ASSIGNMENT

Assignment

Assignment

Fundamental of Entrepreneurial Behavior

The functioning of social production in a business is carried out in appropriate forms, corresponding to a market economy. As you know, entrepreneurship - is proactive activities aimed at achieving commercial success (profit), and the entrepreneur - the person who owns the company (firm), or an authorized manager on behalf of the property owner to manage the affairs of the enterprise.

In a large production of the differentiation of the owner and entrepreneur, the basis of separation of functions is the separation of capital ownership and capital functions.

This in itself is made up of business a certain type of economic behavior. It is characterized by innovation, efficient use of resources, the willingness to take risks, and flexibility in application and use of processes aimed at making a profit and personal income. Entrepreneurship encompasses industrial, commercial and mediation, commercial and procurement, innovation, consulting and operations with securities.

For the effective functioning and implementation of active business activities of business units in a market economy requires appropriate conditions are met:

Maximum freedom of economic activity of free producers;

Full responsibility for the results of their economic activity in the equal rights of all kinds of property;

Competition of producers as a factor stimulating the production of goods and services;

Free pricing in the market;

Openness of the economy, its integration into the global economic system, the right entrepreneur to outside - economic transactions.

Entrepreneurs tend to have ample opportunity to choose forms of activity involving the production of producers on the basis of wage labour.

As already noted, the social production is a complex integrated system that includes a variety of legal and organizational structural units. The basic unit of business activity within the framework of social production enterprise acts (the firm). It is formed on the basis of different forms of ownership: private, state, rental, cooperative and in reality serves as the firm, group, business association, joint stock companies, farmers and family farms (Bouwen, 1990: 637-649).

As far as the most important part of the process is concerned from the Entrepreneurial perspective, Identification and evaluation of opportunity is the most critical one. To identify an opportunity and analyze its potential in terms of market needs, competitors and market potential, and product life-cycle is the most essential part of the business. It is important the entrepreneur to test his/her business idea/concept with potential customers, asking if they would buy the product or service, doing some research to find the market size and whether if it is growing, stable or stagnating, finding out about his/her competitors strengths and weaknesses, threats and opportunities (Steyaert, 2004: 179-196).

Most important element from an Entrepreneurial perspective

As far as the most important part of the process is concerned from the Entrepreneurial perspective, running the firm is the most vital one. Running the company can seem to be the easiest part of the entrepreneurial process, since the opportunity has been identified, the business plan developed and the source of funding provided. But running a company is not as straightforward as it ...