The entrepreneurial process can be expressed as a set of rules and procedures which entrepreneurs follow as well as policies and procedures governing such activities. In order to launch and plan a new business, an entrepreneur must follow certain steps. All phases of the entrepreneurship process have certain definitions and functions.
The entrepreneurial Process has the following 5 phases.
Develop a business plan.
Managing the company.
1: – Discovery (Search): –
This is the first phase. In this phase, the entrepreneur generates new ideas of business, recognizes new opportunities, and studies the market.
Identifying and evaluating opportunities is a very difficult task. An entrepreneur takes input from all persons including employees, consumers, technical people, etc. to identify business opportunities. That is, he collects information from all types of people.
When the opportunity is identified, its next step is to evaluate it.
An entrepreneur can evaluate the efficiency of an opportunity by asking himself a few questions. Such as: – Should one invest in this opportunity? can it benefit ? are the proposed solutions possible? What are the risks associated with it? e.t.c. On top of that, the entrepreneur has to see what his skills and hobby are.
2: – Developing the business plan: –
Once the opportunity is identified, an entrepreneur needs to create a business plan. Business planning is critical to the success of any new venture.
To make a business plan, the entrepreneur should spend a lot of time on it. A business plan should have a description of many things such as – Description of goals and objectives, a description of the need for money, a complete description of products and services, etc.
3: – Collecting resources: –
The third phase of the Entrepreneurship Process is to collect resources. In this, the entrepreneur identifies the sources from which finance and human resources can be arranged. Here, the entrepreneur finds investors for his new business and employees to carry out business activities.
4: – Managing the company: –
Once the funds are raised and employees are hired, the next step is to start business operations to achieve the set goals. First of all, the entrepreneur has to decide the management structure, that is, how to solve a problem when it comes.
5: – Harvesting: –
The last stage of the entrepreneurial process is harvesting. In which, an entrepreneur decides on the future prospects of business such as: – his growth and development. In this, actual growth is compared to planned growth.
Then, to increase the business operation, a decision is taken according to its growth.