Entrepreneur

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The Decision Making Process

Published February 6, 2015 by Mayrbear's Lair

decision-making

(Reposted from May 15, 2013)

Introduction

Decision making is an essential part of entrepreneurship that affects numerous elements in operating a business. It is in an entrepreneur’s best interests to possess the skills to help them reach the best decisions available to insure the soundest opportunity for success. Low (2010) contends entrepreneurs play an important role in the economy with three major components that affect their decision making process: (a) the vision and operation of the venture; (b) the uncertainty and risks they confront; and (c) the innovation process or reallocation of resources (Low, 2010, p. 5). In addition, incorporating the necessary business acumen can: 1) influence political agendas; 2) help avoid violation of legal and regulatory issues that can yield outcomes with extreme consequences; 3) play an important role in cultural perceptions; 4) influence the demographic diversity of an industry; and 5) have a huge impact on the financial resources that affects the operation of a business.

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Demographic Diversity

A proprietor’s decision making process can also effect the demographic diversity of an organization. For example, when Virgin Company’s entrepreneurial giant, Sir Richard Branson (2012) was contemplating whether Virgin branch out to launch a new airline, he was advised to avoid certain competitors due to costs and for fear of going up against industry giants. He realized he was up against goliaths with sizable fleets, experienced staff, and strengths from holding huge portions of market share.  Branson’s intuition however, and personal grievances from traveling, kept focused on competitor complacency. He was passionate about creating a better flying experience and knew others felt the same.  With this energy and tunnel vision, Virgin Atlantic was introduced and made their mark in history (Branson, 2012).

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Legal and Regulatory Issues

Each year the US Supreme Court issues actions that constitute new litigation due to failed businesses because of gaps in legal insight in the decision-making process by leaders (Bardwell, 2009). For example, during my employment at Capitol Records, the organization expanded into the music video production market and created a new division called Picture Music International (PMI). This event constituted the rearrangement of senior executives in key positions who were disbursed in helm positions within the structural organization. The changes occurred quickly in an attempt to create a smooth transition while maintaining operations. As a result, important components were overlooked and errors were made due to communication barriers from the rapid transit.  In the process, a contractual renewal date for an important artist went undetected. The new senior executive did not negotiate the original contract and was therefore not cognizant of the issue. The artist’s legal representatives allowed the contract to expire and the artist signed to a competitive label. Because of the gap in legal insight, the oversight resulted in the forfeiture of a major industry player, and in the eyes of the shareholders, perceived as an embarrassing loss.

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Political Agendas and Cultural Perceptions

Steyaert (2000) purports the role of entrepreneurship in the modern era is far larger than previously considered and is closely involved with economics.  Entrepreneurship is viewed as an economic phenomenon, with innovative power that extends beyond its own economic ambitions and requires the examination of its political and ethical effects (Steyaert, 2000). For example, when a firm is exposed for polluting, activists use this opportunity to pursue political agendas.  In the meantime, scholars explore factors that determine how entrepreneurs help economies grow as a result of psychological approaches to an enterprise (Thornton, Robeiro-Soriano, & Urbano, 2011). Take for example the culture Starbucks created. Prior to its genesis, Americans were used to having coffee in diners or restaurants for under a dollar.  Starbucks vision focused on drinking coffee as a reason to socialize. In doing so they created a culture where consumers are happy to pay premium prices to partake in the Starbucks experience. This culture translates into enormous profits and a worldwide phenomenon that includes a Starbuckian dialect.

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Financial Resources

Financial advisors understand that cash flow is also an important component business owners require to make sound financial decisions to ensure growth and survival. A company with solid liquidity is not only able to meet short term financial obligations, but also has accumulated enough equity to take advantage of alluring business strategies as they expand (Cory, Envick, & Patton, 2011). For example, with each success Capitol Records enjoyed from an extensive catalog that includes the Beatles, Neil Diamond, Tina Turner, David Bowie and Kenny Rogers, UK based parent company, Thorn-EMI continued to incur huge revenues that allowed them to expand into other fields. However, for every successful venture, there are also ventures that fail and become corporate tax write-offs. In this aspect, the decision making process can result in failure and loss of revenue.

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Conclusion

Sir Richard offers the following tips that have helped in his decision making: (a) trust your instincts, (b) focus on your customers, not your critics, (c) always support your team, and (d) know when to say goodbye (Branson, 2012). In conclusion, the most important reason decision making is an essential skill for entrepreneurship, is that a wrong choice can become the game changer that makes or breaks an organization.

