Entrepreneurship Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    922

Question 1

Entrepreneurship is important to any society as it play a vital role in the growth of the economy. It is through entrepreneurship that innovative products and services are created in the market. Entrepreneurship venture often involves five stages. Stage one is the conceptual of the entrepreneurial venture where an entrepreneur comes up with an entrepreneurial business. The idea is then commercialized by starting up a business venture. The business grows steadily and matures after reaching its peak. It is at this stage that an entrepreneur needs to put mechanisms in place to ensure business does not reach the last stage-decline. In the performance of its functions, entrepreneurial business is affected by obstacles and at times faces difficulty in management of rapid growth. This essay will describe important elements of overcoming obstacles and managing rapid growth in entrepreneurship. In addition, significant sources of information, assistance, and events for Australian entrepreneurs in the last fifty years are identified and described.

Managing rapid growth can be hard and if it is not managed properly, it can be an effective tool for business downfall. Growth of an entrepreneurial business is influenced by the owner strategic decisions, entrepreneur background, and the firm’s nature. In an entrepreneurial environment, one element crucial in management of rapid growth is use of different skills as compared to that used at start-up Key professional management having experience in firms with high growth is needed to ensure the venture does not crumble. These personnel will bring expertise necessary in handling the increased demand without compromising quality and service. Adapting leadership capabilities in tandem with the business growth is another element of managing rapid growth (Allen 2012, p. 396). . Entrepreneurs are required to learn to work and communicate with people having diverse interests during periods of rapid growth. These leadership capabilities enable an entrepreneur to become open to the investors, employees, and customers feedback necessary at the growth stage. Responding and understanding the business environment is another element important in managing rapid growth.

Entrepreneurs are required to recognize both the opportunities and challenges that are developing outside the business environment and potentiality of them harming the business during growth stage. Planning and hiring for growth in an entrepreneurial environment is an effective element in managing rapid growth. This is because strategies are already in place to deal with any issues that arises during the business rapid growth stage. Entrepreneurial venture is affected by various factors that may hinder its growth and maturity. Business is therefore required to overcome these obstacles. Planning ahead is an effective element in overcoming entrepreneurial business obstacles. Market conditions change continually and planning for these changes is the best way of overcoming them. Changes that occur in business should be seen and welcomed positively as this is an integral ingredient in overcoming obstacles (Allen 2012). Inadequate management skills can be overcome by hiring people with the necessary skills and consultants needed to steer business into the next level. Proper financial and cash flow management is imperative in overcoming challenges in an entrepreneurial setting. Effective supplier management and good stock control should be exercised with vigilance as this becomes a yardstick in overcoming hindrances to the business success. Right attitude is also effective element in overcoming obstacles in entrepreneurial environment. Entrepreneur should see obstacles as a stepping stone to success rather than a feature of business downfall.

Question 2

Entrepreneurs are often thought as agents of change in an economy and financing is important in propelling them to success. In order for entrepreneurs to succeed in any society including Australian society, they need assistance regarding finances and how business should be carried out. There are various sources of information, assistance and events that have been helping Australian entrepreneurs in the last five decades. The best sources of assistance in Australia regarding entrepreneurs’ start-up funds are informal investment, government funding programmes, and bootstrapping (Terjesen and Fredrick 2006, p.5). Informal investment is financial contributions to entrepreneurs from family, friends as well as colleagues of the entrepreneur. Bootstrapping is the creative ways in which some Australian entrepreneurs have been launching their businesses. It involves financing a small venture by not raising any equity to business from traditional sources but through highly creative business acquisition and resource use. Australian government agency AusIndustry has been responsible for delivery products and services, information that supports research, innovation and industry to the entrepreneurs. It has been a useful source of information and funding to entrepreneurs. It also provides small business services, duty and tax concessions, and innovation grants. Australian Trade Commission provides practical advice and information, strategic export planning for entrepreneurs’ products and it identifies overseas opportunities for entrepreneurs. It is responsible for organizing trade exhibition program in Australia.

Trade exhibition program is an event that provides an opportunity for entrepreneurs to showcase their products and services and build new connections and markets. Area consultative committees provide information to entrepreneurs concerning assistant programmes in remote, metropolitan, regional and rural communities and government policies (Terjesen and Fredrick 2006, p.12). Small business mentoring program has been effective for more than 25 years in Victoria. It mentors entrepreneurs on how to run their businesses and provide them with useful business strategies in starting up a new business and in increasing sales and business profits. Department of Industry has also been a valuable source of information for entrepreneurs in Australia.

References

Allen, K. R., 2012. Launching new ventures: an entrepreneurial approach. Mason, OH: South-Western Cengage Learning

Terjesen, S. and Frederick, H. H. 2006. Sources of funding for Australia’s entrepreneurs. [S.l.], Lulu.com.