Leadership and Institutions in Regional Endogenous

Question: Discuss about the Leadership and Institutions in Regional Endogenous. Answer: Introduction Entrepreneurship is a phenomenon in which the person launched or run a new business like a startup company, small business or selling a product or service to a customer. The person who launches a new business is referred as entrepreneur. Entrepreneurs play a vital role in upgrading the economy of the country. This is because, they bring innovations in their products and services which helps in improving the standard of living of the people of the country. Entrepreneurs create jobs and provide different employment opportunities to unemployed people. Besides this, they also provide training to the employees in order to upgrade their skills according to the change occurred in the business environment in order to remain competitive in the market. It also facilitates in bringing creativity in the marketplace by making huge investments in research and development. Besides this, it also focuses on bringing positive social impact by offering innovative products and services. Entrepreneurs ar e also capable of maintaining and building harmonious relationships with its stakeholders such as customers, financial institutions, government and investors (Casson, 2000). Entrepreneurs cater to the needs of niche market as they put forth the viable business plan. Besides this, entrepreneurs prefer to make investments in small companies as it strengthen the scope of the small businesses and thereby results in an increase in the economic growth and prosperity of the nation. Entrepreneurs try to provide high quality innovative product or service to a customer at reasonable prices which results in accelerating the economic growth of the nation. This is the reason that the government also promotes the innovative ideas of entrepreneurs as it has a significant impact on the economic growth of the country (Goossen and Stevens, 2013). In the beginning, entrepreneurs sell their products at low price which helps in spreading awareness among the potential customers about the product sold by them. This helps in increasing the market penetration of the product. With regard to this, the thesis statement is stated as entrepreneurship is merely a special case of leade rship. Entrepreneurship is merely a special case of leadership Entrepreneurship is the capability of the individual to explore, assess and exploit different opportunities available in the market. It is the ability of an individual to effective manage the potential risks associated with the new idea to be executed by them. An entrepreneurial leader has the ability to introduce innovations in the products and services offered by it. This is because it has a clear and wide vision and influencing powers to execute the vision in an effective manner. It also creates jobs for people of the country by the creation of a new venture and cope up with the changes occurred in the business environment. In ancient time, entrepreneurship and leadership are taken by exceptional intelligent people that bring innovation and grab opportunities available in the market. Besides this, they also make investments in unique ideas in order to accelerate the economic growth of the country (Francis, 2014). Entrepreneurs are regarded as risk takers who establish ventures and operate it at a risk for the purpose of attaining a gain. Entrepreneurs motivate and convince employees to perform a task in an cost effective manner for the purpose of providing best services to its customers. This affects the profitability and performance of the companies. Entrepreneurs analyze the business environment and consider all the obstacles and challenges for the purpose of making better business models and attract people so that deadlines and opportunities can be grabbed and met (Nothhaft, 2011). Besides this, entrepreneurial leaders quickly admit their mistakes and consider them as a challenge which has to be overcome for the purpose of attaining sustainable growth in the market. These leaders are flexible and adapt to the changes occurred in the business environment in a quick manner by making required changes in the policies and procedures of the company and communicate it to the employees. This is because; they are the valuable assets of the company. Such people make immediate changes in their business models for the purpose of adapting to the changes occurred in the business environment. Nowadays, employees are convinced by those leaders that exhibit both their strengths and weaknesses and project themselves as a real human being. This helps in creating authenticity of the leader. This help in convincing employees to brought a desired change in the organization to remain competitive in the industry. Successful entrepreneurs have the knowledge regarding their recognition among the employees which helps them to manage different teams of the organization effectively and efficiently (Ruminski, 2012). Entrepreneurial leader win respect from employees in the organization due to their actions pursued in the organization. Entrepreneurial leaders set goals that are realizable. Such leaders think in an innovative manner which helps employees to work out of their comfort zone and discover their potential hidden qualities. It is required for the entrepreneur to have integrity in their behavior towards employees in order to build trust among them. This helps in convincing people that the action taken by the leader is right and results in increasing the overall productivity and performance of the organization to achieve its common goal in a successful manner. In addition to this, a leader constantly assess the performance of employees which help them to get the knowledge regarding the problems faced by the employees and provide different options in which the problem can be overcome. This also helps in enhancing the skills of employees in the organization (Gonzalez, 2014). Entrepreneurs are alert towards recognizing of the opportunities rather than innovation which helps them to gain an advantage over other players in the market. Entrepreneurs recognize the opportunity and create jobs for people to convert the opportunity into the action. Entrepreneurs recognize the opportunity and make optimum use of the available resources in order to earn money from the opportunity recognized (Kelly, 2014). They get funds to exploit the opportunity from the capitalists and repay it with the interest from the profit attained