Entrepreneurship: A Comprehensive Analysis of Business Concepts

This essay provides a detailed overview of key entrepreneurship concepts and processes. It begins by outlining the stages of the entrepreneurial process, including idea generation, concept development, resource acquisition, actualization, and harvesting, while also discussing the factors that contribute to the birth of a new enterprise. The essay explores various financing options available to entrepreneurs, such as bank loans, credit cards, crowdfunding, and microloans. It also discusses the criteria for an ideal venture capital candidate, emphasizing the importance of skills, capital efficiency, and a strong management team. Furthermore, the essay examines the pros and cons of patenting a product, including limiting competition versus the expenses and public disclosure. It identifies different types of business entities, such as C corporations, partnerships, sole proprietorships, S corporations, and limited liability companies, and their respective characteristics. The importance of marketing for entrepreneurs is highlighted, focusing on customer retention and brand awareness. Finally, the essay discusses the benefits and disadvantages of first-mover advantage, considering both cost reduction and the challenges of consumer persuasion.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the student
Name of the University
Author note

1ENTREPRENEURSHIP
Answer 1)
The stages in the model of the entrepreneurial process are idea generation, concept
development, find resources, actualizing idea and harvesting. The entrepreneurs generate the
idea along with research the market at the stage of idea discovery. At the stage of concept
development, the entrepreneur gets detailed information regarding the mission, market and
competition of product (Scarborough, 2016). At the third stage, the entrepreneur finds the
resources that can help in implementation of his idea. The actualizing of idea is carried out at
the next stage when the plan of the entrepreneur is turned into reality. Harvesting refers to the
liquidity event that helps in cashing out the ownership position within the company (Kirzner,
2015).
The factors that give birth to a new enterprise are the innovative business idea, right
talent, network and sales.
The solo entrepreneurs can be said to be less successful as compared to the team
player because they possess limited perspective, have little amount of moral support and have
a small network.
Answer 2)
A business can be financed with the help of bank loan, credit card, crowd funding,
attracting an investor, raising money from family and friends and by getting a microloan. The
banks possess earmarked additional funds that can help in the starting of a new business. A
credit card can be used for the funding of business and it can help in extending the account
payable period that can help in shoring up cash flow (Drucker, 2014). Crowd funding sites
can be taken recourse to that can help in raising money in relation to a creative project. One
can also take the help of family along with friends that can help in the financing of a

2ENTREPRENEURSHIP
business. An entrepreneur can also make use of a micro loan that can help in providing
finance in relation to a small business.
Answer 3)
An ideal candidate who wants to opt for venture capital has to meet certain criterias.
An ideal candidate should be skilled and expert in the respective field of his business venture.
Cpital efficiency should be there in the mind of the ideal candidate. First round funding can
enable a company in reaching meaningful milestone that can help in building tangible
business value in long run. The ideal candidate should be capable of making the product
address the growing new market. The product or that of the service should be built on the
basis of intellectual property that can help in providing competitive distinction that has
measurable benefits (Kuratko, 2016). The candidate should possess experienced
management team that can help in performing all kinds of tasks with the necessary skills.
Candidate should be able to use capital that has been allocated to him for meeting the needs
of the company. Candidate should be able to provide the business with competitive advantage
and there should be a strategic efficient business model that can help in the functioning of the
company.
Answer 4)
The pros of patenting a product are that it can help in limiting competition and
providing potential profit. The cons in relation to patenting a product are owing to the
expenses and that it necessitates public disclosure. The patenting of a product can help in
limiting the element of competition that can help the company in gaining more market share.
The exclusivity which accompanies the patented products can help in providing patent holder
with the opportunities that can help in increasing profits (Parker, 2018). Argument that goes
against the obtaining of a patent relates to monetary cost. The process of patenting can be

3ENTREPRENEURSHIP
complex and it will also need public disclosure. The intricacy in relation to innovation can be
exposed to other people who can expand or infringe on a idea. A patent can be said to have
limited life.
Answer 5)
The examples of business entities are C corporations, partnership, sole
proprietorships, S Corporations and limited liability companies. C Corporation can be said to
be a corporation within which the owners and the shareholders are taxed in a separate manner
from that of the entity. C Corporations can be said to be most prevalent among the
corporation and they are subjected to corporate income taxation (Kazanjian, Drazin & Glynn,
2017).Partnership is indicative of a business organization within which two or more than two
individuals pool the money, skills along with resources. The partnerships share the profit or
the loss according to the partnership agreement. Sole proprietorship is indicative of sole
trader which is run with the help of a natural person and within which there exist no legal
distinction in between owner and that of the business entity. The S Corporations pass the
corporate income, deduction along with credits through to the shareholder for the purpose of
federal tax (Storey, 2016).
Answer 6)
Marketing can be said to be critical for the entrepreneurs owing to the fact that
venture cannot be established without that of a customer market. It is important to take
recourse to marketing so that the customers can be retained. Entrepreneurs are responsible for
creating offer, take offer and tell market regarding the offer with the help of communication.
It is difficult to bring the new products within the market and hence the entrepreneurs should
be more resourceful pertaining to marketing (Cooper & Folta, 2017). There are many
entrepreneurs who depend on creativity instead of cash that can help it to achieve compelling

4ENTREPRENEURSHIP
image within the market. The entrepreneur can gain the acceptance of the market by the
building of brand awareness that depends on stage of venture. The marketing can help the
entrepreneur to differentiate the products of a company that can increase its value in front of
the customer.
Answer 7)
The benefits of first mover advantage is that it can help a company in reducing costs
in relation to production of a product. First mover can help in the establishing of absolute cost
advantage. The first mover can control strategic along with the scarce resources. The buyer-
switching cost is the third benefit that the first movers get as the establishing of the first
business can help in drawing more customers towards the business (Parker, 2018). The
disadvantage of the first mover is owing to the fact that the first mover can invest to a great
extent in persuading the consumers for trying of a new product. The later entrants can reap
the benefit from the buyers and they would not have to spend a large amount on educating the
customers. The later entrants can avoid the mistakes that has been made by first mover.

5ENTREPRENEURSHIP
References:
Cooper, A., & Folta, T. (2017). Entrepreneurship and high‐technology clusters. The
Blackwell handbook of entrepreneurship, 348-367.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Kazanjian, R. K., Drazin, R., & Glynn, M. A. (2017). Implementing strategies for corporate
entrepreneurship: A knowledge‐based perspective. Strategic entrepreneurship:
Creating a new mindset, 173-199.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.
Parker, S. C. (2018). The economics of entrepreneurship. Cambridge University Press.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management.
Pearson.
Storey, D. J. (2016). Entrepreneurship and new firm. Routledge.