Entrepreneurship scholars informs that about 50 percent of small businesses closes within the first year in operation. Some scholars claim that non-entrepreneurial strategy may be a contributory factor for this failure. When the majority of small business-owners is resource-constrained, how and with what resources individuals build strategy for successful business entry?
The one and only success factor is the team! This is the most important resource. Within the team the success factor is "cooperative behavior and trust " between the members. Next is a deeply understanding of the business model. That means that the team is busy on market monitoring and improvements of the business model at all times.
Cheers Arno
The one and only success factor is the team! This is the most important resource. Within the team the success factor is "cooperative behavior and trust " between the members. Next is a deeply understanding of the business model. That means that the team is busy on market monitoring and improvements of the business model at all times.
Cheers Arno
Thanks Arno for your clever answer.
However, my explanation is on small businesses. These businesses vary in sizes, objectives etc. Therefore, strategies also vary. From your answer, i could understand the nature of small businesses in Europe where economy is stable, safety nets are present, and government is creating conducive environment for business. In contrast, situation differs in developing countries, particularly small economies. Similar to small businesses, these economies have no market power to influence prices. Majority of economies are dual and subsistence in nature. Under such situations entrepreneurial strategies are developed by owner-manager or few people around him. Business model is in the mindset of the entrepreneur and is tacit.
Hi,
I think that your network of relationships is very important when you are an entrepreneur and want to enter a segment of market. This network may involve bankers or capable investors, others big companies interested in the promotion of the product or service abroad, consumers (crowdfunding), suppliers , and so on. As for me, the stronger your network of partners , the easier it will be to succeed even if some difficult moments are to be mastered. When you belong to a cluster, it is an advantage also.
Dear Patrick,
Your are correct. But it could be more accurate if you added strength of the network.
Upananda
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