Entrepreneurial Behavior and Learning Essay Example | Topics and Well Written Essays - 3500 words

Entrepreneurial Behavior and Learning - Essay Example The process of entrepreneurship is complicated with the existence of various other factors such as risk, chaos, information asymmetries, resource scarcity, uncertainties, paradoxes and confusion. Successful entrepreneurship can be developed only when all the three components are arranged in a proper fit. An entrepreneur has to face the challenge of manipulating and influencing the factors affecting the process of entrepreneurship so that he can improve the chances of success of the venture. Since opportunities seldom wait, right timing of the recognition of the opportunity becomes critically important for any entrepreneur. Literature has identified a number of factors influencing the process of entrepreneurship, which include creativity, optimism, information search, alertness, social networking and prior knowledge. Based upon the presence of some of these personal traits and by adapting to the circumstances, entrepreneurs are able to work their ways to recognizing profitable ventures and convert them into operable business ventures. However, the question remains as to which are the ones out of these factors that affect the learning behavior of entrepreneurs. This report based on the interview with a young entrepreneur who has successfully ventured his business in the information technology sector examines the entrepreneurial behavior and learning in practice. Psychological Base of Entrepreneurial Behavior The first question was a general one asking the entrepreneur to elucidate his personal opinion on the psychological base of entrepreneurial behavior. From the answer given by the interviewee, the following points emerge. The personality characteristics of entrepreneurs will share some common features. There are different such features like the need for achievement risk taking propensity, locus of control and work values which shape the entrepreneurial intentions of individuals. There is another dimension to the psychological base of entrepreneurship behavior, which deals with other psychological characteristics of entrepreneurs such as the problem solving style, innovativeness in approach, following role models, acquiring work experience, educational background and perceptions of individuals (Liang & Dunn, 2004). In this context, it is to be recognized that behavior is influenced by the way the external world is represented in the mind of an individual. It is also influenced by the exercise of different choices by the individual in pursuit of his different occupational intentions. It is important to have a look at the term entrepreneur, which is defined differently from entrepreneurship. Some researchers have defined entrepreneur as one who recognizes an opportunity and gathers the resources necessary for acting on the opportunity identified by him. Another definition brings together the innovative behavior and the strategic management practices of an entrepreneur and it identifies different strategic actions of an entrepreneur. They are: (i) introduction of new products and services, (ii) introduction of new production processes, (iii) exploring new markets or expanding the existing markets, (iv) identifying new supply sources, and (v) reorganization of industrial enterprises (Gartner, 1989; Sexton & Smilor,