The Entrepreneurial Effect - Essay Sample

Introduction

Entrepreneurs are the key contributors to economic development since they provide new business opportunities in the ecosystems. Although entrepreneurs are unequally disseminated geographically and individually, their behavior is gradually recognized as being heterogeneous depending on the level and nature of experiences. James Bowen starts by defining entrepreneurs as those who take calculated risks to come up with an income generating activity. Habitual entrepreneurs are individuals who own more than one business. They are essential groups to study due to a large number of enterprises they establish and their innovative way of venture creation.

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The approach of an entrepreneurial ecosystem gives a vivid perspective of evaluating and understanding different entrepreneurs and their social network. According to James Bowen, entrepreneurial ecosystem refers to a series of organized entrepreneurial actors, institutions and process which merge to manage the performance within the entrepreneurial environment. Many advisors have regarded the Waterloo of Ontario, Canada as the hotbed of entrepreneurship that creates, attracts and maintains a set of entrepreneurs.

Not everyone can start a company. Those who have the passion, commitment and embrace hard work are among the few who succeed in this sector. Before considering setting up an enterprise, people should accept the ability to take a risk, and be satisfied that they have the focus and longevity to plan, implement, iterate and prosper. Successful entrepreneurs make value judgments, hire great people, validate the ideas, plan appropriately, conserve cash, are fair an honest, have a strong drive to profitability, listen to other people's opinions, solve problems single-handedly, and make appropriate decisions.

According to Dan Latendre, thinking about entrepreneurship requires the habit to emphasize the next big idea. After all, starting a company begins with a dream and the fruit for most prosperous business ideas are driven by motivation. The path to success is starting with the small idea then concentrating on execution. Latendre has developed three philosophies that should guide entrepreneurs who need to succeed in business. He asserts that individual should never lose focus on the big idea. Entrepreneurs are dreamers by nature. However, they should strive to turn their dreams into reality. Another philosophy is starting with a plan and building connection with the right people. According to him, success is a journey and to succeed; one has first to build a roadmap. This is followed by finding mentors and right financial advisors. The last principle is capitalizing change when it occurs. For instance, one has to keep-up-to-date with the growing technology.

Entrepreneurs should recognize themselves by possessing unique skills that help them run a business. According to Robert Pavlis, ability to understand self is a key that entrepreneurs must have. It helps the individuals identify their needs, expectations, strengths, and weaknesses. Tactical and emotional skills are also crucial for entrepreneurs. It is worth noting that starting and running a business is exciting since it is financially rewarding. However, it is accompanied by various challenges and disappointment that require hard work to overcome. Tactical and emotional skills enable entrepreneurs to survive in this environment. Other capabilities include operational skills like sales, finance, marketing, and management. Tactical skills specific to the market niche may also be an added advantage.

Meanwhile, business success requires entrepreneurs to practice healthy habits. One essential habit is a priority. Business owners need to give credit to significant activities. Proper planning and management are required to achieve this factor because entrepreneurs will foresee the events needed to be completed first and forgo the others to meet the budget. With appropriate planning and priority, the business is likely to be productive since it aims to avoid any possible wastage that may create a loss for the organization.

Another critical factor to business success is setting specific, measurable, achievable, realistic and Time-bound objectives. These goals should be written down and by doing so; the person shows commitment and intention of succeeding. Most importantly, the written goals help the entrepreneurs to think about the future of the business then endeavor to meet them.

Another factor is nurturing a network. Successful entrepreneurs establish a healthy business relationship with other people and staying connected to them. Connection with different individuals and organizations to create room for learning and innovations. Therefore, entrepreneurs with this action in mind can easily pursue new business opportunities which help them expand the market value.

Another element is steady leadership. A successful business is about change and development. Entrepreneurs can create this change by acquiring professional leadership skills and styles that accommodate the customers and other stakeholders. To be a constant leader, business owners should make learning a habit because it is an adaptive way of thriving. Effective leadership also creates a competitive advantage in the business sector. In other words, it is the path to be profitable.

Another factor is time management. Excellent time management allows entrepreneurs to achieve more within a short period. Being organized also helps individuals avoid mistakes and it results in efficiency and improved business performance. Another component to business success is discipline. Self-discipline enables entrepreneurs to understand everyone ability in the organization. Further, it enhances appropriate decision-making and problem-solving to establish a friendly-business environment. Self-discipline also allows one to work suitably in a team. Therefore, it is vital to business success.

Conclusion

In sum, entrepreneurship is an essential activity in the economy because it enhances the creation of business opportunities. Essential skills that entrepreneurs must possess include technical and tactical skills, management skills, communication skills, marketing skills and ability to understand self. For businesses to be successful, entrepreneurs must consider factors such as time management, consistent leadership, clear objectives, priority, and building networks. All these factors contribute to the entrepreneurial effect in Waterloo. The city is doing great because entrepreneurs in the region have been keen in observing them.