That’s a wrap for this week! Until next time … Keep organizing your systems!

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Most of us are going through life without interrogating whether our decision-making processes are fit for purpose. And that’s something we need to change – especially when the stakes are high and the decisions are of real import. – Noreena Hertz

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References

Bardwell, S. (2009, January 1). Legal insight decision making for small business and entrepreneurs: A judicious approach. Retrieved February 28, 2013, from Freepatentsonline: http://www.freepatentsonline.com/article/Entrepreneurial-Executive/219010996.html

Branson, R. (2012, February 7). Richard Branson on decision-making for entrepreneurs. Retrieved February 28, 2013, from Entrepreneur.com: http://www.entrepreneur.com/article/222739

Cory, S., Envick, B., & Patton, E. (2011, January 1). Sound financial decision making for entrepreneurs: can the GAAP cash flow statement mislead? Entrepreneurial executive. US: The DreamCatchers Group, LLC. Retrieved February 28, 2013, from http://www.freepatentsonline.com/article/Entrepreneurial-Executive/263157521.html

Low, S. (2010). Defining and measuring entrepreneurship for regional research: A new approach. ProQuest dissertations and theses; 2009; ProQuest entrepreneurship. Urbana, IL, USA: ProQuest LLC. Retrieved February 28, 2013

Steyaert, C. (2000, June 18). Creating worlds: Political agendas of entrepreneurship. Nordic conference on small business research. Aarhus, Denmark: ProQuest, LLC. Retrieved February 28 2013, 2013

Thornton, P., Robeiro-Soriano, D., & Urbano, D. (2011). Socio-cultural factors and entrepreneurial activity: An overview. International small business journal. Barcelona, Spain: Sage. Retrieved February 28, 2013

Entrepreneurial Technological Innovations

Published April 5, 2013 by Mayrbear's Lair

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The technological innovations of entrepreneurs often occur as a result of challenges or severe circumstances they face.  For example, the Manhattan Project was established in 1941 to create the atomic bomb before Nazi Germany could achieve the same goal.  In addition, when the US embarked on a mission to put a man on the moon, the impetus for this innovation was to achieve the accomplishment before the USSR.  According to Thorp and Goldstein (2010), resources available for discovering new approaches in innovation are unprecedented at this time in human history and although markets are unpredictable and technologies evolve, the basic dynamics remain constant across industries, countries, and time (Thorp & Goldstein, 2010).

Change Management Process

Four Basics of Change

Even though inertia and the status quo can undermine the need for modernizations, entrepreneurial technological innovations often occur to overcome challenges.  Pool and Van de Ven (2004) postulate that change comes in many forms: (a) planned, (b) unplanned, (c) incremental or radical, and (d) recurrent or unprecedented. They contend that innovations are created out of four basic models that encourage transformation: (1) a lifecycle model that depicts the process through a sequence of stages with a logical pattern; (2) a teleological model that views development as a cycle of goal formulation, implementation, evaluation and modification of actions; (3) a characteristic model of development derived from conflicts that emerge between entities espousing opposing views that collide to produce a synthesis; and (4) an evolutionary model that consists of a repetitive sequence of variables and retention events in a designated population, generated by competition from a scarcity in resources (Poole & Van de Ven, 2004). These models represent the motors that can drive advances in technology.

Five Step Diagram

Five Step Planning Process

Entrepreneurs that conform to policies which encourage effective technological innovation can help reduce their chance of organizational failure. Pool et al. (2000) endorse a five-step plan to help guide technological innovations for business operations. This includes: (1) preplanning with support in the formation of a cohesive team to identify and examine competitive technology; (2) an analysis and assessment of needs; (3) prioritizing challenges with alternative methods of resolution; (4) the design of a program that responds to obstacles identified; and (5) the implementation of the new technology, including evaluation and fine-tuning to insure continuous business operations (Poole, Van de Ven, Dooley, & Holmes, 2000). This process can also help manage workforce fears and assists to avert creative disruption concerns from individuals who detest technological innovations, believe their job is threatened, or experience anxiety from training on new systems. When entrepreneurs encounter issues, the most effective leaders welcome them as opportunities to expand and with effective communication they employ strategies that inspire creative solutions.

