Q.Which of the following is the correct first step in the entrepreneurial process?
(A) Preparing a business plan
(B) Mobilising finance
(C) Generation of a business idea
(D) Launching the enterprise

The entrepreneurial process always begins with an idea — everything else (feasibility analysis, planning, resource mobilisation, launch and growth) follows only once there is an idea to act on.

The entrepreneurial process follows the broad sequence: idea generation, feasibility and opportunity analysis, preparing a business plan, mobilising resources, launching the enterprise, and growth.

(A) Preparing a business plan — incorrect as the first step, since a business plan can only be written once there is an idea, and once that idea has at least been informally assessed for feasibility.

(B) Mobilising finance — incorrect as the first step; resources (including finance) are mobilised after the idea has been analysed and planned for, not before there is even an idea. …

Students sometimes select 'Mobilising finance' because they associate the start of a business with 'raising money'. Remember the actual sequence: an idea must exist and be judge …