Paper Example. Approaches to the Entrepreneurial Process

Published: 2023-03-02
Paper Example. Approaches to the Entrepreneurial Process
Type of paper:  Report
Categories:  Strategic management Business strategy Personal leadership Leadership development
Pages: 7
Wordcount: 1895 words
16 min read

There are two approaches to the entrepreneurial process. These include macro and micro views. Sonali Singla focuses on the micro view of entrepreneurship since she considered a start-up based on micro factors. The entrepreneurial trait school of thought is evident since she was motivated by the feelings of accomplishment and control (Raffiee & Jie Feng, 2014). She argues that working for another company did not feel as rewarding since an outstanding performance made no significant difference in her life. By being an entrepreneur, Sonali felt like she would be able to make her own decisions without having to go through another individual. The enabling factors which she considered featured the access to business skills and experience, as well as the availability of working capital (Dalic, Terzic & Novarlic, 2017). Sonali had the support of her father, who had sufficient experience as an entrepreneur and business founder. Before venturing into the idea of a startup, Sonali had ensured that she had enough capital to keep the company afloat until it was able to break even.

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In response to the entrepreneurial myths, Sonali indicated that she did not believe that entrepreneurs are doers and not thinkers. She thought that the ability to think is essential since it ensures that ineffective approaches and risks can be avoided. She also believes that it is a myth to argue that all entrepreneurs need is money. That is because any venture will need so much more than just money.

Concerning the three types of people in small business, Sonali feels like the predominant function in her case is the entrepreneur and manager. It is because the entrepreneur is responsible for guiding the company on a particular path. The manager is also a predominant function since the presence of an entrepreneur is required to make the venture productive and successful. There is a need to continually interact with the employees and various business systems to ensure the best productivity.

Entrepreneurial Mindset/ Personality Characteristics

Sonali has the necessary skills that a great leader should have. She showcased perseverance and determination, as noted by how she maintained her stance and strived to make the business profitable. Sonali is also responsible and always thinks through her decisions. Lastly, she is committed to the company and its success. Without commitment, most business startups fail. Fortunately, Sonali invests a lot of time and energy in her business to ensure it succeeds and grows as desired (Raffiee & Jie Feng, 2014).

The traits perceived in this person aligns with the characteristics he or she attributes to herself. She believes that no one is perfect and that there are times when she will be weak and make the wrong decisions. However, if negative impacts are experienced, she will always get back up and steer the company back on track. Her commitment to the company is also attributed to how she is focusing on something that she loves and has been looking forward to for long.

As a result of the knowledge and support from her father, Sonali has not had to deal with a great extent of failure. However, minor shortcomings, such as having a non-functioning marketing plan, were quite common. Ethical issues, on the other hand, are quite common because she often interacts with people. Sonali notes that there are times when she feels like withholding information from them. However, she has to be honest to avoid conflict. The same cannot be argued for stress. Sonali is often functioning under high levels of stress, which leads her to consider stress management approaches, such as accepting what she cannot change. These issues experienced by Sonali have always been handled positively. She often finds solutions that have been researched and well thought out. In extreme cases, she often considers the advice and guidance from her father.

Uncovering Opportunities: The Creative Pursuit of Ideas

Her trip to Asia triggered Sonali's business idea. She came across jewelry designs which she realized were not available at the shop she was working at in Canada. It presented itself as an excellent opportunity for a startup as it was bound to perform effectively with limited competition (Van de Vliert, Janssen & Van der Vegt, 2016). This entrepreneur's internal environment is quite impressive. She has the necessary resources that will ensure the success of her business. Her father's presence has significantly impacted the company's success since past experiences are being used to avoid a repeat of the same in the new venture. Second, she had the necessary capital to keep the business afloat despite the losses experienced in the first years (Dalic, Terzic & Novarlic, 2017). Third, her skills are also crucial because they ensured she kept moving forward without losing hope and shutting down the new venture due to nonperformance. She had an excellent vision for the company and put in a lot of work to see it happen. Having a background in Business Management and marketing contributed a great deal to her success. She was able to employ her experience in the current startup by considering concepts and strategies that were taught. She is highly innovative and has adopted an entrepreneurial mindset where she seeks to bring solutions to problems or needs of the people.

Sonali decided to start her business at a time when the economy was stable. At the time, Canada was becoming multicultural, meaning that more people would be interested in the various products offered. Concerning the Arenas of Creativity, Sonali acted on organizational creativity. The business itself is already existent in the market since it is a retail boutique. However, to stand out, she decided to focus on a different structure with clients, which would enable them to get new ways of doing things. Sonali hoped to be innovative by bringing in jewelry designs that were currently nonexistent in the market she would operate in (Raffiee & Jie Feng, 2014). Hence, she is more of an adaptor than a true innovator.

