Commerce · Ch 23 — Elements of Entrepreneurship
The Entrepreneurial Process
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The Entrepreneurial Process
Entrepreneurship rarely happens as a single sudden act; it unfolds through a series of stages, from the first spark of an idea to the ongoing management of a growing enterprise. Understanding these stages helps explain why entrepreneurship is properly described as a PROCESS rather than a one-time event.
| Stage | What happens at this stage |
|---|---|
| 1. Opportunity identification / idea generation | The entrepreneur notices an unmet need, a market gap, or a better way of doing something, and forms this into a business idea |
| 2. Feasibility analysis / evaluation of the idea | The idea is tested for whether it is technically possible, financially viable, and likely to find enough customers before real resources are committed |
| 3. Mobilising resources | Finance, manpower, technology, raw material, and a suitable location are arranged and brought together |
| 4. Developing a business plan | A written plan is prepared setting out the product/service, the target market, the operations, the finances, and the goals of the proposed enterprise |
| 5. Establishing / launching the enterprise | The enterprise is formally set up — legal formalities completed, premises readied, staff hired — and begins actual operations |
| 6. Managing and growing the enterprise | The entrepreneur runs day-to-day operations, monitors performance, solves problems as they arise, and looks for ways to expand or improve the enterprise over time |
Definition 1Feasibility analysis
A systematic evaluation, carried out before committing significant resources, of whether a proposed business idea is technically workable, financially viable, and likely to attr …
Definition 2Business plan
A written document prepared by the entrepreneur that sets out the proposed enterprise's product or service, target market, operational plan, financial projections, and objectives, and that typically also guides dis …