Entrepreneurship and Business Life Cycle

This assignment examines the concept of the business life cycle and its relevance to entrepreneurial ventures. It delves into various stages of the life cycle, highlighting the unique challenges faced by businesses at each stage. The analysis considers factors influencing a venture's launch, such as motivation and start-up decisions, alongside external influences that shape its trajectory. The assignment emphasizes the importance of understanding the life cycle process for effective management and navigating business complexities.

HUMAN
CAPITAL AND
ENTREPRENEU
RSHIP

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
New business idea covering all the elements ........................................................................3
TASK 2 ...........................................................................................................................................4
Opportunities for the proposed new business. .......................................................................4
TASK 3 ...........................................................................................................................................6
Critically analyses the human resource strategies for purpose to new business start up. .....6
TASK 4 ...........................................................................................................................................7
Analyse the challenges which might emerge at each stage in the life cycle of the venture. . 7
CONCLUSION.............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Entrepreneurship is the process which results in creating new ventures that helps on
meeting the specific needs and desires in order to create value of the business. Entrepreneurship
is the key which is used to indicate the economic growth of the business. The role of
Entrepreneur is very significant in Entrepreneurship process, they are seen as the keen agents
who can indulge creativity and helps in developing new growth opportunities of the business.
The main focus of this report is upon the evaluation of the business opportunities and the
construction of relevant strategies for the success of the business venture.
TASK 1
New business idea covering all the elements
Product or service: The first and main work for establishing a new business is what will the
product and service. For an example, for a restaurant business fast-food items will be the
product. Products and services will help to attract and assist customers in the market in order to
make profits. The idea is to develop a quality and effective products as well as services that
helps to enhance business operational activities and profitability effectively and efficiently.
Priority Customers: Customer priority is one of the major concept which should be considered
during a new business venture (Burton, Sørensen and Dobrev, 2016). Customers are the key
towards business success and failure effectively. Customer priority can be understand in a way
that some consumers in the market requires good attention of business that they are special for
some reasons. In order to maintain the customer priority the business should make policies and
plans that helps to enhance business profitability and production.
Superior Value Propositions: Customer value proposition describe a marketing statement of
business which demonstrate why should a customer buy product or services. It is specially
towards the target and potential customers rather than others such as partners, employees or
suppliers effectively.
Channels: Channels refers to the process of business products and services to customers.
Channel can be described as a path in which organisation supply its products to customers in the
market (Lee, Hallak and Sardeshmukh, 2016). For an example, store, online facilities and other
medium from which the business is able to provide its services to customers. This will help
business to assist customers in the market more easily and effectively.

Relationships & Partnerships: Relationship and partnership are both important as well as in
their own regions. Customer relationship is important for the firm in order to increase
satisfaction and loyalty which lead towards production and profitability (Terjesen, Hessels and
Li, 2016). In addition to this, partnership is where a business is run by two or more than two
owners effectively. Business relationship is also crucial that it helps to manage and control
profitability ratio as well as losses.
Resources Requirements: Resources are the main factors to establish a new business. Every
business requires resources to run operational activities in order to produce production and
profitability. Business resources such as human resource, financial and non-financial resources
etc. this will help to achieve desired goals and objectives by managing them effectively and
efficiently.
Competitive Strategy: Competitive strategy is developed by business management in order to
increase competitive advantage over its competitors in the business. Return rate of investment
will help to enhance competitive advantage for business effectively. Every business requires a
strong and powerful competitive strategy in order to compete others in the market which lead
towards production and profitability. This will also help to manage business operational
activities by assessing strategies and plans adopted by successful businesses in the market.
Identity: Identity refers to determine business various resources and other needs which helps to
establish new objectives and aims for the organisation (Williams, Huggins and Thompson,
2017). This will also help to evaluate market position of the firm that every brand needs a
identity in terms of brand logo, image and name. Brand identity helps customers to remember
the name of brand which will help to tell others about it. Identity should be effective enough that
customers can easily recognise it. This will help to increase customer loyalty and also brand
image which lead towards production and profitability.
TASK 2
Opportunities for the proposed new business.
Whenever organizations wants to expand and establish their business functions they need
to consider various factors that are useful for the business in order to maintain its position in the
competitive market. Business expansion is the process of expanding the functions of the
organization in order to increase its productivity and profitability. The expansion of the business
rotates around the two major aspects, one is planned expansion and the other one is managing

