Entrepreneurship
1- Your textbook defines the external environment as the forces, institutions and people outside the boundary of the firm. The external environment is further
divided into the general and task environment. Identify one or more sectors in the task environment which helps to create opportunities for entrepreneurs in
the United States. Support your choice with a specific example.
2- In this unit, the DQ and the assignment are closely linked. The readings and slides for Unit 2 should have enabled you to identify an idea for a new small
business venture.
Share your business idea with your classmates and discuss 2 to 3 factors that led to making your choice.
Review the postings of at least three of your classmates and give them feedback regarding the feasibility and desirability of their business idea.
The feasibility study consists of five major sections:
Descriiption of the Business;
Product or Service (benefits, limitations, legal restrictions, insurance needs, trends, and production/delivery costs);
Industry and Market (Current industry, market potential, competition, customers, and market penetration);
Financial Requirements (Pricing, sales revenue, cost forecast, gross profit, operating expenses, and profitability);
Future Action Plan (Sources of start-up capital, further information needed, writing the business plan, and support needed). Support your opinion by citing
specific criteria that are listed on the Feasibility Study Outline.
You will be receiving valuable feedback from your classmates, so make sure you choose an idea which you intend to develop into a business plan.
Sample Solution
In today’s digital age, more and more opportunities are emerging for entrepreneurs to create businesses that will thrive in the market. My business idea is to start a virtual art gallery, which would be an online platform designed to showcase works from artists around the world. This platform would offer customers all over the world access to purchase artwork from these artists at their own convenience, thus providing an opportunity for emerging artists who may not have access or resources in physical galleries.
The feasibility study of this venture will allow me to evaluate current industry trends along with other criteria such as market potential, customer base, competition, pricing structure and sources of start-up capital among other factors which will help determine if this business can realistically become successful in the long run. I believe that the virtual art gallery has great potential due to its unique concept which focuses on showcasing artwork from diverse backgrounds and cultures while also creating new opportunities for both customers and artists alike; it is also important to note that there is no major market competitor currently offering something like this so there is great room for growth within this sector alone.
Additionally, some factors that could potentially aid in making this venture successful are things such as utilizing social media platforms (Facebook & Instagram) where I can promote my gallery by connecting with different target audiences who might be interested in purchasing artwork; implementing marketing campaigns/strategies aimed at increasing visibility of my brand; engaging with local communities through public events or festivals which can create connections with nearby areas; forming collaborations with similar companies or influencers who can help promote my product further; and lastly investing time into research regarding customer preferences so I know exactly what type of products should be offered on my website if I wish for it to become popular amongst buyers.
Overall although starting a virtual art gallery comes with many risks due diligence must still be done when considering such an entrepreneurial endeavor since ultimately thorough analysis is used to measure its success or failure down he line. Through careful examination using tools such as a feasibility study one can gain insight into whether investments made towards their project are worthwhile or not. Therefore by taking into account various elements related to the external environment (both general & task) along with those listed above one stands a better chance at developing their small business venture successfully over time thus maximizing profits while simultaneously achieving economic objectives set forth initially upon initiation of said initiative