The Purpose Of This Project Is For You To Demonstrate An Und

The Purpose Of This Project Is For You To Demonstrate An Understanding

The purpose of this project is for you to demonstrate an understanding between entrepreneurs and small business owners. You will also be relating how a business contributed to the economy in the 1990’s.

Using the case scenario of Leslie Blodgett and Bare Escentuals, you will analyze the entrepreneurial traits demonstrated by Blodgett, distinguish between entrepreneurs and small business owners, and explore the economic impact of the business in the 1990s. Your paper should include discussions on the different categories of entrepreneurs, the factors of production influencing demand, and the contribution of Bare Escentuals to the economy during this period.

Paper For Above instruction

Introduction

This paper examines the entrepreneurial journey of Leslie Blodgett and the rise of Bare Escentuals in the 1990s, emphasizing the traits that defined her entrepreneurial spirit, distinguishing her from small business owners, and assessing her business's economic contributions during that era. By analyzing her strategic decisions and growth trajectory, this paper elucidates how entrepreneurial traits drive innovation and economic development. Additionally, it explores the factors of production influencing the demand for Bare Escentuals products, particularly in the context of the 1990s economy, highlighting the interconnectedness between business actions and economic outcomes.

Entrepreneur Versus Small Business Owner

In contemporary business discourse, entrepreneurs and small business owners are frequently conflated; however, they possess distinct characteristics and roles. An entrepreneur is often characterized by innovation, risk-taking, and the pursuit of growth, frequently seeking market expansion or the development of novel products or services (Hisrich, Peters, & Shepherd, 2017). Conversely, small business owners tend to focus primarily on sustaining their operations, serving local markets, and maintaining steady revenue streams without necessarily aiming for rapid expansion (Scarborough & Cornwall, 2018). Leslie Blodgett exemplifies the entrepreneurial archetype through her innovative product development, risk-taking in product positioning, and strategic expansion into national and international markets, exemplified by her successful transition from a small startup to a publicly traded company.

Entrepreneurial Traits Demonstrated by Blodgett

Blodgett demonstrated multiple traits characteristic of successful entrepreneurs. Her proactive innovation in formulating mineral-based makeup suitable for diverse skin tones and her willingness to challenge existing market offerings exemplify her innovative mindset. Her persistence in overcoming initial sales hurdles and her strategic pivot to direct television sales via QVC highlight her resilience and adaptability (Hisrich et al., 2017). The commitment to customer satisfaction and understanding market needs reflects her customer-centric approach, fostering brand loyalty and growth. Moreover, her vision for expansion and subsequent public offering showcase her risk management skills and ability to leverage opportunities, core traits of entrepreneurial leadership.

Entrepreneurial Categories

Entrepreneurs can be classified into various categories based on their motives, approaches, and goals—such as innovators, opportunists, and entrepreneurs driven by social impact (Shane & Venkataraman, 2000). Blodgett fits predominantly into the 'innovator' category, as she introduced a novel product—mineral-based makeup that was free from chemical irritants—and redefined beauty standards. Her willingness to invest in product development, marketing through TV channels, and engaging with customers for feedback exemplify her innovative approach. Her strategy to expand distribution channels and her involvement in product development further solidify her position within the innovation-driven entrepreneurial category.

Bare Escentuals Contribution to the Economy in the 1990s

During the 1990s, Bare Escentuals contributed significantly to the local and national economies through several channels. As a small business, its initial operations spurred local employment, supported supplier industries, and contributed to retail activity within California. The company's innovative product line and marketing strategies fostered consumer demand, thereby stimulating economic activity. Furthermore, the company's growth led to increased tax revenues and positioned it as a key player in the beauty industry, fostering entrepreneurial ecosystems and inspiring other startups (U.S. Small Business Administration, 2000). Blodgett’s strategic expansion onto infomercials and specialty retail channels notably increased the company's market reach and sales volume, amplifying its economic impact.

Factors of Production Affecting Demand

The demand for Bare Escentuals products was influenced by several factors of production, namely land, labor, capital, and entrepreneurship. The land component is reflected in the location of manufacturing facilities and retail outlets, impacting distribution efficiency. Labor was critical, especially skilled workers who could produce high-quality mineral makeup and assist in customer service. Capital investment was substantial, particularly in product research, marketing campaigns, and distribution channels such as QVC and boutiques, which expanded the company's reach. Entrepreneurship played a pivotal role, with Blodgett’s innovative vision and strategic leadership driving product development, marketing, and distribution efforts. These factors collectively enhanced demand as they improved product quality, accessibility, and consumer awareness.

Conclusion

Leslie Blodgett’s entrepreneurial journey with Bare Escentuals exemplifies innovation, resilience, and strategic growth. Her traits as an innovator and risk-taker distinguish her from typical small business owners, positioning her within the entrepreneurial category of innovators. The company's contribution to the 1990s economy was multifaceted, involving local employment, industry stimulation, and national market influence. The factors of production—land, labor, capital, and entrepreneurship—significantly impacted the demand for Bare Escentuals’ products, underscoring the interconnectedness of business activities and economic development. Through strategic innovation and market positioning, Blodgett successfully grew her business, leaving a lasting economic and entrepreneurial legacy.

References

  • Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship (10th ed.). McGraw-Hill Education.
  • Scarborough, N. M., & Cornwall, J. R. (2018). Essentials of Entrepreneurship and Small Business Management. Pearson.
  • Shane, S., & Venkataraman, S. (2000). The Promise of Entrepreneurship as a Field of Research. Academy of Management Review, 25(1), 217–226.
  • U.S. Small Business Administration. (2000). Small Business Economy: An Analysis of the Small Business Sector. SBA.

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