Entrepreneurship: Introduction & Decision-Making PDF

## A. Introduction to Entrepreneurship Entrepreneurship is super important for making businesses and regions grow big and strong. It all starts when someone sees a chance to do something cool and decides to take action. We call these chances "entrepreneurial opportunities." They're basically situat...

## A. Introduction to Entrepreneurship Entrepreneurship is super important for making businesses and regions grow big and strong. It all starts when someone sees a chance to do something cool and decides to take action. We call these chances "entrepreneurial opportunities." They're basically situations where you can introduce new stuff or ideas and make more money from them than what it costs to make them. For example, an entrepreneurial opportunity could be finding a new way to use an existing product or creating a brand new product for a market. But whatever it is, it's always something new. To seize these opportunities, you need someone with a spark of entrepreneurship. They're the ones who see the chance and decide to do something about it, like creating a new product or entering a new market. This kind of action is what drives entrepreneurship. But jumping into something new can be scary because there's a lot of uncertainty involved. Entrepreneurs have to decide whether it's worth taking the risk. They rely on their judgment to make this call. But sometimes, doubts can hold them back. That's where knowledge and motivation come in. Knowing more about the market or the technology can help reduce uncertainty. And being motivated means you're willing to take on that uncertainty. The McMullen-Shepherd model explains how this works. It shows how knowledge and motivation influence two important stages of entrepreneurial action. First, you need to notice the signals of change in the environment that could be opportunities. People with good knowledge are better at spotting these signals, and if they're motivated, they'll pay attention to them. Others might miss out. Once you realize there's a potential opportunity, you need to figure out if it's right for you. This involves deciding if you have what it takes to make it work, based on your knowledge and motivation. Basically, you ask yourself, "Is this opportunity for someone else also an opportunity for me?" If you can get past your doubts and believe that the opportunity is worth pursuing, then you're acting like an entrepreneur. It's all about taking the chance and seeing where it leads. So, being an entrepreneur means being ready to grab hold of opportunities when you spot them. It's about thinking creatively, overcoming doubts, and taking action. ### A. 1 Introduction to Entrepreneurship The word entrepreneur finds its origin in a French word "entreprendre", which means "to undertake." During the early 16th century, the term was used for the persons engaged in military expeditions. In the 17th century, it was extended to cover construction and civil engineering works. The term was used in context of business and economic activities only in the 18th century. Richard Cantillon, a French Banker, is credited for the use of the word 'Entrepreneur' for the first time to mean a person who bears uncertainty and risk. According to Richard Cantillon, "An agent who buys factors of production at certain, ### A. 1. 1 Meaning of Entrepreneur Entrepreneur a person who gets the idea of establishing the new business enterprise. Entrepreneur is the person who brings together the factor of production that is men, materials, money, and machines. Entrepreneur is a person who takes the risk and faces uncertainty to start and operate the business unit. An Entrepreneur is someone who organizes, manages, and assumes the risks of a business or enterprise. An entrepreneur is an agent of change. Also, entrepreneurs are individuals who recognize opportunities where others see chaos or confusion. The most obvious form of entrepreneurship is of starting new businesses. An entrepreneur is one of the important segments of economic growth. Basically, he is a person responsible for setting up a business or an enterprise. In fact, he is one who has the initiative, skill for innovation, and who looks for high achievements. ### A. 1. 2 Definitions of Entrepreneur According to Joseph Schumpeter, "entrepreneur is an individual person who introduces something new ### A. 1. 3 Meaning of Entrepreneurship: Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence. **Definition**: Entrepreneurship is defined as the act of starting and running your own business or a tendency to be creative and wish to work for yourself in your own ventures. An example of entrepreneurship is a person who is running his own business. ## A. 2 Decision Making Process The decision-making process is one of the most critical processes in your business. You can see different types of this process in reality, but generally, they all have the same purpose – effective and efficient decision that will bring results to your business. The most common used approaching in the decision-making process is according to the following steps: ### A. 2. 1 Recognize the problem – the gap First things, first. Every decision-making process starts with the problem or some discrepancy that exists between the desired and current state. You have the desired state, and you have an existing state. The difference between these two is the gap or problem that you must solve through the decision-making process. In this step, you can start with your vision about the desired state of your company and goals you want to achieve. Here are some questions you need to answer as a part of this step in your decision-making process: - What are the most critical desired states for your small business? - How close is your small business to these states? - Why are you close or not close to the desired states? - What are the most significant problems here? ### A. 2. 