Entrepreneurship And Small Business Development Essay

Entrepreneurship And Small Business Development - Essay Example Entrepreneurship is also about making proper plans and arranging the resources required for converting the market opportunities into reality (Dyck and Neubert, 2008, p.173). While on the other hand, an entrepreneur is an individual who is focused on the decision of allocation and harmonization of scarce resources (Casson, 2003, p.19). Bill Gates, Steven Spielberg, Sam Walton, Gordon Moore, Ted Turner and Alan Sugar are among the eminent entrepreneurs of the world (Finance in the classroom, n.d.). However, in the context of this project Alan Sugar, the owner of Amstrad will be chosen as the entrepreneur on whom the study will be conducted. Alan Sugar is a successful entrepreneur and tasted success at an early age. The leadership skills of Alan Sugar are also noticeable. Hence considering all the relevant facts Alan Sugar is the ideal person. The study will focus on the attributes associated with an entrepreneur and also the theories related to it. The report will also highlight the re lation between the entrepreneurs and the theories applied. The report will then try to give an insight about the entrepreneur by considering the literature and the practical work. Finally, after analyzing the finding from the study, a conclusion will be drawn which will portray whether the null hypothesis holds true or it is rejected. An overview of the theory of leadership as applied to entrepreneurs Entrepreneurship has always been a subject of study that has been highly researched and theorized and is still in the developmental stage. Earlier studies have proposed that entrepreneurs are more inclined to unique psychological needs and are also more spontaneous, motivated to achieve their goals, takes more challenges and are also prone to take more risks. Hence an entrepreneur has to adapt according to the demand of the situation. The most important functions of an entrepreneur are as follows:- 1. Organization building: - An entrepreneur needs to organize all the relevant elements such as manpower, material and the related resources. The entrepreneur has to perform the function of planning, organization, and monitoring. The entrepreneur also needs to use the leadership skills to build a team, accumulate resources and finally solve the problems. According to Kilby, entrepreneurship is an important activity in developing countries and encompasses the following rule. Purchasing inputs. Managing finance. Managing production. Attaining charge over the limited resource. 2. Bearing Uncertainty and Risk: - According to the author Andrew F. Newman, an entrepreneur has to bear huge risk and uncertainty (Newman, 2007, p.1-2). Every decision related to the creation of a new product, incorporating new technologies, and taking up foreign venture involves risk and uncertainty. Thus in this uncertain environment entrepreneurs needs to make the decision by forecasting the associated risk. Since entrepreneurs are not gamblers, therefore, they take calculated risks. Entrepreneu rs also lead, create and take actions. Therefore all the mentioned behaviors produce leadership competencies. Leadership is about selecting the appropriate style according to the situation. Also, the characteristics of the person, who is being guided need to be considered (BBC, 2006). The leadership qualities are an important characteristic for an entrepreneur.