Research Korner: Entrepreneurship

ENTREPRENEUR

INTRODUCTION                 This essay aims to examine the world and nature of entrepreneurship in a limited context with the objective to evaluate and assess an interviewee, which is an entrepreneur, if one falls into the context of entrepreneurship.  Not all who have businesses can be readily considered an entrepreneur for entrepreneurship have the certain characteristics, attitudes, skill, and so on before one can be considered a true entrepreneur.   The definition of entrepreneurs is broad; some studies have narrowed the definition of entrepreneur into three dimensions, entrepreneur’s attitudes, abilities and motive.  The attitude dimension pertains to the way how entrepreneurs interact with customers to learn customer’s needs since customers are valuable for the business.  But the most important attitude as to what an entrepreneur should have is to be a moderate risk taker.  Risk taking is part in any business aspect (1970), if an entrepreneur is coward to be a risk taker of the fear of losing a lot, then the entrepreneur is not likely to excel in the business aspect because it causes stagnation in terms of the business opportunity for growth.  Meanwhile, on the abilities dimension, According to  (1984), entrepreneurs can think both intuitively and rationally. Intuitiveness is a skill useful for creative task.  The need for an entrepreneur to be creative is apparent because as an entrepreneur, to make the business looks interesting and exciting, will gratify the curiosity of the people for the simple reason that people always like to venture for things that are interesting and new.  On the other hand, the motive dimensions.  Entrepreneurs are not to be called entrepreneurs if they do not have the urge for achievement.  The three entrepreneur’s dimension as what have been studied by researchers, is basically pertains to the aspect of entrepreneurs that is intangible and the extra factors that makes an entrepreneur.  The mentioned entrepreneur’s dimensions are the intangibles characteristics of being an entrepreneur that is not readily learned but is of intrinsic nature.  Although, these dimensions can be developed it still does not imply that one can really get the essence of it.   Further, entrepreneurs are being characterized as one who identifies and capitalize on opportunities that place emphasis on innovation, profitable venture, effectiveness and the non-programmed or vague situations.  Simply stated, entrepreneurs often gets involved in decision making which involved in the identification, design, selection and implementation as the phases that constitutes the decision process an entrepreneur must partake.  Identification when entrepreneur is able to pinpoint the perceived need to fill an unfilled need.  An entrepreneur having have identified the gap, could find means and appropriate solutions to eliminate the discrepancy that exist.  This ability to seek solutions to a discrepancy is the coverage of the design phase.  In the selection process, it connotes entrepreneurs taking actions that evoke the making of choice as to what course of action to make.  The final phase of decision process, which is the implementation, implies the bringing in of the whole package in the decision process and its actual application whether or not it will be effective or it still needs improvement.  The decision making ability of an entrepreneur is very crucial as it serves as a test for the entrepreneur and is likely to be a predictor of the future success of an entrepreneur in general.  One wrong decision may cost a lot, thus, the decision making ability of an entrepreneur says something as to how capable an entrepreneur is.   To peek specifically the decision making process of restaurant entrepreneurs are likely to use the market-pull decision where the entrepreneur seeks to identify the unfilled gaps in the market place.  Following the identification phase, entrepreneur thoroughly studies the discrepancy before deciding as to what is the right move to do.    Opportunities are interpreted as entrepreneur’s primary importance in the decision making situations.   (1974), father of modern entrepreneurial thought, holds that entrepreneurs distinguish themselves by carrying out new combination of productive forces.  In addition, he claims that entrepreneurs are innovator such that they introduce new concepts in the business.  However, in contrary to          , according to  (1980), entrepreneurial activities relate to the introduction of new ideas within a firm, the focus is on strategies entrepreneurs employ in the development of their firms.  Penrose criticisms to Schumpeter is not of essence, I believe          was right because, it does not necessitates that an entrepreneur should introduce their innovative thinking for firms only, as part of the motivation aspect of an entrepreneur is concerned, the high level of the need for achievement is evident, therefore, the introduction of innovative concepts in which an entrepreneur engulfs, can also be interpreted as his motivation for self-achievement.   Moreover,  (1982) characterizes entrepreneurs as individuals who search and identify profit opportunities.  For        , entrepreneurial profit opportunities exist where people do not know what it is that they do not know, and do not know that they do not know it.  As an entrepreneur, they are perceived by all as business-minded people.  In agreement with        statement, any entrepreneur is very much likely to find means in which to maximize profits and exploit the potentials in whatever aspect that seems to generate profitability in the future.  It is expected in every entrepreneur, to quest for achievement either of intrinsic (the sense of achievement) or extrinsic motivation (the profit). Given the definitions of an entrepreneur, entrepreneurship is a concept that has been discussed for many years, since the time of  in 1700 ( 1988).  Entrepreneurship is a cycle happening in the environment it evolves and the settings that causes alteration in the economic system through entrepreneurs who generates innovations in response to opportunities that stirs value for the entrepreneurs and the society where it belongs.  The environment where entrepreneurship operates occurs in the different economic, social and political environments whether it evolves from western-based economies, eastern or even the third-world economies which have inexpensive labor cost.  The varying settings is dependent to the given environment aspect.  Examples of the varying settings are new ventures, small and medium-sized enterprises, large-scale businesses or corporations, and the like.   MAIN PART     The selection process                 Entrepreneurs are not at all hard to find.  In Edinburgh, as the capital of Scotland, have many entrepreneurs.  However, to limit my choices I trimmed down selection process into categories.  Categories are range from restaurants, hotel, food, and so on.  One thing I put into consideration in selecting is that it has got to be something that of great interest to me such that I would not have a hard time relating to him or her by the time I get to interview an entrepreneur.  After picking the category of my choice, which is the restaurant, I have to limit again my choices into which I find exciting and new.  Finally, the decision has to be made and I decided to choose an Italian restaurant that is slowly getting its reputation in the restaurant business.  With respect to the other entrepreneurs, I did not reject the prospect of selecting them but the preference of selecting a restaurant that is a click to many people is more of an exciting thing to venture into.  Luckily, in spite of the busy schedule of the owner, he was able to squeeze some of his time for an interview with me.               , is a restaurant owned by an Italian who is married to a Scottish woman.  The reason I select the said entrepreneur is because it amazes me as to what secret  had why people flocks from the restaurant like there are no other restaurants available in town.  The restaurant started out as only having thirty seats but after a year, it doubled and has extended to seventy seats.  As I have observed, every night is full house night and somehow I believed that  is the talk of the town.  Aside from that, I am a person who adores and appreciates the essence of eating good food and certainly is a place that would gratify my fetish for good food.   Methodology               Well, I use a very simple methodology wherein I just used my instincts and my personal choice in selecting for an entrepreneur.  I did not have to place myself into a confusion as to who to pick and I find it easy since I do not have to set-up very formal appointments to interview an entrepreneur or interview a set of entrepreneurs.  The methodology is of advantage to me because it was a personal choice and it is something I really have interest.  Moreover, I get to enjoy the convenience of having a casual interview rather than a formal interview where I may find myself to be stiff.  If there is a disadvantage as to what methodology I use, perhaps, it is bias in having made a personal choice.            Findings and analysis                 The exploratory literature of entrepreneurs speaks of the vast characteristics of entrepreneurs in terms of their capabilities and the intangibles aspects that constitute the essence of an entrepreneur.  Base from the findings of the literature review read, the conviction to approve is conceived.  The reason is simple, the authors have expounded on the essence of an entrepreneur as a person and in terms of an entrepreneur’s potential and capabilities.   The nature of his business reflects very much on his personality and his passion in life that is cooking.  Mr. Italian (as what I will call the restaurant owner in this essay) did not start out with a dream of establishing a restaurant business.  As a matter of fact, he was a history graduate when he accidentally got into the craft of being a chef.  Perhaps, as an Italian, it is intrinsically innate to Mr. Italian his love for good food.  He was a chef in his friend’s restaurant business for ten years where he eventually dedicated his years in developing his skills of being a good chef, if not the best chef that he can be, leading to his developed emotional attachment for cooking.  The knack of perfecting his craft is very evident and very valuable in the business that he chooses.  As a family man, a husband to a lovely Scottish woman and a father to a beautiful daughter, he also takes good care of his restaurant just like he has taken care of his family.  More than that, Mr. Italian gets to enjoy the beauty of life as he gets to do the things that matters to him, his family, his restaurant and his craft of being a chef.   Mr. Italian’s business is currently doing well, but according to him, he is just new in the business and is yet to be that stable.  To my disbelief, he did not even have a certain strategy in his business.  To him, having a restaurant is not all about coming up with strategy, simply it is finding the right location, having the right concept and being in the market before your competitors.  In the future, Mr. Italian is hoping to expand his restaurant business if his business will continue to grow.   The restaurant business is somehow hard to manage and maintain since you have to come up with something that would really suit the taste of the customers.  Nevertheless, it is not a problem to Mr. Italian.  Even though, he is new in the business but not foreign in making food, his tacit knowledge about food equipped him with sufficient understanding as to how a restaurant should be run like.  Many people say that when you choose to be a chef, it would not be all about the ingredients that you place in the food that you are cooking but what passion you poured into it will make your food delicious.  Mr. Italian’s skills in cooking are I believe the very essence in the success of his restaurant.  According to him, he cooks for the customers with special care attached to it.  Moreover, his commitment to his restaurant also contributes to the success of his business.  His “mano y mano”, referring to one-on-one managing of the restaurant proves his commitment, like checking for the quality of stocks everyday is a routine thing that Mr. Italian dedicates himself into.  The success of any business is dependent on how the business is being manage and the extra factor of providing personalize care for customers is essential.  By far, Mr. Italian’s commitment and dedication will serve as a very powerful tool in the continuing success of his restaurant business.   CONCLUSION                 In summary of the literature review about entrepreneurs, it tackles the dimensions that pertain as to what entrepreneurs should be like.  To recap, the dimensions being mentioned was attitude, abilities and motives.  With regards to this dimension in which it is conceivable as intangible aspects of entrepreneur is stating being an entrepreneur is not all about learning to be like one but personality and disposition matters in entrepreneurship.  The incorporation of these intangible aspects combined with knowledge contributes much in the success of an entrepreneur in line with the entrepreneurial activities an entrepreneur is into.               The definition of entrepreneurs is being narrowed though the concept of which is still broad.  Nevertheless, it entails that being an entrepreneur is not easy or a very relaxing job.  The discovery of the many duties and responsibilities of being an entrepreneur includes the responsibility of taking care all the necessary things that needs to be taken care of, managing the people that is behind the entrepreneur, satisfying customers and catering to their need, maintaining the business being run, the pressures of making tough decisions and the searching for possible areas of growth in order to expand the business.  Among all these and the unmentioned responsibilities an entrepreneur does are vital in the running of the business.               The entrepreneur, Mr. Italian in spite of being new or rather just beginning in the restaurant business is a promising entrepreneur.  Attitude, abilities and motivations wise, he is able to meet the pertinent characteristics as to what constitutes an entrepreneur.  Mr. Italian ability to interact with the customers and in the provided special care he poured on the dishes he prepares for the customers is one way of making a personal connection with the restaurant customers.  In the interview in which he stated, I am not a perfectionist, but I look strive to perfect the things I do is an attitude that falls in the premise of providing excellent service to its customers.  Mr. Italian does not even cook a fish that is not fresh because of his aims in giving only the best for his customers.  His intuitiveness in establishing a restaurant business paid off since he believes in his intuition that making something out of his passion in cooking will better equip him in the success and future success of his restaurant business.  The motivation of excelling in the craft that Mr. Italian chooses is more of an intrinsic value for him.  As a chef, seeing the people enjoying the dishes he prepared is rewarding and sense of achievement for him being a chef.  Indeed the choice of entrepreneur I made was a true entrepreneur.               REFERENCES:

ENTREPRENEUR

INTRODUCTION This essay aims to examine the world and nature of entrepreneurship in a limited context with the obje...

