Question

A. Discuss the two main approach to entrepreneurship ( I.e Micro and macro approach)

B. Briefly explain the eight keys characteristics you expect to find in a typical entrepreneur

Answer 1

A) Micro view of entrepreneurship: It focuses on elements of that are specific to entrepreneur and the points of internal control. In other words, the ability to control the outcome that has some influence is the major focus. It is the view of the internal factors and elements to productivity of an entrepreneur and his firm. For example: The price decisions that the entrepreneur takes to influence the demand and supply of his produce / output is micro economical view of entrepreneurship.

Macro view of entrepreneurship has a broader focus to elements that determine the success or failure of a business. These include outside forces such political stability, public and consumer trend etc . These factors are beyond the control of the entrepreneur , yet impacts the business he or she runs, and can either have a positive or negative impact. For example, if a business that operates in the supply of medical equipments can have a positive impact as a result of a spread of a disease as the demand for their products increases. Sometimes when there is a trend of general fitness and health awareness, business that operate by supplying fast food are affected negatively and there is a decrease in the demand for their products.

B) The eight key features / characteristics of entrepreneurship are as follows:

1) Drive and motivation to achieve set goals and the passion towards the work he or she strives to perform.

2) An open minded view of ideas and flexibility in approach. At times we get good ideas and leads from people we hardly expect it to come from and a good entrepreneur must be flexible in his ideas and approach and accept and implement things that work even if it doesn't necessarily an original idea.

3) Confidence in ones own ideas and approach to operations.

4) To be daring and take necessary risks as the business environment rewards those who take risks with high profits.

5) To have managerial skills and the necessary knowledge in initial establishment as well as management of one's business.

6) To have technical skills, that are technical towards the process of production or rendering of service which the entrepreneur strives to sell.

7) To have financial capital knowledge and financial management skills as any business requires initial investment of capital and working capital funds and the effective and efficient management of such funds decides the success or failure of the business.

8) To be determined on achieving goals and overcoming any setbacks as every business has it's own difficulties and setbacks that threaten it's survival and to overcome these obstacles is what makes an entrepreneur successful.