2 Analyze the problem After you find possible problems that require solutions you can start with the analysis of already defined problems. How these problems impact on the achievements of your small business? At the end of this step, you will need to have a list of possible problems sorted by their urgency for the solution. In your analysis, you need to find causes and how the problem impacts on your small business. If the impact of the problem is higher, also the importance of the problem will be higher. ### A. 2. 3 Define possible solutions This is the step when you need to start brainstorming all possible solutions for a given problem, or problem you want to solve with that solutions. For the most critical problems, you analyze in the previous step, create possible solutions. When you think about solutions, also think about the causes of the problems. If you don't remove the causes, your solutions will be only a temporary solution. Your decision-making process needs to include possible causes of each identified problem. ###A. 2. 4 Analyze all possible solutions Because in the third step you come to more than one possible solution for a given problem, in this step you need to analyze all proposed solutions to rank them and make a decision that you will implement in the future. This step will need to give you the rankings of all possible solutions from the best ones at the top to the worst ones at the end of your list for each problem you discover at the beginning of the decision-making process. ### A. 2. 5 Select the best solution for the application Now is time for the real decision. The final result from the decision-making process is a selection of the best possible solution to the problem. What will implement as a solution for the given problem? The answer to this question will be the decision you are making. **Implement the decision** We can't talk about decision-making process without the implementation of the decision you have made. You will not finish the job until you don't implement what you have decided. Can you solve the problem only by discovering the solution and making the right solution? No, you will not solve your problem. You need to implement the solution and check the results to see if the specific solution really solves the identified problem. As you can see the overall process described above can be divided into the following four parts (see picture below.) ### A. 3 Startups A startup is an entrepreneurial venture in the early stages of operations, typically created for resolving real-life problems. As many startups solve society's needs, they attract investors and funders because of the tremendous growth opportunities. If you have an interest in working in a startup, understanding everything about a startup can be beneficial to make an informed decision. In this article, we answer "What is a startup?", explore its types, understand the factors that affect the operations of a startup, and discover a few advantages of a startup. A new business venture providing services or products to an existing and growing market. A startup is in the first stage of operations and comprises one or more entrepreneurs. The primary aim is to answer market demand by creating new and innovative products or services. While most small businesses might intend to stay small, a startup focuses on fast growth in a designated market. Usually, such companies start as an idea and gradually grow into a viable product, service, or platform. Startups begin with high costs and have limited revenue. Also, they do not have a developed business model and lack adequate capital to move to the next phase. As a result, these companies seek funding from various sources, such as venture capitalists, angel investors, and banks. Investors or lenders might offer additional funds for a share of future profits and partial ownership. Often, these companies use seed capital for investing in research and developing business plans. Research helps them determine the demand for a specific product and a business plan outlines the company's goals and marketing strategies. ### A. 3. 2 Types of Startups In our modern world, where everyone strives to bring innovation, a good idea isn't enough to create a startup. To understand the features of different startups better, you need to review the following six types. **According to Steve Blank:** - **Lifestyle Startups:** Self-employed folks, working for no one, but themselves. - **Small Business Startups:** Small businesses that run their own business to feed the family. - **Scalable Startups:** Always search for a repeatable and scalable business model. - **Buyable Startups:** Their goal is to be sold to a larger company for cash. - **Large Company Startups:** Innovate or die - forced to create new innovative products. - **Social Startups:** They are passionate and driven to make an impact. #### a) Scalable startups Companies in a tech niche often belong to this group. Since technology companies often have great potential, they can easily access the global market. Tech businesses can receive financial support from investors and grow into international companies. Examples of such startups include Google, Uber, Facebook, and Twitter. These startups hire the best workers and search for investors to boost the development of their ideas and scale. #### b) Small business startups These