Definition of entrepreneurship

Discuss about the Entrepreneurship in International Emerging Markets.

The entrepreneurship is considered as a key for the purpose of improving the society, especially the developed countries (Drucker, 2014). The process of conceptualizing, planning, launching and functioning of a new business is known as entrepreneurship. It is a combined terminology that requires management skills as well as creative skills (Drucker, 2014). The entrepreneurs should experience a driving force which would motivate them to excel in their new business project. They should aim for the creation of value for the newly formed company. This report is based on the analysis of the profiles of entrepreneurs in 2016. It describes the driving force behind venturing into entrepreneurship, especially in the international markets. The personality traits of an entrepreneur are discussed along with reference to the emerging markets and BRICS.

A person who is responsible for the organization, management and success of an enterprise is known as an entrepreneur (Drucker, 2014). The phenomenon of planning, designing and implementing a business idea is known as entrepreneurship. The entrepreneur should have the capability of developing, organizing and managing a business venture with an intention of profit making (Barringer, 2012). He should also have decision making capabilities, including risk solving abilities. There can be several problems in entrepreneurship such as the paucity of funds, economic crisis, inappropriate business decisions and others. It is the inherent responsibility of an entrepreneur to manage such kinds of contingencies (Drucker, 2014). The entrepreneur should be able to identify the market opportunities and decide the means of exploiting them.

The concept if high impact entrepreneurs are quite common now a day. The high impact entrepreneurs are the persons who initiate and expand the business based on parameters such as innovation (Sarasvathy, Menon & Kuechle, 2013). They proliferate their business in a way which is based on creative concepts. They handle large opportunities and strive to grow rapidly. In this process, a large number of job opportunities are created that offer crucial economic impact. There are four important criteria that are considered in high impact entrepreneurship – innovation, job creation, societal impact and wealth creation (Sarasvathy, Menon & Kuechle, 2013).

The startup companies must possess some basic skills in order to be successful in their business skills. The skills may range from sales, marketing, product development, capital raising, leadership, law, product development and others (Putta, 2014). Some of the identified skills of a high impact entrepreneur are listed below-

• Product Development- The entrepreneur should possess new product development skills by gathering knowledge based on consumer feedback and market survey (Putta, 2014). The product offering should satisfy the needs of the consumers.
• Financial Management- The entrepreneur should be able to manage the expenses of the company (Putta, 2014). He should have knowledge of financial statements, creation of financial forecasts, management of cash flows and others.
• Sales and marketing- The start up firms should know how to market their products or services (Putta, 2014). It should have in-depth knowledge of the target markets.
• Innovative thinking- The entrepreneurs should use business models, innovation tools such as Lean Canvas, Business Model Canvas and Validation Board (D’Hauwers, Rits & Schuurman, 2015). This is required for testing and validating the proposed business idea.
• Legal management- The knowledge regarding the legal guidelines of the particular country is important for the purpose of smooth operations of the business.
• Capital generation- An entrepreneur should be aware of the investors from whom they can generate capital for their business (Putta, 2014).

Qualities of a successful entrepreneur

The fact that people are born with necessary entrepreneurial traits is a fallacy. There are both external as well as internal factors that influence entrepreneurs (DeMartino & Barbato, 2015). The factors decide whether an individual is inclined towards entrepreneurship-

• Individual personality- The personality traits of an individual decide if he is able to shoulder the responsibilities of an entrepreneur.
• Practical skills- The skills acquired from the educational institutions enhance the competency of an individual, thereby reducing the fear of failures (DeMartino & Barbato, 2015). This makes the individuals to accept challenges and venture into entrepreneurship.
• Support of local regulatory bodies- People assess the level of support from the local regulatory bodies before they decide to start up their own firms.
• Role models- The young role models inspire the potential entrepreneurs.
• Cultural attitudes- The attitudes of a particular culture are important for shaping up the attitudes of an entrepreneur (DeMartino & Barbato, 2015).
• Social exposure- The close friends, acquaintances, family members and others influence the decisions of an individual if he is eager to embrace entrepreneurship.

Fig: Factors leading to entrepreneurship

Source: Created by the author

The country is said to be an emerging market when it displays few characteristics of a developed economy, yet unable to meet the preset standards of a developed market. The markets of India and China are considered to be the biggest emerging markets. The BRICS countries are the largest emerging countries with nominal GDP (Babu, Hariharan & Srinivasan, 2016). They are- Brazil, Russia, India, China and South Africa. The second largest emerging countries are Mexica, South Korea, Turkey, Iran, Saudi Arabia and Indonesia. The creation of new firms without the intervention of formal institutions is concerned with a high degree of complexity and risk (Hakim, Hamid, & Meera, 2015). The formal institutions may involve regulatory bodies and formal legislations. The entrepreneurs should be able to develop appropriate institutional arrangements within the concerned field. They may consider strategies such as institutional brokering, spanning organizational voids, bridging organizational distance and others.

