Role of Entrepreneurship and Value Creation

Entrepreneurship and Entrepreneurial Management

Entrepreneurship is the process of influencing the employees in the organisation to achieve the objectives by leading them effectively and providing them the effective techniques, skills and knowledge to attain that efficiency (Hjorth, D. and Holt, R., 2016). Entrepreneurship is the managerial authority which is assigned to the owners, who have the ability to increase the efficiency of the business by innovating and increasing the quality of the decision-making with the knowledge they carry. Entrepreneurs have the ability to take risks by making decisions as they are the owners and also have an effective vision to increase the efficiency of the business. Entrepreneurship is the idea of initiating the business activity, which can increase the efficiency of the business and require very hard work in economic considerations. Entrepreneurs who have the skills to generate great ideas are born with those skills and also have the traits which make them successful in doing their tasks. They separate themselves from the rest of the world by providing their quality to the world and also assuring the capabilities they portray to accomplish the task with fewer resources but maximum output. The famous entrepreneurs in the world who depict entrepreneurship are Steve Jobs for the Apple company, Larry Page, and Sergey Brin for making Google. (Gurău, Lasch and Dana, 2015)

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The Interrelationship between Entrepreneurship and Value Creation

The interrelationship between entrepreneurship and value creation is very essential, as they help the business grow and make it the potential prospect to increase profit margins. Entrepreneurs are effective managerial individuals who have the ability to generate ideas that will increase value when the business organisation increases its economic activity with the help of that idea and makes effective use of that idea to improve the performance of the business organisation (Meyskens and Bird, 2015). Innovation is also the major aspect which comes under this aspect of entrepreneurship, the art of analysing all the factor and improving the quality of the existing resources so that it can increase the efficiency of the organisation and grow the organisation's core effectively. The market competition also plays an important role in creating a need to analyse all the internal and external business environment factors, which can help the entrepreneurs identify the better sources to grow the business organisation and achieve core competency in their market. Denchev et al. (2016)

The process of value creation is very important as it includes human resources, capital formulation, and all the market factors like consumers, competitors, and suppliers that increase the efficiency of the business organisation. As the value creation is the main aspect of the business, which provides the nature of the business and helps to increase the economic growth and provide the leverage to attain the objectives. Entrepreneurship and innovation go hand in hand, which also support the creation of value to increase the performance of the organisation. This process also includes leadership, as the employees in the organisation need to be influenced to achieve the objectives that are set by the entrepreneur to increase the value of the organisation. (Hitt and Ireland, 2015)

Entrepreneurship management, leadership management, and change management are all essential parts of the business, as all the management helps the organisation to attain the objectives and make them more efficient so that it also helps the employees to develop themselves and increase the values and ethics to create a healthy environment, which is very essential for the organisation to increase the productivity. 

Entrepreneurial value creation theory

Entrepreneurial value creation theory also examines the entrepreneur's value creation. The business venture is also determined and analysed to understand the value creation of the entrepreneur and how it helps the business to increase efficiency. 

1. In the first stage, the entrepreneur will analyse the need to find the potential opportunity to invest in the new business or the venture so that it can create better revenue generation for the business and help to increase the performance of the business to motivate the employees, create a better vision, and increase the quality of the business culture to expand it. This stage helps the entrepreneur to evaluate whether the venture will be successful or not and will have to invest in it or not. (Zahra  and Wright, 2016)
2. In the second stage, if the venture is successful, then the investment will be made into the venture to expand and increase efficiency to improve the quality of the deliverance. In this stage, all the employees are tested for the right potential and skills that are required for the operations of the new venture activities and also have the capability to increase the business by hiring new employees with the help of recruitment and selection, and training and development also help the employees to increase the particular required skills and knowledge about the job (Aftab et al., 2016).

