Entrepreneurship is a very important part of the economy. It helps create jobs, provides competition to the larger companies, creates a demand and supply for products that large multinational companies are not willing to produce, comes up with innovative products and processes, they also have an impact in increasing the GDP of a country among many other things. Entrepreneurs are now considered the backbone of any economy, as they constitute of 90 per cent of the businesses, which exist within the country.
In the globalized world of today, when standardization has become the norm it is the small business owners and the entrepreneurs who are customizing the products and fulfilling the specific needs of the people. Also, globalization has resulted in outsourcing many functions of the business which previously were handled within the organization. This has resulted in many support functions such as Human Resource, Research and Development and Marketing being done by low cost companies located anywhere in the world.
Looking at all of these trends in the business sector all over the world, I think that the government should provide support to the entrepreneurs within the economy. The extent of support that needs to be provided should be determined as entrepreneurs are people who like to run their business themselves. They do not like interference within their business. One of the important points of the government encouraging entrepreneurship is that it encourages economic growth within the economy, i.e. the easier the government makes it for individuals to start a business the more small businesses start.
The government has a large impact on how the economy functions. They infrastructure and the facilities that are provided by the government can be extremely helpful to somebody who wants to start a new business or is thinking about expansion. The most basic help that the government can provide entrepreneurs is by providing them with finance. In the US, the SBA, i.e. Small Business Association has been formed which helps entrepreneurs find the finance that they need. The SBA does not have the funds to give out this money instead they become a guarantor for the entrepreneur. The banks are then more forthcoming knowing that the entrepreneur is being backed by the SBA. (Strauss, S. 2006)
The next important thing that the government should do is encourage those people who have already made the effort by giving them awards. A proper framework should be developed in terms of tax policies and the regulatory environment. This helps make things clearer when starting the business. Also by lowering the tax rates for investments in training and education and by offering tax credits, the government can provide significant help.
All these methods should be there to support the entrepreneurs, not to actually run the business for them. The government should not let the small businesses fight it out in the market because they are bound to fail when they come face to face with the multinationals. On the other hand, the government should not protect them for a very long period. The support and the help that is provided should be in the initial stages when the company is starting or when there is a major change in the structure.
Cognitive Adaptability
I applied the compression questions, connection questions, strategy questions, and reflection questions to a task that I performed a few days ago. The task consisted of doing my chores around the house. Normally my chores include doing the laundry, laying the dinner table mowing the lawn and washing the dinner dishes. Mowing the lawn and the laundry need to be done on a weekly basis while, washing the dinner dishes and laying the table are done by me on a daily basis. I was doing all these tasks when I applied the compression questions, connection questions, strategy questions, and reflection questions. Doing all these tasks takes me 2 hours but with the help of these questions, I easily did the work more quickly and efficiently. I did not waste time.
At other times, I try and avoid doing as much work as possible. Also when Im doing the laundry, I would read a magazine or book so that my time would pass easily. This time, I thought of laying the table while the clothes were in the machine. This saved me on a lot of time, and made my work much easier. I could get more things done in the same amount of time and with less effort.
When I was performing the task, I started to apply these questions. With the help of these questions, I was able to plan the task more properly. I knew what I had to do next, instead of just going about the work I organized all the tasks in such a manner that they formed a work flow. With the help of the compression questions, I was able to avoid any unnecessary work which may have consumed time.
These questions made me think about the task and why we need to do this work. There were many other questions which came to my mind. These questions included things such as why we needed to do all these chores why is there no alternate method is living alone better as all these chores could be avoided and other such things.
I realized that we all need to do some chores around the house so that we stay in touch with reality, also because no one person is burdened with the entire house work load. If it was just one person doing all the work, then the other people living in the house would never realize the amount of effort that needs to be put in. This is one of the major reasons that stay at home mothers are taken for granted. The children and even the husbands do not realize all the effort it goes in cooking a meal and keeping the house clean.
Having some responsibility around the house makes things easier for each individual and gives all household members their due respect. Nobody is taken for granted and the work is done in a friendly manner.
Gender and Entrepreneurship
To fail to pay attention to womens economic activities is both morally indefensible and economically absurd. (Bradford Morse, United Nations Development Program)
In todays world, it is important to consider the role of women and their contribution to the economy of ones country. Although the number of male entrepreneurs still exceed from their female counterparts, it is vital to why they are emerging and what the reasons are for this shifting trend.
