BMA 703 : Entrepreneurship
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Entrepreneurship (BMA 703)
Added on 2020-05-08
BMA 703 : Entrepreneurship
Entrepreneurship (BMA 703)
Added on 2020-05-08
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Running head: BUSINESS ESSAYBusiness EssayName of the Student:Name of the University:Author Note:
1BUSINESS ESSAYIntroductionThe establishment of the new venture leads towards the financial and personal rewards.The emergence of the globalization helps in adopting the innovative business procedures thatdetermines the business success (Miller 2015). However, on the contrary, such innovativeapproaches in the business market are influencing the demands of the consumers as well. Mostly,the entrepreneurs face the difficulties in the market since they need to take the activeparticipation in the competitive market against the giant organizations (Ferraro and Briody2017). Accordingly, they even face some of the considerable challenges as well. The investmentof the adequate resources and efforts is essential for developing a business. The essay would thusfocus on some of these considerable challenges that have the significant impact on the newventuring process. Every business marketer seeks opportunity to create successive positioning inthis competitive business market. Therefore, the study would discuss the probable challengesfaced by the business marketers in time of establishing the new ventures. The study would alsodevelop the ideas about the actions undertaken by the entrepreneurship business to maximize thelikelihood of success in the start-up business process. DiscussionIn current scenario, it has been observed the traditional avenues of the corporate growthare becoming less attractive due to which the new ventures are emerging in a recognizable way.The emergence of the new ventures is not an easy process for the entrepreneurs and they faceenormous challenges at the initial stage (Hatten 2015). The slow to repay investment is one ofthe major determinants that generally occur in the new venturing process. The strategies appliedto the new venturing process often facilitating the entry into new business areas with the usual
2BUSINESS ESSAYtechnological products and innovativeness. The larger enterprises are associated with thedifferent layers of management with a detailed control system. Moreover, these enterprises offerthe special advantages of recapturing the charms of entrepreneurial energy (Foss and Klein2015). It is even essential to concentrate on some of the beneficial factors or strategies thatwould help the new venture to strengthen the competitive positioning. The first challenge is faced by the new venturing process is the enormous competitionposed by the large enterprises. The fierce competition, the low barriers to entry, and the plenty ofaccess to the capital resources are opportune enough for the ventures in maximizing profits. Inspite of the enormous opportunities, the entrepreneurs usually face difficulties (Breuer 2013). Itis notable that the larger enterprises usually invest more capital amount to develop the innovativetechnologies. The higher growth and the extensive sources are helpful enough for the largerenterprises to develop the customer base. These enterprises gather the complete knowledge aboutthe customer demands. Even when the demands are changed, these companies can utilize thesufficient resources to fulfill the expectations or bring any innovation. However, it is quitedifficult for the entrepreneurs since they have the access to the limited resources. On the otherhand, the lack of the adequate experiences is also creating obstacles in terms of participating in acompetitive scenario (Haigh and Hoffman 2014). The market competition is thus one of themajor considerable determinants for the startup businesses. Another difficulty for a new venturing process is the method of obtaining financing.Sometimes, it becomes hard for the entrepreneurs to identify a fruitful financial institution thatwould lend money to start the business. It is thus necessary to explore the alternative solutionsfor financing. For example, the entrepreneurs might have to borrow money from the familymembers, or use the personal savings. Entrepreneurs may anticipate the difficulties in financing
3BUSINESS ESSAYfor the new venture due to such obstacles. According to Wales, Wiklund and McKelvie (2015),establishing a new business is equal to a roller coaster ride in which the entrepreneurs would facethe ups and downs. During the lean moment, the business marketers may face the considerablechallenges in investing the adequate amount of money. Moreover, they even need to develop theemotional balance to deal with such uncertain situations. It is to be notified that the establishmentof a new venture is not the part time process. It is essential to invest the ample amount of timethat can be beneficial in paying attention to the entire infrastructures and business needs. Theproper planning within a scheduled time would lead towards successful business venture. Paridaet al. (2015) suggested that having a positive team or hiring a positive team is not the onlycriteria for the business success. Leading the team towards the right direction is necessary fordeveloping a new business successfully. Devoting money, resources, and time are the majorcomponents to establish a new business. Another major issue faced by the entrepreneurs is the lack of sequential planning. Asuccessful new venture requires proper planning that includes the necessary steps of businessdevelopment. However, it is essential for the entrepreneurs to develop the fruitful strategy for thesequential execution of the business planning. Formal and structured business plan writing wouldbe helpful in such cases (Kuratko, Hornsby and Hayton 2015). The major purpose of theeffective business plan is to identify the potential challenges that the entrepreneurs may faceduring the transition period. Setting the limits of the business is also necessary for a successfulnew venture. It is notable that the new ventures often strive to retain the competitive positionwhen it comes to the competition with the larger organizations. The lack of proper resources,time, and sequential planning may affect the entire business due to which the entrepreneurs facethe considerable loss. Therefore, it is necessary for them to understand the effective strategies
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