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Entrepreneurship activities
Entrepreneurship activities
Introduction
Entrepreneurship can be defined as the ability to discover a trade opening and working towards maximizing it. It entails taking a considerable amount of risk in order to counter the obstacles that prevent effective and efficient implementation of the same. Entrepreneurs are aggressive people and can be referred to as risk takers since they assume risks in implementing the opportunity. Protagonists of entrepreneurship argue that it is a state of mind rather than just physical aspect. An entrepreneur is always alert on the changing needs of people and always scans the business environment to determine what is required in the market. An entrepreneur always makes huge profits before others imitate his business and face competition. This means that an entrepreneur is not just a business person, but also an inventor (Casson & Buckley, 2010).
Learning Skills Unit (LSU) is a Unit or a department that has been set by many learning institutions especially higher education institutions to help students excel in their education. They are set up to guide students on the best practices they need to engage in, so that they can achieve best results. The unit guides students on various issues such as giving guidelines on time management, how to write essays, study methods, research, presentation skills, study skills and other activities that can help a student as far as learning is concerned. Learning Skills Unit not only provides guidelines to students, but also to staff. The staffs are trained through the unit especially the new staff in learning institutions. Therefore, learning Skills unit is essential for both the staff and the students (Carsrud & Brännback, 2007).
Australian Universities are among the pioneers of introducing such units. The unit has had significant importance in these institutions. The unit gives lecturers an easy time since they do not have to consume much time in training students on how to undertake some activities. The units help students to conduct research and provide resources that are required in various activities. There are many higher education learning institutions that have not introduced these institutions. Libyan institutions are among them (García, Ribeiro & Roig, 2007). This paper will describe the strategies to introduce LSU in Libyan higher learning institutions and how the business will be a cash cow.
Introducing LSU in Libya
Libya is a country in Northern Africa. Learning institutions in the country do not have this program. This means that there is an entrepreneurial opportunity in the country’s universities to introduce this essential unit that will enrich services delivery in the institutions. Learning Skills Unit will help students to understand how they would undertake different learning activities in schools. This will create an enabling environment for learning in the institutions. It will also help lecturers and professors in these institutions to have more time to concentrate on offering quality education as more time will be created since they will not consume time trying to teach students on how to perform various activities. This is a viable business since the users of threes services will have to be charged a small fee (Bygrave & Zacharakis, 2010).
Skills Required
There are various characteristics entrepreneurs posses. It has been found that entrepreneurs have some distinguishing features that separate them from other business people and other ordinary individuals. One of these characteristics is risk taking. Entrepreneurs are risk takers. Individuals with entrepreneurial mind are courageous and have a positive point of view towards the business that they want to start or have already started. They observe a particular activity on merit side and try to establish how their invention will succeed. They analyze various obstacles that are found in the business. The analysis is not meant to make decision on whether to put the business idea in motion or not, but it is meant for finding ways to counter these obstacles (Bygrave & Zacharakis, 2010).
Entrepreneurs also possess internal locus of control. Real entrepreneurs do not follow other people’s opinions. They are self-driven and will not follow or listen to people who might not observe the idea on the same perspective. Most of people benchmark an idea with past similar businesses. If the business idea failed, they will have as negative attitude towards such ideas. Entrepreneurs will not argue along lines of failure but will believe in their strategies and will act solely as per the demands of the business opportunity. Opportunity to start Learning Skills Unit in Libya is a viable one as it is meant to improve service delivery in the country’s institutions as well as making money from the venture (Hisrich, Peters & Shephered, 2009).
Entrepreneurs also have high need for achievement. The goal for any entrepreneur is to attain high achievement and realize profits from his business idea. This is not reached easily unless a person has a need for realizing it. Entrepreneurs do not fear failure; instead, they view failure as a source of learning. They view failure in a positive point of view. Failure is a word that is not found in entrepreneurs mind dictionary. They view it as source of additional skills since they would eventually redefine their course and detect where they went wrong (Hisrich, Peters & Shephered, 2009). Therefore, entrepreneurs have a strong desire for achievement and will direct all their focus towards reaching their target goals.
Entrepreneurs are always time conscious. They come up with an idea and lay strategies of implementing them. Implementation of entrepreneurial strategies requires time. Entrepreneurs always work along with time. Entrepreneurs measure achievement in terms of merit and time. Time is also an important component in business. Many business owners measure achievement and viability of a business venture using payback method. This helps to show the time required to recover the original investment. An entrepreneur ventures into a business and plans his business in a manner that the business will make returns within the shortest time (Forbat, 2007).
