Principles of technopreneurship

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Techno 1 notes

THE ROUTE TO MARKET ENTRY START-UP
Advantages of a startup a) Creation of the owners. Freedom of choice over what the business does how it operates and what its values are.

Experimentation:
Experiments or tests are sometimes conducted to obtain live feedback from the marketplace. A retail chain of two or more shops can vary their marketing activities in one outlet e.g. prices maybe changed in one shop only and sales patterns compared to the other shops in an effort to gauge the effectiveness of the price change.

THE ROUTE TO MARKET ENTRY

START-UP
A business startup means creating anew business, which stands alone and is not tied to other organisations except in the normal course of trading. This does not necessarily mean that the idea is new, only the vehicle which is setup to exploit it. The level of risk taken in a startup ranges from virtually nothing to highly significant personal financial and time investment. This investment can be made by an individual on their own, as the sole owner of the business or it can be shared with others, who are either directly involved as equal partners or less committed but still investing money, or time, in starting the business. A startup, such as anew shop or manufacturing company, may require greater investment in capital equipment, premises, office equipment, staff in addition to the owner and other overheads. If this investment is made by a sole trader it represent a very high level of individual risk. Such investment can be shared, depending on the scope of the startup. Some new enterprises require such significant initial investment that a consortium of partners come together to share the risk. The scope of the startup will be determined by the nature of the business, and the objectives of the owners.
Advantages of a startup
a) Creation of the owners. Freedom of choice over what the business does how it operates and what its values are.
b) Control of the owners. Personal decisions count, external influences can be minimized. c) Satisfaction of the owners Success due to the skill and efforts of owners, which gives them heightened sense of satisfaction when (if) success comes. d) Starts on a clean sheet. The business starts with no backlog of problems it will create plenty, but at least they will be new ones and not inherited from the paste) Help from various agencies Government assistance and help from other agencies is available to encourage new business startup.

Technoprenuership1 26 f) Match between founder and enterprise The founders of new enterprises can ensure that their individual strengths are well used, and their weaknesses minimized, by choosing a business well matched to their own qualities and experiences. g) Less funds required A startup that works costs less than buying a similar franchise or existing business.

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