Entrepreneurship Capital Types and Economic Growth

Question: Discuss about the Entrepreneurship Capital Types and Economic Growth. Answer: Introduction: In the world of globalisation, entrepreneurship has opened a new realm of leadership. In fact, the word leadership has been paradigmatic with the word entrepreneurship. However, Howard Stevensons views upon entrepreneurial characteristics are that entrepreneurship is nothing but a process that is pursued by the individuals without giving special reward to the existing resources (digitalknowledge.babson.edu, 2017). There is obvious difference in the definitions of entrepreneurship. However, most commonly entrepreneurship is the power of incorporating concepts and ideas and the ability of executing them in proper business track. Greatest of the entrepreneurs in the world have been recognised for their improvisation in the way of dealing business, which are usually off the track. Although placement of idea is an integrated part of entrepreneurship, it cannot be considered as the prime factor behind the success of a business leader. Endeavour to start up a business or an organisation nee ds great skill of implementation of the idea a person imbibes in his or her mind in order to open a new business venture (Klein, 2014). The following report is going to examine how the ideal entrepreneurship characteristics are associated with the performance of Mark Zuckerburg, one of the five co-founders of Facebook. Facebook is not doubt the largest social media in the world. Study says that more than ninety five percent (95%) of the social media accounts are created in Facebook. Through details analysis of his business ideas and product innovation, his greatness ass an ideal entrepreneur is going to be assessed. Apparently, Mark Zuckerberg is known and esteemed for his innovative idea for founding the newest mode of social media service. There is merely any in the world who does not know about Facebook and its importance in creating a virtual world. While comprehending his leadership traits the report is going to analyse different leadership theories and try to construct a framework of it. Key Leadership and Entrepreneurial Views: Different scholars view key entrepreneurship characteristics in different ways. These are: According to the economists, the economic growth of the organisations is driven by the mental growth of an entrepreneur. Hence, both go along with the other. Most of the economists believe that organisational and entrepreneurial growth is possible when all the factors are suitable for the entire acceleration of the process. Economists such as J.R Harris have designed a proposing structure of economic interpretation of entrepreneurship. However, Marxist views on economic theory Entrepreneur are nothing but the financial opportunists in an organisation as well as broader socio-economic realm (Naud, 2013). The leadership capability of an entrepreneur or big business men rises when he or she is found to take active part in the change of labour and consumer market thus affecting the price determination of a product or service (Carraher, Welsh Svilokos, 2016). Sociologists View on Entrepreneurship: While the economists hold the economic system responsible for the entrepreneurial development and growth, the sociologists opine that entrepreneurship is reticent to the social behaviour. Since a leader is born from a society, social characteristics have extensive effect upon the growth of a business leader or an entrepreneur. According to the sociologists, entrepreneurs emerge from a particular social circumstance. Social culture and designs are highly effective in building the characters of an entrepreneur. The sociologists like Max Webber arguably suggest the impact of social culture and structure in moulding the leadership quality of an entrepreneur (Decker et al., 2014). Psychologists View on Entrepreneur: Psychological interpretation is perhaps the most accepted course of entrepreneurial composition. Schumpeter has brought into the matter of psychological differences of different leaders that have affected their leadership quality. Most of the modern business scholars have been supporting Schumpters theory of psychological interference in leadership quality as they continue to analyse different business leaders. Motivational theory is aptly implemented in understanding the psychological motif of the entrepreneurs. Since psychological understanding is quite flexible at times, the theorists constantly support this concept in business and leadership analysis. Psychologists arguably reject the influence of society and economy and prioritise psychological trait of an individual over collective view of society and economy (Baum, Frese Baron, 2014). The report hereby validates mark Zuckerberg as an ideal entrepreneur. Validation of such is going to happen through the analysis of the previously mentioned theories of entrepreneur. Background of the Case Entrepreneur: With the launch of Facebook in February 2004, Mark Zuckerberg created a phenomenon in the realm of social media and virtual world. It was one of the epoch making venture in the world of business. The vital characteristic trait of Mark Zuckerberg has been the urge of creation. This urge has brought a sense of upright innovation into him. The ambition to bring change in the mode of worldview of life and livelihood has been drastically changed by this person. The most initial quality of an entrepreneur is supposed to be the launch of something new and innovative. When Facebook was launched, Googles Orkut was the leading social media networking cite. However, in the very first year Facebook started challenging the authenticity of Orkut and it captured the global market within a very few years. This is how Facebook presided over the realm of Googles social media service. Facebooks most innovative venture was its social media optimisation. Infact, the concept of SMO was first brought into existence by Mark Zuckerberg (Kuratko, 2016). Schumpeter who argued that psychological strength is responsible for making a great entrepreneur proposed theory of innovation. Facebooks direct marketing strategy is the proof of such innovation. Beginning with the product launch and marketing, strategy of Facebook, one can easily judge Zuckerberg a great improviser in terms creating demand for the product. Once in an interview Zuckerberg was noticed to state that Facebook objectifies at daily marketing procedure (Clinebell, 2014). It has tried to reach to everyone in the world and allow everyone to find out people of their choice. Market strategy through the creation of interlinking approach is no doubt a sheer improvisation. Structure of the product was actually designed by Zuckerberg and his core team. His innovative idea of team performance has also affected the business of Facebook. He has himself said even after epoch-making success of Facebook that his work is still in progress. Thus, Schumpeters model of innovation goes fit with Mark Zuckerbergs entrepreneurial quality (Drucker, 2014). Following diagram demonstrates the model proposed by Schumpeter: Theory of Need for Achievement was designed by McClelland . McClelland has discussed that the theory with two major features: performance and capability of doing things and the power of decision- making. Power of decision- making impends from ones strength of understanding of existing and required situation of the market. The theory suggests the presence of the following features within a leader: As a global entrepreneur, Mark Zuckerberg possesses all of these criteria. His eligibility of community building has provided him with the scope of business growth. Thus, he has become cohesive in nature that has caused him success. This theory was devised by Liebenstein. X-efficiency tries to illustrate the efficiency of leaders in properly using the potential of the available resources. The boldest initiative that Mark Zuckerberg has taken was the collaborative endeavour with the US government. Utilisation of learning resources has been key instrument for the co-founder and CEO of Facebook. Conclusion: Entrepreneurship does not match with making huge profit. The quality of entrepreneurship lies in this fact that it begets leadership quality within an individual. Mark Zuckerbergs leadership and entrepreneurial quality is not measured through the amount of money he has earned. 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