Critically evaluate business venturing process that brought the creation and growth of a successful entrepreneurial venture.
CHAPTER ONE: INTRODUCTION
This paper sets out to critically evaluate business venturing process that brought the creation and growth of a successful entrepreneurial venture. In constructing our case study on this topic we will be addressing the micro-level dimensions (Individual entrepreneur (s), biographies, key drivers, and forms of 'capitals'), meso-level dimensions (Activities, relationships and strategies involved in different phases of the business venturing process) and macro-level dimensions (Contextual backdrop, including national and international setting, industry and culture.) The Entrepreneurial Venture (Sahlmann/Stevenson/Roberts/Bhidé 2000,PG 15), i.e. the concept of entrepreneurship not only being limited to new ventures and start-ups, but being further understood as the concentration of opportunity, growth and value creation regardless of company size, age or kind. Our discussion will also focus on opportunities around, economic growth and create value for the concept of organizational processes. As the opportunity is exploited, these organizations focus on the future development opportunities and the value created by the two processes is so important for the establishment and development of social wealth and entrepreneurs and more systematic dissemination of knowledge of individuals successful in this regard need to re-allocate some of initial and traditional efforts have been taken.
CHAPTER TWO: LITREATURE REVIEW
Entrepreneurship is the fundamental driving force of economic development. This is also a clear space not a balanced process, and therefore it is not a balanced regional and national economic development an important reason. Not surprisingly, entrepreneurship is a key element of evolutionary economics (Schumpeter1934; Witt 1998; Grebel et al. 2003; Metcalfe 2004; Grebel 2007) and has been recognized as an important element in explaining economic development (Aces and c). This means that, in the business to explain regional differences have also become an important issue. But also because there are significant differences within and between countries in their business rates and determinants of these differences are sustained over time, (Bosmaand Schutjens 2008), as reflected in the path of industrial structure and cross-cultural institutions in different regions and countries a wide range of dependence, but the a relatively inert over time. (Brenner and Fornahl 2008). The introduction of evolutionary economic geography, entrepreneurship means that the traditional focus on the enterprise focus of complementary and personal. Self-employment (s) who is personal, rather than the employee's work, runs a small business, and bear all the risks and given a commercial speculation, ideas, for better or for sale of services in return. Individual entrepreneurs are often seen as a business leader and new ideas and business process innovation. Entrepreneurs play a key role in any economy. They have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable (wall street journal report on entrepreneurs 2006, p, and 23). The reward for the risks taken is the potential economic profits the entrepreneur could earn. This type of entrepreneurs normally is people who have gained experience from working with another firm for a long time. They are normally aged from 45 and above. There's this prevailing notion that they're more risk-tolerant, which is not actually true. What they are is extremely optimistic about their chances of success. This goes for the individuals as well as for the social entrepreneurial teams and networks. Most of them have very high confidence that they believe they will be successful; they tend to ignore evidence to the contrary because they believe so strongly that they will be successful. The failure of individual enterprises is not currently a lot of stories, because this area as a whole, concentrated almost entirely on the success stories, and perhaps this is its way of expansion at the beginning of any field. Focus on the entrepreneurial individual dates back to the early 1980s with Bill Drayton and Ashoka but it turns out that optimism and confidence are what drive the perseverance that produces this kind of constant focus on driving forward with change. (David Bornstein, The (1996) p28), it's not that these people have a gene that can be identified as social or individual entrepreneurship. That is they can actually see a very optimistic view of the world. In addition, they may take no more risk than others, but they tend to persist through their optimism continues, when they were informed that they are going to fail the actual investment or even more energy, they are against the insurgency sources indicated that they are somewhat wrong. Such optimistic self-confidence can be transferred to and entrepreneurs of all types need to understand the attention. They need to fine-tune and listen to what the "market" is said to them what they think. They must also know that they do see a very optimistic point of view of the world, so from time to time need to check themselves challenge their assumptions about their ideas.
Entrepreneurs acquire their financial requirements from various sources. The most important of these sources are families, banks, governments, financial markets and business partners. Out of these traditional financial sources, venture capital firms which is very common in the USA extensively supply financial sources to the entrepreneurs but when it comes to capital it does not mean only money but also factors that make an entrepreneur succeed. The known forms of capital in entrepreneurship are as follows: social capital, institutional capital, relational capital, moral capital and spiritual capital.