Tolerance is also another important quality. Entrepreneurs are tolerant. They understand the various stages of a business life-cycle. Therefore, they become tolerant to the various oscillations of the business. An entrepreneur does not lose hope when undertaking his business. Optimism is always the word that leads daily operations. Entrepreneurs have perseverance and do not regret for having started a business. When a business starts having low returns, they normally devise strategies of reviving it. They do not sit and watch the business collapse. Entrepreneurs know the signs of negative business. They react immediately they notice a negative sign in their business (Forbat, 2007).
Creativity is also one of the most important qualities of an entrepreneur. Most of business start-ups of entrepreneurs normally thrive. They do not fear competition and do not view competition as a threat. This is because they have a standby solution to every problem. They approach a problem from all dimensions to come up with informed solutions. When his business is subjected to high competition, he will respond by being creative by scanning the market and coming up with a way that he would counter competition. Both creativity and optimism are important tools for an entrepreneur. These are tools that make the entrepreneur successful (Kuratko & Hodgetts, 2009).
The other important quality is that an entrepreneur has high energy levels. He starts his business and runs it with high energy. This makes him successful in every business that he starts. High energy makes him successful because he will dedicate all his efforts towards his business. This makes it easy to handle changes that occur in the environment of his business. He is able to respond positively to changes in the market and maintains the returns of his business. Entrepreneurs do not believe in failure and this is the reason why they approach all the activities of their business with energy (Kuratko & Hodgetts, 2009).
Strategies for introducing the businesses
In order to introduce the product successfully there are some strategies that are required to be put in place. Introducing a new product or a business is always faced with challenges as individuals do not clearly devise strategies to use in converting ideas into reality. Introducing Learning Skills Unit in higher learning institutions in Libya will require various strategies to be formulated and laid down (Bruin & Dupuis, 2003). This will ensure that all the requirements are put in pace and the information required is gathered. LSU is an important aspect in higher education but needs to be carefully planned to prevent rejection from Libyan institutions.
The first of the strategies is to understand fully the Libyan higher learning demography. Introducing a new service or a product in a new market require a thorough study of the target market. This is done through conducting a short market research which seeks to determine the viability and suitability of the product in that particular market niche. The market study determines whether the target market is suitable for the product or the service. Prior market study is important since it reduces chances of failure of the product (Bruin & Dupuis, 2003). It is fundamentally known that certain products are not fit for all products; therefore market research helps to determine the suitability of market.
Libyan target market is universities and colleges. The service unit is most suitable for higher learning institutions. It could also be useful in high schools but the most appropriate market is higher learning institutions. This is because higher learning students are more self regulated and are expected to know how the system in their institutions works. Higher Learning institutions contain complex operations (Baron & Shane, 2008). Introducing Learning Skills Unit in these institutions will improve service delivery. Therefore, universities and tertiary colleges in Libya will be the best target market as the program also does not exist in Libyan universities.
The other strategy required while introducing new product or service is the determination of distribution channels. In this context, the distribution channels will mean the methods or techniques that will be employed in order to make the project successful. The first of the considerations of the best distribution channels is determination of the primary consumer (Baron & Shane, 2008). The learning Skills unit will primarily be used by students. Students who are always confused on the operations of the business will have the access to all the information they require from the unit. The unit will have both face to face services as well as printed documents. This will ensure that service provided in the unit is of high quality and reliable.
The other strategy is to test the market. Market testing is meant to show whether the product or service is likeable or not. Testing the market of Learning Skills Unit will target one university in Libya where the unit will be established. My target university to test the market is the Al Fateh University in Tripoli, Libya. This is a big university and has large number of students. Since the institution is quite large, its operations are more complex and diverse. This will be an appropriate target test market. Testing market also involves pricing. Before testing the market, an entrepreneur should ensure that the price charged for the product is affordable to the target consumers (Greene, 2008). The pricing for the unit in the university will be affordable such that when the institution conducts the Cost-benefit analysis, benefits will be more than the costs. This will ensure that the project will be allowed in the institution.
The other core strategy is training. Training is an important component in introducing a new. Introducing Learning Skills unit will require thorough training of the staff that will help the students and lecturers. Each learning institution has its own unique way of delivering services to its students and other clients (Greene, 2008). This will be a challenge since the trainer will be required to have thorough information concerning the institution. This will need cooperation with the staff at Al Fateh University. Training will be followed by promotion where students will be asked to access information from the Learning Skills Unit.
