Entrepreneurship The WritePass Journal

Entrepreneurship Introduction Entrepreneurship ). Economic factors also directly affect entrepreneurship. Success of a entrepreneur or enterprise in any country greatly depends on the economic conditions that characterize it. These comprise of GDP and GDP growth rates, price stability (inflation), foreign exchange and interest rates, among others (Murray-Webster, 2010). Likewise, business strategies are formulated from economic conditions that prevail in an economy. For instance, if the interest rates on loans have a direct effect on an organization’s cost of capital (Williamson et al., 2013). Therefore, it affects the entrepreneur’s decisions on accessing credit facilities and expanding. Foreign exchange rates have a direct impact on companies in the import or export businesses or multinationals operating in economies that are not their home countries. In the external business environment, social factors include aspects like culture, the size and growth rate of the population, religion and demographic aspects like age and gender distributions (Morschett et al., 2005). Social factors have an impact on demand patterns of products and services. Because companies cannot adjust the social compositions and trend in the market, the strategy that can be used is the adjustment of goods, services or management styles to match the tastes and preferences dictated by the social patterns (Lussier, 2011). For instance, if an economy’s population is highly diversified, companies should ensure that they hire an inclusive workforce (Hongjun Yajia, 2012). Technological factors can also facilitate or challenge entrepreneurship. These include research and development capabilities, automation of operations, communication and distribution technologies (Cadle et al., 2010). The technological aspect of the external business environment has an impact on several areas of operation in the organization and therefore is among the key areas of reference in the formulation of success strategies. Murray-Webster (2010) argues that they determine market entry barriers, innovation capabilities and also labour costs. It has been argued by some researchers that legal factors or the external business analysis are closely related to political factors because laws and regulations are formulated by political leadership (Murray-Webster, 2010). Legal factors include laws that regulate employment, health and safety, discrimination and consumer protection. The level of maturation or of an economy’s legal systems also affects the operation of companies (Grant, 2013). For instance, legal systems that are not mature may have loopholes that allow vices like corruption and bribery, which lead to an imbalanced competitive environment for entrepreneurs, which may adversely affect their success. Opportunities for Entrepreneurs Even with the current status competition in the UK business environment, there are still opportunities for innovative entrepreneurs in the business to expand and strengthen their brand positions (CABI, 2009). One characteristic of entrepreneurship is that it is applicable across all industries not only in the UK, but all over the globe. However, entrepreneurs must note that to succeed in this competitive industry, they need to market themselves through implementing innovative ideas that are relevant and competitive enough in whichever industry they are targeting. In addition to this, they must also market themselves through many available avenues so as to attract a wide range of customers (Shone Parry, 2010). The increased globalization that is taking root in the global market also provides opportunities for entrepreneurs to reach a wider global audience with their ideas. Increased competition levels across industries have cause companies to intensify their promotional activities th rough events to increase public awareness. With a focus on the events’ industry, many entrepreneurial opportunities are presented. For instance, there is an increase in levels of diversity in the UK (CABI, 2009). For this reason, there are different religious, ceremonial, and cultural art events being held by member of different cultural backgrounds across the UK. These events seek services of event managers to run successfully. By either specializing in offering services for a certain cultural group of offering services across the board, event managers have a big opportunity for growth (Bratton Gold, 2012). There is also an increase in the number of weddings, anniversary and birthday celebrations. Event companies that provide excellent services and effectively market themselves through the traditional and modern mediums have an opportunity of capturing a large market share in the UK. One of the successful companies in the UK is Theeventscompoany (Theeventscompany, 2013), which is based in the midlands and provides ev ent services in the United Kingdom and European countries. Success of this company has been attained by providing a wide range of corporate event management services that include corporate entertainment events, company fun days, conference management, themed events and gala dinners and other promotional events. Another successful company in the UK events industry is the Absolute Perfection Wedding Consultancy, which has focused on provision of wedding event management (Absolute Perfecttion, 2013). Even with the relatively high number of event companies across the UK that increase the bargaining power of buyers, the increasing market demand provides an opportunity for new companies to enter the UK market. However, successful entry and development of a competitive edge against the current market players requires heavy investment in equipment, marketing and hiring of qualified staff members in the organization. Creativity and Innovation in Entrepreneurship The current business environment is characterized by several dynamics that have made organizations change their approaches to business issues. To thrive in the present day corporate environment, entrepreneurs are increasingly recognizing the need of incorporating creativity in their day-to-day activities (Cooke et al., 2012). Creativity is the process through which new ideas or alternatives for solving different issues are generated. Implementation of these ideas is referred to as innovation. According to Andriopoulos and Lowe (2000), business entities are categorized as being creative if they get their main income by generating novel ideas that are appropriate in tackling the needs of their target clients. There are several entrepreneurs whose businesses or companies have prospered by embracing creativity and creating a work environment that nurtures innovation. These companies include Google, Facebook, apple and Microsoft. Among ways in which companies are transforming towards bein g more creative is the elimination of