What Can Be Included in Organizational Skills of an Entrepreneurship PDF Summary
Dear friends, here we are going to provide What Can Be Included in Organizational Skills of an Entrepreneurship PDF for all of you. Entrepreneurship can be currently regarded as part of a strategy to boost the economy. It can be undertaken as a challenging task, either internally within organizations, or externally, by the creation of new businesses.
That is sustainable in a market and in a complex economic environment. Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.
What Can Be Included in Organizational Skills of an Entrepreneurship PDF – Introduction
- Entrepreneurship and ethical behaviour are closely related. For instance, entrepreneurial qualities such as creativity, novelty, and sensitivity are considered to be similar to the qualities required for moral decision-making (Buchholz and Rosenthal 2005).
- In addition, entrepreneurs face myriad ethical dilemmas when running their ventures (Hannafey 2003), and they increasingly address ethical issues when starting ventures (Quinn 1997). Entrepreneurs who address ethical issues challenge our assumptions about self-interests and collective interests—or the pursuit of economic gains and the drive to cater to the needs of others.
- Although the mainstream entrepreneurship literature shows a strong bias towards rational self-interest and the pursuit of private economic gains (Dacin et al. 2010; Van de Ven et al. 2007), the occurrence of other-regarding behaviour has a long tradition in ethics research (Jones et al. 2007; Santos 2012).
- This paper focuses on so-called sustainable entrepreneurs, i.e. entrepreneurs who start a business to serve self-interests and collective interests by addressing unmet social and environmental needs.
- Sustainable entrepreneurs are increasingly acknowledged for addressing current social and environmental problems (Hockerts and Wüstenhagen 2010; York and Venkataraman 2010; Zahra et al. 2009). These socially and environmentally conscious individuals fulfil a vital role in society because they offer solutions to complex societal problems that are overlooked, ignored, or unsuccessfully addressed by governments, incumbent businesses, or civil society organizations (Elkington and Hartigan 2008; Kerlin 2009; Nicholls 2006; Nyssens 2006; Zahra et al. 2008).
- However, the understanding of sustainable entrepreneurs is lacking. For instance, the way in which sustainable entrepreneurs establish their businesses and experience difficulties during the start-up process is far from completely understood.
- In comparison with regular entrepreneurs, sustainable entrepreneurs are considered to face specific challenges when establishing their businesses. These challenges may arise because of the discrepancy between the creation of private value and the creation of social value (Dean and McMullen 2007; Groot and Pinkse 2015; Mair and Martí 2006; Pacheco et al. 2010; Santos 2012).
- The present paper focuses on these presumed challenges and analyses whether sustainable entrepreneurs perceive more barriers and risks than regular entrepreneurs when they set up a business.
- The present study thus focuses on the creation of new ventures. The creation of new ventures—in addition to their growth and survival—is considered by policymakers to be a key element in economic development (Audretsch and Thurik 2001, 2004).
- Regarding barriers, we analyse the degree to which sustainable entrepreneurs feel supported or hampered by the institutional environment when starting their businesses. The dimensions of the institutional environment comprise the perceived lack of financial resources, the perceived degree of complexity of administrative procedures, and the perceived lack of start-up information.
- Because sustainable entrepreneurs need to challenge existing rules, public policy, norms, and legislation (Dean and McMullen 2007; Hockerts and Wüstenhagen 2010; Meek et al. 2010; Pacheco et al. 2010), we expect them to have more negative perceptions about financial, administrative, and informational support than regular entrepreneurs.
- Concerning the risks, we examine the different types of risks that sustainable and regular entrepreneurs may fear. Entrepreneurs are risk-takers; however, researchers have argued that different types of entrepreneurs face different types of risks (Block et al. 2015; Shaw and Carter 2007).
- For example, Shaw and Carter (2007) suggest that social entrepreneurs fear personal risks of a non-financial type, such as the risk of losing local credibility or their network of personal relationships.
- However, evidence of the differences between sustainable and regular entrepreneurs regarding the types of risk that they fear is lacking. The present paper distinguishes between finance-related risk in terms of possible income loss and bankruptcy and non-finance-related risk in terms of personal failure.
- In addition, we compare sustainable and regular entrepreneurs in terms of their willingness to take risks. In sum, the present study addresses the call to explore the additional complexities of sustainable entrepreneurship (Cohen and Winn 2007).
- To do so, we focus on the perceived barriers and risks of individuals who have recently made the decision to start a business, i.e. those who are actively taking steps to start a business and those who have been owning-managing a business for fewer than three years.
- The novelty of the present research is expressed in terms of a few important contributions. First, we add to research focusing exclusively on sustainable entrepreneurial activity by drawing a comparison between sustainable entrepreneurs and regular entrepreneurs in terms of the perceived complexities of business start-ups.
- Differences in perceived barriers and risk corroborate the importance of developing different support programmes for entrepreneurs who are driven to cater to the needs of others compared with entrepreneurs who focus on the pursuit of self-interest.
- Second, we address heterogeneity in different types of barriers and risks. Our findings provide further evidence that different types of entrepreneurs perceive certain types of risk differently. In particular, the perception of the risk of personal failure seems to be important in the context of sustainable entrepreneurship.
- Third, we extend current knowledge on sustainable entrepreneurship by using large-scale and internationally comparable data. The use of such data decreases the void in existing research in the area of sustainable entrepreneurship where empirical studies are scarce.
- The data that is used for this research were obtained from two waves of the Flash Eurobarometer survey on entrepreneurship (2009 and 2012). This dataset contains information on the start-up motivations, perceived entrepreneurial barriers, and risk attitudes of approximately 3000 individuals across 32 European countries and the USA who are in the process of starting a business or who have just started a business.
