Entrepreneurship: The concept, application, processes, practice & prospects - Part 3

Reasons for Starting-Up New Business:

A research by Birley & Westhead (1994) found seven (7) components of new venture motivation as follows:

1• The need for Approval.

2• The need for Independence.

3• The need for Personal Development.

4• Welfare (Philanthropic) considerations.

5• Perception of Wealth.

6• Tax Reduction and Indirect Benefits, etc.

7• Following Role Model.

The research by Birley & Westhead (1994) findings threw further light on some reasons why we intend starting our businesses or enterprises. Our needs or reasons for starting a business might not be the same, however, no matter our need or reasons for going into a particular enterprise and not the other, largely can broadly (specifically) be categorized under: for approval, for independence, for personal development, for philanthropic advances, for wealth affluence, for tax reliefs, or to emulate a mentor.

As you intent to start a business or enterprise, find space and time to give (find) reasons as to why the need for the venture. Probe yourself and ask pertinent questions as to why you starting the business.

Do a small (brief) cost and benefit analysis to see if the benefit for starting the business will far outweigh the costs (risks) for doing the business. If the benefit is higher than the costs (risks), it is suggested you go into it. This brief analysis is not absolute and final.

In-depth and proper research like feasibility analysis, market survey, and other tools will assist to a greater length in ascertaining the prospects or otherwise of your intended business.



Entrepreneurial Skills and a few of such General Management Business Skills:

A skill is simply knowledge which is demonstrated by action. It is an ability to perform in a certain way. An Entrepreneur is someone who has a good business idea and can turn that idea into reality. To be successful, an entrepreneur must not only identify an opportunity but also understand it in great depth.

1• Strategy Skills.

2• Planning Skills.

3• Marketing Skills.

4• Financial Skills.

5• Project Management Skills.

6• Time Management Skills.

7• Leadership Skills.

8• Motivation Skills.

9• Delegation Skills.

10• Communication Skills.

11• Negotiation Skills.

NB: Strategy, planning, marketing, financial, project and time management skills are needed for the smooth running of the Start-up business hence termed INTERNAL SKILLS. Whilst from leadership, motivation, delegation, communication and negotiation skills are required for the prospects of the business and growth, hence termed as EXTERNAL SKILLS required for the business.

As you already into an enterprise or business, perhaps you yet to start an enterprise of your choice (aspirations), kindly spend some energy and efforts to learn (understand) these skills to an appreciable level. With the mastering of these skills, it is our expectation that, all things being equal you starting or building on a springboard of requisite knowledge to aid you progress, succeed, and achieve your set targets (goals/objectives) efficiently and effectively.

Skills are learnable and adaptable, kindly learn these skills to heart, put to practice, and model it to reflect your business style. As an entrepreneur let these skills be your personality guide and a trait easily identified with your brand (name).

Indicators to Consider When Starting a Business (The New-Venture Creation Process):

These are indicators or variables to consider when starting a new business to an Entrepreneur (an individual).

• The Environment: The environment is the most comprehensive in the venture creation process.

• Feasibility Analysis: The business process concept is tested through a process of feasibility analysis.

The feasibility analysis (study) primarily focuses on 4 (Four) Areas:

1• The Product/Service.

2• Industry/Market/Customer.

3• Founding Team (management/Brains).

4• Financials (Capital, Budget, Projections etc.).

• Viability: Viability is to put the business concept to test in the real world to actually determine if the business has viability.

• Barriers to Entry: It includes but not limited on the following”:

1. Economies of Scale.

2. Brand Loyalty.

3. Switching Costs for Buyers.

4. Access to Distribution Channels.

5. Capital Requirements.

6. Proprietary Factors.

7. Government Regulations.

• Threats from Substitute Products.

• Threats from Suppliers Bargaining Power.

• Threats from Buyers Bargaining Power.

• Industry Hostility.

As an entrepreneur there are certain indicators or variables to consider before (when) starting an economic venture, these indicators are: the environment, feasibility analysis, product/service viability, barriers to entry, threats from substitute products, threats from suppliers bargaining powers, threats from buyers bargaining powers, and the industry hostility you a player in. The cogent point to be considered here is that, these variable or indicators vary from one entrepreneur to the other or from one enterprise (business) to the next enterprise (business).

Exercise considerable efforts to understand your enterprise dynamics and act accordingly to keep these indicators at bearable check. With enough knowledge about your business and the indicators or variables that directly or indirectly relates with your business operation, you almost ahead your competitors. With this you can benefit from the lapses and weaknesses of your competitors (the market), then you take advantage of the situation to turn things in your favor. Be mindful that: precision, tactfulness, effectiveness and strategizing is paramount to starting your business anew and scaling up to success upon success.