Despite the legislative effort women are still facing discrimination in the corporate workforce. This is a major reason why there has been an increase in small businesses being run by women. In the USA the most popular areas of growth are construction, transportation, communications, agribusiness, and manufacturing. (National Association of Women Business Owners)
Women play an extremely important role as entrepreneurs in the U.S., Canada as well as the United Kingdom. This is because these economies have a more individualistic culture that allows both men and women entrepreneurs to start their businesses on equal grounds. In less fortunate countries as well as mostly Asian countries fewer women are part of the growth in the entrepreneur sector. This could be for many reasons both social and economical.
One scholar quotes,
Entrepreneurs in an individualistic society may have scanning and decision scripts tailored to finding opportunities that they, personally, can take advantage ofEntrepreneurs in a collective society may have scanning and decision scripts tailored to opportunities that a group or consortium can take advantage of these opportunities would involve coordination, collaboration. (Mitchell, R.K., Smith, B, Seawright, K.W., and Morse, E.A. 2000)
There are always differences in the companies that are started by women and companies that have been started by men. Businesses owned by women tend to grow at a smaller rate than men but grow with a steady pace. They also have a high survival rate in the US than other businesses overall.
Another major difference is during the start up stage. Women usually face more barriers than men and one of these barriers is the limited access to the capital. Women generally rely on their personal savings or family loans. Loans and government grants tend to be more accessible to men than women. There could be many explanations such as that it is possible that they might be reluctant to participate in such activities due to fear facing bias in the share of such start-up financing. Another possible reason could be that the kind of business women do requires less startup investment therefore become less capital intensive than their male counterparts due to the nature of the businesses that they like to open such as service businesses.
This shows that it is time that the Governments throughout the world recognize the importance of women entrepreneurs and give them the right kind of council and forum for the growth of their businesses. These small businesses play a very important role in the economies of both Eastern and Western economies. Mediums such as online businesses and home based businesses have given women more opportunities to be both professionals and home owners.
Case Study
Ray is facing problems with the locksmith business that he started. The main issue with his type of business is that most of the locksmith firms that exist are on a small scale level. They tend to provide services within their hometown and consist of only the owner with one employee. There are not many barriers to entry and anybody can become a locksmith. Another problem with this type of business is that the customers tend to be loyal, i.e. they stick to the locksmith that they have been using, until or unless there is an emergency and they cannot get hold of their original locksmith.
Most of the locksmiths are advertising in the yellow pages, they are not using any other form of advertisements and promotional activities. Also the type of service that is being provided by the locksmiths is the same. Ray has the advantage of previous experience, i.e. his work experience with a security and alarm manufacturer.
We can see that Ray wants to be an entrepreneur because he wants to be his own boss and not work for somebody else, but he lacks the effort that needs to be put in to make the business work. Ray is not thinking out of the box. He is just doing what he sees the competition doing only he tries to be on top, by copying them. Both of Rays parents were an entrepreneur, which means that he does have the gene to start something new and become an entrepreneur himself.
The product that Ray is offering is pretty standard and not very different. Ray should try and include something different, such as some new types of locks which are not available in the local market. Also he should try and introduce basic alarm systems. Another product that Ray can keep with him is the fixtures and fittings of locks, such as door handles. These products provide something extra to the customer. This will help increase the variety of products that are provided by him and may help him gain a competitive edge over the other locksmiths in the area.
Ray usually switches off his phone after 5 pm. He should try and avoid doing that because there are many emergency calls which come in after that time. He should leave his phone on. He can avoid working on weekends so that he gets some time off but on the weekdays he should be available 22 hours, just like the competition.
Ray has advertised in the yellow pages and his advertisement does come at the top of the page but there is not much difference from the other advertisements that appear. All of them are offering the same services to the customer. Ray should try and come up with a new aspect of the business which should be focused upon. For example Ray should advertise on his quick service and being able to get to the customer on time along with all the other things which are mentioned already.
Also, he should take a more proactive approach about his business. He can ask his current customers to refer him to other people so that his customer base increases. Word of mouth marketing is one of the best strategies as it comes with trust in somebody.
Ray should concentrate on his business and try and come up with some new marketing techniques which can help increase sales. As there is not much that can be done in the locksmith business, Ray can look for other areas into which he can expand his business. Also he can be creative in providing solutions to his customers which will last longer. This will create a better reputation in the market for his business.
Interview of an Entrepreneur
The three entrepreneurs that I interviewed for this assignment were Mr. Mazhar Noor, Mr. Osman Iqbal and
Mr. Khalid Hakim.
