Benefits and Risks of Outsourcing to Low Cost Countries
Apparel and luxury value chains have come up with strategies so as to be cost competitive, increase the income, and expand the market for their goods. Outsourcing the end-to-end supply chain means that activities of an organization are carried out by an external company that specializes in these activities (Pickles et al., 2015). More so, a company can pay attention to its key competencies satisfy consumers, and be more flexible in maintenance and operation of its supply chain.
Apparel and luxury industry is very volatile today, frequent changes in expenses, risks, and demands for materials and goods as well as the changes in factors like international business environment are some of the challenges affecting the end-to-end supply chain. Anything that halts or reduces the movement of material, as well as the apparel and luxury goods, are considered a problem to the supply chain (K3SoftwareSolutions, 2017).
Apparel and luxury companies have been able to expand their supply chain to many different countries and migrating to outsource manufacturing which has seen reduction in the cost of production. This strategy has promoted division of labor throughout the end-to-end supply chain by allowing company to concentrate on principal business undertakings. The organization is allowed to concentrate on its core competencies while specialist suppliers are given non-core undertakings (Handfield, 2017).
Suppliers who can carry out the processes more efficiently are tasked with this role and therefore outsourcing in low cost countries helps make the supply chain more effective. International brands have been allowed to create a completely responsive supply chains as well as bringing apparel and luxury products of low price to the shelves of stores (Handfield, 2017). Low priced goods are as a result of using external company’s expertise, knowledge and links to make cost-effective plans. Besides, time is economized since the time taken in designing, and delivering new clothes and luxury products to the market has been reduced from over a year to only a few weeks (Handfield, 2017).
Through outsourcing in low-cost countries, companies have been able to achieve effective processes, low-priced goods, and consumer satisfaction leading to outstanding performance and strategic advantage. Supply chain also becomes more flexible as the company has freedom to choose who they can do business with. Also, outsourcing enables the end-to-end supply chain of the organization to be more traceable (Robinson, and Hsieh, 2016).
Despite the benefits, an organization exposes their brands to great risks through outsourcing because it becomes a supply chain against supply chain. When going after cheap labor, apparel and luxury companies have been putting immense pressure on the suppliers who in turn are ready to reduce their invested capital to have low costs (Handfield, 2017). So as to compete with other businesses in the low-cost countries, suppliers forwent investments and labor practices that reduces the safety standards in a company and this is likely to damage the brand image of the apparel.
Poor working conditions in the apparel and luxury industry so as to maintain common local codes in low-cost countries is a disadvantage to the supply chain (Handfield, 2017). Another challenge to the supply chain is the abroad manufacturing delays. Apparel and luxury stores that are in western countries are progressively relying on the clothes and accessories from countries like China. Most newcomers to the industry may be found off guard by the delayed manufacturer (K3SoftwareSolutions, 2017). Moreover, damaged shipments and some that get lost is another menace to the apparel and luxury industry. Possible unseen costs such as inflated shipping price can result.
Besides, there are possible setbacks to the supply chain for instance late receiving of inventory leading to consumer dissatisfaction, loss of income and problems in the end-to-end supply chain. Problems may also arise during integration of the two Apparel and luxury companies affecting supply chain. If the hired company economize, use cheap materials or even fail to assess risk fully, the supply chain will be affected due to decreased sales and brand equity (Meeken, 2013).
in low-cost countries helps Apparel and luxury companies be more efficient in
their operations because they concentrate of core competencies and they can
produce cheaper clothes and accessories as well as satisfying consumers,
therefore, affecting supply chain positively. However, there are risks involved
such as pressuring suppliers to reduce investment capital to keep low costs.
More so, companies adopt common local standards which can ruin the brand image
and problems in the hired company can also affect the organization negatively.
Handfield, R. (2017, August 23). Needed: A New Way to Manage Risk in Low Cost Countries. Supply Chain Resource Cooperative.
K3 Software Solutions, (2017, December 8). Supply Chain Challenges in Apparel Industry and How You Can Fix Them. Fashion ERP.
Z. (2013, June 13). The Risks and Benefits of Outsourcing Supply Chain
J, Plank L, Staritz C, Glasmeier A (2015) Trade policy and regionalisms in
global clothing production networks. Camb J Reg, Econ Soc 8(3):381–402
Robinson, P. K., & Hsieh, L. (2016). Reshoring: a strategic renewal of luxury clothing supply chains. Operations Management Research, 9(3-4), 89-101.
