Entre Exams

Chapter 1

Process perceptive

The process perspective of entrepreneurship is divided into 5 phases that will be explained below, namely Recognition of an opportunity, Deciding to proceed and assembling resources, Launching the new venture, Building success and managing growth and Harvesting an rewards

Recognition of an opportunity

At this stage, entrepreneurs have to recognise opportunities. An opportunity has to fulfil 2 criteria. Firstly, an opportunity has the potential of creating something new, be it new products or services, targeting new markets and new ways to organize technology, etc. An opportunity can come about due to political, economic, social and technology and demographic change in population such as age, gender, race, disabilities and locations. Secondly, opportunities must have the potential to generate profits without being constrained by legal issues. If these 2 criteria are being met, it would be an valuable opportunity for the entrepreneurs.

Deciding to proceed and assembling resources

This stage requires entrepreneurs to make a decision to proceed. Once decision is made, he/she would than gather a wide range of resources which include basic information such as about markets, competitors, environmental and legal issues, human resource such as partners and employees needed and financial resources. Gathering all these are important because without preparations even with a good idea, the idea will fail. At this stage, entrepreneurs would also prepare a business plan especially if they need financial backing.

Launching the new venture

Once assembled, new venture can be launched. This would include alot of decision such as choosing the legal form of the company, eg. pte, sole proprietor, partnership. After this is done, the entrepreneurs can start to manufacture the products or services and create role for the employees.

Building success and managing growth

In order to help the growth and profit, there are 2 key factors to look into....