Mr. Mazhar Noor has a restaurant by the name of Hot Bites this restaurant has been operational for about 2 years now. When I questioned him about what characteristics are necessary to make an entrepreneur successful, he mentioned the following five characteristics patience, street smartness, being able to change with time, understanding the employees and understanding the market.
All these characteristics relate to entrepreneurs because the entrepreneur needs to understand the business he is in. Market research needs to be carried out even if it is at a very basic level. Employees are the most important part of any business and understanding them is of vital importance. Considering the business that Mr. Mazhar Noor is in, it is imperative to understand the customer and his wants because he needs to serve the needs of the customer. Also, sometimes customers can be very unbearable, especially when they start complaining. To deal with them at such times, the entrepreneur needs to exert all the patience that he has.
Mr. Osman Iqbal manages a football club by the name of KJFC. When asked the same question, he replied that an entrepreneur needs to be flexible, adaptive, proactive, good salesman and energetic. The characteristics mentioned by him are applicable to entrepreneurs because an entrepreneur needs to know what will happen to the market or at least he should be able to predict.
With the help of this ability he can change his strategy accordingly. Also the entrepreneur needs to be adaptive to change in the market, if something new has been introduced, the entrepreneur should not hesitate in using this new technology. It might help in achieving efficiency. Being energetic means being able to put in longer hours at work and not getting tired easily. For Mr. Osman it means, being able to teach football to the children without getting tired.
Mr. Khalid Hakim owns a security agency by the name of Panther. He provides security equipment and guards for commercial and residential purpose. When interviewed and asked the same question, he replied that an entrepreneur needs to be confident in his ability to manage the business and succeed, be a good organizer, have an orientation towards the future, be committed to the business and lastly, be able to work with less information, i.e. be tolerant towards ambiguity.
All these characteristics are important for an entrepreneur because it is not always that the entrepreneur has all the information available easily. There are times when a decision has to be made based on incomplete information, thus the entrepreneur should be able to take that decision. Being a good organizer helps in completing tasks on time and planning for the future. It gives the business a proper flow and makes it easier to understand what needs to be done when. Being future oriented means that the entrepreneur is setting long term goals for himself. This will have an effect on the decisions that are made today and the strategies that are adopted. All entrepreneurs need to be committed towards their business and work otherwise it will not be successful. All new businesses require a very high level of commitment from the entrepreneur.
In the globalized world of today, when standardization has become the norm it is the small business owners and the entrepreneurs who are customizing the products and fulfilling the specific needs of the people. Also, globalization has resulted in outsourcing many functions of the business which previously were handled within the organization. This has resulted in many support functions such as Human Resource, Research and Development and Marketing being done by low cost companies located anywhere in the world.
Looking at all of these trends in the business sector all over the world, I think that the government should provide support to the entrepreneurs within the economy. The extent of support that needs to be provided should be determined as entrepreneurs are people who like to run their business themselves. They do not like interference within their business. One of the important points of the government encouraging entrepreneurship is that it encourages economic growth within the economy, i.e. the easier the government makes it for individuals to start a business the more small businesses start.
The government has a large impact on how the economy functions. They infrastructure and the facilities that are provided by the government can be extremely helpful to somebody who wants to start a new business or is thinking about expansion. The most basic help that the government can provide entrepreneurs is by providing them with finance. In the US, the SBA, i.e. Small Business Association has been formed which helps entrepreneurs find the finance that they need. The SBA does not have the funds to give out this money instead they become a guarantor for the entrepreneur. The banks are then more forthcoming knowing that the entrepreneur is being backed by the SBA. (Strauss, S. 2006)
The next important thing that the government should do is encourage those people who have already made the effort by giving them awards. A proper framework should be developed in terms of tax policies and the regulatory environment. This helps make things clearer when starting the business. Also by lowering the tax rates for investments in training and education and by offering tax credits, the government can provide significant help.
All these methods should be there to support the entrepreneurs, not to actually run the business for them. The government should not let the small businesses fight it out in the market because they are bound to fail when they come face to face with the multinationals. On the other hand, the government should not protect them for a very long period. The support and the help that is provided should be in the initial stages when the company is starting or when there is a major change in the structure.
