Entrepreneurship Report: Business Ventures, Skills, and Analysis

This report offers a comprehensive analysis of entrepreneurship, defining the role of an entrepreneur and the essential skills required for success. It delves into various business venture options, including starting a new business, buying an existing one, family businesses, and franchises, providing a critical evaluation of each. The report examines the benefits and drawbacks of different approaches, such as starting a business from scratch versus acquiring an existing one. It also explores the different types of entrepreneurs based on their personal behavior, such as innovative, imitative, Fabian, and drone entrepreneurs. The report also touches upon challenges like securing capital and the importance of adapting business models to market dynamics. This report underscores the complexity of entrepreneurship, emphasizing its role in economic growth and the importance of vision, risk management, and adaptability. The report concludes with a detailed reference list.

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Entrepreneurship
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Executive Summary
This report contains a comprehensive discussion about an entrepreneur and the skills that
an entrepreneur is likely to have. It is explained that why entrepreneurship is not just a person
who starts a business venture but is an idea that leads an organization with passion and skills. In
the report there are four options of beginning a business venture that has been critically analyzed
to understand the situation in which each of the options work best.

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Table of Contents
Executive Summary.........................................................................................................................1
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
Types of Entrepreneur on the basis of personal behavior:..............................................................3
Starting or buying an independent venture...................................................................6
The benefits and drawbacks of buying an existing business compared to starting one from
scratch..........................................................................................................................................7
Starting a Family Business..............................................................................................................9
Starting a new Franchise or buying an outlet in an existing Franchise.........................................10
Acquiring a venture.......................................................................................................................11
Conclusion.....................................................................................................................................12
Reference List:...............................................................................................................................13

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Introduction
A business organization is said to be one that provides a product or a service to the target
market in exchange for monetary value. The person who is responsible to set up, initiate and
organize the inception of such an endeavor is an Entrepreneur. The Entrepreneur is hoped to
have a definite skill set that will help the organization grow and expand in the future (Ucbasaran
et al. 2013). With every business there are certain amounts of risk associated and at the
beginning of the journey the risks are even more, hence an entrepreneur is expected to be able to
manage risks carefully and analyze the possibilities of the outcome form the beginning. New
business is always welcomed by the economy of a country as it ensures growth and more
monitory circulation in the economy An entrepreneur is expected to have a sharp vision of clarity
towards the path he or she want the business to run and also ways and means for it to grow in the
future. Entrepreneurship is broad and much more complex concept than just about beginning a
new business venture, it is a distinguishing attitude of an individual to lead, manage, organize,
plan and bear risk without being agitated or feared (Kearney and Hisrich 2014).
Types of Entrepreneur on the basis of personal behavior:
Innovating Entrepreneur- The individual who drives the company by developing new products or
service or by coming up with new proposal and methods of operation.
Imitative Entrepreneur- The entrepreneur who is ready to adapt to some of the innovation that
has been led by successful entrepreneur of the industry is imitative in nature.
Fabian Entrepreneur- The one who is a skeptic and is comfortable in the way the proceedings are
is a Fabian entrepreneur. He or she is basically a safe player.

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Drone Entrepreneur- The entrepreneur who is not adoptable and refuses to implement changes
and take risks.
The combination of an innovative and an imitative entrepreneur is the mantel that seems
appropriate for starting a new business. Innovative because to begin a new business and to set up
an enterprise it is required to have a set of goals that has to achieved in a span of time to get the
business started and for an individual to be able to do so he or she has to keep an open mind with
a welcoming attitude towards new and fresh ideas of the management operation and also with the
products and services that are going to be available for the consumers (Jenkins, Wiklund, and
Brundin 2014). At the inception of starting a business endeavor there is a little chance of earning
profits hence the risk is way more than the gain. To combat with the risks associated with the
business there has to be several methods that need to be implemented by the organization. New
methods sometimes work and sometimes they fail at the beginning it is a bit of a risk to
implement new and improved methods as if it fails it might cause harm but the risk is also
associated with the positive outlook of the failure. Failure in terms of new methods provides with
an insight about the industry and the market of operation. Risks and failure is a part of a business
endeavor and should always be view with a positive mindset. One of the major issues that start
ups face is that of the capital (Drucker 2014). To engage working capital and to get more and
more monetary support following in the business there has to be creative ideas to pitch to the
investors. This gives a perception to the investor that the entrepreneur has the research and the
home work done, which in turn gives them the idea about the stability of the person and a faith in
the value that they are going to be investing in the business (Schaper et al. 2014).
Imitative behaviors can also be helpful for a new entrepreneur who is starting a business.
A new entrepreneur has to start somewhere and inspirations and motivation can be derived for

