Entrepreneurial resources are essential for any entrepreneur looking to start their own business. However, there is a tendency to misunderstand the phrase. Moreover, those who have access to these resources may not be using them efficiently. The entrepreneur themselves have to take responsibility for the mobilization of these resources. This is because the success of this mobilization decides whether or not the business will succeed. Hence, in this article, we will take a look at what Entrepreneurial resources actually mean and how they can be used efficiently and effectively.
The resources can be defined as assets, both tangible and intangible, that are mobilized by entrepreneurs in the process of building a business. If mobilized efficiently and effectively, the business can truly thrive. Some examples include sources of financing such as lines of credit and investment capital. However, it may also include abstract resources such as knowledge of a particular field or technology, or networks of contacts.
Every organization needs certain entrepreneurial resources to thrive. However, these resources can be both tangible and intangible. Let us take a look at some important ones to keep in mind.
Sources of financing: Every business needs working capital to function efficiently. Hence, it is up to the entrepreneur to arrange sources of financing to fulfill working capital and other financial requirements. However, sources of financing can be difficult to find. Investors are rarely confident enough to invest in early projects. Hence, this is where entrepreneurial spirit and self-belief comes in. Initially, one may have to invest their personal assets and savings into their venture and can look for other financing options like venture capitalist funding, loans, and so on.
Physical Resources: Physical resources are essential in building the infrastructure of a business. Office space, equipment, and employees are essential to improve productivity and drive the business to grow. In the growing digital age, these resources include telecommunication and hardware devices like laptops, phones, and internet connections. Without these technological provisions, communication and work can truly suffer. Moreover, with most businesses having an online presence, the internet becomes a tool through which companies build brand image and attain a competitive advantage.
Social resources: Networking is one of the most important jobs of an entrepreneur. Their network helps them generate leads, get investment, and build their brand. Moreover, social resources include the business’ public relations with the likes of the media and customers. A favorable reputation in society will always help a business thrive, driving up sales, and enabling the successful building of a brand.
Knowledge/Experience of the relevant field: Without the relevant knowledge and experience of the relevant field, an entrepreneur will not be able to bring success tot heir business. We mention experience here alongside knowledge because just being knowledgable is never enough. One has to know how to apply that knowledge to solve real-life business problems in order to succeed. Unfortunately, not everyone has that skill. If they did, every person with a college degree would be a successful professional!
Every entrepreneur needs to be a good leader. A good leader will inspire his or her team to achieve organizational goals and reach new heights. Notice how we did not say they need to be good managers. This is because a good leader is automatically a good manager, leading his or her team from the front and motivating them every step fo the way. A good leader symbolizes what an organization stands for. Hence, leadership qualities are one of the most important entrepreneurial resources one can have.
These were some of the most entrepreneurial resources entrepreneurs should have. If mobilised efficiently and effectively, they can be a sources of competitive advantage to the business in question. Do you agree? Let us know in the comments below!