According to Yang (2016), global development is a wider concept concerned with the level of development of a state weighed on an international scale. Reflecting on global development with China as our case study, we would consider the position in which China’s development can be placed on an international scale. On the other hand, social capital reflects on the relations which can guarantee a nation some competitive advantage over the other nations. Effectively employed social capital creates a good environment in which a nation can thrive (Fine, 2010). This essay focuses on the relationship between the communism and religion and how minorities are treated in China.
In the bid to increase the rate of development within a nation, the aspect of social capital cannot be overlooked. Besides being a core factor to establishing togetherness, social capital ensures all the components of an economy are made available. For example, in the case of China, religion offered many confrontations to the communist which makes it difficult for the leaders to rule with no ideological sanction. With social capital, the fundamental cultural will be incorporated in a nations’ development agenda that guarantee goodwill and commitment from the stakeholders (Fine, 2010).
With no doubt, democracy is the sole factor which contributes significantly to instilling cooperative civil societies and functional social capital. According to Fine (2010), democracy as the rule of the people by the people ensuring all the agenda of the community is presented for consideration during decision-making. Apparently, development is a very sensitive agenda that calls for participation of all the society members; with which a ruling government has high control over what a nation can achieve. Hence democracy comes in to harmonize and present the demands of people creating an effective civil society.
Lack of social capital offers a huge bearing on the ability of a state to develop. This aspect can be justified when a society is not oriented for the same purpose; some of the political leaders, in this case, are more self-centered other than providing the service they were destined by the citizens. Usage of patronage highly denotes that a society tends to put into power those that provide them with incentives. On the other hand, corruption kills efforts as most of the capacity to develop a nation ends up in the hands of a few individuals (Lovell, 2005).
Chinese Global Development
A state which has high development capacity is at a higher chance of establishing and maintaining better social capital. With the virtual of having a promising development direction, a nation will attract more social capital from neighboring nations which constitute significantly to the sustainable future development. Whenever a state capacity is directed towards achieving the development agenda, a greater pool of social capital will be influenced (Lovell, 2005).
In terms of global development, China is the largest united multi-national state which has about 56 different ethnic groups. Among them, 91.59% are the Han Chinese while the other remaining 55 ethnic groups comprise about 8.41% (Fifth National Population Census of 2000). 8.41% presents the minorities who live in China. With a population of about 1159.4 million, the largest ethnic group, Han Chinese is found in most of the parts of China. Nevertheless, they are mainly found in the lower and middle reaches of Yangtze River, Yellow River, and Songliao Plains (Fifth National Population Census of 2000).
In the world, generally, no single nation which can boast of establishing a very good record in relation to the issue of treating minority groups. China is not exceptional. The treatment of minority is not fairly evaluated on the basis of sociological and political standards. However, there exist policies that protect the minority from further exploitation. The minorities in China are protected under the regional autonomy to settle in multiple regions. Such regions include; Ningxia, Tibet, Xinjiang, Guangxi, and Mongolia (Guo, 2008).
According to China’s State Council, China has maintained ancient forms of religion, such as Taoism and Buddhism. However, with increasing radicalization, the country’s belief system is taking a new edge and becoming increasingly diverse. About 61% of the Chinese population comprises the people who are strict followers of Atheism, 26% are followers of Confucian Philosophies, 6% adheres to Buddhist, 2% adheres to Christianity, and about 2% follow Islamic belief. These religions, however, raised many traction with communistic policies as every branch hold a diverse view on work, religion, and political leadership.
In conclusion, global development, social capital and civil societies are a perfect combination that a nation can use to make leverage of development capacity. With an efficient social capital, a nation is at an upper hand to attain its development agenda compared to another that has no goodwill with its social capital. In regard to China, the existence of many ethnic groups has ensured a huge pool of social capital which can be attributed to its massive growth and development. Corruption and patronage can be blamed for dragging a country’s development agenda backward. Whenever political regime is not oriented towards delivering the demands of the citizens, ethnicity will be bound to occur since there is no uniting factor to bring the people together for a common goal and increase Global Development ambitions.
Fifth National Population Census (2000) China’s Population Demography and Ethnic Groups.
Fine, B. (2010). Global Development China, Social Capital versus Social History. In Theories of Social Capital: Researchers Behaving Badly (pp. 90-109) Pluto Books.
Guo, X. (2008) State and Ethnicity in China’s Southwest and Global Development in China. Leiden: Brill.
Lovell, D. (2005) Corruption as a Transitional Phenomenon: Understanding Endemic Corruption in the Post-Communist States. In Haller D. & Shore C. (Eds.), Corruption: Anthropological Perspectives (pp. 65-82) Pluto Books.
Yang, F. (2016) “From Made in China to Create in China”: Nation Branding and the Global-National Imaginary. In Faked in China: Nation Branding, Counterfeit Culture, and Globalization (pp. 31-63) Indiana University Press.
