BUSINESS MODEL AND ENTREPRENEURSHIP

BUSINESS MODEL AND ENTREPRENEURSHIP

Business Model and Entrepreneurship

What is the business model?

A business model is the "way of doing business," pun intended, by which a company generates income. It describes in detail how the company makes money by clearly defining its place in the value chain. The business model is built from various components of the business, which include entrepreneurship , strategy , economics, finance, operations, competitive strategy , marketing strategy and sustainable growth .

Simply the business model describes how the business is positioning itself in the value chain within their industry and how it's going to provide for themselves, ie, make a profit.

In the most general terms, the business model - a method of sustainable business.

Importance of the new business model

Many Western multinationals expect to find most of its future growth in emerging economies. However, the new business model tries to take the opportunity to reduce costs and accepting relentlessly margins close to zero. Among the essential tools for any entrepreneur, the business plan ("business plan") is fundamental to the long-term success of a startup, especially when it comes to crucial fund-raising from private investors. This is the key document on which rely most investors, bankers, and partners, associates, to evaluate the "future" of the company, its strategy, and its objectives. The business plan is therefore the primary indicator of the ability of a young company to generate revenue. (www.gemconsortium.org).

With technological advances in communications, many companies are faced with the obstacle of how to operate your business and therefore require knowledge of a number of issues that are involved in the process, it follows that today pay close importance to the business model as it becomes vital to attract new investors or partners.

Critical Issues Facing Small Business

The study of the National Federation of Independent Business Foundation research addressed the issues that small business owners consider the most problematic in their work. No wonder, on top is the problem with health insurance, but liability insurance as well. Second are the business costs and financing difficulties of small businesses, focusing on the cluster of taxes and worker's compensation (http://www.businessmodelgeneration.com).

Problems such as incompetent employees, problems with customers and suppliers and the inability to organize their time between work and family are also considered important, but with much lower class, according to the survey. While most small business owners do not have the time or interest ...