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What Is Entrepreneurial Behaviour?

In business terms, what is entrepreneurial behaviour? In simple terms, entrepreneurial behaviour is defined as a set of behavioural traits that an individual exhibits that enables them to creatively and effectively innovate and/or develop upon existing concepts to sell a product or service efficiently in a highly competitive marketplace. This can range from being highly introspective to being extremely spontaneous. Strategic innovation can also be described as the use of one’s time and capital wisely to develop new opportunities for growth; however, it can also take the form of being reactive rather than proactive.

Some of the top careers in entrepreneurship include inventor and creator of new technological products, venture capitalist, financial analyst, consultant, venture manager and entrepreneur. The characteristics that define these careers are determined by their interests and passions. For example, those with an interest in technology and applied science may choose to become consultants. In contrast, those with entrepreneurial skills who enjoy risk and the challenge of starting a new business may turn to venture capitalists. While critical appreciation of entrepreneurship is necessary for entrepreneurship to thrive, those entering this business sphere need to demonstrate that they have the character, personality and interpersonal skills required to be successful.

Entrepreneurial behaviour is applicable in all types of organisations, public and private. A key tenet of entrepreneurship is innovation, which is the fostering of new products and services. Many would-be entrepreneurs struggle with finding ideas for new ventures and often fail to apply what is entrepreneurial behaviour to their own organisations. However, if an organisation values innovation, and rewards those within it who exhibit entrepreneurial attitudes, then it will be much easier for these innovative minds to be transformed into entrepreneurial entrepreneurs and start businesses that make a difference to the economic development of their region and country.

In fact, what is entrepreneurial behaviour and how it differs from more traditional forms of business enterprise includes a set of entrepreneurial attitudes. These attitudes are necessary for entrepreneurs to be able to succeed in their own enterprises because it takes a certain entrepreneurial mindset to be able to overcome obstacles and look beyond traditional forms of market entry. In other words, being a successful entrepreneur sometimes requires a mindset that is not necessarily from the “old school”, even if the names of the schools may have changed.

The first major component of what is entrepreneurial behaviour and its relation to economic performance is vision. Vision is defined by Wikipedia as ‘a clear and realistic expectation concerning the future’. It is closely related to commitment, because the two cannot be separated. Commitment is central to every venture, because it represents the underlying basis of the enterprise and is central to the operation of business activity. To understand entrepreneurship and its relation to commitment it is important to understand what is entrepreneurial behaviour and the entrepreneurial orientation. A commitment to excellence is central to the entrepreneurial attitude, because excellence represents the essence of everything that is entrepreneurial.

The second important component of what is entrepreneurial behaviour is enterprise commitment, which relates to the ownership and control of the venture and the decision making process of the enterprise. Ownership refers to individuals who create new value through their ownership, and control refers to individuals who take charge of the day-to-day activities of the enterprise. This is not the same as individual ownership, but rather a much broader concept that includes other people and organisations who acquire shares or partial ownership in the enterprise. Many entrepreneurs are career seekers. They are searching for opportunities to start a new venture, or to progress into new entrepreneurial activity.

The third key component of successful business behaviour and its relation to economic performance is innovation. Innovation is the creative application of available knowledge and technology for the creation of new productive capacity. Successful entrepreneurs are not afraid to try new things and are not afraid to evaluate existing methods and models to improve the viability of their enterprises. These entrepreneurs are not afraid to experiment with different forms of business practice to determine what works, what does not work, and what is cost effective and appropriate for their particular circumstances. Innovation is a powerful driving force behind almost all successful businesses.

Finally, successful business and entrepreneurial behaviour incorporates social attitudes. Entrepreneurs are generally warm and friendly people who love interacting with others. In the best organisations, this warmth and friendliness spills over into workplace dynamics and helps create a congenial, collaborative working environment where everyone knows what is expected of them and feels encouraged to contribute. Entrepreneurial behaviour is also highly conscientious and self-regulating. People who are successful are careful to ensure that they are doing what is right for them, the organisation, and the wider field of endeavour.

What Is Entrepreneurial Behaviour?

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