MBA Dissertation – Chinese Business Culture – This dissertation aspires to contribute to an understanding of the nature and pace of change in China’s business culture and the implications of such change for the country’s business environment and global development. China’s emergence as a nascent economic superpower is the subject of increasing attention and focus among contemporary observers of international business and international relations. The effects of China’s transition from communism to capitalism have become increasingly pervasive and far-reaching. China’s transformation has, however, been accompanied by an underlying tension between on the one hand the need to embrace foreign concepts and practices in the interest of economic development and on the other a wariness of the outside world, which is attributable to a distinctive cultural heritage and a legacy of foreign exploitation and subsequent isolationism in China’s modern history. This dialectic of modernity and tradition raises interesting questions about China from a business culture perspective. The search for an optimal balance between continuity and change is an ongoing challenge, which every society faces.
Dissertation Comparative Analysis Into India and China as I.T. Outsourcing Destinations – Globalization of economies over the past decade has given rise to intense global competition and has compelled business managers to improve their quality and to reduce the cycle time in introducing new products and services. Improvement in the field of telecommunication and data transmission has fostered the growth of the phenomenon of Outsourcing in which corporations are seen to outsource their non core processes to low wage economies like India and China. This is done on a very large scale by global corporations, not only to take advantage of the labor arbitrage but also to enable them to concentrate on their core processes, thereby resulting in reduced lead-time in the introduction of new products. The main research problem is to compare the two countries with an aim to finding out which of these economies is better poised to seize an increasing share in the global IT-ITES operations while taking global development into account.
Investigation into the Real Estate Industry in China – Real Estate Industry (REI) is pivotal to China’s economic development which relates to people benefit, entrepreneur development and country safe. REI relates with many industries and develops into one of major industry. Development of China REI on the one hand lacks of funds and exists on the need for foreign capital; on the other hand, the existence of international hot money ensures adequate space for foreign capital to stay into. With China’s accession to WTO, it gradually increases the degree of opening up in REI, its opportunities and challenges both exist. REI is considered as China’s last violent industry in many institutions’ and individuals’ eyes. Therefore, foreign investors have accelerated efforts to develop China REI. However, the inflow of foreign capital is a double-edged sword and has both positive and negative effects existing. To REI, many research in foreign investment has been done, the research of foreign investment in Real Estate has been rarely done. REI has become more and more important in China, so it is necessary to make a research on this subject.
International Business Entry Mode in China – Today economic globalization is far more intensive, rapid and to develop the domestic economy through utilization of foreign capital flow is becoming a country’s common objective. Foreign investment becomes an essential part for the healthy growth of the host country’s economy, but the attitudes and the policies taken by the host countries especially the developing countries are varying. Therefore it is important to learn and know the attitudes and policies of the host countries for foreign firms before making investment. In addition, the country’s culture and market environment greatly affect different types of entry modes. This dissertation explored the characters of different types of entry modes and seeking through various aspects that affect the decision making on choosing the right form of entry mode in China. Now China becomes the largest country in attracting foreign capitals among developing countries. A comprehensive examination and adjustment of China’s strategies in utilization of foreign capitals has been an important topic that cannot be ignored.
External Finance and Firm Performance : Evidence From China – The important role that financial institutions play in promoting firm growth and firm performance has been demonstrated by substantial empirical research based on both cross-country and within-country studies. However, firms have achieved considerable success in many developing economies where the financial sector is far from established. The experience of China’s economic development seems to present a counter-example to the literature on financial institutions and development. Despite inadequacies in the country’s formal financial institutions such as banks and stock markets, China has been one of the fastest growing economies in the world. This appears to suggest that alternative channels of finance have been a substitute for formal financial systems and supported the rapid development of China’s firms. One widely suggested mechanism in the literature is that firms in developing economies such as China rely to a large degree on alternative external financing, such as trade credit and foreign capital.
