stages and tools carried out when evaluating a new business idea

 stages and tools carried out when evaluating a new business idea

Entrepreneurship is a business concept that is defined as the process of launching, designing and running a new business. The individuals who are referred to as entrepreneurs are the ones who exploit and get new business ideas and implement them for growth. In the view of economic development, entrepreneurship has played a significant role in the economic growth of the countries in the world. Entrepreneurship has contributed to the creation of employment for the young generation, an increase in the income per capita, improved standard of living and improvement of government revenue (Morrison et al., 2000). These are factors of entrepreneurship that have contributed to the economic growth of the world. The report will, therefore, discuss the concept of entrepreneurship, intrapreneurship and enterprise. Also, the report will discuss the skills, behaviours and attributes that are needed for entrepreneurs to become successful. The paper will also mention the stages and tools carried out when evaluating a new business idea. Recommendations will also be provided that are needed by the entrepreneurs.

Define enterprise, entrepreneurship and intrapreneurship

Enterprise

Enterprise is defined as the willingness of an individual to consider taking new business projects. There are different forms of enterprises in business. One of the ways is a Sole Proprietorship enterprise, which means a company that is operated by an individual. This form of enterprise has unlimited liabilities for any damages that occur. The second form of enterprise in the United States is a partnership enterprise. This is a form of enterprise run by two or more people who share the ownership of the business. The other type is the corporation enterprise is a profit-based company that is created to protect individuals from liability in case of lawsuits. Limited Liability Company in the form of enterprise that provides legal protection and tax treatment. The final form of enterprise is professionals. These are the enterprises that are licensed by professional firms like engineers, doctors, accountants and lawyers. These professionals provide liability protection for the enterprise. An example of an enterprise is when a person takes the initiative to start a business.

Entrepreneurship

Entrepreneurship, as defined, is the actions that are taken by the individual (entrepreneur) who exploits new ideas and accepting risks to begin a business. Entrepreneurship is focused on individuals taking risks of the company and developing themselves. There are several characteristics of Entrepreneurship, as they will be discussed. One of the features is that Entrepreneurship has economic and dynamic activity. Entrepreneurship involves creating and operating an enterprise that creates value by utilizing resources. Entrepreneurship ensures that resources are minimized for the growth of the economy of the country of the United States. Entrepreneurship is regarded as a dynamic force since it involves continuous performance in the uncertainty of the business environment in the country (Morrison et al., 2000). The other feature of Entrepreneurship is that it is related to innovation since is requires the search of new ideas. In the urge to become an entrepreneur, one is profoundly propelled to evaluate the business models that exist in business and come up with new technological methods. Effectiveness is enhanced through innovations and coming up with effective and efficient systems that can be evolved and adapted for better results. Entrepreneurship has highly contributed to changes in the United States and has contributed to industrial development for the growth of the economy. The profit potential is the other characteristic, which is the returns of the compensation to entrepreneurs for the risks considered. Profit potential has highly motivated Entrepreneurship in the United States. The other feature is risk-bearing, which requires the individuals to consider taking risks for successful business growth in the community. The creation and implementation of new ideas is a risk-taking task that requires optimism of the entrepreneurs. New ideas are said to be tentative, and they may not lead to positive results, but for Entrepreneurship, these risks need to be taken. The individuals need to consider that even if these ideas bring negative effects, they should not hinder the entrepreneurial process. Patience is required during the conception of new ideas and the implementation of results.

Intrapreneurship

Intrapreneurship is the term that is used to refer to the systems in an organization that allows staff to act like entrepreneurs. These individuals are self-motivated, action-oriented and proactive in the processes of the company. The employees become innovative and take risks to ensure that business growth is promoted. Employees are given opportunities for entrepreneurial skills to research and recommend new ideas for the company to promote the growth of the company. Intrapreneurship uses creativity when given opportunities to offer goods and services that promote entrepreneurship. According to Pinchot, intrapreneurs are the leaders and employees of the organizations who become self-motivated for the growth of the big organizations. Intrapreneurship is made of three parts that include intrapreneur, the project that involves the idea and a mentor who provides the required resources (Morrison et al., 2000). Two types of intrapreneurs play a role in the process of intrapreneurship, and they include added value and spin-off. The added value intrapreneur is the one who is linked directly to the company that fosters innovation in for company growth. The spin-off intrapreneurs are also crucial in enhancing the growth of organizational projects. The benefits of intrapreneurship are that it allows the employees to be committed and motivated for their corporate work. Intrapreneurship provides an opportunity for growth of the business, and therefore a platform should be created.

Skills, attributes and behaviours of entrepreneurs

Skills

The ability to do something is a skill, and the entrepreneurs need these skills to ensure the growth of their enterprises. The expertise of an entrepreneur includes ambition, ability to learn, perseverance, courage and risk-taking, ability to listen and creativity. An entrepreneur should be ready to listen, and this includes listening to ideas from other entrepreneurs and employees. A successful entrepreneur should also be willing to learn to acquire the knowledge that is required for the growth of the company (Hsieh et al., 2017). Another skill that is needed by entrepreneurs is creativity, as entrepreneurship is based on innovations that bring new ideas to the enterprise. An entrepreneur should be able to persevere, especially when the expected results are not achieved. Entrepreneurship requires one to take risks, and once the goals are not fulfilled, an entrepreneur should not give up but proceed with the processes until the expected objectives are acquired.