Social capital generally refers to the crowd the road contributing to the welfare of the social welfare housing. However, without sufficient attention given to the latter half - "capital." The word must be properly understood, any investigation of the role of the mainstream business - usually a description of capitalism - in reducing global poverty. A good way to extract the "capital" means a comparison between the "money" is often confused with it. In essence, capital is not money, but the technical know-how, while the money is static, knowledge is dynamic, the production and with social and spiritual aspects, as it is to meet human needs and desires in mind. (Money magazine what is capital? 2008 p, 9) The money can only become the capital, if it is, where exposure risks, rewards initiative and creativity of the social context. That is why the money is never a lasting solution to poverty, such as Saudi Arabia, the situation reflects that there may be enough money, but do not have sufficient funds. Capital to create wealth with the forces of change is almost gone. Powers conferred on it by human beings. Understanding of the capital money leads to a result of inertia and the market point of view of materialism, which inevitably lead to an inert substance solution.
It should also be noted that these three factors - search for opportunities, alertness, and prior knowledge - may be interrelated. For instance, it appear that when alertness is very high, active searches for opportunities may not be necessary; entrepreneurs are so sensitive to them that they do not have to engage in formal, systematic search processes. Similarly, high levels of prior knowledge may reduce the necessity for active searches. A cognitive perspective can readily explain these relationships. Within this perspective, high alertness implies well-developed cognitive frameworks useful for perceiving meaningful patterns in diverse events or trends. To the extent these frameworks exist, an active search for opportunities may not be necessary because such frameworks permit highly efficient interpretation and processing of new information. Similarly, a large store of prior knowledge may contribute to the formation of broad and richly-connected cognitive frameworks, again, rendering participation in formal search activities less crucial. In short, yet another advantage of a pattern recognition perspective is that it can help explain interrelationships between searches, alertness, and prior knowledge, thus clarifying the effects of these three important factors. Two additional points are also worth noting. First, in addition to search, alertness, and prior knowledge, another factor - the breadth of entrepreneurs' social networks - has recently received growing attention, and also appears to play an important role in opportunity identification. Specifically, the findings by (Hills, Lumpkin, and Singh, 1997) indicate that the broader entrepreneurs' social networks (the more people they know and with whom they have relationships), the more opportunities they identify. Social networks are an important source of information for entrepreneurs, information that may contribute to the richness of their store of knowledge and the development of their cognitive frameworks. Further, social networks may be especially helpful to entrepreneurs in terms of honing or refining these frameworks (prototypes). For instance, by discussing opportunities they have identified with family, friends, and others, entrepreneurs may form more accurate and useful prototypes for identifying opportunities - cognitive frameworks helpful in determining whether ideas for new products or services are practical and potentially valuable rather than merely interesting or novel. In short, the benefits of an extended social network, too, can be understood within a pattern-identification framework. However, not all patterns connecting diverse events, changes, or trends perceived by entrepreneurs serve as the basis for founding new ventures. Such patterns lead to new ventures only when they suggest new products or services that Seem on initial examination, to be feasible. If emergent patterns do not point to products or services that appear to be feasible, they will often be discarded by current or potential entrepreneurs. In sum, the factors that have been found to play important roles in opportunity recognition by entrepreneurs are searches, alertness, and prior knowledge. These factors and others can all be understood within the context of pattern identification. Integrating them in this manner provides increased insight into the basic nature of opportunity identification. Moreover, understanding the effects of these variables within a single framework suggests practical steps for enhancing entrepreneurs' ability to identify opportunities. Since assisting entrepreneurs in every way possible is a key goal of entrepreneurship, this appears to be a very beneficial outcome.
When a an entrepreneur or a company, of whatever size, began to think about the possibility of a specific national action, it usually will look for some institutional features, such as private property, law, judicial independence, effective and fair rules in the police, press freedom and limited, and the normal functioning state. Without them, enterprises lack assurance that they need their property rights are upheld, and contract fulfillment could be enforced, government could assume responsibility, they will not be through the free operation of the poor or over-regulation, so that impede opportunities for corruption.
