Mind vs. Money
Entrepreneurial environment is full of challenges and the entire team is bound to face them. Now the question is, what is more important, mind or money, as both are vital elements for an entrepreneur.
For established entrepreneurs, mind is more important than money as they have already invested as well as earned, and now they are in a stage of expansion. New entrepreneurs prefer money more over mind as they want to settle.
Money transforms ideas into reality. As we know ideas comes from the mind; without mind money may not be properly distributed and utilized. Money affects the economic activities whereas mind affects the activities of the firm.
Mind is the route of creative idea, idea leads to innovation. An idea shows the mission and vision whereas money shows the way to achieve that mission and vision.
Determinants of Entrepreneurial Success or Failure
Being a successful entrepreneur means more than just starting a new business every other day. It means the right attitude towards the trade and the determination, along with the barriers to be faced to achieve success.
To an entrepreneur, failure is a positive experience which is considered as a challenge or opportunity for growth in the form of a prerequisite to success, a profound teacher, a future value-adder, a provider of new direction, an enhanced motivator, a path to achievement and even as a relieving liberator.
Failure and success of an enterprise is dependent on two factors −
- Internal factors
- External factors
Internal Factors for Success
Factors that affect the organization internally and contribute to the success of the firm are known as internal factors of success. These factors include efficient management, good quality product, quality goods & services, good reputation, low cost production, effective marketing, proper financing, dedicated manpower, proper technology, and proper time management.
External Factors for Success
Factors that affect the organization externally and contribute to the success of the firm are known as external factors of success. These factors include availability of appropriate raw material, quality manpower, high demand in the market, government policy, low competition, and new market.
Internal Factors for Failure
Factors that affect the organization internally and contribute to the failure of the firm are known as internal factors of failure. These factors include ineffective management, old technology, poor financing, ineffective marketing strategies, low quality of raw materials, low human relations, and poor leadership.
External Factors for Failure
Factors that affect the organization externally and are responsible for failure of the firm are known as external factors of failure. These factors include shortage of raw material, shortage of power, shortage of manpower, poor finance, change in technology, high competition, negative government policies, and increase in supply and availability of better substitute.
Environmental Dynamics & Change
An enterprise exists within an environment. It is affected by various environmental factors. Good and favorable environment helps the company to survive and grow. This type of environment is dynamic in nature. It changes because of different factors and conditions. This further creates new challenges.
An organization should always be ready for everything and anything that the future holds. These changes may be desirable or undesirable. Some changes are made by the entrepreneur for self-benefit however these changes are not constant in nature.
