Entrepreneurship MGT-601

[Audio] Entrepreneurship MGT-601 Name: Musfira Tariq Roll no: 202451/795302.

[Audio] The Nature and Importance of Entrepreneurship(lesson-2).

[Audio] Content: Desirability of New Venture Formation Key Factors Aspects of a situation that make it desirable to start a new company Possibility of New Venture Formation Factors making it possible to create a new venture KEY TERMS.

[Audio] Desirability of New Venture Formation The desirability of new venture formation refers to the attractiveness and feasibility of initiating a new business..

[Audio] Desirability of New Venture Formation A high desirability indicates favorable conditions and opportunities for the successful establishment and growth of a new business. Entrepreneurs carefully assess these factors to determine the likelihood of success and the overall appeal of starting a new venture in a given context. The perception that starting a new company is desirable results from an individual's culture, subculture, family, teachers and peers..

[Audio] Factors 1. Cultural Values American Culture: The United States, for example, places a high value on entrepreneurial endeavors. The cultural emphasis on being one's own boss, achieving success, and making money contributes to a high rate of company formation in the country..

[Audio] International Variances: Different countries have varying cultural attitudes toward entrepreneurship. In some cultures, making money may not be as highly valued, and failure could be considered a disgrace. This cultural context influences the rate of business formation in different regions. 2. Family Influence Parental Values: Studies indicate that a significant percentage of company founders had parents who highly valued independence. Family values and upbringing can play a crucial role in shaping an individual's attitude toward entrepreneurship..

[Audio] 3. Educational Environment: Teacher Influence: Teachers play a significant role in shaping the mindset of individuals. Encouragement from teachers can influence students to consider entrepreneurship as a viable and desirable career path..

[Audio] Educational Base: Areas with strong educational foundations tend to foster entrepreneurial activity. A well-educated population is often more equipped with the skills and knowledge needed to start and manage a new business. 4. Peer Influence: Peer Support: Peers also contribute to the desirability of new venture formation. Being in an environment with like-minded individuals who are supportive of entrepreneurial endeavors can encourage aspiring entrepreneurs. Entrepreneurial Pool: The presence of an entrepreneurial community in a specific area can create a conducive environment for new venture formation. Shared experiences and a sense of community can motivate individuals to take the entrepreneurial leap..

[Audio] 5. Social and Economic Values: Success and Wealth: Societal values that equate success and wealth with entrepreneurship can drive individuals to pursue business ventures. The perception of entrepreneurship as a path to financial success can be a strong motivator..

[Audio] Aspects of a situation that make it desirable to start a new company American culture places a high value on being your own boss, being a success and making money therefore, it is not surprising to find a high rate of company formation in the United States..

[Audio] On the other hand in some countries making money is not as valued and failure may be a disgrace. The rate of business formation in these countries is not as high. Many subcultures that shape value systems operate within a cultural framework. Studies indicate that a high percentage of founders of companies had fathers and/or mothers who valued independence..

[Audio] Encouragement to form a company is also gained from teachers, who can significantly influence individuals. An area having a strong educational base is also a requirement for entrepreneurial activity. Peers are important, also, as is an area with an entrepreneurial pool and peer-meeting place..

[Audio] Possibility of New Venture Formation Although the desire of new venture formation derived from the individual's culture, subculture, family, teachers and peers needs to be present before any action is taken, the second feature necessary centers around this question "What makes it possible to form a new company?".

[Audio] Formal education and previous business experience give a potential entrepreneur the skills needed to form and manage a new enterprise. Although educational systems are important in providing the needed business knowledge, individual will tend to be more successful in forming in fields in which they have worked..

[Audio] The government also contributes by providing the infrastructure to help a new venture. The market must be large enough and the entrepreneur must have the marketing know-how to put together the entire package..

[Audio] Finally, financial resources must be readily available. Although most start-up money comes from personal savings, credit, and friends, but there is often a need for additional capital. Risk capital availability plays an essential role in the development and growth of entrepreneurial activity..

[Audio] KEY TERMS 1. Foundation companies 2. Gazelles 3. Government as an innovator 4. High-potential ventures. 5. Entrepreneurship.

[Audio] 6. Iterative synthesis 7. Lifestyle firm 8. Ordinary innovation 9. Possibility of new venture formation.

[Audio] 1. Foundation companies A type of company formed from research and development that usually does not go public. 2. Gazelles Very high growth ventures. 3. Government as an innovator A government active in commercializing technology.

[Audio] 4. High-potential ventures. A venture that has high growth potential and therefore receives great investor interest 5. Entrepreneurship Entrepreneurship within an existing business structure 6. Iterative synthesis The intersection of knowledge and social need that starts the product development process.

[Audio] 7. Lifestyle firm A small venture that supports the owners and usually does not grow 8. Ordinary innovation Z new product with little technological change 9. Possibility of new venture formation Factors making it possible to create a new venture.