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Monday, 25 July 2016
Sunday, 24 July 2016
IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP
IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP
The
word ‘ethics’ has its origin in the Greek word ‘ethos’ meaning character; norms,
ideals or morals prevailing in a group or society. Ethics is concerned with what
is right and what is wrong in human behaviour judged on the basis of a standard
form of conduct/behaviour of individuals, as approved by society in a particular
field of activity. Ethics may be viewed as the entire body of moral values that
society attaches to the actions of human beings. Ethics can also refer to codes
or other system for controlling.
Business
ethics refer to the socially determined moral principles which should govern business
activities. Business ethics are: charging fair prices from customers, using
fair weights for measurement of commodities, giving fair treatment to workers
and earning reasonable profits. A businessperson behaves ethically when her or
his actions are upright and serve the interest of society. Business ethics is a
form of applied ethics or professional ethics that examines ethical principles
and moral or ethical problems that arise in a business environment. It applies
to all aspects of business conduct and is relevant to the conduct of
individuals and entire organizations.
Ethics
has very important values in entrepreneurship ventures. This is particularly
essential in decision making process. Ethical conscience reminds entrepreneurs
to make trustworthy and profitable entrepreneurship decisions. Awareness of
moral and ethical principles will help the entrepreneurs to solve challenging
ethical problems. Those who follow ethical principles will continue their
business practices for a long time.
An
entrepreneur is actually running his own business and being a businessman he
has some obligation of a business to meet his economic and legal
responsibilities. The world economy requires innovators and entrepreneurs to
both advance and sustain global community. While ethics of an entrepreneur and
businesses undertake the plan and consider social responsibility a vital event
in their activities, everybody benefits. Therefore an entrepreneur has to
become aware about his role and strive to obey them in perfect manner which
would be beneficial to him as well as the community as a whole. Following activities
will help the entrepreneurs to protect the ethical values for the progress of
their business ;
(1)
Avoid breaking criminal law in one’s work
related activity
(2)
Providing good quality and correct quantity
of goods to consumers.
(3)
Taking necessary actions to avoid pollution during
production.
(4)
Paying the reasonable wages and salary to
workers.
(5)
Avoid promoting child labour for production
purpose and other activities in the firm.
(6)
Sustainable and judicious use of natural
resources.
(7)
Give maximum employment opportunities to the
peoples in the locality of business.
(8)
Collect maximum resources ( may be raw
materials ) from the society and try to avoid importing of it.
Monday, 18 July 2016
COMPETENCIES OF AN ENTREPRENEUR
COMPETENCIES
OF AN ENTREPRENEUR
The role of an
entrepreneur’s competency is highly a critical factor in achieving excellence
in performance to ensure a sustainable growth and success of a venture amidst a
competitive business environment. Therefore the importance of entrepreneurial competency
has been increased during the past few decades due to the strategic role played
by the human factor particularly the entrepreneur of a business enterprise. The
person behind the successful performance is called the entrepreneur and the caliber
required to carry on his business successfully is called his competency. Competency
is composed of knowledge, skills, abilities and other characteristics which
underlie effective or successful job performance; These competency attributes
are observable and measurable; and These attributes distinguish between
superior and other performers. The entrepreneurial competencies can be
classified under the following categories;
1.
Initiative
: it is one of the fundamental competencies required for an entrepreneur. He must
be a keen observer of the society, the commercial trends, the product types,
the change in consumer’s taste and preferences, etc. he must be willing to take
necessary steps for starting enterprises.
2.
Creativity
and Innovation : if an entrepreneur has critical thinking and positive outlook,
he will be able to meet all challenges and to bring new ideas and creative
ideas to satisfy the customers.
3.
Risk
taking & Risk Management : Entrepreneurs always searching for new ideas ,
that are not familiar / uncertain to them . In order to achieve the goals he
always ready to take the risks and able
to manage the risky situations occurring to the organisations.
4.
Problem solving : there will be lots of
problems that will come to the path of the entrepreneur during the progress of
his business. He should find out alternative solutions by bringing new ideas
and products.
5.
Leadership
: Leadership is the quality of leading his workers through proper guidance and
motivation for the achievement of organisational objectives. Every entrepreneurs
must possess all the good qualities of a leader by inspiring his workers.
6.
Persistence
: Persistence of an entrepreneur denotes the ability which keeps him constantly
motivated even when he is confronted by obstacles . It is he who has to make his dream come true.
Entrepreneurs moves up when things are not going well.
7.
Quality
Performance : A successful entrepreneur perceives that his performance is
different from others. He believes that it is his high performance which
ultimately differentiates him from low performers.
8.
Information
Seeking : Information collected by an entrepreneur plays a crucial role in the
progress of an organisation . The quality in the method of collecting
information and the extend of its utilization will helps for the success of the
organisation .
9.
Systematic
Planning : An entrepreneur is expected
to have systematic planning which will help him to prepare an action plan for
every area of operation in order to achieve the pre -determined goals.
10. Persuasion
: Persuasion in entrepreneurship refers to the ability of entrepreneurs to
link, convince and influence other individuals, groups, agencies, creditors,
debtors, customers and even competitors in order to create a contact and
maintain good rapport.
11. Communication
Skill : Communication skill refers to the ability of
an entrepreneur to transfer ideas, plans, policies and programmes to employees,
debtors, creditors, customers and everyone who is connected with the business
in order to inform, influence and to express his feelings.
