What determines the success of entrepreneurial activity? Typical errors of business beginners

At first glance, the entrepreneur's activity seems simple. However, it is not. A novice businessman needs to learn and master a lot, so that his business is more cost-effective, and services or goods are in demand. First of all, it is necessary to determine what determines the success of entrepreneurial activity.

Entrepreneurial activity

Entrepreneurial activity is a special kind of professional activity. Its subject is to realize the personal potential of the businessman in the process of creating a new structure that will profitablely function or expand the existing one.

The main components for the formation of the structure of this activity are:

• Motives, which consist in the pursuit of self-realization;
• Objectives, consisting in expanding the company and benefiting from the manufacture of products of activity;
• Resources of the personality of the psychological type: efficiency, strategic thinking and initiative.

Having become acquainted with the definition of the concept, it is necessary to find out what the success of entrepreneurial activity depends on.

Psychological factors

The success of the activity of this type is determined by the level of assignment by the businessman of its main structural and dynamic components: resources, goals and motives.

Psychological factors of the success of entrepreneurial activity in a set of motives represent a level of domination of the desire for self-realization, which occurs both at the beginning of the activity and at the stage of mastering the case.

If we consider a set of goals, we can conclude that the criterion is the desire to expand the commercial business and benefit from the production of goods and services.

In the resource block, psychological factors represent the level of actualization of entrepreneurial resources by the subject. These include the following personal qualities :

• Initiative, which is expressed in the desire of the individual to create new forms of activity;
• Working capacity, acting willingness of a businessman to work productively in the presence of stressful events;
• Strategic thinking, which manifests itself in his ability to see the future of business in uncertain situations.

Determining the success of entrepreneurial activity is one of the most important, therefore, it should pay special attention.

Entrepreneurial activity and wage labor

Under the entrepreneurial activity should be understood much more than the current conduct of business. For its owner, it is important to find opportunities to create assets that will make a profit. One of its main tasks is the proper organization of the team and the inspiration of employees for more productive work. To maintain the effectiveness of the activity, it is necessary to regularly improve it and correct it.

There are differences between the work of the entrepreneur and the employee. In the case of hiring a person always knows what he has to do. This is due to the preliminary agreement of labor. With the functions of the entrepreneur, everything is much more complicated, since there are often situations when he has to deal with those things that he did not initially expect. To understand why the success of entrepreneurial activity depends, one should know what criteria distinguish it from other species.

Comparison of entrepreneurial activity and wage labor

For comparison, the following criteria are used:

• Efficiency of work. The mercenary works in the volumes that are controlled by his superiors. In this case, the businessman understands that the possibility of creating an asset will depend on the quality of his work. Therefore, he performs his functions more conscientiously.
• The need for control.
• Riskiness. The entrepreneur's work is risky enough. This is due to the fact that his reward depends on the characteristics of the market and the profit. Employees generally receive a fixed wage, but it also depends on the employer's profits. If the market in which it operates is stable, the risks will be minimized, which will also determine the success of doing business.
• Salary. The employee will receive a pre-determined payment. The owner of the company will receive for personal consumption what will not be included in the company's costs. Its assets are the property of the entrepreneur. They are valuable enough, because they are able to generate revenue, but do not have to go into personal consumption.

Culture as a success factor

Determining why the success of entrepreneurial activity depends, one should know that culture is rather important for it. Under this concept it is necessary to understand the degree of development of society, which is expressed in the forms and types of organization of people's lives and their mutual relations. When using services and purchasing goods, the client counts on observing the moral standards of their representative.

It is worth noting that the success of entrepreneurial activity depends on moral standards. On whether there is a problem in the state with their adequacy. For example, in Russia the inviolability of private property is not fully respected. This happened historically because of the influence of Orthodox culture and the policy of socialism. The existing mentality has led to the fact that most of the population does not accept the receipt of wealth, even if it is the result of their labor. The current situation also led to a peculiar attitude towards the legislation and the state as a whole.

Domestic business differs in that its ethics or its absence is largely not determined either by personal choice or by law. First of all, it depends on the need to survive the entrepreneur in the conditions of non-compliance with laws, uncertainty and oppression by the state. What determines the success of entrepreneurial activity, and what should be the ethics that contributes to it? It includes such basic norms:

• Respect for the inviolability of private property;
• Manifestation of personal initiative;
• Fulfillment of obligations, absence of attempts of causing harm and honesty;
• Absolute compliance with the terms of contracts with partners;
• Independent decision-making;
• Responsibility for their actions;
• High-quality work execution;
• Taking part in social partnerships;
• Ensuring proper protection of health and employment;
• Elimination of discrimination in the conduct of activities;
• Observance of openness of information for society.