Critical factors/challenges/feasibility

The feasibility of any business means the possibility it will be turn out to be a success, whether it expand and be profitable. Entrepreneurs are always enthusiastic about getting started, which has made some land into mistakes as they fail to take time to assess the feasibility of the venture through detailed research. Poorly planned-out ventures have a higher risk and lower likelihood of success.

There are various factors taken into considerations while executing the feasibility of a venture. They include the size of the market; it is always easier to succeed in a market that has many potential clients than one with a comparatively small number (Van de Vliert, Janssen & Van der Vegt, 2016). In the case of Luxe Corporation, the initial idea could have succeeded if detailed research was executed on the market about the new types of jewelry. It can be deduced that the new types of jewelry have few potential customers. Another thing is, if the entrepreneur considered the first jewelry found in the store and incorporated the new strategy which she added later, the corporation would be far much ahead (Raffiee & Jie Feng, 2014). Sonali considered competition in the market, how she will market the product, how to manage her inventory, and many others.

Another factor is the superiority of the products, to attract the clients, one has to bring items that have clear and easily expressed advantage over the products of the competitors. It implies that Sonali's venture will need to be innovative to meet the changing needs of the clients in the future. Therefore, this will enhance the clients' quality of life and saves them time and frustration.

Currently, there are no legal safeguards, such as patents or processes. However, Sonali still recognizes that most startups fail due to a lack of proper financing that would have cushioned the company against many challenges in the market, up until the time it becomes profitable. She notices that managing a venture is quite a challenge. Without her capital and family support, she would not have managed to get the company to where it is today.

Pathways to Entrepreneurial Ventures

This part explores the different ways a prospective entrepreneur takes into account to get the business started. The standard methods include founding a new venture, obtaining an operating company, and acquiring a franchise. In this case, Sonali, an entrepreneur, opted for a new-old method. This method entails enhancing a product or innovatively providing a service (Van de Vliert, Janssen & Van der Vegt, 2016). Sonali took an existing idea of a jewelry store with an original idea of adding new kinds of jewelry that were not in the store. Unfortunately, the customers failed to respond to the new integrated styles of jewelry.

Therefore, she thought of dealing with the existing jewelry and offering a new kind of service or buying method. That is a semi-custom strategy that entails modifying the existing jewelry by adding different colors and changing stones shapes as well as taking distinct shapes of center stones within a specified budget. This method hence yielded positive results to the business.

The most operative way of a starting a venture is to generate a typical product or a service that is not presently offered to the clients since every entrepreneur wants to create profit (Raffiee & Jie Feng, 2014). The good thing about the new-old approach is that the entrepreneur saves time and effort since the business is currently in operation.

About the form of business, Luxe is operating under the corporation. Hence, the business is operating as a separate entity, meaning any business liabilities cannot be turned into an individual liability when there is an occurrence of loss. Also, there is the advantage of increased capability and proficiency since it involves various individuals, such as the main stockholders and specialized managers working in the Company. In terms of finances, the corporation can obtain capital through the issue of shares, bonds, and interim loans made against the assets of the company (Dalic, Terzic & Novarlic, 2017).

Future Goals and Insights

Every business operates on a set goal. A typical entrepreneur has a wide range of goals, such as risk management, profits, and client relationship management. To set realistic goals, one should consider the available tools and resources. Taking the case of Luxe Company, the major goals, as indicated by Sonali, includes adding of more elegant jewelry fashion lines and engagement brands. She further indicated that she hopes to turn Luxe as a leading destination for jewelry products in the whole of the Halton area. Luxe Corporation will achieve the goals as mentioned earlier due to the enthusiasm displayed by Sonali.

There is a need to put more extra effort into marketing the company's products, which she failed to mention during the interview. Various leading jewelry brands and organizations are concentrating on investing a substantial amount of money in the advertising and marketing campaigns to raise publicity (Van de Vliert, Janssen & Van der Vegt, 2016). That helps to increase awareness among the clients about the organized retail jewelry industry and improves the insight of jewelry as a lavish gift product. The use of emerging digital media as a platform to advertise will help to build and maintain client relationships.

Another strategy includes market segmentation. That can be done based on income and age. The corporation can introduce new product lines at low prices to lure young people or less affluent clients, granting them an entry point into the brand.

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