By Melissa Price,2014-04-17 01:04
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Individual report Mengxiao Zhou 890315T432


    After I read the most of references, I acquire that there are different definition for what’s the entrepreneurship. According to Kirzner’s theory, the following compilation of roles assigned to the entrepreneur by various economic theorists:

    1. Labor service is specific

    As an entrepreneur, he also need some staff to help him to finish

    their goal. Therefore, the entrepreneur needs a specific kind of

    labor service to attract customers’ eye, and gain more market


    2. Assuming the risk

    Risk should be assumed, because everything should be considered

    before it happened. It is possible to entrepreneurs to prepare

    something they can expect.

    3. Innovator

    It is necessary for the entrepreneurs to be innovator; they need

    specific service, new idea and new product. But to be an innovator

    is not enough, many things are waiting for the entrepreneur to deal


    4. Arbitrageur

    Sometimes entrepreneurs focus on short-term opportunities, which

    is possible from stock or currency market. Generally, these kinds of

    opportunities are low risk.

    5. Coordinator, organizer, or gap-filler

    As I wrote, entrepreneurs also need to be a coordinator and

    organizer sometimes. It is quite hard for human being to run a

    company or a firm by himself; they need human networking and

    cooperation. I think, it is necessary that an entrepreneur is good at

    coordination and organization, because entrepreneurs need

    manage staff well and make them motivated.

    6. Providing leadership

    Leadership also is necessary, for entrepreneurs need lead a team to

    reach their goal. Without this, just like no-leading army which would

    be defeated

    7. Exercising genuine will

    During their business, most of entrepreneurs might confront with

    difficulty which they need conquer them. In this way, they would

    make their will more genuine.

    8. Acting as employer

    To be a entrepreneur, they are always employ themselves, so they

    are also employee and work with others together. In this way, they

    could eliminate the gap between boss and employee.

    9. Acting as superintendent or manager


Individual report Mengxiao Zhou 890315T432

    I acquired the knowledge of the difference between an

    entrepreneur and a manager from class; a manager should use all

    source given efficiently; but an entrepreneur should think how I can

    get more source than I have already. Therefore, an entrepreneur is

    not only a superintendent but also a manager

    10. Acting as a source of information

    Having a prefect skill of information collection has positive effect on

    running entrepreneurs’ business.

    11. Being alert to opportunities as yet overlooked in the market.

    Opportunities are everywhere, but they are not easily grabbed.

    Although some of them are also in the market, they had been

    overlooked. Therefore, an entrepreneur should be aware of these

    kinds of opportunities.


According to the article;(written by William B. Gartner, who is an

    entrepreneur? Is the wrong question), entrepreneurship is the creation of organizations, which means that creating organizations makes entrepreneurs different from non-entrepreneur and entrepreneur. There are two ideas about entrepreneurship, one is from the aspect of behavior, and the other is from the aspect of trait. William B. Gartner thought that an entrepreneur is seen as a set of activities involved in organization creation, while personality traits and characteristics also play a key role in it.

    However, from my perspective, we cannot separate traits and behaviors; it is peoples traits and inner quality push people to do something. The baseball players movement comes from their goals, which they want to win the game. The reason why they want to win the game is they want to win the first prize in this season. Their ambitions drive them to do, I think it is the same reason that entrepreneur do.

     Desired future state Characterized

     by Growth or change

     yes No

    Self-perceived Yes entrepreneur Satisfied manager Power and

    ability to Frustrated Consummate Realize goals no potential bureaucratic

    entrepreneur functionary

     yes No

     Creation of organization


Individual report Mengxiao Zhou 890315T432

    After I read some of articles, two of the authors, Howard H. Stevenson and David E. Gumpert had mentioned that the ability about creation of organization is important to entrepreneurs. Therefore, I referred the measurement of “creation of organization” to the table; we can see from the table that entrepreneur should have some abilities and skills. Besides creation of organization, entrepreneur also need

    self-perceived power, ability to realize goals and desired future state characterized by growth or change.

    Here we also can identify the difference between satisfied managers and entrepreneur.