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Creating the Right Strategy

Entrepreneurial innovations also take on substantial risks in an effort to make advances in technology. Establishing an effective strategy and vision that clarifies a purpose for the technological innovation is essential for long term success.  Tactics may include significant motivational properties to provide staff members a sense that, in spite of the advances in technology, their efforts and manual labor are still appreciated and their role with the organization is of consequence (O’Reilly & Tushman, 2002). For example, an organizational leader at a prominent grocery store chain may encounter issues about concerns over dismissal and cut backs from check-out clerks as a result of new technological advances in the self-checkout cash register systems the firm incorporated. Personnel job security can be assured from leaders by scheduling an organizational team meeting to discuss and explain their innovative maneuvers. This gives the principals an opportunity to manage personnel fears and offer clarity in support of the change, accentuating it as a welcomed addition to the organization, not an elimination of staff.  When employees understand an innovation acts as an aid intended to create smoother customer in and out flow, staff members can become more enthusiastic and supportive. Furthermore, once workers realize the technological advances will require additional employee supervision, staffers can relax and embrace the innovation, perhaps even discover other benefits the upgrade provides.

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Conclusion

O’Reilly and Tushman (2002) contend that success does not need to be paralyzing. Transformation can occur through proactive innovation and strategic change. Successful entrepreneurs recognize that inspiration and sustainable staff commitment comes from an understanding that worker’s efforts contribute to something bigger and worthwhile (O’Reilly & Tushman, 2002). Indeed, while inertia and the status quo can undermine the need for technological innovation, entrepreneurial innovations emerge from a desire to make a difference in the world, or solve an important dilemma. Innovative entrepreneurs that emphasize values like customer service, quality products, and teamwork, where there is respect and the personnel feel valued, cultivate an atmosphere of committed individuals who aspire to achieve higher goals and will gravitate naturally into an organizational fit.

References

O’Reilly, C., & Tushman, M. (2002). Winning through innovation: A practical guide to leading organizational change and renewal. Boston, MA: Harvard Business School Publishing Corporation.

Poole, M., & Van de Ven, A. (2004). Handbook of organizational change and innovation. New York, NY: Oxford University Press, Inc.

Poole, M., Van de Ven, A., Dooley, K., & Holmes, M. (2000). Organizational change and innovation processes: Theory and methods for research. New York, NY: Oxford University Press.

Thorp, H., & Goldstein, B. (2010). Engines of innovation. Chapel Hill, NC: University of North Carolina Press.

Entrepreneurial Dilemmas

Published March 29, 2013 by Mayrbear's Lair

entrepreneur-dilemma

Not every individual is cut out for entrepreneurship. Although to many it sounds quite exciting, others may describe it as nerve-wrecking, challenging, time-consuming, unpredictable, and overpowering. Entrepreneurs will face dilemmas in many aspects of the business problem-solving process including: maintaining inventory and cash flow; hiring and firing employees; establishing exemplary customer service; and managing technology (Strauss, 2012).  For example, one challenge we recently faced in our organization was upgrading our creative design software to keep current in the competitive market. Based on the current funds available as a young startup, this presented an opportunity to develop a creative solution. Rather than make a costly investment, the strategy applied was to lease the software at a monthly rate from a new streaming technology the software company makes available through their IT services.

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Every decision an entrepreneur is required to make will give the founder an opportunity to assess multiple options, especially when making critical decisions. Because of this, Wasserman (2012) suggests creating a disaster plan. By putting in writing a plan of action for worse-case scenarios, like irresolvable business conflicts or the dissolution of an organization, helps entrepreneurs define who has the final decision in an impasse (Wasserman, 2012). For example, an organization whose two founding members discover are no longer an organizational fit and want to separate will have to find a way to do so amicably. Having created a disaster plan will serve to make the transition a smoother one with guidance set forth in clear terms.

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Also at some time, an entrepreneur will need to engage in sensitive discussions to resolve issues. It is a good idea to induct a policy of being open and honest about every challenge that is presented in the workplace. This gives employees access to the founder for assistance, helps increase the likelihood of discussing sensitive issues, and establishes precedence which in the long term helps reduce conflicts. Most people resist confronting a difficult issue and would rather avoid a discussion hoping it will somehow resolve itself. When necessary, a referee can help with professional disagreements to help prevent them from getting personal.  Finally, whenever a dilemma arises, it is a good idea to create a paper trail, either by memo, letter, or another communication outlet to keep a record of the conflict and how it was resolved for future reference. One thing is definite, an entrepreneur will face many dilemmas that will require some kind of strategy to resolve. The better prepared an entrepreneur is to handle them, the quicker the resolution (Wasserman, 2012).

