ENTREPRENURSHIP CAPITAL & THE FIRM - Essay Example

The major activities of an entrepreneur generally depends upon three components which include bearing risks, introducing innovative technologies and creating new products or services The main function of an entrepreneur is to form new solutions by recognising opportunities for attaining considerable profits. The common features of an entrepreneur are identifying business opportunities, adopting as well as implementing effective business strategies, creating interrelation with the employees and utilising valuable resources (Havinal 95-101).

An entrepreneur is typically viewed to be the owner of the business whose prime intention is to accomplish desired business objectives. An entrepreneur is required to acquire adequate knowledge as well as skills relating to the analysis of business markets for the success of the business. A particular entrepreneur is entrusted with the responsibility of performing effective business functions for enhanced business performance and achieving significant competitive position over the chief business market competitors.

Additionally, an entrepreneur must possess specific business traits as well as characteristics to conduct business in an effective manner (Havinal 95-101). Thesis Statement In this discussion, the background of the entrepreneur from childhood to commencement of business will be taken into concern. Moreover, the influencing factors which are responsible for encouraging the entrepreneurs to start up new business and detailed analysis of the subsequent management and development of a new venture will also be portrayed in the discussion.

Background of the Entrepreneur The background of an entrepreneur is recognised to be an essential factor for influencing an individual to start up a new business. The varied experiences which are acquired by an individual from childhood are responsible for the development of entrepreneurial qualities. There are certain factors which require paying much attention for commencing a new business by taking into concern the traits that experiences by an entrepreneur from childhood as well as family background.

In this similar context, an entrepreneur as a child should obtain the knowledge as well as the experiences from his/her parents who conduct business for survival. It has been apparently observed that the self-employed parents perform significant role in developing entrepreneurial behaviour as well as attitudes towards a child (Lancaster University, “Family Business Background, Perceptions of Barriers and Entrepreneurial Intentions in Cyprus”). According to Krueger (1993), the conduct of family business can be regarded as an important as well as influencing factor for acquiring perceived qualities as well as beliefs to commence a new business.

The availability of capital required for starting up a business is an important determinant which influences an individual to become a successful entrepreneur.