The entrepreneurship is a vital component of both the emerging countries as well as the developed countries. The different countries present different opportunities for the entrepreneurs. China presents a huge market while Brazil has large natural resources (Quinones, Nicholson, & Heeks, 2015). The new addition in the BRICS, South Africa, is the new face of global trade and a profitable place for investments. The emerging countries enable the entrepreneurs to open up new avenues of investment. The different cultures in different countries give ample opportunities to the entrepreneurs. They can offer unique products that suit the needs of the local customers. The most appropriate entry to an emerging economy is by the means of strategic alliance (Woodside, Bernal  & Coduras, 2016). There should be a mutually beneficial and enriching relationships between the strategic partners so that the new business firm can experience greater success.

There are significant advantages of entrepreneurship over traditional employment. The entrepreneurs are able to set the company’s mission as well as determine the key strategies of the company (Autio et al., 2014). There is flexible schedule and one can work on his personalized job timings. The control over the work timings also increases the productivity and willingness to work. The entrepreneurs enjoy the power of making decisions regarding business matters. They can reap the outputs of their own work. The advantages of entrepreneurship are listed below-

Factors leading to entrepreneurship

Fig: Advantages of entrepreneurship over employment

Source: Created by Author

The interviewed entrepreneur has demonstrated the following personality traits (Muñoz-Bullón, Sánchez-Bueno & Vos-Saz, 2015)-

• Self confidence- The entrepreneur is confident about his capabilities and can effectively control the diverse situations. He is confident enough to handle difficult problems in a smooth manner.
• Intellectual ability- He possesses the ability to adapt new skills quickly and become an expert in the concerned subject area.
• Autonomy- The interviewed entrepreneur prefers to choose the direction of his own work and lead his team towards the organization’s goals.
• Persistence- He can tackle the obstacles that come on his way towards success (Muñoz-Bullón, Sánchez-Bueno & Vos-Saz, 2015). He is willing to overcome the barriers on his journey.
• Innovative- He is creative and has out of box thinking ideas. He can give innovative solutions to the problems.
• High tolerance levels- The entrepreneur can quickly adapt to the working environment. He is not afraid to work in a high risk environment (Muñoz-Bullón, Sánchez-Bueno & Vos-Saz, 2015). He can adjust himself in any kinds of situations.
• Good communication skills- He can articulate the strategy of the company in a lucid manner. His speech is convincing and can attract the investors, subordinates and the customers.

Conclusion

The entrepreneurship is a wide subject which has fascinated the whole world. It is the new trend in the emerging markets. An increasing number of people are opting to entrepreneurship. This is because of the advantages associated with it. This report broadens the knowledge regarding entrepreneurship. It discusses the qualities of a successful entrepreneur which are required to excel in the business venture. The different factors that lead to a person to start his own business firm are discussed. The international emerging markets and BRICS are discussed in brief. The significant advantages of entrepreneurship over employment are discussed. The interviewed entrepreneur displayed certain personality attributes that are discussed in detail.

References

Autio, E., Kenney, M., Mustar, P., Siegel, D., & Wright, M. (2014). Entrepreneurial innovation: The importance of context. Research Policy,43(7), 1097-1108.

Babu, M., Hariharan, C., & Srinivasan, S. (2016). Efficiency of Emerging and Emerged Capital Markets: An Empirical Study on BRICS and G7 Nations. Research Bulletin, 42(1), 61-77.

Barringer, B. (2012). Entrepreneurship: Successfully Launching New Ventures, (2012).

DeMartino, R., & Barbato, R. (2015). An analysis of the motivational factors of intending entrepreneurs. Journal of Small Business Strategy,13(2), 26-36.

D’Hauwers, R., Rits, O., & Schuurman, D. (2015). A hypothesis driven tool to structurally embed user and business model research within Living Lab innovation tracks. In Open Living Lab Days 2015.

Drucker, P. (2014). Innovation and entrepreneurship. Routledge.

Hakim, S. A., Hamid, Z., & Meera, A. K. M. (2015). Combining local and global markets in asset pricing in emerging markets: Evidence from three BRICS nations. The Journal of Developing Areas, 49(3), 365-378.

Muñoz-Bullón, F., Sánchez-Bueno, M. J., & Vos-Saz, A. (2015). Nascent entrepreneurs’ personality attributes and the international dimension of new ventures. International Entrepreneurship and Management Journal,11(3), 473-492.

Putta, S. S. (2014). Improving Entrepreneur’s Management Skills through Entrepreneurship Training. Journal of Commerce and Management Thought, 5(3), 459.

Quinones, G., Nicholson, B., & Heeks, R. (2015). A Literature Review of E-Entrepreneurship in Emerging Economies: Positioning Research on Latin American Digital Startups. In Entrepreneurship in BRICS (pp. 179-208). Springer International Publishing.

Sarasvathy, S. D., Menon, A. R., & Kuechle, G. (2013). Failing firms and successful entrepreneurs: Serial entrepreneurship as a temporal portfolio.Small business economics, 40(2), 417-434.

Woodside, A. G., Bernal, P. M., & Coduras, A. (2016). The general theory of culture, entrepreneurship, innovation, and quality-of-life: Comparing nurturing versus thwarting enterprise start-ups in BRIC, Denmark, Germany, and the United States. Industrial Marketing Management, 53, 136-159.