Category: Entrepreneurship

Recycling of materials has been a very crucial part of our economic activities. It forms a part of the national income and also secures jobs for some individuals within the economy. Recycling itself involves the transformation of the already used products in other useful products that can be sold for re-us (Markessini, p05). This sector has also helped to reduce pollution of the environment since the waste products from materials such as paper, metal; electronics are put into other useful forms. In the United States the products that are commonly recycled are steel and iron. Other products that are usually recycled include plastics. These products have for a long time dominated this sector of the economy since they can easily be molten and re-used to make new products.

This sector has however not explored how the old wooded products that are often disposed can be re-used. Most furniture when they either get out of fashion or they are old enough not to fit their purpose are usually disposed. Most individuals usually dispose off their old furniture such as broken tables, chairs and worn out seats. It is very possible to recycle such products and bring out some new and attractive products. For example furniture such as home sits can be easily recycled. This is possible since the carpenters will only need to create centers for buying such old furniture and dismantle the top covers and put new material covers that are very attractive (Markessini, p07). This means that the old materials in the inside will not be removed but they may require to be added just a little reinforcement to support them for a longer period. This means one can be able to make a new set of seats without necessarily having to buy new wooden parts that are used in the inside part of the seats. This can then be sold as second hand seats to the individuals who may not have enough capital to purchase new seats. The old furniture can not only be bought from the customers but the carpenters can give a service of repairs for the customers who would want either to change design or the outer look of the specific furniture. This will be a good business venture since it will create more jobs in the economy for more jobless individuals. It will also be possible to make good and attractive new furniture for the low class individuals who may not be able to purchase the same product if it was a brand new set (Markessini, p15).

Another way that wooden products can be recycled is making use of such old wood for carvings. The sculptors can actually buy this old furniture, dismantle them and curve the wood into new products such as wall hangings, animal or human sculptures among others. The carvings will only need to be re-painted, decorated and made attractive to attract customers. This will also be another way of generating income within the economy and it will also help in making use of the old furniture which would otherwise be disposed as useless. The recycling of such wood would also reduce the cost of importing a lot of timber that is used to make such products within the sector (Hiromichi, p9). It is a way of reducing the vice of deforestation which is an environmental hazard. The recycling of such products will be of economic benefit to both the government and individuals since it will be a new venture of creating income.

Another area that can be explored for new business venture is the energy sector. Most people in the United States use electricity and LPG products for home energy. Energy being a very crucial sector of the economy has been a sector where many individuals have concentrated on ways of either conserving the energy or recycling the energy. With the increasing cost of energy globally, it would be a wise idea for the new entrepreneurs to venture in new areas of either reducing the cost of energy or look for cheaper means of energy that can be used in the alternative of the current sources of energy (Hiromichi, p11). Charcoal in the United States is not a very common source of energy although it is very convenient and affordable energy for cooking in the US.

This is a sector that only requires one to explore deeper and find cheap means of getting charcoal and mobilizing people through convincing marketing strategies of why they should use charcoal as a source of home energy (Hiromichi, p19). The main source of charcoal in the US is from the trees such as olives or the fruit stone charcoal. These types of charcoal are not recycled because no entrepreneurs have concentrated in renewable charcoal in this sector. A new business venture can be the making of cheap charcoal that can be made from readily available materials. A good example would involve the individuals to collect plant leaves or grass, clay soil, the coffee husks from the coffee factories, fine charcoal that is normally regarded as waste from other charcoal collection points, wooden chips and ash. These materials are mixed well in certain proportions and they are then compressed to make small balls of none-smoking fine charcoal. This type of charcoal would be very cheap and affordable for many individuals since the cost of making it will be very cheap. The waste materials from this charcoal will not be wasted since they can still be re-used as one of the raw-materials for making new charcoal. It would also contribute in the environmental cleaning since the mowed grass in the compounds can be put to use. The charcoal does not produce smoke and therefore it reduces the chances of charcoal being a health hazard (Wares, p20). The charcoal can then be used in homes for cooking and also as a source of heat in the homes especially during the winter. The charcoal is actually very economical since it does not burn fast and can therefore be used for many hours before it is completely used-up.

The entrepreneurs upon gaining a good command of the market can make good source of income from such a venture. This will require good marketing skills to convince the potential customers the benefits of the new product. The initial set up of the business would also require the individuals to invest in cheap methods of collecting the raw- materials in order to maximize the profits besides making it affordable for marketing. The business would actually be a very good idea for the rural individuals who earn very little from logging trees to produce charcoal. They normally work for other individuals who have the capital to operate the production of charcoal from trees. With this type of charcoal the capital required is very minimal and most people in the rural regions can afford it. It will create jobs for jobless individuals and also income to the authorities. The use of such charcoal can also be a good source of cheap energy for both low class and also middle classes of the society in the urban areas (Wares, p30). The individuals can be able to reduce the cost of fuel that is used in the homesteads. This will eventually trigger more savings in the economy and thus improving the whole economy in the long run. This type of charcoal would also reduce the cutting down of trees which are later burnt to produce charcoal.

The tourist sector can also be another promising venture for new business entrepreneurship. It is in history that many tourists who come to the US may not have easy and cheap channels of getting direction and accommodation apart from the services of hotels. One can explore the sector by looking for a cheap way of making life cheaper, enjoyable and easy for any tourists or new entrants in to the US (Willcock, p43). One can focus on a cheap way of providing cheap accommodation and home services that will draw attention of many individuals to your service.

One cheap way of such a service would be organizing home based accommodation for such tourists (Henning, p16). The actual venture would be opening different centers of providing customer service in each city. Each of the centers in the different cities will then be given the mandate to look for individuals who would be willing to host the visitors at a certain fee. This means that each center will keep a record of the willing clients in each city and have their contacts at hand. The management will then open a website that can be viewed by every one globally such that you will be able to market the availability of your service to the potential visitors to the US. The interested visitors in your service will then have the freedom to choose the city of their choice where they are willing to spend their stay. At this point it is important to note that all the centers across the cities will be centrally managed. Once the customer identifies the city they want to stay, the central management will then contact the center in the specific city to identify an individual with a vacancy.

The central management will then be responsible for setting the rates at which to charge the tourist and also the fee to pay to the clients hosting the visitors. For this business to thrive well, the management should pay the hosting homes a lesser fee than what they actually charge the tourists (Henning, p20). The management should also charge a fee that is much lower than the local hotels in order to attract more customers. The management should also ensure that the homes given such contracts offer standard services to the visitors. The home based accommodation for the tourist will be very beneficial to them since it will be offering good service besides giving company to the visitors.

The potential homes will basically be offering simple roles of providing accommodation with food and laundry services. The management can therefore expand the business and offer services of picking Visitors from the Airport, familiarizing the visitors with the new environment, taking them to tourist attractions and also teaching them the general culture of the societies. The management would therefore require having its own means of transport which can be initially given free or charged at a discounted rate as a marketing strategy. It is important to note that the management will be charged with the sole responsibility of ensuring the comfort of the visitors. This is because it is good to consider the possibility of breach of contract by the homes. It should also be responsible of ensuring safety measures for both the visitors and the host homes. The management should therefore set standard rules indicating penalties applicable (Henning, p28).

Such a business would benefit the economy in very many ways since it will attract more tourists since they would have a way of cutting the cost of their visit (Willcock, p51). The method of looking for accommodation would be easy and there would be no struggle of getting somewhere to stay. It would be another way of earning income for many homesteads and also a source of income for the state through taxation. This would also help the individuals involved in the business get a way of earning income through acting as intermediaries between the homes and the visitors. The service will not only be provided to the tourists but also to the new entrants such as international students who may not be able to secure student accommodation at the time of their admission. This would be very convenient for all the individuals coming to the country irrespective of their cultural back ground.

Work cited

Amy Willcock. How to make money from your spare room. U.K, 2008.

David Wares. Environmentally Safe Charcoal-Based Heat Source. U.K 2006.

Effy Markessini. Recycling furniture waste environmentally friendly Options. Adhesive Research institute, 2006.

R Henning. Establishing a tourism-based accommodation business. U.S.A, 2005.

Umemiya hiromichi. The Recycling Technology and Utilization of Waste-Wood. Heat Recovery and Utilization of Charcoal. Japan, 2000.

This paper is aimed at reflecting on my personal understanding of entrepreneurship before the start of the semester and thoughts on this topic after learning the key theories. Micro and macro views on the theory of entrepreneurship will be considered. Additionally, the paper touches upon the issues of the concept of ethics and corruption. In the course of writing, the main points that were learned during the course and their further application in the field of entrepreneurship are described. Thus, the paper is focused on the perception of the topic, its main takeaways, and further developments in the profession.

First of all, it is important to talk about the understanding of entrepreneurship before the start of training and how the idea of this concept has changed during the period of obtaining knowledge. Prior to the course, my knowledge of this topic was limited to the fact that it is an independent activity conducted with the aim of selling goods and services for profit. However, during the lessons, I realized that this issue is multifaceted and occupies a separate niche as an economic category. This concept includes not only financial needs and wages, but also entrepreneurial risk and the possibility of failure, systematic profit and project legitimacy, including all necessary documents (Greene 2020). Thus, considering these factors in the future profession will most accurately establish the possible advantages and disadvantages of the project being implemented.

In addition, it is vital to understand the concept of entrepreneurship theory in order to apply knowledge. It covers different fields of the economy and can be described as an almost limitless activity conducted within the framework of the current legislation (Baker and Welter 2018). At the same time, micro and macro views on entrepreneurship as a theoretical approach emerge (Frederick et al. 2018). The macro approach considers the external environment, which the entrepreneur cannot influence. The micro approach focuses on factors controlled and regulated by the entrepreneur.

The macro view includes the Environmental School, the Financial/Capital School and the Displacement School. Ecological school argues that the development of entrepreneurs depends on the socio-political situation in life (Frederick et al. 2018). The Financial/Capital School focuses its activities on the financial perspective and the search for capital to conduct activities. The Displacement School considers the notion that people choose entrepreneurship when there are no alternatives (Frederick et al. 2018). Considering these factors and approaches, this knowledge can be effectively applied in future enterprise. Based on the conclusions of these concepts, one can draw a conclusion about ones own readiness for hard work, the desire to withstand difficulties and look for possible ways to replenish capital.

Micro view considers six schools in its concept, which include the Great Person School, the Psychological Characteristics School, the Classical School, the Management School, the Leadership School and the Intrapreneurship School. The Great Person School says that entrepreneurial qualities are born, while the Psychological Characteristics School describes the qualities that make people more successful in their activities (Vlados and Chatzinikolaou 2020). The Classical School decides on creativity and innovation as the main approaches to success in entrepreneurship. The management approach states that people can be trained in essential skills such as budget planning and coordination (Vlados and Chatzinikolaou 2020). Finally, leadership describes the entrepreneur as a manager, and internal entrepreneurship largely depends on helping an organization when there is a lack of innovation.

This knowledge can be applied all together, without a strict division between certain schools. With a successful career, it is important to understand what qualities an entrepreneur has initially and which of them should be developed in the process of becoming (Audretsch and Moog 2020). In addition, this data provides insight into how various factors influence the development of a project or idea (Wadhwani et al. 2020). In the interview, the respondent highlights creativity among other things as their main ability. Thus, using the provisions of the above schools, you can understand how the future entrepreneur is ready to implement the tasks.

Another important knowledge was information about ethics and its functioning within the framework of entrepreneurship. Thus, I discovered that in business this is extremely important. Before taking the course, I knew that this phenomenon meant communication with people, but I was not fully aware of its complex role in doing business. However, lessons have shown that this is a set of behavioral traits that can be extremely useful when negotiating or communicating with clients. Ethics within entrepreneurship is based on generally accepted norms and rules of conduct in society, along with professional ethics in certain areas of business (Doern et al. 2019). These foundations play a significant role in the manifestation of negative and positive outcomes of the sale of a product or service.

In addition, this knowledge can affect the success of a business. The ethics of communication with people, employees and partners has always represented a large layer. As a future entrepreneur, it is important to understand how to establish trust and respect (Ahsan 2020). In this case, ethics allows one to show how honest and polite the business owner is. Entrepreneurship is a difficult path of interpersonal relationships and expectations (Doern et al. 2019). Accordingly, behavioral and ethical standards must be clearly established and regulated in the company.

In business, ethical challenges can arise all the time and tend to be faced by consumers who are protected by the government. In this regard, the skills that I learned during the course can be used to implement ideas. First of all, it is connected with the rules of presentation and acquaintance (Bradley et al. 2021). Presenting oneself as a successful person and having confidence in business allows other people to feel trust and interest.

