Entrepreneurship and Innovation: Challenges and Capital Sources for New Ventures

Running head: ENTREPRENEURSHIP AND INNOVATION
Entrepreneurship and innovation
Name of the Student
Name of the University
Author Note

1ENTREPRENEURSHIP AND INNOVATION
Executive Summary
The purpose of this report is to analyze new business venture in order to find out the capital
sources required for the new business venture and the methods by which they are obtained. The
selected business venture to be discussed here is the business venture conducted by one of the
most renowned entrepreneur of America, John Paul DeJoria. The mentioned entrepreneur has
conducted the business venture of providing the people with superstar hairstyle. Along with that,
the entrepreneur has successfully established the business of High end alcohol by the name of the
Patron Spirit Company. In this report the challenges and difficulties faced by the business
ventures in USA will be analyzed. Along with that, the issues associated with legal,
technological, political, economic, environmental, social and cultural factors will also be
discussed in this report.

2ENTREPRENEURSHIP AND INNOVATION
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Capital resources for the new venture and methods of obtaining the same.................................5
PESTLE Analysis of the American Market.................................................................................9
Risks associated with the business venture of John Paul DeJoria.............................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3ENTREPRENEURSHIP AND INNOVATION
Introduction
The term business venture can be defined as a start up entity which has been developed
with the intention to get profited financially. The success of a business venture is highly
dependent on the efficiency and farsightedness of the entrepreneur. Majority of the business
ventures are created on the basis of the demand of the market. Entrepreneurs generally identify
the needs of the consumers for the specific product or service and based on the specific
requirements of the consumers, the investors proceed to develop innovative ideas. These ideas
are then marketed and the final product is old to the consumers to meet their requirements and
experience gradual enhancement in the revenue of the system. A business venture can be
conducted by a single entrepreneur as well as a group of entrepreneur with the same objective of
gaining financial success. According to researchers, conducting a business venture in a already
saturated market may result in failure (Beamish, 2013). Hence, it is highly crucial for the
entrepreneurs to conduct in depth research of the market about the availability of the product or
services to be offered to the consumers. Majority of the successful business ventured has taken
note of the demand of the market since high demand along with lack of supply of the product or
services to be offered to the consumers facilitates busies venture. When it comes to the
entraprenual business venture, the venture includes new products instead of old business models.
In this report, the business venture of John Paul DeJoria, one of the most renowned
American entrepreneur and a self made billionaire has been highlighted upon. He is best known
for being the cofounder of the Paul Mitchell line of hair products and for being the founder
of The Patrón Spirits Company. While DeJoria committed himself to the business of Paul
Mitchell, who was a superstar hairdresser of his time, the startup for the business was only 700