Discuss about the Entrepreneurship and Economic Growth System.
`With the increasing ramification of economic changes and increasing demand of people entrepreneurs are coming up with new ideas and thoughts throughout the time (Audretsch, 2007). It is evaluated that each and every person who want to start up a business need to arrange several resources for the implementation of entrepreneurial activities (Audretsch, Falck, and Heblich, 2011). Luck is a major component which is as necessary as other resources for the success of organization (Parker, 2009). Luck could not define in either quantitative or qualitative terms. It is mere possibilities of positive happening if everything goes right in business.
Entrepreneur can be defined as the way to design, launch and run a new idea as new business typically known as the startup company which offer a new kind of product, service to the society and the person who are involved to take lead in such kind of service are called Entrepreneur. In this report Jan Koum is aUkrainian American internet inventor and computer programmer. He is the CEO and Co- founder of Whats app (Malm, 2014). After inventing Whats app which is world famous app developed with a view to make messaging experience of clients effective. He has been following cost leadership and product differentiation strategies to make its products effective in the given business line. However, he always believes in providing customized services to clients. He has depicted that the main key ingredient of making success in business is clients oriented business functioning. He believed in Launching a super new idea at world stage and if it is supposed to be very useful to the society then it will create new wealth simultaneously destroy old industry while ushering in new industry and approaches
I have read and searched lot about him and came to know that he has been following effective code of conduct, effective business functioning and inspiring life style.
There were several attempts which were adopted by him as how to overcome hurdles and conflicts in effective manner. It has been observed that for the startup companies it is necessary to take all economic decision right which sometime is not possible because of lack of decision making capability. Jan Kaom was born in Kiev, Ukraine and a Jewish origin. In 1997 he was hired by Yahoo as an infrastructure engineer. He worked there for 9 years. Throughout his life, he made several attempts for starting up business. He gave interview in Face book in January 2009 and got failed to get job in the same. Afterward he tried his effort to incorporate an app for the users so that they could easily have conversation with each other in better and effective manner. Whats app became popular in just short span of time. Jan Kaom is also a part of hackers group called w00w00 which is accompanied with talented people (Steve, 2014). He has spirit that would be considered with innovation and risk talking. He has capacity to develop his idea into business by taking risk in order to earn profit. In addition to this, he always identified the opportunities in many ways and in many field of business like textile, investment in share market ,developing social networking site to connect people etc. Jan Kaom grabs the opportunity and implies his idea to develop new product or service or even new industry and create wealth from them. He had a kind of leadership which acquired and deploys all the resources need to accomplish goals and objective. Entrepreneur responsible for all failure and success ,he developed a business plan and to imply such plan he hired human resources & acquired raw material and took financial support for the same ( Winograd and Hais, 2014).
Jan Kaom is also a part of hackers group called w00w00 which is accompanied with talented people. With the assistance of this group he could be able to grab this innovative idea. He was brought up by his mother who died in 2000 due to her life limit illness. He was dropped from collegeand was inspired by his own ideas and thoughts. He had vision to become entrepreneur. However, his desire to become businessman increased when he got rejection from Face book Corporation after his interview. The main inspiration for his career which he quoted is her mother. He loves his late mother a lot. There were several events in which he was assisted by his co partner Brian Action. He assisted him in each and every field in determined approach (Siromani,et al. 015).
Throughout his life he had to face several events which made him stronger. There were some events which could be taken into consideration which reflects his success journey.
In Feb 1996- At that time restraining order was granted against Koum in state court. In this incident, there was allegation that he had verbally and physically threatened his girlfriend. This incident put bad impact on his image and resulted into destruction of his brand image in market.
In 1997- He was hired by Yahoo as an infrastructure engineer. He worked in this company for 9 years and developed extra ordinary skills.
Dec 2008- At this time Koum and his fried Action applied in Face book for a particular job and both got rejected for the same. After a very short span of time, he and his friend both indulged in invention of Whats app. This App was developed with a view to increase the experience of users in messaging.
Feb, 2014- After a certain period of time Whats App became popular and this caught face book attention. Zuckerberg asked him for dinner at his home and gave him deal to join Face book board. After that meeting, he entered into strategic alliance with Zuckerberg asked for consideration of USD $19 million.
May, 2010- Whats app became world recognized app and theclient’s numbers were increasing very drastically. It increased total turnover of company very effectively and resulted into core competency in this filed.
November 2014-Koum was very enthusiastic in developing a business structured accompanied with CSR practice. He donated $1,000,000 to the Free BSD foundation. He followed effective code of practice in his business functioning.
He had to face several up and down in his life which made him stronger. His experience in Yahoo finance helped his analytical thinking process. He learned how to evaluate all internal and external factors for effective running of business. In addition to this, luck factor has also played a very important role. Let’s just suppose if face book had hired him in 2009 than in this case he would have not come up with this Whats app idea. Therefore, it could be inferred that whatever happens in life happens for good things. Koum has learned several things form the up and down of his life which has made him the person what he is. As of now, he is working with Face book and providing its employees a direction and vision for the betterment of Face Book Corporation.