by selling the goods and services offered by the company or business. It helps in catering to the changing needs of the customers in an effective manner. Entrepreneurs have the ability to get the knowledge of the present trend in the market and manufactures and sell those products which has high demand but not supplied in the market. This helps them to earn high profit as customers are ready to pay premium price for the products that fulfilled th eir unmet needs (Yu and Kwan, 2015). In addition to this, entrepreneurs have a need for power and achievement that drive their actions towards fulfillment of the needs of customers. Entrepreneurs perform activities in a better way and make decisions at the time of uncertainty which helps them to put their vision into reality for the purpose of earning high profits. Entrepreneurs achieve high level of customer satisfaction by creating new value through its products and services in a productive manner. In ancient times, there was a presence of hierarchal structure due to which followers do not have the opportunity to think creatively to generate ideas that improves their productivity (Barrett and Moores, 2009). Nowadays, entrepreneurs engage their employees in decision making process and give opportunity to think in a creative manner to resolve the challenges faced by them due to changes occurred in the business environment. Besides this, entrepreneur purchases inputs in the form of raw material, and labor to form a new product that meet the needs of the customers. Entrepreneur facilitates in bringing together the skilled employees to create productive items that fulfills the demands of customers and provide profit to the entrepreneur (Stimson, Stough and Salazar, 2009). Another characteristic of entrepreneurs is their risk taking ability. Entrepreneurs consider risk taking as a factor of production that prompts them to anticipate the future occurrence of the activity. Entrepreneur take different sources of production i.e. raw material, capital, labor and land in a collective manner in order to fulfill the unmet demands of the customers. Entrepreneurs have a comprehensive understanding of the industry in which they operates as a new idea is conceived by them to meet the needs of the customers for which there is a need to have a better understanding of the changes occurred in the business environment. Besides this, entrepreneurs have a better leadership skills which helps in convincing and motivating the employees to perform their jobs effectively in order to attain the common goal of the business (Baum, Frese and Baron, 2014). The success of an entrepreneur depends on three factors namely it understanding regarding the industry in which it operates, forecasting ability related to demand and supply and leadership skills. Along with this, the performance of entrepreneurs is also affected by the society as it plays a role aligned with the culture, and the role expectations of the society which are based on custom, beliefs and taboos of the society. Besides this, activities pursued by the entrepreneur are also affected by economic factors such as industrial policy, access to finance, ease of raw materials, information, infrastructure and technology. Entrepreneurs are known for their ability to innovate, foresight and creativity. An entrepreneur creates new products, develop new markets for its products and implement new processes to produce those new products at reasonable cost (Kariv, 2013). Nowadays, entrepreneurial leadership is viewed as a charismatic leadership as the leader has an influencing powers and drive innovative change in the processes and procedures to meet the changing needs of the business environment. It has a major contribution in the creation of the jobs and employment opportunities for the local people of the country that would result in enhancing the economic growth of the company. Besides this, it also provides different ways in which an established organization can cope up with the changes occurred in the business environment (Hulsing, 2009). Earlier, leadership and entrepreneurship is considered as an act of exceptional people as innovations have been emerged through spotting new opportunities by such people in the market. Entrepreneurship is considered differently by different people. Some people align entrepreneurship with innovation and creativity; others include vision, personal traits, market readiness, resourcefulness and organizational lifecycles. It is considered as a broad term that takes into consideration all the features mentioned above (Greenberg, Sweet and Wilson, 2011). Leadership is a process through which the leader communicates the goal and objectives of the business to its employees. For the purpose of communicating the information, leaders use their knowledge, skills, abilities, beliefs and values. Different leadership styles are used by the leaders to achieve the common goal of the business in an effective manner. Communication or exchange of views, opinions and thoughts of leaders with its followers and employees helps in building harmonious and strong relations with them. Effective leadership helps in inspiring and convincing people to exhibit their skills and knowledge to perform challenging tasks in an effective manner. Leaders communicate the relevant information regarding the vision, mission and measurable goals to the team in a timely manner so that they can be achieved in a successful manner (Etemad, et al., 2013). Leaders also uses schedules and proper planning of the activities to be carried out to attain the goal of the business in a successful manner. Effective leadership helps in motivating people to increase their efficiency and develop team capabilities in order to carry out different functions of the organization in a proper manner for the purpose of attainment of the common goal of the business in a successful manner (Ensley, Pearce and Hmieleski, 2006). It is essential for the leaders to analyze different opportunities available in the market and bring improvement in the existing processes and procedures in order to gain a competitive edge over other players in the market. Leadership creates huge contribution to performance and high profits. In addition to this, entrepreneurship has a drive of innovation and focuses on bringing large improvements in order to perform different activities in a new manner to achieve success in the market. Entrepreneurship helps in increasing the income level and decline in the poverty levels in the country