott who created a multimillion-dollar jewellery empire of 20 stores and still counting form just an extra bedroom. Her entrepreneurial career begun in 2002, from a spare bedroom after giving birth to a baby, when she withdrew $500 and started making earrings from the materials she bought. She previously was indulged in making gifs and jewellery for friends but they were not so expensive and trendy. Her urge to fill the gap made her discover ideas and turn them into business with a lot of hard work and struggle to achieve glory of success in future (Entis, 2015). This is a very big example of proving how an entrepreneur was not born but made. 7.0. Summary and Recommendations Any business without any solid planning is very much likely to taste failure in future which makes the role of an entrepreneur that much more important for the enterprise. Making good use of the resources at hand and seeking for the right opportunity available is the art of the entrepreneur. Some recommendations in the process of business planning and running are like initiating programs that help in identification of strategies that have more probability for success. Further customer oriented growth strategies are also recommended for implementation. 8.0. References Amo, B. W. and Kolvereid, L. 2005. “Organizational strategy, individual personality and innovation behavior” Journal of Enterprising Culture, 13(1), pp. 7-19. Brooks, C. 2015. What is Entrpreneurship? Busniess News Daily. Retrieved on 16-04-2015 http://www.businessnewsdaily.com/2642-entrepreneurship.html Entis, L. 2015. Grow Your Business. From an Extra Bedroom to 20 Stores and Counting: How Kendra Scott Created a Multimillion-Dollar Jewelry Empire. Retrieved on 17-04-2015 http://www.entrepreneur.com/article/244921 Molina, C. and Callahan, J. L. 2009. “Fostering organizational performance. The role of learning and Intrapreneurship.” Journal of European Industrial Training, 33(5), pp. 388-400. Thurik, A.R. and Wennekers, A.R.M. 2004. Entrepreneurship, small business and economic growth, Journal of Small Business and Enterprise Development Read More