businesses are created by regular people and are self-funded. They grow at their own pace, and usually have a good site but don't have an app. Grocery stores, hairdressers, bakers, and travel agents are the perfect examples. #### c) Lifestyle startups. People who have hobbies and are eager to work on their passion can create a lifestyle startup. They can make a living by doing what they love. We can see a lot of examples of lifestyle startups. Let's take dancers, for instance. They actively open online dance schools to teach children and adults to dance and earn money this way. #### d) Buyable startups. In the technology and software industry, some people design a startup from scratch to sell it to a bigger company later. Giants like Amazon and Uber buy small startups to develop them over time and receive benefits. #### e) Big business startups. Large companies have a finite lifespan since customers' preferences, technologies, and competitors change over time. That's why businesses should be ready to adapt to new conditions. As a result, they design innovative products that can satisfy the needs of modern customers. #### f) Social startups. These startups exist despite the general belief that the main aim of all startups is to earn money. There are still companies designed to do good for other people, and they are called social startups. Examples include charities and non-profit organizations that exist thanks to donations. For instance, Code.org, a non-profit organization, encourages school students in the US to learn computer science. ## A. 4 Role of Entrepreneur in Economic Development By establishing the business entity, entrepreneurs invest their own resources and attract capital (in the form of debt, equity, etc.) from investors, lenders, and the public. This mobilizes public wealth and allows people to benefit from the success of entrepreneurs and growing businesses. This kind of pooled capital that results in wealth creation and distribution is one of the basic imperatives and goals of economic development. ### a) Wealth Creation and Sharing ### b) Create Jobs Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The simple translation is that when you become an entrepreneur, there is one less job seeker in the economy, and then you provide employment for multiple other job seekers. This kind of job creation by new and existing businesses is again one of the basic goals of economic development. This is why the Govt. of India has launched initiatives such as Startup India to promote and support new startups, and also others like the Make in India initiative to attract foreign companies and their FDI into the Indian economy. All this in turn creates a lot of job opportunities, and is helping in augmenting our standards to a global level. ### c) Balanced Regional Development Entrepreneurs setting up new businesses and industrial units help with regional development by locating in less developed and backward areas. The growth of industries and businesses in these areas leads to infrastructure improvements like better roads and rail links, airports, stable electricity and water supply, schools, hospitals, shopping malls, and other public and private services that would not otherwise be available. ### d) Improves Quality of Life With the power to raise living standards for people and communities by establishing new industries, generating wealth, and creating jobs, entrepreneurship plays a crucial role in economic development. When people take the initiative to start their businesses, they create jobs and income, and have the power to make people's lives better by developing low-cost, safe, and essential products and services. ### e) Assists In The Growth Of Communities In addition to being essential to individual success, entrepreneurship is crucial to the growth of communities. The economies of different communities can thrive through starting new enterprises. There is a rise in investment in the community, which works great for its infrastructure, services, and facilities. A sense of community pride and ownership, encouraged by entrepreneurship, can help develop the community. ### f) Financial Independence If done right, entrepreneurship can help a nation and its citizens achieve monetary freedom. It encourages domestic production and decreases dependency on foreign suppliers. Exporting the produced goods and services to other countries can also bring growth, autonomy, financial gain, and economic autonomy. ### g) Lower Poverty Rate One way to reduce poverty in your community is through entrepreneurship. People can improve their financial situations through new job opportunities. This is of utmost importance in emerging nations where poverty is prevalent. People can enhance their economic well-being through entrepreneurship, leading to social change and general development. ### h) Promotes Investment in Capital Capital investment is boosted by entrepreneurship. When people take the initiative to start their businesses, they attract investors from all around the world. This can open doors to other jobs and even international markets in the long run. ### i) Rising GDP And Per Capita Income An entrepreneurial spirit is essential to a flourishing economy. Entrepreneurship boosts GDP and per capita income by establishing new companies and employment opportunities. This is very important for emerging nations where unemployment and poverty are significant problems. ### j) Efficient Use of Resources Business success often depends on seizing opportunities when they arise, and making the most efficient use of available resources. In addition to making the most of limited resources, entrepreneurs