Second, ethical guidance provides an understanding of the rules for conducting business contacts. In this case, the entrepreneur can conclude successful transactions based on the cultural and social basis of the partners (Kuckertz et al. 2020). In addition, the requirements for speech, appearance and manners provide the first impression (Vallaster et al. 2019). Knowledge about this will be useful when establishing a corporate culture in the project. Potential partners and clients will see a conscientious personality in an entrepreneur (Pathak and Muralidharan 2020). While for employees, this can become a partial guarantee of a friendly atmosphere in the workplace and a respectful relationship with superiors.

However, it should be borne in mind that such difficulties as corruption can overshadow business activities. In the long term, corruption has a negative impact on any production, project or idea (Liu et al. 2019). This is an illegal phenomenon through which a person or group of people can benefit from bribery. It causes serious damage to the development of the country and can result in criminal prosecution for the entrepreneur. In addition, corruption reduces business activity on the territory of the state, since at the official level some enterprises are not given permission to organize their own business due to the payment of competitors. Therefore, the government fears because of the perception index of the phenomenon.

Figure 2 

The table shows the level of corruption in the institution of different governments. This leads to a decrease in small business and the overall economic development of the country. As a future entrepreneur, it is important for me to understand that corruption is a criminal offense. Bribes and payoffs can have a negative impact on a business and destroy it (Uribe-Toril et al. 2019). Accordingly, it is vital to comply with the law and the legal aspect of doing business (Anguera-Torrell 2020). Before attending the lectures, I did not think that corruption could cause such serious damage. However, as a forward thinking entrepreneur, I understand the gravity of the problem.

In conclusion, it should be said that the completed course brought a lot of new information and allowed a deeper look at the field of entrepreneurship, including its theory and challenges. Accordingly, it is important to comply with the norms of ethics and appearance, as this allows one to attract investors and buyers. In addition, knowledge of legal regulations and the dangers of corrupt activities can keep businesses successful and prosperous. Applying knowledge of the micro and macro approach to entrepreneurship highlights the strengths and weaknesses of the individual as a leader and negotiator.

References

Ahsan, Mujtaba. 2020. Entrepreneurship and ethics in the sharing economy: A critical perspective. Journal of Business Ethics, 161 (1): 19-33.

Anguera-Torrell, Oriol. 2020. Entrepreneurship, trust and corruption. European Journal of Political Economy, 65: 12-29.

Audretsch, David B., and Petra Moog. 2022. Democracy and entrepreneurship. Entrepreneurship Theory and Practice 46 (2): 368-392.

Baker Ted and Friederike Welter. 2018. Contextual entrepreneurship: An interdisciplinary perspective. Foundations and Trends in Entrepreneurship, 14 (4): 357-426.

Bradley, Steven W., Kim Phillip H., Klein Peter G., McMullen Jeffery S., and Karl Wennberg. 2021. Policy for innovative entrepreneurship: Institutions, interventions, and societal challenges. Strategic Entrepreneurship Journal, 15 (2): 167-184.

Doern Rachel, Williams Nick, and Tim Vorley. 2019. Special issue on entrepreneurship and crises: business as usual? An introduction and review of the literature. Entrepreneurship & Regional Development, 31 (5-6): 400-412.

Frederick, Howard, Allan OConnor, and Donald F. Kuratko. 2018. Entrepreneurship. Cengage AU.

Greene, Francis J. 2020. Entrepreneurship theory and practice. Bloomsbury Publishing.

Kuckertz, Andreas, Elisabeth SC Berger, and Leif Brändle. 2020. Entrepreneurship and the sustainable bioeconomy transformation. Environmental Innovation and Societal Transitions, 37: 332-344.

Liu Jiaqi, Hu Mingzhi, Zhang Huan and Carrick Jon. 2019. Corruption and entrepreneurship in emerging markets. Emerging Markets Finance and Trade, 55 (5): 1051-1068.

Pathak, Saurav, and Etayankara Muralidharan. 2020. Societal ethics and social entrepreneurship: A cross-cultural comparison. Cross-Cultural Research, 54 (2-3): 180-208.

Uribe-Toril, Juan, Ruiz-Real Jose L., Ceresia Francesco, and Jaime de Pablo Valenciano. 2019. Corruption and entrepreneurship: A bibliometric analysis. Journal of Legal, Ethical and Regulatory Issues, 22 (4): 1-11.

Vallaster Christine, Kraus Sascha, Merigó Lindahl José M., and Annika Nielsen. 2019. Ethics and entrepreneurship: A bibliometric study and literature review. Journal of Business Research, 99: 226-237.

Vlados, Charis, and Dimos Chatzinikolaou. 2020. Macro, meso, and micro policies for strengthening entrepreneurship: Towards an integrated competitiveness policy. Journal of Business & Economic Policy, 7 (1): 1-12.

Wadhwani Daniel R., Kirsch David, Welter Friederike, Gartner William B., and Geoffrey G. Jones. 2020. Context, time, and change: Historical approaches to entrepreneurship research. Strategic Entrepreneurship Journal, 14(1), 3-19.

Introduction

Entrepreneurship is simply a matter of luck, being in the right place at the right time. This quote relates to entrepreneurial performance-based on sheer luck against other ingredients of success, such as talent, education, training, hard work, and skills, among others. To this end, it is a problematic statement because it is not simple to measure luck objectively. This report focuses on Elon Musk as an entrepreneur of choice to explore how luck accounts for entrepreneurial performance.

The Entrepreneur: Elon Musk

Elon Musk can simply be described as a do-it-all entrepreneur. Musk has realised critical achievements in different fields, including software, e-commerce, Internet, automobiles, sustainable transportation, clean energy, and now the space world.

From a humble background in South Africa, Musk now lives in the sought-after Bel Air LA. Musk entrepreneurial path is characterised by curiosity, determination, and the need to lead and innovate to improve the world. Simply referred to as introvert in nature, Musk was generally isolated in childhood. Perhaps this seclusion created an opportunity to generate ideas.

At the age of 17, Musk moved to Canada (An 2015). He graduated at Queens University in Ontario in 1992. Musk then moved to the University of Pennsylvania to pursue Bachelors in Physics and later Wharton School for a Bachelors in Economics.

At the age of 24 years in 1995, Musk had already defined three specific areas of focus  sustainable and renewable energy, the Internet, and outer space. Today, he is referred to as an inventor, engineer, and a visionary leader, achieving what few can dream of doing.

Timmons Model of Entrepreneurship

Based on Timmons Model of Entrepreneurship, three vital factors that influence entrepreneurial success include opportunities, teams, and resources (Timmons, Zacharakis, & Spinelli 2004). A successful entrepreneur must understand these factors and be able to balance them effectively. Musk is therefore considered as an entrepreneur who has mastered these critical success factors.

Elon Musk has searched for opportunities, shaped those opportunities into highly successful businesses by relying on effective teams of engineers and accumulating adequate resources to drive the growth. These processes are characterised by risk-taking, which touches on career and personal cash flow with the aim of earning rewards that reflect risk and efforts involved in the venture.

The Opportunity Factor

Musk investments are opportunity-driven, and the market forces have shaped those opportunities. Musk and his brother, Kimbal founded their first venture, Zip2  a Web software firm for newspapers publishers. The company was later sold to Compaq in a deal in which Musk received 7% of the sales ($22 million).

Musk used this capital to launch X.com, an Internet financial services firm. X.com later merged with Confinity to create PayPal in 2001. Musk held the largest shares in the company. PayPal grew to become the largest Internet payment processing firm. It was later sold to eBay in the acquisition deal that Musk reportedly got $165 million in 2002.

After the PayPal deal, Musk focused on affordable space travel and launched SpaceX in 2002 with the idea of promoting relatively affordable space exploration. The entrepreneur noted that exorbitant costs restricted governments and people from exploring outer space. As such, he focused on a cost-effective approach of exploring the space and noted the viability of reusable rockets.

SpaceX has been linked to several pioneering achievements, including being the first liquid-fueled rocket (Vance 2015). The initiative was privately funded to launch the first spacecraft, the first spacecraft to explore the International Space Station, and the first satellite to be launched into the geosynchronous orbit. It is imperative to recognise that SpaceX designs, tests, and fabricates its space vehicle components in-house. This strategy significantly helps the company to cut costs.

In the year 20104, the serial entrepreneur joined Tesla Motors. The company specialises in electric automobile making. Tesla, under Musk, has launched Tesla Roadster, the Model S in 2009, Model X, and the latest Tesla Model 3. These cars run on lithium-ion battery cells. These have been some of the most publicised cars because of the out-of-the-box approach adopted by Musk and his desire to reduce the costs of electric cars while positioning them as mainstream vehicles. Musk is now compared to Henry Ford and other pioneers. In 2013, Tesla realised profits under Musk leadership.

In addition, HyperLoop, which is a high-speed public transport system, is an innovative idea driven by Musk. Further, Musk is responsible for the design concepts of SolarCity in the US to provide clean energy.

Musk has recognised that a good idea is not the same as a good business opportunity, and the prevailing market conditions ultimately determine the potential of the idea. Musk, therefore, has strived to create or add value to customers, create attractive, timely, and durable products for humanity. Market opportunities, rather than finance and business plans, seem to drive Musk. Hence, he readily invests and gets finance to support failure-proof business opportunities.

The Team Factor

When Musk identified viable opportunities in sustainable energy and transportation, clean energy, space travel, and Internet ventures, he embarked on recruiting teams of engineers from Silicon Valley. According to the Timmons Model, a good team is irreplaceable in a business venture because a bad team is most likely to ruin any great business opportunity. Musk realised that the quality of his workforce was a great opportunity to unlock higher potential and drive his companies to a growth path. In this case, Musks teams of employees are simply creative while he offers the necessary leadership to manage the available resources effectively.

As the model alludes, an entrepreneur should be able to conjure up a great team, and Musk has been able to build, motivate, and retain an excellent team to ensure business success. In addition, Musk recognises that great talents are rare and, therefore, he focuses on team improvement.

The Resources Factor

Timmons model does not support the idea that massive resources are required to start a business. Instead, the model encourages bootstrapping to ensure that a venture attains a competitive edge through driving down costs, developing lean organisations, and encouraging creative use of available resources to achieve more.

Elon Musk noted that he could survive on a dollar each day while working on his Internet Startup in the US at the age of 17 years old. In fact, minimal resources drive all companies associated with Musk, including the SpaceX, which reduced the cost to 10% of the industry average. The entrepreneur decided to work from his apartment rather than renting an office space. As he acquired sufficient resources in terms of cash, Musk invested in larger projects while recognising that resources were scarce, but he believed that with a good business opportunity and team, there would be no problem attracting investors and customers. Musk focused on minimising and controlling resources to meet the needs of the business opportunity and the team to develop attractive products and services (Kishan 2016).

A Reality Check

While some aspects of Musks entrepreneurial journey could be attributed to luck (being at Silicon Valley at the right time), major factors are noted on identifying viable business opportunities, working with an excellent team of engineers from Silicon Valley, and assembling adequate resources to drive the ventures.

It is observed that viable opportunities, team, and resources rarely match to deliver successful business. In the case of Musk, however, these three vital ingredients have played perfectly well at the right moment. In this case, Musk has been able to apply creativity and leadership strategies and advance effective communication to realise successful ventures. Some research showed that luck, however, played a role in how entrepreneurs managed their activities, which included determining the right business opportunity and the right time to enter the market (Liechti, Loderer, & Peyer 2012).

Further, it was noted that the perceived essence of luck, as a function of performance, could influence the real decisions affecting the opportunity itself, resource leverage, and the industry choice. Nevertheless, luck is not the only element of the entrepreneurial model for success, and it is found at the bottom of the list (Aberman 2011; Clark 2014; Vinderine 2015).

Musk showed the will to succeed and always compensated for his lack of knowledge through exhaustive reading (Tarpinian 2015). Musk also demonstrated greater innovation, high standards, the highest risk appetite, the desire to do good to humankind, leadership, and personal engagements were critical to entrepreneurial success.

Reference List

Aberman, J 2011, The Role of Luck in Entrepreneurial Success. Web.

An, S 2015, Elon Musk- The Complete Journey of a Visionary Entrepreneur. Web.

Clark, P 2014, 3,000 Entrepreneurs Say Luck Has Little to Do With Their Success, Bloomberg. Web.

Kishan, D 2016, Elon Musk Story: The Man who will save the world. Web.