- The results of this research support the hypothesis that sustainable entrepreneurs have more negative perceptions of financial, administrative, and informational support at business start-ups. Moreover, we do not find any noteworthy differences between regular and sustainable entrepreneurs in terms of their risk attitudes and the financial risks that they perceive when running their businesses.
- Finally, the evidence shows that sustainable entrepreneurs have a greater fear of personal failure than regular entrepreneurs.
- The paper is structured as follows. The next section focuses on the background literature and formulates the hypotheses. Next, the data and method are discussed, and the regression results are then presented and discussed. The paper ends with a conclusion and avenues for further research.
Background and Hypotheses
This section starts with a conceptualization of sustainable entrepreneurship and argues why sustainable entrepreneurs face additional challenges when starting a business compared with regular entrepreneurs. Subsequently, hypotheses are formulated in terms of perceived barriers and perceived risk.
Entrepreneurship without the adjective ‘sustainable’ is already a complex concept. It refers simultaneously to a type of behaviour concentrating on the perception and creation of new economic opportunities (the behavioural notion of entrepreneurship) and to the ownership and management of individuals with respect to a business on their own account and risk (occupational notion of entrepreneurship).
Entrepreneurial behaviour may concern new business creation, but it can also occur in an existing firm, which is referred to as intrapreneurship or corporate entrepreneurship. Individuals or entrepreneurs may concern the self-employed, the (managerial) business owner in an occupational sense, the independent entrepreneur, and the intrapreneur.
Capturing all these aspects, Shane and Venkataraman (2000) define entrepreneurship as “… the scholarly examination of how, by whom and with what effects opportunities to create future goods and services are discovered, evaluated and exploited” (p. 218). By investigating the perceived barriers and risks of business owners, this research can be positioned within the occupational notion of entrepreneurship.
In line with the definition of Shane and Venkataraman (2000), as provided above, the nascent field of sustainable entrepreneurship refers to “the discovery, creation, and exploitation of entrepreneurial opportunities that contribute to sustainability by generating social and environmental gains for others in society” (Groot and Pinkse 2015, p. 634).
Sustainable entrepreneurs are motivated to have a positive impact on complex and often intertwined social and ecological problems, such as climate change, nuclear radiation, unequal access to healthcare and education, poverty, and long-term unemployment.
More broadly, they are motivated to contribute to sustainable development, which refers to development that “meets the needs of current generations without compromising the ability of future generations to meet their own needs” ((WCED) 1987, p. 43).
Sustainable entrepreneurship is closely related to the fields of social, environmental, and institutional entrepreneurship (Hockerts and Wüstenhagen 2010; Schaltegger and Wagner 2011). To define the concept of sustainable entrepreneurship, we first explore the commonalities and distinctions between social, environmental, and sustainable entrepreneurship.
Then, we address the relationship between sustainable entrepreneurship and institutional entrepreneurship within the context of this paper. First, what the fields of social, environmental, Footnote1 and sustainable entrepreneurship share are the drive of entrepreneurs to create value for others by identifying and seizing upon opportunities arising from problems in society that have been neglected or unsuccessfully addressed by public, private, or civil society organizations (Schaltegger and Wagner 2011; York et al. 2016).
In this context, value creation can be understood as an increase in the aggregate utility for society’s members owing to entrepreneurial activity (Santos 2012). Regardless of the type of entrepreneurship, value creation at the societal level is a necessary condition for the appropriation of value at the firm level.
Santos (2012) nevertheless argues that entrepreneurs differ in the ultimate aim of value creation. In contrast to regular entrepreneurs, the aim of social, environmental, and sustainable entrepreneurs is not limited to and not primarily focussed on the pursuit of value creation for private gains; rather, it includes the pursuit to increase the quality of life to the benefit of others (Groot and Pinkse 2015; Santos 2012; Schaltegger and Wagner 2011).
Hence, the motivation of social, environmental, and sustainable entrepreneurs deviates from the one-sided pursuit of profit that tends to characterize the regular entrepreneur (Van de Ven et al. 2007; Dacin et al. 2010).
Challenges to Sustainable Entrepreneurs
- By exploiting opportunities arising from neglected social and environmental concerns—and by combining the pursuit of self-interests and collective interests—the objectives of sustainable entrepreneurs are broader in scope and more complex than those of regular entrepreneurs (Groot and Pinkse 2015; Dean and McMullen 2007).
- The additional complexities are related to the discrepancy between the creation and appropriation of private value and social value (Santos 2012). In response to this discrepancy, we present three arguments regarding why sustainable entrepreneurs experience additional challenges during the start-up process of their business than regular entrepreneurs.
Risks of Being an Entrepreneur
- Potential Business Failure. Being fully responsible means the success or failure of your business rests on you.
- Unexpected Obstacles. Problems can happen that you don’t expect.
- Financial Insecurity. Many new businesses don’t make much money in the beginning, so you may not always be able to pay yourself.
- Long Hours and Hard Work. It’s not unusual for entrepreneurs to work a lot of extra hours to make their businesses successful. This is especially true during the initial start-up process.
Characteristics of an Entrepreneur
- Describe who becomes an entrepreneur
- List the key characteristics of an entrepreneur
- Explore ways to build your business potential
- Explain the value of learning about entrepreneurship
Characteristics of Successful Entrepreneurs
Self-assessment, evaluating your strengths and weaknesses, is an important part of becoming an entrepreneur :
- An aptitude is a natural ability to do a particular type of work or activity well.
- An attitude is a way of viewing or thinking about something that affects how you feel about it. Entrepreneurs tend to be people with positive attitudes.
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