12. Technical
knowledge : An entrepreneur needs to address the rapid
technical changes in the industry. Higher levels of technology must be
introduced in the production methods in order to achieve productivity demands.
Therefore he must update his technical knowledge in order to serve customers
quickly and more effectively.
13. Self
Confidence : Self-confidence is an essential trait in an
entrepreneur because he is regularly called upon to perform tasks and make
decisions that require great amounts of faith in himself. He needs to have a
strong but realistic belief in himself and his ability to achieve the predetermined
goals.
Saturday, 25 June 2016
Types of Entrepreneurs
Types of Entrepreneurs
Entrepreneurs are creative
individuals who conducts lots of innovative businesses. Some may prefer to
carry forward the business alone and share the business with others. They are
in different forms , may be the farmers, labourers, fisherman, artisans,
importers, exporters, bankers, professionals, etc. Lots of classifications
available about entrepreneurs . They are ;
§ Innovative Entrepreneur
Innovative entrepreneurs are those who introduces new
products, new methods of production techniques or discovers a new market or new
services etc. they are commonly found in developed countries. They are
aggressive in nature and they always try to make the idea successful one.
§ Imitative Entrepreneur
This type of entrepreneurs always tries to copy the
innovations made by innovative entrepreneurs. They are organizers of factors of
production rather than creators. They
contribute to the under developed countries. They are adaptive and more
flexible.
§ Fabian Entrepreneurs
Fabian Entrepreneurs are very shy an lazy . They are very
cautious . They do not venture or take risk . They are rigid and fundamental in
their approach . they follow the foot steps of their predecessors .
§ Drone Entrepreneurs
This type of entrepreneurs are conventional in their
approach . They refuse to copy or use opportunities that come their way. They
are not ready to make changes in their existing production methods even if they
suffer losses. They resist changes.
On
the basis of nature, size, and type of business entrepreneurs are divided into
five types;
§ Business Entrepreneurs
Business entrepreneurs are those who develop an idea for
a new product or service and then establishes an enterprise to produce products
according to their ideas. Most of the entrepreneurs belongs to this category .
§ Trading Entrepreneurs
They undertakes trading activities whether domestic or
foreign trade . They have to identify the potential market for his products in
order to stimulate the demand of products. They use many techniques to promote
trading.
§ Industrial Entrepreneurs
They essentially
manufacture products and offer services, which have an effective demand in the market.
They have the ability to convert economic resources and technology into a
profitable venture.
§ Corporate Entrepreneurs
They
are those who through their innovative ideas and skill able to organize ,
manage and control a corporate undertaking very effectively and efficiently.
Usually, they are promoters of the undertaking / corporations , engaged in business,
trade or industry.
§ Agricultural Entrepreneurs
Those
who undertakes agricultural as well as allied activities in the field of
agriculture is known as agricultural Entrepreneurs. They engage in raising and
marketing of crops, fertilisers and other inputs of agriculture through
employment of modern techniques, machines and irrigation.
On the basis of use of
technology the Entrepreneurs can be classified into two;
§ Technical Entrepreneurs
The Entrepreneurs who are technical by nature in the
sense of having the capability of developing new and improved quality of goods
and services out of their own knowledge , skill and specialization are called
technical Entrepreneurs. They concentrate more on production than marketing .
§ Non-Technical Entrepreneurs
Non-Technical Entrepreneurs are those who mainly
concerned with developing alternative marketing and distribution strategies to
promote their business. They are not concerned with the technical aspect of the
product and services they are dealing with .
§ Professional Entrepreneurs
They make their
profession to establish business enterprise with a purpose , to sell them once
they are established. He or she is always looking forward to develop
alternative projects by selling the running business. He is not interested in
managing operations of the business established by him. He or she is very
dynamic.
Based
on the type of motivating factor entrepreneurs are classified into three;
§ Spontaneous Entrepreneurs
They are otherwise known as pure Entrepreneurs , who are
motivated by their desire for self – fulfilment and to achieve or prove their excellence
in job performance . They undertake entrepreneurial activities for their
personal satisfaction in work , ego, or status. Their strength lies in their
creative abilities. They are the natural Entrepreneurs in any society.
§ Induced Entrepreneurs
They
enter into entrepreneurship because of various governmental supports provided
in terms of financial assistance, incentives, concessions, and other facilities
to the peoples who want to setup of their Enterprises.
§ Motivated Entrepreneurs
They
are motivated by their desire to make use of their technical and professional
expertise and skill in performing the job or project they have taken up. They have
enough confidence in their abilities . they are highly ambitious and are
normally not satisfied by the slow progress in their jobs.
Other
categories of Entrepreneurs;
§ First generation Entrepreneurs
This Entrepreneurs start their industrial unit by means
of their own innovative skill and expertise . They are usually combine
different technologies to produce marketable products , or services for the
consumers. They are essentially innovators having no entrepreneurial backgrounds.
§ Inherited Entrepreneurs /
Second Generation Entrepreneurs
They
are Entrepreneurs by inheritance are seen in India where they inherit the
family business through succession and pass it from one generation to another .
§ Third Entrepreneurs
These are those types of Entrepreneurs where in their
grandparents and parents have been Entrepreneurs and they have inherited the
business. The model is very commonly found in India.
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