Liechti, D, Loderer, CF & Peyer, U 2012, Luck and Entrepreneurial Success, SSRN Electronic Journal, pp. 1-50. Web.

Tarpinian, N 2015, Why Elon Musk is the Greatest Entrepreneur of the 21st Century. Web.

Timmons, JA, Zacharakis, A & Spinelli, S 2004, Business Plans that Work: A Guide For Small Business, McGraw Hill, New York.

Vance, A 2015, Elon Musk: How the Billionaire CEO of SpaceX and Tesla is Shaping our Future, Ebury Publishing, London.

Vinderine, S 2015, Great Entrepreneurs Dont Just Rely on Luck, Huffington Post. Web.

Introduction

Entrepreneurs are essential to the recent economic advancement witnessed worldwide today. As Khin & Lim (2019) illustrate, an international entrepreneur is an individual who engages in business activities across national boundaries by making discoveries, enacting, evaluating, and pursuing opportunities in those areas. According to Tabares (2020), international entrepreneurship study has been based on the idea that entrepreneurial behavior has become global and seeks out, exploits, evaluates, and creates opportunities for profit generation. This idea forms the basis of the field of study known as international entrepreneurship. Because of this, an entrepreneur who operates on a global scale needs to be proactive, creative, and willing to take risks to develop organizational value that extends beyond national boundaries (Oviatt & McDougall-Covin, 2015). In a supplementary perspective of internationalization phenomena, international business (IB) and entrepreneurship fields strongly correlate with the concept of global entrepreneurship (IE). This perspective emphasizes the benefits of being outside by drawing attention to globalizations opportunities (Russell, 2018). In this research paper, we investigate the activities of Markus Villig, a successful international entrepreneur and the Chief Executive Director of Bolt Technology OU. Markus Villig and the entrepreneurial endeavor he undertook to satisfy the requirements of an international entrepreneur mentioned above. This is because the entrepreneurial endeavors Markus Villig undertook, in addition to many others, required critical analysis, the willingness to take risks, and the enthusiasm to pursue them beyond the borders of the country where Markus Villig was born.

Background information to Markus Villig and Bolt

Personal and professional life

Markus Villig was born in Tallinn, Estonia, on December 17, 1993(Forbes, 2022). In addition to serving as the Chief Executive Officer and Founder of Bolt Technology OU, known initially as Taxify, Villig is also affiliated with seven other portfolio ventures, including Yaga, Planet42, Montonio, AirlyKoos, Printify, and Outfunnel(Crunchbase, 2022). Villig made history in 2013 by taking the first step toward becoming the youngest-ever creator of a unicorn firm in Europe (Jurberg, 2021). At the time, he had just graduated from high school and was on his way to becoming the youngest-ever creator of a unicorn company. Aside from that, in 2019, when he was just 25 years old, he became the youngest CEO of a multi-billion European firm, making him the record holder for the youngest CEO of a multi-billion company. Today, Bolt is a European transport platform to streamline and speed up urban transit, and it serves globally through its technological innovativeness.

The International Entrepreneurship background

Bolt was founded in 2013, with its headquarters in Tallinn, Estonia. There are over 500 cities in 45 countries that the company is serving in Latin America, Western Asia, Africa, and Europe through its services that include vehicle-for-hire, MICR-mobility efficiency, providing car-sharing, and food delivery. Moreover, the IE boasts nine executive directors and over 1.5 million bolt drivers in the moBoltre than 500 cities it serves (Bolt, 2022). With its 2019 redesign as Bolt, the innovation has become one of the worlds fastest-growing mobility platforms, with over 100 million customers (Jurberg, 2021). Besides, over three million independent contractors (partners) use Bolts software to provide transportation services (ridesharing and delivery) to over one hundred million clients (DBpedia, 2022). As of December 2020, Bolt was valued at $4.3 billion after raising more than $183 million during the financial year.

Motivation and Drivers for Markus Villig

Opportunity recognition process

Markus Villigs motivation and the driving force were necessity driven. The first stage of opportunity recognition in Villigs pursuit of entrepreneurship involved sensing and perceiving the gap in the market. According to Kreuzer et al. (2022), one way to identify promising business prospects is through entrepreneurial intuition, which entails a keen awareness of the problems plaguing a community and the development of original approaches to resolving them. The entrepreneur then uses their sharp observation, analysis, and synthesis abilities to spot a potential opportunity. For Villig, it all began with a dream to unite all of Tallinn, Estonias cabs, into a single app. In an interview with Jurberg (2021), Villig recounts his inspiration. He says that the only prior encounter with Tallinn cabs was negative. It used to take calling at least ten taxi services before one finally arrived, and once it did, you couldnt use a credit card to pay for the ride. Thats why he reasoned that a technological solution would be best.

In the second step of his opportunity recognition process, Villig made a discovery that could fit between the taxi market and the resources available (Hulbert et al., 2015). By the time he recognized his potential in the taxi sector, Uber had possessed excellent assets, including the capital, name recognition, and a solid customer reputation. Unfortunately, they needed to be more knowledgeable about the area. Villig took advantage of this by opening branch offices in strategic locations and adapting his service to meet the specific demands of each market. Realizing that there are difficulties in transportation which are highly local and being close to consumers would be of great significance, he decided to move his company closer to its clientele. As a result, he surpassed his global rivals and became the market leader in Europe while spending much less on advertising.

Lastly, Markus Villig, a high school graduate, created innovations after discovering that his hometown lacked an essential service. He gave his parents a description of his idea, and they would hand him a loan of 5000 Euros (about USD 5500) to pursue his passion project (Conboye, 2021). They had been putting money down for his college education, but his pitch deck persuaded them to put it toward something else instead. While most youngsters are into sports or video games, Villig was already planning to launch a technology company.

Villigs Effectuation principles

One of Villigs reasoning during the pursuit of his international entrepreneurial venture was applying the lemonade principle, which affects contingency leverages. The lemonade principle indicates that managers in large corporations frequently spend excessive time pondering what if questions and trying to anticipate and prepare for every possible consequence (Qrius, 2022). While in the sensing step of his opportunity recognition, he could not predict the future and that his entire business model may need to evolve in response to what they learn from customers. Therefore, he used excellent and negative surprises as opportunities to improve his strategies. Villig introduced Taxify to Estonia and Latvia in August 2013 as a what if trial. Besides, his older brother had a job at Skype and managed to get some of his former co-workers into investing in Taxify. Before switching to a ridesharing service like Uber, Villig collaborated with local taxi firms to offer a unified booking platform. The initial fifty Taxify drivers were all hired by him directly. The feedback was encouraging.

Another effectuation principle in Villigs case is the pilot-in-the-plain principle which calls for the entrepreneurs zeal to control the future (Qrius, 2022). Successful business owners like Markus Villig dont view the marketplace as an unstoppable wave that they must ride to shore without getting washed away. Instead, they have unwavering faith in the power of the human race to shape the future. It was apparent to everyone but Markus Villig, who saw the gap in the taxi market in Tallinn. Ever since he was ten years old, he dreamed of doing this, and all through high school, he worked for small businesses on websites in his community (Jurberg, 2021).

Villigs entrepreneurial traits

His willingness to take risks is one of the characteristics that have been on exhibit during Villigs business journey of developing his idea for a taxi. When he came up with the concept, Uber had already established its brands in every region of the world. And anyone who dared to compete with it would have been met with intense levels of opposition. This was a risk that an entrepreneur could afford to take (Porumboiu, 2022). To begin competing with Uber, Villig concluded that the most effective line of action would be to focus on smaller markets to which they had previously paid less attention. Villig found that there were significant prospects in these locations as a result of the skyrocketing usage of smartphones. Bolt prioritized Eastern and Central Europe and Africa because they have larger issues elsewhere, which refers to Ubers concentration on more populous Western countries (Jurberg, 2021). It was essential for the companys expansion to get a big head start in these countries before any of its competitors could catch up.

Being well-informed is another example of the entrepreneurial spirit that Villig shows. Starting a business in the taxi sector required pertinent information about the potential market, which not everyone in Estonia or even around the world would have seen the way Villig saw it. Villig saw it as a potentially lucrative opportunity. While speaking to the European CEO (2018), Villig admits that he conducted a quick online survey to confirm the severity of the issue and was met with a flood of emotional replies. Taxis had been a source of great dissatisfaction for them. That motivated him to attempt a solution. In addition, the success that Villig has had in Africa can be credited to the companys extensive research on the African market from the perspective of regional economics. Uber had previously invaded a few African regions before the debut of Bolt, but its payment method was limited to credit cards only. This harms their bottom line, especially considering that as much as 97% of the population does not have access to credit. Since the outset, he has given equal consideration to traditional cash transactions and other forms of payment. After that, he would be better able to tailor the product to the markets needs, as Villig noted.

Villigs Motivation

Markus Villigs motivation was their personal experience with the taxi sector in Estonia, which he describes as negative (Jurberg, 2021). The 2004 founding of Skype in Estonia served as an inspiration for him since it showed that a successful technological company may be created from any place. It proved to Villig that an Estonian could launch a successful worldwide technology company. Taxify was named Estonias finest mobile app in 2014 and a finalist for The 2014 Innovation for its revolutionary effect on the information of the country and its communication technologies industry (Jurberg, 2021). While at home, Villig was unrivaled in that Growth was necessary, and that is how he saw the need to start competing with Uber on the global market.

Markus Villig (Bolt) Barriers/enablers

Barriers to Villigs entrepreneurial journey

The most significant barrier that Villig and his idea of investing in the taxi market faced was stiff competition from Uber and other transportation companies like Lyft and Grab, which had already established their brand name globally. Uber did not only create stiff competition for Bolt in transport service delivery but also in the labor market share. As Villig indicates in an interview with the European CEO (2018), the number of drivers and riders attracted to Uber is astonishing. In addition to Uber, Taxify will face competition from a wide range of ride-hailing apps like Lyft, Grab, and many more. Besides, investors would discourage him from continuing with the idea since they felt it was unnecessary for funding. However, according to Villig, Taxifys competitors in the rapidly expanding market in which it competes shouldnt be considered as threatening.

Bolt made a significant move to handle stiff competition from their close rival, Uber. Villig committed himself to ensuring customer and driver satisfaction by paying better wages than their competitors, who were paying low commissions at the time. He indicates that this primary goal was to please drivers, and those drivers could do their best to ensure happy customers. All the organisms in this ecosystem provide an essential function, and being thrifty from the start has allowed Bolt to offer higher wages to our drivers sustainably (European CEO, 2018). Besides, their operational cost as a percentage of revenue becomes below the industry average, giving synergy to compete globally. Its also a deliberate action; he decided to increase driver compensation because he believed doing so would benefit the company and help beat Uber internationally.

Another barrier that almost shuttered Villigs dream of becoming an international entrepreneur was the lack of an entrepreneurial ecosystem, especially when funding was necessary. An environment that lacks appropriate financing would pose challenges to zealous entrepreneurship, as described in the Isenberg mode (Brown & Mason, 2014). As a young man who had just graduated from high school in 201, Villig would not raise enough money to sell his idea internationally and in Estonia. The $5500 he borrowed from his parents was not significant enough to help him venture into a global market and face off against giant companies like Uber. While Uber was generating billions of dollars, Villig launched his app with only $5500 he borrowed from his parents (Tabares, 2020). Villig admits that the first six months of his app launching were the toughest he experienced in his entrepreneurship journey.

To overcome the funding barrier, Villig sought co-funding from his older brother, who had prior work expertise in technology. He became instrumental in the companys founding, especially during the first six months. However, Markus Villig was in high school when he developed his software and had to work hard to get cab drivers in Tallinn to use it. The following winter, he had several hundred drivers and a fully operational service. A little over nine months later, he had collected ¬70,000 in donations (Conboye, 2021). The next ¬1.4m he raised was also from local investors and only took six months. With its entry into the international market, Bolt gained investment partnerships with international investors like Didi, Daimler, and BMW. In 2018, Bolt, an Estonian startup got into competition with Uber throughout Africa and Europe, just made a closure of $175 million in additional funding, bringing its valuation to $1 billion, making it the latest unicorn worldwide ride-hailing industry (Russell, 2018).

Enablers to Villigs venture

Even though Villig lacked enough money to actualize his entrepreneurial idea, his strength lay primarily in his knowledge of Estonias transportation industry. According to Markus Villig, Taxifys goal was to differentiate itself in the taxi service industry in several ways: through a commitment to local expertise. This was possible because he had already studied the Estonian Taxi market and identified specific gaps. For that reason, the company was dedicated to providing drivers with better terms than those offered by competitors like Uber by charging a fee of only 1015% for every ride instead of the latter companys standard 20%25%. Customers have more outstanding options while using this service, including paying cash and selecting their drivers.