    According to Evans and Jovanovic, Austrian economics challenges the validity of these assumptions arguing that different people will discover different opportunities in a given technological change. I agree this point, because different people have different education background and the knowledge we have is more or less, sometimes skill also play a key role in discovering opportunities. For instance, in our first class in Halmstad University, teacher asked us to use 50sek to earn more money. Some groups focused on offering coffee and snack to students and teachers, some groups focused on other service. I think Swedish student have some advantages, since they can speak Swedish to others not English, and they know where the target customers who can afford food and service students offer are.

    Sometimes, it also refers to working experience. Nowadays, 3M has become one of the most famous companies in the world. When I search some information about 3M, I enter the website of 3M, there is a significant title come into my eyes, innovative technology for a changing world. Initially, he just had a job in the office, every time he wanted to adhere something to the wall, he had to use another tools. Now, post-it had come into people’s life, people can write some notes on it, and then put it to anywhere he or she wants to put. The invention is great, because it has a positive effect on enhancing employee’s efficiency in the office.

    Post-it was a new product at that time; 3M which was a new firm put it into a new market. From today’s perspective, because of their innovating, taking risks, and showing creativity, the old firm, 3M, play two roles in the A or C. Extending new market, they improve their



    Individual report Mengxiao Zhou 890315T432


     New Old

     Organizational change

     New offer A B Acquisitions

     Product/service Spin-outs/ Buy-outs

     New Bundle Internal

    Price/value re-organization

    Firm relation Management


     C D

     Geographical Business as usual

     Old market Non-entrepreneurial

     expansion growth

     Low high


    Entrepreneurs makes different things, innovation and creation, which would have a positive effect on Entrepreneurs’ success.

    The graph also shows that the relationship among market, firm and competition. I think most of entrepreneur would choose A area into the

    market. Because it is the new market and low competition, the new product or service would be much easier to survive in the market. The most unwise choice is into B area, because the market is probably maturity or Decline. At that time, the product price is low and other company’s costs are low too. Additionally, many competitors are finding substitution to gain market.

    But to be an entrepreneur, it is

    necessary for them to grab the

    opportunities which are overlooked.

    It is possible that the product in the

    original market declines but it still

    has opportunities in other country’s

    market. It is known to us that the

    electronic products are advanced in Japan, they make one of the most advanced products into domestic market. When these products are maturity and decline in PLC, the company will transport them into other country’s company and make

    profits continually.


Individual report Mengxiao Zhou 890315T432


    According to Bhide, A, the questions every entrepreneur must answer, he found that many entrepreneurs seized short-term business opportunities to develop, nor considering about long-term strategy. First, they had identified these opportunities, but they chose the short term business, so I will think what are the different entrepreneur and small business owner. Maybe the first step to be an entrepreneur is to be a small business owner.

    Secondly, successful entrepreneurs would make the transition from a tactical to a strategic orientation as soon as possible, because they could start to establish significant capabilities and resources. Third, it is one of important things is to have an ability of organization creation, which means an entrepreneur should resolve hiring issues, design control systems, set reporting relationships and define the founders role. Entrepreneurs took risks to use new organization to confront with confusion.

    Otherwise, Entrepreneurs should periodically check their strategies

    state whether it is right or not.

    1. It is essential to provide a clear direction for the enterprise,

    because without that it would lead to fail all other tests.

    Before entrepreneurs start their work, it is better for them to

    consider why he wants to enterprise. In my opinion, their ambitions

    push him to behavior; which come from their personalities.

    2. Once entrepreneurs have formulated clear strategies, they have to

    identify whether these strategies would bring them profit and


    One of the entrepreneurs aims are running their business well,

    therefore it is the reason that they should have a bright strategies to

    help themselves to achieve it.

    3. Whether the strategies the entrepreneurs make now can confront

    with the long term.

    At the beginning, some of entrepreneurs just want to run their

    business in a short time, so they havent considered the long-term

    strategy. After a new firm has entered a market for a period of time,

    I guess that the entrepreneurs should consider whether their

    current strategies could confront future challenge.

    4. After consider these problems, entrepreneur should think whether

    their goals are conservative or aggressive.

    All problems considered, entrepreneurs need a long-term vision on

    their business future. A conservative strategy is unable to gain good

    profit, but an aggressive strategy is possible to result in failure. Finally entrepreneurs should have ambitions, because it comes from their personalities, which influence their behavior to be an entrepreneur.


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