What challenges Textile structure of Shandong Province Face in the Developmental process of Industries? A Study of Textile Industries in Shandong Province China? – In the modern era of global development, China’s influence in the world economy was minimal until the late 1980s. At that time, economic reforms begun after 1978 began to generate significant and steady growth in investment, consumption and standards of living. China now participates extensively in the world market and private sector companies play a major role in the economy. Since 1978, hundreds of millions have been lifted out of poverty, according to China’s official statistics; the poverty rate fell from 53% in 1985 to 2.5% in 2010. However, 10.8% of people still live on less than $1 a day (PPP-adjusted).The infant mortality rate fell 39.5% between 1995 and 2010, and maternal mortality by 41.1%.Access to telephones during the period rose more than 94-fold, to 57.1%. China has generally implemented reforms in a gradualist fashion. As its role in world has steadily grown, its importance to the international has also increased apace. China’s foreign trade has grown faster than its GDP for the past 25 years. China’s growth come both on huge state investment in infrastructure and heavy industry and from private sector expansion in light industry instead of just exports, whose role in the economy appears to have been significantly overestimated. In 2008 thousands of private companies closed down and the government announced plans to expand the public sector to take up the slack caused by the global in the capitalist world. Shandong Province as an important component of China’s textile industry, global development, its development process and challenges has the value of research and study.
Analysis into the Consumer Behaviour Characteristics of the Chinese Automobile Industry – China is the biggest consumer and producer of automobiles in the world today. In spite of this, there has not been enough research performed in the field of Chinese consumer behaviour within automobiles industry in China. This particular study investigates the significance of country image and country of origin in Chinese consumer purchase intentions and evaluations of automobiles. The respondents were located in different cities of China who were surveyed. Conjoint analysis had been used for deriving the significance of country of origin compared to other attributes in making preference judgments whereas multiple regressions were used for deriving the significance of country image in the purchase intentions. It was seen that country of origin is as significant as brand name and more significant than safety, reliability and price in making product evaluations. It was also seen that workmanship, reliability and superior prestige were the most significant reasons for the purchase preferences of the Chinese respondents for the foreign automobiles compared to the Chinese brands.
An Evaluation of the Value of Corporate Social Responsibility Strategy at Qatar Airways on Consumers
Title: Corporate Social Responsibility Strategy at Qatar Airways. In modern day business, CSR cannot be avoided. Companies should improve profits and make profit but at the same time abide by set rules and regulations. Today, ignoring stakeholders could result into inability to generate long term stakeholder owner value. In CSR, companies are required to maintain their friendly relations with their consumers and other stakeholders that they engage with. Stakeholder theory proponents hold that beyond shareholders, there are other agents who equally have an interest in actions of the corporation.
The main goal of this study was to evaluate the value of corporate social responsibility strategy at Qatar Airways on consumers. Qatar airways have made significant strides by engineering decent CSR policies that have been instrumental in boosting the global image and overall profitability of the organization. This study has managed to prove that CSR has an effect on the image and profitability of a business. The study has managed to show that CSR proves to the customers that the organization minds the environment and the welfare of the society. Consequently, boosted not only the firm’s image, but also is an economic return.
The main goal of this dissertation was to evaluate the value of corporate social responsibility strategy at Qatar Airways on consumers. Based on the above research questions and stated goal, this study sought to accomplish the following key objectives:
To review the current literature on the value of social corporate responsibility on Qatar Airways consumers
To understand and analyze the current situation at Qatar Airways.
To evaluate the effectiveness of the current CSR strategy at Qatar Airways
To make conclusions and recommendations for the improvement of the current social CSR strategy at Qatar Airways
CSR Dissertation Contents
1 – Introduction
Significance of the study
Overview of Dissertation
Definition of Terms
2 – Literature Review
CSR Proponents Summary
Summary of arguments against CSR
Importance of CSR
New CSR Trends
The Case of CSR at Qatar Airways
3 – Research Methodology
Mixed Methods Research
The philosophy behind mixed methods research
Sample of Study
Data Collection Tools
Quantitative Data Collection
Limitations of the data collection tools
4 – Finding and Analysis
5 – Recommendations and Conclusions
Limitations of the Study
I hope you enjoyed reading this post on Corporate Social Responsibility Strategy at Qatar Airways. There are many other titles available in the Business Management and MBA dissertation collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
Business Is the Art of Predicting the Future and Getting Benefit from It
“The art of predicting the future and getting benefit from it” in business can be narrowed down to one term which is business forecasting. Business forecasting is the backbone of a successful business in every business venture. According to different scholars, the management of business should always make predictions based on overall running of the business, sales and finance handling (Hailey 2007).
Business Forecasting is described as the art and method that can be used by the business owner or shareholders to make a prediction of future business activities basing it on the accuracy of your data. The information obtained can be used in the determination of future trends in finance performance, sales performance and also customer behavior. Most businesses need business forecasting, and usually, they are done on a quarterly basis, but some can prefer forecasts made on a monthly basis (Evans 2009).
Types of Business Future Predictions (Forecasts)
General business outlook. Each and every business needs a forecast to is undertaken. This is mainly to foresee the likely changes that might occur shortly. There are certain conditions that are always present in a community that a certain business operates. Some examples are; controls, population, fiscal policy, political conditions, and the national income. Due to the presence of these factors, it is necessary to make future predictions of the business (Hailey 2007).
