Entrepreneurship and Start Up Culture Essay

Overview of Start-ups

An analysis of literature reveals a number of definitions ascribed to the term “start-up.” According to Islam et al (2018), a startup – is a human institution designed to deliver a new product or service under extreme conditions and various uncertainties.

Islam et al (2018) emphasize in this definition is that the startup involves process, authority and, according to Hatak and Snellman (2017), laziness. The human being running the start-up influences the business with his or herhuman factors more than any other business stage.

For the “human” part, we often neglect that the value of the business is not confidential data of the product, technology or company. Inman (2016) states that even if the company has a single product, the value still lies in all the people and organization that created it. To be more specific, we can take a look at the huge venture acquisitions. In many cases, important aspects of the original business are lost, including the brand, products or documents (Islam et al., 2018). All that remains is the “human” part.

 

The innovation of the products or services offered by the company is a very important but complex factor of the concept. The product, in its broadest sense, encompasses any value for a set of people who voluntarily choose to become customers (Inman, 2016). This applies to any type of business, from packaged goods in a grocery store, an e-commerce website, a non-profit service, or government-regulated programs. In any case, the organization was set up to be mindful of the impact it brings to customers as well as identifying and delivering new value for customers.

The last important component of this definition is the background of innovation. Beginnings are made to face extreme uncertainties. Focusing on business model, targeted customers, pricing and in most cases products, opening a new business that is exactly the clone of the original ones is a fascinating type of investment (Kolvereid, 2016). But this is not a beginning because its success depends only on good practice. Therefore, a small business can obtain a capital loan from the bank with uncertainties and risks to assess the potential of the loan holder.

In another study of startups and other related concepts, a startup is an organization designed temporarily to seek a repeatable and scalable business model (Kolvereid, 2016). Therefore, the ultimate goal of a business is not to make a profit, attract customers, or develop a brand. These factors are not important and should not be built at this stage, they are not that important. The aim of this phase is to experience and continually change the business model to develop a strong, practical and standardized model for growth and stability later on. Inman (2016) states that top MBA graduates and CEOs of large companies may still fail when faced with a start-up.

 

Another concept related to initiatives is their advantages. Some people may think the obvious advantage is to have an extraordinary founder with highly creative ideas and technology that no one can copy. While having such a founder is definitely a privilege for any business, it is still not an important element. The key element here should be the starting culture. Hatak and Snellman (2017) states that it is a culture that builds passion, enhances innovation potential, improves business efficiency and helps founders stay true to their core goals. There have been various successes in the tech field from Facebook to Google where it can be said the owners brought the company culture from its start-up phase.

The next related concept for a start is the starter culture as mentioned above. Islam et al (2018) state that it is very difficult to define exactly what the starting culture is, but there are some characteristics that decide the starting culture. This is his passion and determination to create a type of product that is beneficial to society. According to Hatak and Snellman (2017) a “useful product” is one that can create wealth for its creator.

Choosing the most important thing that makes up the entrepreneurial culture will be the passion to create truly valuable products. If the founders can spread this spirit to their colleagues, the venture will certainly be successful (Hatak and Snellman, 2017). Aggarwal and Wu (2018) state that Innovation is the best area for anyone who has the goal of starting up a business. The innovation market is unfairly the least competitive compared to other markets. Aggarwal and Wu state that almost everyone in this world has a dream of starting and running a business but very few have the mental strength delve into the world of uncertainties.

 

Entrepreneurship in Germany

In Germany and other industrialised nations, start-up policies often distinguish between necessity and opportunity entrepreneurs (Bergman and Sternberg (2007); Meager (1996); Caliendo et al. (2007)). In Germany, certain subsidies are available to all sorts of start-ups, while others are exclusively available to certain categories. For example, the state-owned SME bank (KfW Mittelstandsbank) provides subsidised financing for all types of start-ups, regardless of whether they are born of necessity or opportunity, whereas the federal employment agency (Bundesagentur für Arbeit) only provides subsidies to entrepreneurs who start their businesses after being forced out of work. As a result, such incentives are more likely to benefit necessity businesses. Our empirical results have some intriguing implications for these kind of customised programmes. First, we uncover evidence that necessity and opportunity entrepreneurs vary in terms of socioeconomic profiles, incomes levels, and success drivers. This conclusion gives credence to policies that are tailored to the specific requirements of each group. Second, our discovery that necessity entrepreneurs lack the human capital required to thrive as entrepreneurs, combined with the discovery that specialised human capital is a factor of success, provides intriguing policy direction. Instead of just distributing funds to necessary entrepreneurs, the government may condition its financial assistance on a particular amount of specified human capital, such as extremely specific labour market expertise or a professional training inside the professional sector in which the enterprise is launched.

