The Entrepreneurial Process Essay

787 WordsDec 17, 20114 Pages
The Entrepreneurial Process The process of starting a new business venture requires more than good problem solving skills which would typically be a necessity in a standard management role. From the outset an entrepreneur has to conduct preliminary work. They must discover, evaluate, and develop an opportunity by overcoming the forces that resist the creation of something new. The development of a business has four separate stages, identification and evaluation of the prospect, development of a business plan, determining the required resources, and managing the subsequent business. The phases proceed progressively, although no stage is dealt with in isolation or is completed before to the next phase. If identifying and evaluating an opportunity was an easy task there would be more entrepreneurs in the world. Most successful business opportunities do not suddenly present themselves. It is an arduous phase with the entrepreneur remaining open and vigilant to new possibilities. There is no set system for identifying potential business opportunities, although some can be more useful than others, for example, speaking with consumers and business associates, members of the distribution system, and technical people. Listening to consumers’ needs could be viewed as the best source of ideas for a new venture as many new businesses grow from a need in the market. Whether the opportunity is identified by using input from consumers, business associates, channel members, or technical people, each opportunity must be carefully screened and evaluated. This evaluation of the opportunity is perhaps the most critical element of the entrepreneurial process, as it allows the entrepreneur to consider whether the specific product or service has the returns needed compared to the resources required. The evaluation process involves looking at the length of the opportunity, its

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