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the industry and firm’s who are already excelling in the field of business. It is a good place to
begin the operations form and then move on to implementing new and innovative policies and
structure to the business. While adapting to some of the policies the person should keep in mind
to module it according to the functionality of his or her own business. As an individual no
business enterprise is hundred percent alike hence the policies or the methods of operation has to
be customized as per the operation of the business (Baum, Frese and Baron 2014). While
forming the business model or creating a marketing mix the entrepreneur should keep in mind
the short term goals backed up by the long term aim of the business and then find out the
possible adaptable policies of the companies operating in the same industry and implement them
to start off the business. For example: Google is an information technology company that is
widely known for their work culture and their ease of the resources to have a very casual and
colorful environment. According to the management this provides the staff to have an open mind
and allows the staff to be more creative in the field and be more productive in their work. For a
technical entrepreneur it is important and very crucial to have a developed skill in technical
production. Production is one of the most important departments in the technical sector hence he
or she has to put the prime focus in the production department from the very beginning. Most of
the entrepreneur who wants to start a business in the technical field has a certain amount of
experience in that industry and it is a good idea to implement the ideas for the individual to apply
the skills and craftsmanship that he had developed in the past experience. This is crucial as it is
going o help him or her develop and improve the quality of the product or services the company
has to offer to the customers (Bae et al. 2014).

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Starting or buying an independent venture
The skates of starting a business form the scratch is very high, there is a lot of capital
investment, a lot of leg work involved in the whole process and if the start up is on the shoulder
of a single person then it is very important for the person to realize that he or she should have a
certain skill set like sense of responsibility, leadership skills, management skills, knowledge of
the production process and many more. Building a new idea and developing the company from
the ground up and creating an entity form the first building block might seem like an exciting
and adventurous task but it has a lot of factors of success involved. Careful steps are to be taken
initially and the inception point has to be started off with a well thought out plan (Ratten 2016).
Some of the challenges the person is going to face while starting a new business are
construction of a solid customer base by making market segmentation in term of potential
customers of the industry, promoting the new business, hiring staff and employees and start the
cash flow within the organization (Carland, Carland and Stewart 2015).
Start ups are a new and trending word in the business world, which essentially means
starting a business enterprise. Gathering venture capital is the most important and stark issue
faced by a startup. Basically in order to start a business lump sum amount of money has to be
invested for various purposes depending on the nature of the business, the scale of the business
and the industry it wants to work in. the startup trend has given the space for new and innovative
methods and products space to grow in the market and there are several successful start up
examples in the world that can be look up to for inspiration (Chemmanur and Fulghieri 2013).
Buying an independent business on the other hand is different form a start up concept it
means starting a new venture but not setting it up. It means buying an enterprise that is already
set up by someone else. It involves a transfer in the ownership of the business that is already

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running. In this case much like a start up the capital is the main challenge and the propose of the
transaction. There has to be a concrete idea about the enterprise that is being bought by the
entrepreneur, which involves thorough research about the industry in which the business
operates. It also requires business and background information about the company. Every legal
aspect would be well versed by the entrepreneur who is buying the company and also by the one
who is selling is. As so much of research and background search is going on prior to the
conception of the endeavor the risks associated with the transaction can be anticipated and can
also be minimized with policies and other tools as compared to starting a fresh business. To
begin the research, if an entrepreneur wants to buy another business he or she should be looking
into the industry that he or she is familiar with as it gives them an upper hand in understanding
the operations of the business. Some of the other points to keep in mind while selecting an
organization to buy is the size of business you are looking for, in terms of employees, number of
locations and sales. Networking in the industry plays a key role in the buying and selling of
business as the contacts will give the person who is interested in buying the business a true
picture of the organization (Cai, Hughes and Yin 2014).
The benefits and drawbacks of buying an existing business compared to starting one from
scratch.
As an entrepreneur depending on the skills and talent of the person he or she should opt
for either buying a business or setting up an organisation from the scratch. Both these options
include their own set of challenges and privileges.
Benefit of buying a business compared to starting it form the scratch

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Buying a business brings a lot of add-ons with it. As the organisation is already running
and making cash flows the entrepreneur does not have to work on starting the day to day
operations of the business like a start up.
Not only the cash flow but the existing company will also have the basics choked out like
the business model, marketing mix and the target market segmentation. Apart from that the
company will also have an established customer back up. All these aspects can be redone but the
preliminary base has already been created which makes it easy for the entrepreneur to start off.
There will also not be the issue with hiring of the staff, yes if the person feels that more people
are required he can take more people but there will already be a group of people who are already
working for the organization. Along with these facilities the entrepreneur will also receive an
already successful and running business policy and formula which he or she can later change and
make amendments but then it is a good place to start. Buying a business is like buying a cake
form the bakery it is already made for consumption one just has to carefully examine the perfect
cake for that will meet the requirements while baking a cake requires all the elements to be put
together and starting it from the beginning. The basic plan and the policies of the organization is
already in place and hence it has a solid foundation to begin with. It gives a lot of leverage to the
entrepreneur in terms of risk taking and risk management as the organization is already operating
and will have a financial past which will help the entrepreneur anticipate the future better and to
work towards betterment of the situation. It also forms a better position for the entrepreneur to
pitch in front of the investors.
Drawback of buying a business compared to starting it form the scratch