Relational capital previously considered as a trivial issue, the relationship would be regarded as a successful entrepreneur is an important part, because of their morale, motivation and productivity impact. Although the economic value of their contempt for precise measurement, staff retention and career development of the relationship between the health of a company at least in sight. Tomorrow's research company, a British company would like to thank that revealed that many companies are regarded as the relationship between measures of performance projections. The report concluded, however, "more work is needed to find robust measures for the full range of key relationships" (Tomorrow's Company, 1995: 11)
The recent banking crisis confirms the suspicion of many that the market is unable to act as a moral agent because it is inevitably indifferent or hostile to virtue. Newspaper columnists, political pundits and other opinion formers have, in fact, gone further, vociferously claiming that the market appeals to some of the lowest human motives - greed, the quest for profit, and the service of self - all of which dissolve the moral fabric of society. It is, therefore, the duty of the state to impose ethical behaviors on entrepreneurs, by means of regulation
Capitalism is often considered good for the bottom line but spiritually empty. Capitalism is not, however, solely about things but also about the human spirit. That is why it is appropriate to speak about spiritual capital, which is primarily about meaning and purpose. Therefore, it is consistent and dependent on a broad definition of wealth includes not only physical and mental, but rich in spirit - a kind of wealth, encourage people to develop their full potential and create the concept of it, because it is about the ultimate concern. There are many factors of capitalism has emerged in recent years, often in London, Seattle, Davos and Genoa, a variety of strong reactions, as well as fuel hatred, anti-capitalist, anti-Western terrorism. However, one important factor is the wealth of the West is often easier to convey the understanding of the narrow and high. In response to this phenomenon intensity of focus in today's global economy, the importance of the spirit of the capital.
(Wall street journal report on spiritual capital 2006, p, 63
A Meso-level dimension is where Activities, relationships and strategies are involved in different phases of the business venturing process. in the beginning entrepreneurs may draw up a plan for his business, do the necessary background checks on the industry he is about to enter, find strategies to compete with existing firms at different phases of his business. For example whiles a start-up is needed at the start of the business, a partner or an investor might be needed when the business is growing to be able to cope with competitions on the market.
Macro-level dimensions are Contextual backdrop, including national and international setting, industry and culture. One of the most important things considered by entrepreneurs before venturing into a business is industry culture. Industry culture means the factors that make the running of an industry different from others. for example running an automobile firm is totally different from running a restaurant since they are both have different target markets and different factors contribute their survival. International setting is also very important to entrepreneurs because certain businesses do better in some countries than others depending on the market size and infrastructure available.
CHAPTER THREE: CASE AND ANALYSIS
This is a case of an entrepreneur from china who is trying to set up a mobile phone business in the Accra, Ghana. Africa. He choose Ghana because it has a friendly business atmosphere which very important for entrepreneurs. its also the most stale country politically in Africa which makes it a good place to do business looking at the mobile phone retail business in Ghana even though its a profitable and a fast growing industry there is not too much competition since the firms in the industry are very few which make demand higher than supply meaning risk is limited. Knowing that the process of the process of registering and getting the necessary market information will be difficult since he lives in china he sort to acquire the services of a business consultant based in Ghana to help him get accurate information on the Ghanaian entrepreneurial venture environment.
Counting on his experience and rich background in information technology since he has worked with a leading mobile phone company which exports to Africa he is very confident he will be able to manage his business. the key driver behind his business adventure in that country is the announcement that MTN one of the worlds leading telecommunication companies has opened an office in Ghana and are looking at about six million people needing their service which in turn will open a very big market for mobile phone retailers.(Ghana telecommunication industry report,2008,p,52) Also he is looking at striking a deal with MTN in the future to provide the company with cell phone from china which is very cheap and will give and MTN a pricing advantage in the market. Forms of capital as we said in our literature are not only about the monetary aspect hence an individual entrepreneur entering the field will have to take measures to address the social capital, institutional capital, relational capital, moral capital and spiritual capital which are the main form of capital apart from the monetary aspect. In his case this entrepreneur traveled to Ghana personally to have a feeling of the king of social capital he was about to taste for a long time if he is to do business there. He went on a lot of familiarization tours with the consultant company he hired to help him get the information's he needs. Satisfied of what he saw he moved on to check how long it will take him to register his firm, what king of paper needs to be done since he is a foreigner, whether he needs a local partner and how much the whole process and renting an office will cost him. he found out that Ghana unlike other African countries have a business friendly atmosphere since most of the process are very simple and also choosing a local partner will be his choice to make since its not by force
After the micro level stage which saw this entrepreneur establishes his firm successfully he is now faced with seeing to the growth of his firm. Unlike other ordinary business men he quickly put his experience at work by first establishing good relationship with banks that support export and import industry so that he will be able to acquire loans from these banks to expand his firm since he is into export business. He also drew up various activities which saw his firm do a lot of charitable works to make a good name for his firm in the consumer's eye which will in turn make them trust the firm and patronize their good.
