TABLE OF CONTENTS

TABLE OF CONTENTS……………………………………..…………………………………..………………3
ABSTRACT ………………………………………………………………………………..……………….……...………....4
CHAPTER 1. ENTREPRENEURSHIP (CONCEPTS AND FORMS)…….……………………….…5
1.1 HISTORY OF ENTREPRENEURSHIP………………....……………………………………………..…….5
1.2 DEFINING ENTREPRENEURSHIP……….………………………………………………………………....6
1.3 FORMS OF ENTREPRENEURSHIP .……….…………………………………………….…….…..…….…7
1.4 ENTREPRENEURSHIP AND INNOVATION……………………………………………………8
CHAPTER 2. SUCCESS FACTORS ……………………………………………..……….…….……..………10
2.1 BUSINESS PLAN…………………………………………..……….………………………….……….….…..…...11
2.2 MACROECONOMIC FACTORS……………………………………………..……….………………….….….12
2.3 MICROECONOMIC FACTORS……………………………………….…………………….……………..….13
CHAPTER 3. THE ENTREPRENEUR……………………………………………..……….……………15
3.1 DEFINING THE CONCEPT OF “ENTREPRENEUR”………………………………………….…..…16
3.2 CHARACTERISTICS……………………………………………..……………………….…………….…….….19
3.3 RESPONSABILITIES …………………………………………….……………………………………………..…21
CHAPTER 4 . CASE STUDY – YOUNG SUCCESSFUL ENTREPRENEURS…………………..22
4.1 INTRODUCTION……………………………………………………………………..……………….……………22
4.2 RESEARCH METHODOLOGY……………………………………………………………….………………...24
4.3 ANALYSIS…………………………………………..…………………………………………….…………...……..26
4.4. MOTIVATION………………………………………………………………………………………………………28
4.5 DISCUSSIONS………………………………………………………………………………………………………30
4.6. TIPS FOR ENTREPRENEURS…………..……………………………………………..……….….33
CONCLUSIONS………..………………………………………….……………………………………….……..35
REFERENCES…………………………………………………….….............................................................................36
ANNEXES………………………………….…………………………………………………..……………………………...37
ANNEX 1 : INTERVIEW…………………………………………………………………………………………..…..
………………......37

ABSTRACT
3
 This paper aims to present the most important premises regarding the foundation
of a successful business. My research began from general information, in order to
understand the business as a whole and the elements that influence them. I chose to talk
about this subject because opening a business requires quite deep thinking and analyses
and taking into account all relevant issues. When the decision is made to do this move, it
requires a detailed report on all the elements that influence it, especially the
entrepreneur's ability to lead the company to success. This work is divided infour parts.
The theoretical aspects are followed by empirical information obtained from my own
research. The first part, the theoretical one, has three subchapters and is the analysis of
economic literature on entrepreneurship.In the first chapter I define, explain and
exemplify the key concept that will be used in the paper, i.e. "entrepreneurship”, which
has several meanings in economy. In addition to this I present a brief overview of the
history of the afore mentioned concept and its forms. In the second chapter I present and
analyze success factors in a business. I observe the influence of macroeconomic and
microeconomic factors, as well as the importance of a business plan. The third chapter
begins with the definition of the concept of “entrepreneur”. I then present the profile of
the successful entrepreneur, which also contains the features and responsibilities of the
entrepreneur. All these notions will help give a clear image of what it means to be a good
businessman. The fourth chapter, along with the Annex, is the practical one: a case study
based on my own research. I analyzed the way in which young people in Romania see
entrepreneurship. The most important aspects are the students’ interest in starting and
having their own business and the ideas they bring to the table. Moreover, I observe what
they think about starting a business by looking at the economic situation of Romania and
what measures should be taken in order to better develop entrepreneurship.

CHAPTER 1
ENTREPRENEURSHIP (CONCEPT AND FORMS)
4
 1.1 The history of entrepreneurship

Entrepreneurship is a phenomenon which implies legal activities that bring

income. It is a very spread phenomenon. But let’s see when and where entrepreneurship
began and who were the first entrepreneurs. Entrepreneurship has existed in society for
thousands of years. In economic studies, this word was often used, but sometimes it was
underused. This approach has a connection with French because it is acquired from the
word entreprendre – “person who undertakes”, which means “manage”. The first interest
scientific entrepreneurship began in the 18th century with the work of Richard Cantillon,
Essaisur la nature du commerce en general, in which he distinguishes between people on
fixed incomes, employees, and those with variable, uncertain incomes, namely
entrepreneurs.1
The first entrepreneurs were, obviously, the traders and merchants who exchanged
one good for another. The first example of trading was in New Guinea, around 17,000
BCE, when people traded obsidian, a black volcanic glass.
A big change regarding entrepreneurship happened about 12,000 years ago.It was
the Agricultural Revolution. Then, as we know, people started to raise plants and animals
and preferred to stay in one location instead of wandering for food in different regions.
This was an important step in both human and entrepreneurship history.
Another item that made history in entrepreneurship was money. Before its
appearance, entrepreneurship and trade were done through barter. As time went on, things
regarding paper money and coinage kept developing. Currency gave entrepreneurs the
facilitation of long-distance trade. It also acted as a monetary system and provided a way
to accumulate value. During the medieval period, the development of marketplaces
began. Banking was developed and entrepreneurs could buy items from abroad,
transform these goods into flawless products and then trade them at high prices than
before. In an unexpected period when innovation was not valued highly, some inventions
and innovations wereblocked. Nevertheless, this period had a positive influence: after it,

1
Richard Cantillon, Essaisur la nature du commerce en general, Institute Coppet, Paris, 2011, p.121
5
technologies such as the windmill, the pepper mill, the mechanical clock and others
appear.
The time between 1550 and 1800 was the period when the philosophy of
mercantilism was developed. Entrepreneurs were known as merchants and explorers.
They raised capital, took risks and encouraged economic growth. In this period, Luca
Pacioli created some doctrines that were followed by explorers and merchants.2
In the 1800s, entrepreneurs acted in self-interest and also helped society grow.
The Industrial Revolution was another period of change because, starting with the 19 th
century, entrepreneurship went from small scale to large scale fabrication. The
availability of energy production and the availability of labor were the most fundamental
changes that gave rise to the entrepreneurs and innovators of the new world.
After World War II, entrepreneurship changed because economy increased
globally. The development of transportation was helpful for entrepreneurs because they
could trade their products easier. Persons who possessed a car represented a
microeconomic factor of this period.3
Nowadays, entrepreneurs are an important aspect of economy all over the world.
Ever since the beginning of history, the main law of entrepreneurship has been
that of “supply and demand”.