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All the above claims of a buying a business is true regarded the condition of the business
that is bought is on track. If the company that is being bought is running at a loss and is the
reason why it is being sold then a lot of renovation has to be done in order to set the track it will
almost be like starting from the scratch (Weller 2014). Change of the management of an
organization is a big change for the employees being able to cope up with the newly formed
management and the changes of the ideology and planning of the operation of a business which
may give rise to internal conflict that in turn is bad for the organization to work on a daily basis.
The biggest and the most obvious drawback of buying an operating business is that the capital
invested in buying the business plus legal operation is a huge sum of money. Again if the
company has a bad reputation among the business community then it will b every difficult for the
new owner to change that image and bring about new and creative vision and outlook about the
company (Grewal et al. 2015).
Starting a Family Business
Family is the place where an individual seeks comfort and companionship mixing family
with business may be a good idea but then it can also turn out to be disastrous (Benavides-
Velasco, Quintana-García and Guzmán-Parra 2013). If only the equation among the family
members are strong and the bond is steady then only one can venture into a family business, it
can prove to be a success in no time because of the support and trust that people in the business
share among each other (De Massis and Kotlar 2014). One key element of doing well in starting
a family business is recruiting people from outside the family to get fresh new ideas and an
outside insight on the company’s operation. Installing and implementing core values in the
organization which will promote a sense of family among the employees and the staffs as well
(Neubauer and Lank 2016).

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Starting a corporate business
A corporation is separate entity form that of the owner and hence it gives the founder of
the company a benefit and leverage over sole proprietorship. The common norm is to start a
business and when the business is running well and is generating enough cash flow to back up
the operation, and then the company can go for the incorporation process. There are several legal
procedures that have to be followed while incorporating a business in to a corporation (Aspara et
al. 2013). Some of the advantages that a person will enjoy with starting a corporate business are
that all the liabilities like the bad debt, raising capital, taxation and many more are a divided
responsibility among the person and the corporation. While incorporation there is some points
that has to be kept in mind like the name and address of the company is very important in this
case because it has to be legally registered. The type of corporation also has to be selected, the
directors of the company has to be determined along with the type of shares he or she wants to
deal with (Ceccagnoli, Higgins and Kang 2017).
Starting a new Franchise or buying an outlet in an existing Franchise
There are a lot of companies who have their operations all over the state or all over the
nation. For example: Mac Donald’s franchise is all over the world. A set up business, which is
generating cash flow and is gathering profit, allows a third person to continue the business in
some other location and share the profit as per the terms and agreement that has been pre
determined (Economics 2015). Even in buying a franchise research is important back ground
check of the company and it is always a good idea to buy franchise of a company whose industry
the buyer is familiar with. While starting a franchise is like beginning any other business because

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the entrepreneur has to follow all the procedures of a start up starting form venture capital to
hiring people. After the company has generated cash flow enough to make decisions of starting a
franchise or not entirely depends on the management of the business, looking in to the prospect
of the business and the long term goal of the business (Lee et al. 2016).
Acquiring a venture
As an entrepreneur of the operating business there are some major decisions he or she has
to take for the future and the expansion prospect of the business. The business has to run with
efficiency and has to generate enough cash flow to persist the operation of the company on a
regular basis. These are some of the short term goals of a company. When these are attained the
company looks forward to move towards the larger aim of the company which can be expansion,
growth and diversification of the business. In order to do so the entrepreneur might take a
decision of buying or acquiring a venture which he or she might feel will help in the growth and
development of the company and also help the company gather more and more cash flow.
There is a lot of market research that goes with acquisition. There are several questions
that an entrepreneur has to ask himself while taking a decision for acquisition of a venture. The
first and foremost concern of the acquisition purpose is that why is the other business willing to
sell, what was wrong that couldn’t be fixed with in an institution and hence it is being sold. The
buyer should carefully observe the internal environment of the business (Sharma and Raat 2016).

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Conclusion
An entrepreneur is not just an individual who is starting a business venture; it is an idea
of a person with certain skill set and high spirit of motivation. To be a successful entrepreneur, it
is important to understand that one must be a people’s person. Business has to deal a lot with
human beings in the process and the one must be aware of the certain basic ethical principles and
values as well.

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Reference List:
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business research. Small business economics, 40(1), pp.41-57.
Cai, L., Hughes, M. and Yin, M., 2014. The relationship between resource acquisition methods
and firm performance in Chinese new ventures: the intermediate effect of learning
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Carland, J.C., Carland, J.W. and Stewart, W.H., 2015. Seeing what's not there: The enigma of
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Chemmanur, T.J. and Fulghieri, P., 2013. Entrepreneurial finance and innovation: An
introduction and agenda for future research. The Review of Financial Studies, 27(1), pp.1-19.
De Massis, A. and Kotlar, J., 2014. The case study method in family business research:
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