hierarchical barriers that slow down the communication process and response to change. Eardley and Uden (2011) posit that hierarchical management structures are based on the notion that the management is supposed to create control, certainty and predictability. Even though bureaucracy has its advantages, the current business environment requires organizations to be flexible and ready to face unpredictable situations. This can only be achieved by encouraging creativity. As opposed to earlier times when competition between companies that offer the same service or product to clients was mostly based on price, creativity has also become an important aspect of competition. Creativity has been incorporated in advertising and other promotional techniques, product design, pricing strategies and distribution which are the key components of marketing (Slater et al., 2010). Even though creativity and innovation is essential for survival in the current busi ness environment, there are several setbacks that are associated with it. For instance, creativity involves taking risks with no certainty of a positive outcome. This is one of the reasons that make certain organizations to stick to hierarchical structures (Andriopoulos Dawson, 2009). Theories in Entrepreneurship and their applicability in Event Management Event management is the utilization of a wide range of management skills in creation, organization and development of different types of events. Events can be categorized into four major classifications. These are leisure events, personal events, cultural events and organizational events (Bratton Gold, 2012). In order to ensure that events are successful, event managers have to consider several aspects before, during and after events. Just like other industries in the wider business environment, success in the event management business also depends on the entrepreneurial skills of the owners. With the gradually increasing interest of researchers in the subject of entrepreneurship, several theoretical models that can be used to obtain a deeper understanding have been suggested. One of these theories is the path dependence theory (Zumbansen Calliess, 2011). The path dependence theory states that decisions that are to be made about the choice of a product or service depend on previous experiences with it. This remains the case even when newer and improved versions of services or products are availed in the market. Path dependence results from the fact that it is easier and cost effective to continue with the use of certain products and services (an already-set path) that to create another path that is entirely new and unknown (Magnusson Ottosson, 2009). With reference to this, entrepreneurs in the event management business need to ensure that they provide customers with satisfactory services that will make them return in case subsequent event needs. By carrying out post-ev ent analysis, this theory is also applicable in selection of suppliers for the event company. Even though this theory holds true to a certain level, it is also true that when companies that offer better event management services enter the market, customers can shift from their original event management service suppliers. It is also argued by scholar that the historical determinisms in the path-dependence theory are prone to disruptions from that occur as a result of the dynamism in the present-day economic environment and industrial evolution (Dobusch Kapeller, 2013). There also the cultural dimensions’ theory that can be used in relation to entrepreneurship. According to Hofstede (2001), the institutional and cultural background of the entrepreneur determines various attributes including the ability to take risks and avid uncertainty. For instance, Hofstede’s model (1980, 2005) some cultures nurture individuals to have high uncertainty avoidance index as compared to others. This influences the willingness to take risks among managers, entrepreneurs and employees. For instance, his studies find the Chinese as being largely influenced by the Confucianism culture, which has the philosophy that what is bound to happen is inevitable; this culture is what the Chinese use to handle uncertainties. The Chinese are, therefore, not used to many rules and regulations, managers are more willing to engage in risks. In other studies Hofstede (2005) established a higher uncertainty avoidance index among the German people as compare to the British. According to Perks and Ricarda (2005), the factors of uncertainty avoidance and risk taking which are influenced by culture, affect entrepreneurship and, especially serial entrepreneurship which determines the ability to acquire new ventures and come up with new innovative business ideas. Another theory that is relevant to entrepreneurs in the event management business is the narrative theory, which is about how effectively organizations market themselves to their target markets (Goodson, 2012). For companies to successfully appeal to their target audience, they have to say something unique about themselves in their promotions, mission statements and vision statements. For event companies, this can be achieved by mentioning their points of strength or areas of specialization (Makkonen et al., 2012). Critics of the universal theory argue that its applicability is limited to communication styles that fit classic narrative patterns (Herman et al., 2012). Conclusion The current state of dynamism that characterises the present-day business environment has increased the need of entrepreneurship. As earlier defined in the paper, an entrepreneur is an individual who has the courage and will to venture into uncertain business ventures, regardless of the risks that are presented. Based on this, there are different challenges and opportunities that entrepreneurs are faced with. This paper has discussed these challenges and opportunities, and also provided recommendations on how entrepreneurs can avoid the challenges that they are exposed to. Macroeconomic factors that affect entrepreneurship have also been discussed in this paper. This report has also provided an overview of the events management industry that has discussed and the applicability of entrepreneurial theories on the industry. Opportunities include expansion to the global markets and different avenues in which event management services are needed. Theories that can be applicable to the eve nts industry have also been discussed in this paper. In addition to explaining their relevance to the event management industry, criticisms of these theories have also been presented. Whilst several points have been presented in this paper, future research could be beneficial to practice by establishing the gaps that exist between entrepreneurship theory and practice. References Absolute Perfecttion, 2013. 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