1.2 Defining entrepreneurship

Entrepreneurship is a process or a set of activities that has many benefits for

entrepreneurs, as well as society. This concept is firstly a legal action that is undertaken
by people of almost all ages. All of these actions involve a number of skills and abilities
that can be learned and applied in any organizational context (one can be an entrepreneur
also as an employee).
Entrepreneurship has many definitions: firstly it can be seen as a process where
one looks at things and sees solutions to existing problems, and secondly as a practice
that involves creating a new organization, creating new procedures for it and, most

2
Luca Pacioli, Summa de arithmetica, geometria, proportionietproportionalita, p.56
3
Joe Carlen, A brief history of entrepreneurship, Columbia University Press, 2016, p.123
6
importantly, creating a new business. Entrepreneurship can be seen as a way of thinking,
and this means predisposition to risk and involvement in initiating and developing a
business. Nowadays, this notion has become more and more important because there are
a lot of technological, economic, social and psychological changes that generate new
opportunities.4
Entrepreneurship is closely linked to responsibility.It also means competition, not
only with other companies, but first of all with the entrepreneur himself or herself.It also
reflects the aspirations that animate him or her. When we think about entrepreneurship,
we think at diversity, intense activity and dedication. It is about passion and personal
vision, because entrepreneurship always reflects the desire of being the best and of
achieving performance no matter what. This concept is also linked with personal and
financial freedom. Entrepreneurship includes people who are self-employed, who set up a
company as owner or partner, or start social activities with a high degree of autonomy
and innovation in the company that they work for. From this point of view, the study of
entrepreneurship is relatively wide, including a large section of the working population.5
Finally, entrepreneurship could be described as searching for new products, new
production methods, new markets and new forms of organization.It is based on the desire
for change and innovation, because it tries to generate huge profits in a short time by
accepting risks. We can therefore say that entrepreneurship implies creativity.

1.2 Forms of entrepreneurship

As seen above, when talking about entrepreneurship one instantly thinksabout a

business. But there are a lot of other fields in which leadership and creativity can bring
profit,since not all aspects of entrepreneurship are the same, as will be shown in the
following, where I present the most important categories of entrepreneurship.

a. Social Entrepreneurship

4
Business Dictionary.
5
Rosa Maria Fischer, GraziellaComini, “Sustainable development: from responsibility to entrepreneurship”
in Revista de Administração, vol. 47, nr. 3.
7
 The basic principle here is to create enterprises whose economic activity has been
conceived in such a way as to create "social value", to implement innovative solutions to
social problems (in the areas of job creation, sustainable development, environment,
health, etc.). This type of entrepreneurship can bring personal achievement through
helping others and personal profit.In Romania, the importance of social entrepreneurship
began increasing. For example, there are a lot of bakers that hire people from
disadvantaged groups, offering training courses and a job; there are coffee shops or
medical services that gather donations or dedicate their work to helping disadvantaged
groups from different communities. There are a great number of possibilities. It is clear
that one can start a social business that brings personal and professional satisfaction.

b. Political Entrepreneurship
Its aim is to bring new solutions to various political issues.This type of
entrepreneurship is very similar to a regular business, but also to a social business. A
political entrepreneur has to have a profound knowledge of the political climate and the
competition.

c. Research Entrepreneurship
We all know that various scientists have started successful businesses. I will
begin with a telling example that best describes this type of entrepreneurship. Thomas
Edison, the inventor of the light bulb and the one who founded General Electric, started a
business that has survived until today. Some scientific projects can indeed turn into a
foundation for a successful business.

d. Online Entrepreneurship
As its name says, this type of entrepreneurship means setting up a business that is
founded and promoted in social media on the Internet. Online entrepreneurship is much
easier to manage. It is easier to marketthe business product or products to the target-group
and customers arebe able to find the business easier. A disadvantage of this type of
8
 entrepreneurship lies in the fact that it very hard or impossible to develop over long
periods of time. Nevertheless, it is a good starting point.

e. Intrapreneurship
Last but not least, intrapreneurship refers to an employee of a large company who
enjoys the freedom and financial support to come up with new products, services and
systems that will improve that company. They are not constrained by the same rules as a
normal employee because their job is to bring more creativity, innovative services and
profit. There are intrapreneurswho, even if they do not own the company,act like business
people and are motivated to help the business grow.