are crucial in creating new goods and services that satisfy consumer demands. **Conclusion:** Entrepreneurs power economic development. They play various roles in shaping the future of economies globally, from innovation and job creation to poverty alleviation and environmental sustainability. Being an entrepreneur is like creating art; the journey should be as rewarding spiritually as it is based on wealth. The goal should be a society where business owners are respected for more than simply their financial success. They are also seen as role models in which people can put their faith to make wise decisions that benefit their communities and nation. ## A. 5 Characteristics of a Successful Entrepreneurs ### a) Creativity Creativity gives birth to something new. For without creativity, there is no innovation possible. Entrepreneurs usually have the knack to pin down a lot of ideas and act on them. Not necessarily every idea might be a hit. But the experience obtained is gold. Creativity helps in coming up with new solutions for the problems at hand, and allows one to think of solutions that are out of the box. It also gives an entrepreneur the ability to devise new products for similar markets to the ones he's currently playing in. ### b) Professionalism Professionalism is a quality which all good entrepreneurs must possess. An entrepreneurs mannerisms and behavior with their employees and clientele goes a long way in developing the culture of the organization. Along with professionalism comes reliability and discipline. Self-discipline enables an entrepreneur to achieve their targets, be organized, and set an example for everyone. Reliability results in trust, and for most ventures, trust in the entrepreneur is what keeps the people in the organization motivated and willing to put in their best. Professionalism is one of the most important characteristics of an entrepreneur. ### c) Risk-taking A risk-taking ability is essential for an entrepreneur. Without the will to explore the unknown, one cannot discover something unique. And this uniqueness might make all the difference. Risk-taking involves a lot of things. Using unorthodox methods is also a risk. Investing in ideas, nobody else believes in, but you is a risk too. Entrepreneurs have a differentiated approach towards risks. Good entrepreneurs are always ready to invest their time and money. But, they always have a backup for every risk they take. For exploring in the unknown, one must be bestowed with a trump card; a good entrepreneur has one, always. Also, evaluation of the risk to be undertaken is also essential. Without knowing the consequences, a good entrepreneur wouldn't risk it all. ### d) Passion Your work should be your passion. So, when you work, you enjoy what you're doing and stay highly motivated. Passion acts as a driving force, with which, you are motivated to strive for better. It also allows you the ability to put in those extra hours in the office which can, or may make a difference. At the beginning of every entrepreneurial venture, or any venture, there are hurdles, but your passion ensures that you are able to overcome these roadblocks and forge ahead towards your goal. ### e) Planning Perhaps, this is the most important of all steps required to run a show. Without planning, everything would be a loose string as they say, "If you fail to plan, you plan to fail." Planning is strategizing the whole game ahead of time. It basically sums up all the resources at hand, and enables you to come up with a structure, and a thought process for how to reach your goal. The next step involves how to make optimum use of these resources, to weave the cloth of success. Facing a situation or a crisis with a plan is always better. It provides guidelines with minimum to no damage incurred to a business. Planning is one of the most important characteristics of an entrepreneur. ### f) Knowledge Knowledge is the key to success. An entrepreneur should possess complete knowledge of his niche, or industry. For only with knowledge can a difficulty be solved, or a crisis is tackled. It enables him to keep track of the developments, and the constantly changing requirements of the market that he is in. May it is a new trend in the market, or an advancement in technology, or even a new advertiser's entry, an entrepreneur should keep himself abreast of it. Knowledge is the guiding force when it comes leaving the competition behind. New bits and pieces of information may just prove as useful as a newly devised strategy. He should know what his strengths & weaknesses are, so that they can be worked on, and can result in a healthier organization. A good entrepreneur will always try to increase his knowledge, which is why he is always a learner. The better an entrepreneur knows his playground, the easier he can play in it. ### g) Social Skills A skillset is an arsenal with which an entrepreneur makes his business work. Social Skills are also needed to be a good entrepreneur. Overall, these make up the qualities required for an entrepreneur to function. Social Skills involve the following: - Relationship Building - Hiring, and Talent sourcing - Team strategy formulation ### h) Open-mindedness towards learning, people, and even failure An entrepreneur must be accepting. The true realization of which scenario, or event can be a useful opportunity is necessary. To recognize such openings, an open-minded attitude is required. An entrepreneur should be determined. He should face his losses with a positive attitude, and his wins, humbly. Any good businessman will know not to frown on a defeat. Try till you succeed is the right