ENTREPRENEURSHIP

Introduction             There is success in body care.  Behold the Body Shop, one of the famous international cosmetics brand.  It is not just one’s ordinary shop for body or hair care.  It is extraordinary just as its pioneer.  The entrepreneur assessed in this paper is in no way or another connected to me.    Personal Profile      The name behind the Body Shop, a famous cosmetic line for decades now, is  .  On October 23, 1942 in , , England marks her birth to an immigrant Italian family.  After completing her degree at the Newton Park College of education, she worked as a part-time teacher and for the United Nations in Geneva.  She traveled to different places like Tahiti, New Hebrides, New Caledonia, Reunion, Madagascar, Mauritius, Australia, and Johannesburg.  Her fascination with the women she encountered in these places became an episodic event in her life.  It later formulated her tale of success.  As stated in  (1999), she was mesmerized by the organic products that women in the Polynesian islands use to nurture their bodies.  Then, she went back to England and married a Scotsman poet and traveler named  in 1971.  Five years later, the Body Shop was born.  The Body Shop started out in the same area where grew up.  It was just a small shop painted with green.  Its products were just placed in little recycled bottles while its labels were just handwritten.  All of which was to lessen production costs.  Through the years, the body care business developed hand in hand with political causes.  Dame , as how she is referred to now, has been acclaimed for many things.  She has been London’s Business Woman of the Year in 1985.  She has received an Order of the British Empire in 1988.  In 1988, she has been the Communicator of the Year, and Retailer of the Year.  She has been the United Nation’s “Global 500” Environmental award.  On the other hand, the Body Shop brand has been regarded as the second most trusted brand in the UK according to the Consumers Association.  As said by the 1997 survey criteria, it is known to be the top 28 brand in the world, and ranks second in the retail sector.  The International Chief Executives in the Financial Times conducted a survey in 1998 and found Body Shop to be the 27th most respected company in the world (The Body Shop International. Available at The Body Shop is aged 30 this year, 2006.  From a small and simple shop, it has grown into a multinational company, though she prefers Body Shop to be described as “global.”  It operates in 50 countries with over 1, 900 outlets.  Indeed, the Body Shop has gone global, cutting across various cultures.  That is how far it has gone.  Recently, the Body Shop entered in an agreement with L’Oreal for its take over.  The deal is reported to be worth ₤652 only.  Founder and major stockholders , who still own 18% of its stock, are likely to receive ₤130M from the said agreement (. ).    Successful Factor             What does it take to become a successful entrepreneur?  In Dame ’s case, what are the factors that lead for her and her business’ success?  Success is measured according to sales growth, income, employment trends and satisfaction  (2000).              The reason why she came back to England while traveling Africa was because she was asked to by the English officials after finding out that that she did not do what a white is supposed to do in a black country.  Years later, she made use of her encounter to open a “body shop.”  Opening a shop that satisfies the need of nurturing the body out of indigenous science refers to the risk that Dame has taken.  Indeed, it is interesting to note that she risked selling products, inspired by ethnic body rituals, among her fellow Westerners, being the consumers.  She risked selling alternative body care products.  Nevertheless, she dealt with it with optimism.              In order to face success, it is of crucial importance to think of the ways by which the business model will thrive in the marketplace.  Another is to assess the strengths and opportunities of the business.  Lastly, it is always important to innovate, as this has always described entrepreneurs (, 2000).              Innovations are proven to increase the business’ performance.  During Christmas last year, upon launching a new product, i.e. a strong Christmas gift range, and improving customer services, operating profits from the division boosted to 17% to ₤11.7 million (, 2005).  This is a recent event in the innovation strategies of Body Shop.              (1939), as cited in (1995), asserts that an entrepreneur functions to innovate, which means devising new production function out of the existing factors of production.   In simpler terms, an entrepreneur is one who introduces a new product or a product that deviates from the ordinary.  Such is the basic idea or definition of an entrepreneur from which its modern definitions have developed.              Apart from the above, there is something about the packaging of the Body Shop products.   started with small bottles since that was what she was complaining on.  According to   (1992), lesser materials should be use to produce smaller, thinner and lighter packages.  This is one of the ways by which a company can minimize packaging costs, and at the same time, maintaining products to be in line with “green”.  Supporting the environment is ensconced in the Body Shop from the very beginning.  Years later, as the Body Shop grew larger and larger,  combined principles with profit.               (2005) article entitled “” speak for itself.  In the case of , she sells body products through the Body Shop while supporting local community trade in Third World Countries.              Personality has much to say in defining ’s success.  (1988) discusses 8 characteristics of women entrepreneurs, but in this case, three of which pertinently describe the subject of study.  Introducing naturally made cosmetics speak for her creativity and capacity to innovate.  She is confident enough to sell her body products in the market.  