1.3. Entrepreneurship and innovation

Entr℮pr℮n℮urial activiti℮s ar℮ substantially diff℮r℮nt d℮p℮nding on th℮ typ℮ of

organization that is b℮ing start℮d. ℮ntr℮pr℮n℮urship rang℮s in scal℮ from solo proj℮cts
(℮v℮n involving th℮ ℮ntr℮pr℮n℮ur only part-tim℮) to major und℮rtaking cr℮ating many
job opportuniti℮s. Lat℮ly mor℮ holistic conc℮ptualizations of ℮ntr℮pr℮n℮urship as a
sp℮cific minds℮t (s℮℮ also ℮ntr℮pr℮n℮urial minds℮t) r℮sulting in ℮ntr℮pr℮n℮urial
initiativ℮s ℮.g. in th℮ form of social ℮ntr℮pr℮n℮urship, political ℮ntr℮pr℮n℮urship, or
knowl℮dg℮ ℮ntr℮pr℮n℮urship ℮m℮rg℮d.
A conv℮ni℮nt d℮finition of innovation from an organization p ℮rsp℮ctiv℮ is giv℮n
by Lu℮ck℮ and Katz (2003), who wrot℮: “Innovation... is g℮n℮rally und℮rstood as th℮
succ℮ssful introduction of knowl℮dg℮ in original, r℮l℮vant, valu℮d n℮w products, proc℮ss℮s,
or s℮rvic℮s. Innovation typically involv℮s cr℮ativity, but is not id℮ntical to it: innovation
involv℮s acting on th℮ cr℮ativ℮ id℮as to mak℮ som℮ sp℮cific and tangibl℮ diff℮r℮nc℮ in th℮
domain in which th℮ innovation occurs. For ℮xampl℮, Amabil℮ ℮t al. (1996) propos℮:” All
innovation b℮gins with cr℮ativ℮ id℮as... W℮ d℮fin℮ innovation as th℮ succ℮ssful
impl℮m℮ntation of cr℮ativ℮ id℮as within an organization. In this vi℮w, cr℮ativity by
individuals and t℮ams is a starting point for innovation; th ℮ first is n℮c℮ssary but not
suffici℮nt condition for th℮ s℮cond. For innovation to occur, som℮thing mor℮ than th℮
g℮n℮ration of a cr℮ativ℮ id℮a or insight is r℮quir℮d: th℮ insight must b℮ put into action to
mak℮ a g℮nuin℮ diff℮r℮nc℮, r℮sulting for ℮xampl℮ in n℮w or alt℮r℮d busin℮ss proc℮ss℮s
9
within th℮ organization, or chang℮s in th℮ products and s℮rvic℮s provid℮d. A furth℮r
charact℮rization of innovation is as an organizational or manag℮m℮nt proc℮ss.
For ℮xampl℮, Davila ℮t al. (2006), writ℮: “Innovation. Lik℮ many busin℮ss functions,
is a manag℮m℮nt proc℮ss that r℮quir℮s sp℮cific tools, rul℮s, and disciplin℮” From this point
of vi℮w th℮ ℮mphasis is mov℮d from th℮ introduction of sp℮cific nov℮l and us℮ful id℮as to
th℮ g℮n℮ral organizational proc℮ss℮s and proc℮dur℮s for g℮n℮rating, consid℮ring, and acting
on such insights l℮ading to significant organizational improv℮m℮nts in t℮rms of improv℮d or
n℮w busin℮ss products, s℮rvic℮s, or int℮rnal proc℮ss℮s. Through th℮s℮ vari℮ti℮s of
vi℮wpoints, cr℮ativity is typically s℮℮n as th℮ basis for innovation, and innovation as th℮
succ℮ssful impl℮m℮ntation of cr℮ativ℮ id℮as within an organization (c.f. Amabil ℮ ℮t al. 1996
p.1155). From this point of vi℮w, cr℮ativity may b℮ display℮d by individuals, but innovation
occurs in th℮ organization cont℮xt only.
Th℮ conc℮ptual r℮lationship b℮tw℮℮n ℮ntr℮pr℮n℮urship and innovation has b℮℮n
discuss℮d in th℮ lit℮ratur℮ for many y℮ars. Th℮ ℮conomics of innovation, in particular, hav℮
attract℮d incr℮as℮d att℮ntion in r℮c℮nt y℮ars (Grupp, 2001; Arora, Fosfuri, & Gambard ℮lla,
2002; Ston℮man, 1995). Sundbo (1998) summaris℮d th℮ basic th℮ori℮s of th℮ ℮conomics of
innovation: (i) th℮ ℮ntr℮pr℮n℮ur paradigm; (ii) th℮ t℮chnology-℮conomics paradigm; and
(iii) th℮ strat℮gic paradigm. According to this paradigm, only a p ℮rson who founds a n℮w
company on th℮ basis of a n℮w id℮a can b℮ call℮d an ℮ntr℮pr℮n℮ur. ℮ntr℮pr℮n℮urship is
vi℮w℮d as a cr℮ativ℮ act and an innovation. ℮ntr℮pr℮n℮urship is about cr℮ating som℮thing
that did not pr℮viously ℮xist. Th℮ cr℮ation adds valu℮ to th℮ individual and th℮ community,
and is bas℮d upon p℮rc℮iving and capturing an opportunity (Johnson, 2001). Bygrav℮ and
Hof℮r (in L℮gg℮ & Hindl℮, 1997) r℮gard℮d ℮ntr℮pr℮n℮urship as a chang℮ of stat℮, a
dynamic proc℮ss, and a uniqu℮ ℮v℮nt, L℮gg℮ and Hindl℮ (1997) b℮li℮v℮d that p℮opl℮ who
l℮ad t℮ams and organization to introduc℮ innovations ar℮ ℮ntr℮pr℮n℮urs. ℮ntr℮pr℮n℮urs s℮℮k
opportuniti℮s, and innovations provid℮ th℮ instrum℮nt by which th℮y might succ℮℮d.
Corporat℮ ℮ntr℮pr℮n℮urship oft℮n r℮f℮rs to th℮ introduction of a n℮w id℮a, n℮w products, a
n℮w organizational structur℮, a n℮w production proc℮ss, or th℮ ℮stablishm℮nt of a n℮w
organization by (or within) an ℮xisting organization.

10
 CHAPTER 2
SUCCESS FACTORS

2.1. The business plan

In order to study issues related to business planning, both in theoretically and

formal terms, this subchapter attempts to answer three basic questions in order to

11
convince the entrepreneur – founder of a firm (business man) – about the utility of the
business plan as an effective tool for managing their own business.

2.1.1. Definition of a business plan

In order to understand what a business plan is, the concept of business should be
first defined. In the first chapter, I defined business as a legal activity that brings profit. I
shall now move on to the business plan, which is a document that presents the thoughts
of the entrepreneurs regarding the business planning and organization. A business must be
well thought out before its setting up. Entrepreneurs should sketch their concept of the
business and do all the calculations they deem necessary before they start the business.
Such a plan is based on these elements: an entrepreneur (businessman) who consciously
accepts certain risks and seeks to obtain a profit, activities that consume resources and
generate income(business idea) and an environment in which the activities will take
place(business environment).6

2.1.2 Utility of a business plan

Before building thewalls or any other area of your company, the business concept
is born in the mind of any entrepreneur following several stages:
 The business idea
 The vision
 The strategy behind the vision
 The business plan

This is why the business plan is, on the one hand, an internal tool through which
you can run and control the business and the entire set-up process of your company; on
the other, it is an external tool, excellent for communication with the economic
environment. It shows that the entrepreneur knows with certainty what he or shehas to do,

6
Richard Stutely,The Definitive Business Plan: The fast-track to intelligent business planning for
executives and entrepreneurs, Prentice Hall, second edition, 2002.

12
and in a working market economy serious business partners appreciate this and perceive
the entrepreneur as a pertinent economic actor inside of a business environment.