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References:

Strauss, S. (2012). The small business bible (3rd ed.). Hoboken NJ: John Wiley and Sons, Inc.

Wasserman, N. (2012). The founder’s dilemmas: Anticipating and avoiding the pitfalls that can sink a startup. Princeton, NJ: Princeton University Press.

Stages of Business Development

Published March 22, 2013 by Mayrbear's Lair

Stages of Business Development

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Introduction

There are a variety of business development models that entrepreneurs implement to foster or augment an organization.  Each stage of the development process is equally significant in the creation of a successful endeavor.  Osterwalder and Pigneur (2010) describe a business model as the rationale of how a company creates, delivers and captures value (Osterwalder & Pigneur, 2010).  They suggest that professional goal setting and planning are essential in developing a new venture and that an entrepreneur should foster high levels of thinking skills and an understanding in psychology in order to spearhead a successful organization.  Zaharuddin (2008) established a simple business model that reduces risks in launching a new enterprise which is comprised of four stages: (1) conceptualize an idea and vision, (2) conduct extensive research to screen the idea, (3) write a detailed business plan from the data gathered in the feasibility examination, and (4) launch the business (Zaharuddin, 2008).

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Stage One – Identify the Vision

The first stage in the development process of creating an enterprise is coming up with an idea and choosing a business.  There are generally two kinds of individuals that choose to become entrepreneurs: (a) a person who is absolutely in love with the idea of starting a very specific kind of enterprise and (b) the individual who is enamored with the concept of becoming his or her own boss.  The first class of business owner has a specific thought in mind, like a chef employed in a restaurant that wants to create a dining establishment, or a woman employed as a caretaker that believes she can do a better job at running a caregiving organization based on her experience and skills.  The other class of entrepreneur is driven to become the leader of a venture they are passionate about with a deep-rooted desire to spend all their time engaged in doing what they love.  For example, a woman who enjoys decorating cakes may decide to open her own bakery shop, or a man who just wants an excuse to spend his time loitering at the beach may create a boat rental business for tourists.  The first stage and assignment of any individual who contemplates an entrepreneurship is to decide which of their passions they love enough to build their livelihood around (Strauss, 2012).

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Stage Two – Conduct a Feasibility Study

Without research and preplanning, an entrepreneur risks a higher potential to fail.  The second stage in the development of a business is thorough examination of the enterprise.  An individual must comprehend their potential market by conducting research to ascertain whether it is a feasible idea and if there is a need their business can solve.  Creating a feasibility study provides preliminary data that defines whether a business opportunity is practical and likely to succeed in the marketplace (Campbell, 2013).  This screening stage will help identify the obstacles a business may encounter and also presents a variety of solutions that will help deliver the outcomes an owner desires.  Components of the analysis should include the history of the target industry, identifying the competitors and existing customers, determining costs, examination of pitfalls and risks, what the market share is, and whether it is practical as a business (Reilly & Milikin, 1996).

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Stage Three – Write a Business Plan

After conducting the research on their business idea, the third and most significant stage is composing a winning business plan.  The purpose of a business plan is to create a map that outlines the details of how a business will operate which includes: (a) the revenue required to begin the venture and stay afloat, (b) identifies projected costs and sales, (c) elaborates on marketing strategies, and (d) schedules future goals.  Investors and financial institutions will not consider funding a new venture unless they receive a well-written business plan.  In addition, a business plan captures the organization’s culture and displays a purpose that is focused on revenue growth, bookings (leads, clients and customers), stock appreciating and internally focused metrics that are intended to drive behavior and achieve desired results (Scheessele, Scheessele, & Coppings, 2012).  This displays to investors the entrepreneur’s belief and devotion to succeed.  Individuals interested in getting a new venture off the ground understand that a well-researched and persuasively-executed business plan will reduce their risk of failure and helps garner support.

