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Business Jargons

A Business Encyclopedia

Entrepreneurial Process

Definition: The Entrepreneur is a change agent that acts as an industrialist and undertakes the risk associated with forming the business for commercial use. An entrepreneur has an unusual foresight to identify the potential demand for the goods and services.

The entrepreneurship is a continuous process that needs to be followed by an entrepreneur to plan and launch the new ventures more efficiently.

Entrepreneurial Process

 

Entrepreneurial process

  1. Discovery: An entrepreneurial process begins with the idea generation, wherein the entrepreneur identifies and evaluates the business opportunities. The identification and the evaluation of opportunities is a difficult task; an entrepreneur seeks inputs from all the persons including employees, consumers, channel partners, technical people, etc. to reach to an optimum business opportunity. Once the opportunity has been decided upon, the next step is to evaluate it.

    An entrepreneur can evaluate the efficiency of an opportunity by continuously asking certain questions to himself, such as, whether the opportunity is worth investing in, is it sufficiently attractive, are the proposed solutions feasible, is there any competitive advantage, what are the risk associated with it. Above all, an entrepreneur must analyze his personal skills and hobbies, whether these coincides with the entrepreneurial goals or not.

  1. Developing a Business Plan: Once the opportunity is identified, an entrepreneur needs to create a comprehensive business plan. A business plan is critical to the success of any new venture since it acts as a benchmark and the evaluation criteria to see if the organization is moving towards its set goals.

    An entrepreneur must dedicate his sufficient time towards its creation, the major components of a business plan are mission and vision statement, goals and objectives, capital requirement, a description of products and services, etc.

  2. Resourcing: The third step in the entrepreneurial process is resourcing, wherein the entrepreneur identifies the sources from where the finance and the human resource can be arranged. Here, the entrepreneur finds the investors for its new venture and the personnel to carry out the business activities.
  3. Managing the company: Once the funds are raised and the employees are hired, the next step is to initiate the business operations to achieve the set goals. First of all, an entrepreneur must decide the management structure or the hierarchy that is required to solve the operational problems when they arise.
  4. Harvesting: The final step in the entrepreneurial process is harvesting wherein, an entrepreneur decides on the future prospects of the business, i.e. its growth and development. Here, the actual growth is compared against the planned growth and then the decision regarding the stability or the expansion of business operations is undertaken accordingly, by an entrepreneur.

The entrepreneurial process is to be followed, again and again, whenever any new venture is taken up by an entrepreneur, therefore, its an ever ending process.

Related terms:

  1. Intrapreneurship
  2. Business Process Reengineering
  3. Steps involved in Business Process Reengineering
  4. Capital Budgeting Process
  5. Training Process

Reader Interactions

Comments

  1. Jane Owusu - Asiamah says

    February 6, 2018 at 4:54 am

    who developed this entrepreneurial process and what is the theoretical framework behind it

    Reply
  2. Mr Likius Shilongo says

    February 20, 2018 at 1:04 pm

    The process is well explained

    Reply
    • Vijay CS says

      January 26, 2022 at 11:10 pm

      Yes

      Reply
  3. Percy Pule Chisokwa says

    February 21, 2018 at 12:37 am

    nice insights good for study

    Reply
  4. Aina Mardhiah says

    June 26, 2018 at 7:53 pm

    Thanks, this really helps for my studies!

    Reply
  5. Dan King says

    July 4, 2018 at 2:35 am

    Thanks for sharing this with very clear steps. It will certainly help when starting my business.

    Reply
  6. mirwais samim says

    February 10, 2019 at 6:24 pm

    thanks its so usefull

    Reply
  7. Collence Chikuni says

    June 18, 2019 at 2:38 am

    Well explained notes

    Reply
    • Nuwagaba says

      December 2, 2023 at 11:48 am

      it’s very good

      Reply
  8. Daring Ayuba Silas says

    July 4, 2019 at 7:51 pm

    Was very helpful. Thanls

    Reply
  9. Ekol Solomon says

    September 5, 2019 at 4:06 pm

    Very good for an entrepreneurship teacher like me

    Reply
  10. Shefika Pinias Lukiiko Hamata says

    September 19, 2019 at 2:40 pm

    The whole process is well delivered in a nutshell, this is a clue to any entrepreneur before a single touch.

    Reply
    • awuya Emmanuel says

      April 25, 2021 at 5:34 pm

      Very splendid for entrepreneurship student like me

      Reply
  11. `warren kumanda says

    November 29, 2020 at 1:44 am

    very helpful

    Reply
    • Princess says

      June 18, 2022 at 3:43 pm

      Clearly explained ❤️

      Reply
  12. Adedigba Victoria says

    July 11, 2021 at 2:22 pm

    Well stated and clearly explained. Thanks to the writer.

    Reply
  13. Williamceau John Peter says

    October 23, 2021 at 1:18 am

    I’m so glad to learning some stuff in order to create my own business

    Reply
  14. Asante kautcha says

    March 8, 2022 at 6:35 pm

    very helpful information Thank you very much

    Reply
  15. Cecilia Kampeni says

    May 21, 2022 at 12:00 am

    Very helpful

    Reply
  16. Jester says

    September 25, 2023 at 7:42 pm

    very short, precisely and helpful

    Reply
  17. Pascaline manna says

    September 28, 2023 at 2:35 pm

    Well explained for an entrepreneurship teacher like me

    Reply

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