 

Four Contingencies of Entrepreneurship

According to Athony et al (2022) the entrepreneurial method presented here is built on four interdependent circumstances. The businessperson is accountable for bringing these things together to generate value via innovation. The entrepreneur, opportunity, organization, and resources are the four contingency variables in the entrepreneurial process.

According to Dzomonda (n.d), “success is contingent upon the venture’s capacity to meet economic, social, and developmental requirements.” In other words, entrepreneurial success is the result of a collection of human attributes such as abilities, knowledge, perception, and personality factors that enable the analysis and evaluation of business success.

Entrepreneurs are businessmen who are accountable for the entrepreneurial process; in other words, they are accountable for managing and leading the organization’s goals. Entrepreneurs are not limited to people who generate new ideas, goods, or processes. Additionally, they are people that execute, lead teams, and sell their ideas. It’s tough to discover someone who has all of these attributes. As a result, identifying each profile is crucial, and cooperation might be vital to an entrepreneur’s success inside a company.

For example, Steve Jobs, co-founder of Apple, previous owner of Pixar, and developer of the hottest gadgets of the past decade, is not merely a businessman, but unquestionably one of the most innovative and gutsy entrepreneurs to emerge in recent decades.

 

Opportunity

The opportunity is the void in the market that rivals or suppliers should fill. The opportunity identifies a gap in the industry or environment market that entrepreneurs should fill. Entrepreneurs’ first purpose is to scan and monitor present or prospective opportunities in the market. The most favorable circumstance for achieving the opportunity is the businessman’s innovative approach to the market.

 

Organisation

To provide innovative services to a competitive environment, the tasks and activities of workers must be coordinated; this is the proposal that the organization should give. Companies may be restructured based on their activities and plans, including their size, structure, research and development area, primary business, and culture.

According to Nyikuri et al (2019), “entrepreneurial businesses are defined by the founder’s leadership, style, behavior, and spirit.” While these organizations may have an unstructured hierarchy, norms, or processes, they may also be a strength in terms of learning, creativity, and growth by actively bringing new ideas and methods to organizational transformation.

Additionally, entrepreneurial businesses are established as a web of interactions between workers, suppliers, and other stakeholders, all of which are driven by the entrepreneur. These relational ties contribute to the formation of a formal and mixed organization. Certain types of relationships are defined according to their duration: contractual, open market, formal, informal, and long term. The network research defines the business as a nexus of connections, and the degree of complexity may be rather high. This relationship affords organizations an excellent chance to assess their market positioning.

 

Resources

The entrepreneurial process concludes with the phrase “resources.” This contingency seeks to generate funds and resources for the firm, such as investors who provide their capital, information, skills, know-how, experience, and expertise. These aspects that contribute to growth might be intangible assets such as consultation, brand, loyalty, and consumer goodwill. The entrepreneur’s primary purpose is to attract cash and investment to the business and to direct that investment into expanding, building, and developing the value proposition delivered to the client.

According to Burns (2007, p.117), “entrepreneurs often find opportunities, establish, and lead their businesses.” Additionally, entrepreneurs recruit and manage resources. Entrepreneurs must delegate responsibility to workers, and managers may assume management and resource mobilization functions. For instance, the manufacturing department may assume responsibility for attracting resources and creativity necessary to build new goods, while the sales department assumes duty for bringing opportunities to market. Thus, the entrepreneur assumes the roles of business facilitator, adviser, and leader. According to Anthony et al (2022), entrepreneurs have access to three primary resources: financial resources, people resources, and operational resources.

 

Types of Funding for Entrepreneurs

 

Individual Savings

The majority of entrepreneurs finance their ventures using their own personal money.This is the single most popular source of finance for businesses, according to Fahrurrozi et al (2020). Before launching a firm, the majority of entrepreneurs save at least some money in their personal bank account. Personal funds, on the other hand, are not usually sufficient to meet an entrepreneur’s expenditures entirely. As a result, it is often utilized in combination with other sources of finance.

 

Patient Capital

Patient capital (affectionately referred to as “love money”) refers to funds advanced by a spouse, parents, relatives, or friends. The loan will be repaid over time as your business’s revenues grow. Entrepreneurs should keep in mind that relatives and friends seldom have significant cash. Additionally, never take a professional connection with relatives or friends lightly.

