BUSINESS CREATION

Business Creation and Growth Process

Business Creation and Growth Process

Introduction

The main purpose of this paper is to make discussion on the concepts and theories of the venture's life cycle, and discuss the impact of successful ventures in balancing the entrepreneurial characteristics with the management styles. The paper is a reflection of different aspects of entrepreneurship and the growth process. Entrepreneurship is basically a function of new business ventures development, or giving rise to the existing business through using the intelligence and abilities. Entrepreneurs have different characteristics mainly the risk bearing abilities. Entrepreneurs bear the risks and through this they bring new opportunities for their business and bring suitable changes. Entrepreneurs have a significant role in the field of business and commerce, and they are the basic reason of increase in the economy of different countries (Brandt, 2004, p. 36). It is thought that a successful entrepreneur is one that has enough money and luck. But generally the success of an entrepreneur is a result of proper planning, development of ideas and risk and creativity management.

Discussion

There is a maturation process behind the successful ventures commonly known as life cycle. The beginning of the venture life cycle is maturation stage, and it goes towards the growth stages, and it finishes at the maturity stage. The venture becomes mature when it receives profits and profits and cash flows. There are five lifecycle maturities as discussed below:

Development Stage

Startup Stage

Survival Stage

Rapid Growth Stage

Maturity Stage

1) Development Stage

This is the stage when the entrepreneurs take the idea of developing the venture. This is the time, when the entrepreneurs make discussion from their acquaintances and the business partners to go for the ventures.

2) Start-up Stage

This is the second stage of venture's life cycle. This is the stage of development and organisation of the venture. This stage normally takes the time of almost -.5 to +.5 years. In some cases the resource acquiring process takes time of almost less than one year.

3) Survival Stage

This stage is normally from +.5 to +1.5 years. This is the stage of the growth of revenues from the ventures. In this stage, the revenues cover most of the expenses. Companies cover these gaps by going for the option of borrowing. Companies also give chance to other investors to make investments in these stages.

4) Rapid Growth Stage

This is the stage of the rapid growth of revenues and cash flows. The cash inflows from operations grow rapidly in this stage, and they exceed the cash outflows. Thus, it is a very beneficial stage for the entrepreneur's ventures.

5) Maturity Stage

This is the final stage of the venture's life cycle. In this stage the venture receives the cash flows and revenues, but their growth rate becomes slow and steady.

Since born globals are often first to market and operate in emerging industries, their behaviors are not consistent with the oligopolistic reaction theory that views firms' decision to internationalize as a response to the international moves of their competitors (Arenius, 2005, ...