Benefits to stakeholders
The program will be beneficial to students in that they will not be stranded on where to get particular information to students. Students will be able to learn several skills such as essay writing and presentation skills, presentation skills and study skills. The staff in the institution will benefit through training, staff intra-net and such programs as workshop requests. Students such as masters and PHD students will be aided in their research and thesis programs in that they will be able to access literary materials through the unit. This will enhance learning environment in the university. Lecturers will also be relieved of the task of training students various academic skills as this will be done by the unit. Therefore, both the students and their tutors will benefit from the project and hence it is worth implementing. My business will also benefit by charging a fee for such services which will be borne by the institution.
Learning skills unit will also be used by other stakeholders who will who are not part of the student bodies in Libyan universities. This means that individuals from local communities in Libya will also have an opportunity to learn from the unit. High school students will also benefit from the program as they prepare to join colleges and universities. This will prepare them for higher learning and will make them know the operations of higher learning institutions. This of course will be charged some amounts which will create a viable entrepreneurial activity. Therefore, the LSU will not only be beneficial to individuals who are already in higher learning institutions, but also to the surrounding communities.
Future of the businesses
Al Fateh University will just be a test market. The future of the business is to introduce learning skills units to all universities in Libya. This will ensure that service delivery in Libyan universities is enhanced and students experience an enhanced learning environment. if Libyan Universities do not include the LSU, they will lag behind in terms of university ranking. They will not be able to recover time wasted in familiarizing students with institutions’ activities and other academic issues.
Conclusion
Starting a new business is a challenging task. Entrepreneurs do not view it as a challenge but as a source of learning. They view challenges in positive dimension. Introducing learning skills unit in Libya is a new business since it does not exist in Libyan universities. This paper has looked at several strategies that can be used to avail the unit in Libyan universities. It has analyzed the market for the services and has shown the benefits that the business will bring in campuses. It can therefore be concluded that the business will turn into a success.
References
Baron, R.A & Shane, S.A (2008) Entrepreneurship: A Process Perspective, Ohio: Cengage Learning.
Bruin, A & Dupuis, A (2003) Entrepreneurship: New Perspectives in a Global Age, Hampshire: Ashgate Publishing Limited.
Bygrave, W.D & Zacharakis, A (2010) Entrepreneurship, New Jersey: John Wiley & Sons.
Carsrud, A.L & Brännback, M.E (2007) Entrepreneurship, Westport: Greenwood Publishing Group.
Casson, M & Buckley, P.T (2010) Entrepreneurship: Theory, Networks, History, Cheltenham: Edward Elgar Publishing Limited.
Forbat, J (2007) Entrepreneurship: The Seeds of Success, Hampshire: Harriman House Limited.
García, A.C., Ribeiro, D & Roig, S (2007) Entrepreneurship: Concepts, Theory and Perspective, Berlin: Springer-Verlag.
Greene, C.L (2008) Entrepreneurship: Ideas in Action, Ohio: South-Western Cengage Learning.
Hisrich, R., Peter’s M.P & Shephered, D.A (2009) Entrepreneurship, New York: McGraw-Hill Co.
Kuratko, D.F & Hodgetts, R.M (2009) Entrepreneurship: Theory, Process, Practice, Ohio: South-Western Cengage Learning.
Entrepreneurs Failures And Success In Business
Entrepreneurs’ Failures And Success In Business
Contents
TOC o “1-3” h z u HYPERLINK l “_Toc376456475” Introduction PAGEREF _Toc376456475 h 1
HYPERLINK l “_Toc376456476” Reasons for the Failure of Business Enterprises PAGEREF _Toc376456476 h 1
HYPERLINK l “_Toc376456477” Reasons for the Success of Business Enterprises PAGEREF _Toc376456477 h 4
HYPERLINK l “_Toc376456478” Conclusion PAGEREF _Toc376456478 h 7
IntroductionFailure or success of any business enterprise is largely depended on the managerial capabilities of people responsible for running of that particular entrepreneurial venture. This is majorly suggested as the reason behind strong inverse correlation of probability of insolvency (Hall, 1991). There has been tremendous increase in the entrepreneurial activities around the world. This has seen establishment of small, medium and large enterprises venturing into different sectors of the economy. However, most of these establishments have capsized on the way while some have continued to record tremendous increase and expansion of their activities. By exploring a wide range of relevant literature, this paper seeks to discuss circumstances that lead to both failures and success of these entrepreneurial activities.