 

Angel Investors

Angel investment has grown in popularity as a means of financing for startups. An angel investor lends a substantial quantity of money to an entrepreneur in order for him or her to establish their own firm (Yin and Xu, 2021). The angel investor may offer financing in return for ownership in the entrepreneur’s firm or may compel the entrepreneur to repay the investment with interest.

 

Venture Capital

Venture money is another prominent source of funding for businesses. Venture money is similar to angel investment in many respects. Both include private investor or investment company financing. The distinction is that angel investors often invest more than venture capitalists, and angel investors typically invest in early-stage enterprises.

 

Incubators

Business incubators (or “accelerators”) often concentrate on the high-tech industry, offering assistance to start-up companies at different phases of growth. There are, however, local economic development incubators focusing on job creation, regeneration, and hosting and sharing services. A start-up incubator is often a business, institution, or other entity that contributes resources – labs, office space, or consulting services – in return for ownership in emerging businesses at their most vulnerable.

 

Loans from Banks

Although they may be difficult to get, bank loans continue to be a tried-and-true source of finance for businesses. Entrepreneurs with strong credit may qualify for a small company loan. Loans administered by the Small Business Administration (SBA) in the United States, for example, do not have a minimum amount, but do have a maximum of $5 million.

Government Grants Numerous government bodies offer money in the form of grants and subsidies that a start-up firm may qualify for. Frequently, official websites include a thorough description of numerous federal and state government initiatives.

Bartering Exchanging products or services for cash might be an excellent strategy to operate on a little wallet. Consider negotiating free office space in exchange for committing to maintain the computer systems of all other office tenants. Another frequent occurrence is the exchange of shares for legal and accounting assistance (Fahrurrozi et al., 2020).

 

Partnership

A larger, more established corporation may have a strategic interest in assisting in the development of a product – and may be ready to advance funds to do so. Numerous organizations construct customized social networks for huge corporations in the hope of one day competing in the consumer market with that money and knowledge (Yin and Xu, 2021).

 

Lenders on a Peer-to-Peer Basis

Peer-to-peer (P2P) lenders provide a platform for individuals to seek finance from one another. The peer-to-peer platform functions as a matchmaker and does rudimentary due diligence. As with microloans, the majority of peer-to-peer loans are modest. Take note that, in most cases, consumers are not giving money to your company via a P2P loan. Rather than that, they lend money directly to the entrepreneur, who then invests the cash in the firm.

 

Significant Customer Commitment

Certain clients would pay development fees in order to purchase a product before the rest of the globe. Their benefit is that they have complete control over the manufacturing process and the assurance of devoted assistance. Even major organizations seek funding for new initiatives from their top clients – this is the core of sound company growth.

 

Crowdfunding Initiative

While crowdfunding is not as popular as the other techniques mentioned above, it is still a viable fundraising alternative for businesses. According to the US Small Business Administration, this is soliciting investment from a vast pool of collectors, generally over the internet. The term “crowdfunding” refers to investments made by a big “crowd” of individuals. By contrast, angel investments are made by a single individual or investment business. Crowdfunding is an excellent forum for new products with broad appeal.

 

Innovation

Every successful entrepreneur should be inventive in some manner and should be able to identify market demand for a certain commodity or service, since this distinguishes them from other entrepreneurs and makes their businesses even more lucrative. When an entrepreneur is inventive, he sees fresh possibilities emerging in unexpected locations. For instance, Bhavish Aggarwal and Ankit Bhati, the founders of OLA Cabs, saw the growing need for acceptable and economical public transportation in India and used it as inspiration to start OLA Cabs. OLA is now valued at US$6.5 billion, with over 1.5 million trips every day (Fahrurrozi et al., 2020). Therefore, constantly be original and innovative, and notice fresh chances that others do not.

 

Organization

Organization is a critical component of entrepreneurial success. Without structure, everything becomes chaotic and unmanageable, resulting in increased losses, diminished goodwill, dissatisfied consumers, and emotional stress on the team, which may result in employees leaving the firm. Thus, it is critical to have an open organizational structure inside the firm that clearly outlines who will do a certain work and how that task will be completed.

 

Making Choices

Entrepreneurs must carefully analyze each choice they make since they make several ones each day, are frequently exposed to risk, and should learn from their prior failures. Making decisions may be a natural ability for entrepreneurs who are high-risk takers in the business sector. Entrepreneurs should prioritize excellent choices over quick ones. A competent entrepreneur carefully weighs the advantages and disadvantages of visiting another firm. A trustworthy leader would constantly consult his personnel, since they are aware of what enters the corporate zone. Effective decision-making involves expertise, intuition, intellect, sensitivity to the corporate environment, effective listening skills, and therefore the capacity to respond when required.

