Level 3 UG: Entrepreneurship and Business Planning Assignment 1 Marking Sheet Student: Module Title: Personal Reflectio n

Entrepreneurship and Business Planning Assignment 1: Individual Assignment (30%) The Assignment is intended to get you to reflect on the characteristics of the entrepreneur and to consider your own strengths and limitations in this respect. You are expected to identify three areas where you are strong and three where you are not so strong. In so doing you are being introduced to the concept of self-development and self-managed learning, and are being encouraged to take ownership of your own learning. Whether you are working for someone else or intending to set up and run your own business, you will need to possess these attributes. Thus you are required to: - Identify three areas where you believe you are sufficiently developed. Provide demonstrable evidence of your capability in these areas (i.e. provide written evidence that demonstrates what you have done/achieved). You need to relate this to entrepreneurial theory as well as practice. - Identify three areas where you believe you require further development. You need to explain why you think these characteristics are important by using examples of other entrepreneurs who have these characteristics. You need to relate this to entrepreneurial theory as well as practice. In summary reflect on your skills and characteristics, both strong and weak, and explain whether you are well placed to be an entrepreneur. In particular: 1. It is important that the link is made between theory and practice. 2. Use examples to illustrate and support your argument.

3. You should address the issue that there is no simple definition of an Entrepreneur. th Date 5 November 2010 Word 1500 Date Due: at 12 noon via Limit: Submitted: ULearn Weighting Basis of Assessment Mark % Presentation and Style. Structure, organization and 20 writing style

Evidence of Reading beyond the brief (Application of Theory) Use of Applied Examples (Use of real life practical examples) Mark

40

40

Basis of Assessment: Assignment Presentation and Style (20) Should be clearly written and easy to read. Any tables and figures should be explained. There should be an appropriate structure. Marks should be deducted if there is too much decoration or colour. The Harvard referencing system should be adopted. Readability, neatness, spelling, Harvard referencing, etc. is important. Inappropriate structure, unclear, referencing minimal or inaccurate or less Appropriate structure, clear articulation, referencing acceptable to 14 Appropriate structure, clear articulation, correctly/fully referenced 14+ Evidence of Reading /Application of Theory (40) Wholly descriptive/ Reference to set texts only or less Mainly descriptive but containing some discussion to 28 Critically evaluative discussion with necessary description 28+ Use of Applied Examples (in context) i.e. use of real life practical examples (40) Including examples but also explaining how they demonstrate the theory and how they relate to the assignment. The examples will be appropriate and very clearly presented. Includes few examples or less Includes and explains examples to 28 As above but also relates to task 28+ Strengths 16 17 16 17 8 9

Areas for Improvement

Student notes

Introduction The aim of this paper is to reflect on my personal traits when considering myself as a potential entrepreneur by elaborating on my strengths as well as on areas that I need to improve on. The first part of the essay, therefore, will discuss my strengths and second part my weaknesses. Strengths In todays age demanding innovation day by day, as mentioned by Paul Saffo (Burns 2005), the main domain of an entrepreneur in order to survive is to be in constant process of applying emergent strategies to new ideas and placing them into the market place. I have recognized the constant need for innovation strategy while I was working in a small business serving hot chocolate drinks. Even though the business had a perfect location in the middle of the old town, which is the biggest attraction for tourists, it did not attract new customers. Since the business is very small it does not have any departments such as marketing or sales, what in my opinion was the cause of the problem of declining clientele, seeing that tourist had no way of finding out about this locally famous chocolate shop. Hence, I introduced the blogger webpage to the owner as a form of online marketing with help of Tweeter and Facebook to promote the business overseas and to enable to market the incoming visitors before their visit. This idea was perfect as there would be no loss if the idea would fail. Fortunately, the idea worked out and the business is attracting more tourists year by year. Following this farther, it is possible to say that there is a strong link between innovativeness and business performance, however, as Neil Kelly (Burns 2005, p.26) cited, innovation is about seeing new opportunities for old designs, for instance, Mrs. Schultz, the owner of Starbucks is constantly reminding the company that even though it is already