Moreover, the company pushed into the international market due to Villigs commitment to providing transportation services following international and national legal procedures of their potential market. The management team at Taxify has likely learned a thing or two from Ubers problems. Uber has had run-ins with regulators in various nations (UnicoTaxi, 2020). Taxify has avoided the controversies that have plagued its more well-known competitor by placing a premium on excellent company governance at any time and cooperating closely with regulators from the outset.

Types of internationalization

Theories used in Internationalization

Internationalization is the expansion of economic activities beyond a nations borders. It is divided into economic school, which views internationalization as investment patterns for markets in other countries, and behavioral school(Azuayi, 2016). International entrepreneurship utilizes theories such as the Uppsala internationalization model, the Born Global approach, and the network approach.

The Uppsala internationalization model was developed by Johanson in 1990 and valued in 1997, influenced by behavioral theory. For this model, a business that adopts internationalization increases its involvement in the international markets, and these activities tend to occur regularly, fueled by commitment and knowledge of the market (Kim, 2018). Uppsalas model proposes that the state aspect of a firm affects its change aspect, which then increases market knowledge and stimulates commitment for subsequent market cycles. This model expands international involvement in small steps into the foreign markets where a business has opened its operations.

The network Approach is another internationalization theory that helps analyze a businesss internationalization process. It uses a process approach network as it provides the necessary framework to understand companies in the business network. The model also involves investing in new networks in the company and, in the process, penetrating available positions and increasing commitments in other companies that it is already based on (Azuayi, 2016). The relationship developed with different companies is then understood as national networks; hence, firms may decide to internationalize because their connected firms are doing the same. According to the network approach, companies establish their positions and develop them depending on their partners in the foreign market network. It is believed that firms start from the domestic markets and expand to create business relationships with other countries, international extension, penetration, and integration.

Born Global approach, also known as international entrepreneurship, views internationalization as an economic strategy and ignores factors such as individual decision-making. The course must provide a clear view of radical strategic understanding, which is essential for entrepreneurs. It is a new emerging trend for entrepreneurs and businesses.

How and why did they choose the internationalization route

Over the years, internationalization has continued to be an interest to companies. For Bolt technology businesses, internationalization was the most appropriate way to participate in the international market (Kim, 2018). As much as its domestic market was flourishing, the gap and the need to venture into new markets with potential fueled the need to choose the internationalization route. A long-term plan for penetrating their most contemporary market needed to be well outlined to ensure proper strategy in unleashing their business to the larger market. For bolt technology, despite the challenges, venturing into new markets through internationalization has been a successful activity. Internationalization has transformed the business landscape leading to a dynamic market situation (Welch, 2004). Other uber businesses receive stiff competition from Bolt, and going beyond the borders makes the company more competitive than ever (Solberg, 2017). Subsequent ventures had different routes to internationalization as there are various routes to be part of the foreign markets. The aim is always to ensure the business only experiences demands with lower risks and control levels in its activities.

Conclusion

In conclusion, International Entrepreneurship is in the phase of venturing into new markets in various potential markets in different geographical areas and ensuring they form networks to hold a high position in these networks. With the need for innovation and discoveries, many international entrepreneurs, including Markus Villig, have come into the limelight to pursue new opportunities in place. The move by Villig to pursue an opportunity he identified in his hometown and take it to the international standard was enterprising, considering that other taxi companies like Uber had already established themselves globally (Conboy, 2021). As it is, Villig and his taxi idea have made significant miles in the industry, making him one of the best IEs in Europe and globally. In addition to Bolt Technology, Villig has invested in seven other portfolios which embrace cultural sensitivity and is working towards considering the local customs to ensure their market is growing wider each day. On several occasions, Markus Villig spoke about his future expansion into other markets with untapped potential. He is also partnering with renowned automotive manufacturers globally to ensure the continuity of taxi services across the globe.

One of the lessons one can learn from Markus Villigs entrepreneurial journey is that resilience and simplicity pay off. Villig is from a humble family that could barely support his dream. However, the 19-year-old, Villig worked through the hardship of raising funds and boiled down his ideas to achieve his target. Another vital lesson from Villigs entrepreneurial journey to developing Bolt Technology at the international level is that one should pursue their passion. Villig has been passionate about the taxi business since he was young (Conboye, 2021). He even had to ask his parents to fund his idea instead of paying college fees for him when he already knew where his passion lay. Lastly, from Villigs entrepreneurship journey, one can understand the importance of exploring the venture before advancing its final commitment. Villig began by exploring a local market in Tallinn, Estonia, understood the dynamics of the taxi industry, and then pulled his way into the venture, taking it globally. This is an important lesson for young and potential entrepreneurs seeking to venture into a new idea.

Reference list

Azuayi, R. (2016) Internationalization strategies for global companies: A case study of arla foods, Denmark, Journal of Accounting & Marketing, 05(04). Web.

Bolt Technology OU (2022) About Bolt, Request a ride 24/7. Web.

Brown, R. and Mason, C. (2014) Entrepreneurial Ecosystems And Growth Oriented Entrepreneurship Background Paper Prepared For The Workshop Organised By The OecdLeed Programme and the Dutch Ministry of Economic Affairs on, Research Gate [Preprint]. Web.

Conboye, J. (2021) No smooth ride in the journey to launch Bolt, Subscribe to read | Financial Times. Financial Times. Web.

Crunchbase (2022) Markus Villig  CEO & Co-founder @ Bolt  Crunchbase Person Profile, Crunchbase. Web.

DBpedia (2022) Bolt (company), DBpedia. Web.

European CEO (2018) Taxify CEO Markus Villigs Fresh Outlook Addresses Uber Problems, European CEO. Web.

Forbes (2022) Markus Villig, Forbes. Forbes Magazine. Web.

Hulbert, B., Gilmore, A., and Carson, D. (2015) Opportunity recognition by growing SMEs: A managerial or entrepreneurial function?, Journal of Strategic Marketing, 23(7), pp. 616642. Web.

Jurberg, A. (2021) How Markus Villig, at age 19, founded a $4.3 billion company, Medium. Entrepreneurs Handbook. Web.

Khin, S. and Lim, T.H. (2019) Entrepreneurial opportunity recognition, exploitation, and new venture success: Moderating role of Prior Market and Technology Knowledge, International Journal of Entrepreneurship. Allied Business Academies. Web.

Kim, J.-J.(2018) The review on the theory of internationalization of multinational firms and SMEs, The East Asian Journal of Business Management, 6(2), pp. 4957. Web.

Kreuzer, T. et al. (2022) The effects of digital technology on opportunity recognition, Business & Information Systems Engineering, 64(1), pp. 4767. Web.

Oviatt, B.M. and McDougall-Covin, P. (2015) International entrepreneurship, Wiley Encyclopedia of Management, 3, pp. 13. Web.

Porumboiu, D. (2022) How to lead innovation and Embrace Innovative Leadership, Viima.Viima Solutions Oy. Web.

Qrius (2022) Effectual logic: How entrepreneurs think, Qrius. Web.

Russell, J. (2018) Ubers European rival Taxify raises $175M led by Daimler at a $1B valuation, TechCrunch. Web.

Solberg, C.A. (2017) The internationalization process and firm resources, International Marketing, pp. 7399. Web.

Tabares, A. (2020) International Entrepreneurship: An Entrepreneurial Behavior Oriented to the Pursuit of International Opportunities, IntechOpen.Research gate. Web.

UnicoTaxi (2020) Ridesharing app development: Propellant your taxi business with these three lessons from Bolt (Taxify), UnicoTaxi. Web.

Welch, L.S. (2004) International Entrepreneurship and internationalization: Common threads, Handbook of Research on International Entrepreneurship [Preprint]. Web.

The fashion industry is as dynamic and changing as a business could ever be. Just when one gets a firm hold on the existing trends, the fashion industry takes an unpredictable turn. To be able to evolve as an entrepreneur in this industry, one requires more than just talent for design.

The Journey Into the Fashion Industry

Junaid Jamshed (J.) is among the fastest-growing entrepreneurs in Pakistan, founded in 2002, this singer-turned-designer has gained the credibility to be recognized as designer wear for both men and women by offering a wide range of products.

The range of its exclusive products includes formal kurtas, shalwar kameez, Kurtis, handwoven kurtas and chappals for men, and the entire wedding package for the groom including the traditional sherwanis, turbans, and chassis made in exquisite cuts and highlighting the fine art of eastern embroidery.

Junaid Jamshed (J.) offers an exclusive line for women as well. Naerang or the colors for women is an impressive range of vibrant handwoven, block printed, screen printed and Lawn fabric printed in vivacious colors, as well as trendy Kurtis and traditional abayas.

Junaid Jamshed (J.) has also been the first to launch a designer brand of perfumes for both men and women. The collection of mesmerizing fragrances consists of both attars and perfumes some of which go back over a century in their formulation technique. (Junaid Jamshed, 2002)

Inspiration and Values

One does begin to ponder that how such a successful singer decides to enter the fashion industry, upon reaching the peak of his music career, Junaid Jamshed said that he felt something in his life was missing which made him feel incomplete. Today, with a flourishing business, that space has been fulfilled, and to maintain that position J. puts a lot of emphasis on quality and innovation.

Growth Over the Years

After setting a mark in the field of fashion design Junaid Jamshed has recently added Junaid Jamshed Travels to its portfolio promising the same quality service and satisfaction to its customers.

With almost 34 outlets in 15 cities of Pakistan, he says the experience is one of the major reasons behind his success, and with the fashion world becoming more and more dynamic, Junaid says, he is in a constant hunt for new innovative faces with out of the box ideas to help him remain ahead of the competition

This opens gates for a lot of young entrepreneurs, with great ideas to gain the experience needed to start their fashion lines in the future. At Junaid Jamshed, all ideas are invited and respected as individual contributions, which helps these individuals have confidence in their work, become aware of the business dynamics of this industry.

Future Direction

In the future Junaid Jamshed plans to expand its business internationally, and opening more opportunities for young entrepreneurs, providing training through workshops, diversifying its fashion range in line with the cultural values of Pakistan, and becoming a complete fashion stop for its customers.

References

Junaid Jamshed, 2002, Web.

Larry Kanter Move over Calvin Klein  interview with BCBG Max Azria founder  Interview. Los Angeles Business Journal. 1997. FindArticles. 2008. Web.

Introduction

Entrepreneurship is the process of establishing a business for effective service delivery and for profit making. However, within the business community, no single definition of the word entrepreneurship has so far received unanimous adoption making entrepreneurship such a wide concept (Carsrud and Brannback 2007, p. 5). It is no doubt that entrepreneurship remains the most important feature for economic growth in the expansive history of economic timeline. Entrepreneurs, therefore, are the driving forces behind entrepreneurship as a process in expediting the ideals of a business (Philipsen 2010, p. 5). Different individuals have been able to drive business in ways that turn even dormant businesses into success stories. The world over, these business magnates have been able to inspire the business environment making their companies effective role players in the global economy (Gedeon 2010, p. 17). In the last couple of years, entrepreneurship took a new turn with most business entrepreneurs having to front new products and services to meet the desired demands of the ever-changing consumer needs.

This change, according to Philipsen (2010, p. 6), means that organisations may from time to time have to find ways of creating new jobs and seek new markets to keep with the trends in the economy. As businesses grope with the difficult task of surviving in the markets, chances are that business leaders have the capacity to turn around the operations of businesses they lead to make them reach out to their objectives (Gedeon 2010, p. 20). As business managers and corporate leaders, entrepreneurship is one of the qualities that strongly influences the success behind the businesses or organisations they lead. Therefore, this fact underscores the need to understand the individual profile of some of the notable corporate leaders, their characteristics, style of leadership, leadership qualities, and leadership approaches among other factors. Wu Yajun and Steve Jobs are some of the most notable entrepreneurs on whom this paper focuses.

