Enterprise and Entrepreneurial Management - Research Paper Example

Enterprise and Entrepreneurial Management Introduction A sole trader is a self- employed business person. A soleproprietorship is appealing because it is easier, cheaper and flexible.Before starting up a business there are various things that need to be considered, this requires market research into the operations of the sole proprietorship, the products that will be offered and the customer base among others. A sole trader is personally liable for all the business debts and losses and therefore should do a thorough research on funding, potential market and the competition among others. Market Research According to Grant-writing business magazine,it involves social and opinion research that is systematic in gathering and interpreting information about individuals and other organizations through the use of statistics and analytical methods in order to gain insight and support decision making. It determines a research plan should outline the objectives of the research and give information on the potential of an idea. Creating a list of questions and creating a plan for answering these questions will prove beneficial at the end of the research. Researching apotential market is essential when setting up a business, the knowledge acquired is invaluable to the future of the business because it helps assess the viability of the venture. When conducting a market research certain points should be considered like the target market and competition. A market research must establish the target market of business; this involves knowing their preferences and style. The target market is affected by their income and lifestyle and this influences their buying decisions. The research will also indicate the quantity the buy by the consumers, this will help the sole trader stock on the fast moving goods that are bough in bulk rather than invest in slow-moving goods that could lead to losses. When researching the target audience, the information acquired will influence the location of the business, it should be located in an accessible and strategic place whether for persons driving and otherwise. A sole trader needs to establish reasons on why the target audience should buy from them and not the competition. The business idea should be wanted or needed by the target market. The main idea behind market research is to gain perspective and get informed to enable make the best decision. Research is also important in understanding the competition, a sole trader may consult the competition products that are successful and find out the reasons for this and the same from the businesses that have failed in the same market this will put them in a competitive advantage. They may also consult consumers on the why they prefer some brands to others. This will help understand the brand and make changes in their products where necessary before launching a business plan. Market research therefore will also help fine-tune your idea. Market research will also help with the pricing of the goods and services competitively in the market, the business being a sole proprietorship, the owner can always lower the prices to gain a competitive edge, and however raising the price may discourage consumers from the business. Market research is all about getting as much information as you ca from different sources. Importance of market research Objective market research will have many benefits for start-up entrepreneurs. Primary research should use unbiased persons to ensure reliable data, valid results, and factual figures and not unbiased views. This is because a business based on biased results will prevent the business from being successful in the market.Market research will help the trader gain the latest and useful information about the consumer’s wants and needs and give them a competitive advantage. This minimizes their risks and allows the business to bridgegap in the market. The information provided gives one the business intelligence to make informed decisions.it helps with the creation of a business plan and the launch a new product or service, find ways to get into new markets, develop a strategic advertising campaign, set prices as well as select a business location.Market research isdeemed important since it allows you to identifykey business factors about the market like growth trends of the businesses existing, the size of the target market, best location for business, and the competition. Market research must deliver quality and speedy data in order to accord decision- making, with the incorporation of modern technology this should prove to be an easy task for the trader (Van, 2007).  This information gives the sole trader an edge in establishing a business in a certain market. After analyze the results of the market research, the trader is ina position to create a business plan that will help the business grow. Market research for a startup is important because it minimizes the risk and uncertainty and provides information on which to build a marketing strategy through reviewing the customer’s reaction and feedback (Burns, 2010).however this is only viable where the information is clearly understood and interpreted. Methods and approaches chosen for the market research In a start-up business it is vital to conduct both primary and secondary market research into the business idea in order to fully understand the feasibility and the target market information. Research gives entrepreneurs an outline of where to take further research by revealing loopholes in current data and showing areas for deeper investigation. Primary research is tailored to suit the needed information, the sole trader will focus this type of research on the specific questions he want answers to, it delivers more specific results that is needed in launching a new business and helps remove some of the barriers in the market by modifying the business idea. Secondary market research is based on previous studies and hence gives a background look into the market on the success of previous products or services as well as the target market’s previous purchasing habits (Kent, 2007). Finding information using this method is easy and much of it is free or low-cost, however it may provide a lot of irrelevant information compared to primary research. Secondary information is available from various sources like trade associations, internet search engines and Government databases.A sole trader is advised to use both research methods, secondary to lay the groundwork and primary to fill in the gaps for a more informed view of the market (Matejun &Walecka, 2013).  