Key Factors to a Successful Business

1896 Words4 Pages
bulb-icon

Recommended: Explanation of the importance of entrepreneurship

Entrepreneurship, innovation and economic development are the key factors of a successful business. These concepts are inter-linked and this essay will further explore and elaborate the relationship they have with each other. Additionally, sustainability also plays a role in this relationship and contributes greatly to a business’ success and reputation. 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. One of the most integral qualities of an entrepreneur as well as that of a successful business is the degree of innovation it possesses. Innovation refers to the creation of new ideas, improvement of existing production processes, and effective problem solving. Innovation allows for increased efficiency in a business, which in turn increases its supply potential and productive capacity. Being innovative may involve either improving upon old methods o... ... middle of paper ... ...securing future prospects. It can be concluded that entrepreneurship cannot exist in the absence of innovation. Innovative entrepreneurship is the key to a successful business leading to economic development. Entrepreneurs are very prominent figures of society and therefore their actions and decisions have a significant impact on the welfare of stakeholder groups. Sustainability plays a vital role in this relationship in that it provides a solid foundation upon which a business can expand with more temerity and assuredness. Works Cited Altaf Hussain Sumo “Small Business in Pakistan: Characteristics, Problems and Sources of Finance”. Downloaded from http://sbaer.uca.edu/research/icsb/2009../paper141.pdf Stefan Schaltegger & Marcus Wagner “SUSTAINABLE ENTREPRENEURSHIP AND SUSTAINABILITY INNOVATION: CATEGORIES AND INTERACTIONS”. Downloaded from http://www.bwl.uni-

Show More
Related

  • The E-Myth Revisited by Michael Gerber

    1852 Words  | 4 Pages

    ... their money to turn a profit. Being an entrepreneur and starting a business does not mean that the person knows what they are doing, and most of the time they are just defending their ideas until they ultimately fail. They spend most of their time in the business and not on the business, and in return if they do not realize this they will fail as well. By being an entrepreneur, it can be easy if you follow all the guidelines listed in this book, and there will be success in any business which has been started. For some entrepreneurs their minds are consumed by their ideas, without wanting to listen to others, failure will be in the imminent future. Therefore after reading this book it is evident that an entrepreneur must follow these concepts and processes in order to overcome this problem among entrepreneurs in society, and by doing so they will achieve success.

    Read More

  • John Deere

    1280 Words  | 3 Pages

    The world is filled with many ambitious people looking to make a product to help the world and make a living for themselves and their families. These people are known as entrepreneurs. An entrepreneur is someone who organizes and operates a business or businesses while running the risk of losing everything to make money. One might ask why there is a risk ...

    Read More

  • Servant Leadership Article Essay

    717 Words  | 2 Pages

    The characteristics discussed in the article is important to possess in order to be entrepreneurial.

    Read More

  • Holden Battlefield Innovation Case Study

    729 Words  | 2 Pages

    Innovation has become a must in many businesses considering the current economic climate and the variety of needs of customers. With stagnating economic climate and the amount of competition in each market businesses have been in hard ground. The growing competition for businesses has made it much harder to for businesses to have a good margin for their profits.

    Read More

  • Entrepreneurship Analysis

    2840 Words  | 6 Pages

    Okpara, O. Friday (Dr.) (2007). The Value of Creativity and Innovation in Entrepreneurship. Journal of Asia Entrepreneurship and Sustainability. 3 (2)

    Read More

  • Entrepreneurship Case Study

    991 Words  | 2 Pages

    Entrepreneurship has taken diverse views since its discovery in commerce. People had varied notions as to what it entails and the characteristics an individual needs to have to be called an entrepreneur. The concept of entrepreneurship is seen as the process of uncovering and developing an opportunity to create value through innovation and seizing that opportunity without regard to either resources (human and capital) or the location of the entrepreneur – in a new or existing company (Churchill, 2003). Entrepreneurship is the willingness

    Read More

  • Case Study: Sustainability Of Business Operations

    1012 Words  | 3 Pages

    Sustainability of a business refers to the capability to stay in business, survive and perhaps thrive within the constraints or limitations imposed on it. A business and its performance is sometimes sustainable because of the favourable economic environment or because of some strategic advantage that other competitors do not have. Instead of having to deal with deeper aspects of management strategies, we will address two more apparent issues.