Wu Yajun is arguably one of the most referenced entrepreneurial women in the business world. Wu Yajun is a former journalist turned real estate magnate whose entrepreneurial skills continue to shape leadership in the business community (Vanburen 2013). Yajun started her small business nearer home and has since spread her business canopy to embrace the entire world with major cities in China serving as her business hub. According to Vanburen (2013), effective leadership and strong charismatic personality has always featured substantially as the success factors in Yajuns business acumen. At the top of her priority, Yajun has positioned herself under a commitment schedule that offers her leadership aspirations the drive of purpose. Among the tried, tested, and trusted methods that Yajun displays, as part of her leadership zest is her adoration for the modern-day managerial skills that are synonymous with corporate success, especially in light of the real estate management (Vanburen 2013). Her pilgrimage to the levels of an excellent corporate leader springs from her ambition of self-discovery and the ever-burning need to transform the people around her, a feat that has galvanised world attention around her corporate leadership shrewdness. That Yajun continues to be an outgoing woman in the Chinese fiscal frontier has always been a subject debatable in every realm of global business politic as most of her success stories revolve around her hands on the job leadership approach, her critical thinking, and team skills notwithstanding. Yajun, nonetheless, is a perfect example of a real estate magnate and shrewd entrepreneur (Vanburen 2013). The world over, her popularity and her real estate corporate ventures have been, overall, yet very successful; all these fact files put together, points to one thing her secrets of success.

Wu Yajun entrepreneurial acumen

Much explores Yajuns real estate empire, yet we barely get to very little as to the contributory factors for these great achievements. True to Forbes claims, Yajun has impressively built up a name for herself in the most lucrative asset investment that stands at $ 4.4 billion, yet this woman did not just built these massive wealth and leadership acumen overnight, she toiled to achieve all these (Vanburen 2013). Unlike most of the widely cited successful and wealthy corporate investors, Yajun, according to Vanburen (2013), had not been born to a wealthy family  her parents were not that rich, and this gives her a rare mention of those considered to have come from rugs to riches. While having been born in a lucrative family does not necessarily qualify an individual to such unrivalled levels of managerial and leadership success, outgoingness, initiative, intelligence, and fastidiousness are all the traits attributed to Yajun as the model corporate leader in real estate development (Vanburen 2013). Positioning her within these leadership paradigms, Yajun continues to transform her business enterprise into a tabernacle of unseen marvels. In the end, Yajun has emerged as a Chinese corporate magnate, Chairwoman of Longfor Properties, investor, and author. Nonetheless, she is the founder and president of the Chairwoman of Longfor Properties that continue to expand its branches in most cities of the world (Vanburen 2013). Yajuns outspokenness and her stab at various outstanding business editions make her a popular celebrity and a household name in the vast continental Asia. In 2011, she emerged number 17 on the Forbes celebrity top 100 list, an embodiment that adds to her corporate life, currently she is worth 4.4 billion US dollar.

Steve Jobs is a Californian born in San Francisco in 1955. His earlier life is not anything to write about, Jobs childhood was miserable as his parents could not afford his upkeep and had to give him out for adoption (Whitney 2013, p. 2). Seeking to achieve the best, Jobs was always keen on making his management skills a priority in driving business at Apple Inc. Today, Apple Inc. is a leading multinational participant in the UK and Americas electronics market. His business acumen has since embraced diverse markets in other parts of the world (Maha 2013, p. 3). Jobs Apple Inc. is a proficient worldwide manufacturer, marketer, and distributor of personal computers, commercial servers, consumer electronics, and computer software. The companys chief products range from iPhone technology, iPad table computer, Macintosh computer and iPhone portable media players (Dedrick, Kraemer, and Linden 2009, p. 141). Founded in Cupertino California, Steve Wozniak and Steve Jobs are credited with pioneering the formation of Apple Computer. In its initial years, Apple Company was predominantly manufacturing personal computers, such as power mac and Apple II Macintosh, but waning product sales and poor market share later frustrated its moves. This prompted the management under Steve Jobs stewardship to step up its inventive to transform the companys market infrastructure.

Steve Jobs entrepreneurial acumen

Steve Jobs nurtured corporate philosophy upon assumption of leadership as the CEO of Apple Inc. in mid of 1990s after its near collapse. Under Jobs watch, Pisano and Shih (2009, p. 116) note that the company has established itself as a world class leader in the manufacture of consumer electronics, strategizing as a media sales and inventive technology industry that prompted it in 2007 to drop the tag Computer in its initials resulting in the birth of Apple Inc. (Hamm 2011). Today, the company boasts of being the largest global corporation with a market size valued at $626 billion and a market cap rated above both the Microsoft and Google combined. All these achievements are attributable to Steve Jobs entrepreneurial skills that continue to inspire the business and management of Apple Inc. Under Steve Jobs watch Apple Inc. emerged as a revolutionary company in the consumer electronic market, especially after the launch of its key gadgets in 2010 (Maha 2013, p. 12). In the succeeding year, the global market tag for Tablet PC alone rated at $35.3 billion and this grow exponentially in the succeeding months (UK  Tablet PC market forecast & opportunities  2016 2012, p. 2). Today Apple Inc. market anticipates a bigger market share with the growth of its major products locally. Apples products have received wide acceptance in the UK with an augmented demand from local enterprises.

According to Maha (2013, p. 3), Apples products have filled the global market gap by providing the local consumers with magnificent products that fits their ever-changing needs perfectly. Moreover, under Jobs entrepreneurial leadership, Apple Companys global market grew at a much larger pace than was initially anticipated. Apple Inc.s higher market penetration in most parts of the world only explains Jobs robust entrepreneurial managerial acumen (Lessard, Lucea and Vives 2012). Until the end of 2013, Apple Inc. led in different markets with its ground-breaking products spanning a decade long radical inventiveness under Steve Jobs.

Concepts and models learn from module MGT6A3

Business logic holds that entrepreneurs are more than just brains for generating money. Essentially, they are also avenues for achieving societal purposes and for guaranteeing meaningful livelihood to their employees (Mueller and Thomas 2000, p. 58). Accordingly, the value that a firm creates is an overall achievement that carter for the greater common good of every stakeholder in the business. Therefore, value based leadership is a key ingredient in entrepreneurship. It is an effective instrument in organisational culture capable of maximising value for the business. As key spheres of business strategy, sustainability, planning, and collaboration are the domains of consideration when an entrepreneur means to create tangible values in a business. Insightful entrepreneurs create frameworks that capitalise on human and societal value especially in the concept of decision-making (Jong and Marsili 2010). Value oriented entrepreneurs believe that they have a duty to meet the needs of their businesses by insisting on the production of goods and in the generation of services that improve the lives of the consumers. Moreover, value oriented entrepreneurs seek to enhance the quality of life for their workers while developing a robust network of suppliers to ensure financial viability across the spectrum (Carsrud and Brannback 2007, p. 10). These undertakings together guarantee resources for innovation, and development for the businesses, while delivering great returns to the investors.

Features of the chosen entrepreneurs

The concept of entrepreneurial principles is not unique to the modern day management practices. According to Darr (2010, p. 7), the development of these principles can be traced back into the history of human civilisations that characterised the earliest forms of management and leadership. Other traces of management principles have been documented as early as from before the Prussian administration in the 15th century under the reigns of Empire Frederick the great. The modern-day management principles have their foundation during the pre-industrial period management of the early 18th century that called for the new world order (Carsrud and Brannback 2007, p. 25). The wave of industrial revolution that swept the world in the early 18th century, challenged, changed, and shaped the ways of early management, entrepreneurial, and leadership practices. During and after the 19th century, another wave of change in management popularly as known the post-modernist management emerged (Darr 2010, p. 8). The theories and perspectives that inform the contemporary entrepreneurial systems are poised against the backdrop of massive economic, technological, and political changes that has driven the world over the years. Both Yajun and Jobs developed their entrepreneurial ambiences through these principles and theories (Carsrud and Brannback 2007, p. 27).

Principles of management and their application to entrepreneurship

After studying human behaviour for a long time, Fayol came up with various leadership principles for managers to follow when handling workers. He argued for the replacement of tiresome work methods with scientific based modes (Rodrigues 2001, p. 885). He encouraged managers to systematically select, train and develop individual workers and invest greatly on their cognitive skills. He also saw that cooperation with workers is an essential factor that streamlines organisational undertakings. In addition, he advocated for equitable division of labour between managers and employees to maximise on performance (Rodrigues 2001, p. 886). Both Yajun and Jobs espoused leadership context are effective in achieving the desired outcomes through administrative management principles that seek to emphasise on worker motivation. The espoused leadership principles suggest that different strategies can be applied through action to procure the intended outcomes (Burdus 2010, p. 35). Much of Yajun and Jobs entrepreneurial work dwelt on leadership behaviours that shape management. Principles displayed by Yajun and Jobs aim to determine employees perceptions of their leaders instructional management behaviours and perceptions. The integrative frameworks of these entrepreneurs hold that organisations adopt policy of risk minimisation espoused by principles that manifest themselves. According to Burdus (2010, p. 37), the risk of sharing offers the ideological incentive of mutual advantages within the organisation, and this ensures that employees work in collaboration with their leaders to protect the organisation from falling apart.

Relevance of the two entrepreneurs

The capacity as well as the enthusiasm to organise, manage, and develop an organisation or a business venture alongside any of its perceived or real risks in order to bring the profit into the business makes entrepreneurship unique to certain types of individuals and businesses (Jong and Marsili 2010). The most forceful example of a scenario of entrepreneurship is the ability to establish a new business al together. Generally, the mainstream economics combines land, labour, capital, and natural resources as key features that have the capacity to deliver a profit to businesses. According to Jong and Marsili (2010), the spirit of entrepreneurial has its characteristics based on innovation, risk taking with the cumulative element being its efficacy on the national ability to excel in an increasingly competitive global market and in an ever-changing business environment. Considering Yajun and Jobs contributions to the development of the corporate world, it becomes easy to characterise them as very abled bodies that fit the bill of being entrepreneurs (Carsrud and Brannback 2007, p. 28). Within the definition of an entrepreneur, the key characteristics involve individuals with the capacity to combine the already existing resource frameworks and expand them into creative businesses (Mueller and Thomas 2000, p. 65). Entrepreneurs drive businesses for a variety of reasons, the outstanding one being creating value both for profit maximisation and for competitive advantage.

In the contemporary knowledge based society, entrepreneurs learn to engage their teams more effectively through innovation. In keeping with the market trends, entrepreneurs focus on generating new knowledge while seeking to increase on external collaboration to bring about value to their offering (Rodrigues 2001, p. 888). Accordingly, the value that companies seek to create is normally a measure of both short-term profits as well as how such entrepreneurs sustain the conditions that permit them to flourish over time (Schumpeter 2010). Business managers, therefore, seek to deliver more than mere financial returns. Through creating value, corporate leaders build enduring institutions that make them compete well in the markets. Great entrepreneurs, according to Schumpeter (2009), seek to make money though in their choices of achieving this, they prioritise on building enduring institutions. In doing so, they invest in the future and over time, they become aware of the needs to build individuals, the institutions, the society, and the countries in which they operate (Carsrud and Brannback 2007, p. 32).

Conclusion

Overall, entrepreneurship is the most important factor of production in a business structure. Acknowledging and reconstructing the cadres that informs good entrepreneurial management are key elements for the success of business organisations and institutions that aspire to yield better results. All nations around the world, economies, communities, organisations, and businesses look upon entrepreneurs to transform them in ways that inspires development and sustainability. In many organisations, the lifeline of their success is increasingly becoming more characteristic with management principles and leadership approaches. As such, entrepreneurs who have the interest of their organisations at heart should always attest to the willingness to embrace the various principles and perspectives that informs good management to better their organisations chances for growth and competitive advantage. The ability of entrepreneurs to manage their corporations efficiently mirrors the success of those organisations and the people they lead. Accordingly, the need to identify and develop well-rounded entrepreneurs for the future, with a purposeful global focus, involves the recognition of the fact that organisations can reap from transfers of knowledge, expertise, skills, and experiences.

Most importantly, however, is the balancing act, the success of various entrepreneurs is their ability to balance between global, regional and local needs for their businesses to succeed in their markets. The balancing act is the extent to which entrepreneurs allow their organisations to reach out to the optimal matrix of local, regional and global and meet their consumer needs alongside the established business standards that have become commonplace in modern day management. Entrepreneurs as has been the case of Yajun and Jobs must always be individuals with the capacity of innovation and be able to drive change and take cognisance of these innovative and visionary management perspectives in anticipation of greater organisational output.

References

Burdus, E 2010, Fundamentals of Entrepreneurship, Review of International Comparative Management, vol. 11, no. 1, pp. 33-42.

Carsrud, A., and Brannback, M 2007, Entrepreneurship, Greenwood Press, Westport, Conn..

Darr, K 2010, Introduction to management and leadership concepts, principles, and practices, Jones & Bartlett Learning LLC, New York.