2.1.3. Content of a business plan

There are no two identical businesses. There are no two identical organizations.
There are alsono magic formulas for the elaboration of a business plan. It should be a
simple, meaningful and pragmatic tool. When elaborating the business plan, some
requirements have to be met so that the entrepreneur can demonstrate that he has a global
perception of his or her business and that he understands all its aspects, both technical
and financial.
The main aspects that should be taken into account within a business plan are:
a) Vision, strategy –the “I want” part
This point is, in fact, the ultimate goal that you want to reach through your
business.
b) History, management, human resources, current activity
The history of a business is very important in order to understand the
business itself.
c) Market Analysis
A market analysis of how the business has evolved and how its development is
anticipated in the future are fundamental items for determining future income that the
business will generate.

d) Analysis of operating costs

This shows the understanding of technological,economical and managerial
aspects of the current activity. It also demonstrates that we understand the
technologictrend, the entrepreneur knows whattype infrastructure of utility he needs and
how many people need to engage in the current business structure.
e) Investments required
The estimation is based on a pragmatic,honest and realistic investment. To
diminish or ignore issues related to investment (i.e. utility infrastructure) or to see them
13
as unreasonably dangerous (the introduction of very expensive and state of the art
equipment) are common mistakes that immediately and rightfully raise question marks in
the minds of shareholders, partners andsponsors.
f) Financial projections
Financial projections are nothing but anticipations and planning of the future
financial statements of the business. Financial projections are future mathematical models
of the balance sheet, the profit and loss account and the calculation of cash-flow.They
estimate the potential and certain rates of profitability of the business.
g) Annexes
This part includes materials that can help better present the business, such as:
study/qualification certificates of the management and human resources teams, feedback
from customers, feedback from the bank and any other material or document that the
entrepreneur/ manager considers relevant in presenting the business.

2.1 Macroeconomic factors

The development of entrepreneurship may be influenced by certain
macroeconomic factors over which the entrepreneur has now power. They are:
a. The general evolution of the economy
Each economy has phases of increase and decrease phases. When it grows,
businesses are developing; in times of recession,the new and small companies are
strongly affected because they are more sensitive to these fluctuations of the economy.

b. Inflation
In an economy with a low inflation, businesses thrive, as the profit is above the
inflation threshold.In economies affected by it,inflation causes serious problems in the
business world. Increased costs of materials and labor raise the capital requirements.If the
inflation periods are lengthy, some companies cannot cope with this phenomenondue to
competition and very little control over prices.7

c. The interest rate

7
Paul Donovan, The Truth about Inflation, Routledge, 2015.
14
 When the interest rate is low, conditionsare favorable for businesses.When the
interest rate is very high, companies who use financial loans are very vulnerable. High
interest ratesespecially affect the income, which in turn can lead to failure. One reason is
that companies try to expand when they don’t have enough capital. The high rate of
interest alsoencourages savings by depositing money in banks.There are only a few
places where the rate of return is higher than the interest rate.

d. Access to capital
The financial business programs facilitate the development of entrepreneurship.
But the entrepreneurs have difficulties in accessing the capital,especially in the beginning
phases of the business.

e. Government regulations
These regulations have a great impact in developing entrepreneurship. However,
many of these diminish the chance of survival in business world.

2.2 Microeconomic factors

Apart from macroeconomic factors that may favor the success or the failure of the
business, there are also microeconomic factors, which are subjective, and over which the
entrepreneur can have control. In what follows I will show the main microeconomic
factors that develop or inhibit entrepreneurship.
The entrepreneurial skill
In most new businesses, the most common cause of failure is the lack of
entrepreneurialskills. Most entrepreneurs don’t have the qualities required to run a
business.Ideally, the would-be entrepreneur must have skills in production,finance,
purchases and sales. Lack of these can lead to failure.

Financial control
To have success,the entrepreneur must establish an adequate financial control.The
error margin is very low, especially in the initial phase of business. Company financesare

15
threatened by three things: insufficient capital, inadequate credit policy and excessive
investments in fixed assets.8

Inventory control
This is the most neglected entrepreneurial responsibility and can lead to
dissatisfaction of customers and eventually to losing them. Entrepreneurs should avoid a
strict control of inventories.

Marketing
Sales are the success of any business. A good marketing plan is essential for
consumer awareness.

The human factor

Experienced employees contribute to the success of the business.

Financial and accounting evidence

When an accountant establishes an effective financial and accounting system,the
entrepreneur must understand that financial information and must be able to use itwhen
making decisions.

CHAPTER 3
THE ENTREPRENEUR

3.1 Defining the entrepreneur

The term entrepreneur comes from the French word entrepreneur and means a
person who starts and runs a business on their own. In the view of the French economist
Jean-Baptiste Say, an entrepreneur is “the person who sets up a company, acting as an

8
Steven M. Bragg, The Essential Controller, 2nd edition, Wiley, 2012.
16
intermediary between labor and capital, while at the same time transforming economic
resources into higher profits and reaping the results”.9
So, the entrepreneur is a person who takes the risk to starta business. The
entrepreneur is also the one who can promote innovation and creativity through the
company’s success. The entrepreneur is someone who starts a business alone or in
partnership with somebody else and takes the risk of investing capital and certain
responsibilities to lead the company.Entrepreneurs usually have professional experience,
but now most of them ignore knowledge management. The entrepreneur often provides
the resources necessary for starting a business, employsthe people needed to run it and
establishes the strategy and direction of company's activity in order to achieve objectives.
The concept of “entrepreneur”, or otherwise “contractor”, has existed for a long
time and has received different meanings over the years. When talking about the old
meaning of the word, in the period of early capitalism, the entrepreneur was the person
who invested financial resources in land, stocks of goods and materials, or exploited
employees in order to obtain a high personal profit.
Entr℮pr℮n℮urship is not an inborn skill, it is a product of ℮nvironm℮nt. It involv℮s
a compl℮x of ℮conomic and social b℮haviour. ℮ntr℮pr℮n℮urship can hardly surviv℮ und℮r
any giv℮n circumstanc℮s. It can flourish only und℮r th℮ right ℮nvironm℮nt. In fact th℮
℮ntr℮pr℮n℮urship can not k℮℮p aloof from th℮ changing social valu℮s, id℮ologi℮s, n℮w
℮m℮rging aspirations, r℮ligious b℮li℮fs, consum℮r wants and soci℮ty n℮℮ds ℮tc.