Sales forecast. The sales department is a major determinant of success in a company. Due to this reason, sales forecast should be carried out with precaution and due care to gain business success. In every business, sales forecasting is considered as the to notch factor in planning and a major aspect to consider in an organizational setting. Plans and policies made by the business to maximize their profits are obtained from expected sales so whether sales forecast is carried out annually or yearly; it is the main factor to future business plans.
Capital forecast. Every business in operation must have financial plans. Capital should be a factor to be determined to meet present and future needs of business. Forecast based on business capital requirements is a necessity and is considered as the primary step in every organization. Accurate forecasts greatly help an organization to employ capital fully and get optimum returns from their investments (Morlidge 2010).
Major Merits of Future Business Predictions (Forecasts)
Promoting a new business in the market. Making future predictions is one vital factor that has a huge contribution when it comes to setting up of a new business. This is because starting a new business is not as easy as it is perceived by most people because business is subject to risks and uncertainties. By carrying out forecasting, the business promoter finds out if the probability of the business thriving and if the business has high competition. After making these predictions, the business promoter assembled all the necessary resources and based on the forecasting made; the business is subject to success or failure (Morlidge 2010).
Formulation of a plan. Proper business forecasting plays a major role in business planning. Major business plans require proper forecasting in business thus making it an essential aspect in consideration. Therefore, as a business person, it is always important no note that adequate planning, whether long-term or short-term highly depends on forecasting.
Estimation of financial requirements. Estimation of business finances is a major business concern because in running a business, capital is vital. Business finances can be characterized by cash used to start the business, the money stored in the bank and cash used to run the day to day operations of the business. The presence of working and fixed capital is based on sound financial forecasting.
The viability of decisions made by management. Correct management decisions highly depend on the accuracy of forecasts made. As described by various scholars, the administration is a decision-making process, and management has the responsibility of making decisions which are uncertain. In the running of business whether small or large, certain changes might occur, e.g. personnel changes and unforeseen contingencies. Decision making by management is a process that goes on throughout the life of business (Evans 2009). Therefore, forecasting is relied upon in matters of production planning and resource allocation.
Business success. Proper forecasting helps the procurement department of the business to procure the necessary and necessary raw materials based on the business needs and future needs. The accuracy of sales forecasting is essential in making budgets. When a business fails to make accurate sales forecasts, it becomes difficult for the business and management to figure out how much production should be done (Hailey 2007).
As discussed in this paper, prediction of future is a vital step that every business has to undergo. Through future prediction, business is assured to thrive and reach its set limits. Many advantages have been realized by businesses which have taken the step of making good and proper business forecasts. On the other hand, lack of prospects might lead to a drastic failure of business. All the discussed merits are some out of the may many benefits of making future predictions of business.
Evans, Michael K. Practical Business Forecasting. New Jersey: John Wiley & Sons, 2009.
Hailey, Linda. Your Business, Your Future: How to Predict and Harness Growth. Crows Nest, New South Wales: Allen & Unwin, 2007.
Morlidge, Steve. Future Ready: How to Master Business Forecasting. New Jersey: Wiley, 2010.
I hope you enjoyed reading this post on Business Forecasting and Future Predictions. There are many other titles available in the business management dissertation and MBA dissertationcollections that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
In my point of view every debate has to sides, and “what born an entrepreneur” but according to the arguments from previous many decades neither side capable to finally prove their case. According to many people entrepreneur must possess personality traits like vision, drive and passion that are inborn and cannot be taught. Others discuss that skills of operating a business, motivating a people and evaluating opportunities are easily passed on to excited or eager students to be entrepreneurs. The fact is that both types of arguments are right and it is time for compromise, “entrepreneurs are born and can be trained”. Some people immediately start a business due to their inherent entrepreneur qualities, others will have trained and studied hard and long before doing so, and both enjoy success.
The need to comprehend entrepreneurship has been gained a great importance to get success in corporate business (Dess et.all,2003). Entrepreneurs pursue and identify solutions among problems, opportunities among challenges and possibilities among needs (Byers, Dorf, and Nelson, 2001). The entrepreneur is an imaginative, bold deviator from commenced business practices and methods who regularly tries the opportunity to introduce new technologies, products, arrangements and processes in the entire world. Successful entrepreneur must have the basic internal capabilities to cope with challenges that are aroused during a startup. The most vital personal characteristics of entrepreneurs are reasonable intelligence, optimistic disposition, good health, perseverance, lengthy attention span and love of people.