by creating jobs for unemployed people. It gives direction to the development of the self in terms of flexibility, dedication, creativity, determination and self confidence. It also helps in creation of different options for meeting different needs and opportunities in social and economic factors of business environment (Sung, Gibson and Kang, 2003). These factors also help in occurrence of the continuous learning at the organizational level. Entrepreneurs motivate their employees to perform in a better way to achieve the task and the objectives in a proper and successful manner. Besides this, entrepreneurs develop some personal skills and abilities that help them to achieve success at the time of start up of the business. Entrepreneurs uses innovative ideas and strategies to meet with the business challenges in an effective manner. It is required for the entrepreneurs to develop an effective communication plan and communicate with the suppliers, customers and other important stakeholders directly for the purpose of gaining knowledge regarding different ideas that involves creativity to perform the task effectively. It mainly focuses on growth of the economy by the way of innovation and creation of new opportunities for the society as a whole (Fernald, Solomon and Tarabishy, 2005). Besides this, it also aimed at protecting the intellectual property of the business and make investments in research and development for the purpose of the development of an innovative product which helps in differentiating the company from other companies. It also helps in receiving premium price for the innovative product by the customers. This is because it leads to the fulfillment of the unmet need of the customers. In case of leadership, the leader has the ability to realize the vision of an organization. The entrepreneur gets financial benefit from the leaders as they have common characteristics in front of the business (Eyal and Kark, 2004). Entrepreneur brings important changes in the business as per the changes taking place in the business environment in order to improve the overall productivity and performance. Besides this, it also results in gaining competitive advantage over other players in the market. In addition to this, it also drives economic growth of the countries by creating job opportunities through creation of new ventures. It deals with the way in which opportunities are discovered in terms of new products, market value and services along with its consequences (Cogliser and Brigham, 2004). For the purpose of exploring such opportunities, entrepreneur uses different strategies, personal traits and management tactics in order to implement it in a successful manner. It is also considered as a leadership style as it facilitates in engaging employees in implementing a change in the organization by providing information related to the changes brought in the organization along with its benefits. Besides this, it also takes into consideration the different options suggested by the employees and other stakeholders to implement the change in an effective manner in the organization. This helps in increasing the motivation level of the employees to perform challenging tasks in an effective manner (Chan, 2012). Participation of the employees in the decision making process results in increasing the commitment level of the employees towards the organization. Entrepreneurs mainly focus on bringing innovation in the processes and procedures with the help of available opportunities in order to remain competitive in the market. Entrepreneurship is a broader term in comparison to leadership. It also takes into consideration the characteristics of leadership (Colbert, 2003). A successful entrepreneur can be a successful leader but it is not necessary that a successful leader to be a successful entrepreneur. The main reason behind it is that an entrepreneur establishes a new business to provide new products and services to potential customers and is driven by innovation. Entrepreneurs think differently in order to come up with a new idea of starting a business and grab large market share by making innovations in the processes and procedures for the purpose of grabbing new opportunities in the market (Vecchio, 2003). Along with this, leaders do not evaluate different opportunities to establish a new business but adopt changes in the established business by encouraging employees to accept the change by communicating the information related to the desired change brought in the organization. This helps in familiarize them with the change and its implications to the employees. Besides this, leaders also aids in solving the issues faced by the employees by providing them training to develop and enhance their skills and abilities to perform well in the organization for the purpose of achieving the common goal of the business effectively and efficiently (Fernando, 2007). Conclusion It can be concluded that entrepreneurship is a phenomenon which helps a person to innovate and develop new products and services to meet the unmet demands of the customers. It analyses different opportunities available in the market and accept the changes occurred in the business environment in a quick manner so as to attain competitive advantage over other players in the market. Besides this, entrepreneurs create new jobs and employment opportunities for the local people of the community and contribute towards the economic growth and prosperity of the nation. In addition to this, leadership emphasizes on the bringing change in the strategies, processes and procedures as per the changes occurred in the business environment. In addition to this, it also engages people in the decision making process as they are affected by the change to be occurred in the business in terms of policies and procedures. Entrepreneur communicate the relevant information related to the business policies and procedures and interact with them directly in order to grab the opportunity available for the purpose of providing high level of satisfaction to its stakeholders. In a similar manner, leaders also communicate information related to the changes to be implemented in the organization beforehand which helps in building trust and loyalty among employees towards it. This helps in improving the performance and productivity of the whole organization. Thus, the thesis statement can be restated as the entrepreneurship is not merely a special case of leadership. 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