And, she is driven by autonomy.              In ’s eyes, Body Shop succeeded because of two reasons.  Economic survival of her family, especially during its beginnings, was a primary driving factor; and, the passion to establish a shop of her own and to engage in trading was the other (1999).  She therefore succeeded not because of a capitalist goal, which is profit.  What she did was she thought of ways to survive in the market.  She did not dream of a big shop.  The shop eventually did.    Critically Appraisal Business Domain and Products Life Cycle             The Body Shop is known for its cosmetic products that are naturally made and environment-friendly.  Struck by the body rituals among the women in the Polynesian islands, Dame  made sure that the kinds of cosmetics that her shop sells are made naturally.  Moreover, in this present age, this is what Body Shop offers still to its customers.  Likewise, having roamed the corners of the world, Dame  is able to acquire knowledge on the various natural products that different women across the globe use.  If we are to make a careful scrutiny of the products sold at the Body Shop, then we will see the different products with different functions that are composed of ingredients that come from different countries.  Examples of which are the following: sesame seed from Nicaragua, shea butter from Ghana, coco milk, mangoes, strawberries, etc.  Thus, if I am a shopper who passes by the Body Shop and get to see these products, then, no wonder, I will exactly feel the same fascination that Dame  felt decades ago.  All of these natural products are sold in all 50 countries where it exists.    Target Customers Selected and Why             Body Shop, as the brand implies, deal with the body.  However, it is not mainly concerned with making the body merely to be beautiful as what most cosmetics pledge to do.  When we think of cosmetics, the immediate implication is that it pertains to beauty products and therefore, for women.  On the contrary, is it only for women?  In this present time, women and men alike undergo vanity rituals.  Caring for the body is not just a female activity.  It is an activity that males today look into.  It is for individuals, male and female alike across various age brackets and social or cultural groups, who are geared towards nurturing their bodies.                did not really start the Body Shop with an intense will to have women being her primary target customers.  Rather, she created a venture with innovative products driven by the desire to own a shop of her own and the determination to survive.    Unique Selling Point              (2002) says that differentiation deals with offering uniqueness.  Being different implies being unique.  This is not the function of a particular entity in the organization, but the entire organization as a whole. Value is placed either on the product or the service or in both cases.  In order to attain competitive advantage, he suggests focusing on the value that customers seek as the operations strategy.  This can be done by looking at the quality, reliability, variety, features, services, location, delivery, after sales support, etc.  According to (1994), as cited in  (2003), cognitive legitimacy works simply through what is/are being signified in a particular sign or symbols.  What makes the Body Shop unique?  On the one hand, it deviates from its fellow cosmetics line with regard to its advertisements.  It never made use of famous celebrities nor supermodels to endorse its products.  Furthermore, the characteristics that its models posses are far from the stereotypical model or from the Western standards.  If we are to access the Body Shop International’s website, as cited in this paper, we will find out that these models are black.  From this we can derive that the pioneer of Body Shop ventures into something that is more than just business.  There is politics behind.  The cosmetic business is bound by principle.  According to  (2000), two essential factors make Body Shop to be distinct.  First, the value of integrity defines its interaction with its customers, staff and suppliers.  Second, it is the intense environmentalist philosophy of the business.  Body Shop products are known for being naturally-made and environment-friendly.  Thus, both the product and service compose Body Shop’s competitive advantage.               (1995) define an entrepreneur in relation to two essential aspects.  First, entrepreneurs are determined to engage in risky actions in order to come up with new prospects.  Second, they have the ability to organize or harmonize the actions of other people or the individuals around them in order to see their goals fulfilled.   (2003) has concluded in his study on cognitive legitimacy that customers opt to have knowledge on the products and the culture within and the operation strategies of a newly opened enterprise.  He has found this to be essential and beneficial for the company.              This analysis on the Body Shop’s unique selling points shows that it actually overlaps with its competitive advantage.  Its unique selling points define its competitive advantage.   Critical Success Factor The organizational belief that  wants the Body Shop to live by is essential for the business’ performance.  Body Shop has grown into a multinational company.  However, in ’s perspective, she preferred her shop to be described as “global.”  She believes that a global company functions because of values, whereas multinational ones “just trade.”  Profit is not merely the motive of business.  To be a “live, vibrant, and honorable” organization is what she believes as the function of business ( 1999).  The Body Shop’s organizational beliefs are strong, as they are strongly believed by its pioneers, both .  They would even want to work with people or hire employees that share the same principle as theirs.    Strategy Taken and Market Share It is very clear in the beginning which path will Body Shop traverse.   