Entrepreneurship has critical importance with respect to change in entire aspects of society. It empowers individuals to attempt opportunities to resolve insurmountable problems and issues. From previous century, the role of entrepreneurs have been increased in the creation of enterprises that lead to improved productivity, job creation, higher quality of life and increased prosperity. Now it is contributing to solutions of society’s huge challenges like environment, energy, health, education and security. They use technology and innovation to foster activity and positive impact in entire facets of life. The capable and successful entrepreneur learns to select, identify, describe and communicate the essence of opportunity that has a great potential or role to become a successful venture. The entrepreneur is capable to explain the potential contributions of a venture and develop the business design that leads to sustainability and competitive advantage (Byers, Dorf, and Nelson, 2001).
Entrepreneurs born or made:The initial concept is that entrepreneurs are born and also they can be trained. Now I want to explain my views with the arguments of various researchers and scholars. Various researchers and scholars have various views about the current topic but all has emphasized the importance of entrepreneurship. According to author entrepreneurs are born and cannot be made or trained. They differentiated on the basis of insatiable desire for an inherent love and success of entire things entrepreneurial. They have built in qualities for developing long lasting business by dealing with various risks, challenges and hazardous issues. They have strong positive behavior toward initiation of new things or innovations (Ericksen, 2002). Ericksen had strong hard views regarding the current topic. In 2001, three authors gave contrast views regarding entrepreneurs. They said entrepreneurs can be trained. According to author attitude of entrepreneur impacts the initial success of venture and the same attitude require to show with employees of organization to continue the power of entrepreneur that develops competitive advantage. Authors say “you can hire attitude, and everything can be trained to get a success(Byers, Dorf, and Nelson, 2001).
Professor of psychology, Alan Jacobowitz did interview over 500 entrepreneurs and concluded that entrepreneurs are innate and cannot be trained. He tells the common personality traits of entrepreneurs like independence, restlessness, high self-confidence and tendency to be a loner. Professor was adopted static approach and many other researchers were also support the view of professor (McFadzean, O’Loughlin, and Shaw, 2005). Further authors said that tells the motivation, desires, ability to project their schemes or ideas into future, turn their ideas into reality and backing their judgments into persistence and action are some basis and unique qualities of entrepreneurs. They are also opportunity seekers. There is no any difficulty to find the entrepreneurs because two are not the same so it is easy to point out who is entrepreneur. Some entrepreneurs are introverts and some are extroverts, some have family background of entrepreneurship while other do not have, some start from wealth and other begins with poverty, some are old and some are young.
The question regarding “entrepreneurs are born no can be trained” is main point of focus for many researchers and academic scholars. Regarding this issue many scholars have divergent views. Frakes, author of instinct believe that entrepreneurs are born and DNA of entrepreneurs, their genetics and personality play a pivotal role in whether they become a good entrepreneur or not. To become a successful entrepreneurs five big personality traits are required that include emotional stability, extraversion, conscientiousness, agreeableness and openness to change. These traits cannot be created through training. But in the contrary, Professor Neal Thornberry said that entrepreneurs are not only born but can be trained to become successful through creating and learning the specific inherits characteristics. Thornberry also give the examples of Fred smith (founder of Fedral Express) and Herb Kelleher (southwest Airlines co-founder) and said both entrepreneurs got success after long term commitment and many years of diligent preparation (Thornberry, 2003).
Herb Kelleher replied in his interview taken by Thornberry on the issue of whether entrepreneurs are born or not. He said six inborn traits cannot be trained into entrepreneurs include good health, reasonable intelligence, lengthy attention, optimistic disposition, love of people and perseverance. These six traits further classified into three basic points of health, attitude and intelligence. Herb gave the more importance to attitude from all personal characteristics and it only the one that cannot be trained or made. He reflects the right attitude to be crucial and it cannot be trained. On the other hand, several teachable capabilities that can increase chances of success like ability to set goals and listening (Thornberry, 2003).
Herb tell that other than innate skills there are many skills that can be learnt and taught, that better contribute for entrepreneur’s success. These skills include broad education and knowledge, capability to play enthusiastic advocate, listening skills, capability to focus on goals and set priorities, capability to screen out the vital ideas and things from unimportant and pleasant skepticism. According to herb, lucid vision and ability to communicate it deliberately to others are most vital skills and capabilities required by successful entrepreneurs. Therefore, entrepreneurs are trained and born, and need a blend of these two to become successful. The entrepreneur’s natural born characteristics are foundations or building blocks on which they can build upon (Thornberry, 2003). Modern entrepreneurs require range of various skills like strong ability to communicate in complex and abstract situations effectively (Ericksen, 2002).