 

Bearer of risk

Entrepreneurs must recognize that while risk cannot be avoided entirely from a firm, they must also be prepared for its repercussions (Jan et al., 2019). It might be because customers are dissatisfied with the products or services given, or that rivals can supply a similar product or service at a lower price, or that government rules change. These dangers can never be removed, and entrepreneurs must always be prepared for them and specialize in order to cater to them. For instance, if customers are dissatisfied with the product, the entrepreneur must seek ways to improve the product in order to please the consumers.

 

Vision

Every great entrepreneur had one notion in his youth that he was passionate about, but that ardour diminishes with time. Good entrepreneurs possess this energy and vision, since they cannot expand without them (Goga et al., 2019). Regrettably, new entrepreneurs have these grandiose notions that seldom materialize into a concept. One key to success is to remember that many entrepreneurs fail, but what matters is how hard they tried. If one concept does not work, try another; maybe it is the one for you. Do not be scared to make big choices; this is what will set you apart and make you powerful. Visionaries must take the road necessary to achieve their goals. Entrepreneurs must embrace the center’s contradiction in order to succeed. The vision of thinking will assist you in being focused and ensuring that your activities are directed appropriately.

Woolworths is especially noteworthy for its relationship to the broader socio-ecological system, which is crucial to its strategy and identity. Not only is the company a marketing strategy for competitive differentiation, but it is also a responsible corporate citizen in terms of risk assessment, product development, and the South African setting. While a variety of historical and contextual variables contribute to Woolworths’ potential for systemic engagement, possibly the most significant component is the company’s strategy to creating connections with stakeholders, particularly with suppliers and environmental specialists. Goga et al., 2019) suggest that conventional, team-centered, and firm-centered methods to organizational development are inadequate to accelerate sustainable innovation, which entails systemic linkages. They suggest that sustained innovation requires a collaborative evolutionary strategy across diverse organizational players. Woolworths has created a relational approach to strategy (Dyer & Singh, 1998) and a dispersed approach to innovation (Dooley and O’Sullivan, 2007) built on long-term, dialogue-based partnerships. critical drivers.

The company’s dedication to sustainability was identified as a critical source of potential competitive advantage, separating Woolworths from many of its primary rivals. However, Gbj’s concept and commitment to continuous development did not result in the disparities – before to that, there existed a method known as the “Good Food Journey” for food sector leaders (one of 11 businesses). units) are devoted to manufacturing high-quality products and connecting them to social and environmental performance across the supply chain.

 

References

Anthony, K.A., Eneh, S.I., Effiong, C. and Etuk, I.U., 2022. Entrepreneurship dexterity and small business success culture in Nigeria. Linguistics and Culture Review6, pp.857-878.

Nyikuri, J.M., Nduta, R.W. and Mutua, J., 2019. INFLUENCE OF ENTREPRENEURIAL SKILLS AND INNOVATION ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) REVIEW FROM THEORETICAL LITERATURE.

Chamakiotis, P. et al. (2020) ‘International Journal of Information Management The role of temporal coordination for the fuzzy front-end of innovation in virtual teams’, International Journal of Information Management. Elsevier, 50(April 2019), pp. 182–190. doi: 10.1016/j.ijinfomgt.2019.04.015.

Dalevska, N., Kravchenko, S. and Kwilinski, A., 2019. Formation of the entrepreneurship model of e-business in the context of the introduction of information and communication technologies.

Putra, P.O.H. and Santoso, H.B., 2020. Contextual factors and performance impact of e-business use in Indonesian small and medium enterprises (SMEs). Heliyon6(3), p.e03568.

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Saura, J.R., Palos-Sanchez, P.R. and Correia, M.B., 2019. Digital marketing strategies based on the e-business model: Literature review and future directions. Organizational transformation and managing innovation in the fourth industrial revolution, pp.86-103.

Fahrurrozi, M., Soekiman, J.F.X., Philipus Kurniawan Gheta, A., Sudaryana, Y. and Husain, T., 2020. Business to Business ecommerce and role of Knowledge Management. Business to Business ecommerce and role of Knowledge Management82.

Yin, W. and Xu, B., 2021. Effect of online shopping experience on customer loyalty in apparel business-to-consumer ecommerce. Textile Research Journal, p.00405175211016559.

Goga, S., Paelo, A. and Nyamwena, J., 2019. Online Retailing in South Africa: An Overview.

 

 

 

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