The Risky Undertaking of a Business Opportunity by an Entrepreneur - Essay Example

All organizations are have an external environment, which plays a key role in determining the success or failure of the organization[Ebe12]. The external environment of the organization consists of all the outside forces and factors that may affect the organization either positively or negatively. It is therefore very important for any organization manager to have a clear understanding of this environment. There are six external environments and they can affect an organization either directly or indirectly.

The six environments include the domestic environment; this comprises of the environment in which the organization carries out its business and generates income. The second environment is the global environment; this is composed of the international forces and factors that affect the operation of the business either direct or indirect[Ebe12]. The third environment is technological; this environment is made up of the factors and ways in which the organization generates value for its constituents.

Four environment is made up of Political-legal environment; this is comprised of the link between the business and the government. A thorough knowledge into this environment is essential for any manager. The fifth environment is socio-cultural and it deals with the society in which the organization operates. It reflects on the demographic characteristics and the customers values of the society. Lastly, there is the economic environment; this section reflects on the relevant conditions that are linked to the economic system in which the firm operates.

EntrepreneurshipEntrepreneurship is the risky undertaking of a business opportunity by an entrepreneur. The entrepreneur in this case must be ready to accept the risk and the opportunities involved with starting of the business[Ebe12]. Entrepreneurs possess some key characteristics that make them unique to ordinary people. These characteristics comprise of the strong desire to be independent, humble and customer friendly, personable, have sufficient resources, and can take on risk and uncertainties.

ReferencesEbe12: , (Ebert and Griffin ),