What determines the success of entrepreneurial activity? Common mistakes new entrepreneurs make

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The activity of an entrepreneur at first glance seems simple. However, it is not. A novice businessman needs to study and master a lot so that his business is more profitable, and services or goods are in demand. First of all, it is necessary to determine what the success of entrepreneurial activity depends on.

Business activity

Entrepreneurial activity is a special kind of professional activity. Its subject is the realization of the personal potential of a businessman in the process of creating a new structure that will function profitably, or expanding an existing one.

The main components for the formation of the structure of this type of activity are:

• motives that are in the pursuit of self-realization;
• objectives to expand the company and benefit from product manufacturingactivities;
• resources of a psychological type personality: efficiency, strategic thinking and initiative.

After reading the definition of the concept, you should find out what determines the success of entrepreneurial activity.

Psychological factors

The success of this type of activity is determined by the level of appropriation by a businessman of its main structural and dynamic components: resources, goals and motives.

Psychological factors for the success of entrepreneurial activity in the complex of motives represent the level of dominance of the desire for self-realization, which occurs both at the beginning of the activity and at the stage of mastering this business.

If we consider a set of goals, we can conclude that the criterion is the desire to expand the commercial business and benefit from the production of goods and services.

In the block of resources, psychological factors represent the level of actualization of entrepreneurial resources by the subject. These include the following personality traits:

• initiativity, which is expressed in the desire of the individual to create new forms of activity;
• efficiency, which is the readiness of a businessman to work productively in the presence of stressful cases;
• strategic thinking, which manifests itself in his ability to see the future of business in uncertain situations.

Defining business success is one ofthe most important, so you should pay special attention to it.

Entrepreneurship and employment

Business should be understood as much more than current business. It is important for its owner to find opportunities to create assets that will bring profit. One of his main tasks is the proper organization of the team and the inspiration of employees for more productive work. To maintain the effectiveness of activities, it is necessary to regularly improve and correct them.

There are differences between the work of an entrepreneur and an employee. In the case of hiring a person always knows what he has to do. This is due to the prior arrangement of labor. With the functions of an entrepreneur, everything is much more complicated, since situations often arise when he has to deal with those things that he did not initially count on. To understand what determines the success of entrepreneurial activity, you should find out what criteria distinguish it from other types.

Comparison of entrepreneurship and employment

The following criteria are used for comparison:

• Labor efficiency. The mercenary works in those volumes that are controlled by his superiors. In this case, the businessman understands that the possibility of creating an asset will depend on the quality of his work. Therefore, he performs his functions more conscientiously.
• The need forcontrol.
• Riskiness. The work of an entrepreneur is quite risky. This is due to the fact that his remuneration depends on the characteristics of the market and the profit received. Employees generally receive a fixed salary, but it also depends on the employer's profits. If the market in which it operates is stable, the risks will be minimized, which will also affect the success of doing business.
• Wages. The employee will receive a pre-established payment. The owner of the company will receive for personal consumption what will not be included in the costs of the company. Its assets are the property of the entrepreneur. They are quite valuable because they are able to generate income, but should not be transferred to personal consumption.

Culture as a success factor

Determining what determines the success of entrepreneurial activity, you should know that culture is quite important for it. This concept should be understood as the degree of development of society, which is expressed in the forms and types of organization of people's lives and their relationships. When using services and purchasing goods, the client expects the observance of moral standards by their representative.

It is worth noting that the success of entrepreneurial activity depends on moral standards. From whether there is a problem with their adequacy in the state. For example, in Russia, the inviolability of privateproperty. This has happened historically due to the influence of Orthodox culture and the politics of socialism. The existing mentality has led to the fact that most of the population does not accept the receipt of we alth, even if it is the result of their labor. The current situation has also led to a peculiar attitude towards legislation and the state as a whole.

Domestic business is distinguished by the fact that its ethics, or lack thereof, is largely determined neither by personal choice nor by law. First of all, it depends on the need for the survival of the entrepreneur in the face of non-compliance with laws, uncertainty and oppression by the state. What determines the success of entrepreneurial activity, and what should be the ethics that contributes to it? It includes the following basic norms:

• respect for privacy;
• manifestation of personal initiative;
• fulfillment of obligations, no attempt to harm and honesty;
• absolute compliance with the terms of contracts with partners;
• self-decision-making;
• be responsible for your actions;
• quality work;
• participation in social partnerships;
• ensure proper he alth and employment;
• eliminate discrimination in activities;
• keeping information open to the public.

