Exploring the 7 Perspectives of Entrepreneurship: A Guide to Success

Aspiring entrepreneurs often fixate on starting their own businesses but simply running a business is just one part of entrepreneurship. Creating a profitable and sustainable enterprise demands a more comprehensive approach that takes into account a wide variety of different perspectives. Here are seven perspectives to consider when exploring entrepreneurship.

1. The Anthropological Perspective

The anthropological perspective relates to understanding the culture and lifestyle of target audiences. Knowing the locational history, traditions, communication and values of the audience forms the basis of this approach. By doing so, entrepreneurs can effectively tailor their products or services to specific consumers, by enhancing their brand image, customer trust and patronage.

For example, McDonald’s, a well-known fast-food chain observes cultural diversities in their choice of menu items for different countries. In India, the menu features more vegetarian options to appeal to the largely vegetarian audience while in the US, burgers and fries are at the forefront.

2. The Psychological Perspective

The psychological perspective examines how consumers perceive and relate to the products and services offered by a business. The ability to meet the needs of your target audience is of utmost importance here. Knowing the emotional triggers that impact customer decision-making can improve business efficiency.

For example, if a business can identify and meet the specific needs of customers who care deeply about environmental sustainability, then such a business will attract these highly-motivated consumers. Such a scenario is demonstrated by Amazon’s recent emphasis on using completely recyclable/biodegradable packaging solutions to create an eco-friendly appeal.

3. The Sociological Perspective

This perspective explores the current social landscape of the targeted audience. Understanding current trends, social groups and social networks is vital. For instance, fitness activities are becoming popular across several demography’s, with more and more people opting for healthy food choices. Recognizing such a shift in societal behavior can enable entrepreneurs to offer products or services that fulfill the changing demands of their audience.

For example, Peloton, an innovative fitness equipment and content provider, are transforming the way society views exercise. Peloton’s interactive classes and equipment provide an affordable and efficient way for fitness enthusiasts to participate in active lifestyles, from the comfort of their homes.

4. The Economic Perspective

Economic trends and changes can affect business sustainability and viability. Entrepreneurship requires astute awareness of the financial environment. From production costs to supply and demand dynamics, entrepreneurs need to understand the ins and outs of the economy.

For example, in Newfoundland, Canada, the successful entrepreneurial firm, Ocean Choice International, took advantage of the diminishing supply of fishing stocks by implementing improved fishing practises, which increased the yield of valuable fish stocks, through innovative technologies, value creation & brand differentiation.

5. The Legal Perspective

Legal compliance is essential to avoid costly legal disputes in the running of a business. Every successful entrepreneur must understand the legal landscape of the industry. Complying with relevant legislation and regulations can enable entrepreneurs to build a good reputation and avoid legal pitfalls.

For example, Uber, the globally acclaimed ride-sharing platform, was forced to address many legal challenges during its start-up phase. Uber’s focus on regulatory compliance, and consumer safety, as well as insurance policies, allowed it to grow and thrive in difficult regulatory terrain.

6. The Environmental Perspective

With climate change and environmental degradation at the forefront of current concerns, entrepreneurs need to prioritize environmental sustainability. The modern-day consumer places a premium on green and sustainable products. By using renewable resources, minimizing pollution and promoting environmental consciousness, businesses can tap into the growing demand for eco-friendly products.

For example, The Body Shop, a producer of herbal cosmetic products, is one of the many companies leading the way in environmental sustainability. They are committed to using only renewable and ethically supportive materials which have enabled them to achieve a positive public image related to socially responsible and environmentally sustainable businesses.

7. The Global Perspective

A global perspective involves recognizing the existence of other markets and competitors beyond local borders. With today’s global marketplace, entrepreneurs need to be aware of how their business fits into a globalized world.

For example, Apple’s entry into the smartphone market revolutionized the industry. With their premium priced devices, excellent marketing and sleek designs, they have created one of the world’s most profitable brands with a global market dominance.

Conclusion

Entrepreneurship is a complex and multifaceted process that requires an in-depth understanding of various perspectives. With proper consideration of anthropological, psychological, sociological, economic, legal, environmental and global perspectives, entrepreneurs can optimize their businesses for remarkable success. By blending together all these diverse perspectives, entrepreneurs can create winning business strategies and effectively navigate the ever-changing landscape of entrepreneurship.