ENTREPRENEURIAL DEVELOPMENT

VENTURE CREATION

Presentation by: group 14ACCOUNTING GROUP 1

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Learning objectives:

What is entrepreneurship?

What is venture creation?

What are the steps in setting-up a small venture?

What are the opportunity analysis in creating a new

venture?

The entrepreneur and the environment

Cont.

The technological environment Competitive factors that affect a venture

creationThe legal requirement.

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Study Question 1: What is entrepreneurship?

Entrepreneurship– Strategic thinking and risk-taking behavior that

results in the creation of new opportunities for individuals and/or organizations.

Entrepreneurs– Risk-taking individuals who take actions to

pursue opportunities and situations others may fail to recognize or may view as problems or threats.

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Who is an entrepreneur?

Entrepreneurs are …– Founders of businesses that become large-scale

enterprises.– People who:

• Buy a local franchise outlet• Open a small retail shop• Operate a self-employed service business

– People who introduce a new product or operational change in an existing organization.

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Figure 6.1 Personal traits and characteristics of entrepreneurs.

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WHAT IS VENTURE CREATION?

VentureA new activity, usually in business, that involves risk or uncertainty.

Venture creation is the process of turning a new idea or technology into a business that can succeed and will attract investors: Ref: Cambridge Business English Dictionary

 

Opportunity analysis Opportunity analysis is a detailed review of the

prospects for a product within a potential market. For example, a product marketing manager for a business might request a detailed opportunity analysis for a particular product to help them forecast whether market demand conditions will support launching the product into that market.

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ENTREPRENEUR AND THE ENVIRONMENT

Creating an Entrepreneurial Environment When economic developers talk about a positive

environment for economic development, they are often talking about the business climate in the traditional sense – are there sites in the industrial park, is the community “business friendly,” are there roads and sewers for new factories?

There are some components of this environment that entrepreneurs need to address:

Culture – they should take a look at the perception, values, personal relations and the attitude towards work of people in the environment in which they want to operate.

Infrastructure – Moving beyond the typical notion of satisfying just their organisational need and concentrate on supporting educational institutions like community colleges and regional universities, cultural and recreational resources, quality schools, social organizations.

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Technological Environment

“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business

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Advantages & Disadvantages of the Technological Environment

Advantage: Increased ReachUsing information technology, a marketer can reach an enormous number of people with just the click of a button. Networked technologies give millions of people instant access to each other, and this fact is being exploited ever more actively by marketers trying to get their products into the public eye. While the Internet allows broad dissemination of advertising, other technologies facilitate its quick design and production. 

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Cont. Advantage: Speed and Flexibility Technology allows advertisers to respond quickly to

changes in the marketplace. For example, if a competitor develops a product that quickly becomes popular, an advertiser can alter the image of his own product to more closely resemble the competitor's. Different markets can be targeted with differently themed promotions using digital technology, without the prohibitive costs associated with traditional print technologies.

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Disadvantage

CompetitionWhat makes all of these technological developments less than perfect is that they are available to everyone. If only one promoter had access to advanced technology, he would certainly have a tremendous advantage. In a world that is saturated with such technology, the result is a marketing arms race in which each business is striving for the next edge over its competitors. This level of competition can become expensive and stressful as new machines and software are constantly being purchased and employees are constantly being trained in new practices.

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Cont.

»Homogenization The most efficient and most effective way of getting

public attention is a growing homogenization in both products and the way that they are promoted. Because digital technologies make replication so easy, no marketer can have an edge on the competition for very long, because others will copy whatever is effective. An advertising environment in which everything looks the same makes it difficult for consumers to distinguish between products.

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10 Steps to Starting a Business Step 1: Write a Business PlanUse these tools and resources to create a business plan. This written guide will

help you map out how you will start and run your business successfully.  Step 2: Get Business Assistance and TrainingTake advantage of free training and counselling services, from preparing a

business plan and securing financing, to expanding or relocating a business.

  Step 3: Choose a Business LocationGet advice on how to select a customer-friendly location and comply with

their environmental laws.

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Cont. Step 4: Finance Your BusinessFind government backed loans, venture capital and research grants to help you

get started.  Step 5: Determine the Legal Structure of Your BusinessDecide which form of ownership is best for you: sole proprietorship, partnership,

Limited Liability Company (LLC), corporation, non-profit or cooperative.  Step 6: Register a Business Name ("Doing Business As")Register your business name with your state government.

 

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Cont. Step 7: Get a Tax Identification NumberLearn which tax identification number you'll need to obtain from the IRS

and your state revenue agency.  Step 8: Register for State and Local TaxesRegister with your state to obtain a tax identification number, workers'

compensation, unemployment and disability insurance.  Step 9: Obtain Business Licenses and PermitsGet a list of federal, state and local licenses and permits required for your

business. Step 10: Understand Employer Responsibilities

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Legal Requirements for Setting up a Venture

Register the BusinessWhen setting up a business, your first job is to decide which business

structure is best for you: sole proprietor, corporation, Limited Liability Company or a partnership. The business structure you choose dictates the paperwork you have to file with the state secretary’s office where the business operates, but you first have to register your business and name with the registrar general department.

State Business LicenseYou must check the registry to see if the state requires you to carry a state

business license; some states require a business license while other states do not.

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Cont. Local Business LicenseCountries and other localities generally require businesses to obtain a

license to operate within their locality. The registry provides guidance about the type of license you need to establish and run your business.

  Federal Business LicenseA federal business license is not a common type of license for a business

to have to obtain. Federal business licenses are required only if your business involves the sale of alcohol, tobacco ; prescription drug manufacturing; or providing investment advice.

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Cont. Federal Employer ID NumberThe Internal Revenue Service requires businesses, especially those with

employees, to obtain an employer identification number.  Sales and Use Tax PermitIf your business involves selling taxable product or services, most states

also require you to obtain a sales and use tax permit. Texas requires corporations, partnerships or limited liability companies to hold a Texas sales and use tax permit. Other state laws vary, so check with the Department of Revenue for your state for the requirements.

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Cont. Business PermitsOther types of business permits may be requirements. These permits

normally include a seller’s permit for reselling wholesale merchandise, a health permit for food preparation businesses.

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GROUP 14 (QUESTION 3) MEMBERS

NAMES ID NO. AMABLE DILLION WISDOM 12BAR112 KLU BELINDA SELASE 12BAR0128 DONKOR NAKIE DOREEN 12BAR0076 FREMPONG MAXWELL 12BAR0075 AL-HASSAN ABUBAKARI 12BAR074 FRANCIS ASARE KWAO 12BAR113 APPIAH SAMUEL 12BAR014 IBRAHIM ANYASS 12BAR0014 AMPOFO SAMUEL 12BAR163 MENSAH ISAAC 12BAR110

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