successful, that doesn't mean it can't execute each cup of coffee better," says Levitan (Hyatt, 2004), therefore, the introduction of the blog should be only a starting point for the business as not to innovate is to die (Freeman, 2000). Besides the importance of having creative and innovative abilities, a successful entrepreneur has to be self-motivated and determined to succeed since there is no one to motivate and encourage them while running own business. A founder of Universal Laboratories, Mike Peters, suggest that the best way to do so, is by having a vision, building a plan and simply following it (Burns, Sunday Times, 2004). While considering myself as a potential entrepreneur, I can positively say that I am motivated to achieve my goals I have for the future, hence, setting up a marketing company in the hospitality and tourism industry. In order to do so, I am aware of the fact that I will need to have enough experience and knowledge of the market to succeed. Therefore, I tried my best to build my knowledge of the market through undertaking unpaid summer internships in recognized marketing companies. This way, my motivation has not only helped me to learn how does the industry really works, but it also helped me to gain many valuable skills and contacts. In addition, achievement means different things to different people, furthermore, McClellands research about the entrepreneur need for achievement shows, that it is not the money that motivates entrepreneurs, but the instrinctive motivation they posses enjoying their work and the central role they can play in driving and controlling the growth of the company they founded (Wasserman, 2006). The money is recognized only as a measure of success (Kirby, 2003). Moreover, in the business environment where the economic pressures are strong, many resources like time or money scarce, effective negotiating plays an important role in distributing resources (Dingle, 2009), managing conflicts, and in creating value. The aim of a successful negotiation is obtaining a benefit for all parties involved and the possible repetition business that is critical in the competitive market. According to Steve Gates, the CEO of The Gap, better negotiation is now a key part of GAP business strategy, it has revitalized the way the products are bought and is helping to build a more profitable business. Likewise, research by Centre for Economics and Business Research indicates that effective negotiation can save 5-10%

of firms annual operating costs and that these savings alone could help thousands of businesses in avoiding insolvency (Markou, 2010). Consequently, it is possible to say that negotiation skills are important attribute as a key tool to success not only for entrepreneurs but also for everyday life situations. For instance, I have been negotiating over my apartments rent recently. As Steve Gates notes, the very best negotiators listen, prepare, are adaptable and have the emotional intelligence to get into the other partys head. This combined with financial ingenuity, confidence and creativity can help cultivate successful deals which leave both sides of the table feeling satisfied(Markou, 2010), accordingly, I prepared an offer for the landlord which he did not immediately agree on, but, after a negotiation we agreed on a sum that have suited both of us, plus an added benefit for my side in the form of some new furniture.

Areas for Improvements One of the most valuable characteristics of an entrepreneur suggested by the classical economic theory is the ability to take calculated risks, thereby the ability to develop a better comprehension of risk. As noted by Jonathan Elvidge (Burns, 2005), the entrepreneur has to be prepared to loose everything and to remember that the biggest risk is not taking any risk at all because without a risk there is no reward. Risk taking is a strong characteristic that I feel I need to develop for the future, as I do not like to make any uncertain steps when making decisions. I try to avoid risks as much as possible since I am afraid of loosing or ruining my personal reputation if I fail. However, I do realize that learning to take calculated risks would allow me to become a successful entrepreneur in the future. The best way to learn is from your own mistakes according to Richard Branson, the founder of Virgin. His success lies in empowering all employees to make mistakes and learn from them. By taking the risk of possible failure of his employees, Branson has not lost but he has gained the loyalty, encouraged creativity, and devotion from them. Many Virgin projects that bankrupted were used as setbacks to identify the cause of a failure and to return with better innovative solutions (Richard Branson, 2010). Virgin Money in Australia was one of these projects that failed when first launched but after some innovation, the new project was introduced, and successfully implemented. Hence, it is important for 6