The Entrepreneurial style and attitude developed by Jan Kaom is completely different from others. He knew all the time what their clients want from his organization. He believes in providing customized products and services to customers. He reflects that consumers are 50% more happy if they are offered customized products for their wants and need as compare to standard products. He divulged that if clients are satisfied with the products and services offered then there will be no hurdle in entrepreneur ways which can restrain him from becoming successful (Valliere and Peterson, 2009). He also follows Entrepreneurial Theory that if risk associated with return is very less than a businessman should indulge in taking that risk. (Hannafey, 2003). Risk and return are the two important aspects which should be taken into consideration very carefully (Ucbasaran, 2007). It was found that Jan Kaom developed an innovative business which was completely different from others in the market. Therefore, the success of business were totally based upon the product differentiation and cost leadershipskills. He had been providing its services and products at very cheap cost which eliminate all possible messaging problems and enhanced messaging experiences effectively (Horton, 2014).
Entrepreneur is the persons who is ready to take high amount of risk from his business functioning ( Bowen and Clercq, 2008). It is the person who is ready to take the risk for creating value on the investment amount. He never took high amount of risk in its business. He was always open with analyzing internal and external factors of business. He has showcased that risk is related with the chance of adoption of products offered in market. If products are accepted then it will result into increment of total turnover of the company. It has been envisaged that risk and return both are parallel to each other. It is the fact that if a person wants to earn money on its investment then he should take level of risk required for the same. After his experience in Yahoo he learned how to manage things and how to make analysis of market. It has helped him to reduce the considerable amount of risk which has showcased how a business could be successful with less uncertainty (Liukkonen, 2016).
After analyzing all the information about Jan Kaom it is observed that he sold more than $ 2.4 billion worth of Face book stocks (Wagner, 2015). It has been considered that he has financial stocks of more than $ 40 million property. He has invested his 50% capital in several technical businesses with a view to make effective use of his capital (Steyaert, 2007). He owns numerous assets around the world. In addition to this, Face book has also offered high amount of stock ownership which is computed to be around $ 5 billion more.
`I have researched numerous factors and figures which has divulged how Jan Kaom has become successful businessman. It is considered that luck has played an effective role in the success of Jan Kaom. By evaluating all the data and detail analysis of this report I came to realize that his success depends half on his hard work and half on his luck. Luck has played a pivotal role in his success. There are several times when he got caught in unfavorable situation which surely reflects loss to his business.
There was a time when he was rejected from Face book when he applied for job. After that, he indulged in developing Whats app for the users. It was his luck which forced him to make efforts for his success. Over the past 20 years he had built a strong career first one was related with experience in yahoo finance and other one is related with developing Whats app for the users.
There are several learning things which we could get from the past experience and milestones of Jan Kaom .As per my perception he has achieved tremendous success in his life. He has acquired several unexpected things in life which he never desired for. However, his hard work and his skills have reflected how dedicated he is for his work. He started his career being an employee earning vey less salary and now he has become world top most entrepreneur. Now in the end it would be inferred that success cannot be achieved mere with hard work but there is need a push of luck which make business successful.
References
Audretsch, D. B. (2007). The Entrepreneurial Society Oxford. Oxford University Press.
Audretsch, D.B.O., Falck, S., Heblich. (2011). Handbook of Research on Innovation and Entrepreneurship. Cheltenham, UK: Edward Elgar.
Berkowski, G., (2014). How to Build a Billion Dollar App: Discover the secrets of the most successful entrepreneurs of our time. Hachette UK.
Bowen, H. P., and Clercq, D. D. (2008). “Institutional context and the allocation of entrepreneurial ef f o r t.” Journal of International Business Studies 39: 747–767.
Hannafey, F.T. (2003) ‘Entrepreneurship and ethics: A literature review’, Journal of Business Ethics, 46(2): 99-110.
Malm, S. (2014). The Ukrainian immigrant on foodstamps and the Facebook reject: The rise of the WhatsApp duo and how they sold their messaging service for $19 BILLION. Retrieved on: 1 april 2017. From : https://www.dailymail.co.uk/news/article-2563513/From-food-stamps-billionaire-How-WhatsApp-founder-went-struggling-immigrant-founder-19bn-messaging-service.html.
Parker, S. (2009). The Economics of Entrepreneurship. Cambridge: Cambridge University Press.
Siromani, U., Thasian, T., Isaac, R., Selvaraj, K.G., Daniel, D., Mammen, J.J. and Nair, S.C., (2015). WhatsApp: A new tool for recruitment and retention of voluntary blood donors. International Journal of Advanced Medical and Health Research, 2(1), p.72.
Steve, O. H. (2014). Inside The Billion-Dollar Hacker Club. Retrieved on: 1 april 2017. From: https://techcrunch.com/2014/03/02/w00w00/.
Steyaert, C. (2007) Entrepreneuring as a conceptual attractor? A review of process theories in 20 years of entrepreneurship studies’, Entrepreneurship and Regional Development, 19(6): 453-477.
Ucbasaran, D. (2008) ‘The fine science of entrepreneurial decision-making’, Journal of Management Studies, 45(1): 221-237.
Valliere, D., and Peterson R. (2009). “Entrepreneurship and economic growth: Evidence from emerging and developed countries.” Entrepreneurship & Regional Development 21:5 : 459 – 480.
Wagner, K. (2015). WhatsApp’s Jan Koum Sold $274 Million in Facebook Stock Last Week. Retrieved on: 1april 2017. From: https://www.recode.net/2015/11/30/11621012/whatsapps-jan-koum-sold-274-million-in-facebook-stock-last-week.
Winograd, M. and Hais, M., (2014). How millennials could upend Wall Street and corporate America. Brookings Institute.
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