Executive summary This report highlights the business venture forSaygin Yalcin, the German entrepreneur and businessperson. Saygin Yalcin created a website that provides an opportunity for people to sell their cars in just 30 minutes.
Introduction As commented by Drucker (2014), the concept of business venture highlights the start-up entity developed with the intention of incurring financial profitability. The majority of the business ventures are created by considering the demand of the market. In other words, lack of supply in the market facilitates business ventures (Brenkert, 2017).
Discussion: Capital sources for the new ventures and methods of obtaining the capital source Funds availability: As commented by Grilli & Murtinu (2014), it is important for the new business ventures to collect adequate funds and resources for establishing and conducting the business successfully. Sources of new ventures:The different capital sources for the new ventures are a personal investment, venture capital, angels, business incubators and government grants and subsidies.
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Cont.. The individual starting the new venture needs to use their own cash or use existing assets (Bruton et al., 2015). As mentioned by Bertoni, Colombo & Grilli (2013), the concept of venture capital highlights the interest of the venture capitalists for a business that is technology-driven
Cont.. According to Petkova, Rindova & Gupta (2013), angels are wealthy and retired individuals that aim towards investing in smaller firms that are owned by other individuals. Business incubators are another type of capital sources of new business venture that emphasizes on the high-tech sector and provide economic support at every stage of developing the business (Mohammed & Obeleagu- Nzelibe, 2014).
Types of business ventures The different forms of business structures for the business ventures include sole proprietorship, general partnership, limited partnership, limited liability partnership, corporation and nonprofit corporation. As commented by Macht & Weatherston (2014), the concept of sole proprietorship highlights a single owner for the business. It is one of the most common business structures for business ventures, as it is simple to operate, provides greater flexibility and incurs less tax
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Cont… All the partners of the business contribute money, skills and labor for the business (Morris, Shirokova & Shatalov, 2013). The general partners have equal shares in terms of profit and loss of the business whereas the limited partners have equal shares in terms of profit but losses are restricted to their extent of investment. Additionally, limited partners have restricted involvement in the business venture (Beamish, 2013).
PESTLE analysis of German market The PESTLE analysis of German market is furnished below that helps in determining the potential challenges, risks and difficulties forSaygin Yalcin for a business venture in the German market. Political:it is difficult for the entrepreneurs and business ventures, as they have to consider the political aspects of both the European Union and the German market (Pregger, Nttsch & Naegler, 2013). Economic:Germany is one of the countries in the European Union that has one of the highest economies. Till 2007, the German market has been recorded to have the highest economy but a major declination has been noticed during the recession that hit during 2008 and 2010.
Cont.. Social:The German market has a higher literacy rate that also makes it easier for new business ventures, as they are able to understand and uptake the new business idea easily (Plieninger et al., 2013). Technological:The German market spends almost 1.21% of the GDP for research and development thereby, influencing entrepreneurs and new business ideas (Jentsch, Trost & Sterner, 2014). Legal:. In Germany, each of the companies is considered as separate legal entities and has distinctive legal frameworks (Huang, Krysanova & Hattermann, 2015). Environmental:The government of Germany has undertaken steps for preventing emissions and deforestations and has enforced that the industries take eco-friendly measures for conducting business.
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Risks of the chosen business venture The entrepreneur has aimed to conduct the business venture in the German market. In order to conduct the business venture in the German market, the macro environment has been analyzed. Based on the macro environment of the German market, the business venture proposed by Saygin Yalcin has potential challenges and difficulties. Another issue that Saygin Yalcin will encounter is the higher tax rate that the country imposes. As the business venture is a new idea and is less recognized, it will take time to get settled in the German market. But, Saygin Yalcin has to pay tax appropriately and cannot compromise regarding it. In addition to, the strict legal framework of the German market will impose a penalty if Saygin Yalcin fails to pay the tax according to the business venture (Zhao, Hwang & Yu, 2013).
Cont.. Saygin Yalcin has to invest a considerable amount in the business venture. This is because Saygin Yalcin has selected sole proprietorship as the business venture. Thus, investing a huge amount of funds for setting up the business might be challenging for Saygin Yalcin (Ratten, 2016).
Conclusion Entrepreneurs are the ones that have the vision of solving the problems of the target market by bringing innovative business ideas. The report highlights the new business idea proposed bySaygin Yalcin that solved the issue of selling cars for the entire population. Among the different kinds of business ventures, a sole proprietorship is the business venture selected by Saygin Yalcin and the sources of capital sources are a personal investment.
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References Beamish, P. (2013).Multinational joint ventures in developing countries (RLE International Business). Routledge. Bertoni, F., Colombo, M. G., & Grilli, L. (2013). Venture capital investor type and the growth mode of new technology-based firms.Small Business Economics,40(3), 527-552. Brenkert, G. G. (2017). Entrepreneurship, ethics, and the good society. InEntrepreneurship(pp. 85-128). Routledge. Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New financial alternatives in seeding entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer innovations.Entrepreneurship Theory and Practice,39(1), 9-26.
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