Entrepreneurial Behavior Analysis

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INTRODUCTION:

“Entrepreneur is the person who comes up with a business proposal to start a venture taking into consideration the constraints like human resources, cost, demand after studying the whole market and identifying the gap and understanding his own skills and competencies. The whole process altogether is called Entrepreneurship
Any idea that have to be commercialized into a business have to go through a series of steps before it could go live. The person first has to come up with a business plan. A B-Plan is a written document of one’s business idea and what he is planned to do and how to implement or go forward with the same. This business plan will be written after understanding one’s own competencies and about the industry he/she
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(2008). Why are some entrepreneurs more innovative than others? Small Business Economics, 21-37.

Entrepreneurs as a whole either come up with innovative ideas or they imitate what is already present. Here in this article the authors takes a few factors for analysis like the educational background, unemployment and high degree of confidence to check whether these factors are related to a person becoming an entrepreneur with innovative ideas. The paper is on a conceptual approach on judgment and decision making. The entrepreneurial behavior is analyzed by making a person answer to the below two questions
• Given an alternative why some entrepreneurs do chose one option over the other
• From where do these individual decisions come from the first place
Any entrepreneur should be concerned only about the competitive factors that directly affect him/her based on the decisions made. Author has talked about the Imitative nascent entrepreneurs who will start a business from a known population whose skills, routines and competencies vary very minimally when comparing others. Whereas innovative nascent entrepreneurs are ones who will start an organization whose functions and operations are drastically vary when comparing other organizations. These innovators have to have a good amount of self confidence and courage to do such an activity as there is a lot of uncertainty related. Imitative entrepreneurs just have to worry about the counter reactions of the competitors.
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Self confidence and self efficacy is the one that drives every entrepreneur to success as they have to believe in what they do even though they encounter few failures in the beginning. The decisions that are based on little information require high level of self confidence as is the situation for any entrepreneur. Overconfidence is difficult for difficult task and in case of low predictable ones. When comparing the two types of entrepreneur the innovative entrepreneur should have a higher level of self confidence because of the decisions they take and the situation they are in. For identifying the business opportunities the entrepreneurs should access the information that is available and think of a plan to capitalize on that opportunity. For an business idea which is new to the market higher level of creativity is not required but for an idea which is almost existing in the industry a higher level of creativity is necessary to showcase the product in a different way when comparing the competitors or existing players. Individual creativity is not the only skill necessary for innovative business idea because lack of information may lead to invent things that are already available. To commercialize on an idea funds are more important but no venture capitalist or investor would be interested if he doesn’t get benefitted and we have to show
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