In the previous post titled as entrepreneurial success factors among the most important factors in the hierarchical structure of factors that make an entrepreneur to be successful entrepreneur is the willingness to take entrepreneurial action.
Yes, your job as an entrepreneur will require from you many entrepreneurial activities and actions that will need to be done on a regular basis.
Let’s Start With a Definition of Entrepreneurial Action
Simply, an action is something that a person can do and are doing in order to make changes happen in his close and broader environment. For example, you walk, talk, eat, drink… Each of these actions will bring some type of changes in you body, but also they can have effects on your family, your kids or everything else that will be related to you in a specific situation in which you take some actions.
On the other hand, entrepreneurial actions are actions that will have some type of entrepreneurial activities. For example, starting a business, investing in something, expanding the business, improving the business, marketing products and services… All of these are different types of entrepreneurial activities.
All entrepreneurial action taking processes generally are composed of two steps:
- First step: Making the decision to take an entrepreneurial action.
- Second step: Implementation of the decision that you have made in a previous step related to the specific action.
Making Decisions About Entrepreneurial Action
If you as an entrepreneur have decided to take an entrepreneurial action, you will be on a half way of full action implementation.
This is the most important element in this process. Why most important? Simply, because if you as an entrepreneur don’t make a decision to take a specific action, the action will not happen. That’s the fact.
How much faster is the process of decision making, the faster will be the process of overall action taking.
How much better is the process of decision making, the better will be the implementation of a specific action related to that decision.
However, on the other side you need to be aware that the speed of the decision making process will affect the quality of the decision. So, you must optimize the process if you want to achieve the best results for each entrepreneurial action you are doing.
Usually, decision making process can be done in the following steps:
- First step: Problem discovery.
- Second step: Collection of information about the already discovered problem.
- Third step: Preparing different types of alternative solutions.
- Fourth step: Analyzing and evaluation of each of the alternative solutions.
- Fifth step: Selecting the optimum solution – which in our case will represent entrepreneurial action.
Implementation of the Decision Related to Entrepreneurial Action
When you already know what you need to do, you will also know all other necessary steps for particular entrepreneurial action.
However, this sub-process, can easily become a reason for the failure of the whole action taking process. If you don’t implement the decision, there will not be an entrepreneurial action.
Once you made a decision to take any type of action, you must implement that decision without additional thinking or hesitation. Thinking is finished with the process of decision making. This is the end of the story.
What Will Impact on Taking Entrepreneurial Actions?
There are several elements that will affect an entrepreneur to take an entrepreneurial action. Some of these elements are reflected in our key factors of successful entrepreneurs (self-confidence, experience, knowledge and risk).
If your self-confidence about action is larger, then there will be more probability that you will take that action. Otherwise, when self-confidence is low, the probability that you will take those actions will also be low.
Interestingly, self-confidence is based on knowledge because larger knowledge you have about the specific topic related to your action, the larger self-confidence you will have. On the other side, if the knowledge for the specific problem that need to be solved with your entrepreneurial activities is larger, the solution will be much more easier.
If you have enough experience for the specific entrepreneurial activities and actions related, you’ll be more able to take those actions. Otherwise, when you don’t have enough experience you will feel as someone still unprepared for that type of actions. In such a way you will delay taking action.
4. Fear of Failure and Consequences If You Made a Mistake
The possibility of mistakes will always be around you, regardless what type of entrepreneurial actions you will take. So, it is normal for you to have a fear of making a mistake. However, the biggest mistake can be if you don’t take anything as an entrepreneurial action.
For each decision and any entrepreneurial action, there will always be possibilities for risk. The risk will occur when you go out of your comfort status quo situation. On the other side each decision and entrepreneurial action will directly hit your comfortable position and because of that, the risk will be a consistent ingredient in the whole process.