PhotoSpinOffice Imagery© 2001 PhotoSpinwww.photospin.com

Stage Four – Launch the Operating the Business

The fourth stage is customarily the most enjoyable.  After drafting a structurally sound business plan, ascertaining the funds, and realizing the prerequisites of starting a small business, launching and operating the business is the next stage.  This phase requires establishing an optimum location for the business and the process of physically creating the organization.  The location of the business is contingent upon the amount of foot traffic required.  Businesses like warehouses or the wholesale industry for example, may have different location requirements.  It is also in this stage where the entrepreneur creates their brand, products, and inventory; engages in buying; establishes the right suppliers; meets representatives; and hires staff members.  For individuals that establish home-based businesses, this stage consists of implementing strategies for operation and growth, as well as determining their own compensation.  Operating a business also entails decisions as whether or not to include globalization; the implementation of Green strategies; the maintenance and disbursement of revenue; bookkeeping and tax filing requirements; the hiring and firing of employees; setting up their payments, benefits, and stock options; and training, maintaining, and monitoring staff performance.  Other significant aspects of running the business are: (a) establishing quality customer service, (b) growing the customer base, (c) incorporating the right technology, and (d) coming up with the best advertising plans to help build the company brand (Strauss, 2012).

Conclusion

Although there are a variety of business-development models that entrepreneurs implement to cultivate or enhance a company, each stage of the developmental process contributes to the success of the endeavor.  Without extensive research, preplanning, and developing a sound business model that includes a business plan to outline the navigation of the enterprise, an entrepreneur faces higher risks of organizational failure.

 

References

Campbell, J. (2013, February 25). Feasibility study and you: A dynamic duo by June Campbell. Retrieved from WebSiteMarketingPlan.com: http://www.websitemarketingplan.com/techniques/feasibility.htm/

Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers and challengers. Hoboken, NJ: John Wiley and Sons, Inc.

Reilly, M., & Milikin, M. (1996, August). Starting a small business: The feasibility analysis. Retrieved February 25, 2013, from Montguide MT0510: http://msuextension.org/publications/BusinessandCommunities/MT199510HR.pdf

Scheessele, W., Scheessele, K., & Coppings, N. (2012). 60 Insights for mastering business development. Charlotte, NC: Mastering Business Development, Inc.

Strauss, S. (2012). The small business bible (3rd ed.). Hoboken NJ: John Wiley and Sons, Inc.

Zaharuddin, H. (2008). A to Z entrepreneur in practice: Business Feasibility Study. West Java, Indonesia: Dian Anugerah Prakasa Publishing.

Feasibility Study

Published March 11, 2013 by Mayrbear's Lair

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A feasibility study helps an entrepreneur structure a new venture with preliminary data that defines a business opportunity and helps determine whether it is practical and likely to succeed in the marketplace (Campbell, 2013). The purpose of a feasibility study is to identify the likelihood of challenges a business may encounter and present a variety of solutions that will help deliver outcomes the proprietor envisions. For example, one aspect of a feasibility study focuses on handling risks and uncertainties by examining statistics and probability concepts that identify issues a business owner may face in a particular industry. This can help an individual assess variables to help predict the best path for productivity. Other components of the analysis may include: (a) the history practice of an industry, (b) typical industry risks; (c) exploration of economics; and (d) the identification of weaknesses and strengths (Mian, 2011). Research can also include feedback from surveys and questionnaires to help develop a detailed sustainable business plan based on the data collected.

Driven Entrepreneurs

Driven Entrepreneurs

Entrepreneurs are a unique group of individuals that do not accept the world as it is and often become game changers from ambitious ideas and innovations. They possess an unbridled drive and passion, but often fail to take into consideration all the components required to make a venture successful. A feasibility analysis provides research that helps entrepreneurs confront the truth about a variety of aspects of a venture by examining uncertain parameters that can hinder an enterprise, taking into consideration long term goals and past experiences that can affect the process (Edmond, 2007). It can also be used as part of a greater venture capitalization plan because it provides a comprehensive detailed analysis that displays a psychological commitment to the enterprise from the entrepreneur which is an integral component to attract funding from investors, shareholders, and banks.