Attributes

Attributes are the traits of an individual that help the entrepreneurs to become successful in the business. One of these attributes includes discipline, which requires the individuals and gets focused on making the businesses work through the elimination of hindrances to the business goals. The other attribute of an entrepreneur is a determination that allows the business to develop. Competitiveness is the additional attribute of an entrepreneur that enables the intrapreneurs to work on the achievement of goals (Maxwell & Armellini, 2019). For instance, the entrepreneur should ensure that their enterprises stand out among other businesses in the market. An entrepreneur is also expected to be confident in handling the issues of entrepreneurship for better growth of the society. Other attributes include self-starter, open-mindedness and creativity, which profoundly contribute to the growth of the enterprise.

Behaviours

Entrepreneurial behaviour is the one that favours innovations and encourages changes in business institutions. One of the behaviours of entrepreneurs in advance planning. Planning ensures mitigation of business risks and goals achievement. The other behaviour that contributes to the growth of an enterprise is that the individuals are positioning to serve. Positioning ensures that all the resources are put in place to provide services to the customers. The other significant behaviour is that entrepreneurs can set clear goals that can be achieved.

The goals should be realistic and should coincide with the working of the employees. The entrepreneurs are able to portray the behaviour of taking calculated risks (Autio et al., 2013). These individuals understand that entrepreneurship is about taking risks, and therefore individuals should consider taking risks that are well calculated. The other behaviour that can be considered for successful entrepreneurship is constant learning that allows them to acquire knowledge and skills. They attend to entrepreneurial workshops that are educative and promote the growth of society. Also, teamwork is a behaviour that entrepreneurs portray, and they ensure to hire team players who ensure that goals are achieved.

Tools and stages are necessary to evaluate a new business idea

Entrepreneurship requires the following steps to be considered when coming up with an enterprise. The first step is the idea generation that involves three stages that include germination, preparation, and incubation. In the germination stage, an idea is created, which is then put into the process of implementing. The other stage is called the preparation stage in which the entrepreneur sets up the institutions and hires personnel required for the business to grow. In this process, research is conducted on the markets to identify the place to consider for a business. The third stage is the incubation period of idea generation (Supriadi et al., 2017). The second stage is the feasibility study, which has two steps involved that include illumination and verification steps. This stage allows the entrepreneur to think of the idea in a realistic manner so that it can be implemented. In this stage, the entrepreneur considers the profit potential of the enterprise, and if the business brings profit to the organization, then it is considered. The company then gets to the verification stage is which the idea is implemented and explored for better results that benefit the entrepreneur and the community. The management and control stage is considered by an entrepreneur in which individual monitors the revenue gained. The level of income is the one that will be used to control the business and enhance growth.

Entrepreneurs should consider applying the following tools that can help in successful entrepreneurship. Pestel and Swot analysis models should be considered by these individuals to ensure that the plan is successful. The SWOT analysis helps the entrepreneurs to identify the weaknesses and strengths which they work on to achieve the goals. Also, the model helps to identify the new business opportunities and the competitors in the market that will help in coming up with a business that will remain competitive (Helms & Nixon, 2010). The opportunities identified are used by entrepreneurs to help in establishing the business in the opportunities identified. Pestel model is the other tool that can be utilized in the entrepreneurial process to determine the external factors (Yüksel, 2012). There are external factors that affect the marketing of products and services of the business, and the tool is used to identify these factors. For example, the marketing processes are profoundly affected by the external environment, like political factors and the availability of customers. The availability of customers is a factor that cannot be overlooked by entrepreneurs, and therefore these factors should be highly considered. An example of a political factor is the providence of licencing to the entrepreneurs, a process that takes a long time and affects entrepreneurs. These models are applied to come up with elements that can positively and negatively affect the growth of the business.

Summary and recommendations

In conclusion, the report has identified information about entrepreneurship. The issue of developing an enterprise and becoming an entrepreneur has been discussed. The paper identifies the problem of intrapreneurship that involves the leadership and employees of a company. The tools that are required by entrepreneurs, such as Pestel and Swot analysis models are used. These models play a role in ensuring the right decisions are made and that growth is promoted. The government should ensure that there are resources that provide a platform that givens the entrepreneurs a chance for growth. The government highly benefits from entrepreneurship through the increment of revenue and improved living standards. Based on this, the government should provide support to the individuals even through licensing these businesses. Individuals in the community should be innovative in coming up with activities. Innovation provides them with the opportunity of entrepreneurship growth, and it contributes to improved living standards. Also, entrepreneurs should be given chances for personal growth. The business leaders should provide a business environment that provides a platform for the employees to become intrapreneurs for growth to be promoted.