Starting a Business
An entrepreneur is defined as someone who has the ability to
take risks and organise the factors of production.
When starting a new business the entrepreneur faces a
number of problems before they can start up.
They need an idea and a will to succeed, but these are not
enough on their own to be successful.
A business needs:
Finance to fund the other elements listed below: finance is
usually the hardest thing to obtain in a start-up business.
Labour to help develop a product or service and then to
Customers without them, the business will fail. Obtaining
customers means the business must undertake marketing.
Suppliers provide many of the inputs, such as raw
Premises and equipment maybe a simple office, or
possibly a large, modern factory; depending on what the
business activity is.
Management organisation & structure this is often very
simple at the start-up stage (e.g. a sole trader!).
Designed, researched and tested product or service a
successful business is about more than just having a good
idea the product needs to be brought to the marketplace in
its best format.
An entrepreneur needs several skills to succeed:
Ability to take risks
Ability to persuade others to join the business or lend the
Energy to keep the business going under tough
circumstances it is often said that the best entrepreneurs
are the most persistent