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A feasibility study can also help frame the venture opportunity and assess risks by identifying some of the following components: (a) who the competitors are; (b) is it a practical business; (c) what is the market share; (d) what is the location of similar businesses; (e) who the existing customers are; (f) determination of costs and break-evens; and (g) identifying potential pitfalls (Reilly & Milikin, 1996). In addition, a feasibility study can help business owners evaluate the basic financial requirements of a business, potential revenues, fixed and variable costs, and the working capital required to finance inventory, material, labor, marketing, shipping, and manufacturing costs. Zaharuddin (2008) developed a simple four step plan for reducing the risk involved with launching a new business: 1) identify the idea and vision; 2) create a feasibility plan to screen and test the idea to determine if its viable; 3) write a business plan; and 4) launch the business (Zaharuddin, 2008). These easy steps that include a feasibility study as part of the process can help entrepreneurs succeed in their entrepreneurial ventures.

References:

Campbell, J. (2013, February 25). Feasibility study and you: A dynamic duo by June Campbell. Retrieved from WebSiteMarketingPlan.com: http://www.websitemarketingplan.com/techniques/feasibility.htm/

Edmond, J. (2007, February 5). Planning your new business: Feasibility analysis. Retrieved February 25, 2013, from articlesbase.com: http://www.articlesbase.com/home-business-articles/planning-your-new-business-feasibility-analysis-part-one-100572.html#ixzz1U1ZGAPdD

Mian, M. A. (2011). Project economic and decision analysis. Tulsa, OK: PennWell Corp.

Reilly, M., & Milikin, M. (1996, August). Starting a small business: The feasibility analysis. Retrieved February 25, 2013, from Montguide MT0510: http://msuextension.org/publications/BusinessandCommunities/MT199510HR.pdf

Zaharuddin, H. (2008). A to Z entrepreneur in practice: Business Feasibility Study. West Java, Indonesia: Dian Anugerah Prakasa Publishing.

Entrepreneurial Climate Analysis

Published March 8, 2013 by Mayrbear's Lair

Entrepreneurial Climate Analysis

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Introduction

We are in the midst of a global entrepreneurial revolution in every nation, industry and market.  According to Morris, et al. (2011) startups are at an all-time high with new products and services also at record levels in most industries (Morris, Kuratko, & Covin, 2011). In the meantime many of these new startups fail as quickly as they emerge. In order for a venture to have the best chance of survival experts concur that an analysis of the culture, climate and environment of an entrepreneurial organization is required in creating a successful establishment.

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Environment

To create a successful entrepreneurial environment an individual needs to identify opportunities and generate new growth (Hisrich & Kearney, 2012). An analysis of the following components can help ascertain whether a venture is worth considering: (a) the technology incorporated; (b) the ability to nurture new ideas; (c) the establishment of systems and strategies to cope with failure; (d) the determination, accessibility and availability of resources; and (e) the channels available that support management. For example, challenges from high unemployment rates, sparked new ideas for some individuals to seek innovative employment solutions. For one individual, the joblessness condition presented an opportunity to employ their media production experience to provide social media services specifically targeted at corporate executives and businesses. To create a constructive entrepreneurial environment, conducting a critical organizational assessment can help foster solutions that harness support including access to additional resources. In the meantime armed with a positive attitude, their organization continues to grow with an openness that incorporates new innovations and technologies to encourage creativity in addition to the support from cohesive plans and strategies.

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Climate

An entrepreneurial climate must adhere to innovation and change. For example, the culture of virtual organizations is really taking off and has transformed the work place. Virtual mediums enable leaders to accept, expect, and encourage innovations that include the staff in the co-creation process, make adjustments and adaptations based on user feedback, and coalesce from remote locations.  Badal (2013) postulates that to create a successful environment, leaders should be: (a) driven; (b) display effective communication skills; (c) are able to motivate and inspire others; (d) can identify strengths and weaknesses in themselves as well as others; and (e) turn challenges into opportunities  (Badal, 2013). An essential component to success in an evolving a young start-up organization is creating an entrepreneurial climate that implements a daily ritual that can include for instance, various exercises to strengthen the body, mind, and spirit. It is important to focus intention and attention on self-disciplinary actions to achieve and maintain an effective leadership role, especially in the early stages where a venture consists of very few individuals to motivate each other. This disciplinary component nurtures individuality, confidence, and provides stamina that drives the internal engines to achieve success.