unexpected growth of the business. The individuals wants to establish their tour and travel
company for millenials, who are ready to pay good amount for money for existing and
adventurous experiences. The company is going to offer various features which also includes
the options through which they can customize the packages of the tour as per their desires and
requirements of the customers(Lee, 2017). The member wants to establish the tour and travel
agency for the millionaires of the Indonesia. Around 41 % of the total population of the
Indonesia is Javanese people. To say that Indonesia is a vast and geographically disparate
country would be an understatement: with its 258 million inhabitants spread across over 6,000
islands , it is the world’s fifteenth largest economy and fourth most populous country after India,
China and the US. Driven by rapid urbanization and a relatively youthful population, Indonesia’s
Gross Domestic Product (GDP) has been growing at an average rate of 6% throughout the last
decade2 , with private consumption rates of up to 57% of GDP3 – significantly higher than
neighboring commodity exporters , Malaysia and Thailand. For retail companies looking to
invest in Southeast Asia, Indonesia represents a market that is brimming with promise. But first,
they will need to take stock of the dynamic and ever-changing Indonesian consumer. Confident
consumers The profile of the Indonesian consumer has been steadily evolving along two key
dimensions: the increase in disposable household incomes, and the rise in urbanization rates.
Over the last decade, Indonesia has experienced a steady growth trajectory in terms of GDP, and
this has ultimately led to an increase in household disposable incomes. Coupled with growth in
its population size, this trend has given rise to a significant middle class with headroom to
increase discretionary spending. The number of households with high annual disposable incomes
of over IDR 120 million (approximately US$10,000) has doubled between 2006 and 2011, and
has continued to increase ever since then According to estimates, Indonesia’s middle class –
consisting of households with incomes between IDR 36-120 million – will also expand to
include 32 million households by 20204 , representing a solid foundation for growth in
consumption. The business environment of Indonesia is very critical and it needs political
stability within it in order to conduct the business functions effectively and efficiently. It also
requires conductive investment climate to grow. In Indonesia tourism plays very vital role as a
major component of its economy. As per the reports of 2014, the travel and tourism industry
contribution was 325,467 billion approximately. The people of Indonesia are very motivated and
excited towards the shopping and experiencing adventurous experiences, because there is so

much wealth in the country and their people are not reluctant in paying good amount of money
for biding such unique and exciting experiences. The company can also come up with various
kinds of options that are useful in gathering the attention the Indonesian Millionaires and
motivated them towards the offerings of the new company(Gomezelj, 2016).
TASK 3
Critically analyses the human resource strategies for purpose to new business start up.
The human resource to the enterprise are the main element in relation to carry out the
activities of proposed firm, without them it is not possible to conduct the operation of firm
effectively. There is to take various initiative in order operate the activities of firm in relation to
travel agency. There are various kinds of human resource strategies as are-
Recruitment- This is one of the essential step in order to hiring the employees of the firm. It is
need to be done in the expertise manner. This is one of the negative process in which manage of
the firm nee dot carry out the all process effectively. With the help of hiring highly suitable
employees to the entity. They are able to derive the large amount of profitability and
productivity. The employees to the firm need to do these activities expertly as the overall
function of enterprise depends on the process of recruitment.
Selection- This kind of process can be called as negative process. In this the number of selected
employees is less than the number of recruited. This kind of process can be called as the negative
process. In order to carry out the activities of firm expertly, so that operation of business
enterprise can be conducted effectively. The organization need to have skilled employees as they
need to carry the operational function of firm in expertise manner. By hiring the skilled
employees the firm is bale to carry out the operational function smoothly. The new venture
should have expertise employees so that they are able to bring development in the activities of
firm.
Training- in this it can be stated that it is essential provide effective training to the employees so
that things can be carried out effectively. The firm need to provide effective training facility so
that they are able to conduct the operation of firm in expertise manner. The training will be given
so that they can have the solution about the various kind of issues to the business enterprise. This
is kind of undertaking which is helpful to provide better learning to employees so that they can
perform business activities expertly. By providing the effective training facility the employee
can have better learning about the functional process of enterprise.

