Evolution and dos and donts OF ENTREPRENEURSHIP

volution and dos and donts OF ENTREPRENEURSHIP

1. EVOLUTION OF ENTREPRENEURSHIP

2. EVOLUTION OF ENTREPRENEURSHIP  is one of the four mainstream economic factors – land , labor , capital, and entrepreneurship. During 14th century references speak about tax contractors – individuals who paid a fixed some of money to a government for the license to collect taxes in their the region known as tax contractors , they used to take risk of collecting taxes if they collected more than the sum paid for their licenses, they made profits and kept the excess. The concept of entrepreneurship was existing in 17th century was a common topic in economic essays for much of the 18th and 19th century . Let us read about how it has evolved as one of the factor of production over a period of time.

3. Joseph Aloysius  Schumpeter (1934) - An entrepreneur is an innovator. Schumpeter considered economic development as discrete dynamic change. J.B.Says :- entrepreneur is the most important agent of production . Simply an entrepreneur is one who combine the land of one, the labor of another and the capital of yet another and thus produce a product. David Ricardo : He didn’t assign any important role to entrepreneurship for economic development of a country . Acc to him ,”profit leads to saving of wealth, which ultimately goes to capital formation and leads to economic development.

4. Concept of Entrepreneurship Entrepreneurship  is the tendency of person to organize the business of his own and to run it profitably , using all the qualities of leadership , decisions making and managerial caliber etc. Entrepreneurship involves not only the process that leads to the setting up of a business entity but also the expansion and development of an on going concern. The study of entrepreneurship is concerned with the entrepreneurial behavior, the dynamics of business set up and expansion and development. The term “entrepreneur” is often used interchangeably with “entrepreneurship” . But conceptually they are different.

5. Acc. to A.H.Cole , “ entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate , maintain or organize a profit-oriented business unit for the production or distribution of economic goods and services”. Acc. to H.N Patak , “entrepreneurship involves a wide range of area on which series of decisions are required which can be grouped into three categories :- ( i ) perception of an opportunity (ii) organizing an industrial unit and (iii) running the industrial unit as a profitable , going and growing concern.”

6. DO AND DON’TS OF ENTREPRENEURSHIP The Do’s • Network and Build Professional Relationships:  Networking helps you get in touch with all the stakeholders who form the basis of your business. Get in touch with customers, vendors, potential investors, fellow entrepreneurs and future partners. Networking goes beyond the immediate connections. Having professional camaraderie and relationships within your network can earn you brownie points in the future through mutual connections and recommendations.

7. Take Risks:  T.S. Eliot said, “Only those who will risk going too far can possibly find out how far it is possible to go”. Taking risks builds you as a leader and gives you an advantage in this competitive business world. It helps you come up with innovative ideas, implement new strategies and challenge the status quo. All it takes is one home run to make it big. • Recognize and Learn from Your Mistakes:  Each business has its own journey, success path and failure trail. Learning from business mistakes enables an entrepreneur to forecast the plausible problems and even have contingency plans to counter them in the future. The first step though, involves recognizing and admitting the mistakes to recover from trouble. Once the problem is recognised , don’t fear it but learn to embrace it and learn from the mistake.

8. Be Open to Feedback:  Feedback can be metaphorically associated with medicine. It does not taste good but if you consume it, it may put you on the path of a cure. Similarly, receiving a negative comment on your work might be disheartening but in the pursuit of perfection, one may fail to see the perspective of another person. It is important to understand various view points from fresh angles and implement their feedback to create a collaborative environment.

9. The Don’ts Don’t be Impatient:  Rome was not built in a day and similarly one should not expect success overnight. It takes endless hours of labour , sleepless nights and hundreds of rejections to possibly even get close to the goal. Irrespective of all the hurdles entrepreneurs face, the key is to stay focused on the long-term vision and not let the hurdles waver the determination to succeed.   Don’t Over analyze:  Once a decision has been taken, don’t over analyze and overthink by going down the path of self-doubt. Entrepreneurs tend to pick apart every aspect of each option and wonder whether they did right by their company. Making a rational choice is valuable but nothing good is achieved with the “analysis paralysis”. Make informed decisions and when that step is taken care of, stick to the decisions taken. This plays a vital role in the subsequent stages when future decisions need to be altered to reach a final goal.

10.  Don’t Forget Your Roots:  A little fame and success may get us around for a while but these two things do not accompany us till the end. Embracing your true self and not letting other things overwhelm you during this phase can keep you sane in the future. More often than not entrepreneurs lose track of what is important to the point where they put on the shoes of someone else permanently. Don’t forget your roots because it is a permanent part of you. We as individuals have the capability to change our future, destiny and maybe even our lives through hard work and determination yet one cannot alter their roots. These roots keep us grounded and define us in very special and unique ways.

11. CREATIVITY IN ENTREPRENEURSHIP CREATIVITY Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others and entertaining ourselves and others. A process of assembling ideas by recombining elements already known but wrongly assumed to be unrelated to each other. This definition has several key elements that are worth considering:

12. Process: Creativity is also a process (implying, among other things, that it is more like a skill than an attitude, and that you can get better at it with practice). Ideas: Creativity results in ideas that have potential value. Recombining: The creative process is one of putting things together in unexpected ways

13. THE CREATIVE PROCESS STEPS IN THE CREATIVE PROCESS Opportunity or Problem Recognition: A person discovers that a new opportunity exists or a problem needs resolution. Immersion: The individual concentrates on the problem and becomes immersed in it. He or she will recall and collect information that seems relevant, dreaming up alternatives without refining or evaluating them. Incubation: The person keeps the assembled information in mind for: a while. He or she does not appear to be working on the problem actively; however, the subconscious mind is still engaged. While the information is simmering it is being arranged into meaningful new patterns. Insight: The problem-conquering solution flashes into the person's mind at an unexpected time, such as on the verge of sleep, during a shower, or while running. Insight is also called the Aha! Or Eureka! Experience. Verification and Application: The individual sets out to prove that the creative solution has merit. Verification procedures include gathering supporting evidence, using logical persuasion, and experimenting with new ideas.

14. PERSONALITY TRAITS OF  CREATIVE PEOPLE Persistence Self-confidence Independence Attraction to complexity Tolerance of ambiguity Intuitiveness Have broad interests Are energetic Drive to achieve Love their work Take risks

15. BARRIERS TO CREATIVITY Excessive focus on extrinsic motivation Limits set by superiors Close, controlling supervision Competition in a win-lose situation Control of information Becoming overly specialized Fearing looking foolish Fearing mistakes and failure

16. SUMMARY AND CONCLUSION   The change that entrepreneurs bring about is through creativity. Therefore, it is not surprising to see that entrepreneurs are among the more creative players of organizational change. Creativity requires someone (like an entrepreneur) to add value in the marketplace through the innovation process. From the idea generation to the successful product development and launch, innovation is the seed-bed for change. Charged with the coordination of the innovation process are the entrepreneurs. It is the job of the entrepreneurs to be creative in identifying the gap in the market and innovate a product to fill this gap.