Could you be an Entrepreneur Essay Example | Topics and Well Written Essays - 2000 words

Could you be an Entrepreneur - Essay ExampleThese people are still alive in history, in their inventions and in the hearts and minds of the people, and they continue to inspire many people. However, the dark side of entrepreneurship is that not all(a) people make it to level where they earn a place in the history. In fact, statistics reveal that to a greater extent than half of the small businesses fail in their first year of business. Furthermore, the bankruptcy fillings have been increasing all over the past few years (Keister, pp. 19-23, 2005). This paper is an attempt to explore the reasons of the same. The paper would present the reasons why legal age of the entrepreneurs fail to manage their produce phase and what permits entrepreneurs to do the same with effectiveness. Discussion Following are both(prenominal) of the reasons why entrepreneurs fail to manage their growth. Growth Strategy One of the biggest issues entrepreneurs face once they have track the inertia of busi ness is the absence of a clear strategy. Most small businesses are opened found on intuitions, advices of colleagues, peers, family and friends, raw data, assumptions and opposites. Furthermore, since most entrepreneurs want to make it simple, they do not plan things extensively, and just allow things to let happen. Entrepreneurs prefer their business to be a rollercoaster ride rather than planning and strategizing like former(a) businesses do (Kuratko, pp. 287, 2008). However, once they get going and enter into their growth phase, they fail to understand that the reactive approach, ad hoc approach, uncalculated, intuition based strategy is less likely to work. When a firm grows, it is exposed to the market contest and other competitive forces like that of buyer power, supplier power, threat of new entrants, and threat of substitute products. When a firm grows, it catches the attention of many competitors and rivals, which had previously avoided the entrepreneur as posing no th reat (Audretsch, pp. 23-43, 2002). Therefore, the header is that while growing, an entrepreneur has to choose a clear and well-defined growth strategy (Bygrave & Zacharakis, pp. 78-79, 2010). Now flourishing entrepreneurs are able to understand that there are only three types of four distinct types of growth strategies available for the firm. These are penetration strategy, product development strategy, market development strategy, diversification strategy (Crane & Meyer, pp. 112-115, 2010). perspicacity strategy calls for operating in the existing market with the existing product. The idea here is to increase the exercise of customers by encouraging them to buy more of the same product. The same can be done with the do of marketing, promotional offers, little modifications in the product and others. Important here to note is that the entrepreneur would not look to target any other customers, segment or try to take away share from other competitors (Crane & Meyer, pp. 112-115, 2010). By pursuing a market development strategy, the entrepreneur tries to reach out new geographic, demographic, psychographic, and other markets and segments for its existing product. Moreover, it is overly possible to pursue a market development strategy by communication a new use of the product thus increasing the customer base. Successful entrepreneurs may also go for product developme