ENTREPRENEURSHIP AND INNOVATION: Report on Saygin Yalcin's Venture

This report provides an overview of Saygin Yalcin's business venture, focusing on his innovative approach to car sales. It begins by introducing the concept of a business venture and its importance in addressing market demands. The report then discusses the various capital sources available to new ventures, including personal investment, venture capital, and government grants, along with different business structures like sole proprietorship. A PESTLE analysis of the German market is presented, evaluating the political, economic, social, technological, legal, and environmental factors influencing the venture. The report also identifies potential challenges and risks associated with launching the business in Germany, such as higher tax rates and strict legal frameworks. The conclusion highlights the role of entrepreneurs in solving market problems through innovative ideas, emphasizing Saygin Yalcin's solution for car sales and his choice of a sole proprietorship structure.

ENTREPRENEURSHIP AND INNOVATION
Entrepreneurship and Innovation
Name of the Student:
Name of the University:
Author’s Note:

Executive summary
This report highlights the business venture for Saygin
Yalcin, the German entrepreneur and businessperson.
Saygin Yalcin created a website that provides an
opportunity for people to sell their cars in just 30 minutes.

Introduction
As commented by Drucker (2014), the concept of business
venture highlights the start-up entity developed with the
intention of incurring financial profitability.
The majority of the business ventures are created by
considering the demand of the market. In other words, lack
of supply in the market facilitates business ventures
(Brenkert, 2017).

Discussion:
Capital sources for the new ventures and methods of obtaining the capital source
Funds availability: As commented by Grilli & Murtinu (2014),
it is important for the new business ventures to collect adequate
funds and resources for establishing and conducting the
business successfully.
Sources of new ventures: The different capital sources for the
new ventures are a personal investment, venture capital, angels,
business incubators and government grants and subsidies.

Cont..
The individual starting the new venture needs to use their
own cash or use existing assets (Bruton et al., 2015).
As mentioned by Bertoni, Colombo & Grilli (2013), the
concept of venture capital highlights the interest of the
venture capitalists for a business that is technology-driven

Cont..
According to Petkova, Rindova & Gupta (2013), angels are wealthy and
retired individuals that aim towards investing in smaller firms that are owned
by other individuals.
Business incubators are another type of capital sources of new business
venture that emphasizes on the high-tech sector and provide economic
support at every stage of developing the business (Mohammed & Obeleagu-
Nzelibe, 2014).

Types of business ventures
The different forms of business structures for the business ventures
include sole proprietorship, general partnership, limited partnership,
limited liability partnership, corporation and nonprofit corporation.
As commented by Macht & Weatherston (2014), the concept of sole
proprietorship highlights a single owner for the business. It is one of
the most common business structures for business ventures, as it is
simple to operate, provides greater flexibility and incurs less tax

Cont…
All the partners of the business contribute money, skills and labor for the
business (Morris, Shirokova & Shatalov, 2013).
The general partners have equal shares in terms of profit and loss of the
business whereas the limited partners have equal shares in terms of profit but
losses are restricted to their extent of investment. Additionally, limited
partners have restricted involvement in the business venture (Beamish, 2013).

PESTLE analysis of German market
The PESTLE analysis of German market is furnished below that helps in determining the
potential challenges, risks and difficulties for Saygin Yalcin for a business venture in the
German market.
Political: it is difficult for the entrepreneurs and business ventures, as they have to
consider the political aspects of both the European Union and the German market
(Pregger, Nttsch & Naegler, 2013).
Economic: Germany is one of the countries in the European Union that has one of the highest
economies. Till 2007, the German market has been recorded to have the highest economy but a
major declination has been noticed during the recession that hit during 2008 and 2010.

Cont..
 Social: The German market has a higher literacy rate that also makes it easier for new business
ventures, as they are able to understand and uptake the new business idea easily (Plieninger et al.,
2013).
 Technological: The German market spends almost 1.21% of the GDP for research and development
thereby, influencing entrepreneurs and new business ideas (Jentsch, Trost & Sterner, 2014).
 Legal: . In Germany, each of the companies is considered as separate legal entities and has distinctive
legal frameworks (Huang, Krysanova & Hattermann, 2015).
 Environmental: The government of Germany has undertaken steps for preventing emissions and
deforestations and has enforced that the industries take eco-friendly measures for conducting business.

Risks of the chosen business venture
 The entrepreneur has aimed to conduct the business venture in the German market.
In order to conduct the business venture in the German market, the macro
environment has been analyzed.
 Based on the macro environment of the German market, the business venture
proposed by Saygin Yalcin has potential challenges and difficulties.
 Another issue that Saygin Yalcin will encounter is the higher tax rate that the
country imposes. As the business venture is a new idea and is less recognized, it will
take time to get settled in the German market. But, Saygin Yalcin has to pay tax
appropriately and cannot compromise regarding it. In addition to, the strict legal
framework of the German market will impose a penalty if Saygin Yalcin fails to pay
the tax according to the business venture (Zhao, Hwang & Yu, 2013).

Cont..
Saygin Yalcin has to invest a considerable amount in the
business venture. This is because Saygin Yalcin has selected
sole proprietorship as the business venture. Thus, investing a
huge amount of funds for setting up the business might be
challenging for Saygin Yalcin (Ratten, 2016).