Economics of entrepreneurship seeks to explain the approaches to entrepreneurship, it focusing on setting up a venture, nurturing same venture and ultimately profiting financially from same venture.
The Pros of entrepreneurship include the following: Control, Excitement, Flexibility, Freedom, rational salary etc. Its pros are the many high point why people often want to create something they can call their businesses.
The Cons of entrepreneurship include the following: Administrative burden, Competition, loneliness, Irregular salaries, Work Schedule. These are some of the reasons entrepreneurs get their fingers burnt while trying to create a business.
An entrepreneur is someone that is capable of not just starting a venture but capable of managing the venture transition from start up to growth via the application of management functions principles (POCDSM). Therefore entrepreneurship is not about formulating ideas but making ideas happen. As we all know principles rule the world.
Entrepreneurship is a process while the person that goes through that process is an Entrepreneur.
What is this process?
The process is fluid like. It’s not static but dynamic. These processes include these six steps outlined below will help us fit into the over-sized shoe entrepreneurs face in trying to create and nurture a business
1. Think like an Entrepreneur.
The difference between ordinary thinking and focused thinking is the difference between an ordinary bulb and a laser beam. The light bulb just exudes light but a laser beam is concentrated light that can cut through steel.
Entrepreneurs that manifest a high level of success are those who devote themselves to the tedious process of thinking through a solution. The outcome of this can manifest in the ability of the entrepreneur to;
- Chase a passion: Not driven by money but love what they do, seek to positively impact their societies and solve problems.
- Take Responsibility: The govt. won’t do it for you, nobody will. Your future lies in your hands.
- Match Talents with Passion: Yes, that’s reality. Every entrepreneur must be able to match the gown with the town; that is being street wise and understanding the dynamics of street ruggedness. But here the entrepreneur should be able to successfully blend talents with passion to ensure solving a problem which is key to profitability which in turn sustains the business over time.
- Establish Goals: Goals are ideas of the future that a person envisions plans and commit to achieve over a given period of time. Written down goals must be pursued unflinchingly.
- Be Visionary: Your future is your vision, if you can see it you can accomplish it.
2. Nurture Your Ideas
Entrepreneurship is not about ideas but making ideas happen. That’s the difference between an ordinary bulb and a laser beam that can cut through steel. When the mind is concentrated on an Idea we cut through solutions and it shows us how to ultimately implement these Ideas.
3. Fund Your Ideas
“Dream big Start Small. But most of all, start” – Simon Sinek. Ways to fund an Idea include: bank loans, crowd funding, micro-loan etc.; Other People’s Money. The difference between the poor and the rich is this point.The Poor Consume; they borrow to consume.The Middle Class earn to save.The Rich Invest; they borrow to Invest. They borrow other people’s money to invest.
4. Selling and Money from Your Idea
Be it a product or service every entrepreneur must exchange something for money. The reason MMM failed was because they were exchanging nothing for money. Selling is different from talking, that’s why Roy Bartell said, “Most people think selling is the same as talking. But the most effective salespeople know that listening is the most important part of their Job”. The skill to be able to listen is rare in many entrepreneurs because somehow they believe they know a lot than their clients. That skill can be learnt.
5. Evolving and Advancing Your Ideas
Growing a business from start up to growth and profiting from it is not a little feat; not many entrepreneurs can do that. So many businesses have risen and fallen even before they were started by their owners due to poor planning. Purpose is Impotent without a Plan. You don’t need a plan to build a shanty or building without worth but need a plan to build a mansion. People will often say we have built this business. Just as we need a building plan to build a house, we also need a business plan to build a business. Every business needs futuristic planning.
6. The God Factor
We need to be co-labourers with God by acting on our Ideas and not just praying for divine help.
YOU DON’T GROW BIG TO MANAGE WELL; YOU MANAGE WELL TO GROW BIG. THEREFORE IT’S GOOD MANAGEMENT THAT DETERMINES GOOD RESULTS.
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