Entrepreneurial success is often associated with being capable of spotting opportunities and being a risk taker. An entrepreneurial opportunity can be seen as a situation in which a person can create a new means to an end framework for recombining resources that the entrepreneur believes will yield a profit. On the other hand, to find success in an opportunity comes from more than just understanding of your target market. Successful opportunities are also related to having the ability to have a wider foresight of potential industry transformations Stokes & Wilson (2006).
Stokes & Wilson p.16 (2006) explained that the typical entrepreneur possesses certain characteristics known as the ‘Big Five' personality dimensions. These include the following traits; ‘need for autonomy, need for achievement, and locus of control, self-efficacy and being a risk taker with determination'. In contrast it could be argued that successful entrepreneurs need not have all of these traits to be successful. Moreover too much of one characteristic may be detrimental to the long term progress of a small-medium sized business.
[...] Opportunists can now exploit the fact that customers cannot afford to buy these machines nor devote the time needed to clean their clothes and therefore are willing to pay for services provided. Entrepreneurs should view potential industry transformations of new technology and incorporate it into their business Stokes & Wilson (2006). Typical risks occur when appliances begin to breakdown. This could be costly in terms of replacement however it could be argued insurance policies eliminate such dangers. Niche marketing is a specified small market segment entrepreneurs focus on. [...]
[...] This has caused insufficient demand for certain online businesses. Through this SME's will have to become diverse by selling exceptional and unique merchandise (e.g. antiques) in order to achieve higher CVP and competitive advantage needed to survive in the online industry Kuratko & Hodgetts p.243 (2000). Competitive advantage and customer value proposition are only sustainable if competitors experience difficulty in emulating business ideas and strategies. The term is also known as barriers to entry. Although, could be argued that the strength of barriers to entry depend on the degree of rivalry that exist within the market. [...]
[...] modern entrepreneurs are adapting to serial entrepreneurs Figure - bad management _ brilliant idea maybe bad team 14% - business model was wrong 17% - external shocks competition, low barriers to entry, low capital, low profitability Berwin (2003) as cited in O'Regan, S (2011) public lecture slide University Roehampton Business School Porter explains that there are five forces that determine industry attractiveness and long-run industry profitability. These five "competitive forces" are a threat of entry of new competitors (new entrants), threat of substitutes, bargaining power of buyers, bargaining power of suppliers, degree of rivalry between existing competitors. [...]
[...] For opportunities to be successful, entrepreneur's ideas must be realistic and practicable. Sanger (2011) mentioned by not having the necessary motivation required to run a business successfully results in not fulfilling business potential. Moreover according to Kuratko & Hodgetts (2000) venture capitalists focus more on the person that is the entrepreneur than the business idea itself because they believe the typical traits of an entrepreneur are the most important to survive in any industry. The evidence strongly suggests that entrepreneurs are risk-taking individual's and are mainly motivated by money. [...]
[...] Boston: Houghton Mifflin Matlay (2005) impact of resource on SMEs: critical perspective', Journal of small business and enterprise development Vol 12 (issue O'Regan (2011) public lecture University Roehampton Business School Shepherda Ettensonb R and Crouchc A (2000) venture strategy and profitability: A venture capitalist's assessment' Journal of Business Venturing Vol 15, (Issues Pages 449-467 Stokes Wilson Mador M. (2010) Entrepreneurship: Cengage Learning EMEA Stokes D. and Wilson, N. (2006) Small Business Management and Entrepreneurship, Thomson Learning: London Appendices The modal outcome of SME's is failure This is due to many great opportunities being carried out by . [...]
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