Reasons for the Failure of Business EnterprisesThere exist several reasons why there is always widespread failure of some businesses. Of the most dormant reason are poor management styles that are employed by these enterprises (Lee, Rogoff & Puryear, 1996). Management can be hazardous when it cannot coordinate its activities in a sound manner. This is because several functions in the organization heavily depend on the management to provide guidance in order to work as one entity in the business environment. Business enterprises that continually disregard and/or accord little emphasis on the realm of management of their various activities have been noted to suffer from a variety of problems which may end up hindering steady upward mobility (Justin et al, 2006). As a matter of fact, it has been observed that a large number of nascent firms fail to grow because they lack sound management principles capable of imparting meaningfully and positively on their day to day activities (Watson & Everett, 1993).
Undercapitalization is another crucial element that makes enterprises to fail in their operations (Watson & Everett, 1993). This factor comes in many forms, for example, insufficient funding results to stalling of business projects. After starting a certain business, the management is required to have a long term funding strategy plan since it is a common knowledge that businesses take some time before it stabilizes. For the business to be to withstand storms after their establishments there is need to have sufficient supply of factors of production. However, with time, the business itself is required to generate these capitals from its own revenue outcome.
Business entities offer their products or services to their clients. The failure and success of the business is therefore depended on the satisfaction of clients to the product or the service. It is therefore imperative that many business enterprises fail when there is customers’ dissatisfaction to these products or services (Folkes, 1984). Dissatisfied customers will never be willing to continue acquiring the product nor the services. a common knowledge therefore dictates that without good sales of the business products, it is doomed to die.
Rigidity in business operation in most cases also contributes to business failures (Watson & Everett, 1993). For example, in the event where the business does not viably respond to competition, it precipitates to the business death. Businesses that do not enjoy the monopoly on the market need to be vigilant on the trends on the market. Businesses need to respond timely to the activities of the competitors in order to remain relevant in the completion arena. It is also important for the business organization to positively embrace technology. Changes in the market go with the changeover of the technology. Therefore, an entity that does not embrace current technologies of the time is likely to be phased out of the business hence its failure.
Uncontrolled growth in business activities is another common reason that leads to business failures (William, Brook & Evans, 1989). Before business entity plans to venture into an expansion program, it is required to have carried out feasibility study for the expansion. When poor feasibility study is done, the business expansion process will be based on false premise which is likely to die and lead to great failure in the business venture.
Strategic planning is a vital component in business management. Poor planning is likely to result into business failures. Poor formulated policies and plans which enhances the probability of poor decision making and in the long run inappropriate actions being taken (Beaver, 2008). Any actions that are taken on wrong plans are always deemed to fail and therefore businesses can not thrive on wrong foundations. For any business entity to perform well, its structures, plans and policies needs to be responsive to the business environment both internally and externally. Weak structures, plans and policies are a prerequisite for business failure.
Before starting any business enterprise, business functions and objectives for establishment need to be clearly outlined and specified. Some entrepreneurs start their business without defining the role, functions, visions and objectives of their operations (Watson & Everett, 1993). This kind of business setting is likely to lack its guiding principles and limits its operations. Such business entities usually operate in a haphazard manner which is a direct path to their demise.
Business entities are established for profit making purposes. It is therefore important that there should be proper mechanisms for cost controls. However, poor cost controls is a major element of business failures (Tracy, 2008). Some business firms do not prioritize cost control and they end up spending haphazardly. In business activities, there is always need to do proper budgeting for business activities. Incurrence of higher costs means that strains to the business spending will definitely bring it to its knees.
In addition, business ventures deal with specific clientele in the market. In occasions where there is poor market analysis by the business entity, business operations are destined to collapse. All businesses operate in a given environment where by external factors determine business survival. It is therefore important that proper market analysis should be undertaken to understand its market needs and trends. Incases where poor or no market analysis is made, the business cannot be able to plan with the market needs in consideration. This results to provision of services and products that are not within the needs of its clients. This often results to losses of greater magnitudes that result to failure of these kinds of business enterprises.
Reasons for the Success of Business EnterprisesOn the other hand, while other firms struggle in their entrepreneurial activities, some firms have continued to carry out their activities in more successful trends. There are a number of reasons that results to success of these business entities. Some of these reasons include:
Good managerial competences; management determines the success of business activities. Apart from the normal management function which include planning, organizing, coordination, staffing and directing, the top management needs to have a sound sponsorship of the business activities. This is always important since business processes changes from time to time for example changes in technology and work place culture. These changes require sufficient resource allocation. Provision of strong and consistent support in business process improves the chances of business success (Radhakrishnan & Balasubramanian, 2008).
