Study onEntrepreneurship Currency Consulting
Added on 2020-04-13
15 Pages3196 Words109 Views
Running Head: EntrepreneurshipEntrepreneurshipCurrency consulting
Entrepreneurship1ContentsIntroduction......................................................................................................................................1Entrepreneurial themes....................................................................................................................3Opportunity creation....................................................................................................................3Opportunity recognition...............................................................................................................4Business idea development..............................................................................................................5Business resources required.........................................................................................................5Marketing mix:.............................................................................................................................5Business model canvas.................................................................................................................6Value proposition.........................................................................................................................7Conclusion.......................................................................................................................................7References........................................................................................................................................9
Entrepreneurship2IntroductionEntrepreneurship is the process of starting a new business by any individual or a group of individuals1. This is an extremely crucial aspect for the growth and development of any economy. Efficient entrepreneurship gives way to finding loopholes in the existing market, creating an opportunity by fulfilling these loopholes and finally introducing solutions. Entrepreneurship is hence promoted by various governments by offering different aids and subsidies2.Mauritania’s trade industry is growing at a steady pace. The second quarter of 2017 recorded 160.15 billion MRO exports3 and 466.74 billion MRO imports4. Most of Mauritania’a trades takeplace with Euro being the currency of exchange. The country predominantly exports iron, oil, gold and copper5. Whereas the main imports include Fuel, machinery, foodstuff and constructionmaterials.My business idea revolves around opening a currency consulting firm. The idea behind launching this business is to guide importers and exporters regarding various risks associated 1Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B.,Entrepreneurship and small business, 2014.2Hatten, T.S., Small business management: Entrepreneurship and beyond, Nelson Education, 20153Trading economics, ‘Mauritania Imports’, https://tradingeconomics.com/mauritania/imports, 2017, (retrieved on 21 November 2017).4Trading economics, ‘Mauritania Exports’, https://tradingeconomics.com/mauritania/exports, 2017, (retrieved on 21 November 2017).5International trade center, ‘Mauritania’, http://www.intracen.org/country/mauritania/, 2017, (retrieved on 21 November, 2017).
Entrepreneurship3with the fluctuating currency of our country6. At present, the G7 currencies are the most important currencies guiding the currency markets across the globe. These G7 currencies involveUSD (United States Dollar, EUR (Euro), JPY (Japanese Yen), GBP (Great Britain Pound), SwissFranc, CAD (Canadian Dolar) and NZD (New Zealand Dollar). At present the the value of MRO against Euro is 417.64. The last one year has witnessed immense currency fluctuations with our currency touching a high of 369.64 against Euro and a low of 435.67 against Euro7. This frequent fluctuation in the currency directly impacts importers and exporters by affecting their profits in various trade transactions. Therefore they use various tools to hedge their currency against these risks.The currency consulting is a business of tracking our currency against the G7 currencies, forecasting the movements in the same and advising clients regarding how they can hedge their currency to avoid losses. The target customers of the firm would be exporters and importers who face a currency risk in their business transactions. The idea is predominantly unique because Mauritania has various currency brokers who assist exporters and importers in trading their currency and coverting it to foregin currency. The top brokers include Pearl capital markets, Forex Mauritania, Compare money transfer. These firms do not provide exclusive consultancy about what the future of the currency market looks like andhow they can protect their trade transactions from such currency risks. This where the we identified an opportunity for a currency consulting firm which will not only help businesses in trading their currency but also provide a daily guidance upon the forecasted future of the currency and various heding tools that can protect the clients from facing a currency loss.6Jereb, E., Cudanov, M. and Urh, M., Interest in Currency Trading Learning-Preferred Methods and Motivational Factors.Organizacija,49(1), p.3, 2016.7XE, ‘Mauritania’, http://www.xe.com/currencyconverter/convert/?Amount=1&From=EUR&To=MRO, 2017, (retrieved on 21 November, 2017).
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