Entrepreneurship Development- PDF

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ENTREPRENEURSHIP
DEVELOPMENT
Table of Contents
Section 1: Introduction and proposed development of idea.............................................................3
Section 2: Opportunity Formation...................................................................................................4
Section 3: Opportunity Development..............................................................................................6
Section 4: Conclusion & Recommendation....................................................................................9
REFERENCES..............................................................................................................................10
Section 1: Introduction and proposed development of idea
Entrepreneurship is the process of developing, organizing and managing a business to
earn profit by engaging labour, land, natural resources and capital. It is the conversion of idea
into a new business venture by considering the associated risks. Entrepreneurship requires
innovative ideas in order to survive the competition in the market. This report is about creating a
new venture in the field of agriculture of vegetables in United Kingdom. In this report, the
process to develop a new venture, the opportunities formation anddevelopment for the venture
and the outcomes of the venture have been discussed.
Agriculture has a major contribution in the UK economy. Before Brexit, the agriculture
sector was operated by Common Agricultural Policy by EU. Post Brexit, the UK need new
policies for agriculture department. In 2005, UK agriculture sector has contributed approx.
£24bn of revenues and £8.5bn of Gross Value Added (GVA)to the economy, 475,000
agricultural jobs and 30,000 jobs due to supply chains were created. The UK agriculture sector is
a major exporter of its products to Irish Republic, Germany, France and Netherlands (Alsos,
Carter and Ljunggren, 2011).
As the agriculture sector is a major contribution to the economy, therefore a new business
venture could be a success. The venture will producing beetroot, cabbage, kale and brussels
sprouts. It will be a small sized venture that will grow 100% organic vegetables by restricting the
use of pesticides. It will follow the safety and health guidelines of the government for organic
vegetables. The whole process of supply of vegetables in UK or outside the UK will be tracked
online. The major crops will be beetroot and cabbage as the demands of these two vegetables are
more in domestic as well as in international market.
The new venture will use advanced machineries, restricted use of pesticides to restore the
organic element and fertilizers. Firstly, the land will be acquired which will be divided into four
sections. This will be done by taking loan from government organization. Before starting the
business venture, entrepreneurial guidance will be taken from National Federation of Young
Farmers' Clubs (NFYFC) and Savills. Secondly, the seeds of various vegetableswill be
purchased and sown. Thirdly, variouswholesalers will be contacted to buy the vegetables.
Venture will be supplying to both local and supermarkets in UK. It will also export to the
countries where there is a high demand of these vegetables. Lastly, the company will try to
maintain the level of vegetables equal to the demand in order to save it from cold storage for
long days (Audretsch, 2012).
Section 2: Opportunity Formation
The vegetables that will be produced are cabbage, beetroot, kale and brussels sprouts.
The amount of pesticides will be restricted in order to make the vegetables organic. Along with
this, cold storage facility will be provided to other farmers by charging a monthly charge
depending on the quantity of the vegetables. It will also provide an online service to its
customers to give orders online (Berglund, Johannisson and Schwartz, 2012).
The venture could face many problems such as use of high amount of pesticides when
there are chances of the crop being damaged, getting the loan approved for buying land and
machineries, online facility could be disrupted due to the network issues in agricultural areas, the
agricultural lands are situation in rural areas only. Further, the problem of not getting sufficient
number of buyers of the vegetables, the supermarkets may not be interested in the deal, damage
to the vegetables being perishable goods etc. Every new business venture face problems in the
initial phase and some problems may exist after the initial phase is over. The problems that the
business could face is to be competitive to survive in the market, whether to expand the business
or not in order to grab a large market share, change in the policies with the change in the external
environment, shortage of resources in special occasion or when the demand is too high and the
time to meet the demand is limited.
High amount of pesticides: There may arise situations when the amount pesticides
needs to increased. One of such situations is when the crop has started to damage
by insects and such damage can be prevented only by increasing the quantity of
pesticides to be sprayed on the crops. The most important requirement of organic
cultivation is to use the pesticides in a reduced quantity.
Loan:To start a agriculture business, one may need loans from the government to
buy land and machineries (Bernhard and O'Driscoll, 2011). The approval to loan
could take number of months causing delay in the whole process of starting the
venture. Also there is no guarantee that the loan will approved. In case the loan
approval gets rejected, a new loan application has to be made which will again be
a lengthy process.
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