It is also important to note that an entrepreneur who is ready and willing to learn new things is destined to success in his/her business venture. In order for any entrepreneur to be successful in the venture, he or she should be curious, open minded to acquire new knowledge and willing to ask whenever he or she is not sure. One can not be self sufficient in the area of his or her venture and therefore it is important that for one to be successful, he or she needs to continually explore knowledge in the area of venture. Most successful entrepreneurs value acquisition of new knowledge in their area of operation so as any decision they make is always an informed action.
In addition, successful entrepreneurs are always keen in building networks (Lewis, 2010). It is a common knowledge that no business exists in a vacuum, therefore, businesses that builds relevant network in their operations becomes a spice for success of their businesses. For example, entrepreneurial business that deals with production needs to build necessary networks with the suppliers, customers and other stakeholders. Good networks ensure continued business operations. For example, the network ensures that there is always continued supply of raw material needed for product production and that there is always a continued client which leads to a continued growth of the enterprise.
Proper and good strategic planning is another critical reason for entrepreneurial success (Oster & Hamel, 2001). Those entrepreneurs who have put concentration on coming up with sound strategic planning, their entrepreneurial activities turn to successful ventures. Good goal setting is a prerequisite for good business performance. Successful entrepreneur invest in proper strategic planning where by proper environmental factors are understood well before plans are formulated that are responsive to the conditions of the operational environment.
Personal motivation also plays an important role in entrepreneurial operations (McClelland, 1987). Venturing in any entrepreneurial activities without personal motivations is precipitate of business failure. Successful entrepreneurs are always motivated in their activities and they are always inspired by their inner spirit to work hard and smart. Internal motivation makes these people dedicated in their ventures. Their dedications bear fruits as most of the ventures blossoms. However, an enterprise that is not driven by personal motivations of the key participants is only destined to failure.
Lastly, it is important to remember that entrepreneurial ventures operate in an environment which changes rapidly in terms of technology, management style and other aspects. In this respect, successful enterprises calls for sound change management in these business operations. Successful managers are good change managers. For example, change in technology is usually met with on time response in order to remain relevant in the competition arena of the business environment. It is important to note that technology determines the success of business operation in the present world. Therefore, successful entrepreneurs prioritize technology and usually change with the trends in order to remain relevant in the business field.
In conclusion, success factors in entrepreneurial activities are largely determined by internal locus of control where by success depends on one’s own efforts (Justin et al, 2006). However, the external locus of control also determines the fate of the entrepreneurial venture. The success of business entrepreneurs needs to have a sound management and leadership just like other well performing institutions. Self discipline is also paramount for the success of the venture. In general good moral standings and practices are important species for success of these entrepreneurs. It is evident that success or failure of entrepreneurial establishments is a two sided thing where by reasons that leads to the success when not adhered to leads to the failure of the establishments. It is therefore important that one need to be positive and work smartly. However, it is also imperative to remember that before one venturing into any business enterprise, one has to have a valid reason for the venture, passion in the sector and desire to succeed in the operation.
ConclusionFirms are established by entrepreneurs to thrive and never to wither. It is therefore the will of all entrepreneurs to succeed in their ventures. However, several factors as discussed in this paper determine any venture success. In the event where these factors are not fully accomplished and used, the firms turn to failures path which leads to their eventual deaths. Business ventures operate in a two sided conditions where by they are either in successful or in failure operations. It is therefore important for entrepreneurs who want to be successful in their venture to follow the discussed reasons to the later.
References
Beaver, G, 2007, ‘The performance and Competitive Advantage of Small Firms: A Management Perspective’, International Small Business Journal, vol. 15, No. 2, 63-75.
Folkes, V, 1984, ‘Consumer reaction to product failure: An Attributional approach’, The Journal of Consumer Research, vol.10.
Hall, G, 1991, ‘Reasons for insolvency amongst small firms – ‘A review and fresh evidence’, Small Business and Economics, vol.4, No.3, 237-250.
Lee, M, Rogoff, EG & Puryear, AN, 1996, ‘Black Entrepreneurship: It has a past and it can have a future’, The Entrepreneurial Executive, vol.1, no.2.
Justin, GL, Moore, CW, Petty, JW & Pallich, LE, 2006, Small Business Management: An Entrepreneurial Emphasis, Thomson South Western: New York.
Lewis, N, 2010, 100 Rules for Entrepreneurs: Real Life Business lessons, Harriman House Ltd: Great Britain.
McClelland, DC, 1987, Human Motivation, University of Cambridge Press: New York.
Oster, M & Hamel, M, 2001, The Entrepreneur’s Creed, Armour Publishing Ltd: Singapore.
