Entrepreneurship Traits, Type and Challenges
Lecture 2-A
Traits of an Entrepreneur
Description of Entrepreneurship
Entrepreneurship is an “act of establishing a new venture” Christensen et al,
(2000, p.4)
Entrepreneurship can also be considered as the function through which growth
and development can be achieved without commencing a new business venture.
It offers a process by which people either inside the companies or on their own,
look for prospects without regard to the resources they presently control
(Stevenson et al, 1989; Stevenson & Jarillo, 1990).
However, “an entrepreneurial organisation is that which pursues opportunity,
regardless of resources currently controlled” Stevenson & Jarillo (1990, p.23).
Types of Entrepreneurship
Achievement Salesman
entrepreneur entrepreneur
Technology
Manager
entrepreneur
Types of Entrepreneurship
Achievement entrepreneur
• Primarily associated with the desire to achieve
• These types of individuals are usually having an enormous amount
of energy and capabilities to take charge
• They take initiatives and do not wait for things to happen
• They often possess the leadership qualities and have a great sense
of commitment and responsibility in their ventures
• These types of individuals are good in several in several business
related aspects and they try to accomplish their objectives, whilst
heading their missions.
Types of Entrepreneurship
Salesman entrepreneur:
These individuals possess skills to interact with people and have very good soft side
of the management aspects.
These people are typified for having the feelings of the consumers’ needs and wants.
They usually use the soft sales approach whilst pursuing the growth of their
ventures.
They have enormous talent for connecting with people and spend most of their time
in marketing their products/services and permit other people to manage their
businesses.
These individuals therefore devote their time to understand who and how are the
consumers in the market.
They develop a proper vision for marketing and sales practices to reach wider
consumer groups.
Types of Entrepreneurship
Technology entrepreneur:
Individuals belong to this category, are generally idea developers.
These individuals often possess great ideas
They have the capabilities to develop innovative processes and invent
novel products or services for niche markets.
As these individuals possess qualities to create several ideas they
have a good analytical intelligence and take calculated risks in their
ventures
Although these individuals possess good analytical intelligence to
make way through several situations, however, at times their missions
can become a bit idealistic
Types of Entrepreneurship
Manager:
These types of individuals possess the qualities of taking charge of the missions.
Individuals belonging to this type of entrepreneurship are very competitive by
nature but not as co-operative as one would expect in a team work.
They are usually found to take positions of high authority, such as external
investors or sometimes act as board of directors.
They prefer to work in larger organisations than small entrepreneurial businesses.
They seek comfort in making effective marketing strategies, but not necessary
selling products or services.
Their ways to sell are different, they employ logic and carefully thought
persuasions, as mechanisms to sell their ideas.
They have rich experiences, strong management skills and possess strength in
managing existing businesses
Identify an
opportunity Entrepreneurship Process
Establish a vision
The process
Persuade others of entrepreneurship
can be observed through the six-
Gather resources
stage process:
Create new venture, product
or market
Change/adapt with time
Entrepreneurship opportunities
Entrepreneurship offers several opportunities such as:
(a) expansion of entrepreneurial activities through the advent of the internet
and the explosion of e-commerce on a global scale.
(b) Integration in social and political fabrics in several emerging economies.
(c) increasing economic situations in middle income house-holds in several
economies.
(d) increase in cross-border engagements and market entry mechanisms such
as strategic alliances, subsidiaries, joint ventures etc.
(e) evolving trends in channel structures among the developed world.
(f) increased engagements in global markets concerning social responsibility
and ethics
Entrepreneurship avenues
Firstly, entrepreneurs can seek information to understand the balance of trade relationships between
the exports in potential markets and the merchandising imports.
Contemporary markets offers several avenues for entrepreneurial activities:
Secondly, entrepreneurs can conduct extensive research to understand the political aspects of the global
economy to seek other outlines for strategic and operational aspects concerning barriers to enter a
market.
Thirdly, entrepreneurs can understand the developments of any domestic market of a country and
comprehend how these nations protect their industry by establishing tariffs, quotas, boycotts, non-tariff,
monetary and market barriers
Knowledge gap between the
developed, emerging, frontier and
Entrepreneurship challenges
under developed markets for
Differencebusiness
in accounting systems in
conducting
several
Although entrepreneurship activities countrieshowever they come with certain challenges. Some of those
are beneficial,
challenges are mentioned Variable
herewith:rates of return
Non-convertibility of the currencies
Communication gaps
Language barriers
Political unrest and legal concerns
Entrepreneurship challenges
Cultural differences
In addition, to theDiscrepancies in the usechallenges,
previously mentioned of there are also some other challenges commonly found in
entrepreneurship technology
Complexity in the markets
Supply chain concerns
Lack of specific infrastructure in
some countries or regions
Financial markets and their
volatility
Thank you
