Dynamics of Entrepreneurship

Commitment and Determination

Commitment means to show loyalty, duty or pledge to something or someone,

Personal

commitment Brand commitment Organizational commitment

Any new business will require entrepreneur's

time, emotion, patience, loyalty.

and

Commitment can be measured in several ways

through

a willingness to invest a substantial portion of his or her net worth in the venture a willingness to take a cut in pay and

through through

the other big sacrifices in lifestyle and family circumstances.

Determination is nothing but the desire to win with strong minded firmness and constant perseverance.

With commitment and determination an entrepreneur can overcome incredible obstacles and also compensate enormously for other weaknesses.

Leadership

Leadership is the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.

Effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals."

Leadership theories are involved based on Traits, Situational interaction, Behavior, Function, Power,

Trait theory of leadership Leadership is rooted in the characteristics that certain individuals possess

Situational approaches According to the theory, "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions.

Style of leadership as contingent to the situation

Fiedler

contingency model,

The The

path-goal theory, and Hersey-Blanchard situational theory. grid model

Managerial

Behavioral and style theories Viewed leadership as a set of behaviors,

Leadership styles under this are:

Authoritarian, Democratic

and Laissez-faire.

Functional Based:

Transactional leader

The transformational leader

Based on Power Legitimate Power Reward Power Coercive Power Expert Power Charisma Power Referent Power Information Power

Leadership should incorporate following attributes:

Giving positive feedback for good job Initiate confidence in employees Be fair and objective Be understanding and create atmosphere of acceptance and trust Listen actively Clarify priorities Talk openly and give straight answers for affairs Encourage advancement Be proud and supportive of employees Set good example

Opportunity Obsession

A business opportunity consists of four integrated elements

A

need The means to fulfill the need A method to apply the means to fulfill the need and; A method to benefit

The more control an entrepreneur has over the elements, the better will be positioned to exploit the opportunity and become a niche market leader

OPPORTUNITY ANALYSIS

Scanning

of business environment Shortlisting of opportunities / project ideas Finalization of opportunity or product

Uncertainty and Ambiguity

Uncertainty is
The

lack of certainty, a term which applies to predictions of future events, or to the unknown

Uncertainty can be classified into three types

Risk: Ambiguity True

measurable statistically : hard to measure statistically

Uncertainty : impossible to estimate statistically

Ambiguity is a term where information can be understood or interpreted in more than one way, which is a statement about the lack of accuracy or available information however, ambiguity is always avoidable

Expert entrepreneurs predominantly use experience based heuristics in the absence certainty.

Motivation

Motivation and Entrepreneur

Motivation includes

The urges, drives, desires, aspirations, striving or needs of human being influence human behavior The factors which influence human behaviorpsychological, sociological, economic or managerial The efficiency of such behavior this may be tasted by resultant action.

If the entrepreneur feel motivated his behavior will bring about the desired action. Motivational urge will continuously
demand Directs Force Which

for something new and unique and also to perform better then others. towards end results.

to use resources efficiently

is a mean to carry out any activity with persistent efforts