Entrepreneurship: Risk-Taking, Creativity and Innovation - Essay Sample

Paper Type:  Essay
Pages:  8
Wordcount:  1932 Words
Date:  2023-03-07


Entrepreneurship is a broad concept that has been defined by different scholars, and no one definition has been derived for the term entrepreneurship. Schumpeter, an economist of 1931, came up with a description trying to argue that entrepreneurship does not only involve risk-taking because in economics, but it is also risk-taking. Therefore Schumpeter claimed that entrepreneurship requires creativity and innovation. Whereby one can reorganize an organization from within that is from a loss-making one to a profit-making one, identifying new products that have never existed before, identifying new markets, identifying new sources of raw materials, among others. Therefore, entrepreneurship entails more innovation and creativity for one to be successful (Karimi et al. 2016).

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

There are various stages involved in the Entrepreneurial process that is; idea generation or opportunity identification and it can be done through different dimensions such as coping others by doing value addition, reading from various sources such as newspapers and journals, speaking to successful entrepreneurs and getting involved in the community work where one can be able to identify a gap and exploit it. After idea generation, it is essential to determine the resources needed to operate the opportunity, then draft a business plan then finally implement the business. All the stages are equally important because it makes one understand better the business field or type he intends to exploit. They are also essential because they aid in the growth of a business. Coming up with business opportunities, it does not add more value. To obtain more advantages, one needs to choose the possibilities and make a step to exploit them (Ferreras-Garcia et al. 2019).

How then can one exploit a business opportunity after identifying a gap in a given area or field? First, a SWOT ANALYSIS (strengths, weakness, opportunities, and threats) to enable one to get favorable options. The analysis can then be used to determine if the opportunity is viable and is worth pursuing. While assessing an opportunity, an individual can decide to exploit it, ignore it, or share it. It is advisable to avoid casting the nets too widely when looking for opportunities. Instead, one needs to use a targeted approach to save time and the resources for the choices with a more considerable potential for return.

Strategies for Opportunity Exploitation

There are various strategies for the exploitation of opportunities. For instance one can adapt the use of new technologies or use the existing ones, explore the business models which are unique, use the insights of consumers to improve the new services or update the latest products, raise the loyalty of customers, attract new prospects by extending the customer base among others (Davidsson 2017).

Creating a Unique Competitive Position for the Venture

Monitoring the competitors closely- identifying areas that competitors do not operate in and find out their customers because they are the potential customers for your business as well. One should also check on the product range or services that the competitors are offering and examine their pricing and marketing strategies. Thus a poor performance of the competitors can provide an opportunity for one's products or services. Consider the need for a new product type or service in the market- for instance, new laws can result in new opportunities for business advisers or consultants. Events such as acquisition and mergers may open up opportunities for all kinds of trades and services (Davidsson 2017).

Newmarket exploration- forecasting beyond a market that is established can create new business opportunities. Market research is critical in that one can diversify the sales channels to reach out to customers. Working in partnership with other enterprises that provide complementary products or services or target the same group of customers be considered. It helps one to expand on the market reach and pool resources by negotiating with the suppliers better deals.

Discovering other approaches to increase sales volume and profitability ratio requires one to manage business opportunities he decides to pursue properly. More care should be taken to ensure that the business is not developed beyond one's means. A clear plan for expansion and the necessary resources, as well as the technologies and capabilities to make more opportunities, is required. Since preserving too much of the new venture without the inability to deliver on, it could impose more risk on the entrepreneur (Guo & Cai 2017).

Cosmetic Industry Venture

Therefore, as entrepreneurs, we choose to venture into the cosmetic industry by providing the soothing cream for the dry skin prepared with the organic lavender and chamomile oil blends, which are pressed cold. The raw materials used are handpicked and slowly processed by the natural method without adding any chemical. The primary significance of investing in the cosmetic industry is because there is a market for the product which covers all segments of customers. The Hydraforte hand and body cream are also useful for children, not only adults, because no chemical has been added to its composition that can make it sensitive to the skin.

The enterprise intends to provide a soothing product for any dry skin, such as psoriasis or eczema, as well as sensitive skin. Due to the increased rate of ultraviolet Rays from the sun, many individuals suffer from acne and skin dryness as a result, and we saw that as the opportunity to come up with a product that will help in solving the problem. The size of the increase and demand growth of the product will be substantial because the industries focus much on the product value addition. Value addition is how the industry gives enhancement to its products or services before giving it to the customers. Value addition can be an extra feature that is special to a product or service.