Some of the strategies he also put in place to make his firm a household name in the industry are one, he noticed that Ghanaians love soccer therefore partnering with the football authorities will help his firm become a household name in the country which will boost sales of his products so he offered the national football team and two of the biggest clubs in the Ghanaian football league sponsorship which saw the teams jerseys branded with the firm name.
In an interview with the sports minister on national television after the national team qualified for their maiden world cup appearance he confirmed that the firm had helped them both financially and materially and so they will also reward the firm with branding their jerseys for the world cup with the firm's name. Since then this firm has become the biggest importer of mobile phone in Ghana with braches in every city all over the country. They have even undertaken another project to train the youth in the repair of this phones which will provide employment to the people in the society and cement the place of he firm as the best in the country. The CEO of the firm in an interview a business magazine attributed the firm's success to the rich experience of the directors and the manner in which the micro-meso-macro level aspect of the venturing process was handled.
CHAPTER FOUR: CONCLUSION
Considering the case above l conclude that in entrepreneurial venture the manner in which the entrepreneur handles the micro-meso-macro factors in the venturing process is very important since it determined the success of the business. Therefore all entrepreneurs should not leave any factors in this process since it collectiveness is the key to the entrepreneur growth and success as the firm in the case study did.
- Sahlmann/Stevenson/Roberts/Bhidé (2000, PG 15)
- Schumpeter (1934); Witt (1998 ;) Grebel et al. (2003); Metcalfe (2004); Grebel (2007)
- Bosmaand Schutjens (2008)
- (Wall street journal report on spiritual capital 2006, p, 63)
- Brenner and Fornahl (2008)
- Hills, Lumpkin, and Singh, (1997)
- Tomorrow's Company, (1995: 11)
- (Ghana telecommunication industry report, 2008, p, 52
- (Wall street journal report on entrepreneurs 2006, p, and 23)
- Money magazine what is capital? 2008 p, 9)
(Sahlmann/Stevenson/Roberts/Bhidé 2000,PG 15), i.e. the concept of entrepreneurship not only being limited to new ventures and start-ups, but being further understood as the concentration of opportunity, growth and value creation regardless of company size, age or kind.
(Schumpeter1934; Witt 1998; Grebel et al. 2003; Metcalfe 2004; Grebel 2007)Not surprisingly, entrepreneurship is a key element of evolutionary economics and has been recognized as an important element in explaining economic development
(Tomorrow's Company, 1995: 11) many companies regard relational measures as predictive of business performance. The report concluded, however, that "more work is needed to find robust measures for the full range of key relationships"
(Hills, Lumpkin, and Singh, 1997) indicate that the broader entrepreneurs' social networks (the more people they know and with whom they have relationships), the more opportunities they identify.
(Bosmaand Schutjens 2008) Even more so because there are pronounced differences within and between nations in rates of entrepreneurship and in their determinants
(Brenner and Fornahl 2008) these differences tend to be persistent over time, reflecting path dependence in industry structure
(Wall street journal report on entrepreneurs 2006, p, and 23) Entrepreneurs play a key role in any economy. They have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable
(Ghana telecommunication industry report,2008,p,52) announcement that MTN one of the worlds leading telecommunication companies has opened an office in Ghana and are looking at about six million people needing their service which in turn will open a very big market for mobile phone retailers.
(Wall street journal report on spiritual capital 2006, p, 63)There are all sorts of factors that contribute to the vehement reactions to capitalism that have been seen in recent years on the streets of London, Seattle, Davos and Genoa, and to the hatred that fuels anti-capitalist and anti-Western terrorism. But one significant factor is a narrow and prohibitive understanding of wealth that westerners are often apt to convey. The strength of the reaction against this phenomenon highlights the importance of spiritual capital in today's global economy.
David Bornstein, The (1996) p, 28), focus on the entrepreneurial individual dates back to the early 1980s with Bill Drayton and Ashoka but it turns out that optimism and confidence are what drive the perseverance that produces this kind of constant focus on driving forward with change.
Money magazine what is capital? 2008 p, 9) fundamentally, capital is not about money but about know-how. Whereas money is static, know-how is dynamic, productive and has social and spiritual dimensions because it is geared towards meeting human needs and desires.