Radhakrishnan, R & Balasubramanian, S (2008), Business Process Reengineering, Prentice-Hall: India.
Tracy, B, 2008, The way to Wealth Workbook: Blueprints for Success, Jere Calmes: United States of America.
Watson, J & Everett, J, 1993, ‘Defining Small Business Failure’, International Small Business Journal, vol.11, No.3, 35-48.
William, A, Brook, S & Evans, D, 1989, ‘Business and Economics’, Small Business Economics, vol.1, No.1, 7-20.
Entrepreneurial Psychology
Entrepreneurial Psychology
Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc311651746” Entrepreneurial Psychology PAGEREF _Toc311651746 h 3
HYPERLINK l “_Toc311651747” Introduction PAGEREF _Toc311651747 h 3
HYPERLINK l “_Toc311651748” Warren Buffett PAGEREF _Toc311651748 h 4
HYPERLINK l “_Toc311651749” General Personality Traits PAGEREF _Toc311651749 h 5
HYPERLINK l “_Toc311651750” Buffett’s Entrepreneurial Personality PAGEREF _Toc311651750 h 7
HYPERLINK l “_Toc311651751” Buffett’s Excellent Leadership Skills Portrayal PAGEREF _Toc311651751 h 9
HYPERLINK l “_Toc311651752” Early Life Experiences Nexus with Entrepreneurial Personality PAGEREF _Toc311651752 h 10
HYPERLINK l “_Toc311651753” Conclusion PAGEREF _Toc311651753 h 11
Entrepreneurial PsychologyIntroductionEntrepreneurial skills are not as a result of some accidental discovery but a cultivated individual attitude and approach to relevant business traits. In the context of business needs, entrepreneurial success is dependent on the resilience of the entrepreneur to such an extent that the business environment challenges are easily tackled. Entrepreneurship can be likened with many careers and professions which are dependent on the willingness of the individuals to overcome difficulties and manage abundance to extend business opportunities. Several skills can be enumerated from basic entrepreneurship, but strong entrepreneurs must exhibit a precise conversance with juggling between the correct skills at different times for furtherance of success.
Learning entrepreneurship may therefore not be enough to trigger the best combination of success traits, which requires personal values and attitudes developed over the years. Just like in personality and character development in human beings, entrepreneurship is a factor of personal beliefs and values that are influenced by the environment in which an individual is brought up (Azure, 2008, p4). As an illustration, studies have been conducted to focus the nexus that psychology plays in moulding a successful entrepreneurship encounter by renowned global entrepreneurs. To this end, this discourse highlights various psychological aspects of Warren Buffett to demonstrate the relationship that exists.
Warren BuffettBorn in 1930 to a US Congressman, Warren Buffett has risen to be a global icon in entrepreneurship, which makes him among the riches men on earth. His father was a stockbroker prior to his rise to be a Congressman which introduced Buffett, his only son out of his three children, to a wide spectrum of motivational opportunities at the earliest instance. According to Greg (n.d, para.25), it is not clear how genetics plays its role in transfer of entrepreneurial abilities but research will eventually shed light on such possibilities. In such a context, it can only be speculated that Buffett’s traits could or could not have been passed on from his father, with a light touch. However, the building of the entrepreneur is possibly a guaranteed demonstration form the rest of Buffett’s’ life after birth. He was well educated and qualified to attend the Columbia Graduate Business School where his life changing entrepreneurial background was nurtured. Before his graduation at school, it is reported that he had a rare talent in mathematics and a special attraction towards business activities at a tender age which most boys of similar age would struggle to demonstrate.
In at least two instances, it is reported that the would work out business ideas and implement them than no ordinary boy, for instance selling newspapers (Buffettsecrets.com, n.d, para.2) and selling just a few coca cola units for extra money only at the age of six years (Kennon, 2011, para.2). During his college studies, he met his mentor Benjamin Graham who not only sharpened his investment skills in stocks but also gave him his first job in a stocks firm. His mentorship period was over by the time Graham retired, which propelled him to his first business in form of a partnership in Omaha. Despite his youthful age in business, Buffett was able to gather sufficient capital from savings and donations from family and friends. His outstanding performance in business was established by tremendous performance of the partnership that gave him assurances of venturing to more risky hence higher return businesses. This happened after a number of successful years at the partnership and he decided to wind it up to venture in Berkshire Hathaway, which had mixed results in the initial years of entry. It later came to be a risk worth taking since he was able to diversify his investments into a number of business options creating a successful empire with clarity in investment and devotion to success.