From previous two decades many efforts has been made to establish programs to teach ambitious and eager people to realize their entrepreneur potential and start their own business effectively. This is a good notion with a long term goal. But some proficiency like find funding sources or developing a business plan can be learned or taught while basic profile of entrepreneur is imbedded in the structure of personality. There are two fundamental needs that recognized the importance of entrepreneur, they are recognition and control. Most entrepreneurs starts their own businesses because cannot do business in others control. They like to run independent business where they can show their extra ordinary efforts and abilities to gain more and more profits and productivity. They are self-sufficient and self-confident people who have courage to take initiation and deal haphazard or hazardous issues effectively for the best interest of their enterprise (Laser, 2007).
It has been long standing discussed all over the world whether entrepreneurs are born or is it mandatory for them to study and work hard to become entrepreneurs. It has been found that some people became good entrepreneurs with a single amount so it was their luck to gain the potential position. There are some characteristic which is necessary for entrepreneurs to adopt them and become a good entrepreneurs (McCubbrey, 2009): The main characteristics of entrepreneurs are depicted below:
Vision: entrepreneur must able to communicate and create a lucid vision and easily comprehend able mission for the new venture in order to launch a novel business successfully. This can be accomplished through great and extra ordinary qualities of leadership. It is necessary to extra ordinary influence people to accomplish vision and mission of enterprise. Leadership qualities have great importance for entrepreneurs. Successful entrepreneurs are good leaders. Leadership is the ability to influence other to accomplish organizational goals (Robbins and Coulter, 2007). Leaders give the clear direction to their followers toward the goals. They give the motivation to their followers so that followers can ready to accomplish the extra and targeted tasks for the best completion of organizational goals and objectives. Further, vision tells the entrepreneurs what they want to become and mission tells that what is their business or what they want to accomplish in the larger business environment.
Creativity: It refers to the ability to inject uniqueness and imagination into a novel business venture. It also the ability of entrepreneur to create new products, ideas, processes, techniques to become a good and successful entrepreneur in the world. It enables the entrepreneur to offer new venture in the market with novel strategies to cope with stronger competition. Further, creativity leads to enhance the profitability of enterprise through offering and developing novel products or ideas. This profitability and productivity leads to get the competitive advantage in the market to maintain the position of sustainable market leadership. Leaders or entrepreneurs shape the culture of organization through their creative abilities. Therefore, creative mind entrepreneurs cannot get success for their enterprises.
Focus: It is the ability of entrepreneur to sustain the vision of enterprise with steadfast diligence and passion. So it is necessary for entrepreneurs to emphasis on their vision and mission to maintain the sustainable competitive advantage of their enterprises. It is easy for entrepreneurs to get diverted especially in case to accomplish their original vision. Paradoxically, many entrepreneurs get bored easily. Therefore, it is the need of current competitive era; entrepreneurs should emphasis on their goals and remain focus on them for long term basis instead the completion of single task. Passion: Desire to get success under their own initiation for business venture is also the quality of every entrepreneur. It is mandatory for leaders to maintain extra ordinary enthusiasm and passion to accomplish their goals and objectives. Leaders have the ability to create thrill and passion in their followers to accomplish the organizational goals with great zeal and enthusiasm. In this regard motivation has great role. Leaders give motivation to their followers which create the sense of accomplishment in followers toward their goals. Overall motivation has positive impact throughout organizational setting.
Drive: Entrepreneurs have an intrinsic energy to attain the goals of business even in the situation of adversity. They work through showing extra ordinary drive in the larger competitive environment to maintain the sustainability of their enterprises. Strong drive to get success enables the entrepreneurs to cope with unique problems and situations which ultimately support for organizational success. Perseverance: It is the ability of entrepreneurs to remain faced or keep going when faced with insurmountable obstacles. This tendency of entrepreneurs shows their great commitment and zeal toward organizational goals. Opportunistic nature: Ability to see the possibilities before their occurrence or existence. It enables the entrepreneurs to take the advantage of upcoming trends or combine unrelated processes to develop an innovative business venture. This quality can lead to get competitive advantage in the market with comparative innovations related to products, ideas, processes and methods. Today there is era of global competition so it is mandatory for entrepreneurs to create the competitive advantage for their enterprises in the market with their great nature to find the new opportunities. Ability to solve problems: Successful entrepreneurs have thrives on going on exact solutions to complex or abstract problems or issues. It is very necessary ability to cope with haphazard situations.
