When talking about the fail entrepreneurial activity, general public have controversial definitions of failure as some may think of liquidation of company and some suppose the fail investment of a particular area only. Despite polemical definition of failure, at least it states that the company stagnate in the fast changing world. According to the Burns (2010), the success is a survival for the long term in the turbulent business world. It hints that the failure represents the collapse of the business growth, which causes the risk and the worst situation is the personal bankrupt. In the following paragraphs, the dark and bright of fail outcomes would be introduced and discuss whether the failure is a desirable outcome of entrepreneurial activity or not.
The first reason why the failure is not a great outcome is that the sole trader will suffered from the physical loss. If the entrepreneur continuously undergoes the loss in sales, the company may have a risk to go bankrupt (Burns 2010). The assets including the money, facilities, stock and other resources will be taken over by the bank to recover the debts. What’s more, it may also have the management buyout by the other army or company, the value of assets will be underestimated so the entrepreneur still loses under the detrimental context.
More important is that failure can cause the potential loss. Fail entrepreneurial activity negatively affects the reputation, which can be harmful to the company’s sustainability in the long run. For the bankers, considering the credit risk is one of the most critical factors (Burns 2010), it can reflect the past record of the entrepreneurship, such as credibility, financial statement and the previous sale, etc. Since failure is exposed, the un...
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...nturing. Jan2014, 29(1), p17-33 .DOI: 10.1016/j.jbusvent.2012.10.006
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5) Cope, J. (2003). Entrepreneurial learning and critical reflection: Discontinuous eventsas triggers for 'higher level' learning. Management Learning, 34(4), 429- 450.doi:10.1177/1350507603039067
6) BBC , Transformed Kodak emerges from bankruptcy, 3 September 2013, http://www.bbc.co.uk/news/business-23952800
7) Chai with Lakshmi, Failing Well: lesson from a serial entrepreneur, 6, November, 2012, http://chaiwithlakshmi.in/2012/episodes/entrepreneur/failing-well.html
8) apple
9) virgin
10) Burns.P., Entrepreneurship and small business, (3rd ed.). Basingstoke [England] ; New York : Palgrave
Businesses exist to produce goods and services. If someone is thinking of starting up their own business or becoming part of an existing business, they would have to have the knowledge of what makes business work successfully and know how to how to apply that knowledge in the particular area of business. For this unit I will be entering and exploring the world of business. For this unit I will encounter and evaluate information provided by certain businesses and actually gather my own information from at least one business. The business I have chosen to study is J Sainsbury’s.
This document summaries that the discussions of ‘black swan’ events and strategy, such that events that have a low likelihood but create a very large impact.“Black Swan strategies,” is strategies that Generate losses most of the time but occasionally lead to large profit. How the black swan events impact on business and real word.
When analyzing the personality, cognitive, social, and behavioral features which differentiate successful entrepreneur and unsuccessful entrepreneur, one would have to look at the Bandura’s social cognitive theory in association with the triadic reciprocal determinism as a measure of determining behavioral, personal, and environmental factors which increases experiences which leads to critical thinking and observing every situation or challenges as a opportunity. I believe this theory is greatly associated with personality, cognitive, social, and behavioral aspects of an entrepreneur characteristic are linked to the bidirectional of influences bases on their behavior, environment, a different situational creations which increase learning and developing analyzing in a particular way. According to Gaimon and Bailey explains how one may adopt a dynamic learning perspective of entrepreneurship through gained knowledge’s and activities through life cycles and experiences. (p. 1429).
There is an enormous prospect for the Pkolino Company to start a business. The current task has adequate resources and a great plan to keep it operational. Nevertheless, dangers that might plunge Pkolino Company into financial disaster are also present. This is due to the fact that there are always a couple of things that tend to advance in an unanticipated direction even in a well- planned plan. For instance, P’kolino Company’s financial statements do not have provisions for the worst, average, and best scenarios.
For entrepreneurs whom are willing to accept the risk associated with starting a business, some have made themselves extremely wealthy. Although our economy is focused on capitalism as a means of promo...
...e they want to be successful without taking such high risks that could take their business down hill if they taken a risk. For sure every entrepreneur knows every risk can be good, but can have a negative effect if taken the wrong way.
Accordingly, the success of any business is the result of entrepreneurs’ correct judgement on the market. However, good turnover (earning) and failures, initiated from ambiguity, function as a warning signs for entrepreneurs to understand and re-int...
We live in an age of entrepreneurship, everyone is trying to start their own business and follow the American dream. However twenty percent of all business doesn’t make it past their first year, and half of the remaining ones will die within five years of their opening. This can be concerning since I personally am interested in running multiple business as a source of income. The fact that you can put thousands of dollars into a failing company can be disconcerting. There is an overlying problem in all companies, the need to improve. In most cases once a company stops improving it becomes stagnant and eventually it will start to regress. To some this idea may seem contradictory but you could compare any business to a fish tank. All companies
Sirico, R. A. (Director). (2007). The call of the entrepreneur [Documentary]. United States: Acton Media.
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
The success of a business is greatly dependent on its entrepreneur. An entrepreneur is someone who takes the financial risk of starting and managing a new business venture. In order to be a successful entrepreneur, one must be ready to take a risk and invest one’s own savings into a business. The job requires that the individual be ambitious and committed to working hard in order to achieve the set targets. A successful entrepreneur is able to multi-task and communicates effectively with people, possessing leadership qualities such as confidence and motivation. The individual must play the role of constant motivator and inspire employees to improve their work performance, whilst ensuring a comfortable environment for the employees to work in. According to Schumpeter (1982), an entrepreneur is more of a ‘heroic’ than an ‘economic’ figure; his motivation should not solely be monetary, rather stemming more from inspiration and ambition.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Throughout Europe, great attention has been paid to the small business area and to the contribution that entrepreneurial small businesses can bring beneficial to transforming the economy (EiM, 1994).The concept of entrepreneurship is often considered with new venture creation and small enterprise management, and the terms of owner-manager and self-employment (Gibb, 1996). While Kirby (2003) has argued that entrepreneurship is far broader than these concepts mentioned above. Not all owner-managers can be considered as entrepreneurs, nor are all small business entrepreneurial (Carland et al., 1984). Carland also has argued that entrepreneurial small business is aiming at profitability and growth, and the business is regarded to be innovative.
Majalah Niaga(2013); Super Entrepreneur Tip: Do not Ever Stop Trying- edition 26; available from [magazine] pp 30-32. Retrieved on 7 March 2014
Risk-taking is one of the chief dimensions of entrepreneurship. Entrepreneurs are found to be more risk takers than the managers and salaried employees, such that, they are willing to put their homes on mortgage, jobless and can work for years without any earning (Burns, 2011; Masters & Meier, 1988). According to (Moore & Gergen, 1985), entrepreneurs always take calculate risk and always analyse the situation. Cognitive Psychology supports that the risk taking ability is just limited to their area of expertise (Sjöberg, 1978, Heath & Tversky, 1991). According to (Heath & Tversky, 1991), entrepreneurs take more risk in the area of their interest and expertise and not in those area, they have little knowledge about. But even then also, they take more risk than general population.