Since the cosmetic industry has a lot of competitors to compete favorably in the market, the Harmony Garden intends to add more value to the final product, which is Hydraforte hand and body cream to provide the potential customers with the product features that give it more perception of value. The final product, which is Hydraforte hand and body cream, will be priced depending on the amount which has been added to it that is the price that the customers will be willing to pay based on their value perception.

The business will succeed because more research has been done, and the best idea is to come up with a pure cream that has no additives, and more customers will prefer using it because it also suits all kinds of skin. The consumers are looking forward to getting the holistic and the healing benefits from the skincare products that the industry intends to offer. The cosmetic industry shall create awareness of natural products. The consumers are getting informed with time regarding the benefits of the Hydraforte hand and body cream.

The cream is intended to protect the skin from the damaging Ray's of the sun and moisturizing the skin, thus reducing the effects of aging. The product also seeks to provide the user with the relief from the hectic 24/7 lifestyle. In the past years, the cosmetics industry Dynamics favored huge businesses because they can offer to fund the major marketing campaigns and advertisements. Nowadays, most of the industries embrace the underground marketing efforts, which are more efficient in obtaining the credibility with the segment of a market for an industry like the one we are venturing into.

The sustainability of the business will depend on the rate of stock turnover. Inventory turnover is the total number of times an inventory is sold within a given time, especially one year. In a situation whereby there is low turnover, it may indicate that there is overstocking, there are issues with the product or efforts of marketing, or the goods dealing with are expired. Therefore, the products will not sell as intended.

On the other hand, when there is high turnover, it may indicate that the stock is not adequate, and the potential loss of sales is seen. The stock shortage may be seen when the demand is underestimated, or the product has gone viral, making deals to go off the charts. Creativity and innovation are critical factors for the success of any entrepreneurial venture. The cosmetic industry, which will be involved in manufacturing, developing, designing, and marketing and selling of the skincare products, needs to have an innovative plan of production to ensure that Hydraforte hand and body cream are manufactured using limited resources with limited time.

The production plan that can be embraced for the product consist of the components, which are the; materials bill, how the product will be produced, raw materials availability in the stock, raw materials cost, and the lead time and prices of suppliers. Therefore it will be the duty of workers or machines to merge all the components as mentioned above to come up with a one quality product. The workers and workstation as the other factor of the production plan should encompass; information of the machine about other works, productivity and capacity, and cost related to workers or devices on the workstation and availability (Laalo & Heinonen 2016). All these will enable one to be able to account for the raw materials used, time taken, and the quality of the product produced.

In the new advanced market place, sequencing and scheduling of the product have become highly sophisticated. The model of production, which was embraced traditionally that was coming up with the products which are repeated and are identical to the scale; the current suppliers need to come up with a custom of a product for all segment of customers. When the Harmony Garden needs to put in plan some group of orders, it is critical to have a system that will put the activities in the required sequence automatically before recording them. Thus, the industry will finally execute the production in the manner which is listed in the series (Shamsudeen, Keat & Hassan 2017). We will embrace the sequencing and scheduling process in the industry to provide the best of the expectations of the customers. The Harmony Garden will need to deal with the obstacles on the shop floor for effective communication, and they included:

  • Putting accurate dates of sales order delivery as per the simulated transition of the schedule.
  • The functions and characteristics will be gathered together at a specified time.
  • Thus the sequence and scheduling of the production will not be the burden but a catalyst that speeds up the creation of the Hydraforte hand and body cream for sales.
  • The Pricing Strategy of Hydraforte Hand and Body Cream.

The product price will be made considering the cost incurred on the ingredients used in blending in process or damage incurred on the outputs. It is also based on direct and indirect competitors. Any changes expected in the future at the prices of the raw material might also affect the prices to be charged on the product. Apart from those, the customer's income level will be considered so that the costs will be affordable by them.

Because most of our potential customers for the Hydraforte hand and body cream are usually financially stable at the start of the month, they will be offered with some credit facilities or products during the month of operation. They will be required to pay for the products at the beginning of the next month to evade collapsing of the industry. The fact that the Industry is for cosmetics, specifically the skincare cream, no warranty will be offered.

The Selling Tactics That Will Be Embraced for the Product

As the business owners, having the idea of sales intended to carry out both direct or indirect sales, personal selling, and selling d...

Cite this page

Entrepreneurship: Risk-Taking, Creativity and Innovation - Essay Sample. (2023, Mar 07). Retrieved from https://proessays.net/essays/entrepreneurship-risk-taking-creativity-and-innovation-essay-sample

Free essays can be submitted by anyone,

so we do not vouch for their quality

Want a quality guarantee?
Order from one of our vetted writers instead

If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:

didn't find image

Liked this essay sample but need an original one?

Hire a professional with VAST experience and 25% off!

24/7 online support

NO plagiarism