Entrepreneurial Management Capabilities †Free Samples to Students

Question: Discuss about the Entrepreneurial Management Capabilities. Answer: Introduction: An entrepreneur, by definition, is a person that brings together resources in a business and undergoes several risks to make profits in business. The business world has become divergent with several factors presenting room for business products. Globalization has transformed the world population which has seen the number of Muslims as well as their influence increase in the world. The increasing population presents entrepreneurs with a new business product within the existent financial sector. As such, entrepreneurs stay alive to the fact and use the opportunity to secure new product lines within the business world. The paper looks at the sociological theories of entrepreneurs and the management capabilities it brings to their prospective businesses where it presents business opportunities developed from the already existing banking models. The banking industry has been existent in the Australian market offering various services including the provision of loan facilities to individuals. The mode of lending has over time remained the interest charging model on loans, which coincides with most cultures, apart from that of the Muslim faith. In this case, it presents a room for entrepreneurship where a product can be developed from the dominant model to suit the needs of the Muslim faithful (Schaper, 2016). The core business, in this case, remains the banking sector providing loans to all individuals and charging interest on the same while the developing one being the product that complies with the Sharia Banking rules observed by the Muslims. Therefore, a single product created from the existing is developed to meet the needs of the population while increasing the market share and amount of savings made without charging of interest. Sociology Theories of Entrepreneurship Theories existing try to prove the effect of sociology in entrepreneurship and the manner in which they influence change. One of the approaches is developed by Max Weber which features the spirit of capitalism, the risk-taking aspect, and the style in which religion propels the same (Gmsay, 2015). A leader in the different sphere of influence can affect the social nature of the business and the way people engage in the same. The theory believes that religion can cause a social change which in return gives entrepreneurs opportunities to explore in industry. Religious leaders or denominations remain a prime factor for social influence as in the case of some having a deep belief in earning and acquiring money through profits while some have less of the same (Stam, Arzlanian Elfring 2014). As such, entrepreneurship energies remain dependent on religious beliefs in the social sphere as they struggle to provide services and goods that go in line with different religious beliefs. The theory draws the assumption that every individual in the society bears the social and cultural power and, as such affect the decisions by entrepreneurs. In the long-run, the theory supports economic development and relevancy as the market widens. The different model of people and culture within a society determines a lot in the decision entrepreneurs can take in making profits (Schaper, 2016). Once one cultural power becomes dominant or gains a significant following, it presents a business opportunity to be explored by entrepreneurs. As different people become influential, so does their religious aspect, which leads to several changes and opportunities in business. The banking industry remains open to the benefits of sociological theories of entrepreneurship as the world becomes increasingly global. The arguments of sociology apply in the banking industry in Australia as evident in the way mainstream bank have to explore the option of developing Islamic Banking options which go along with the Islamic faith (Zahra, Newey Li, 2014). The new way of lending has gained popularity in the nation where the law applies to Muslims as per their religion. The notion of interest serves as the difference between western and Islamic banking thus creating the necessity for the entrepreneurial opportunity (Kuratko, 2016). Muslims, in most cases, decline standard loans as their law forbids the charging of interest. Thus, the banks have to develop a tailor-made product for the loans and the mortgage facility for individuals in the Muslim religion. Eventually, it led to the provision where home buyers make rent payments to financial institutions until a period where they can receive full ownership of property. The aspect coincides with their faith and thus offering a different business line apart from the conventional interest charging done over years. Deliveries and Changes Associated with Business The new product line presents a wide opportunity in expanding the market share of banks in the loans department. A section of the population that had secluded itself due to the religious factors receive accommodation thus growing their interactions with banks in the savings, investment, shares, and credit facilities (Ratten, 2013). Several changes in policies have to be made to comply with the required population. In this respect, the management needs to adopt the sharia law and at least employ people with diverse knowledge and preferably Muslims into the business segment (Leyden, Link Siegel, 2014). A deep understanding and correspondence to the same have to occur before marketing the product to the market. The new product line has to be advertised to the population through several agencies to reach the community adequately. At the same time, restrictions have to be made to cater for the group where the business has to remain exclusively for the Muslims while verifications documents remaining in use to ascertain the credibility (Gmsay, 2015). Cultural observations have to be made to prevent the product being misused by persons not qualifying within the provisions. Conclusion Entrepreneurship remains a key factor in determining the type of business or opportunity to explore. The ability to secure a distinct product line gives companies the capability to grow and develop their financial might. Entrepreneurs in the banking sector have to explore the options as the investment among the Muslims continues to increase. The banking sector can benefit from the theory of socialization which brings in the religious aspect of a business that has remained unexplored (Chaston, 2017). Exploring the channel leads to business development where a product line is developed from the existing market. Eventually, it leads to business growth as a new segment is tapped into thus growing the financial transactions in the banking industry. References Chaston, I. (2017). Entrepreneurship. InTechnological Entrepreneurship(pp. 1-24). Springer International Publishing. Gmsay, A. A. (2015). Entrepreneurship from an Islamic perspective.Journal of business ethics,130(1), 199-208. Kuratko, D. F. (2016).Entrepreneurship: Theory, process, and practice. Cengage Learning. Leyden, D. P., Link, A. N., Siegel, D. S. (2014). A theoretical analysis of the role of social networks in entrepreneurship.Research Policy,43(7), 1157-1163. Ratten, V. (2013). Social cognitive theory in mobile banking innovations. InMobile Applications and Knowledge Advancements in E-Business(pp. 42-55). IGI Global. Schaper, M. (Ed.). (2016).Making ecopreneurs: developing sustainable entrepreneurship. CRC Press. Stam, W., Arzlanian, S., Elfring, T. (2014). Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators.Journal of Business Venturing,29(1), 152-173. Zahra, S. A., Newey, L. R., Li, Y. (2014). On the frontiers: The implications of social entrepreneurship for international entrepreneurship.Entrepreneurship Theory and Practice,38(1), 137-158.