The entrepreneurial spirit is alive and well today. Many people consider entrepreneurship to be a necessary component of the human condition. It promotes discovery and innovation, as well as invention. By replacing older forms of business structure with newer and better ones, entrepreneurs engage in the constructive destruction of outdated economic practices, technological systems, and business management or production techniques.
The entrepreneurial spirit is perhaps best recognized by its namesake – entrepreneur, Joseph Schumpeter. A famous British essayist and economist, Schumpeter claimed that all progress is the result of a transformation of forces within society. These forces, he felt, are driven by the “demand-supply” dynamic. In his essay, “The Problem of Political Economy”, which was published in 1892, Schumpeter suggested that by viewing business problems as the result of demand and supply considerations, it would be much easier to understand entrepreneurship, as well as the changes that occurred within it.
There are four key takeaways from Schumpeter’s work that entrepreneurs can use to improve their businesses. First, as Schumpeter claimed, the problems that entrepreneurs face are the result of “a progressive shift in the standard of living.” Specifically, entrepreneurs have become much richer due to technological improvements, better equipment, and the ability to operate from anywhere using just a laptop. Second, as Schumpeter also claimed, entrepreneurs have become much more efficient at managing their resources because of the advancements in management software and the internet. Third, through effective organization, managers have been able to increase productivity and profit margins. Finally, with advanced technology, the opportunities for creativity have become even more limitless.
The need for creativity in a business environment is particularly strong in an economy that has seen a steady decline in overall employment. The creation of innovative products, services, and business strategies are a result of this concern. Entrepreneurs must therefore learn how to think creatively in order to develop new ideas or improve upon existing ones. The first step in doing this is to examine one’s own business in order to determine where creative solutions lie.
A small business venture requires entrepreneurs to think creatively about marketing strategies. It also requires them to analyze the marketing trends currently happening in order to plan effective campaigns. Next, an entrepreneur should examine whether their small business has what it takes to attract and retain customers. Lastly, entrepreneurs should examine themselves and what they believe their unique qualities are so that they can attract others to their business. In this regard, the fourth key term to examine is that of “personality.”
A business plan is essential to the success of any venture. However, many entrepreneurs fail to produce adequate business plans, which is why “business failure” is such a popular term in society today. However, even though it may seem unavoidable, a good business plan is still worth having. Having a business plan allows for realistic planning and development of strategies. Furthermore, it provides the necessary information for investors or other persons interested in investing in your company.
Finally, entrepreneurs must be prepared for other potential unexpected crisis that can occur in their business. The “crisis” referred to here is “downtime,” which basically is the difference between regular business hours and off-hours hours. In order for entrepreneurs to be prepared for a potential downtime period, it is important for them to create backup systems in case their main computer system fails. In addition, they must be prepared to adjust their working hours to accommodate any potential disruptions caused by a natural disaster, a recession, or any other unforeseen event. In order to properly address potential emergencies, entrepreneurs must be well-versed in emergency procedures and practice emergency management on a regular basis.
Although economic experts have warned against expecting too much from the economy, entrepreneurs may not want to wait for the government to solve problems before they apply the above mentioned methods of business management. In the meantime, they should develop new methods to better manage their businesses in an efficient manner. As the saying goes, “if you think you can do it, then do it.” So, should the small businesses in America. Start preparing now, as the recession might not be far behind.