The identity that it possesses is that its products are made for a cause, i.e. social and environmental justice, while of course, keeping that its products are marked with quality and excellence.  According to the  report, the total sales worldwide boosted by 7% to ₤772 million (Body Shop International. Available at  [Accessed at 05/30/2006].  With the growing market capacities of the Far East Asian region, international brands like Body Shop will definitely create big.  It is reported that Body Shop stores in the Asia Pacific region, particularly in Southeast Asia, Hong Kong and Taiwan, increase its sales by 12% while operating profits to ₤19.7 million ( 2005).  American-born , who is responsible for Body Shop’s operations in the United States of America, has devised a way to sell Body Shop products.  In 2002, shoppers do not just go to its chains just to buy its products, because the Body Shop products themselves are the ones that go to the American homes.  Surprisingly, the results are promising.  Saunders has predicted a 35% profit in operations.  He comments, “You simply cannot underestimate the significance of being able to spend two hours with customers in their own homes…  It doesn’t cannibalize sore sales, in fact it bring in a lot of people who were not formerly customers.  It’s all about brand awareness (cited in , 2005: 8).”  This only shows the variety of strategies that has to be taken by a multinational company in order to survive.  If products fail in shops, then let the products be sold at home.    Analysis of the Business in the next five years The organizational strengths of the Body Shop have to do with its organizational culture.  The uniqueness of the products in terms of its packaging as well as its ingredients stands for the beliefs and/or values that the organization dwells in.  The end that a consumer arrives into from using the Body Shop’s quality products is neither just beauty nor skincare, but also a sense of an ideal being in this unjust world.  Its ethical and environmental principles that the great Dame  propagates define the strength of the Body Shop.  This is the identity of Body Shop that enables it to stand among the rest of its cosmetic rivals.  Let us now deal with the deemed weaknesses of the Body Shop.  According to  (1997), as cited in  (1998), the very problem that troubles the Body Shop for ages is that its image does not parallel reality.  The Body Shop boasts its natural products, and yet its products are not always fresh.  Worst, its product formulas loaded with petrochemicals are actually outmoded.  The Body Shop claims that it is against the use of animals to test its products, but its products’ ingredients are actually tested on animals.  The Body Shop asserts that it promotes development among Third World Countries by supporting local trade.  However, does it really do so?  The reality is that its Trade Not Aid program are said to provide only token relief to the indigenous group that it supports.  Could the aforementioned be true?  Or could it be just propaganda?  This is no time to search for truth.  A counter attack to such damaging propaganda is a simple label of propaganda by rival companies.  What matters is to maintain the economic survival of the business.  Body Shop has chosen a business path that goes along with social justice.  The perception that its products are for a cause is all that matters for the consumers.              Running for 3 decades now, the Body Shop has proven that every aspect of it has acquired high performances.  Of utmost concern at the moment is that L’Oreal’s takeover could be a threat to a certain extent.  The agreement that both parties entered into is something new.  It took place just a couple of months ago.  Agreements today can become disagreements in the future.  Body Shop’s autonomy may change through time.  L’Oreal could be a threat to the Body Shop’s performance in years to come.              L’Oreal has made a smart move on Body Shop, being its rival.  In terms of profit, the success of the latter is likewise the success of the former.  Moreover, the former is at an advantage stance, for it competes with the latter while at the same time gaining from it.  Most likely in the near future, both of which will be the giants in the arena of cosmetic business.              Women and men alike will most likely purchase products that pertain to the body.  Women will always spend on cosmetic products.  As mentioned in the aforementioned paragraphs, Body Shop’s products stand among the rest of the cosmetic products.  In relation to this, its suppliers come from the ethnic or cultural groups in different Third World countries that it supports.              Body Shop may stand among the rest but for how long?  Other body products are likewise improving its weaknesses.  There is indeed a variety of alternative body care products in the market.  However, things will also depend on the strategies that L’Oreal will take.    Recommendation             Dame  and the Body Shop have gone a long way in the cosmetics business.  It is interesting to note the irony behind.  A capitalist who is not greedy is one who actually survives and succeeds the most in the world.  It is then recommended that studies in business should consider principles or ideals and not just the art of profit making.    Conclusion             Dame  deserves the praises for her exemplary performance as an entrepreneur.  She has become successful because of the clear goals that she wants her Body Shop to have and attain.  In her case, risk undertaking, creativity and being innovative, and beliefs, are the factors that made her a successful entrepreneur.   The first step is not to succeed in the marketplace, but to enter the marketplace with a strong identity.  The Body Shop is just somebody’s body shop.  Now, it is everybody else’s “body shop.”  Bibliography:

ENTREPRENEURSHIP

Introduction There is success in body care. Behold the Body Shop, one of the famous international cosmetics brand. It is ...

