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Nature of Entrepreneurship and Business

Team work, innovation, risk-taking and ethical decision making processes are some of the essential behaviours needed in gaining an understanding of the nature of entrepreneurship and its role in business. Even large organisations operating in mature and stable markets insist on entrepreneurial behaviours as the key to elements in their short and long-term orientations. Drawing on Ács and Audretsch (2006) book, Handbook of entrepreneurship research as one of the key books in entrepreneurship and entrepreneurial behaviours, this essay critically provides in-depth analysis of business behaviors, strategic management, and nature of entrepreneurship with a view of understanding different entrepreneurial behaviours.

Entrepreneurial behaviours— creativity, innovation, risk-taking and ethical decision making are widely seen as a vital for almost all sizes and types of organisations (Ács and Audretsch 2006). Beginning with innovation, Ács and Audretsch (2006) see this behavior as an entrepreneurial attribute that generates change management. Change management as brought by entrepreneurial behavior is viewed as a planned process where an organization renews its direction, structures and abilities to serve the dynamics of the organization. Furthermore, the role of entrepreneurship business is that it assesses contemporary business, theoretical frameworks and challenges affecting decisions on business change management so that managers can see change management as their responsibility. Additionally, Ács and Audretsch (2006) relate change management with the aspect of teamwork and communication. Entrepreneurship gives business the opportunity to acknowledge change as reactive, unpredictable and discontinuous process. While the authors succinctly establish these variables, they identify a common point or consensus concerning a framework for organizational change management.

Business activities have been driven by stiff competition from rival companies. The essentiality of entrepreneurial behaviors in such cases is to define competition and re-structure its platform so as to accommodate the ever dynamic demands of its customers. Ács and Audretsch (2006) also argue that the level of competition dictates business towards sustainable competitive advantage. For instance, technical know-how on creativity and innovation improves operational structures of the business.

On the same breath, actors and competitors in the market have been seen to be struggling with the increasing cost of operation, production, development and mature market. It has to be recognized that analysis of nature of entrepreneurship and its role in business must first recognize the position of a given business with regard to community. Ideally, businesses have corporate social responsibility to undertake and such must be conceptualised through its laid platform, structure, and financial reports. In such cases, entrepreneurship imparts in managers ethical decision making or responsibility attributes that further help them to navigate sustainability.

Another essential principle of entrepreneurship is to give business different perspective of quality enhancement. Initially, businesses have been concerned with quality improvement without assessing how to integrate different entrepreneurial behaviours in the implementation of the targeted quality. With the entrepreneurial behaviours such as team working, business can reflect on decreasing costs while at the same time maximizing profits. We need to consolidate all departments so what everyone contributes count profit generation and maximization. Entrepreneurship helps business identify opportunities through team work and such opportunities in turn, align our business with performance and quality management. To this end, Ács and Audretsch (2006) argue that the adoption of entrepreneurial behaviour will introduce quality management practices by communicating relevant entrepreneurial principles and or philosophies effectively.

The relationship between business, entrepreneurship and ethical responsibility is that business ethics are standards and principles that guide managers, individuals and work group behaviour in line with business activities. Additionally, it is important to note that stakeholders of different business make principles and ethical practices and such have been codified as regulations and laws. Contextualising the argument within the framework of entrepreneurship and business, ethical decision making helps business to design strategies that eliminate misconduct. According to Ács and Audretsch (2006) there are three significant components that sum up business ethical responsibility and decision making; ethical responsibility being individual factors, ethical responsibility being business’s relationship with others and ethical responsibility being opportunities available for the business. Basically, business should base the three components on behaviourist theory where what matters is the business can do rather than specific quality or attribute. That is, different patterns of individual behaviours should be linked to ethical decisions.

What is suggested as a better approach to change is a situation where entrepreneurial organizations through their managers repeatedly sense, monitor and respond to the internal and external environment in small step but as an ongoing procedure. A continuous change as created by entrepreneurial behaviour should define scope of business activities so that business can embrace profitability through limited, successive and negotiated shifts—aspects required for fast-moving pace of change.

In order to better understand the strategic position of any business and analyse their alignment with their external environment, it is important to conduct an internal evaluation of such business and identify their core competencies and capabilities. An insight into the internal organizational capabilities can be done with the application of the extended entrepreneurial behavior such as innovation. Businesses are currently affected by the global economic downturn and the internal environments outline the general trend in the increase of raw material and network supply costs. This process is further triggered by increased competition due to reduction of entry barriers, driven by the industry deregulation among others. Innovation as one aspect of entrepreneurial behaviour is needed in such cases to help business benefit from the economies of scales and the strong relationships with other related business, which if implemented, place such businesses in a strong bargaining position with its upstream partners and allows leveraging the costs.

Conclusively, gaining an understanding of the nature of entrepreneurship and its role in business remains a multifaceted area of study. Scholars are still divided on the actual entrepreneurial behaviors that drive and define scope of business. To such extent, we reiterate that the behaviors aforementioned are not wholly responsible for businesses to define and work within their frameworks of operations. Instead, we have advanced existing research on entrepreneurial behaviors in established business by focusing on Ács and Audretsch (2006) book but still, we need to understand that these behaviours do not reconcile traditional or emerging entrepreneurial behaviours.

References

Ács, Z.J. and Audretsch, D.B. eds., 2006. Handbook of entrepreneurship research: An interdisciplinary survey and introduction (Vol. 1). Springer Science & Business Media.