Entrepreneurship and Innovation Management Economic Growth

Question: Discuss about theEntrepreneurship and Innovation Management for Economic Growth. Answer: Introduction The moment when you take the decision of starting up a new business, then you should consider yourself in the business lifecycle. This is the starting stage where it gives you the idea of a startup journey, then if it is successful, it will lead to the phases of growth and the maturity. While business is always challenging when looked keenly at every stage of the life cycle of business, there are a set of obstacles which gets highlighted and has to be dealt with and has to overcome in becoming successful (Andrew et al., 2013). Flexibility has to be maintained in the thought process and the strategies are to be adapted as you move forward. Certainly, various approaches are to be made to penetrate into the market competition. For instance, what is required for achieving the growth and retaining the market share is being discussed. As per the startup genome report that has been recently made, it has been estimated that 90 percent of the startups fail due to the self-destruction. The founders of the business might not be prepared or may not make better choices of the market conditions which make them out of control. In the business cycle, the position has to be understood, which would help you to stay ahead of the odds and face the potential challenges and the obstacles that cross your way based on the phase of the cycle you are at (Audretsch Link, 2012). In simple words, the business growth and development was achieved in the share market by focusing on the aims of the business, following its objectives and the strategies and priorities so that the current stage of the business was known which helped in solving the obstacles. The Journey The journey of the Entrepreneurial life cycle of the share market business is presented as follows: Stage 1: The Seed and the Development This is the beginning stage of the business lifecycle, so before starting up the business it was officially enquired for its existence in the marketplace. Then the business idea has struck the mind and then they prepared themselves to make an attempt. Then the feasibility of the share market business has been assessed (Audretsch Link, 2012). This was the stage, where the opinions and the advice that are potential for the business idea have been assessed from various sources available which include the family, relatives, colleagues, friends, associates of the business and various other specialists in this industry have been contacted. As a result, the business was successful as it has been influenced by various factors such as personal abilities of the individual, market inclination that has been targeted, and the most important one was the financial support of the business. In some of the cases, this is the most deliberate phase as here one can move a step backward and think of the feasibility of the business idea that has been implemented and questions themselves what is the requirement that would lead them to the success. Stage 2: Start up The business has been thoroughly canvassed by testing the idea of the business in the entire market by using various sources and finally was satisfied with the information available and was ready to start and make an official approach for launching the business. This stage is known to be believed as the most risky phase of the business cycle (Finkle, 2012). The point to be noted here is that the company would be impacted many years together down the line if any mistakes are made at this stage of the business. The business was being adapted as it is the key point and most of the time was spent in making the modifications of the products or the services offered by taking the feedback from the customers and changes were made accordingly. It has been even dragged to the stage where many changes were made to the share marketing process in the offers given to the customers which have confused the company a bit (Galindo and Mndez, 2014). It was because of the vagueness of the business ideas and the continuous repetitions of the offers which led to the stage of confusion. Later clarity was maintained with the strategies which cleared the concepts of the share markets (Hall et al., 2012). Stage 3: The Growth and the Establishment The share marketing has reached this stage where the shares have been sold to the level and the consistency of the income has been maintained by inviting new customers on a regular basis. Cash flow has been improved and the revenues were recurrent, which helped to cover the expenses that are made on a daily basis and the business started gaining the profits out of expenses and its improvement has been noticed and identified slowly and steadily (Hope et al.,, 2015). The most challenging factor that was faced by the entrepreneurs at this stage was managing the time in between the entire new range of demands which was requiring the attention and managing the revenues that are at increasing levels and addressing the customers, competition dealings, expanding the workforce who would provide service to the customers (Ikem, Aponte Muffatto, 2015). The company was able to overcome all these issues and was able to handle and manage the situations appropriately since it has hired the staff with a complimentary skill set and employees who work smart. For reaching most of the companys potential at this stage it necessarily consisted of experts who could manage the business with their expertise and finding out the solutions to overcome the issues that are faced in the business (Karlsson Warda, 2014). At this stage of the business, the companys associates and the senior managers have put themselves in the role of developing the strategies for the business so that every official would be aware of how to expand the business further by recruiting the qualified team who are highly skilled and who has the abilities of dealing with the opportunities which were previously not so easy to control (Letaifn Rabeau, 2013). The company then made a team in establishing the order of the working strategy and to build unity so that the team work in an organized manner with the defined set of roles and responsibilities and was successful in reaching the goals that were communicated. Stage 4: The Expansion This is the stage where all the works were executed in the regular manner which was used for running the business ahead. Sufficient amount of staff was recruited for managing the business. The highly skilled and well-communicated individuals have been placed for handling the areas where officials did not have the time to manage and the business was then established firmly in the industry (Marcotte, 2014). At this stage, the share markets business has been trying to bring stability by expanding their horizons by capitalizing to the certain level by providing and attracting the customers with the appealing offers and introducing the new ideas for making an entry into the new Geographics. By expanding the business in the new horizons it has seen the rapid growth of the revenues and the extreme cash flows as the plan has been established. In business, the company should always try to move forward if there is no attempt of making a forward move, then it remains constant and backward and can never be competing in the market and its existence would be gradually vanished (Mro?ewski Kratzer, 2016). Of course, there are two sides of the coin where there are risks associated with the business expansion if it was not properly planned. Since