General Personality TraitsEntrepreneurship demands an all-round personality due to the multifaceted nature of business roles in the society. On one hand, it is clear that the personality of an individual is required to contribute the tenacity to withstand challenges and on the other hand, an intellectual capacitation to provide relevant lessons is necessary. The personality of Warren Buffett that complements his entrepreneurship prowess is synonymous with the success that he has managed to achieve in his entire life. Perhaps the greatest value that entrepreneurial wealth that Buffett has emanates from his humane heart that recognizes the importance of fellow human beings in business and in his life.
Buffett has been able to build his business on alliances built on absolute loyalty and friendship inspired by conviction that one cannot build an empire alone. He has been able to overcome difficult times in his investment history perhaps because his allies were loyal and did not find it difficult to stick with him and provide him with moral support. One example of such close and productive allies is reported in his inseparable business relationship with Charlie Munger, a confidant and close business partner (Buffettsecrets.com, n.d, para.9). Mapping such business loyalty into his own personal values, Buffett is depicted as one the greatest philanthropists of this age, which is clearly illustrated by his soft spot on contributions towards helping the needy, making huge contributions to foundations of such courses.
Buffett has been painted as a daring and confident man from a tender age, which is perhaps one of the strongest personalities needed in business projects just like in any other career and in life. Challenges in the career setting require a strong personality that can fearlessly prepare to come to terms with the reality of the challenges, with eyes stuck on the rewards of victory. Buffett demonstrates this character in many episodes of his entrepreneurial life where his resilience against rather risky ventures assisted him to gain the benefits of taking the risk. It is perhaps from the motivation based on the premise that higher risks carry better returns in business, which is clearly supported by such an adventurous personality.
Among the most outstanding personality presentation that depict Warren Buffett is perhaps the biggest contrast in a capitalist environment full of greed and self-centeredness. He is very humble and does not struggle to live in the environment where such a status would warrant an inflated ego with an extravagant lifestyle attracting momentous public glare (Kanter, 1999, para.7). In terms of his personal salary, he decided to earn perhaps one of the least pay with regard to the returns that he presents to the company. He lives in a relatively cheap house that he bought several years back and does not live an expensive life. He lives a simple lie and he is on record that simplicity is the solution to life’s many challenges just as it is in business. One of the world’s most popular men living in such conditions is seemingly humbling, which also acts as a brand name for his personality.
Buffett’s Entrepreneurial Personality
Developing entrepreneurial skills is perhaps best approached at a tender age where children are encouraged to adopt the right attitudes towards investment. Among the basic presentations demonstrated by Buffett from a tender age include organized personality through various business ventures as a young boy. It must have involved special attention to organization and strategy to handle the business, even if at a rather amorphous level of a young kid. Buying coca cola packs and selling them at a profit at the age of six years illustrates an organized entrepreneur on whom much hope can be placed for the future of similar engagements. As highlighted above, entrepreneurs are created from the encounters around their lives, which enable individuals to obtain experience and resilience in dealing with certain aspects of challenges in business and life. Entrepreneurial personalities correspond with life skills gathered with cognitive lessons obtained from our interactions with the environment in which we are brought up. It implies that Buffett’s development as an entrepreneur is a huge factor of the environment in which he was brought in (Morio, 2004, p68). his entrepreneurial father and grandfather acted as a background from which he could draw his personality and developed that into a clear business personality.
As a young entrepreneur, Buffett appears as a man valuing identity of his entrepreneur family background, having observed his father and grandfather rise from business. His father’s entrepreneurial background as a stockbroker and grandfather as proprietor of a coca cola warehouse present him with a supporting environment for rise to similar identity if he is keen and willing to take the challenge. Amazingly, Buffett’s alertness on entrepreneurship skills facilitate his rise to withhold family identity as entrepreneurs and does it better than his family members. He is also depicted as a man with belief in personal strengths, which is demonstrated in his rare ambition to carry out successful business even in difficult times. It is perhaps an inspiration of personal belief and family background identity that propels the young man to a vigorous pursuit of success in entrepreneurship (Ryan, 2006, p182). Entrepreneurship motivation based on identity is easy to be sustained since individuals can draw important lessons from the identity targets such as those set by our values.