Innovation and Entrepreneurship

Innovation and Entrepreneurship         Table of Contents   6. Introduction   7.  Entrepreneurial Opportunities: Definition and its Key Role in Advancement           7.1. Catching Opportunity 7.1.1.          Making and reviewing Vision, Mission & Goals 7.1.2.          Risk Taker 7.1.3.          Encourage Innovation   8. How could the ability of the entrepreneur be captured within an existing company to provide higher growth potential? 8.1.   Inspire 8.2.   Create 8.3.   Compete     9. How do entrepreneurs operate so that their ventures survive and prosper? 9.1. Identification of Attractive Industries           9.1.1. Review of potential growth rate           9.1.1. Review of past revenues and sales rate   10. Recommendations   11. Conclusions         Introduction             Innovation and entrepreneurship are some of the most highly valued skills of today. While some may rely on their talents in other fields, entrepreneurship is slowly making its way as a highly valued ability. Entrepreneurship cannot be learned. One is born with the ability of being an entrepreneur. But just what exactly is an entrepreneur? In a definition taken from , an entrepreneur is someone who has an eye for unheard of, new, risky and possibly profitable undertakings. This person capitalizes on these endeavors and seems to be able to profit from it. In another definition, this person seemingly is able to keep a positive outlook, despite fallbacks on chosen businesses. The following excerpt from a reference essay talks about the person behind IBM, Steve Jobs.             From the minimum wage worker playing a costumed character from Alice in Wonderland at a shopping mall, Steve Jobs parlayed his parents' good humour and a VW microbus into Apple Computer P/L and half a billion dollars in under five years. And less than five years after that he was fired from Apple, by his own Board; In leaving Apple he sold more than six million shares of Apple stock at a ridiculously low price for reasons that made no business sense at all. In between these high and low points were all the grand product intros, the screaming, the huge houses without furniture, the posing, seducing, and general acting-out that is Steve Jobs, according to some that claim to know him. He used the cover of Time magazine to try for a date with Diane Keaton. Joan Baez used Steve's ego to extract Mac after Mac after Mac from his Woodside garage, each of which she gave away to some friend. Those were the days of Armani suits and stiff collars, the days when Apple didn't even have a budget because the company couldn't imagine how it could ever spend all the money coming in. Those were the days. Steve Jobs was then asked to return to Apple as CEO and in a couple of years Apple was profitable once more after nearly $2 billion in losses. Some of the history of the between years included the founding of NeXT Inc. First, Steve seduced and abandoned the education market, then the hardware market, then his own employees, and then his investors, causing so much damage that Canon, which lost $350 million in the NeXT debacle, has sworn it will never again build computers. In a time when families are fashionable again, Steve is a family man, doing the dishes some evenings. When greed is no longer good, he has been generous with some of the loyalists from NeXT. When efficiency has become a way to measure business success, he talks about turning Pixar into a machine for making cartoons, rather than the haven for artists he liked to describe a decade ago.              The above excerpt was taken from a reference article about the business entrepreneur, Steve Jobs. But this paper generally focuses on entrepreneurial opportunities, keeping and seemingly nurturing the chosen business’s growth. But for reference and example purposes, I shall choose to retain Steve Jobs as my main reference and example.       7. Entrepreneurial Opportunities: Definition and its Key Role in Advancement               Entrepreneurial knowledge is important, not only academically speaking, but also economically, since entrepreneurs acts as pivots, pushing our economy forward (2003;1997). Likewise, entrepreneurial knowledge is vital in harboring entrepreneurial opportunities and exploitation. Some researchers even incorporated the definition of entrepreneurial opportunities into research by stating, "... the scholarly examination of how, by whom, and with what effects opportunities to create future goods and services are discovered and evaluated" (2000). But just what are entrepreneurial opportunities? In some definitions, it is described as "... situations in which new goods, services, raw materials, markets and organizing methods can be introduced through the formation of new means, ends, or means-ends relationships" (2003).  But in another article, it is broadly defined as, “…as being a set of environmental conditions that lead to the introduction of one or more new products or services in the marketplace by an entrepreneur or by an entrepreneurial team through either an existing venture or a newly created one.” ( 2005).           7.1. Catching Opportunity             In the following numbers, there would be a number of discussions on how entrepreneurs capture opportunity.  Through the following segments, we can examine the possibilities and the keys on catching attractive businesses and opportunities.             7.1.1. Mission, Vision and Goals. In accordance with previous reports and essays regarding Innovation and Entrepreneurship, I would once again recommend making and reviewing Vision, Mission and Goals. Vision, Mission and Goals can give one a sense of direction. One can be able to keep track of what he is doing, whether he is moving forward or not. Mission, Vision and Goals can help shape a person’s future, depending on how he perceives it. But having mission and vision statements, as well as goals are not only limited to large organizations. One can also have goals and mission and vision statements. As was mentioned, these things help define one’s personal journey into advancement. Also, by doing such, a person can be able to know what his intended undertakings are. In the context of entrepreneurship, these can help point out profitable and possible good business undertakings. The following tips are taken from the article entitled, “Mission and Vision Statements: Envision your Business, Realize your Goals” Convey your company values;   Inspire and motivate your organization toward objectives that are fundamentally key to the culture that you wish to establish;   Use long-lasting ideals, not fashionable statements based on current business or market trends; and   Keep your statements clear and easy to understand for anyone coming on to your organization.               7.1.2. Risk-Taker. According to the article, 10 Mindset Web Entrepreneurs Must Have to Succeed by Sheri McConnell, one must able to take risks. “Web entrepreneurs must understand that one of the keys to accomplishing our goals is to be willing to take risks. This "active" mindset means there will definitely be failures. But failures are just indicators of which direction to go next.” (10 Mindset Web Entrepreneurs Must Have to Succeed). It is definitely a good trait of a good entrepreneur when he is able to take risks. When a potentially profitable endeavor may come into play, it may have with it certain downsides. But a good entrepreneur would be able to identify the shortcomings and if ever, would encounter failure; one can get up easily and would once again take the risk, if opportune moments call for it.             7.1.3. Encourage Innovation.  