Cr℮ativity and innovation ar℮ ℮ss℮ntial to busin℮ss succ℮ss as w℮ pr℮par℮ to

℮nt℮r℮d th℮ n℮w c℮ntury. Cr℮ativity and innovation ar℮ s℮℮n as b℮ing th℮ k℮y to survival
in an ℮v℮r-mor℮ comp℮titiv℮ and global ℮conomy.

3.2. Characteristics of an entrepreneur

An entrepreneur is a person who creates an ongoing business enterprise from

nothing. Only the entrepreneurs create capital, wealth and resources in a country by their
inventive and risk-taking behavior. The spirit of enterprise makes man an entrepreneur.

9
Jean Baptiste Say,Traitéd'économiepolitique, 1803.
17
An entrepreneur performs all the necessary functions which are essential from the point
of view of operation and expansion of the enterprise.
A global entrepreneur must be responsive to the social challenges of the times.
The qualities below do not guarantee the success of an entrepreneur. If either of
them is lacking, this will not lead to the immediate failure of the business, but it is
preferable that an entrepreneur have many of them. Some qualities are native, others may
be gained. What is important is for the entrepreneur to try and achieve a good
combination of strengths and weaknesses for maximum efficiency.10

Vision and objectives

A successful entrepreneur can have vision and can establish certain targets and is
committed to achieving them. Through this process, apart from success, the entrepreneur
also gains personal satisfaction.

Creativity
A good entrepreneur has the wisdom to act on specialized market segments or to
satisfy consumer needs that were not covered by the competition (new products or
services). Every entrepreneur must alsobring to the table products or services different
from the existing ones andmust provide customers with as many useful goods or services
that can facilitate and improve their lives.

Perseverance
This quality is one of the most fundamental in achieving success. Being an
entrepreneur and working as a director of a company does not mean rest and relaxation.
To achieve the set objectives, an entrepreneur has to work hard, with determination and
diligence, because sometimes business can hang by a thread and can only rely on him or
her.

Optimism and confidence

10
Haynie, J. M., Shepherd, D., Mosakowski, E., &Earley, P. C. (2010).“A situated metacognitive model of
the entrepreneurial mindset”.Journal of Business Venturing, 25(2): 217-229.
18
 Even if a business involves many difficulties and problems, the entrepreneur is the
person who should have permanent confidence in themselves and be convinced that the
business will eventually be successful.

Responsibility
Any entrepreneur should know that, once a business is started, responsibility
comes under many forms, particularly as timely compensation of employees, payment of
debts to business partners in product delivery deadlines etc. Therefore, a person that
cannot take responsibility and is not able to accomplish his or her own objectives has no
place in the business.

Observation
This quality matters a lot in the work of an entrepreneur, because by having a
keen spirit of observation the entrepreneur will focus on new perspectives, will seek new
markets, finding out whether customers are satisfied or not with the products or services
that the firm provides. Also, by having a developed spirit of observation and analysis, the
entrepreneur will decide to improve the business by strengthening its market position.
More could be said about the qualities of an entrepreneur,but it is important to
remember that, no matter what, even if the entrepreneur has no experience in this line of
work, he or she has much to learn and must work hard to achieve the goals set out.
In conclusion, it is very important to have a mix of qualities in order to achieve
certain success.

3.3. Responsibilities of an entrepreneur

A successful entrepreneur must be able to recognize opportunities, to promote

innovation and to take risks. He or shemust withstand the difficulties and the state of
uncertainty. This is very important because entrepreneurship involves daily difficulties
and a lot of disappointments. Whoever wants to become an entrepreneur must face
obstacles and not look at them as a barrier put in front of their goals. Entrepreneurship is

19
not 100 meter dash. It is a marathon that often lasts a lifetime. The entrepreneur has a
complex role in the foundation stage of its business.11
Firstly, one must evaluate a business opportunity. This opportunity will be used to
initiate the entrepreneurial activity. Next,one needs to study and collect all the possible
related information and plan the actual business. It is important to also have at his or her
disposal the resources necessary for the business, and also have the power to face all the
difficulties and threats that endanger not only the foundation, but also the functioning and
development.
Responsibility refers to the obligation of the entrepreneur to make decisions, to
establish procedures and take action in accordance with the values and norms of society.
The entrepreneur has a social responsibility not only to the community, but also to
employees, customers, suppliers, the state and various interest groups.
Responsibility towards employees involves creating a domestic environment that
enhances professional development, encouraging employees to reach their full potential,
promoting creativity and increasing individual and group responsibility.
Responsibility towards clients involves providing quality products at prices at the
right time and the right place.
Responsibility towards suppliers requires timely payment of invoices.
Responsibility towards banks involves the repayment of loans and related interest.
Responsibility towards the state consists of timely payment of taxes, social
contributions and other liabilities.
The responsibilities that an entrepreneur needs to assume are connected, meaning
that non-contractual obligations of an enterprise to another enterprise have economic
implications (such as disruptions of enterprise activity), social implications
(reducedsalariesfor employees in both companies) and ethical implications (the loss
ofcompany prestige).

11
Fauchart, E., & Gruber, M. (2011). Darwinians, Communitarians, and Missionaries: The Role of Founder
Identity in Entrepreneurship. Academy of Management Journal, 54(5): 935-957.
20
 CHAPTER 4.
CASE STUDY:
YOUNG SUCCESSFUL ENTREPRENEURS IN ROMANIA

