MD4044 Entrepreneurship Theory Practice Assignment Sample
Introduction
Entrepreneur is an individual that is willing to start a new enterprise by selling products and services to earn a high profit margin. They are the ones that have skills related to management of resources, planning strategies that could be used to promote growth and expansion of firms. It has been identified that entrepreneurs have managerial capability that is arranging resources, planning better manners to optimum utilize them, guiding employees in the way tasks must be completed and many more (Ongaro and Ferlie, 2020). This report contained a literature review on entrepreneurial management and their impact on overall growth and performance. Hence, the main purpose of the report is to gather information about the skills, knowledge that entrepreneurs have to manage the business and successfully lead them.
Five (5) core literature on entrepreneurial management
Entrepreneurial management
From the point of view of Coad and Story, (2021), entrepreneurial management is making optimum utilization of innovative and creative abilities, expertise and skills with a motive to start and run new business operations. It lay emphasis on finding alternative methods that could be used by firms to satisfy the wants of customers beyond their expectancy level. It includes all activities starting from initialization, planning, implementing, financial, control and monitoring so that overall end objectives could be achieved in the best possible manner.
Another author Machmud and Ahman, (2019), also support that entrepreneurial management include four main elements such as innovation, organisation, decision making, risk bearer and vision. The entrepreneurs are the ones that always put effort into finding more innovative and creative ideas that could be used by the firm to induce a large number of customers in the firm. Moreover, they also lay efforts on organising and planning things in the best possible manner so that optimum use of resources could be done and maximum value could be delivered to end customers. They are the one that solely responsible for taking all necessary decisions pertaining to the company so that it could earn a high profit margin and market share in an external environment.
Inkon, (2019), Many entrepreneurs such as Bill Gates and others are well known for taking the right decision at the right time that has helped them in achieving higher success in future scenarios. They are also always ready to bear a high amount of risk with a motivation to enjoy a high profit margin in future scenarios. This capability of entrepreneurs leads to growth and expansion of business to maximum extent. Furthermore, Entrepreneurial Management, (2021), they have a strong vision related to what needs to be achieved in future circumstances. They know what all return they will actually get through undertaking steps related to promoting growth.
The author Guan and et. al. (2019), also depicted that the entrepreneur management includes managing all the operation of the company in a well-designed manner so that it could achieve competitive advantages. That is, they are responsible for planning of strategies, to deciding optimum utilisation of opportunities, motivating other individuals to make optimum use of available resources, to have appropriate management structures. Entrepreneurial Management, (2021), It also specified that entrepreneurs are already engaged in a very complex and dynamic process of interrelationship between business strategy and financial management.
Impact of entrepreneurial management on organisational growth and performance
According to Kusa and et. al. (2021), entrepreneurial management has a direct impact on overall performance and productivity of employees that helps in delivering qualitative services to customers. It oversees each and every aspect from recruitment of employees, to planning about what all training, guidance that they need to be provided. So, that they can easily complete the task in the best possible manner and services are offered to customers as per their expectancy level. Value of entrepreneurial management, (2021), Entrepreneur management also focuses on building strong relationships between the employees, by effectively understanding what they actually want and the way it could be satisfied. It also ensures that finance of the company is utilised so that maximum return can be gained in minimum efforts.
As per Raza et. al. (2018), entrepreneurial management contributes to creating a positive and motivating feeling among employees that they are an important part of the organisation. As it ensures that their suggestion is being taken by the company at each level that could be used for the benefits of the firm. It creates a sense of belongingness among them and motivates them to work even harder for growth and expansion of firms in international or national markets. Schein et. al. (2018), Entrepreneur through transparently communicating the overall vision and mission of a company are able to engage employees in the process of operation of the organisation in the best possible manner. They are the one that set objectives or goals of the firm, and plan what all action or development will be taken in the near future. So, sharing this information will lead to employees feeling more superior and a crucial part of the organisation.