Dedrick, J. Kraemer, K. L., and Linden, G 2009, Who captures value in a global innovation network? The case of Apples iPod, Communications of the ACM, vol. 52. no. 3, pp. 140-144.

Gedeon, S 2010, What is Entrepreneurship?, Entrepreneurial Practice Review, vol. 1, no. 3, pp. 16-35.

Hamm, H 2011, Apple loses European market share, cash strapped buyers pass on iPhones,

Jong, J. and Marsili, O 2010. Schumpeter versus Kirzner: An empirical investigation of opportunity types, Web.

Lessard, D., Lucea, R. and Vives, L 2012, Building your companys capabilities through global expansion.

Maha, H 2013, A study on the marketing strategies of Apple Inc. (Dissertation),

Mueller, S., and Thomas, A 2000, Culture and entrepreneurial potential: a nine-country study of locus of control and innovativeness, Journal of Business Venturing, vol. 16, no. 8, pp. 51-75.

Philipsen, K 2010, Entrepreneurship as organizing- A literature study of entrepreneurship, Web.

Pisano, G. P. and Shih, W. C 2009, Restoring American competitiveness, Harvard Business Review, vol. 87, no. 7, pp. 114-125.

Rodrigues, C 2001, Fayols 14 principles of management then and now: A framework for managing todays organizations effectively, Management Decision, vol. 39, no. 10, pp. 880-889.

Schumpeter, J 2009, Entrepreneurship as Innovation.

Schumpeter, J 2010, The nature and essence of economic theory, Transaction Publisher, New Brunswick.

UK  Tablet PC market forecast & opportunities  2016. Web.

Vanburen, A 2013, WU YAJUN: Ex-journalist Now PRC Property Billionaire.

Whitney, L 2013, Apple to buck the trend in sour computer market.

If I were to start my own business, I would choose sole proprietorship as the best business structure for a start. Its advantages are ease of organization and low organizational costs. It is the most convenient structure for a small business in terms of taxation and less risky than a partnership. Another convenience is complete independence, flexibility, freedom, and efficiency of action (this type of business provides the owner with maximum freedom of action).

Sole proprietorship refers to a business owned by one person or household. This structure has one significant advantage: all the assets and liabilities of such an enterprise are both personal assets and the owners liabilities. The sole owner bears unlimited liability for the enterprises debts and its other obligations: if the enterprise is not able to pay its debts, then any property of the owner can be seized. A feature of sole ownership is the flexibility of taxation. All proceeds and all expenses are the property and responsibility of the business owner. With this form of organization, the owner pays only self-employment tax if the revenue is more than $ 400 per tax year (MacKenzie & Smart, 2020). Thus, in general, the owner must pay estimated tax: income tax plus self-employment tax.

A partnership is an enterprise owned by two or more people called partners who jointly own its capital. Partnership agreements usually stipulate how business management decisions should be made and how the businesss profits and losses will be allocated. Unless otherwise specified in the partnership agreement, the partners bear unlimited liability for the enterprises obligations. The advantages of such a structure are about the same as with sole ownership  there is no unnecessary routine with documentation for setting up a business; however, from an asset protection perspective, partnerships are an extremely risky way of doing business (Spadaccini, 2007). Not only can the lenders of the business gain access to your personal assets, but the owner is personally responsible for the actions of their partners.

If a future entrepreneur is aimed at a serious big business with the prospect of development and with the attraction of investment funds, then an LLC should be their choice. A limited liability company is founded by one or more persons, the authorized capital of which is divided into shares of the sizes determined by the constituent documents. It owns a separate property, recorded on its independent balance sheet, can, on its own behalf, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and defendant in court (Mancuso, 2020). Thus, it is endowed with civil legal capacity and acts as an independent participant in civil turnover.

The corporation is a widespread and versatile form of business. The company issues shares, and each of the co-owners (shareholders) receives a percentage of the total number of issued shares corresponding to the share that this shareholder contributed to the companys total capital. The corporations highest governing body is the meeting of shareholders, at which decisions are made that are approved by a majority of shareholders votes. Shareholders make decisions on the distribution of profits, changes in the enterprises organizational and legal form, and elect a board of directors, which, in turn, appoints managers to manage the affairs of the corporation.

The advantage of a corporate organization is that shares can be transferred from one owner to another without disrupting the enterprises regular operation. Besides, shareholders have limited liability for the corporations obligations. The advantage of such a business structure is the ability to generate capital, raise funds through the sale of a share, and limited liability (Mancuso, 2020). When it comes to taking responsibility for business debts and corporate actions, shareholders assets are protected. Also, corporation owners pay only taxes on corporate profits paid to them in the form of wages, bonuses, and dividends, while any additional profits are provided by the corporate tax rate, which is usually lower than the personal income tax rate (Mancuso, 2020). The downside is the fact that this type of business is costly and time-consuming to run. In addition, corporations are subject to double taxation (when the company makes a profit and when dividends are paid to shareholders). There are two types of corporations: C-corporations and S-corporations. The first differs from the second in that it pays taxes separately from the owners.

In the US, companies main taxes include corporate income tax, sales tax, real estate tax, capital gains tax. Different types of companies pay different types of taxes and are also eligible for different deductions and benefits. C-companies pay taxes on all profits. Typically, the tax is levied on the money that the business uses to cover costs or losses. And also from the profit, which is distributed among the owners as dividends. This happens before tax is paid since each shareholders dividend income is separately taxed at the personal income tax rate.

Partnerships, sole proprietors, S-corporations, and LLCs, do not pay taxes on business profits since they are not separate taxation objects. Instead, the organizations transfer the profits to the owners, who, in turn, report the income or losses of the business on their personal tax returns. In LLCs and S-companies, income tax is paid by the shareholders of the enterprise themselves. After the adoption of the law on the reduction of taxes and jobs, a new income tax deduction was established for such organizations (McKenzie & Smart, 2019). Now, until 2025, owners of partnerships, limited liability companies, and S-corporations have the opportunity to deduct up to 20% of the companys net profit for income tax.

References

Mancuso, A. (2020). LLC Or Corporation?: Choose the Right Form for Your Business. Nolo.

McKenzie, K. J., Smart, M. (2019). Tax Policy Next to the Elephant: Business Tax Reform in the Wake of the US Tax Cuts and Jobs Act. CD Howe Institute Commentary, 537-546.

Spadaccini, M. (2007). Business Structures: Forming a Corporation, LLC, Partnership, Or Sole Proprietorship. Entrepreneur Press.

Entrepreneurial Mindset

It is true that every business starts with an idea. However, the most important prerequisite that a person seeking success in the business world should gain way before even considering to open his or her own business is the entrepreneurial mindset. An idea precedes action in the same way that a plan precedes a decision (Graham, 2005a). Thus, in order to figuratively make a thought become flesh, one should revise his or her beliefs and convictions and ensure that they have overcome or in the process of actively overcoming self-limitations. As a result, future businessmen and businesswomen would be able to get a better grasp of what constitutes their mindset and whether their mindset is indeed entrepreneurial.

Now, not much is known about two friends  Chris and Pat  education and professional background. In the case description, it is stated that Chris is a liberal arts student whereas we do not know exactly what Pats major is. Yet, the likelihood of developing an entrepreneurial mindset is not precisely tied to a persons academic credentials and work experience even though there might be a certain correlation.

When stripped down to the very basics, the entrepreneurial state of mind is a mixture of common sense and a proactive approach to living  not only to building a business. Both Chris and Pat would benefit greatly from heightening their awareness of their personal skills and qualities  both outstanding abilities and areas of growth.

Chris and Pat could assess their current values and vision and check whether they are aligned with what is called the entrepreneurial mindset. First, having this type of mindset requires having a rather narrow vision that ensures total commitment to a cause. The goal that Chris and Pat set so far is to develop a broad student network that would help people meet each other no matter the distance.

Chris describes himself as a professional networker, which means that he already devotes a certain amount of time to his endeavors in the said field. His experience might be of great use when building a network, and his pre-existing interest will fuel his drive and passion. Pat was the one who saw a good business opportunity in connecting students across the United States, which might mean that he has an eye for successful projects. If united, both men can create something innovative and useful together.

Another important to-do for developing the entrepreneurial mindset is putting oneself in challenging situations. It could be beneficial if Chris and Pat would reflect on their past and how they approached problem-solving when an opportunity presented itself. It is possible that they already worked on different smaller-scale projects and gained meaningful insights into the nature of completing tasks of varying complexity and dealing with uncertainty. Further, it is critical that Chris and Pat do research on the subject matter  after all, it has been found that the majority of successful people maintain steady reading habits (Graham, 2005a).

No idea is innovative or outlandish enough not to be tried before  in one form or another. Thus, the men could become familiar with the stories of failures and success to try and learn from others mistakes and adopt the best strategies. Lastly, Chris and Pat should be ready to see each problem from different sites and angles and except the existence of various solutions. This realization will help them abandon a bad idea and not care about the sunken ship cost.

Startup Teams

According to Altman (n. d.), the necessary minimum for a tech startup team is two founders, which means that Chris and Pat meet this standard. While startups with only one founder is no rarity, Altman (n. d.) reasons that in the business world, there is not much sense in being a lone wolf, especially at the seed stage of a tech venture. The author explains that one founder should be exceptionally good at upholding the vision and developing a product accordingly (Altman, n. d.). The second founder should balance the hard skills of his or her partner by applying such soft skills as communication with end-users.

Now, we know that Chris majors in liberal arts and partakes in networking events regularly, which might mean that he has sufficient social skills to be in charge of gaining feedback and marketing. This means that building the product itself is likely to be delegated to Pat. To make their venture robust, the men should use their friendly bonds to support one another and resolve conflicts and arguments effectively. The worst-case scenario for a startup launched by a group of friends is the atmosphere of relaxation and leniency when it comes to setting deadlines and evaluating results.

Now that a startup has two founders with their roles assigned properly, Chris and Pat should consider recruiting other specialists. In the case description, it is not stated clearly what the desired end-product would be. However, given the nature of their business idea, it is safe to assume that Chris and Pat would like to start an online meetup platform or develop an application.

Thus, their startup team is most likely to need a software developer and a web-designer, preferably someone who specializes in creating user interfaces (UI) and enhancing user experience (UX). At the initial stage, Chris and Pat will be fulfilling a variety of roles: putting together a business strategy, managing co-founders, and marketing the product. Nevertheless, as the startup grows and in case the founders receive sufficient funding, they might want to delegate these tasks  for instance, recruit a marketing specialist.

Chris and Pat should take recruiting new teammates with utmost seriosity  as Altman (n. d.) puts it, mediocre teams do not build great businesses. The founders should think through the search process  the key criteria for the candidates, platforms for communication, and interviewing. Altman (n. d.) emphasizes the necessity of a good leader to be both flexible and rigid. In this context, rigidity means adhering to the vision and mission whereas flexibility stands for the ability to change ones mind in the face of uncertainty.

It is critical that the founders understand that meaningful collaboration is just like a two-way street: while Chris and Pat can and should demand specific skills from candidates, they should also outline how participation will benefit potential teammates. Ideally, they should be looking for good technicians that enjoy what they are doing and who are passionate about the field. At the same time, as Gerber (2009) reasons, a startup cannot rely heavily on the technical side of the work. In his book, the author provides a formula for the perfect new business: 33% entrepreneurship, 33% management, and 33% technical work. Thus, Chris and Pats team should unite all the said elements in a reasonable proportion.

Idea Generation & Development

Admittedly, idea generation is the first stage of every business venture. However, according to Graham (2005b), beginners tend to overestimate the importance of coming up with a workable idea. The author argues that some of them depend heavily on the muse  they are convinced that whether a brilliant idea comes to them at once or it does not come at all. On top of that, another common myth about idea generation is that navigating the thought process in the right direction is all that it takes to start a business.

Such people tend to separate ideas into two categories  genius and useless, or rather, they become stuck on one idea and do not want to abandon it even if it proves to be not exactly viable. Contrary to that belief, Graham (2005b) reasons, an idea is a tiny first step towards realization and financial prosperity. If a thought  no matter how good  is not backed up by hard work and rational decision, a project is bound to fail.

According to Graham (2005b), Chris and Pat should recognize the power of language when coming up with ideas. Instead of stating We need to build a social network for students, they should ask themselves Can we build a social network for students? A well-posed question sets a curious mind out on a search for questions whereas statements often limit possibilities. In his article, Graham (2005b) pays attention to the issue of criticism and what is more important, self-criticism. He emphasizes the easiness with each a good idea can be completely debunked by critics.