Alternatively, it has been demonstrated that ally formation in business is an important tool in creation of success. While at school, Buffett is keen to form a close relationship with his mentor and tutor, a trait that assist him in landing his first job vital for establishment as a businessman. Another mentor who helped in shaping Buffett’s entrepreneurship skills is Philip Arthur Fisher, another stock investor credited for growth investing, a specialization that Buffett is popular in (jcjanec, n.d, para.15). Making business allies is not the only challenge for an entrepreneur but choosing the correct allies that can facilitate development as the best success outfit. In choosing his tutor as a mentor and business ally, Buffett was prepared to get the best possible propulsion into the world of professional investment as a graduate with family identity. Buffett only quit his first employment after it was not possible to continue with his employer, which demonstrates a high loyalty orientation by the young man. In his second business in form of a partnership that he set up, it emerges that he was going to rely on close loyalty from his partners, creating an environment of useful allies (Hagstrom, 1999, p73). His third encounter was with the Berkshire Hathaway that also depended on a loyal alliance that corresponded well with his personality.
Optimism is an important entrepreneurship personality that is well depicted of Warren Buffett perhaps better than any other trait. In the midst of the many challenges that Buffett faced in terms of risks and financial difficulties in the initial entry years at Berkshire Hathaway, he was always optimistic that the investment fortunes would soon turn around in favour of his business. Resilience in mixed business performance requires an optimistic mind that can make decisions based on the positives gained from patience. This depicts Buffett as an energetic and tireless character willing to face all investment challenges for a little longer until things brighten up. Being passionate about business and taking charge of involved risks with the same commitment as rewards is a rare combination of skills and traits that Buffett demonstrates excellently well in his entrepreneurial career. A deep passion for business complements his optimism and value for success making him to have an exceedingly long and successful career where many would lose hope and change course. An excellent self-motivation capability presents him as one of the most resilient and patient entrepreneurs of all times (Pleshette, 2011, para.9).
Buffett’s Excellent Leadership Skills PortrayalBuffett’s business empire was built from a well calculated and guided information package provided in the form of the excellent leadership assumed by Buffett and his close associates. One of the main leadership skills demonstrated by Buffett is his clear and accurate identification of investment items and exact implementation of his business ideas. With his massive wealth of knowledge about which securities and properties worth to make a significant investment on, Buffett was non-hesitant to make the leadership needed in a timely manner even in cases of criticism (Altucher, 2005, p123). At one time, it is reported that his closest associates had remarked that Buffett’s investment in Berkshire Hathaway was a mistake based on the premise that the company was on its decline at the time of the investment. However, using his leadership instincts and conviction, he defied all odds and went on to make the criticism one of the ill-timed in a positive challenge. Sooner than expected, it was beyond shreds of doubt that it Berkshire Hathaway was destined to become one of the biggest textile companies in the world (warrenBuffettbiographies.net, n.d, para5). Leading by example has enabled Buffett to take on any challenge with full responsibility that can enable clear delegation while retaining top notch performance.
Early Life Experiences Nexus with Entrepreneurial Personality
Early life encounters with the entrepreneurial environment is a single factor that can be said to have immensely contributed to Warren Buffett’s momentous career. From his young age passion for business and talent in mathematics, Buffett was able to project his stature as a giant in the entrepreneurial world. As recorded above, he did simple business at a very tender age making profits where many boys of his age would not have made the initiative. Selling soda and newspapers gave him the zeal to accept an offer at only eleven years of age to carry out some roles at his father’s stocks firm (warrenBuffettbiographies.net, n.d, para1). Despite the fact that his family had a good entrepreneurship backing, Buffett did not want to hang on its glory but rather chose to chant his own course by defining his investment portfolio over the years. In a dramatic acceleration of events, Buffett qualified into higher education course specializing in business making him primed for better entrepreneurial encounters. Meeting with influential investors in securities investment became the foundation of Buffett’s mentorship phase of his career. Were it not for the encounter with his mentors, it would probably be different for Buffett in the career that stood ahead of him.
ConclusionCognitive assessment of individual’s development reveals that the environment in which one is brought up in determines certain attributes of their personality and character. In review of the most important life skills that individuals learn from the environment present psychological studies as important tools to define the development course assumed by the individuals. In business, entrepreneurial skills are depicted as a factor of ability to read environmental cues and make important lessons for establishing relevant skills. In such a scenario, it is important to create a relationship between the environment that an individual was brought up and the personal attributes of a particular consideration. In the example discussed above, the psychology of entrepreneurship illustrates the possibility of reflective learning of the character in translating his experiences as environmental conditioning for relevant skills in entrepreneurship. In this case, it is demonstrated that Warren Buffett learnt his entrepreneurial skills from a tender age and sharpened the skills learnt in school and through mentorship to form an all-round entrepreneur of a celebrated status in the world today. Entrepreneurship consists of an interplay of several skills which can be brought out exceedingly well though the appropriate training and mentorship.
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