In an article, “Creating an Environment for Innovation”, , mention was made of nurturing an environment that encouraged innovation. In the following excerpt, specifically the conclusion, mention of the effects of innovation is made. “Setting an atmosphere in which innovation is encouraged is often highly correlated with the long term success of a company. Each of the elements explained above is critical to the effective innovation process. Challenge yourself and your senior management team to develop the skills and the atmosphere in which effective innovation becomes a part of your ongoing strategic planning. It is highly probable that your long term survival and viability depend on it.” (2003).     Time Horizon 1-2 years 3-6 years 7-20 years Type of Innovation Incremental Step function - longer term platform for annual features and options Breakthrough Incentive individual basis this year's profits team basis medium term options with matched vesting period personal security, salary, tenure, fame, secure retirement, sabbaticals, long vesting stock Team Size small (1-3) bigger (10-100) very large Mgt. Style fast, decisive, ego driven team based, consensus bureaucratic, nurturing Pricing/Marketing skim pricing with mark downs tprice for volume to get down experience curve first, target price price for long term profits, defensive- keep others out, monopoly prices if protected (source:)                The table above demonstrates the different aspects in innovation. As was explained in the article, Time Horizons differ, depending on the different aspects that make up the innovation process.             Encouraging innovations in the company can well mean that the company is on the verge of a major shift, positively. In the context of entrepreneurship, innovation can help make the entrepreneur get his wanted business opportunities.       8. Utilizing the Entrepreneurs Abilities: Secret to Increasing a Company’s Growth Potential             An entrepreneur’s ability can be harnessed into making a better company by these three aspects: Inspire, Create, Connect. In the following paragraphs, detailed explanation of these three aspects will be provided. An entrepreneur, with his abilities and skills may be able to up the growth potential of his company despite major obstacles in his way.               8.1. Inspire. An entrepreneur may not only have eyes for business. He may also have the abilities to inspire and encourage his subordinates. The mission, vision and goals of the company should be integrated and imparted to each and every one of the employees so that they would know the scope of the work that they are doing. But, an employee should be given the right to freedom of making mistakes and should also enjoy the liberty of correcting and learning from it. Ridicule is out of the question. Every employee should be given the right to make mistakes and should also be treated with respect. As a good entrepreneur, one must be able to see the difference between putting a person down and correcting him in the right manner. By doing so, one is not only able to gain the respect of his subordinates but is also able to inspire others.               8.2. Create. As being an entrepreneur, one is often tied with being the patron of innovations, thus, is always on the brink of doing something creative. Ideas and inspirations are a must for a company that wants to up its growth potential. Thus, an entrepreneur must be able to find potentially profitable idea and put it into action. The brimming entrepreneur must be able to come up and encourage ideas that may seem to be able to be beneficial to the company.               8.3. Compete. To be able to keep up in a competitive world like today, one must have the ability to compete with other rising entrepreneurs. A rising entrepreneur must be able to recognize the needs and wants of his clients and he must be able to meet those needs. Innovation and invention came about because of man’s needs. As the say, “necessity is the mother of invention.”, so an entrepreneur must recognize these needs and be able to come up with a solution to it, before competition sets in. Also, the consumers are not as they used to be. The consumers of today are better informed, more advanced than the consumers of the bygone years.             “Enterprises are recognizing that stronger and more-enduring customer relationships are critical to long-term profits. Most marketing organizations are at least conceptually well-situated to drive customer centricity, via a more-strategic approach that is focused on delivering value around customers and customer segments. To be effective, however, the marketing function must evolve from focusing on products and transactions into placing more emphasis on customers and relationships that are aligned with enterprise goals and strategies. However, most marketing organizations face several critical challenges: “()              In accordance with the above statement, an entrepreneur must establish good relations with his customers to be able to win and keep their trust. In a competitive world as ours, consumers mean a whole lot than anything else. Their comfort and trust must be first put into mind before anything else. Therefore, a rising entrepreneur, in order to help up his company’s status, must be able to compete with other rising entrepreneurs, in terms of productivity and innovation, and he must also be able to create a strong relationship with his clients, in terms of customer service.             According to most theories on strategic management, the customer is the ultimate judge of competitiveness; that is, by buying the products of a firm, the customer indirectly decides which firms will continue to exist and which firms will go bankrupt. This corresponds to the famous slogan by Alfred Sloan of GM: doing better by doing good; that is, if a firm makes money then that is good for society ( 2002). In order to attain good edge on competition, worldwide and locally, an entrepreneur must always be updated with the newest and most effective marketing strategies available and must be willing to work hard to apply these strategies. Of course, the company must also keep its products to the highest degree possible. They should of course maintain the quality of the goods they are selling in order to keep the demands at a high degree. By doing so, they not only ensure themselves of a high demand for their products but also keep for themselves a respected name.     9. Entrepreneurial Operations: Survival           Entering the world of entrepreneurs is on its own, a hard task to accomplish. What more is the process of maintaining the company and surviving the huge competition in the markets today? An entrepreneur must have an eye for industries with high possible productivity rate. Alongside that, he must also be cautious enough to look into their past revenues and their potential growth rate. One must also have the ability to keep in touch with his employees. He must not, at all costs, be a distant figure to his employees.  Long-Term goals are also very much needed for directional purposes.   9.1. Identification of Attractive Industries. To start a business, one must be able to identify businesses with are really “in”, in the industry as of today. One must know what businesses consumers find attractive and will be able to withstand competition with other entrepreneurs. There are a number of factors to consider when wanting to acquire an attractive industry. One is when one tries to see if this business is a necessity to the public. If it is a necessity, such as food and electricity, then it may be a good investment. The public cannot go on ignoring their needs. Also, I located some tips in starting out a business. The following is an excerpt from an article by Bruce Hodgman, entitled “How Do You Start a Successful Business? Planning, Planning and More Planning”. *What do I like to do with my time? *What technical skills have I learned or developed? *What do others say I am good at? *How much time do I have to run a successful business? *Do I have any hobbies or interests that are marketable?   