The entrepreneurial ecosystem is the social and economic environment which affects the regional or local entrepreneurship. It is the collective and systematic nature of entrepreneurship. The entrepreneurial ecosystem can be categorized into six main domains, which are as follows:
- A conducive culture
- Facilitating policies and leadership
- Availability of dedicated finance
- Relevant human capital
- Venture friendly market for products
- A wide set of institutional and infrastructural supports
New venture creation is the process of building insights and skills in the tools and processes to create a new business venture. An entrepreneur identifies new business opportunities, research about various aspects of it and develops a model. To implement the new model, management is required to acquire various resources and formulate strategies to implement it.
The business model is the planning of a company to plan the operations of the company for profit maximization. It requires the identification of products or services that will be sold in the target market. A primary component of the business model is a value proposition. The model of a new enterprise must cover the projected startup cost and sources of finance, target market, and customer base, strategies to compete with the competition and marketing. The proper projection of expenditure and revenue will be made to identify key areas of performance and put efforts into it.
Marketing is the management of relationships of a business enterprise with other related parties generally customers to satisfy them. It is actually the process of satisfying needs and wants of customers through the exchange process. It starts with Research conducted in the market before the production of goods and services and continues up to after sale services.
PR (Public Relations) is the practice of managing the relations with different stakeholders of the company or an enterprise through proper communication. It may include an organization or individual which gain exposure to their audience by emphasizing the topics of public interest. A PR professional has to work with an organization, company, government or individual to cultivate the story of a reputation of clients, ideas, product positioning, and all accomplishments.
Entrepreneurial finance is the process of making various decisions related to value and resource allocation to the newly established venture. It will require decision making of various concerns related to finance which are as follows:
- How much money is required for the company?
- How much money can be raised?
- When money should be raised?
- For whom the money will be raised?
- What is the actual valuation of the startup?
Managing risk is the process of identification, evaluation, and prioritization of risk factors of the business venture. Management of an organization identifies and take various control measures to minimize, monitor and control risk associated with different resources and elements of an organization. The potential factors that can impose a risk to business organizations are uncertainty in the financial market, the threat of failure, legal liabilities, credit risk, etc.
The pricing structure is the strategy of the company to set the pricing of products and services offered. It includes the price of the product, discount rate other offers or complementary products. The major strategies of pricing are as follows:
- Market penetration pricing
- Price skimming strategy
- Competition pricing strategy
- Product line pricing
Crowdfunding is the strategy of acquiring small portions or amount of funds from a large number of individuals or organizations to invest it in the new venture. People or organizations are contacted through social media. It also increases the potential of the company to expand its activities and venture by expanding the pool of investors.
VC investment is the amount of funds that investors provide to the startup companies, in which they see the potential. It is very risky for investors to invest in the new venture because it does not have any operating history.