For instance, in the case of Chris and Pat, if someone asks the founders about their goals, they might as well doubt the validity of their plan. The self-doubt might go as far as making the friends wonder whether they are ever going to be able to compete with the giants. After all, students have been using other popular and well-developed social networks such as Facebook, Twitter, Instagram, and Tinder for meetups for many years.

This, however, should not discourage Chris and Pat from pursuing their goals. Instead, when reflected upon, the presence of numerous contenders should lead Chris and Pat to the very nature of a good startup idea  it is reminiscent of what has been done in the past and offers new features at the same time.

Now that the definition of a good startup idea is established, it is imperative to find out how to manage the process of idea generation. The most common method for coming up with new ideas is brainstorming, which might seem somewhat chaotic at first glance but has its rules (Find and validate your startup business idea, n. d.). Overall, it is recommended to give the participants of a brainstorming session full freedom of thought but at the same time, make them focus on the topic and document their findings.

For instance, it might be a visual board or a shared Google document. Graham (2005b) states that startup founders need new technologies and good friends in order to stumble across a feasible idea. New technologies will usher them into the world of innovation, and good friends opinion will be whether a motivation or a wakeup call.

Creativity, Empathy and Design Thinking

Creativity is not a rare personality trait nor is it innate. When approached properly, it is rather the opposite: creativity can be applied to every aspect of an individuals life, and everyone can become creative to a certain extent. In her TED talk, Tina Seelig presents what she calls an innovation engine: the researcher has dissected the broad concept of creativity down to six basic elements (TEDx Talks, 2012). Seelig seeks to get rid of a narrow vision as to what creativity is and offer simple ways to unlock every persons creation. Her scheme looks as follows:

• The Inside:

  • Attitude. In Chris and Pats case, the right attitude for developing creativity may be described as the entrepreneurial mindset that pushes to overcome challenges, look at a problem from different angles, and be solution-oriented.
  • Imagination. Imagination is one of the entrepreneurs most powerful tool as the human brain processes fantasy in the same way it processes reality.
  • Knowledge. Seeking for new ideas, Chris and Pat should still base their findings on real-world evidence.
• 2. The Outside:

  • Culture. Given that Chris and Pat reside in the United States, it is safe to assume that they are in luck. The United States of America traditionally ranks high as a country with a favorable business climate and a vibrant startup scene.
  • Habitat. The case description provides no information about the founders actual living conditions. One may only recommend to assess the habitat as to whether it is appropriate for daily creative thinking processes.
  • Resources. Idea generation and development as well as going through succeeding stages of a startup require access to knowledge and other peoples expertise (TEDx Talks, 2012).

The scheme elaborated by Seelig helps evaluate the prerequisites for creative thinking. It is critical that Chris and Pat understand that starting a startup is synonymous with unlocking creativity and use both inner and outer sources wisely.

Empathy is a key element of building business since not a single product or service makes sense if it cannot appease its customer. From the case description, it is clear that both founders are students, and the target audience of their end product is also students. This means that Chris and Pat themselves might be typical users and create user personas based on their own experiences with student networking.

However, it would still be better if they expanded the scope of their research and include more people of the appropriate demographic. Chris and Pat could design a simple survey with questions concerning student socialization: for instance, what online platforms students typically use to organize meetups, what they like about these media, and what they do not. The more answers the founders manage to receive, the easier it is going to be to expose common patterns in social network use and user stories.

The entire process of idea generation and user persona creation should be dominated by design thinking. It is an effective methodology based upon a solution-oriented approach toward problem-solving, which typically takes several stages.

Empathizing is the first step whereas defining the problem based on other peoples experience is the second. The stages following the definition of an issue or a challenge include ideation, prototyping, and testing. Now, one might notice that the design thinking process involves ideation  something that the founders have already embarked upon. However, it is essential to point out that ideation after empathizing and definition is characterized by more precision and concentration as opposed to brainstorming with its non-discriminative approach toward ideas.

Testing and Experimenting

As it was mentioned before, it is not exactly clear whether Chris and Pat have a website or an application in mind. For the sake of simplicity, from now on, it is going to be assumed that the founders have settled on developing a social network application. At the stage of testing and experimenting, it is critical that all the teammates work closely together, gain feedback promptly, and response to emerging issues. Web designers and software developers will have different, which are, however, interconnected by the common purpose.

Some of the issues that software developers will have to tackle at this point include geolocation, time zones, integration with other social media, safety, and confidentiality. Just like some other social network applications (example: Tinder), the application by Chris and Pat will need to have a feature enabling a user to filter profiles by location. In the case description, it is stated that the founders would like to help to connect students who might be living far away.

Thus, as opposed to aforementioned Tinder, the application should not have any limitations concerning distance. The next issue associated with covering vast distances via online application is understanding other users time zones. Chris and Pat could take inspiration from corporate software such as Slack that adjusts to each users local time and warn others not to bother him or her past a specific hour. Further, end-users might find it extremely convenient to log in using their Google+ and Facebook profiles or a phone number. While it might be a great feature to implement, Chris and Pats team will need to ensure data safety and confidentiality.

Web designers will need to create an intuitive interface that does not look busy or overloaded and which at the same time, has all the important features. Among the primary tasks to complete would be designing a chat window, creating a well-structured profile layout, and creating lists for search criteria and a search result page. Another good idea would be to integrate a map for quick search across the globe.

What would make the application fit in its market niche or on the contrary, distinguishable, is a color scheme. Chris, Pat, and the team could go down the familiar road and choose neutral blue colors akin to those used by Facebook or Twitter or invent something different. However, it is critical that the colors trigger desired associations: for instance, Tinder uses hot pink, which signalizes that it is a dating social network application.

The described stage is a game of trial and error and also the phase around which many startup founders decide to quit due to the unexpected challenges. What might help Chris and Pat greatly is to be sociable and outgoing. As much as developing a product requires undivided attention and hours upon hours of solitary confinement in the office, socializing and sharing the results to date allow for prompt and much-needed feedback.

Once the product is more or less apt for testing, Chris and Pat should consider inviting individuals belonging to their target audience to test the application. Vital thing about letting real people test a product is how unexpected the ways in which they interact with software might be. Thus, it is important not to wait passively for the feedback but observe potential users every step when using an application. The founders and the team should take notes and make amendments accordingly if necessary.

Finding Product-Market Fit

Product-market fit is defined by the degree to which a product or a service satisfies customers needs. The harsh reality of the business world is that even the greatest team with the most brilliant ideas on paper cannot win if they cannot find a fitting market niche. Altman (n. d.) employs the following logic: if a bad startup meets a great market, the market wins as it does not accept anything unfit for keeping customers satisfied. If a great startup emerges in a bad market, the market does not lose anything, unlike the entrepreneurs. Any product  no matter the quality  has no practical value if it is not appreciated by anyone. The best case scenario is a happy coincidence when a robust startup taps into an appropriate market and its founders succeed in finding the perfect product-market fit.

According to Altman (n. d.), Chris and Pat should start by putting forward a value hypothesis for which they need to ask themselves and the team three questions:

• What are we trying to build?
• Who is desperate for our product?
• How are we going to build it?

It appears that the problem that might emerge in the case of Chris and Pat is the lack of precision in their concept and too broad an audience. As of now, each social network website and application fulfill a particular function or at least market themselves as completing such. For instance, Instagram offers the visual allure of high-quality pictures and the opportunity to take a peek into the lives of your friends, family, and celebrities. Twitter is known for its sharp political commentary and rather specific sense of humor which often give rise to many Internet sensations.

Now, Chris and Pat want to help students connect; however, it is not evident what the end goal of connection is. Some ideas that might be viable at this stage include building study groups to help boost academic success. However, the founders mention that they would like to offer a shared platform for students across the country and even across the globe, which partly excludes the possibility of live meetings.

What might be more workable is building an application for student projects and startups where other founders could recruit team members. For this purpose, Chris and Pat could consider integrating the application with LinkedIn so that employers and candidates could gain access to each others academic credentials and information about work experience. After all, to market, seldom and uniqueness matter even if it is not the first attempt at creating a product of the given kind.

Altman (n. d.) warns about premature scaling: the author reasons that finding product-market fit should precede spending vast amounts of money on development and production. Keeping this in mind, it seems that Chris and Pat might want to start small  test their product within their respective universities or their city. Even though the data on user interest might not be exactly inferential, the process of marketing and gaining feedback might be extremely insightful.

Altman (n. d.) reasons that there is not much ambiguity when it comes to good and bad product-market fit: one cannot observe failing sales and user disinterest and conclude that the startup is staying afloat and making progress. Product-market fit is tangible since the market and customers are extremely responsive and do not hesitate to show appreciation for something they need.

Building Business Models

There are many business models that Chris and Pat might like to entertain while ensuring the validity of their plan. The product/ service model, otherwise known as hook & bait, is the classic approach. By implementing the said model, Chris and Pat would make an offer to a potential client in which they give him or her access to a free trial part of their product. In the case of a social network application, the hook part would be letting customers use the free version with limited functions. For instance, such a release could only allow for searching within a fixed radius or one country as opposed to the full version which would include browsing across the globe.

It is critical that the hook version is not a half-hearted, underfunded attempt and a pale shadow of what a fully developed application would be. These days, customers are increasingly demanding and have a short attention span. In case they run into bugs and inconsistencies while interacting with the trial version, it might deter them from buying the product. To make this business model robust, Chris and Pat should do a lot of marketing, understand their target audience, and make sure that the free version is flawless.

The ad-based model is trendy among both developers and users. Within the said model, the product is free whereas the startup team relies on the revenue from advertisement. For all its advantages, the ad-based model might not be exactly appropriate for the infancy stage of building a startup. When a customer base is in the process of accumulation, it is not precisely reasonable to depend on the viewership of the placed advertisement in an app.

However, once Chris and Pats startup enters the growth stage, they might want to entertain this option. It is imperative that the web designer in their team knows how to implement ads without making the interface overloaded or annoying. Customers might understand developers interests in generating revenue  as long as their user experience is not spoilt by aggressive advertisement.

All in all, launching a startup is an incredibly stressful, time-consuming and at the same time, exciting and promising opportunity. In the world where more and more people desire to be their own bosses, starting a business might be a much-needed reality check. Chris and Pat might get a chance to explore their aptitudes, push their limits, and be the change that the market might be waiting for.

To sum up, a startup will require a great deal of inner freedom and unbound creativity as well as steadfast determination and discipline. While Chris and Pat should rely on the previous experiences and research their competitors, it is important to capitalize on uniqueness and innovation. Such schemes as design thinking and business models that have proven to be working for many years will be of great help on the path to glory and prosperity.

References

Altman, S. (n.d.). Startup playbook. Web.

Find and validate your startup business idea. (n. d.). Web.

Gerber, M. E. (2009). The e-myth revisited: Why most small businesses dont work and what to do about it. New York City, NY: Harper Collins.

Graham, P. (2005a). How to start a startup. Web.

Graham, P. (2005b). Ideas for startups. Web.

TEDx Talks. (2012). A crash course in creativity: Tina Seelig at TEDxStanford [Video file]. Web.

Introduction

Given the scale of the business and the limited previous experience of the partners, the most suitable legal framework for a shop is a private limited company. Choosing this framework would offer possible financial underperformance that is likely to occur at the initial stage of development. It can also offer better taxation options than partnership and sole trader. Next, it will grant opportunities for employment on a local scale, which was stated as one of the goals of the endeavor. Most importantly, this framework offers better flexibility for seeking funding opportunities and investment options. Since the business does not have either a feasible resource base or an established brand name, its emphasis will likely be on innovation and differentiation from existing alternatives. Considering this, the framework should be as unrestrictive as possible in terms of strategic decisions (making franchise unsuitable) while at the same time offer a decent level of legal protection for inexperienced owners.

Asset-Based Financing

If a business has an asset (e.g. property), it can seek funding based on this fact. The asset can be monetized, and the business will receive the funds based on the asset, and the company who serves as an intermediary will then invite investors to participate in the created agreement by paying the loan. Such a source of funds is cheaper than the bank loan for both sides and does not require a delay before the lenders arrive (Wolters Kluwer, 2014). However, it requires the presence of assets (e.g. the building at the disposal of one of the partners).

