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Entrepreneurship Part 5 - A guide for the right growth

Welcome back! In part 5 of the series about entrepreneurship let us discuss about the right growth rate.

To find the optimal growth rate for a new business, entrepreneurs must consider many factors, including the following:

• Economies of scale, scope or customer network

• The ability to lock in customers or scarce resources

• Competitors’ growth

• Resource constraints

• Internal financing capability

• Tolerant customers

• Personal temperaments and goals

An Entrepreneur’s guide to the Big Issue (Bhide, 1999)

Economic growth mainly occurs not because of broad improvements in technology, productivity and resource availability, but because entrepreneurs

1. improve their technology, organization and processes

2. become more productive and innovative

3. force other firms out of business

As the ongoing creative destruction occurs, new and better jobs than the lost ones are created, the overall level of productivity rises and economic wellbeing increases.

To keep it short. Entrepreneurship is a process in which people identify new opportunities and convert them into marketable products and services. Therefore, the field of entrepreneurship involves the study of

1. sources of opportunities

2. the process of discovery, evaluation and exploitation of opportunities

3. the set of individuals who discover, evaluate and exploit these opportunities

Five factors have been commonly cited as being crucial for entrepreneurship to take place: an individual (the entrepreneur), a market opportunity, adequate resources, a business organization and a favorable environment.

Hope you liked what you have been reading. In the next part of entrepreneurship we will go in phase 2 and talk about creativity and innovation on the entrepreneurial journey.