mentality. Failure is a step, or a way that didn't work according to the plan. A good entrepreneur takes the experience of this setback and works even hard with the next goal in line. This experience is inculcated through the process of accepted learning. Good entrepreneurs know they can learn from every situation and person around them. Information obtained can be used for the process of planning. Learning with an open mind lets you look at you faults humbly. New information always makes an entrepreneur question his current resolve. It also provides a new perspective towards a particular aspect. Open-mindedness also enables you to know and learn from your competition. ### i) Empathy Perhaps the least discussed value in the world today is empathy, or having high emotional intelligence. Empathy is the understanding of what goes on in someone's mind. This a skill that is worth a mention. A good entrepreneur should know the strengths, and weaknesses of every employee who works under him. You must understand that it is the people who make the business tick! You've got to deploy empathy towards your people. Unhappy employees are not determined, and as an entrepreneur, it is up to you to create a working environment where people are happy to come. To look after their well-being, an entrepreneur should try to understand the situation of employees. What can be a motivational factor? How can I make my employees want to give their best? All this is understood through empathy. Keeping a workplace light and happy is essential. For without empathy, an entrepreneur cannot reach the hearts of employees nor the success, he desires. Empathy is one of the most important characteristics of an entrepreneur. ### j) Customer is everything A good entrepreneur will always know this; a business is all about the customer. How you grab a customer's attention is the first step. This can be done through various mediums such as marketing and advertising. It is also important that you know the needs of your customers. The product or service which is being created by your organization needs to cater to the needs of your consumers. Personalising a business for consumers will also boost the sales. The ability to sell yourself in front of a potential investment when it comes in the form of a customer is also required. Being ready with the knowledge to please a customer, is a way to have a successful business. ## A. 6 Entrepreneurial Mindset ### a) Positive Mental Attitude A positive attitude and outlook is a must for successful entrepreneurs. The mindset of the head of the company sets the tone for the rest of the company and influences corporate culture. Negative thoughts undermine forward motion, and the progress of the company, not to mention the management's ability to lead staff and motivate employees. Part of what gives entrepreneurs the fortitude to weather the business downturns is positivity. ### b) Creative Mindset Never has the adage "Creativity is the mother of invention” been truer than in the world of entrepreneurship. Think of Steve Jobs and the iPhone. Edison, and the light bulb. The Wright Brothers and the airplane. Each of these ground-breaking inventions would not have come to fruition were it not for healthy doses of creative gumption. Even if you're not in a "creative" industry, creativity is needed for entrepreneurial success. The mind of an entrepreneur is always looking for novel ideas and innovations. The basic life cycle of any entrepreneurial product stems from the conception of an idea, followed by turning that idea into a viable product or service. ### c) Persuasive Communication Ability The best entrepreneurs are persuasive individuals. The power of persuasion can help you negotiate, close a sale, or score a lower price on your inventory. Not to mention, persuasive people tend to be inspiring leaders, ergo they tend to be stellar bosses. One of the top entrepreneurial characteristics is intrinsic motivation, meaning you are self-motivated as opposed to looking to others to push you to do things, or hold you accountable. Broadly speaking, those who own their own businesses are incredibly motivated to succeed. They've poured blood, sweat, and tears into their company, and may have literally mortgaged their future to first open their businesses' doors. Having a lot at stake personally fuels the motivational drive. When you're starting a business, you hope that your business will be a wild success. It's true that success is wonderful, but failure is where growth, and change happen. The key to learning. ## A. 7 Style and decision making strategies Decision making is an intellectual process of selecting optimal and best option among many alternative choices. It results in an outcome which can be in form of action or an opinion [1]. Decision making process can be categorized into four processes: - - Group decision making process - Individual decision making process - Organizational decision making process - Meta organizational decision making process There are various steps in decision making process like recognition of problem, setting of the objective, collection of the data, developing all the alternative options, analyzing their positive and negative points and then making a decision, implementing decision, learn from it [2]. Decision making is very important for an organization as it results in a best course of action by a cognitive process. It is significant because of following reasons: - - Implementing managerial functions: - Many managerial functions like planning, organizing, controlling, staffing, etc. cannot be managed, and directed properly. - Without decision making any function