DIRECTIONS: Answer the following questions below.

(Arial 12 double space)

1. Factors that influence enterprise choice

Five factors will be key to entrepreneurial success: creativity, tolerance for risk,

responsiveness to opportunities, leadership and the ability to take advantage of the

rights afforded to you.

 Creativity and Accumulation of Ideas

Do not be dissuaded by the challenge to be creative. You need not be the original

wheel creator to improve upon a stone cylinder. By standing on the shoulders of

giants, you can take existing ideas and make small improvements upon them. Your

best ideas may come to you as you are falling asleep or while you are taking a

shower. Recognize when you have a fresh idea and do not let them get away from

you. Write them down! Not every idea has to be a home run. By accumulating your

ideas, you will be able to distill the great ones from the rest and be ready to run with

the best.

 Risk Tolerance and Taking Advantage of Opportunity

Rewards rarely come without risk. Your ability to take advantage of an

opportunity will depend, in part, on your tolerance for risk. As the founder of a start-up,

investors will expect you to have a vested interest in your business. If you will not bet

on your idea, why should anybody else?

decisions that are too tepid to be successful. To do well, an entrepreneur needs the

strong sense of self-efficacy to believe the risk will be surmountable.

 Responsiveness to Opportunity

Opportunity can leave quickly. With the internet, the spread of information and

ideas has led to deeper, faster competition to be the first mover. The ability to respond

to the market and new business opportunities can be the difference between a

successful entrepreneur and a failed business model.

To be responsive, an entrepreneur must have the flexibility of mind and

resources necessary to see and take advantage of new and upcoming possibilities.

Learning from your mistakes and those of others to implement change can keep

businesses afloat. Calcifying rigidity, on the other hand, can turn a start-up into dust.

 Leadership and Inspiring Others

It is up to the entrepreneur to marshal assets. Leaders are challenged with taking

possibilities and turning them into inspiring visions for others. You will inevitably have

to sell either your idea or your product to begin your entrepreneurship. It will be up to

the entrepreneur to take the idea and turn it into actions and products to capitalize on

the opportunity. Leadership can come in many forms, but it is nevertheless essential

to entrepreneurship. You must take the lead for your ideas to come to fruition.
  Intellectual Property Rights

Intellectual property laws can provide you with exclusive business rights to your

ideas. If you do not protect your ideas, they may be copied – cheaply. Once an idea is

in the public domain, it may no longer be possible to use that idea as a competitive

advantage. Society values ideas being shared.

In exchange for sharing ideas, governments provide limited monopolies that will

allow you to capitalize on them for a period, making up in part for the costs you have

incurred in research and development. Intellectual property professionals can aid you

in seeking such rights.

2. Types of Entrepreneurs and their functions

Though every type of entrepreneur experience similar challenge, they may

choose to address them differently. Each type of entrepreneur sees challenges in a

unique way and has different resources to overcome them.

 Small Business Entrepreneurship

business entrepreneurship are most likely to make a profit that supports their family and

a modest lifestyle. Small business entrepreneurship is often when a person owns and

runs their own business. They typically hire local employees and family members. Local

grocery stores, hairdressers, small boutiques, consultants, and plumbers are a part of

this category of entrepreneurship.

Large company entrepreneurship is when a company has a finite amount of life

cycles. This type of entrepreneurship is for an advanced professional who knows how to

sustain innovation. They are often a part of a large team of C-level executives. Large

companies often create new services and products based on consumer preferences to

meet market demand. Small business entrepreneurship can turn into large company

entrepreneurship when the company rapidly grows. This can also happen when a large

company acquires them. Companies such as Microsoft, Google, and Disney are

examples of this kind of entrepreneurship.

 Scalable Startup Entrepreneurship

This kind of entrepreneurship is when entrepreneurs believe that their company

can change the world. They often receive funding from venture capitalists and hire

specialized employees. Scalable startups look for things that are missing in the market

and create solutions for them. Many of these types of businesses start in Silicon Valley

and are technology- focused. They seek rapid expansion and big profit returns.

Examples of scalable startups are Facebook, Instagram, and Uber.

 Social entrepreneurship

An entrepreneur who wants to solve social problems with their products and

services is in this category of entrepreneurship. Their main goal is to make the world a

better place. They don't work to make big profits or wealth. Instead, these kinds of

entrepreneurs tend to start nonprofits or companies that dedicate themselves to working

toward social good.