The value creation is the main objective of the business organisation and also focusses on the endeavours, which include many risks to participate in the business activities. The value creation is also very important, as it also decides the nature of the business organisation and also the features and characteristics of the products and services, which will increase the profitability of the business organisation (Chell et al., 2016). As value creation is more effective than traditional management, it helps the employees to increase the efficiency of doing the task eternally and also develops them to increase this efficiency to achieve the goals and become more effective in the organisation. Value creation also increases the satisfaction level of the customers as they are more attracted to the organisation, which is more focused on the value and quality of products and services for the customers. This helps the organisation to increase goodwill and improve its competitive advantage in the market to increase profitability. Value creation increases the credibility of the shareholders to invest in the organisation and increases the number of investors who are ready to invest in the business, which has value and is also a good entrepreneurial idea to make the investors and stakeholders confident about the growth of the organisation. 

Value creation also helps the employees to increase the value and the quality of operation, which helps them to achieve their personal goals and makes them loyal to the organisation, as this in turn reduces the cost of training the new employees and maintains the performance of the organisation to achieve the organisational goals. This also helps the organisation have a more healthy work environment where the employees are more coordinated and help each other to achieve the set team goals. Value creation also decides the cultural values of the employees, which help them to get easily connected to the mission and vision of the organisation and get motivated easily.  (Vanhaverbeke, 2018)

Entrepreneurship should be effective in analysing the driving forces that help the organisation achieve the workforce, which are very potential in nature. The entrepreneurs are also responsible for making the vision of the organisation according to the driving forces to achieve the objectives. The corporate strategy is the linkage between the intangible assets of the organisation and the value of the employees, which increases the performance of the organisation and improves the quality of the organisation. Innovation, technology, and intellectual property are the intangible assets and have to be analysed to relate it with the value creation of the organisation so that they can make a more successful and growing business. Kratko et al. (2017)

According to my knowledge, I have learned that it is very important for the organisation to understand all the driving forces and all the intangible, assets which help the business disorganisation grow, this also helped me to understand that value creation is the ethics and moral of the organisation which help them to increase the credibility in the market to take loans and improve the goodwill by attracting more customers and providing them with the better services and products increase their satisfaction level, as the value creation also help the customers to get the after-sales services and redress them with proper answers which help the customers to become loyal to that particular company (Lackéus, 2016). I have also understood the concept of the entrepreneur, and the innovative idea is very helpful in the value creation. The leadership styles and the management of change hold the organisational structure together to gain the maximum output. 

Value creation also helps the organisation to recruit the best employees according to the values, which will increase the value of the organisation and also connect with the culture of the organisation to decrease the cost of training and developing the new employees. I also understood that this is a very important factor for the industry, as it will help to adopt corporate social responsibility and make the organisation a leader in the industry (Galindo-Martín and Méndez-Picazo, 2020). In my view, all the organisation departments will increase the organisation structure, human resources, technology of the organisation, procurement, and all the activities that make the value creation chain. Value creation also has a very bright future as it helps the organisation to increase efficiency and it will also increase the economic growth of the nation, which will improve the standard of living, income level of the population, and education level. All these factors, in return, will help the market to increase the market demand and increase the demand of the market (Gertsen et al., 2018). 

Examples

There are many entrepreneurs who have increased the value creation process by innovating ideas and also providing the best knowledge and skills to the employees. 

1. Oprah Winfrey is a successful entrepreneur who is the richest African American in terms of wealth. The entrepreneur was born in a very poor family and saw very tough times in her life. She dedicated her life to getting knowledge, and she was also talented, which made her a very successful actress, singer, talk show host, producer, and media executive, which let her become the most powerful person in the country (Wrigley and Straker, 2017).
2. Steve Jobs is the most successful entrepreneur in the world, as he has the vision of becoming the most successful organisation in the world, and he dropped his education to pursue his career in the field. He eventually established Apple, which revolutionised the phase of computers and technology as we see today. He is also one of the world's richest men and has generated the idea to increase the value creation with his friends in the back of his garage at his home. (Haugh, Lyon and Doherty, 2018)

CONCLUSION

In this report, there was brief information about entrepreneurship and the creation of values in the organisation. As it had changed the way of dealing with the employees and increased their performances with more ease. Value creation also helps the organisation to motivate the investors and also create trust in the customer to increase the satisfaction level and increase the goodwill of the company. The entrepreneurial ideology always helps the employees create cultural value, which increases the efficiency of the business organisation.

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