Sample on Entrepreneurship Theories

Entrepreneurship and innovation theories in order to create business plan

There are some key entrepreneurship theories that can help businesses to have better business plan and with that considering innovation and creativity. The theories are classified as economic, resource based theories, psychological, sociological and opportunity based theories. These entrepreneurship theories help businesses and motivate them to put together effort to increase profit as well as to reduce business risk (Djellal and Gallouj, 2008).

Economic theory

Economic theory, it is a theory that is introduced by Richard Cantillon. According to this theory the idea generation and innovation in business is all about taking risk. In this, the idea generation and creativity totally occurs by considering economic conditions and opportunities that business can create by focusing on the economic factors in the country (Edvardsson,Gustafsson, Johnson and Sanden, 2000). By considering this theory business can have economic development. It has been identified that the better business plan requires better consideration of economic factor or creativity that can improve economy of business. It is because every successful business needs investment for its success and better investment can be take place only by examining economic creativity. In this, business plans can focus over finding new ways to have improvement in economy (Johnson and Gustafsson,2008). The improvement in economic factor will allow business to have less investment in having an increase in profit. Other than this, the economic factor is also related to resources. The improvement and creativity in economy will also allow business to have better use of resources. It has been identified that better use of business will also allow companies to have better business plan. For example, the Entrepreneur is is looking to start new business then he can use economic theory in creative manner for better economic conditions of firm. Like the better and creative examination of company investment will reduce the cost of firm.

Resource based theory

Secondly, the use of resource based theory in business plan will allow business to focus over finding new ways and give effort to better use of resources to meet the objective of entrepreneurs (Abbamonte, 2014). It has been identified that the better availability of capital and resources allow firms to have better business expansion. The approach to capital modifies the possibilities of acquiring a new venture and provides effectiveness to business plan (Von and Stamm, 2008). Other than this, the creativity in using resources will also boost the business and reduce the cost of human resources and other necessary resources. In other word, it can be said that the effectiveness in business plan can improve the performance of company through having creativity in ways and by proper using resources. It also improves management skills and motivate entrepreneur to provide strength to its business plan through better application (Nowak,2011). For example, Entrepreneur can have effective use of resources and lead firm to better success in creative manner. Like, company is using advance technology for better use of wastage and to protect resources.

Sociological theory

Sociological theory of entrepreneur is all about consideration of social factors. This theory provides strength to business plan with a context of social factors. With having an adaptation of this theory entrepreneur will able to find new ways to provide better services to society. It has been spotted that success of every business depends upon perception of society, so it is necessary for firms to consider this factor as an important part of business plan for effective application (Becker and Van Emden, 2004). If business plan will have better value to society or to its customers then the application of all business activities will also perform effectively. In other words, it can also be said that the company must focus over some social factors at time of business plan formation for improved application. The social factors can be classified as, ethics, culture, political, etc. The better identification of these factors will offer strength to business plan and the sociological theory of entrepreneur will help firms in enhanced identification of these learning factors (Bolton and Thompson, 2004). Other than this, theory will also provide better understanding of cultural and political factors that will be helpful for business to decide effective strategies for betterment of business plan. For instance,Entrepreneur can have creative of social factors for better business plan and attract more and more customers through having an better use of social and cultural understanding like, use of folk dances in advertisement and to promote product.

Psychological theory

After this, psychological theory of entrepreneur is all about creating and applying business plan and its activities with having a consideration of individual aspects (Kuratko, 2013) In the support of this, it can be argued that while forming a business plan entrepreneur must consider its own mental and emotional elements. It is because the business objectives are reflection of owner’s needs or his mentality. So in the favour this it can be said that the objectives of business plan must consider owners view for better application (Bowdin and Allen, 2004). This theory will help the firm to have better identification and application of business objectives with having an innovation and creativity in perception of owner. In other words, it can also be argued that the success of business also dependent over perception and efforts of entrepreneur. For instance, entrepreneur can also have some creativity in business through use of personal skills and creativity power of individual. Like, Amazon has started selling books over internet. This is an great case of psychological creativity.

