Discuss the resourses that can help in launching an innovative and enterprising project and identify the skills required in the creation and success of the project
Romdon
essayplanresourcesandskills1.docxHaitem Salmane 18037633
Introduction
According to the Federation of Small Businesses (FSB), experts in business research, there were a record number of 5.7 million private sector businesses in the UK at the start of 2017. An increase of 197,000 from the year before and a massive 2.2 million more than in 2000 (FSB, 2017). This essay will look at a few entrepreneurs spearheading new and developing businesses in the UK. The essay will further analyse the resources available to entrepreneurs and how these resources have been effectively put to use to their benefit in launching new projects. Lastly, this essay will examine the entrepreneurial skills required to complete a successful project.
· Paragraph 1
Idea/ argument: The human capital of a project will have a massive impact on how successful the project may become.
Human capital expresses the investment that organisations make in people, mostly in employees their training, education and health (Goldin, 2014). Human Capital is based on the concept that organisations should create an environment where people are valued and encouraged to maximise their abilities (Rajaram, 2011). The more an organisation invest in human capital the more they are likely to succeed - due to the fact that everyone within the organisation will work to their highest capacity.
Another resource that is key in order to communicate with Partners, Stakeholders, suppliers etc. is a good social capital.
Social capital is the practice of developing and maintaining relationships that form social networks willing to help each other (New England College, 2018). No business or project can succeed without the support of other organisations. Building a good social capital can enable businesses and entrepreneurs to build bridges with the community.
· Paragraph 2
Idea/ argument: What makes some organizations more successful in dealing with, and responding to, the unfamiliar?
The term ‘resilience’ has been used at the organizational level to describe the inherent characteristics of those organizations that are able to respond more quickly, recover faster or develop more unusual ways of doing business. (Sutcliffe and Vogus 2003). Every organisation will encounter a difficult situation, it’s how they respond or bounce back that will measure their resilience.
· Paragraph 3
Idea/ argument: How important is it for organisations to manage their risks?
By eliminating downside risk and reducing the expected costs of financial trouble, risk management can help a company to achieve both its optimal capital structure and its optimal ownership structure (Stulz, 1996). New businesses and projects are heavily exposed to systematic and idiosyncratic risks. Many of the risks can be uncontrollable that’s why it’s important for organisations to have a strategy in place.
· Conclusion
It has been proven that most new projects struggle to get off the ground. Research shows that 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10 (FSB, 2017). A strong human and social capital can be a great advantage to start-ups. All risks must be managed from the beginning to prevent failure and when the project is threatened, resilience will come into play in determining how the organisation will bounce back.
References:
FSB (2017) UK Small Business Statistics . Available from
https://www.fsb.org.uk/media-centre/small-business-statistics [accessed 25th October 2018]
Goldin, Claudia (2014) Human capital Handbook of Cliometrics . Available from
http://scholar.harvard.edu/files/goldin/files/human_capital_handbook_of_cliometrics_0.pdf
New England College (2018) the importance of social Capital . Available from
https://www.newenglandcollegeonline.com/resources/sociology/importance-of-social-capital/
Rajaram. R (2011) Human Capital . Available from
https://www.cambridge.org/core/books/human-capital/2A546CE9F0EE5C511FCEA1B8B749C141
Stulz, M. René (1996) RETHINKING RISK MANAGEMENT. Available from
https://onlinelibrary.wiley.com/doi/full/10.1111/j.1745-6622.1996.tb00295.x