Innovative entrepreneurs are people who are constantly coming up with new

ideas and inventions. They take these ideas and turn them into business ventures. They

often aim to change the way people live for the better. Innovators tend to be very

motivated and passionate people. They look for ways to make their products and

services stand out from other things on the market. People like Steve Jobs and Bill

Gates are examples of innovative entrepreneurs.

 Hustler Entrepreneurship

People who are willing to work hard and put in the constant effort are considered

hustler entrepreneurs. They often start small and work toward growing a bigger

business with hard work rather than capital. Their aspirations are what motivates them,

and they are willing to do what it takes to achieve their goals. They do not give up easily

and are willing to experience challenges to get what they want. For example, someone

who is a hustler is willing to cold call many people in order to make one sale.

 Imitator Entrepreneurship

Imitators are entrepreneurs who use others' business ideas as inspiration but

work to improve them. They look to make certain products and services better and more

profitable. An imitator is a combination between an innovator and a hustler. They are

willing to think of new ideas and work hard, yet they start by copying others. People who

are imitators have a lot of self-confidence and determination. They can learn from

others' mistakes when making their own business.

Researchers take their time when starting their own business. They want to do

as much research as possible before offering a product or service. They believe that

with the right preparation and information, they have a higher chance of being

successful. A researcher makes sure they understand every aspect of their business

and have an in-depth understanding of what they are doing. They tend to rely on facts,

data, and logic rather than their intuition. Detailed business plans are important to them

and minimize their chances of failure.

 Buyer Entrepreneurship

A buyer is a type of entrepreneur who uses their wealth to fuel their business

ventures. Their specialty is to use their fortunes to buy businesses that they think will be

successful. They identify promising businesses and look to acquire them. Then, they

make any management or structural changes they feel are necessary. Their goal is to

grow the businesses they acquire and expand their profits. This kind of

entrepreneurship is less risky because they are purchasing already well-established

companies.

3. Roles and Responsibilities of the Entrepreneurs

To do their work effectively and operate a successful business, these

entrepreneurs should perform certain roles. These roles are the same as the basic

managerial roles. All such roles are listed out in detail as follows.

 Figure Head Role

Acting as a figurehead for the company is a lot like being a leader, but it’s

extrinsically focused. The entrepreneur needs to be the Head in the organization and
participate in ceremonial duties, such as representing the organization in formal and

informal events or even being the public spokesperson whenever there is a press

release.

 Leader Role

The entrepreneur should also act as a leader because an entrepreneur may

need to bring people with dissenting views and approaches to work together as a team.

So, he needs to be good with his people management and leadership skills. He has to

lead the people by hiring, firing, training and motivating his resources as and when

necessary.

 Liaison Role

The entrepreneur should also be the liaison officer for his organization. He

should be the source of link with the outside world and business houses, always trying

to find an opportunity of working together with other big organizations.

 Monitor Role

The entrepreneur acts as a regulatory body too; he monitors both the internal

and the external environment of the business constantly.

 Information Provider and Receiver Role

The entrepreneur should also act as the organizational representative and

transmit information internally and externally the organization.

The manager should also act as the spokesman of the business and transmit

information internally and externally the organization. He needs to be the source of

knowledge about his company to potential investors and collaborators.

 Entrepreneurial Role

This is the basic role of the entrepreneur; he/she declares new ideas for the

organizations, brainstorms it with the employees and friends and then bears the risk of

any unsuccessful implementation.

 Disturbance Handler

The entrepreneur needs to act as the mediator and bring people with dissenting

thoughts to the table and get them motivated to work together. He needs to handle all

conflicts and get the team to focus constantly on the goal.

 Resource Allocator

The entrepreneur needs to find out how the available resources can be allocated

between different departments of the organization to suit their demands and

necessities. This helps them achieve the organizational goals and the objectives.

 Negotiator Role

The entrepreneur must negotiate on behalf of the organization both internally

with the staff as well as with the external investors or collaborators. At such
opportunities, the entrepreneurs need to be more focused on their role of being a ‘win-

win” deal breaker.

Reference/s: https://www.tutorialspoint.com/entrepreneurship_skills/.htm

https://www.indeed.com/career-advice/career-development/types-of-entrepreneurship