an entrepreneur to build up risk taking skills to not to miss a strategic opportunity, to overcome obstacles and to learn from own mistakes. Another characteristic of an entrepreneur believed to be important by many writers (Beste, 2007) and me is self-confidence that is being described as a self-belief for mobilizing resources, motivating and making changes, or, in other words starting up a business. (Deakins, 2003). Without self-confidence, Donald Trump would not have become as successful as he is according to his recent interview (greenwizardwealth.com) where he noted that the secret behind being richer than most people is that he failed more times than others did, but he learnt from his mistakes and tried again because he was confident in himself and believed he could do anything he wanted to, if he just kept trying until he succeeded. I believe this is a very important for me to learn in order to be able to make decisions without feeling concerned because of mistakes from the past, since I sometimes tend to give up very easily after failure. Moreover, it was proven that self-confidence affects firms strategies and performance (Westerberg, Carter 2006) what was also observed by a research is that entrepreneurs with high self-confidence achieved higher performance for the business than those with low self-confidence. Furthermore, looking at Michael Dell and his leadership skills, I have recognized another weakness of mine in becoming a successful entrepreneur. As cited by Suiercz and Lydon (Hulsing, 2008), there are many reasons why many start-up business fail, but an unquestionable critical factor is the leadership ability of the entrepreneur. Consequently, while opening a new business, excellent leadership is essential while effective management becomes important to get things done (Burns, 2005). Michael Dell identified the need for efficient management team in order to be able to operate in a turbulent environment and to unblock barriers for a change. The Dell Company was challenged by culture issues causing the staffs low levels of motivation. Whetten (Burns, 2005). argues that poor motivation is a consequence of a lack of skilled leadership, not a lack of desire within people because the role of a leader is to enable the staff to achieve their potential by channeling the motivation to succeed. Hence, Mr. Dell shifted the focus away from growth in order to strengthen the Dell Company internally by setting clear direction as well as improving interpersonal and team-working skills what in the end helped the company to grow. 7

Therefore, I realize the importance of the leadership as a way to give the business a direction and purpose, by underlying these in the vision of the organization and thus improving my team working skills.

Conclusion I am aware of the fact that I lack some of the traits that are essential in operating my own business. However, as Wadhwa (2010) describes, entrepreneurs are made, not born. Thus, even though I am not a risk taker or as confident as an entrepreneur should be, through practicing and gaining more experiences I believe I can develop these attributes for the future. Word Count: 1638

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Education Limited. p.76-87. Carter, S; Evans, D (2006). Enterprise and Small Business. 2nd ed. UK: Pearson Education Limited. p.152-170. Carter, S; Evans, D (2006). Enterprise and Small Business. 2nd ed. UK: Pearson Education Limited. p.291-300. Deakins, D; Freel M (2003). Entrepreneurship and small firms. New York: McGrawHill Education. p.2-21. Deakins, D; Freel M (2003). Entrepreneurship and small firms. New York: McGrawHill Education. p.116-132. Dingle, D. (2009). Negotiating in a Volatile World. Black Enterprise. 40 (2), p.62-66. Hyatt; Joshua; Fortune. (2004). THE REAL SECRETS OF ENTREPRENEURS. Entrepreneur. 150 (10). Hulsing, R. (2008). Leadership and Entrepreneurial Success. Available: http://www.bookpump.com/dps/pdf-b/9427206b.pdf. Last accessed 23rd Oct 2010. Kirby, A (2003). Entrepreneurship and small firms. New York: McGraw-Hill Education. p.107-185 Markou, M. (2010). What Makes a Great Business Negotiator. Available: http://blog.businessopportunities.com/bob-daily/2010/6/8/what-makes-a-greatbusiness-negotiator.html. Last accessed 21st Oct 2010. Wadhwa, V. (2010). Entrepreneurs are made, not born. Available: http://denniswhittle.blogspot.com/2010/02/entrepreneurs-are-made-not-born.html. Last accessed 22nd Oct 2010. Wasserman, N. (2006). Rich Versus King: The Entrepreneur's Dilemma. Academy of 10

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