Xing et. al. (2018), has also supported that the entrepreneurial management lead in bringing innovation and creativity within the company as it is always motivated to find the best way to complete a task. These influences other team members or subordinates to suggest more best ideas that they could use to achieve the company objectives. They are influenced to work together as a team rather than individually which leads to expansion of the company at a rapid stage. Value of entrepreneurial management, (2021), It is able to manufacture products and services in bulk quantity and able to deliver maximum services to a number of customers to enjoy high profitability. Furthermore, it helps in recruitment and retention of more highly qualified, skilled and talented employees in the firm that are dedicatedly ready to work for the benefits of the company.
In the point of view of Nolan et. al. 2020) entrepreneur management also focuses on making use of new and innovative technologies such as digital media and others to connect and provide necessary services to customers. They planned better ways to connect with customers, make optimum use of available resources and many more. For example: With the context of covid-19, many of the entrepreneur management made the decision to make use of digital media to inform customers about the services. Providing home delivery services and many other key benefits has influenced a large number of individuals to be part of an organisation to enjoy huge profitability.
Kusa and et. al. (2021), has explained that entrepreneur management will engage employees to reduce the overall wastage of products and services. So, that company was able to deliver maximum value to customers. It will help in understanding what all crucial issues face by employees and the way it could be resolved in a better manner. In addition to this, entrepreneur management helps in organising the roles and responsibilities of the process in order to make growth in the company. This is managing skills and abilities in one direction of achieving goals and objectives. Entrepreneur management covers the risk of wastage of resources that increases revenue and sales targets for the company.
On the contrary note, Inkon, (2019), it can be stated that entrepreneurial management is a process that involves the entrepreneur itself but it does not have enough time to manage all resources, listening to the complaints or issues faced by employees. It is quite difficult for a single individual to take all decisions, delegate roles and responsibilities so that the company could easily achieve its desired objectives in a limited time frame. At the same time, due to the lack of time invested by entrepreneurs in management and listening to people, it will lead to confusion and conflict among the employees. They will think that no one is there to take care of them or listen to their issues, queries and grievances.
Five (5) dimensions of entrepreneurial orientation
Entrepreneurial orientation can be defined as a concept when executives are planning new strategies with a motive to do something innovative and making optimum exploitation of opportunities in the best possible manner (Machmud and Ahman, 2019). The five dimensions of entrepreneurial orientation can be stated as autonomy, risk taking, proactiveness, competitive aggressiveness and innovativeness. These five dimensions of entrepreneurial oriental can be understood as:
Pro-activeness: The first and foremost element that is present in a successful entrepreneur is that he is proactive or continuously takes efforts to find more innovative ideas and concepts that could be used for the benefits of the organisation.
Competitive aggressiveness: Another key characteristic being present in the entrepreneur is that he is highly competitive or always in search of finding new alternative methods to meet the customer’s requirement. So, that company could easily gain competitive advantages in an external environment (Entrepreneurial marketing dimensions and SMEs performance, 2019,).
Innovativeness: The third dimension of entrepreneurship is innovativeness or finding more creative ideas that could be used for growth and expansion of a firm. It searches for all new strategies that could be used to influence customers to be part of an organisation.
Figure 3: Entrepreneurial marketing dimensions
(Source: Entrepreneurial marketing dimensions and SMEs performance, 2019)
Risk taking: Entrepreneurs have the capability of taking a sufficient amount of financial risk with a motive to enjoy higher returns in future circumstances. This helps them to differentiate themselves from others.
Autonomy: Each and every entrepreneur has the capability to self-govern itself or acts in its own value and interest (Guan and et. al. 2019). This helps them in monitoring their actual progress and taking sufficient steps to improve their overall skills, knowledge and capabilities to maximum extent.
Out of the five dimensions, the one that is present in me can be understood through making use of Gibbs reflective cycle:
Description: It can be described that I was assigned a group project to complete study, in which I have to coordinate with 2-3 members for completion of the task in the desired manner (El Miedany, 2019).
Feeling: At the start of the project I felt quite nervous and did not have confidence related to whether I would be able to complete the task or not. However, with gathering sufficient information I gain confidence and happiness.
