invisible hand

invisible hand

Term used by Adam Smith to describe the natural force that guides free market capitalism through competition for scarce resources. According to Adam Smith, in a free market each participant will try to maximize self-interest, and the interaction of market participants, leading to exchange of goods and services, enables each participant to be better of than when simply producing for himself/herself. He further said that in a free market, no regulation of any type would be needed to ensure that the mutually beneficial exchange of goods and services took place, since this "invisible hand" would guide market participants to trade in the most mutually beneficial manner.

The Entrepreneur!

The Entrepreneur for that reason includes any person who establishes and manages a business enterprise. 


This is the man or woman who owns a restaurant, fashion centre, boutique, bakery, tailoring outfit, beauty centre, barbering saloon, bookshop, home catering, business centre, shoemaker, car washing centre, photographing. Others are dry cleaning, video centre, tele-centres, wholesale trade, coffee and teashop, hotel, producers of yogurt, fruit juice, bottled and table water, nails, cellophane papers.


They are all businesses and each has a distinctive contribution to make in the development of the economy

Continuous Improvement

                                      Mount Everest in Nepal

People think that at the top there isn’t much room. They tend to think of it as an Everest. My message is that there is tons of room at the top- Margaret Thatcher,1988.

Innovation could be the best cure for fighting competition in business

Competing head to head can be cut throat, especially when markets are flat or growing slowly. Managers caught in this kind of competition almost universally say they dislike it and wish they could find a better alternative. 

They often know instinctively that innovation is the only way they can break free from the pack. However they mostly don’t do so.

Do you want to fight competition? 

Deploy the innovation firearm from your arsenal...

Differences between Innovation and creativity

Creativity is the process of generating new ideas while innovation is the change that creates a new dimension of performance.


Creativity is the individual personality traits that facilitate the generation of new ideas while Innovation is the act of introducing something new and the ability to deliver new value to a customer.


Lastly Creativity is about thinking about new things while innovation involves doing new things (Roy, 2008)

Classification of Entrepreneurs Based on Entrepreneurial Activity

Based on entrepreneurial activity, entrepreneurs are classified as novice, Nascent, Serial, Habitual and Portfolio entrepreneurs.

Coulter (2005) identifies five types of Entrepreneurs:

ž     Nascent entrepreneur

This is an individual who is in the process of starting a new business

ž             
      Novice entrepreneur

An individual with no prior business ownership experience. He could be the inheritor of business or purchaser of the business

ž     Habitual entrepreneur

An individual with prior business experience

ž            

     Serial Entrepreneur

An individual who has sold or closed business, established another new business, sold or closed the business and established another new business and sold and continue with this trend of starting or selling business.

ž   Portfolio Entrepreneur

An individual who retains an original business and builds a portfolio of additional business through inheriting, establishing or purchasing them

Difference between Entrepreneur and small business owner

The term entrepreneur and small business owner are sometimes used interchangeably.Although some situations encompass both terms,it is important to that there is a difference between two terms;whereas small businesses as  independently owned and operated,are not dominant in their fields,and usually do not engage in many new or innovative practices.Mostly never grow large and the owners may prefer a more stable and less aggressive approach to running the business.
Meanwhile the entrepreneurial venture are those for which the entrepreneur's principal objectives are innovation,profitability and growth.These businesses are characterized by innovative strategic practices and sustainable growth. The entrepreneurs may even seek the sale of business if there is potential for large capital gains.

Advantages and challenges of E-commerce for entrepreneurial firms

Advantages
1.Ability of small firms to compete with other firms/companies both locally and nationally and internationally(promotional tools)
2.Creation of the possibility and opportunity for more diverse people to start a business
3.Convenient and easy way of doing business transactions(not restricted to certain hour of operation,open 24 hours a day,seven days a week)
4.An inexpensive way(compared to the cost of paper,printing,and postage prior to the internet for business to compete with large companies and make products available in other countries.
5.High revenues for small businesses that utilize internet.
Challenges
1.Avoiding being a victim of fraudulent activities online
2.Handling the costs required to maintain the site
3.Finding and retaining the qualified employees
4.Assuring security for a website and the back in intergration with existing company system
5.Managing upgrades(anticipating business needs/application)

As a man thinketh is his or her heart so is he/she

If you think you are beaten, you are.
If you think you dare not, you don't. 
If you like to win but think you can't, 
It's almost a cinch you won't. 
If you think you'll lose, you're lost. 
For out in the world we find
Success begins with a fellow's will. 
It's all in the state of mind. 
If you think you are out classed, you are. 
You've got to think high to rise. 
You've got to be sure of your-self before
You can ever win the prize. 
Life's battles don't always go
To the stronger or faster man. 
But sooner or later, the man who wins
Is the man who thinks he can.

~ C. W. Longenecker.