Entrepreneurial Process Paper - Admission/Application Essay Example

Entrepreneurship is a hard task as an entrepreneur, who is the one who starts the business, needs to have a proper plan on how to conduct his or her business failure to which the business fails. An entrepreneur has to be a risk taker since he or she will devote their resources on a venture they view viable with no guarantee that they will get a return for the investments they make (Baron and Shane, 2007). An entrepreneur thus has to be creative and innovative to ensure that the business they venture into is viable and it will give returns and this is why starting up a venture will require the entrepreneurial process, which will involve planning on how the business objectives will be met.

An entrepreneur is required to find an opportunity to venture into evaluate it and then develop it by ascertaining that they overcome the forces that would restrict starting the new venture. Therefore, entrepreneurship will involve four distinct processes described below in order of precedence, which are all important in ensuring that a business becomes successful. The first and most important element of the entrepreneurial process is the identification and evaluation of an opportunity where the entrepreneur sees a viable business to venture into by identifying an existing need.

It is the most important element because failure to identify a good opportunity will just be a waste of resources as no returns will be generated. An entrepreneur will conduct a market research to establish a potential opportunity, and analyze the potential people who will use the product. This process will involve innovativeness, as the entrepreneur is expected to come up with a unique product, which will have a great share in the market as it is demanded by consumers (Carsrud, and Brannback, 2007).

Evaluation of the opportunity is important as it allows the entrepreneur to know whether their product will give them returns and will not be a waste of resources. Evaluation will involve looking at the prospects of the opportunity and checks its value, the risks involved, whether it fits the entrepreneur’s skills and objectives and finally its uniqueness, which determines its competitiveness in the market. Money and resources required are acquired at this stage and once the idea is identified development of a business plan follows.

The next step is developing a business plan, which will help in exploiting the opportunity that has been realized, by determining how resources acquired will be utilized. This process is not time consuming as the entrepreneur does not already have the resources to make a good plan but it is important as it enables the entrepreneur to develop the opportunity by determining the resources that will be required to start up the business and obtaining them in order to start up the venture. A well planned business is crucial to the success of a business as it creates a balance on all its aspects, and thus when the business starts, everything is well laid down for accomplishment.

Determining resources required to conduct the business is the third step, and this is where the entrepreneur finds the resources needed to realize the opportunity that has been spotted. The entrepreneur will first know the resources that are available and separates the important ones from