Low and MacMillan (1988) defined entrepreneurship as the "creation of new enterprise. " Entrepreneurship is also defined as the process of pursuing opportunities without regard to resources currently controlled (Stevenson and Jarillo, 1990). It can be said that the current world we live in today with all its benefits are the results of entrepreneurial activity by people. The concept and scope of entrepreneurship is constantly evolving and more research is conducted into the study of entrepreneurship. According to Bygrave and Zacharakis (2004), some entrepreneurs will have similar attributes or characteristics while other will not.
So, what makes an entrepreneur? This essay will focus on two successful entrepreneurs and attempt to analyse their entrepreneurial path with the use of relevant frameworks. The essay will start off with a short background about the entrepreneurs and proceed to comparing and analysing the two of them attempting to use frameworks to identify their motivation and trigger into entrepreneurship, factors that helped or hindered their progress, how successful they were in implementation of their ideas and how they were able to grow their organisations.
The major tool that will be used in carrying out the analysis is the Bygrave and Zacharakis (2004) framework and other frameworks would be used to support and focus on certain aspects of the analysis. The essay will conclude by pointing out identified factors that lead to their success and point out the writer's beliefs about what makes an entrepreneur and how to succeed as an entrepreneur. Yemi Dada was born in Nigeria and still resides there.
Yemi grew up in an impoverished atmosphere and used to hawk for her grandmother to earn money for upkeep. Yemi graduated as a pharmacist in 1980 with honours. She practised in a government hospital for about three years before leaving to start-up her business. She started her first retail store in 1983, and has since opened about 5 others. She currently combines managing this businesses with her other commitments to the church and other charity organisations she runs with another friend. 2. 2 STEVE JOBS
Steven Paul Jobs was born February 24, 1955 and is co-founder, and CEO of Apple Inc. Which he co-founded with Steve Wozniak. Jobs created one of the most successful personal computers and in the 80s he was among the few who thought the mouse will be commercially viable. Steve Jobs was listed as Fortune Magazine's Most Powerful Businessman of 2007. Jobs acquired Pixar animations studios in 1986 until its acquisition by walt disney in 2006. Jobs is currently a member of walt disney company board of directors. 3. 0 THE ENTREPRENEURAL PROCESS
Bygrave and Zacharakis Framework (2004), explains the entrepreneurial process as a combination of personal, sociological, and environmental factors, which influence an entrepreneur from the beginning stage of business innovation to the maturity stage. 3. 1 INNOVATION The major factor in the environment that had an impact on Job was opportunity and creativity. Job's adopted parents were very indulgent parents who even moved locations at one time because of Jobs. Jobs grew up spending most of his time around older people like Wozniak.
He had summer internships at Hewlett Packard and working with such smart people created an atmosphere for his creativity to grow. Job's most early show of creativity was when he took a job to improve the design on a chip. He gave the work to Wozniak, and he received $5000 for the job but told Wozniak he was given only $600 and ended up giving Wozniak only $300. Jobs always showed strong confidence and leadership skills which was one of the things that got him his Job at Hewlett Packard (HP) when he was bold enough to ask a manager for the parts he needed to finish an assignment.
Bolton and Thompson (2004) cited Hisrich, 1990 that leadership and self confidence are important factors in the emergence of entrepreneurs. The skills and networks he had acquired working for HP influenced his decision later on to start Apple which he co-founded with someone he met working at HP. Yemi was born into an entrepreneurial family. Her grandmother ran a fuel distributorship and Yemi often helped out in running the business and earn some money. Her grandmother served as a role model and probably endeared her to running her business.
This may support many school of thoughts that being familiar with entrepreneurial activities increases the chances of growing up to become one. (Bolton and Thompson 2004). She also was highly intelligent and studied from primary to university on various schorlarships. Jobs on one hand started his own thing with no history of an entrepreneurial family while Yemi could be said to have grown into the idea. 3. 2 TRIGGERING EVENT Jobs' trigger occurred in 1975 and was attributable to his capability to recognize possible money making ventures.
Wozniak developed a circuit board and Jobs considered the possibility of combining it with a microprocessor to make a computer. This thought gave birth to Apple computer, right in Jobs' bedroom. For Yemi, her triggering event was lack of job satisfaction. She realized that although she was well paid, she was not fulfilled. So she started out with about N600 in 1983 (the money she received as gifts at her child's christening) to travel and buy commodities she could sell in a retail shop.