Crowdfunding

Such an approach is a recent phenomenon based on the potential of web information technologies. It allows a business owner to seek investors at the cost of borrowing significantly lower than that offered by bank loans. However, its most important advantage is the possibility to reach out to any number of investors at once and add transparency to the funding process. While it may be hard to find the required amount of funds for a young business with no established reputation (very few investors would willingly take the risk), it is possible to secure several dozens of smaller sums (implying lower risk), which makes crowdfunding an appropriate funding option. Unfortunately, due to its relatively young age, the concept is not backed with sufficient legal support from the government, which may repel lenders (Wolters Kluwer, 2014).

Equity Crowdfunding

A variation of crowdfunding where the investors obtain their share of equity in the business (Wolters Kluwer, 2014). It offers most of the advantages of the option discussed above, such as accessibility, flexibility, and ease of reaching a lender. However, obtaining a share of equity means that the lender will be more attentive to growth opportunities displayed by the business, which decreases the possibility of successful funding for a small community-based shop. In addition, such an option is complicated by legal issues, such as the restriction of investing more than 10% in equity crowdfunding over a 12-month period (Wolters Kluwer, 2014).

Reward-Based Investment

A variation of crowdfunding takes advantage of intangible rewards such as gifts and souvenirs. It can take the form of giving some item or service (preferably unique or limited in supply) in return for the investment. This approach can diversify the investment and downscale them to the amounts which can be handled by the members of the local community. One weakness that must be acknowledged is the necessary prerequisite of an established reputation. The customer base must be loyal enough to be willing to invest in the business without any returns (Wolters Kluwer, 2014). Therefore, its success in the initial stage is unlikely.

Angel Investors

An opportunity to secure an investment in return for an equity stake. It is usually decided on a more personal level than equity crowdfunding, which raises the chances to succeed for a small business. Furthermore, angel investors usually pay attention to outstanding ideas rather than a robust business strategy and permit some leeway for young entrepreneurs confronted by difficulties (UK Business Angels Association, 2015). Therefore, this is another appropriate option for our business.

Reference List

Hoskin, J., 2014. Company formation: Should I go sole trader, partnership or limited company? [online]. London: SmallBusiness. Web.

Lobel, B., 2016. What is a franchise? Advice for small businesses [online]. London: SmallBusiness. Web.

UK Business Angels Association, 2015. Introduction to angel investment [online]. London: UKBAA. Web.

Wolters Kluwer, 2014. Alternative financing: Show me the money [online]. London: CCH. Web.

Introduction

Entrepreneurs create businesses that offer products, processes, and services for hire and/or sale in a free market. Entrepreneurship involves the willingness to engage in developing, organizing, and managing business establishments in full recognition of the existing short-term and long-term risks with the objective of making profits. It involves overlooking risks in pursuit of opportunities that are convertible into profitable ventures.

Drawing from Professor Michaels experience in business life, success in entrepreneurship requires one to possess a business-minded personality. He or she should embrace change, work to learn instead of working to earn, know how to deal with failure, and/or calculate risks and emotion. This report reflects on these perspectives while incorporating key viewpoints raised by other six entrepreneurs.

Personality

Personality constitutes an important perspective that determines the manner in which an entrepreneur addresses failures and risks. It also captures the way he or she responds to business success. Personality refers to the total of ways in which an individual reacts and interacts with others (Antoncic et al. 827). Professor Michael observes how some employees are well suited to meet business goals and objectives relative to others depending on their personality traits.

In other words, personality is not only important to entrepreneurs but also to employees who are recruited to work in a business establishment. Modern-day business owners are highly interested in the ability of employees to meet flexibility requirements for them to operate successfully in different work environments. Hence, the ability of an employee to perform well in only some specific tasks ceases from being the main selection and recruitment criteria. As Berglund and Korsgaard (734) observe, over the last decade, business owners have been interested in evaluating how employees personality and values match those of any business.

Personality is measured based on the traits that people exhibit. Research on personality in an organizational context has focused on labeling various traits that describe employees and customers behaviors. Some of the personality traits that can influence the behavior of people include ambition, fidelity, assertiveness, cordiality, submissiveness, and boldness (Antoncic et al. 831).

Drawing from Kevins speech, the HR culture and the recognition of people as the number one asset require the selection of personality perspectives such as aggressiveness and assertiveness in ensuring resilience to operational risks and challenges. In a business setting, extroversion is a measure of the degree of employees or customers comfortlessness with various relationships. Arguably, extroversion is an important aspect to consider when hiring in modern business environments that require a high degree of teamwork to meet the rapidly changing industry dynamics such as the innovation of products and services to keep businesses competitive both in the short and long term.

Embracing Change

Kevins speech emphasized the issue of success in business. According to Kevin, being victorious in business requires one to think like an entrepreneur. Entrepreneurs are always prepared to respond to changes in their business operational environments. Indeed, Professor Michael noted the importance of embracing change to enhance business success in the future uncertain operational environment. Businesses that endeavor to acquire long-term success keep on changing their ways of executing work. The most appropriate changes ensure that businesses become more profitable in a changing business environment (Halloran 31).

Professor Michael presented change as an inevitable aspect. In support of this position, geopolitical, demographic, and technological changes, including the prevailing intense pressure on the physical business environments, inform the need for business change. These forces are largely uncontrollable by an entrepreneur. Therefore, the only available option entails adopting the appropriate strategies that can guarantee success in the changing business environment.

Embracing change requires an understanding of various security issues and governance approaches that help to generate pressure, which is necessary to set change in motion (Halloran 56). Developing the awareness for technological, political, sociological, and economic needs of the external operational environment is crucial in the effort to develop strategic success initiatives. Change may involve proactive and reactive approaches.

Irrespective of the approach taken, Kelvins speech emphasizes the need for entrepreneurs to embrace change that values the human resource department, enhances quality, guarantees fun in the workplace, and/or upholds the role of families and respect for peoples culture. To this extent, Kelvin appreciated the role of eliminating conflicts between work and employees personal lives in enhancing business success. Such strategies create memorable experiences, which ensure that employees do not consider leaving their businesses.

Such experiences also flow into customers, hence helping in developing their loyalty. Kelvins speech recognized this importance by noting that a customer will never show interest in a company until the employee demonstrates devotion to it first. Consequently, embracing change that embraces the role of people in business success is inevitable for a company. However, only businesses that wish to have a long-standing value developed around people who are the most important resources available to it may benefit from change.

Work to Learn and Work to Earn

The concept of working to learn, as opposed to working to earn, raises questions concerning the appropriate sources of motivation for entrepreneurs and employees. Does it come from salaries and monetary gains or commitment to the work of an organization? Working to learn suggests that the desire to acquire more knowledge or develop better products and services, which can attain market success, drives peoples motivation to work. Professor Michael concurs with this position by observing that money comes automatically since market success translates into more sales, high profitability, and business growth.

At the initiation phase, a business incurs many costs related to positioning, advertising, and marketing (Halloran 87). During this phase, a brand is not popular among the targeted customers. Hence, making sufficient sales for breaking even is challenging. Therefore, from Shawns speech, during this phase, entrepreneurs should focus on debt service, leveraging, and persistence without concentrating on working to earn. Perhaps, even in the exponential and maturity phases, working to earn is a misplaced ideology regardless of the high returns. For an entrepreneur, no specific amount of money is ever enough. Persistence is imperative since any failure in the lactating phase does not imply long-term letdown in other phases of business development.

How to Deal with Business Failure

Even though some businesses close due to the lack of funding or risks, including economic crisis and/or their inability to break even, entrepreneurs must evaluate the viability of a potential opportunity to be guaranteed of success right from the product or service initiation phases through the growth stage and ultimately to the maturity phase. After maturity, entrepreneurs anticipate a decline phase due to the introduction of new competing products or obsolescence.

This situation suggests the need for developing a business continuity plan that involves the re-engineering and redevelopment of services, processes, and products to ensure that they respond to the emerging needs or potential failures. Colossal disappointment precedes success. Hence, one should not dictate the future of business based on its past failure (Berglund and Korsgaard 733). Professor Michael asserts that entrepreneurs must establish approaches to dealing with failure.

Considering personality as an important perspective on business success, one must differentiate his or her character from failure. Personalizing failure breaks down ones confidence and self-esteem. Failure drains entrepreneurs emotionally. From Jeffs speech, entrepreneurs not only need to be good employers but also individuals who focus on building energy and/or reenergizing themselves even in the face of failure. Consider a situation where an inferno destroys an investment that has taken decades to build. Perhaps the easiest thing to do is to jump into the inferno to avoid facing the reality of the resulting failure.

However, such a move only promotes the inability to cope with letdown and/or be guaranteed of continuity in the wake of failure. Therefore, the best approach to dealing with failure is by preparing for it in advance.

Consistent with Jeffs speech, success requires the development and execution of well-thought strategies. In times of failure, such strategies involve adapting and learning from the failure experiences. Entrepreneurs need to look at failure analytically. Instead of being frustrated, apportioning blame on others, regretting, and exhibiting anger, one needs to think about what should have been done to achieve better outcomes.

Most importantly, one must question what he/she learned from the failure experience. Hence, dwelling on failure does not postpone the outcome (Berglund and Korsgaard 733). An entrepreneur does not cease from living in a society that starts judging an individual after he or she has failed in business. According to Professor Michael, the fear of failure is linked to the apprehension of being judged by others. Nevertheless, an entrepreneur should overcome this situation by understanding that confidence, passion, and assertiveness make a difference in the future. At this point, continuity plans are pivotal in determining how to handle matters that had been priory done wrongly.

Sticking to the Core of Business

Businesses need to remain focused on their core purpose. According to Professor Michael, entrepreneurs need to focus on matters that guarantee business growth and profitability. For them to achieve this goal, marketing planning is inevitable. In fact, one should not venture into a business without a clear plan on how to position and market services or products offered to customers (Shaw 33). When pursuing a given marketing plan, the 4Ps model facilitates the development of a clear understanding of the market targeting strategy (Shaw 35). In determining the long-term effect of altering any element of the 4Ps model, customer lifetime value (CLTV) model helps in visualizing the changes.

Entrepreneurs need to access the market in which a business plans to sell its products and services during marketing planning through the 4Ps model. This framework captures the product, price, place, and promotion business aspects. Indeed, an entrepreneur cannot allocate monetary and time resources to pursue a business opportunity without knowing what product or service to sell, including whether it is demanded in the marketplace. Hence, products and services must respond to the existing needs and wants. Prices need to not only cover the cost of production but also leave a profit margin. Entrepreneurs must also focus on advertising and creating awareness of the existing products and services coupled with how their efforts satisfy the needs of the targeted consumers.

Calculating Risk and Emotion

Risks challenge the successful operations of a business. Often, upon their occurrence, they psychologically tear an entrepreneur who committed his or her time and monetary resources establishing and running a business. Indeed, risks compromise businesses financial position. Grundy and Moxon argue that it is impossible to avoid such risks since they are part of a business (56). In fact, entrepreneurs do not have control over their internal and external business environments.

The biggest challenge for a business operating in a risk-prone environment encompasses the development of mechanisms for predicting any possible threats and the ways of protecting brands from collapsing in the event of a crisis (Grundy and Moxon 57). This awareness underlines the need for calculating risks. For instance, an entrepreneur needs to conduct an environmental scan to determine the mechanisms for responding to risks that a business is likely to face in line with Professor Michaels sentiments.

Conclusion

Entrepreneurship is a risky venture. Although one starts a business with the hope of succeeding, failure is inevitable. Consequently, entrepreneurs must effectively manage their emotions to avoid allowing failure to define their thoughts on how to conduct their businesses. Hence, they need to be knowledgeable concerning how to calculate risks and/or control emotions. They should also possess a persistent, aggressive, and assertive personality. While working to earn is an important source of motivation for some people, entrepreneurs need to inculcate the spirit of working to learn in themselves and their employees.

Works Cited

Antoncic, Bostjan, et al. The Big Five Personality-Entrepreneurship Relationship: Evidence from Slovenia. Journal of Small Business Management, vol. 53, no. 3, 2015, pp. 819-841.

Berglund, Henrik, and Steffen Korsgaard. Opportunities, Time, and Mechanisms in Entrepreneurship: On Practical Irrelevance of Propensities. Academy of Management Review, vol. 42, no. 4, 2017, pp. 731-734.

Grundy, Michael, and Richard Moxon. The Effectiveness of Airline Crisis Management on Brand Protection: A Case Study of British Airways. Journal of Air Transport Management, vol. 28, no. 2, 2013, pp. 55-61.

Halloran, James. Your Small Business Adventure: Finding Your Niche and Growing a Successful Business. Huron Street Press, 2014.

Shaw, Eric. Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual Framework. Journal of Historical Research in Marketing, vol. 4, no. 1, 2012, pp. 3055.