Performance management- This is ongoing process in which there is need to have better
communication between the supervisor and employees to the firm. In this all things are need to
be carried out in the specific manner so that performance cam be done effectively. It is the kind
of procedure in which the employees and manager to the firm works as to plan, monitor, and
review the all business activities in the expertise manner so that firm is able to operate its
business function in expertise manner. The employees and manager should have one goal so that
they are able to process the activities of fir in the effective manner. It is the important process as
it is helpful in relation to accomplishing the strategic objectives of the business Enterprise. The
main aim of this organizational objectives is to have various skills, performance goals and
competencies of employees. It involves creating a workforce that has an understanding of what
is to be achieved at the overall organizational level.
Motivation- In these employees need to perform its business activities effectively. The firm
need to motivate the employees so that all together they re able to carry out the process of the
firm in expertise manner. Motivation is the term which is helpful in order to have large
profitability to enterprise. It is the process with the help of which individual to the firm can carry
out their process effectively. Under these employees to the firm motivated so that they can able
to carry out the process of firm expertly. It is the process under which works as to carries out the
process in the manner as to full fill needs, desires, wants or drives within the individuals. It is the
kind of process which works as to stimulating people to actions in order to accomplish the
goals.
TASK 4
Analyse the challenges which might emerge at each stage in the life cycle of the venture.
Indonesia is APAC’s digital laggard, with relatively low levels of internet penetration
among its 264 million strong population. However, with that population set to increase by 13.4
million by 2022, its Digital Consumer Index score should rise considerably, as half of the
population gains access to the internet. Of those who are already connected, 43.5 percent are
digital buyers. And their numbers are expected to surge to 65.4 percent of internet users by 2022.
Per-capita spend on digital purchases remains at a fairly low level, just USD 31.70 per buyer.
But expect that to more than double in the next five years. 72% of Indonesian consumers shop
online to save time rather than money42 The predicted significant increase in digital commerce

will be powered by Indonesia’s general economic expansion. GDP growth is expected to
continue at an annual average of 5 percent, providing a solid foundation for new investments in
the country and increasing the disposable income of the growing middle class (already among
the world’s largest). Other important drivers include the relative youth of its population, with 50
percent qualifying as millionaires . With smartphone users already spending an average of 181
minutes on their devices each day (the highest amount of time anywhere in the world), there’s
clearly a huge opportunity for mobile commerce. When it comes to the factors motivating the
Indonesian digital shopper, a few stand out. Almost a quarter of digital consumers would be
willing to pay a higher price if that ensures a wide range of options, or higher quality. At the
same time, nearly half say they’d readily switch brands in line with brand-based promotions.
And finally, 90 percent are eager for a seamless multi channel shopping
experience(Gomezelj,2016).
Life Cycle of Venture :
New- Venture Development :
This is the first step, it revolves around the tasks and activities that are considered as the first or
initial step of the venture. The first step is considered s the foundation upon which the whole
formulation of the entrepreneurial process depends and it is also very important to indulge
certain kind of creativity and innovations within it. In order to expand the formulation of the
resources it is very essential to involve creativity within the work. There are various kind of
sources that are demonstrated during this step like general philosophy, aims, scope and other
Illustration 1: Life Cycle of Venture