cannot be performed. It should be taken by all staff and it is pervasive. - It evaluates managerial performance. If it is right then it means an efficient, and capable workforce. - It is helpful in making plans and policies. - It helps in selection of best outcome out of several alternatives by evaluating their advantages and disadvantages. Right decisions help in successful operation of organization. A decision making model can be judged and evaluated on various parameters. On the basis of this an appropriate model can be chosen. ### a) Rational model This model is based on logic of choice that would maximize the value and profitability of an organization. According to this model, people follow a rationale method while making any decision. The sequences of various steps in this model are: - - Identification of problem. - Generation of solutions, and alternatives. - Selection of best alternative. - Implementing the desired solution. It is generally assumed that people are able enough to choose the most efficient outcome. Every alternative has its own consequences, only after evaluating them right outcome is chosen. Rationality among members results in coherent and unified organization that tries to maximize the value and meet the unique set of goals without giving rise to nay internal conflict in organization and makes it rational policy making entity. This type of organization will have centralized power, harmony among its members, and consistency among goals of firm, members who are efficient to choose the best alternative that would maximize the value of common, and unique set of objectives of the organization. It tells how the organization makes its decisions by giving sanitized vision of it. Model suffers from several limitations like not having sufficient amount of information which is crucial, and relevant to problem, problems can also change during short period of time. In reality, goals of an organization are not the same of those of complex groups working in it. As there are different individuals in affirm, they have their own views, desires and objectives which might not be relevant, and crucial for an organization. In fact, they can work against the firm; those individuals will try to maximize their own set of goals rather than those which hold relevance for the firm. ### b) Normative model This model assumes that managers and leaders face certain set of constraints, and obstacles while making decisions. These constraints can be personal or environmental factors such as time, complexity, uncertainty and risk, limited availability of resources etc. these factors will reduce the rationality of the model. According to this model, decision making is depicted by - Limited processing of information which means there is a boundary, or a threshold limit which manages the extent to which information can be managed, and processed by a person. - Judgmental strategies like many shortcuts are used while making decisions. - Selection of those solutions or alternative that would require minimum inputs, and resources but are good enough. It enables the leader to analyze the situation, and determine level of engagement. It is a splendid example of decoction of knowledge. Normative decision making model is considered as a best option for making quantitative judgments. ### c) Administrative model This model is more realistic description of decision making of an organization. According to this model, decision makers have different motivations, incentives, demands but they try to go for shortcuts to find solutions which are acceptable by everyone due to lack of time. Here the decision maker does not focus on optimization but rather on satisfying i.e. choosing an alternative with a value above the minimum acceptable value on a particular constraint. Satisfying has a shortcoming that it leads to reduction in decision quality but advantage is that it saves time, and effort. It has an additional benefit when the cost of delaying in decision, or looking for other alternatives is high, and expected pay off from other best or superior alternative is comparatively low. After taking the decision and implementing it, if it is found to be acceptable then organization establishes the given procedure in to Standard Operating Procedures (SOPs). These SOPs are rules and regulations run by managers to save the time while solving a problem from elementary level. Managers also use them when organization encounters similar problem to that of original. But in reality, SOPs are not time savers always. Organizations cannot be considered as a single entity. Problems are different according to several departments in an organization which forms their own goals, and objectives. These goals, and priorities do not match with overall objectives of the firm. Therefore organization can be considered as a group of loosely attached sub units having distinct goals and priorities, different SOPs and each of them having different measures to solve them. Over the time these sub units become more detached and their goals become more excavated. These divergences are due to distinct perceptions and priorities and get strengthened by recruitment and rewards. This results in formation of different groups and coalitions with distinct interests. ### d) Political model This term is important not only for government or public sector, but for firm in any industry. According to this model, decision makers concentrate on many problems within an organization reflecting personal goals of different sub units rather than focusing on a single issue unlike rational model. As in administrative model, we assumed that there are standard