in order to run the business, Steve would need to increase his technical skills with a computer, while for raising the finance for the business he has the option for selling off his current business and taking on a small business loan for financing establishment expenses and operations of the business in the lunch phase.
Entrepreneur is a person who takes risk to exploit opportunities and generate high revenues from such ventures through the creative use of innovation. "Entrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment or provide value for some product or service" ('Definition of Entrepreneurship Today') Small business are usually established by people to generate a steady income and support themselves and their families, however an entrepreneurial business is one in which the entrepreneur takes risk to exploit the opportunities in the market and use innovation in a creative manner to make his business succeed. The type of business which is going to be run by Steve is going to be an entrepreneurial business as he would be providing e-books as well as hardcopy books both new and used as well as a trading facility through the online internet medium to the customers in the market.
Venture Ideas/ Opportunities
Through the analysis of the industry where is Steve was previously operating in, it has been observed that he has the following options pertaining to starting a new business venture.
1. Shut down the retail bookselling business and launch and online retail option for new and used books.
2. Start a business in another field
3. Sell his business to the large retailers and competitors in the market and invest the money in buying shares of the other successful companies
Of the above mentioned business options available to Steve, the first option pertaining to the commencement of an online bookstore business by Steve is the most profitable in the long term as it if strategy invested in, the business can compete with the large scale book retailers in the market while over coming the barriers of entry presented by the likes of Angus & Robertson and Dymocks. Another reason as to why this option has been chosen is because of the experience that Steve has in the book retail market and the contacts that he has established over the period which can facilitate his establishment and operation of the online book retail business.
The different types of competitive strategies that are normally used by entrepreneurs pertain to being a defender, prospector, analyzer and reactor. The defender strives to maintain a prominent position in the market with centralized and traditionally hierarchical organization. The prospector on the other hand brings new products and services in to the market and focuses on being innovative. The analyzer copies successful innovations and builds on them to create a position while a reactor tends to have strategies which are well defined but obsolete. (Allen, 1999). The strategy which is going to be used by Steve for his new business would be analyzer strategy whereby he would be building on present innovations