Understanding the Entrepreneurial Mind and Entrepreneurial Process - Essay Example

?The Entrepreneurial Process There are numerous theories that seek to explain entrepreneurial process. What is clear for many scholars and economistsis that the process involves identifiable stages. For example, Acs and Audretsch (2010, pp.234) suggested that it is not unlike the scientific process of conjecture and refutation wherein beginning is a discovery of opportunity: The discovery is like the scientist's conjecture.. The entrepreneur tests the conjecture by, say, conducting market research or talking to a trusted advisor... The entrepreneur will apply what he learns to modify the original business conception. There are other explanations that have similar thread and they all cite a logical procedure by which entrepreneurship and enterprise emerges and flourishes. This paper will argue in favor of some of these theories but also posit how two important variables are critical in the entrepreneurial development: in addition to the environment by which the process operates in, there is the fundamental element of the person, the entrepreneur. The idea is that the process begins with people who have the aptitude, skills, preference and desire to establish a business. What this means is that the process goes far beyond a simple discovery of opportunity. It is rooted on the motivations and desires of individuals, this is what drives people to become entrepreneur and be effective and successful in pursuing their entrepreneurial objectives. These variables are best depicted in the experience of Shane Eten and his FEED Resource Project wherein he aimed to build an anaerobic digester and make money in the process. Before Eten became an innovator and an entrepreneur, selling his business plan for grants then to venture capitalists, he was first a student and an employee. Together with his upbringing, these stages in his life cultivated a character that is typified by restlessness, ambition and vision. Without these factors, Eten would not have the capability to discover opportunities. His personal preferences, behavior and abilities as influenced by his environment as he grew up into adult life, were responsible for the motivations, acumen and decision-making capabilities. For example, Eten liked his work at the startup company Angstrom Micro Systems because his job was never the same day-to-day. At the apex of this aspect is the question why there are people who start businesses as opposed to those who want to work for others. The dominant theory explains that there are those who are more inclined to become entrepreneurs either because of their work temperament, character and skills. The theoretical literature is not short on evidences supporting this view. For instance, according to Carsrud and Brannback (2009, pp.143), "not everyone fits into the role of an employee working for another person within an organization," because, "some decide to blaze their own trail through the business world." In similar vein, Kuratko and Hodgetts (2008, pp.44) theorized that the role of the individual is important, particularly his or her psychological profile because this individual is the energizer of the entrepreneurial process. The aptitude that is dependent on individual characteristics has been highlighted by Morris, Kuratko and Covin (2010, pp.180) who explained that an entrepreneur must be creative to design solutions for challenges and obstacles entailed in the entrepreneurial process. Eten demonstrated these various attributes. He loved working for the highly dynamic IT company. Afterwards, he was forced to adapt to the negative developments in his career. Then, finally, he was able to spot an opportunity to establish his own business and worked for its realization. Now, after the focus on the human agency perspective, there is also the case of the entrepreneurial process, which highlights the part played by the environment. In the experience of Shane Eten, this is demonstrated in highly structured procedures by which his ideas were turned into reality. First, he applied for grants and his business proposals were favorably received. Then, he sought out venture capitalists, when he realized that the grants were not enough to bankroll his anaerobic digester. Afterwards, he formed his own team so that he would be able to deliver the requirements of the capitalists investing in realizing his enterprise. It is clear how there is a linear structure to the process by which entrepreneurs discover opportunities and solve challenges. Other variables also come into play. For instance, there is the case of education and networking as well as institutional tools that allow entrepreneurs to create, modify and improve on their ideas. Education allows entrepreneurs to identify opportunities and also draft successful business plans. This is important because these two concepts are different from each other. The theory is that ideas may be considered entrepreneurial trash or simply commonplace as they could abound like the sand on the beach. Business opportunities, on the other hand, are much more important since it could satisfy existing customer needs (Hess and Goetz, 2008, pp.10). So education and skills enable entrepreneur to successfully filter the ideas that are not economically feasible from the opportunities that could deliver profit. After working, Eten, went back to school, where he began his attempt to launch his own business. At school, he was able to do intensive research and, finally, identify his area of business interest, which was in the CleanTech industry. Then, through networking, he was able to identify institutions and organizations who were able to give him grants for his business plan. His network was also able to provide him with opportunities available among venture capitalists. This particular networking variable is important in the business process. First, the said process is considered to be about the economic as well as social value creation; and, secondly, it is an emergent and ongoing process that entails business opportunities constantly and managing the process of growth (Karatas-Ozkan and Chell, 2010, pp.30). Networking solved, for Eten, the dilemma of launching his business successfully. Along the way, he realized that he cannot do everything alone: he needed financial resources from venture capitalists and he needed the manpower to implement his vision. It is clear, as depicted in Shane Eten’s experience that launching one’s own business may not be for everyone. This is the reason why there are people who fail and who succeed in their business ventures. Individual motivation, drive and even optimism figure prominently here. An entrepreneur must, first, have the temperament, character and skills. Entrepreneurship calls for creativity, boldness, patience and vision. This is because the entrepreneurial process involves tasks that require leadership, innovation, ability to adapt to the dynamism and fluidity of the business landscape. References Acs, Z. and Audretsch, D., 2010. Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction. Berlin: Springer. Carsrud, A. and Brannback, M., 2009. Understanding the Entrepreneurial Mind: Opening the Black Box. Berlin: Springer. Hess, E. and Goetz, C., 2008. So, You Want to Start a Business?: 8 Steps to Take Before Making the Leap. Upper Saddle, NJ: FT Press. Karatas-Ozkan, M. and Chell, E., 2010. Nascent Entrepreneurship and Learning. Cheltenham: Edward Elgar Publishing. Kuratko, D. and Hodgetts, R., 2008. Entrepreneurship: Theory, Process, Practice. New York: Cengage Learning. Morris, M., Kuratko, D. and Covin, J., 2010. Corporate Entrepreneurship & Innovation. New York: Cengage Learning. Read More