4/Why is growth important for new businesses and what are the key growth issues

Question

4/Why is growth important for new businesses and what are the key growth issues for an entrepreneur?

5/The textbook “PEM” itemizes five stages of the Entrepreneurial Process. Please note that the sequence matters and that the specific activities associated with each stage matter.

6/Throughout this and later chapters the text refers to Owners, Partners, Executives, Hired Managers, Mentors, Customers, Investors, and Social networks. What do these roles mean and how do these roles or titles differ from one another.

Explanation / Answer

4. in the initial level or introduction level the firm was incurred huge expenditures and they can not be recovered at the initial level or introduction level only. so, to get higher revenues to fill the gap and to get positive revenues the firms expects growth in its sales. in this stage the firm will recieve average higher revenues through higher sales. and the expenditure will be minimum or less in this stage.

5. enterpreneurial process includes the following 5 stages:

idea generation, idea implementation, pooling all the required resources, starts working on them and produce output and finally analyse the total process and controlling them.

idea generation represents, identify the gap in the market or society and prepare an idea to fill the gap.

in the second stage check whether the idea can be possible to implement practically or not? if possible then proceed, if not possible leave it.

in third stage we need to collect all the required resources and pool all of them for funcioning. like material, manpower, machine power and other resources.

in fourth stage, integrate all the inputs and prepare a successful product and release it in market.

in last stage, look at the results. if they are expected and satisfactory thats ok, if they are in a different way then reprocess and replan.

6. all these are people and entities which supports the running of our business directly or indirectly.

owners are the people who invested their money and started the business. they are the key players to make decisions in the business process.

partners also co owners, join together to run the firm in a succesful way. they are coowners in the business.

executives are the middle level employees recruited by the top management to carry forward the business activities smoothly. and hired managers also employees, who works for the salary.

investors are the people who invested their money in our business by showing respect towards our business and respect on us. they looks capital appreciation and dividend on their investments.

social network sites are the entities, supports to run our business. we can use them to promote our business and create awareness among the customers.

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