operating procedures, but there is nothing such in political model. There are no standard procedures, rules to apply. Decisions are taken after bargaining and discussing among coalitions and different groups. Unlike other model, here power is decentralized. It lays emphasis on multiple goals, priorities, interest in a complex working environment. This model considers decision making as a process of distinct resolution, and building agreement, and decisions as a consequence, and result of compromise among subunits. Whenever organization encounters a problem which demands a change in policy, it assumes that managers consider only few alternatives which are similar to those of existing policy. The political model views that managers or decision makers recommends only small changes in policy, and plan in response to immediate problem pressure rather than making a set of programs, and exhaustive plan. This procedure is called incremental approach. This method is a form of satisfying. It has an advantage of reducing the time in searching for information, and in definition stages of problem. In this model, stakeholders have different perceptions, ideas, interests and each of them has right to give their proposals. No particular policy can win if it is posing harm to any stakeholder even if it is consider as a best, and optimum solution. Here access to information can be a quite sensitive issue because in politics, information signifies power. ### e) Ethical model It is a logical procedure which is required to reduce the emotional impact on capability of decision makers to think rationally. It is important to include client in ethical decision making process so that they realize you are not imposing your decisions on them, and not deciding on their behalf. One should remain open to all the information, and keep oneself updated with new knowledge and skills. It should be a collaborative and cooperative process between clients, and counselor. There are several steps in ethical decision making model - Identification of the problem. Firstly enquire whether the problem actually exists. If it does then is it ethical, legal, moral, etc. or combination of any two. One needs to identify the nature of the problem, and whether it is in beginning stages, or not. - Next step is to look out for the potential issues. Analyze the rights, duties, welfare of all those who are involved and influenced by the decision. Evaluating decisions that can enhance the welfare of clients, or those which pose harm to them. Creating an Environment where clients can find the solutions to their queries. Demonstrate the measures used to rank the potential issues, and involve the client in identifying the issues. - Third step is to evaluate, and review the significant ethical codes. - Next level is to understand the laws, and regulations relevant to the situation. - Acquiring consultation from professionals who are equipped with knowledge about ethical issues. One can involve the client in consultation process. - Take into account all the possible, and probable course of action. Evaluate ethical obligations, and all possible alternatives systematically. Client involvement is necessary. - Analyze the possible consequences of decisions before implementing them. Evaluate the consequences for yourself, client and for organization as a whole. Ethical principles must be used for evaluation. - After gathering all the information and evaluating it, choose the best alternative out of many. At this level, one must consider client input, or solution. Ask for feedback. It is not essential and necessary that every decision maker will implement the same course of action in a particular situation. - Following a systematic model will help in to provide professional explanation for the chosen plan. Counselor must maintain their personal and professional relationships with the clients without malice, and keep in mind their interests and choose plan accordingly. They should not look out for their personal profit. ## A. 7. 2 Identify your potential entrepreneurship style; identify the difference based on personality traits, strengths, and weaknesses. SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current, and future potential. SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity. **Strengths** - Entrepreneurs maintain control over their company's decisions - Capital is very accessible - Opportunity to test idea marketability - Benefits for communities both locally and internationally **Weaknesses** - Administrative and accounting challenges - Ideas and business models presented public can easily be stolen - Weaker investor protection, and potential for fraud - Internet-based, so investors might lack detailed advice - Current legal restrictions in some jurisdictions are not suitable for equity crowdfunding - Risky nature of small businesses **Opportunities** - Utilize the power of social networks for promotion, and connect with crowdfunding - Positive effects of crowdfunding on the economy - Niche investment opportunity / way to raise capital **Threats** Strengths describe what an organization excels at, and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must theņ decide how to use those results to attract new investors. **Weaknesses** Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than- average turnover, high levels of debt, an inadequate supply chain, or lack of capital. **Opportunities** Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share. **Threats** Threats refer to factors that have the potential to harm an Organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply. And so on. Scanned with OKEN Scanner