What are the main influences on the development of a successful entrepreneur.

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What are the main influences on the development of a successful entrepreneur

         What is  an entrepreneur?, “refers to anyone who has responsibility for a firms decisions concerning choices of technology, rates of investment and scrapping, research expenditure etc.  The group includes the individual owner-manager, hired managers and individual or groups of corporate officials”(Entrepreneurship 1870-1914, Floud and McCoskey).  This statement of what an entrepreneur is a very “catch-all” statement.  It sees an entrepreneur as a key person within a company who deals with many decisions. In answering this question I will have to look at the conditions that make a successful entrepreneur with examples.

An entrepreneur needs many different conditions to be a success.  The conditions could be split into to sections, firstly internal conditions and secondly external conditions.  I will examine the conditions individually looking at the different aspects within them.  Once this is done, I will try and establish how important flair and drive are, seeing how important they are to entrepreneurial success.  I will finally conclude by seeing which are the most important factors (if any).

An internal factor is a personal aspect of a person’s personality.  A person must contain a few aspects of internal strength; otherwise they will unable to be a successful entrepreneur.  The first part of this is the person must have imagination.  This is the ability to look beyond a problem and solve it.  Schumpter recognised this as important and stated “innovation and creative destruction of equilibrium”.  If an entrepreneur has imagination, they have the ability see beyond the normal realms of Business and gain an automatic advantage.  A fine example of this is ‘dyson’, created by a man called ‘dyson’ who had the imagination to change a basic good i.e. vacuum cleaner and changed it.  For years people had been using the same techniques and machinery to build relatively same machines.  Dyson had the imagination and innovation to change the vacuum machine to better design.  This is a prime example of an entrepreneur (who I will use again), using his innovation/imagination to become a successful entrepreneur.  An entrepreneur needs to have the imagination to seize an opportunity, to take a risk.  Risk is part of imagination, the belief may be there, but you still have to take the risk to succeed.

A part of imagination, which goes hand in hand, is anticipation.  Anticipation is the ability to foresee events within many aspects of the economic world.   A successful entrepreneur would try and foresee what is going to happen and change their techniques/plans around this.  Anticipation in the economic world covers many areas.  A good entrepreneur would try and cover all aspects of this, but often success could be achieved by anticipating one change only.  The type of things an entrepreneur would try and foresee are; legislation, technology, change in markets, competitors actions, the economy, products demands.  Much legislation affects business and changes markets instantly.  An entrepreneur would try and set up a plan to counter act the legislation and maybe even stop it.  This could be seen when Eddie Stobbart visited the Prime minister to talk about the price of fuel.  By trying to put pressure on the government much negative legislation can be stopped.  On the other hand, if legislation actually opens up markets, an entrepreneur needs to act quickly.  By being quick off the mark, the entrepreneur is able to be the first in the market.  This can be seen recently, when ‘Deutshe Post’ bought 49% of securicor shares.  This is not in the anticipation of securicor just doing well through organic growth, its Deutsche Bank knew that  the government was going to pass legislation allowing private firms to deliver mail.  By Deutche post taking advantage then, they know they can have a ‘piece of the pie’ and the quicker the action the larger the pie can be .  French post have also done the same, buying shares in parcel force, anticipating the opening up of a market and taking advantage of this.  Both Deutche post and French post have entrepreneurs who have anticipated this change and have taken advantage.  

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Anticipation of technology is also another way an entrepreneur can make a success.  By anticipating change in technology the entrepreneur can take advantage.  A prime example of this is the Internet.  Many people predicted the growth of the Internet with the growth of pc’s.  People were prepared to pay huge sums to get in on the change.  Tesco is a good example of this, being the first supermarket to offer virtual shopping.  By taking advantage of this, they can firstly grab the market, and secondly gain some expertise in the new market.  In comparison to the advantages of the growth ...

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