Evaluation: It can be evaluated that I have proactive skills as a successful entrepreneur as I have proactively searched for different methods to accomplish the project and achieve the set objectives (Adeani et. al. 2020). This will help in understanding what is happening in future and the way it could be utilised for the benefits of the company.
Analysis: During my previous experience, I have analysed that I was actively engaged in searching and presenting information, finding more innovative and creative ideas that could be used to complete the assignment in the best possible manner.
Conclusion: It can be concluded that the group work has helped in developing entrepreneur skills such as innovative, creative and team management. Also helps in gaining insight that I have proactive skills to lead and manage a team.
Action plan: The overall action plan to improve my other skills such as autonomy, innovation and many others. Such as, I will continuously monitor my skills, finding more innovative ideas and overcoming the risk in desired manner (Slowing down to speed up, 2021).
Conclusion
From the above report it can be concluded that entrepreneur management controls the resources and processes which create a burden for the employees. This control also has positive results were checking or controlling the process time to time will lead to achievement of targets effectively and efficiently. Entrepreneur management always focuses on positive outcomes with maximum utilisation of resources to provide more value to customers. Therefore, it can be stated that entrepreneurial management leads to the growth of an organisation in an external environment.
References
Adeani, I.S., Febriani, R.B. and Syafryadin, S., (2020). USING GIBBS’REFLECTIVE CYCLE IN MAKING REFLECTIONS OF LITERARY ANALYSIS. Indonesian EFL Journal, 6(2), pp.139-148.
Coad, A. and Storey, D.J., (2021). Taking the entrepreneur out of entrepreneurship. International Journal of Management Reviews, 23(4), pp.541-548.
El Miedany, Y., (2019). Reflective learning, reflective teaching. In Rheumatology Teaching (pp. 199-233). Springer, Cham.
Guan, H., Zhang, Z., Zhao, A., Jia, J. and Guan, S., (2019). Research on innovation behavior and performance of new generation entrepreneur based on grounded theory. Sustainability, 11(10), p.2883.
Inkon, K., (2019). A cross-sectional study on the relationship between business plan, entrepreneur type, development stage and profitability of US SMEs. Academy of Entrepreneurship Journal, 25(1), pp.1-21.
Kusa, R., Duda, J. and Suder, M., (2021). Explaining SME performance with fsQCA: the role of entrepreneurial orientation, entrepreneur motivation, and opportunity perception. Journal of Innovation & Knowledge, 6(4), pp.234-245.
Machmud, A. and Ahman, E., (2019). Effect of entrepreneur psychological capital and human resources on the performance of the catering industry in Indonesia. Journal of Entrepreneurship Education, 22(1), pp.1-7.
Ongaro, E. and Ferlie, E., (2020). Strategic Management in public organizations: Profiling the public entrepreneur as strategist. The American Review of Public Administration, 50(4-5), pp.360-374.
Raza, S.A., Qazi, W. and Shah, N., (2018). Factors affecting the motivation and intention to become an entrepreneur among business university students. International Journal of Knowledge and Learning, 12(3), pp.221-241.
Schein, J., Smith, T.D. and Woo, V., (2018). With or Without You, How Family Support Can Make or Break a Business, or Worse, an Entrepreneur. Academy of Management Global Proceedings, (2018), p.264.
Xing, Y., Liu, Y. and Cooper, S.C.L., (2018). Local government as institutional entrepreneur: Public–private collaborative partnerships in fostering regional entrepreneurship. British Journal of Management, 29(4), pp.670-690.
Entrepreneurial marketing dimensions and SMEs performance, (2019), [Online]. Available Through:< https://www.sciencedirect.com/science/article/abs/pii/S0148296319301973 >.
Value of entrepreneurial management, (2021), [Online]. Available Through:<https://www.researchgate.net/figure/The-value-of-entrepreneurial-management-Note-adapted-from-Henry-2006-and-Burns-2008_fig1_272727756 >.
Slowing down to speed up, (2021), [Online]. Available Through:< https://helendenheld.com/tag/gibbs-reflective-learning-cycle/ >.
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