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Culture

Corporate entrepreneurs are mavericks, innovators, and the pioneers that spark new enterprises, products, and services by developing, growing and designing a culture that incorporates strategies, structure and policies that support their ventures (Hisrich & Kearney, 2012). When creating an entrepreneurial culture, leaders assess the following components: (a) the technologies available required to operate effectively;  (b) the fluctuation in cost of goods, exchange rates, interest rates, tax incentives and a price for services; (c) marketplace competition; (d) labor force requirements; (e) resource availability; (f) who the target market and customers are; (g) an understanding of law, restrictions and regulations for operation; (h) and the global environment that includes real-time communication, productivity, distributors, suppliers and other strategic alliances (Morris, Kuratko, & Covin, 2011). In the early stages of an operation, nurturing a creative culture environment that utilizes state of the art technology in a cost effective manner is a good strategy to keep costs down for a new start-up. For example, one young organization decided to employ an innovative strategy to upgrade their Adobe Creative Suite software to remain a contender in the competitive marketplace. The organization saved thousands of dollars by joining the Adobe Cloud group that offers professionals the use of the latest versions of Adobe’s creative design programs from remote locations at a low monthly rate. This is a strategic, cost effective decision, that supports production creativity and levels the playing field against competitors with access to more resources.

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Conclusion

Without analysis and support in their venture, entrepreneurs can give up and quit. In addition, visionary leaders who recognize talented corporate entrepreneurs can help their company benefit further by facilitating a platform that nurtures creativity and new innovations that includes a comprehensive business plan to optimize chances of success and help manage internal politics (Hisrich & Kearney, 2012). In conclusion, an analysis of the culture, climate and environment of an entrepreneurial organization is essential for creating a successful business establishment.

References

Badal, S. (2013). Building corporate entrepreneurship is hard work. Retrieved February 13, 2013, from Gallup Business Journal: http://businessjournal.gallup.com/content/157604/building-corporate-entrepreneurship-hard-work.aspx

Hisrich, R., & Kearney, C. (2012). Corporate entrepreneurship: How to create a thriving entrepreneurial spirit throughout your company. New York, NY: McGraw-Hill Publishing.

Morris, M., Kuratko, D., & Covin, J. (2011). Corporate entrepreneurship and innovation (3rd ed.). Mason, OH: South-Western College Publishing.

Intrapreneurship Analysis

Published March 6, 2013 by Mayrbear's Lair

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Entrepreneurial leaders are visionaries that possess a variety of characteristics and skills needed to be successful. Some of these talents include a deep passion to develop and articulate a vision, the ability to create a sound plan that include strategies to maintain and goals to achieve.  In addition, an entrepreneur must have a comprehension of the organization’s culture, structure, and procedures to understand how to navigate productively in a rapidly growing entrepreneurial organization. For example, an effective entrepreneurial leader requires the ability to adapt and manage change efficiently to stay ahead of competitors with aspirations to dominate the market. Risk taking is another important element for an entrepreneur.  Businessman Richard Branson (2011) has a simple philosophy, “Screw it, just do it” (Branson, 2011). This displays an unwavering tenacity to continue moving forward with goals regardless of the risks involved.

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In addition, entrepreneurs must face and answer certain questions before embarking on an entrepreneurial venture to insure the best chances of success. For example, do they possess or have access to enough capital for their investment; is their family supportive; is there a need for this product or service?  Furthermore, they must ask themselves is there a sense of urgency to embark on this venture. In other words, what is the intent or driving force behind the enterprise? It is also essential that an entrepreneur identify their strengths and weaknesses to ascertain where they require support in areas like marketing, accounting, sales and administration (Inc The Staff of Entrepreneur Media, 2010).

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Branson shares four simple principles he follows that have been instrumental in overcoming failures and achieving extraordinary levels of success as an entrepreneur. They are: 1) live in the moment; 2) become a good steward by helping others; 3) have fun; and 4) never give up (What I learned about entrepreneurship from Richard Branson, 2011). Another important component is to not lose sight of the vision and keep focused on opportunities, or challenges that present new opportunities. Finally, a successful entrepreneur should have a keen eye on trends and fluctuations in the market to help give them a better edge on the competition and what changes are required to help keep them on track to achieve their goals.

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References:

What I learned about entrepreneurship from Richard Branson. (2011, November 22). Retrieved February 14, 2013, from ProQuest Central: http://search.proquest.com.proxy-library.ashford.edu/docview/1030937503?accountid=32521

Branson, R. (2011). Losing my virginity: How I survived, had fun, and made a fortune doing business my way (Updated ed.). London, UK: Crown Publishing Group.

Inc The Staff of Entrepreneur Media. (2010). Start your own business (5th ed.). Canada: Entrepreneur press.