Then you should identify the niche your business will fill. Conduct the necessary research to answer these questions: *Is my idea practical and will it fill a need? *What is my competition? *What is my business advantage over existing firms? *Can I deliver a better quality service? *Can I create a demand for your business?   The final step before developing your plan is the pre-business checklist. You should answer these questions: *What business am I interested in starting? *What services or products will I sell? Where will I be located? *What skills and experience do I bring to the business? *What will be my legal structure? *What will I name my business? *What equipment or supplies will I need? *What insurance coverage will be needed? *What financing will I need? *What are my resources? *How will I compensate myself? (Source:  2007)               9.1.1. Review of potential growth rate. Business outcomes are difficult to predict by just looking at them. An entrepreneur must be cautious enough to pore into its possible growth rate. He must try to look into other entrepreneurs who entered this type of businesses and if possible, should conduct interviews in order to view the growth rate of his chosen venture.   9.1.2. Review of past revenues and sales rate. Another way in which an entrepreneur can ensure the stability of the industry his company may choose to venture in is to review past sales rate and revenues of the industry. If the industry chosen seems to have a lot of sales in the past decade, it would be a worthwhile investment. Though maybe at times industries tend to fluctuate, it may get back up on its own.  That is a good signal of a good industry to invest in.   9.2. Long-Term Goals. A rising entrepreneur must also come up with long term goals in order to have direction to which the company can veer its attention and energy. The following are some recommended long-term goals that a company must have: Long-term strategies must include: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Implementation of new information systems</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Development of employees who are well rounded and well capable of multi-tasking</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Must have a program that would address key issues ad complaints involving the employee and the company</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Translate desired culture into specific employee behavior</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Have a back-up plan on the undertaking chosen. If in any case the chosen plan fails, there would be an alternative plan</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Knowing several languages (incorporation in curriculum)</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Improvement, development and innovation of infrastructure of all centers</li> </ul>   9.3. Connect with Employees. Having a horde of employees would not answer your call of change and modernization. Instead, it may only cause frustration and headache. Even a few well chosen employees will be able to address the needs of the company. The company should, in all possible ways, provide for itself a high standard for accepting employees. They of course must possess certain qualities that would help further the increase on company profits and development. Of course, the company should employ the help of skilled panel of interviewers that could well determine if the applicant is fit for the job or not. At the individual level, the performance management system (PMS) must drive employee engagement, focus, and alignment. People perform best when they: Ø  Understand and agree with what they are expected to achieve at work; Ø  Gain specific feedback and agree with others’ assessment of their progress based on objectives and relevant information; and Ø  Are encouraged to take responsibility for their own performance and plan their own development. The company wants its employees to have control, choice, and self-help; but it also wants to make sure its employees’ contributions are aligned with business objectives. That is possible if employees have good, collaborative conversations with their managers.             A strategy that may help in the continuous good stature of company and employee relations is to continually train and keep transparency between employees and the management. Also, training must be continually done in order  to help facilitate the employee on his exposure to new tools of the trade and other innovations.   10. Recommendations             The company can strategically implement the enumerated short-term and long-term plans through specific goals and objectives. By identifying all the possible problems arising in the company, an entrepreneur can think of some solutions and in turn boost the morale of their employees to regain their trust for the company, and therefore, maintain the company’s good reputation. An employee’s motivation serves as the key when it comes to his or her performance in a certain business firm or company.   For established firms in a product category, focus is initially on current customers because marketing to this target is most cost-effective if saturation has not occurred. At some point, firms discover that targeting current customers limits brand growth. Exiting needs of the customers should be given priority in the design and manufacture of cars. Trusted research tools and methods that are applied for marketing throughout the years such as interviews and market surveys can be used to identify such needs and to test new product concepts.             What is an appropriate strategy when faced with the situation of targeting customers? Should the firm focus on its loyal but declining customer base or should it shift its attention to higher growth segments? The answer depends on both the reason for stagnant or declining growth and the relationship between current customers and higher growth segments of the population (2001). Entering the Global Market. This, to a certain degree, is also very much needed and very effective for helping the company’s revenue go up. Entering the global market may not only help in putting the company up on a pedestal but also increase its revenues and income per annum. Alongside that, the product or products produced would be introduced to a new set of audiences and that they will have more of a variety of consumers who would possibly be good potential buyers and business partners.             To a certain degree, penetrating the global market would be a high achievement for any entrepreneur, considering the fact that there are a lot of competition existing. Though it may seem humanly impossible and really unpredictable, it may greatly help struggling entrepreneurs business undertakings. If the products he chooses to sell are widely accepted by a variety of audiences, it may be a very good move for him. It hardly is something you would call a “day-to-day” marketing plan. But if it all works, then it is a guaranteed solution to the company’s dilemma. .           The entrepreneur should also invest on his employees. They are, after all, the wheels of the company. The employees of the company should also be given the freedom to make for themselves individual and attainable goals. They should be able to envision the things that are attainable for them. Instead of bludgeoning them on the company goals and policies, they should also be encouraged to for their own goals and objectives. This will give them a better sense of themselves and a sense of well-being and freedom.   11. Conclusions             We are on the verge of the 21st century. Entrepreneurs should create and make better the strategies that they have now in order to have the edge in the competitive world. They must be able to recognize and meet the consumer’s needs. Having said so, someone wanting to be an entrepreneur must be able to have the needed skills and abilities.

Innovation and Entrepreneurship

Innovation and Entrepreneurship Table of Contents 6. Introduction 7. Entrepreneurial ...