Opportunity based entrepreneurship theory

At last, opportunity based entrepreneurship theory, in this theory the entrepreneur will try to provide strength to business plan with having a consideration of future. It has been identified that the every business must have some future objectives for better formation of business plan. The actions and strategies of business are decided on the basis of objectives. The objectives are made by analysing business opportunities and future forecast (Burns, 2008). With the help of this theory organization can take advantages of potential opportunities that can boost the success of business. If business plan will consider future objectives and opportunities then it will facilitate in creation of strategies for better accomplishment. Other than this, organisations also need to focus over future trends of technology as well as culture for better strength to business plan (Addis, 2003). The adaptation of this theory will motivate firm to create effective business plan for better future with creating innovation and creativity in business activities. For example, Google objective is provide better and enhanced services and information with use of internet. In the support of this, company regulatory change its website design for better service with having a consideration of better information objective.

Issues that are facing by event industry and solution to overcome those

It has been identified that there are number of crucial issues that are facing by event industry in Russia. Specially the issues that are affect the business in destinations wedding. Event industry is having great business opportunities in Russia because the citizens are looking for destination wedding or it can be said dreaming for wedding in Italy, France, etc (.Deakins and Freel, 2005). this shows that the event industry have a lot of business opportunities in market of Russia, in this support it can also be said that the married couples are also dreaming for destination wedding in Russia for better life experience on their anniversary.

Other than this, research has also identified some problems that are affecting the business as well as the opportunities (Aldrich, 2010). The key problem has spotted in destination wedding is that organizations mostly face logistics and operations problem. In destination wedding it turned hard for institutions to have better transfer of gifts and luggage from Russia to Italy and France. These kind of transfer increase the cost of firm and affect the operation of organization and lead to difficulties that are related to finance (Gray, 1995). Other than this, the procedure and logistics of firms also get affected due to less connection in destinations where clients want to get marry. It is hard for companies to create and build relation with local members in less time.

Other than this, the cost of destinations wedding plan are high due to number of issues that are affecting business of event firms. For example, the better planning of wedding requires time and money to spend over application. Such as,for destination wedding companies requires high amount or investment for travelling among nations. This requires flight ticket, food, accommodation, etc (Shone and Parry, 2001). If the cost of these factors will increase then it will affect the cost of other wedding arrangements. The better application of plan and conduction of weeding event also need time to visit destination at least 3-4 times for better arrangements and to look over conditions. This factor also increase the cost of event so it is hard to manage the cost in wedding destinations. Other than this, the current event organizations are negotiating and operating their business over telephone that increase the call cost (Rae, 2006). In the support of this it has also been identified that the local members and suppliers are expecting face to face interaction with companies for building a better relation and have trust on them. The companies are also using their traditional approach in operation and not using internet.

In the addition of the issues, there is one more issue that is affecting the business of event industry. The face to face communication increase the cost of travelling and while having an face to face communication, executive also face language problem. It has been spotted that the different countries lead to diverse culture and language. So it is also becoming hard for companies to have better interaction with supplier (Sonder, 2004). The weak interaction and relation with supplier affect the delivery of elements and affect all operation or event. Other than this, the destination weddings also require advance bookings at least one year before. If company will not approach on time then it may also affect the booking of destination. So it is necessary for firm to consider time as important factor. Other than this, the lack of event professional in Russia also a key issue for firms because it affects supply chain and that affects the cost of event (Anderson,2012). In the addition of this it can also be said that the if local supplier or members will get to know that person is foreigner then they will charge high amount for supply. They can easily identify it through differences in language.

Budgeted Estimation for destination wedding

Conclusion

As per the above study it can be concluded that the entrepreneurship theories are classified on the basis of several factors that are necessary for every business and for better business plans. The better application all theories will help firms in gaining better business opportunities. Other than this, paper has also spotted that the event industry is facing number of issues while operating in Russia and conducting destination weddings. But industry and firms can overcome these issues with help of some tactics like, local merger, business expansion at favourite destinations and use of modern communication methods.

Reference

• Anderson, A. 2012. Entrepreneurship as connecting: some implications for theorising and practice. Business enterprise.
• Deakins, D. and Freel, M., 2005. Entrepreneurship and small firms. Mcgraw-hill higher education; 4th ed.
• Gray, D.A. 1995. The entrepreneur's complete self-assesment guide. Kogan page, 2nd ed.
• Johnson, M. D. and Gustafsson, A., 2008. Competing in a service economy: how to create a competitive advantages through service development and innovation (JBUMBS series). Jossey Bass.
• Max, S., 2013. Theorizing about gender and entrepreneurship: bridging the gap with social psychology.

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