Having considered only these norms, it is difficult to understand what the success of entrepreneurial activity depends on, so it is worthwhile to continue studying the material on this topic.

Key success factors

It is necessary to consider the main factors affecting the success of entrepreneurial activity. In the time of classical capitalism, there was only one major factor that was capital. In this case, the capitalist acquired inventions and ideas, and also employed managers. With the development of science and technology, the manufacturability of products was increased. This entrepreneur had to combine his efforts with managers, developers, innovators, who have modern methods of marketing products, organizing production and management.

Considering the main features of the implementation of entrepreneurial activities, we can distinguish the following equitable factors: capital, innovation and management. It should be noted that to date, the manager, the owner of the capital and the innovator have the same opportunities in entrepreneurship. At the same time, any of them can initiate the creation of a project or the opening of one's own business by inviting two other partners.

Capital

Capital is not only money. They can act a huge amount of various intellectual and material benefits, which will become an investment for the provision of services and the production of goods. When capital is combined with management and innovation, human and natural resources form labor.

The considered factors of the success of entrepreneurial activity are also able to involve methods of saving resources and time, which helps to increase the productivity of natural resources and labor. With the help of experience and knowledge, it is possible to significantly reduce the amount of required capital investments and accelerate the solution of production tasks.

Innovations

Innovation is the product of a creative process. They mean the transformation of scientific and engineering ideas when creating experiments in production and technical solutions. This product of thinking must be original and novel. Also, the availability of production facilities for project implementation should be taken into account.

To find out what the success of entrepreneurial activity depends on, it is required to understand what benefits and demand innovation can have. That they were worthwhile, it is necessary to follow the rules of their development and implementation. First of all, the idea is created or borrowed and transformed into a solution of an engineering-technical type. Further, they evaluate their utility for consumers, as well as the economy and manufacturability of the manufacturing process. If the project is to be continued, a pilot batch is produced. After the release of products in full volume and its implementation on the market, approaches are being developed to create purchasing power.

Achievement of successful implementation of entrepreneurial activity can be achieved by mastering the science of innovation management, which exists and is being improved over the past several years. To do this, the businessman needs to ensure an increase in the scale of production, development and renewal of goods, as well as the extension of their life cycle.

Regular introduction of innovations and product updates will lead to a long-term and effective existence of the company. Defining on what the success of entrepreneurial activity depends, it is necessary to take into account the need to assess the need for changes, as well as in the timely detection of the moment of renewal. This is due to the possibility of finding effective alternatives to the applied technologies, which will lead to product improvement and increase in demand for it. Reducing the cycle of creating innovation is the main task of the enterprise, which determines its competitiveness and success.

Management

One of the factors that affects the success of entrepreneurial activity is management. Its essence lies in the creation of purposefully working groups of unorganized people. Management allows you to apply the ability of entities to implement the ideas set by the company, due to their joint work. Before the manager the task is set, which is to bring the company to the goal with the presence of the correct functioning and produced processes.

In order to achieve the success of the enterprise, it is necessary to adhere to the following management principles:

• Unity of directions;
• Division of labor and responsibility;
• The unity of all common disciplines;
• Observance of a previously agreed procedure;
• Honest remuneration;
• Sociability and collectivity.

For the adoption of business decisions and their implementation, the following management tools are required: leadership, motivation, alignment, control and coordination. The greatest emphasis is on collectivity and personality, as well as determining the powers of managers and executors. The effectiveness of management decisions allows you to achieve positive results in the conduct of activities.

Conclusion

Based on the material in question, the success of entrepreneurial activity depends on many factors. Conducting research on its criteria allows us to take a fresh look at this problem. Modern educational materials intended for the preparation of future entrepreneurs, have little difference from management training programs. For this reason, the study of the functions of management and innovation is essential. With the correct approach to the study of materials, you can understand how to achieve success in the implementation of entrepreneurial activities.

Having considered the presented information, it is possible to understand what personal qualities a businessman should possess. Factors affecting the optimal operation of the company are of significant importance. Every business owner must take them into account in order to achieve the desired results. This information is especially important for beginning entrepreneurs.

It is also worth noting that the success of entrepreneurial activity depends on the reliability of the market on which it is carried out.