ENTREPRENEURSHIP 1 ENTREPRENEURSHIP Name: Instructor: Unit: School:
Introduction A business is a legal undertaking that is established to generate profit. A person who aspires to have a business is called an entrepreneur. In order for one to start a business, he or she must follow certain guidelines like having a business plan and a license. However, it is not easy to start a business because of the following barriers: depending on interest and hobbies to run a successful business; management of a start-up is extremely difficult especially for the new entrepreneurs; overestimating of personal qualities depending on the interests of the entrepreneur; overestimating the market by the novice entrepreneurs; and doing less market research (Stevenson, 2007). These are the most notable barriers to a successful business. This study will also tackle the assumptions entrepreneurs make that are not always right until a deeper research is done to ascertain them. For instance, market research, business plan and listening to stakeholders can improve the overall longevity of the business. Another section that will be looked at is how entrepreneurs can implement changes without interfering with the original business goals. Finally, this study is going to look at the measures that novice entrepreneurs must deploy for a business to succeed. Business development barriers Entrepreneurship is the key to a country's economic and social development. According to Fillis, (2003) in order to promote entrepreneurship and entrepreneurial culture of a country, we need to first understand the barriers that can hinder the formation and development of a new business. Although these barriers are not similar to every individual, there are some that are common across the border. These barriers can hinder the development of a business unless action is taken to eliminate them. The first barrier to the formation of a business is, interest without ability. It is totally difficult for one to start a business just because he or she has an interest in that area (Leonidou, 2004). However, interest should be incorporated with other factors like the ability to raise enough capital, labor, interest resources and market. All these factors play an important role in establishing a successful business. For instance, capital is important since a business starts with either its own assets or by just hiring. Here it is the capital of the business that is used to buy or hire assets to start a business. Also, labor is another important feature that should be available when starting any business. Labour can be in the form of hired workers or if the business is not big, the owner can provide the required labor. Last but not least, it is important to note that in order for a business to be viable the entrepreneur should make sure that they venture into a business which they have interest in (Leonidou, 2004). this is important because without interest
a business will struggle to survive since the owner has no personal will-power to propel the business into a profitable venture.
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- Winter '15
- Business, Entrepreneurship, business owner