Having considered only these norms, it is difficult to understand what determines the success of entrepreneurial activity, so it is worth continuing to studymaterial on this topic.

Key Success Factors

It is worth considering the main factors affecting the success of entrepreneurial activity. In the days of classical capitalism, there was only one main factor, which was capital. At the same time, inventions and ideas were acquired by the capitalist, and managers were also hired. With the development of science and technology, an increase in the manufacturability of products was made. For this entrepreneur had to join forces with managers, developers, innovators who have modern ways of marketing products, organizing production and management.

Considering the main features of entrepreneurial activity, we can distinguish the following equal factors: capital, innovation and management. It should be noted that today the manager, the owner of the capital and the innovator have the same opportunities in entrepreneurship. At the same time, any of them can act as the initiator of creating a project or starting their own business, inviting two other partners to join them.

Capital

Capital is not only cash. They can be a huge number of various intellectual and material goods, which will become investments for the provision of services and the manufacture of goods. When capital is combined with management and innovation, human and natural resources are combined to form labor.

Considered business success factorsthey are also able to involve in labor methods for saving resources and time, which contributes to an increase in the productivity of the use of natural resources and labor. With the help of experience and knowledge, you can significantly reduce the amount of required capital investments and accelerate the solution of production problems.

Innovation

Innovation is the product of the creative process. They involve the transformation of scientific and engineering ideas when creating experiments into production and technical solutions. This product of thinking should be distinguished by originality and novelty. You should also take into account the availability of production capabilities for the implementation of the project.

To know what makes a business successful, you need to understand what benefits and demand innovation can have. In order for them to be worthwhile, it is necessary to follow the rules for their development and implementation. First of all, an idea is created or borrowed and transformed into an engineering solution. Further, their usefulness for consumers is assessed, as well as the efficiency and manufacturability of the manufacturing process. If the creation of the project is continued, an experimental batch is produced. After the products are released in full volume and sold on the market, approaches are developed to create purchasing power.

Success in the implementation of entrepreneurial activity can be achieved by mastering the science of innovation management, which exists and has been improved over the past few years.years. To do this, a businessman needs to ensure an increase in the scale of production, development and renewal of goods, as well as an extension of their life cycle.

Regular innovation and product renewal will lead to a long-term and efficient existence of the company. Determining what determines the success of entrepreneurial activity, one should take into account the need to assess the need for changes, as well as to identify the moment of renewal in a timely manner. This is due to the possibility of finding effective alternatives in relation to the technologies used, which will lead to the improvement of products and an increase in demand for them. Reducing the cycle of innovation is the main task of the enterprise, which determines its competitiveness and success.

Management

One of the factors that affects the success of entrepreneurial activity is management. Its essence lies in the creation of purposefully working groups of unorganized people. Management allows you to use the abilities of subjects to implement the ideas set by the company, through their joint work. The manager is tasked with bringing the company to the goal with the presence of proper functioning and produced processes.

In order to achieve the success of the enterprise, it is necessary to adhere to the following management principles:

• unity of directions;
• division of labor and responsibility;
• unity of all commondisciplines;
• predetermined order;
• honest remuneration;
• communication and teamwork.

For making entrepreneurial decisions and their execution, it is required to use the following management tools: leadership, motivation, coordination, control and coordination. The greatest emphasis is placed on collectivity and personality, as well as the definition of the powers of leaders and performers. The effectiveness of management decisions allows you to achieve positive results in the conduct of activities.

Conclusion

Based on the material under consideration, the success of entrepreneurial activity depends on many factors. Conducting research on its criteria allows you to take a fresh look at this problem. Modern educational materials designed to prepare future entrepreneurs differ slightly from management training programs. For this reason, the study of the functions of management and innovation is essential. With the right approach to the study of materials, you can understand how to achieve success in the implementation of entrepreneurial activities.

After considering the information provided, you can understand what personal qualities a businessman should have. Factors affecting the optimal functioning of the company are of significant importance. Every business owner must take them into account in order to achieve the desired results. This information is especially important for aspiring entrepreneurs.

Worth it toonote that the success of entrepreneurial activity depends on the reliability of the market in which it is carried out.