Cognitive Adaptability
I applied the compression questions, connection questions, strategy questions, and reflection questions to a task that I performed a few days ago. The task consisted of doing my chores around the house. Normally my chores include doing the laundry, laying the dinner table mowing the lawn and washing the dinner dishes. Mowing the lawn and the laundry need to be done on a weekly basis while, washing the dinner dishes and laying the table are done by me on a daily basis. I was doing all these tasks when I applied the compression questions, connection questions, strategy questions, and reflection questions. Doing all these tasks takes me 2 hours but with the help of these questions, I easily did the work more quickly and efficiently. I did not waste time.
At other times, I try and avoid doing as much work as possible. Also when Im doing the laundry, I would read a magazine or book so that my time would pass easily. This time, I thought of laying the table while the clothes were in the machine. This saved me on a lot of time, and made my work much easier. I could get more things done in the same amount of time and with less effort.
When I was performing the task, I started to apply these questions. With the help of these questions, I was able to plan the task more properly. I knew what I had to do next, instead of just going about the work I organized all the tasks in such a manner that they formed a work flow. With the help of the compression questions, I was able to avoid any unnecessary work which may have consumed time.
These questions made me think about the task and why we need to do this work. There were many other questions which came to my mind. These questions included things such as why we needed to do all these chores why is there no alternate method is living alone better as all these chores could be avoided and other such things.
I realized that we all need to do some chores around the house so that we stay in touch with reality, also because no one person is burdened with the entire house work load. If it was just one person doing all the work, then the other people living in the house would never realize the amount of effort that needs to be put in. This is one of the major reasons that stay at home mothers are taken for granted. The children and even the husbands do not realize all the effort it goes in cooking a meal and keeping the house clean.
Having some responsibility around the house makes things easier for each individual and gives all household members their due respect. Nobody is taken for granted and the work is done in a friendly manner.
Gender and Entrepreneurship
To fail to pay attention to womens economic activities is both morally indefensible and economically absurd. (Bradford Morse, United Nations Development Program)
In todays world, it is important to consider the role of women and their contribution to the economy of ones country. Although the number of male entrepreneurs still exceed from their female counterparts, it is vital to why they are emerging and what the reasons are for this shifting trend.
Despite the legislative effort women are still facing discrimination in the corporate workforce. This is a major reason why there has been an increase in small businesses being run by women. In the USA the most popular areas of growth are construction, transportation, communications, agribusiness, and manufacturing. (National Association of Women Business Owners)
Women play an extremely important role as entrepreneurs in the U.S., Canada as well as the United Kingdom. This is because these economies have a more individualistic culture that allows both men and women entrepreneurs to start their businesses on equal grounds. In less fortunate countries as well as mostly Asian countries fewer women are part of the growth in the entrepreneur sector. This could be for many reasons both social and economical.
One scholar quotes,
Entrepreneurs in an individualistic society may have scanning and decision scripts tailored to finding opportunities that they, personally, can take advantage ofEntrepreneurs in a collective society may have scanning and decision scripts tailored to opportunities that a group or consortium can take advantage of these opportunities would involve coordination, collaboration. (Mitchell, R.K., Smith, B, Seawright, K.W., and Morse, E.A. 2000)
There are always differences in the companies that are started by women and companies that have been started by men. Businesses owned by women tend to grow at a smaller rate than men but grow with a steady pace. They also have a high survival rate in the US than other businesses overall.
Another major difference is during the start up stage. Women usually face more barriers than men and one of these barriers is the limited access to the capital. Women generally rely on their personal savings or family loans. Loans and government grants tend to be more accessible to men than women. There could be many explanations such as that it is possible that they might be reluctant to participate in such activities due to fear facing bias in the share of such start-up financing. Another possible reason could be that the kind of business women do requires less startup investment therefore become less capital intensive than their male counterparts due to the nature of the businesses that they like to open such as service businesses.
This shows that it is time that the Governments throughout the world recognize the importance of women entrepreneurs and give them the right kind of council and forum for the growth of their businesses. These small businesses play a very important role in the economies of both Eastern and Western economies. Mediums such as online businesses and home based businesses have given women more opportunities to be both professionals and home owners.
Case Study
Ray is facing problems with the locksmith business that he started. The main issue with his type of business is that most of the locksmith firms that exist are on a small scale level. They tend to provide services within their hometown and consist of only the owner with one employee. There are not many barriers to entry and anybody can become a locksmith. Another problem with this type of business is that the customers tend to be loyal, i.e. they stick to the locksmith that they have been using, until or unless there is an emergency and they cannot get hold of their original locksmith.