It seems both of them echo Bolton and Thompson (2004)'s belief that real entrepreneurs do not need to be pushed to start off, but that they motivate themselves into starting. 3. 3 IMPLEMENTATION Figure 2 – Opportunity Recognition Process (Barringer and Ireland, 2008) Jobs capitalised on the rising demand for personal computers (PC) in the late 1970's. He identified a store owner who wanted 50 PCs to sell to college students. Jobs and Wozniak sold their first PC for $666. They immediately filled the demand they recognized and ended up selling about 600PCs making $774,000 in the process.
In the following year they sold over 16,000 PCs. Then Jobs started tinkering with the idea of competing with IBM and realised he would need more marketing and he brought in more people. Eventually Markhula (a venture capitalist) bought into the company and within the next three years, apple had a growth of over 700% (about $139mn). [Halliday, 1983, p. 206] This was a huge feat considering the research according to Burns (2007) that many start-ups fail within the first three years. Yemi as stated earlier started with money she received as gifts and started her first retail store from that.
The impact of the family sociological factor in the Bygrave and Zacharakis (2004) framework is seen in Yemi's starting with money she received as gifts and Jobs receiving help and assistance from friends. Yemi developed her credibility and got wholesalers and distributors to sell to her on credit, eventually she grew her business through using other people's money, thereby reducing her own risk. Apple's success came when Jobs was able to envision competing with IBM and the entrepreneurial spirit of believing in himself played a huge role in this.
Eventually, Apple became the standard setters in the personal computing industry. Effectual reasoning according to Sarasvathy (2001) was employed by both Yemi and Jobs. They both used their personality, networks and knowledge of the market in carrying out their plans successfully. 3. 4 GROWTH The next stage in the entrepreneurial process is the growth stage. Many models could be used but the one that best fits the 2 entrepreneurs being considered is the Churchill and Lewis (1983) model shown above. According to the framework shown above, the limiting factor to growth is access to resources required for growth.
Yemi was able to gain access to the financial resources she required having established her integrity and brand image. She was able to get financing from the bank which she used to open another outlet in 1988. Another key resource required for growth is management. Yemi was able to retain and keep her staff loyal by allowing them opportunity to grow within the organization. Currently each one of her stores is managed by staff that used to work with her and grew into management roles. Jobs got the needed financials especially after Apples went public in December 1980 with its initial public offering of stock, becoming Apple Computer.
Shares opened at $22 but increased to $29, making Apple's value $1. 2bn. Jobs owned 15% of the company stock and was the leading shareholder. His shares were worth about $239 million. Over the next 5 years, Jobs had no official authority but ruled by sheer force of personality. 4. 0 A SUMMARY COMPARISON The nine F's framework which identifies factors that differentiate a successful entrepreneur from the 'also – rans' is used in summarizing the analysis because the factors it considers affect both the entrepreneur and the firm (Bygrave and Zacharakis 2004).
5. 0 CONCLUSION The essay clearly point out that entrepreneurship is a process and a journey not a destination. The success or failure of entrepreneurs does not depend on their personal wealth or how much they start out with, but on recognition and exploitation of opportunities, resources and skills available. Entrepreneurial background is not necessary to become a successful entrepreneur as Jobs exemplifies, neither must entrepreneurial endeavours be started only when pushed, as Yemi started left the comfort for the unsure in starting her own business.
Entrepreneurial traits which stand out include self belief, confidence, commercial awareness, opportunity recognition, risk taking, analytical and innovative skills. The impact of friends and social networks has also been shown to play a large role in entrepreneurial endeavours. I will conclude by saying that although some entrepreneurs discover themselves earlier in life, it does not rule out those who did not discover themselves early. Societal and environmental impacts play a greater role or impact in determining entrepreneurs compared to genes.
6. 0 EVALUATING MY ENTREPRENEURIAL PROFILE
I began running one of my mother's retail shops at 15years. I finished college, worked on a short term project, did a stint for 6 months in a bank, I found it boring so I moved to New business development and product innovation. I worked for over a year and moved to brand management. I was about getting bored so I came for my MBA. One things I find that plagues me is I get bored easily. I often wondered if I should start my own company and if I have the entrepreneurial mindset and skills to succeed in it. I used the Entrepreneur Next Door and the GET2 online tests to measure myself and provided a summary of the information in table (d).