Entrepreneural Process

• Drucker acknowledged how personal traits and elements of the external environment could influence the outcomes of an enterprise, emphasizing the importance of how these personal traits and external factors are managed to achieve the goals of the enterprise.
• The entrepreneurial discipline is often referred to as the entrepreneurial process, which involves stages from the awareness of an opportunity to the realization of a business idea.
• The stages of the entrepreneurial process are: discovery, development of concept, organizing resources, implementation, and reaping the returns.
• Discovery in the entrepreneurial process refers to the recognition of a business idea or the detection of opportunities that could make money for the entrepreneurs.
• Mega entrepreneurs draw their ideas from current inventions or other technological developments that can bring about huge profits for them.
• Microentrepreneurs typically get their business ideas from the limitations of existing products as well as from simple businesses where markets are easy to enter.
• The development of a business concept in the entrepreneurial process gives more details on how the general business idea can be realized.
• The development of a business concept suggests the preparation of a business plan that must contain the various activities that must be done from production to the distribution of the product or service.
• Major changes in the local economy and the global market present both opportunities for growth and threats to the survival of a business in an industry.
• Measures on responding to competitors and the bargaining powers of suppliers and buyers can define the competitive edge of a business enterprise.
• This may include family members, neighbors, and other workers, who might not necessarily have the desired skills.
• Megaentrepreneurs usually require highly educated, technologically savvy, and creative employees who came from the best universities and training institution nationally or globally.
• Implementation also includes mechanisms for confronting actual and potential rivals as well as for responding to the various opportunities, challenges, and developments being posed by external environments.
• In contrast, microentrepreneurs draw their resources, including labor, from what is available in their locality.
• Reaping the returns refers to the strategies related to the expansion of the business firm.
• Implementation is the process of carrying out the business plan.
• Organizing resources describes the process of identifying, sourcing, and financing human, nonhuman, and other resources needed for the conduct of business.
• Implementation covers several activities, including the management of human, physical, technological, and financial resources of the business.
• The business plan must describe how the enterprise is going to be organized and managed, and how the business is going to be financed.