There is quantitative research and qualitative research methods that can be used in market research. The main aim of quantitative research is to provide statistical information while qualitative research explores peoples feelings and attitudes. These include the use of five basic modes of market research. These are: Surveys – They are in-person surveys which are done in high traffic areas by offering samples and getting instant feedback, telephones surveys and online survey which is done on the internet. Using the survey method is reliable because it is inexpensive and the feedback is instantaneous. Through the use of concise and straightforward questionnaires the sole trader can analyze a sample group that represents your target market through this method. Focus groups/interviews – These are characterized by open-ended and unstructured questions, the sessions are conducted by the interviewer and recorded. These methods are qualitative in that they give insights into the customer attitudes and mostly used to gain insight on new products or a niche in the market. These methods are best suited for a sole trader because they are cheap and provide the relevant information on the market. Technologyuse in conducting a market research is highly valued as well, a sole trader can gather information from various social media sites, due to the high interactions there is guarantee for a constant feedback, and the data may be positive or negative. These sites also give the trader a platform to meet other established entrepreneurs and get useful insight. Social media also provides a target audience that is much more advanced and have preferences that are more appreciated in the society(Phillips, 2010) Technology has made market research easier by moving data collection capabilities online. The use of online surveys is also a helpful feature; you can write your own survey questions and then distribute the link online and tap into the pool of friends and consumers with ready internet. This method gives you access to different type of users and hence the information gathered is diverse. The main disadvantage of using the internet method is the large amount of information that is received as feedback. It may prove difficult to sift and analyze all the information that is given (Poynter, 2010).  Conclusion Market research is an important component in a business strategy; it is normally concern with a specific market. It provides information that aids in marinating competitiveness in the market. Market research should help the sole trader conduct a SWOT analysis even before starting a business this will help when entering into the business environment to keep the business afloat by periodically assessing the factors that are work and the situations that have changed in both the micro and macro environment.Market research not only helps in making informed decision but also in understanding the market lingo and trends and appreciates the use of technology in the advancement of the set goals. This paper has analyzed market research for start -up business and the importance such market research has on the business and in assessing the risk factor in the market. The research methods applied is also a factor that has been considered by the paper through analysing the use of primary and secondary research methods. The application of both methods complement each other by analysing the data and attitudes of the consumers to the already existing products in the market and providing information on how these products and services can be improved for more customer satisfaction.   It has also looked at the advancement of technology as a tool for market research, this has simplified the work of business by getting instant feedback from the consumers and this can also be applied by start-up traders to establish the market gap and get information on brands and services that are more appealing to consumers. Market research is important and every business owner should have a strategy on how to conduct the research before launching any product or service into the market to increase the possibility of success. Reference list Top of Form Burns, P. (2010).Entrepreneurship and Small Business.Palgrave Macmillan, Grant-writing business: Everything you need to start a successful business!. (2012). Irvine, Calif.: Entrepreneur Press. Kent, R. (2007). Marketing Research: Approaches, methods and applications in Europe. Thomson Learning. Matejun, M., &Walecka, A. (2013). Modern entrepreneurship in business practice: Selected issues. Lodz: Lodz University of Technology Press Phillips, F. (2001). Market oriented technology management: Innovating for profit in entrepreneurial times : with 43 tables. Berlin ; Heidelberg ; New York ; Barcelona ; Hong Kong ; London: Springer. Poynter, R. (2010). The handbook of online and social media research: Tools and techniques for market researchers. Chichester, West Sussex, U.K: Wiley. Van, H. M. (2007). Market Research Handbook. Chichester: John Wiley & Sons. Bottom of Form Read More