Frugality: Ability to know about how to stretch every single dollar so that expenditures keep as low as possible. Empathy: It is the capability to put you in front of others and so able to show understanding and sensitivity of what other are communicating or wants in the beginning environment. Social Responsibility: The today’s entrepreneur’s common characteristics are caring, ethics and humanitarianism. Spirituality: It has been found that all successful entrepreneurs devote their time to develop spirituality. Positive affirmations and meditation are two basic examples of spirituality. Good Timing: Ability to identify a better market opportunity and knowledge about the optimum time to introduce a novel venture or expand existing enterprise. This quality has great importance in today’s business environment. The last characteristic entrepreneurs are luck which has great contribution in their success. In the world, luck has vital role in every field of life. If there is no luck, there is no success.
Examples of Entrepreneurs: Bill Gates, a founder of Microsoft is an innate or inborn entrepreneur of the world and also he is the richest person of the world. He became entrepreneurs in the age of 13 years by developing software. Bill Gates change world of computer. He is the most teen ager billionaire of the world.
Another example of inborn entrepreneur is Mark Zukurburg, a founder of Facebook. He also got the position of billionaire from the age of 20 as Bill Gates. Zukerburg change the world of internet and provide a platform for people through largest social media.
Owner of Chick N’ Friends Inc., Rhodney Lloyd, done MBS from U.C. Berkeley. It was initial step for him to become a trained entrepreneur. After education he started his advertising agency in Oakland, Calif. He got entrepreneurships after got training.
Entrepreneur’s challenges: The problems and needs of entire population are enormous. From organizational inadequacies to corruption, environmental sustainability to security, transportation to communication and overloaded information to disease, the opportunities for people to develop a positive differential impact are vast. But entrepreneurs are persons who pursue and identify tremendous possibilities among needs, viable solutions among problems, and creative opportunities among challenges (Byers, Dorf, and Nelson, 2001). It is the quality of entrepreneurs to better cope with potential challenges for the long term success of their enterprises.
In concussion, entrepreneurs struggle to show a difference in entire world and support to its wellbeing. They mobilize resources, identify opportunities, and relentlessly committed on their visions and missions. Further, it is concluded from above discussion that good and successful entrepreneurs have both composition, innate qualities of entrepreneurship that help them to drive the any process to success, also they can learned these qualities through experience and training. For this reason it is concluded that “entrepreneurs are born and can be trained”. Many entrepreneurs have God gifted qualities to become good entrepreneurs while others enhance their qualities and skills through various types of learning and training. To develop experimental knowledge in entrepreneurs has great importance as incremental process during the entire working life. It means that tries to stimulate “actual life” experience via various modes of training and education are have a strong impact or influence on the creation or development of entrepreneurs (Higgins and Elliott, 2011)
Further, to learn the qualities of successful entrepreneur it is necessary for them to have good leadership qualities. These qualities support the entrepreneurs to accomplish the various difficult tasks and mission of enterprise. It is a challenge for entrepreneur to respond various difficult tasks and remain committed to undertake the needed enterprise. Therefore, I strongly recommended that training and formal education for entrepreneurs create positive differential impact in the field of entrepreneurship.
Byers, T. H., Dorf, R. C., and Nelson, A. J. (2001), “Technology Ventures from Idea to Enterprise”, New York: The McGraw-Hill Companies, Inc.
Dess, G. G., Ireland, R. D., Zahra, S. A., Floyd, S. W., Janney, J. J., and Lane, P. J. (2003), “Emerging issues in corporate entrepreneurship”, Journal of Management, 29(3), pp. 351-378.
Ericksen, G. K. (2002), “The Ernst and Young Entrepreneur of the Year Award Insights from the Winners’ Circle”, the Earnest and Young,
Higgins, D., and Elliott, C. (2011), “Learning to make sense: what works in entrepreneurial education?”, Journal of European Industrial Training, 35(4), pp.345-367
Laser, S. A. (2007), “Are Entrepreneurs Made or Born?”, Stephen A. Laser Associates 200 South Wacker Drive,
McCubbrey, D. J. (2009), “Business Fundamentals”, Zurich, Switzerland: The Global Text,
McFadzean, E., O’Loughlin, A., and Shaw, E. (2005), “Corporate entrepreneurship and innovation part 1: the missing link”, European Journal of Innovation Management, 8(3), pp.350-372
Robbins, S., and Coulter, M. (2007), “Principles of Management”, 9th edition, Prentice Hall Inc,
Thornberry, N. E. (2003), “Corporate entrepreneurship: teaching managers to be entrepreneurs”, Journal of Management Development, 22(4), pp.329-344
I hope you enjoyed reading this post on Entrepreneurs and whether they are Born and Not Nurtured. There are many other titles available in the business management and MBA Dissertation Collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.