    Read More

  • Joseph Schumpeter: Creative Innovation: The Implications Of Entrepreneurship

    1647 Words  | 4 Pages

    Joseph Schumpeter, an American economist, renowned for his term ‘creative destruction,’ defined ‘entrepreneurs as individuals who exploit market opportunity through technical and/ or organisational innovation.’ Entrepreneur is derived from the French verb ‘entières,’ meaning to undertake and consequently entrepreneurship is the ability and will to develop and manage a business scheme; accompanied by any of its risks with the intention of making turnover. Conversely, innovation is the process of transforming a creation into a product or service that generates value; ‘the commercially successful exploitation of ideas.’ It is integral to any developing economy, particularly in those where prevailing business models have become outmoded. Entrepreneurship and innovation play fundamental roles in the creation of knowledge with the purpose of generating value and encouraging sustainable economic and organisational development.

    Read More

  • Evaluation of Successful Strategic Entrepreneurship

    1127 Words  | 3 Pages

    Strategy Entrepreneurship is the integration of strategic management and entrepreneurship. Strategic management involves activities taken to create sustainable competitive advantage and earn wealth while the latter i.e. entrepreneurship, involves the identification and exploitation of opportunities. The marriage of the two, “strategic entrepreneurship” is defined as the integration of opportunity-seeking behavior (entrepreneurial) and advantage-seeking behavior (strategic) in creating well above-average returns for owners as well as value for customers (Hitt & Ireland, 2005).

    Read More

  • The Entrepreneur

    3031 Words  | 7 Pages

    Driven by an intense commitment and determined perseverance, entrepreneurs work very hard at what they do. They excel and want to win. Entrepreneurs are amazing people with a high respect of character. They use their mistakes as something to learn from rather than a failure. No matter the outcome, they believe in themselves and have an extreme confidence not only in themselves, but also in what they do.

    Read More

  • Corporate Entrepreneurship

    1273 Words  | 3 Pages

    Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.

    Read More

  • Need For Achievement Essay

    809 Words  | 2 Pages

    This term is defined as generating new products, methods, markets or a fresh organization or conceptualized as the process of turn invention into a marketable product (Gabor, 1970). Kourilsky, (1980) claimed creativity and innovations are the vital factors for inspiration and alternative method to predict the success. In the perspective of entrepreneurship, Schumpeter (1934) defined entrepreneur is an agent of change and involved in recognizing new opportunities and innovation is the maximum elementary role of entrepreneur (Drucker, 1985). The practical proof ensured in the entrepreneurship literature that entrepreneurs are considerably more innovative than non- entrepreneurs (Robinson et al., 1991; Ho, and Koh, 1992). Students who adopt entrepreneurship courses appeared more innovative than the students of business administration and management (Sexton and Upton, 1986; Goldsmith and Kerr 1991). Robinson et al., (1991) confirmed that innovation has significant and positive relationship with attitude towards entrepreneurship. Innovativeness, achievement, self-confidence and control could be good predictors of entrepreneurial attitudes (Bygrave, 1989; Robinson et al., 1991; Armstrong and Hird,

    Read More

  • The Importance Of Innovation On Organizational Performance

    1170 Words  | 3 Pages

    As regarded by a growing body of researchers, Gunday (2011) also explains organizational innovation as a catalyst of growth in business and economy. Luecke & Katz (2003, p.2) refers to innovation as ‘the introduction of a new thing or method. Innovativeness refers to ‘a firm's capacity to engage in new enterprise, that is, the introduction of new processes, products, or ideas in the organization' (2004, p. 429). This capacity to innovate is among the most important factors which influences the business performance and as such, innovativeness is amongst the unique beliefs which is surrounded in the tangible and intangible resources leading a firm towards successful business

    Read More

  • Entrepreneurship And Entrepreneurship

    1078 Words  | 3 Pages

    Is there truly a link between entrepreneurship and economic development? Schumpeter (1934) observed a link between both of these and he also suggested that innovations which are radical can lead to creative destruction, transforming industries for the better as well as improving the quality of life for inhabitants. In this following essay, I am going to be examining an innovation’s contribution to economic development as well as the link between economic development and entrepreneurship.

    Read More

  • Entrepreneurship and Need of Achievement

    580 Words  | 2 Pages

    Studies have found that there is a deep link between Entrepreneurship and Need of Achievement. According to Begley and Boyd (1987), those who have founded their own companies had a higher need for achievement than non-founders or owner managers. Also, (Stewart et al., 1998) responded that need for achievement is higher in entrepreneurs than the corporate manager and owner managers. Need for Achievement is usually high in entrepreneurs than the general population. It provides them with motivation to go ahead and achieve their next target easily. Entrepreneurs showing this tendency usually are good planners, sets their goals, always look for information and learning (Miner, 2000). They accept success and failure of their work and this need of achievement help them to overcome failure, obstacles and setbacks.

    Read More

More about Key Factors to a Successful Business

Open Document