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Desirability of a new Venture

The Aspects of a situation that make it desirable to start a

new Company.
A culture that values an individual who successfully

creates a new business will spawn more venture


formations than one that does not.
The desire derived from the individuals culture, family,

teachers and needs to be present before forming a new


venture.

Possibility of a
New Venture Formation
Factors making it Possible to create a new venture:Government
Background
Marketing
Role Models
Finances

Types of START-UPS
Lifestyle Firm:- A small Venture that Supports the

owners and usually does not grow.


(This type of firm may grow after many tears having 30
or 40 employees with a revenue of about $2 million.)
Foundation Company:- A type of company formed from

research and development that usually does not go public.


(This type of firm can grow in 5-10 years from 40-400
employees and form $10-$20 million yearly.)

High-Potential Ventures:- A Venture that has high


growth potential and therefore receives great
investor interest and publicity.(Its growth is far
more rapid . After 5-10 years the company could
employ around 500 Employees, with $20-$30
Million revenue).
Gazelles:- Very high growth Ventures that has more
than 500 employees and has a annual revenue of
$50 & above .

Role of Entrepreneurship in Economic


Development
In Spite of the Importance of investment and innovation in
the economic development of an area , there is still lack of
understanding the Product-evolution Process.
A. Product-evolution Process:- This is the Process through
which innovation develops and commercializes through
entrepreneurial activity, which in turns simulates
Economic Growth.

Steps Involved in Product-Evolution


1. Recognition of social need
2.Initiation of technological innovation
3. Pressing towards invention
4. Development Phase(Modeling, Planning, Financing,
Manufacturing, Marketing)
5. Industrial Phase

B. Iterative Synthesis:- The intersection of knowledge and


social need that starts the product development process.
C. Ordinary Innovations:- New Products with little
technological change.
D. Technological Innovations:- New Products with
significant technological advancement.
Continue

Continued
E. Breakthrough Innovations:- New Products with some
technological change.
F. Government as an innovator:- A government active in
commercializing technology.
G. Technology Transfer:- Commercializing the technology
in the laboratories into new products.