factors that are inter related with the enterprise. The company wants to establish new business in
tour and travel industry, for this it is very essential for them to gain the information about the
target audience of the Indonesia, so that they can modify their working as per the desires and
expectation of their target customers(Gretzel, 2015).
Start Up activities :
This is considered as the second step or phase of the cycle, it involves encompassing the
foundation of the work which was later needed for creating the business plans, searching for
capitals and effectively carrying out the various activities of the market in order to develop the
effective entrepreneurial team. These are the activities which involve, gathering information
about the various types of adventurous sports or activities which the tour operators can offer to
their customers, it also includes collaborating with the hotels and resorts of the various countries
in order to provide premium experience to their customers(Xiang, 2015).
Growth :
This is the phase where some prominent changes in entrepreneurial strategies are required in
order to initiate some major variations. These changes depends upon the internal and external
factors of the market and the occurrence of competition in the market. The problems that are
present in this stage are critical and crucial in comparison to the problems that are being faced by
the venture in initial stage. It is the method of combining the one person leadership into team
based leadership effectively and efficiently(Schoch, 2015).
Business Stabilization:
This stage is the combination of results of both entrepreneurs efforts and market conditions, this
is the stage where number of common development takes place, it may also includes the rise in
competition and the saturation of the market. Sales begin to stabilize and the entrepreneur must
begin thinking about where the enterprise will go ever the next three to five years(Fisher, 2016).
Innovation or Decline :
This is the last stage, where if firms not indulge innovation in to their working it is impossible for
them to survive in the competitive market. The successful and well noted firms always indulge
innovations into their working in order to gain the attention and attraction of the customers. Many
firms will work on new product/service development in order to complement current offerings. All
of venture’s life cycle stages are important strategic points and each requires a different set of
strategies. For these the members of the company can introduce various types of innovative and

create offering for their customers in order t gain the competitive edge in the tourism
industry(Islam,2018).
CONCLUSION
It can be concluded from the above report analysis that every business needs various
resources and strategies to establish a new business in the market. In addition to this, products
and services, customer priority, value proposition, resources, competitive strategy and
relationship management are some essential factors. There are so many opportunities for a
business by incorporating relevant resources related to the business environment effectively.
Human resources are the main factors that helps to drive the business performance. Strategies
such as recruitment, performance management, selection and motivation are some factors
considered by HR. Many challenges are faced by business at the stage of life cycle process
which can be for business or products. Life cycle process should be effective to manage such
challenges in organisation effectively.

REFERENCES
Books and Journal
Burton, M.D., Sørensen, J.B. and Dobrev, S.D., 2016. A careers perspective on
entrepreneurship. Entrepreneurship Theory and Practice 40(2) pp.237-247.
Fisher, G., 2016. Changing with the times: An integrated view of identity, legitimacy, and new
venture life cycles. Academy of Management Review. 41(3). pp.383-409.
Gomezelj, D. O., 2016. A systematic review of research on innovation in hospitality and
tourism. International Journal of Contemporary Hospitality Management. 28(3). pp.516-
558.
Gretzel, U., 2015. Conceptual foundations for understanding smart tourism
ecosystems. Computers in Human Behavior. 50. pp.558-563.
Islam, M., 2018. Signaling by early stage startups: US government research grants and venture
capital funding. Journal of Business Venturing. 33(1). pp.35-51.
Lee, C., Hallak, R. and Sardeshmukh, S.R., 2016. Innovation, entrepreneurship, and restaurant
performance: A higher-order structural model. Tourism Management 53 pp.215-228.
Lee, M., 2017. Identifying new business opportunities from competitor intelligence: An
integrated use of patent and trademark databases. Technological Forecasting and Social
Change. 119. pp.170-183.
Schoch, H., 2015. The moderating effect of organisational life cycle stages on the association
between the interactive and diagnostic approaches to using controls with organisational
performance. Management Accounting Research. 26. pp.40-53.
Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A review
and research agenda. Journal of Management 42(1) pp.299-344.
Williams, N., Huggins, R. and Thompson, P., 2017. Social Capital and Entrepreneurship: Does
the Relationship Hold in Deprived Urban Neighbourhoods?. Growth and Change 48(4)
pp.719-743.
Xiang, Z., 2015. Information technology and consumer behavior in travel and tourism: Insights
from travel planning using the internet. Journal of Retailing and Consumer Services. 22.
pp.244-249.