4.1 Introduction

The first objective of this study is to conduct a comprehensive analysis of the

Romanian entrepreneurial environment and find out how entrepreneurship is seen in
Romania through the eyes of young people. Another aim of this chapter was to see if
students are interested in starting their own business after graduation and, if so,find out
what their business ideas are. Society is currently in a stage of economic development
when there is quite an important number of enterprising individuals and when the desire
to build one’s own business is quite common. We see a clear growth in the number
businesses being established. The motivation is simple: business in any industry provides
opportunities for its owner to have more financial resources, as in the case when it is
21
simply committed to put into practice the ideas of an individual and benefit from the
experience and knowledge gained along the way. But we know that without some
concrete action and proper knowledge, business owners are not able to effectively
manage their own business, so some get theaforementioned reward (achieving the
economic and social goals established), while others find their own enterprise in critical
situations that lead to bankruptcy or involve significant expenditure, destabilizing them
psychologically and economically.Entrepreneurship started receiving attention with the
problems brought by the global financial and economic crisis, and entrepreneurs have
become "heroes" able to provide an impulse to fragile economies.According to the
European Commission (2003), the number of business owners in OECD countries
increased from 29 million to 45 million between 1972 and 1998.12 Furthermore, services
and knowledge-based activities have become Europe's competitive edge, thus leading to
the emergence of a new wave of innovative IMMs who survived the crisis and prospered
while corporations were starting to fire employees and restrict their activities. Innovative
small businesses and 99% of all companies active in Europe provide 66% of available
working places. In the context of an alarming rate of unemployment that persists in many
countries, entrepreneurship has become a viable solution in economic problems.
Entrepreneurship cannot be defined accurately,it is a multidimensional andun-
homogenousconcept that makes generalizing the findings of studies difficult for regions
other than those in which they were originally developed.I chose this topic because
entrepreneurship is on the rise in Romania, but also because it is hindered by the lack of a
tradition of developing sustainable businesses, passed down from generation to
generation, as is the case in developed countries. Entrepreneurship in Romania often only
pursues profit, instead of being a mood. From my point of view, it is an important aspect
of the Romanian economy and I’m certain that young generations can do something
regarding the development of entrepreneurship in our country.

4.2. Research methodology

12
Paul Cunningham, Miriam Cunningham, EAdoption and the knowledge economy: issues, applications,
case studies, IOS Press, Washington DC, 2004, p.212
22
 The first step in developing the study was to analyze and make a clear idea of the
Romanian entrepreneurial ecosystem using information from the Global Entrepreneurship
Monitor.The analysis provides an overview of the current situation and suggests methods
of how to intervene.13 I opted for an interview that is a qualitative research
method,anattempt to find information through questions and answers during
conversations. I tried to go into depth and find as many things as possible, specific
elements of each case, both surprising and common elements. I was careful in
formulating questions because the way in which you phrase them can influence people’s
opinion. The questions used to interview complied with the rules mentioned in the survey
questions: they were formulated in plain language, clear, brief, formulated and read as
neutral as possible. Interviewers are a key element in the success of a discussion during
interview. Interviewers must establish a trust relationship between them and interviewee
so that the latter is prepared to respond as fully and honestly to questions. The interview
had 14 questions and I tried to use all types of questions (open questions,multiple-choice
questions and hierarchical questions).It was shared online for students and for those
interested in opening a business.I interviewed face to face five former students who
already have their own business. The answers helped me to analyze their vision of
entrepreneurship and what can we do in order to better develop the Romanian
entrepreneurship.

4.3. Analysis

The term “business” represents a legal activity from various domains which
isdone with the aim of making profit. But what does it mean to young people? How is
this activity seenby the students who are the future of our country? Setting up and
running a business is a big responsibility but this is not a fact that scares students to start
their own business. I find out that some of the first things that make students from
Romania think about starting a business is money. I don’t think there is any doubt that
without money you cannot live. And maybe the lifestyle quality will be much lower.
Some people say “Money is the root of all evil”, but they are the way by which you can

13
The Global Entrepreneurship Monitor.
23
get rid of 90% of the worries that you have every day. And what is important is the fact
that younger generations want to work by themselves instead of being employed.They
want to work hard, to fight, to choose what they like to do because, after money, for them
a business means to develop their own ideas and put them in practice. When asked what
they think is about to come next, “Innovation” or “ A change in society”,the answers in
the chart belowshow that the next generation would like to be innovative, so as to put
their own ideasinto practice. They are going to make a difference in society if they
consider it will help start their business. This means that they want to develop their own

Fig.1 The source of income

Source https://www.entrepreneur.com/article/

4.4. Motivation

It is said that motivation is the soul of your business so this think is essential when
you want to start one. I find out that is important to motivate yourself but more important
is to stay motivated during all activity in which you work. That being said, the question is

24
“What really motivates you to begin a business?” This is a simple question,a question that
I asked young people. Some answers were short, some were more detailed but what is
relevant is the fact that the interviewees are very determined and they talk about this
clearly and precisely. So, nowadays, the first things that motivate young people to start a
business are money, the desire to be independent and be their own boss. They are more
excited knowing that will work for them and make the program how they want.The
progress desire and investing in something they like bring the students on the business
field. Is there more to that? The answer is yes and I give you words like “financial”,
“freedom” and “security”. So, what do you think? Have financial freedom and financial
security a positive influence on people when they think about starting a business? Well,
this is true, because if they have financial freedom they have enough money to do what
they want. Now, regarding financial security they said the best example of this one is
social insurance and as the name says should lead to financial safety. Also, I find out that
all these things lead to economic growth in Romania and motivate students.And I agree
with this because economic growth is a complex process, targeting the economic system
as a whole or its dynamics and there are so many areas and branches in which industry
was not sufficiently developed.

4.5. DISCUSSIONS

4.5.1. The interviews. What does it mean to be an entrepreneur in Romania and

what is the main quality of a successful entrepreneur.

As an entrepreneur, your personal and professional lives are intertwined.To

become an entrepreneur,at first it is difficult. Difficult because you have to know a lot of
information regarding the field of activity and you must have knowledge everything
related to entrepreneurial ecosystem. It is important for entrepreneurs because they easily
could be fooled.Since there are multiple companies in each domain of activity and
majority of young entrepreneurs come with innovative inventions and ideas is normal to
takes some time until the business pay off. A young entrepreneur in Romania has to be
strong and motivated to change something in society and not be afraid of failure. He or
25
she also needs to have courage to take risks and to fight with bureaucracy. An
entrepreneur must overcome both personal and imposed barriers. More than that, you
must take advantage of all the relationships that you have because it might be useful to
you. The people do not seem frightened by all these things but they said that
unfortunately, in Romania, entrepreneurship is not encouraged (at least not as much as in
other countries). The taxes are big and make the investment’s return difficult.
Now, when talking about the qualities of entrepreneurs I think all of us agree with
the fact that to start a business,an entrepreneur must be smart, but not necessarily the
basic meaning of the word “smart”, rather he or she who has the highest level of
emotional intelligence because it will be the best leader so it will lead better its team to
success. A very important advice is that you never have to open a business in an unknown
field. Think about cotton processing: you open a useless business in this field if you have
no idea how cotton looks like. It would be a real paradox.Try to choose a field in which
you have at leastsome level of experience.Regarding vision, it is focused on the business
plan and the work they performed.In entrepreneurship, vision is rather the capacity to see
the thinks little ahead of the others. Especially in the beginning,when the obstacles are
bigger,the mistakes are more common because of the lack of experience and you are
tempted to give up. So you have to be dogged and determined. Don’t give up and go
forward to achieve the company’s objectives using the best methods.
Pessimism,negativity or any human that have a negative thinking have no place in
entrepreneurial activity. If you don’t have positive thinking, you cannot be a successful
entrepreneur.