Most of the locksmiths are advertising in the yellow pages, they are not using any other form of advertisements and promotional activities. Also the type of service that is being provided by the locksmiths is the same. Ray has the advantage of previous experience, i.e. his work experience with a security and alarm manufacturer.
We can see that Ray wants to be an entrepreneur because he wants to be his own boss and not work for somebody else, but he lacks the effort that needs to be put in to make the business work. Ray is not thinking out of the box. He is just doing what he sees the competition doing only he tries to be on top, by copying them. Both of Rays parents were an entrepreneur, which means that he does have the gene to start something new and become an entrepreneur himself.
The product that Ray is offering is pretty standard and not very different. Ray should try and include something different, such as some new types of locks which are not available in the local market. Also he should try and introduce basic alarm systems. Another product that Ray can keep with him is the fixtures and fittings of locks, such as door handles. These products provide something extra to the customer. This will help increase the variety of products that are provided by him and may help him gain a competitive edge over the other locksmiths in the area.
Ray usually switches off his phone after 5 pm. He should try and avoid doing that because there are many emergency calls which come in after that time. He should leave his phone on. He can avoid working on weekends so that he gets some time off but on the weekdays he should be available 22 hours, just like the competition.
Ray has advertised in the yellow pages and his advertisement does come at the top of the page but there is not much difference from the other advertisements that appear. All of them are offering the same services to the customer. Ray should try and come up with a new aspect of the business which should be focused upon. For example Ray should advertise on his quick service and being able to get to the customer on time along with all the other things which are mentioned already.
Also, he should take a more proactive approach about his business. He can ask his current customers to refer him to other people so that his customer base increases. Word of mouth marketing is one of the best strategies as it comes with trust in somebody.
Ray should concentrate on his business and try and come up with some new marketing techniques which can help increase sales. As there is not much that can be done in the locksmith business, Ray can look for other areas into which he can expand his business. Also he can be creative in providing solutions to his customers which will last longer. This will create a better reputation in the market for his business.
Interview of an Entrepreneur
The three entrepreneurs that I interviewed for this assignment were Mr. Mazhar Noor, Mr. Osman Iqbal and
Mr. Khalid Hakim.
Mr. Mazhar Noor has a restaurant by the name of Hot Bites this restaurant has been operational for about 2 years now. When I questioned him about what characteristics are necessary to make an entrepreneur successful, he mentioned the following five characteristics patience, street smartness, being able to change with time, understanding the employees and understanding the market.
All these characteristics relate to entrepreneurs because the entrepreneur needs to understand the business he is in. Market research needs to be carried out even if it is at a very basic level. Employees are the most important part of any business and understanding them is of vital importance. Considering the business that Mr. Mazhar Noor is in, it is imperative to understand the customer and his wants because he needs to serve the needs of the customer. Also, sometimes customers can be very unbearable, especially when they start complaining. To deal with them at such times, the entrepreneur needs to exert all the patience that he has.
Mr. Osman Iqbal manages a football club by the name of KJFC. When asked the same question, he replied that an entrepreneur needs to be flexible, adaptive, proactive, good salesman and energetic. The characteristics mentioned by him are applicable to entrepreneurs because an entrepreneur needs to know what will happen to the market or at least he should be able to predict.
With the help of this ability he can change his strategy accordingly. Also the entrepreneur needs to be adaptive to change in the market, if something new has been introduced, the entrepreneur should not hesitate in using this new technology. It might help in achieving efficiency. Being energetic means being able to put in longer hours at work and not getting tired easily. For Mr. Osman it means, being able to teach football to the children without getting tired.
Mr. Khalid Hakim owns a security agency by the name of Panther. He provides security equipment and guards for commercial and residential purpose. When interviewed and asked the same question, he replied that an entrepreneur needs to be confident in his ability to manage the business and succeed, be a good organizer, have an orientation towards the future, be committed to the business and lastly, be able to work with less information, i.e. be tolerant towards ambiguity.
All these characteristics are important for an entrepreneur because it is not always that the entrepreneur has all the information available easily. There are times when a decision has to be made based on incomplete information, thus the entrepreneur should be able to take that decision. Being a good organizer helps in completing tasks on time and planning for the future. It gives the business a proper flow and makes it easier to understand what needs to be done when. Being future oriented means that the entrepreneur is setting long term goals for himself. This will have an effect on the decisions that are made today and the strategies that are adopted. All entrepreneurs need to be committed towards their business and work otherwise it will not be successful. All new businesses require a very high level of commitment from the entrepreneur.
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