it is very difficult and not so easy to expect the outcomes of the idea from the undertakings taken by them, but it has been planned and executed in the best possible way with a careful move (Muju, 2015). The company has taken into consideration the following points before stepping ahead such as it has looked after its resources, it was realistic regarding the cost, potentials and effort returns and was always monitoring the impacts that the expansion would result in the quality of the customer service which is being provided to the existing customers (Nambisan Baron, 2013). Stage 5: Maturity and the Possible Exit By navigating the business life cycle in the expansion stage successfully, the company is now noticing the stable profits year after year. While there would be a few companies which keep on reaching the top line in the decent amount of time and speed whereas few others would struggle hard for the growth and development of the business to the same level (Patton, 2013). But this share market business once hits the market and gains customers, then it does not have to look back to its success is what the company is now experiencing. At this stage, the business is having two options it can either go for further expansions of its shares or can exit the business. For expanding the business further, there were certain queries that were striking the entrepreneur like can the further growth will be sustained by the business, are opportunities available for its expansion, can the business be financially stable if there is any attempt which is not successful etc. The company has been changing the leadership styles as it was trying to find out the appropriate individuals who are fit for managing the situations and can navigate the new challenges that keep on rising in the business (Patton, 2013). Most of the business at this stage would be looking for a sale to move on. This can either be a partial sale or a full sale, which basically depends on the company type. As a result, the negotiation would result in the entire new journey of the business life cycle. The business model canvas has helped in developing the business plan of the share marketing business by taking into consideration the 9 key points of the model such as: Key Activities: The key activities such as shares and attractive deals of the company have been outlined by giving the idea of what the organization mainly focusing upon and outsourcing the key competence by making this activity as the central point in this business. Key Resources: For creating the customers value the company has designed the resources in the form of shares. By making use of these resources as the assets the company is providing the best deals to the customers (Sahut Peris-Ortiz, 2014). Partner Network: The company has identified the key activities and has established its partnership with the large scale businesses. Before doing so it has made an assessment of the risks associated and tested accordingly. It has made a fair deal with the partner regarding the profits and made sure of sustainability. Value proposition: Since the business was entirely customers based it has established a specialist team in resolving the customers issues related to their shares. It provides its value through their performance, reduction of risks, convenience and accessibility. Customer segments: The targeted customers have been identified by the business who are the business officials for purchasing their shares (Soares et al., 2013). Channels: For delivering the shares to the customer segments it has chosen the appropriate channels which are efficient and cost effective. Customer relationship: The key factor is to manage the customer relationship effectively, which made their business stand out from the competition and has driven more customers towards their business. Cost structure: The companys financial consequences which were used for operating their business models was adding value to the expectations of the customers. Revenue streams: For generating the income the company has planned for various options like a sale, low deals, small shares, etc. that would grab more customers which would bring them profits. Strengths and Business of Ventures Business Model: For starting up the new business on own, the financial planning has to be done for launching the new venture and then a decision should be taken for entering the business world (Shan de Bruin, 2013). The strengths and weaknesses that are associated with the business operation include: Strengths: A business plan that is proven: For the business plan to become strong and successful the enterprise should be located in the appropriate locations, the unexpected problems should be addressed and should make sure that the business operations are managed smoothly (Mro?ewski Kratzer, 2016). By doing so, the business can be directed to the finely tuned system where the failure rate would be low. The marketing efforts should be collective: For any business to become successful it requires promotion. For this advertising would be the appropriate way, but it is expensive. In such cases, it should be shared by all the members of the business partners, which can be used for developing the marketing campaigns. Ownership: Irrespective of the agreements made every franchise will own their They just need to follow the guidelines that are set by the business fro the successful running of the business. Weaknesses: The initial investment is huge: The success rate of the business and the experience are on the same level. For introducing the franchise in every location it ends up investing a huge amount in the startup business. Self-determination is low: The business contracts are usually affected when decisions are not taken in an appropriate manner. The irrelevant individuals are expected to take the decisions so the agreements of buying the contract would be lost (Letaifn Rabeau, 2013). The cocktail effect: Every business has its own location, but it cannot be operated with complete freedom since there are other competitors with the strategic plans. So the conditions should be appealing otherwise it would impact the business and the entire chain. The cocktail effect means if the control of corporate is more for the fewer mistakes it would result in the irresponsible act and will harm the brand of the business. Future Recommendations: Most of the venture for its significant development in the future should determine the milestone for it to become successful (Hope et al.,, 2015). The essential dates should be imposed on the plan externally, for instance, factors such as agreements on a contract basis or the competitive pressures. The milestone planning approach has the following three advantages for the business such as: The errors that are costing the business plan would be reduced For reevaluating and learning of the whole venture it would give the chance of practical and local milestones The replanning methodology is offered on the basis of the growth in the business Milestone 1: At this stage, the cost related to the development of the future steps is very low and proceeds with the development of the entire product. The purpose of this phase is that it can be determined whether any product development is required or not. Milestone 2: By analyzing the prototype development carefully the entrepreneurs can obtain the useful information. The situations that lead to the obstacles and issues should be analyzed and solutions to overcome have to be established (Hope et al.,, 2015). 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