Fig.2 Qualities top of an entrepreneur

26
 Source https://www.entrepreneur.com/article/

4.5.2. Best form of organization

The most advantageous forms of company for youth in their view are Ltd. and
Registered sole trader. Both forms have a lot of advantages for young entrepreneurs but
the most important are free and cost low foundation. I said that are important because
money are one of the impediment when we talk about starting a business.Regarding
family association and Individual Enterprises,they are recommended to those who
already have a little business because there is necessary an authorization and can’t have
employees for the authorized activity. Establishing a corporation is a little bit difficult
because firstly you have to take into account several stages and for a young entrepreneur
it is not very recommended because of lack of experience.

Fig.3. Top appropriate form of business organization

Source https://www.entrepreneur.com/article/

4.5.3. Earnings

Profit is the essential element that keeps things moving and this is true in any
economy. No institution can function if it not generates profit. The business plan is on the
one hand an internal tool through which you can control and run a business, thenit
becomes the start-up operation of your company.On the other hand it represents an
external communication tool with economic environment. People think thatthe “business
27
plan” is the most important think regarding the way in which the earnings should come.
Also, in a business, earnings should come slowly but surely. Why? Because it is more
important to wait and earn than rush and lose. Introducing a product, service or idea on
the market can or can’t be a main aspect regarding earnings in a business because it
depends on the impact that certain items have on consumers.

Fig.4. Earning in business

Source https://www.entrepreneur.com/article/

4.5.4. Useful activities

There are a lot of activities useful for those who want to have their own business,
but following the result I find that internship is considered the most used activity because
this consist of acquiring and developing professional skills applied. The experience
gained over such a stage is very important, especially nowadays when experience matters
more than many degrees or courses you attended. Most employers look for people with
experience or at least willing to learn and gain much information in a short time. Young
people participating in an internship will have many advantages: interaction with
professionals in the industry,the opportunity to participate in trainings and theoretical and
practical training sessions, work in teams competitive, and focus on results. A student or a
graduate internship program must offer seriously, take the learning and development and

28
openness to acquire new professional skills. An internship at a renowned company can be
a big step towards a successful career.

Fig.5. Activities to starting a business

Source https://www.entrepreneur.com/article/

4.5.5. The best moment to start a business

Many of us have wondered at one time is the right time to launch into business.
When you think about starting a business that you think you could make money, you
might not have only positive thoughts, but rather ideas like "I'm too young and
inexperienced to go into business"; or, if you're older, "if I had this business idea 20 years
ago, when I was younger, I would have had the energy to turn it into a successful
business." Unless you're stressed aboutyour age and the potential lack of experience on
your mind thoughts of financial risk, like "I will never gather kind of money needed to
start business" or "what if I lose all the money I've won so far in this business?” Many
say that the best time to grab business is when a business opportunity comes your way
(an aspect that otherwise should not negligible), but really the best moment of our lives
we get to business those who are motivated to do so. No matter how great the business
opportunity that comes in the way, unless we are determined to get down to business and
hit the road with engines that only 50% more likely that the business will not be
successful. If in many areas dissatisfaction is the first factor that drives people to action in
business is a little different, because history has shown that some of the most successful
29
business people are the ones who have really wanted to get something "have dreamed. "In
other words "desire is in front of discontent".

4.5.6. Issues regarding business

We saw that for the young people the idea of starting their own business is
appealing.But before that you have to think of most difficult issues.What do you think is
more difficult? Finding a sustainable business? Finances? Or do you think that the
promotion of your products or services could give you a headache?
"Businesses sustainable tomorrow" should become "sustainable business today".
Sustainable development of a business is based on finding opportunities that enable
companies to generate competitive advantage by combining and integrating harmonious
economic dimension.In business, another issue is money.This represents the most
frequent starting point from of small businesses.Own funds offers the advantage of a
greater safety. This source of funding, therefore, provides flexibility, safety and
independence. But, obviously not everyone have access to this finances and to other
financing method such as bank credit,special financing programs, issuing shares and
bonds etc. Promoting of goods and services doesn’t seem to be a very difficult aspect
because nowadays there are a lot of ways in which you can advertise.

Fig.6. Most difficult issue in creating a business

Source https://www.entrepreneur.com/article/

4.5.7. Sacrifices
30
 When your objective is to obtain thinks with great value you have to quit to those
things which start to have a lower value. It is seen through all the sacrifices that any
leader must be willing to do to pass to another level in his or her career.Some people
agree with this because they say each of us aspires to an ideal that requires sacrifices.It is
also true that not everybody is willing to do this.The majority agrees with this only under
certain conditions and others will try to avoid situations that require sacrifices. But all of
us which tends to an ideal have to come up with a plan and then see if we are willing to
do some sacrifices for our objectives.

Fig.7. Sacrifices
Source https://www.entrepreneur.com/article/

4.5.8. Current conditions for starting a business

This part of my case study is focused on the current conditions for starting a
business and what the state have to do in order to develop the Romanian business
environment.The review of this subject shows that the circumstances are not really good
for success. Young entrepreneurs should be more encouraged and helped by reducing
taxes and dues for the new businesses. There is a minimal support from the state and as
an example we have the large companies that are not supported.As a measure, the state
can implement strategies to support new entrepreneurs based on criteria. Another could
be the implementation of competitions whose stake is to win funding. Some training
courses for young entrepreneurs could be also helpful. There are some discussions
31
regarding the bureaucracy and a good solution to this problem may be given by the state
obviously, reducing all unnecessary papers that have to draw up when we want to start a
business. So, the conditions are not really good but if the state would do something about
it our country could have a better business environment and thus a more developed
economy.

4.5.9. Success

How is success rated? Answering this question may be more important than you
think. But the most important is not only to be successful in a certain direction, but to get
a sense of overall success in your life as a whole. Success is actually what helps us have a
full and meaningful life. Success can be defined as a desired end result. Therefore, to be
successful you have to have a purpose and also a plan to meet it. Success is seen
differently by each person so after analyzing was proved that success occurs when was
made so much effort to get something. When you are satisfied of yourself and you've
reached your target that you proposed,now you can say that have success. Success in
business also refers to profit that you have and market expansion because nowadays you
must either be the best or to have few competitors in your field. If you have a business
more than one year, the earnings are big, the market has expanded more and more,it is
recognized on the market and the feedback from your customers is a positive one it is
believed that you have success. Everything that is hard to realize and involves too much
work can lead to fulfilling expectations. “Effort”, “sacrifice”, “hard work”, “dedication”
are the words behind the success. Personal and financial satisfaction represent a benefit of
all your effort.

4.6. Tips for entrepreneurs

32
 I decided to end this study with a top 5 of most important tips for our future
entrepreneurs.
1. Richard Branson, an entrepreneur and English investor who founded the
“Virgin Group”, which includes over 400 companies, says: “If you don’t like it, on’t do
it!” So, if things are made with pleasure, success will be guaranteed!
2. Think positive and put your ideas into practice because is very important to be
original!
3. There will always be risks and difficulties in achieving the purpose so you must
be persistent and patient!
4. You can’t be an entrepreneur if you don’t take risks. So, you have to be
brave,strong and believe in yourself!
5. You cannot do everything on your own.As long as you have an idea that can be
successful, inform yourself, ask and communicate with experienced people and don’t
give up!

CONCLUSIONS

33
 This paper-work led me to some important conclusions regarding the subject of
the paper, the business organization.
Concluding the concept of entrepreneur, we can say that it is a person who sets
up a business or an enterprise. He is the one who has the capability of risk-bearing,
initiative and skill for innovation. He looks for the high achievements. He is a creative
thinker, an individual who combines in himself if the role of innovator and risk bearer.
Entrepreneur is found in every system and in every form of economic activity.
They are found amongst artisans, traders, importers, engineers, exporters,
bankers, industrialist, farmers etc. An entrepreneur is the builder of economic growth. He
promotes the prosperity of the country by his initiative and skill for innovation.
Entrepreneurship is a difficult and vast subject to tackle because of all the
subjectivity involved. There are, of course, many objective aspects, but everything boils
down to each man or woman’s initiative, ideas and vision. It is safe to say that
entrepreneurs and the concept of entrepreneurship have been in constant development
since the beginning of mankind. While there are certain skills and traits that businessmen
and women natively have, most of the required skills can be learnt, studied and emulated.
The success of each entrepreneur is measured in relation to the objective he or she has set
out for him or herself: the more objectives are ticked at the end of the day, the more
successful that person is.
Entrepreneurship is something that is firmly rooted in the local context in which
the entrepreneur lives. The tendency nowadays is for the business to focus not only on the
financial part, but also on the impact it can bring to the society or community in which it
is developed. Context is, therefore, very important when starting or developing a
business.
The situation in Romania is not as good or favorable for entrepreneurs as in other
countries, but it is slowly improving. With more and more young people interested in the
subject, it will certainly become an increasingly popular topic, leading to an increasing
number of successful and relevant businesses.

34
 REFERENCES

1. Bragg, Steven M.,The Essential Controller, 2nd edition, Wiley, 2012

2. The Business Dictionary

35
3. Cantillon, Richard, Essaisur la nature du commerce en general, Institute
Coppet, Paris, 2011

4. Carlen, Joe, A brief history of entrepreneurship, Columbia University Press,

2016

5. Cunningham, Paul; Cunningham, Miriam, EAdoption and the knowledge

economy: issues, applications, case studies, IOS Press, Washington DC, 2004

6. Donovan, Paul, The Truth about Inflation, Routledge, 2015

7. Fauchart, E., & Gruber, M. (2011). Darwinians, Communitarians, and

Missionaries: The Role of Founder Identity in Entrepreneurship. Academy of
Management Journal, 54(5): 935-957

8. Fischer, Rosa Maria;Comini, Graziella “Sustainable development: from

responsibility to entrepreneurship” in Revista de Administração, vol. 47, nr. 3

9. The Global Entrepreneurship Monitor

10. Haynie, J. M., Shepherd, D., Mosakowski, E., &Earley, P. C. (2010).“A

situated metacognitive model of the entrepreneurial mindset”.Journal of
Business Venturing, 25(2): 217-229.

11. Pacioli, Luca, Summa de arithmetica, geometria, proportioni et

proportionalita.

12. Say, Jean Baptiste, Traitéd'économie politique, 1803

13. Stutely, Richard, The Definitive Business Plan: The fast-track to intelligent
business planning for executives and entrepreneurs, Prentice Hall, second
edition, 2002

ANNEXES

ANNEX 1. The interview template

1. What motivates you to start a business?

36
2. Which is the best moment to start your own business?

3. Which is the main quality of a successful entrepreneur?

a) Intelligence and Creativity

b) Knowing the fied of activity
c) Vision
d) Perseverance and determination
e) Positive Thinking

4. Which is the most appropriate form of business organization for a

young entrepreneur?

a) Limited Liability Company (S.R.L)

b) Authorized Person (PFA)
c) Individal Entreprise (II)
d) Family Association (AFA)
e) Corporation (SA)

5. Briefly describe your business idea

6. “Business” means to you:

a) To earn money
b) Put your ideas into practice
c) Being better than your friends
d) Feel that make a difference in society
e) Innovation

7. In a business , earnings should come:

37
 a) Immediately, to recover the investment quickly
b) Once we have developed a product/service
c) According to the business plan
d) Slowly but surely
e) Does not matter

8. From your point of view which is the most difficult issue in terms of
creating a new business?

a) Finding a sustainable business

b) Identifying sources of financing
c) Promoting new services/products

9. What to means to be a young entrepreneur in Romania?

10. What other activities do you think are useful for starting a business,
besides entrepreneurship courses?

a) Internships
b) Mentoring sessions
c) Sharing best practices
d) Actions to monitor the operation and development of your business
e) Others

11. What do you think about current conditions of starting a business in

Romania? And what measures should be taken so that the Romanian
business environment to outline an upward slope?

12. What sacrificies are you willing to make?

a) I’ll be willing to make sacrifices just under certain conditions

38
b) I’ll try to avoid situations that require sacrifices
c) I’ll willing to make sacrifices
d) I don’t think I have to give up anything in any respect

13. How you rate the success?

14. Any advice for those who want to pursue a career in

entrepreneurship?

39