EntrepreneurshipEnterpreneurs are the people with an idea to start a new company or which have business plan. Entrepreneurship is thus being taken as a process of discovering, evaluating and exploiting opportunities and create value. Entrepreneurial success is simply a function of the ability of an entrepreneur to see these opportunities in the marketplace, initiate change (or take advantage of change) and create value through solutions. A successful enterprenuel venture creates substantial wealth. Entrepreneurship has very high risk because of innovative ideas, the idea is totally based on initial market research and no one ensure that the plan would be successful or not. However, if idea got successful then it can grow rapidly and receives high returns of investment and profits.
Entrepreneurism has been found to be a vital part of the economy of the country. It helps in creation of new jobs, development of innovation and research, providing better way of doing task, creating wealth for individuals seeking business opportunities. Therefore, promoting entrepreneurship and enhancing the entrepreneurial dynamic of each country should be an integral element of any government’s commitment to boosting economic well being.
The most important factor under entrepreneurism is the level of perceived opportunity. After opportunity second important factor is motivation. If the person can't find enough motivation by the opportunity, then business will not be pursued. In other factors, financing is also the most important. Many business fails on start ups because of cash flows and resources. Venture Capital firm may help in financing that automatically help in increasing motivation level, because one level of motivation also increased by availibility of resources.
Entrepreneurship is an opportunity that can provide new and interesting challenges. The new challenges can become very rewarding as you work through them, not only financially, but on a personal level as well. It is very rewarding to accomplish something that others do not, and entrepreneurism can provide this chance. This job satisfaction is important to your self-worth.
Venture Capital:
As you know, new businesses called start-ups, are all private companies that aren't allowed to sell stocks or shares to the general public they have to find other ways of raising capital. Some very small companies are able to operate on money their founders have previously saved, but larger companies need to get capital from somewhere else. As everybody know, banks are usually risk-averse. this means they are unwilling to lend to new companies where there's a danger that they won't get their money back. But there are firms that specialize in finding funds for new enterprises called venture capital. Venture capital also called risk capital or start-up capital.
Venture capital means to provide money by investment companies known as venture capital firm for start up firms and small businesses that are seeking funds to cover operational expenses until profitability is achieved. The firm may also focus on rescuing established firms that are in financial trouble but demonstrate some potential for become profitable again after some retooling. It operate for the sole function of handling investments in business ventures that may be considered high risk. Although new companies present a high level of risk, they also have the potential for rapid growth and consequently high profits if the new business is successful.
A venture capital may be a small operation that works with a limited amount of seed money supplied by a few investors. In other instances, an investment company of this type may include hundreds of investors and have billions of dollar at its command. However, the size of the firm is not always indicative of the type of venture capital deals that the company will take on. A large venture capital firm may choose to devote a portion of its attention to start-ups along with funding major deals involving the restructuring and renewal of well established international business entities.
Some venture capital or risk capital companies use their own funds to lend money to companies, but most of them raise capital from other financial institutions, some rich people, who banks call high net worth individuals, and who we call angels or angel investors also invest in start-ups.
What sets a venture capital firm apart from other funding sources is that venture capitalists do not tend to be passive in their approach to the task. While many funding agencies will simply loan the money and expect nothing more than repayment according to terms, the venture capital firm will take an active interest in the setup, operation, marketing, distribution, and sales efforts of the funded company. Generally, the contract between the venture capital firm and the client receiving funding will specify the rights and privileges of the firm in regard to involvement in the day to day functions of the client.
One additional benefit the a venture capital firm often brings to the table is the ability to create new vendor relationships between clients of the firm. For example, Client A may manufacture an outstanding product, but does not have adequate distribution facilities. client B possesses excellent distribution technology and facilities and can take over that function at a price that will cut expenses for Client A. The venture capital firm introduces the two clients, who are then able to strike a deal. As a result, both clients experience a healthier bottom line. at the some time, the venture capital firm benefits from the healthier financial outlook of the two clients.
Success Story of Venture Capital and Entrepreneurship
Entrepreneurs looking for capital and ventures capitalists looking for good ideas are natural partners; but not necessarily loving ones. Although entrepreneurs and venture capitalists would appear to be (as they say) a match made in heaven, there is a natural tension that arises between them. Entrepreneurs want control over and maximum benefit from their ideas while venture capitalists want grab as much of the gold as they can for offering to put up the money. Entrepreneurs often think that venture capitalists get too much equity for fronting the money and venture capitalists often believe they get too little. However uncomfortable and adversarial that relationship, entrepreneurs need venture capitalists and venture capitalists need entrepreneurs. Ironically, successful entrepreneurs often become venture capitalists themselves.
Google is one of the most powerful search engine with more than fifty percent of the market share. The founders of google are Larry Page and Sergey Brin. It was started in 1996-97 in Stanford University when both of them were students there. They received startup venture capital of $100,000 in 1998 from Andy Bechtolsheim. In 1999, they received $25 Million in venture capital. This further bolstered their growth. The growth in terms of employees, search queries & revenues was always increasing. The primary focus has always been on search.
Over 100 Million searches were being conducted daily by 2000. They started their advertising programs adwords and adsense in 2002-03. They went public in 2004 with an initial public offering in USA and raised $1.67 Billion. They formed major partnerships with NASA & AOL in 2005. The google stock was added to S&P 500 index in 2006. The company employment crossed 10,000 employees in 2007. The graph of google has only been going up. Let us know more about the amazing story of this company.
Google, Inc. is listed on NASDAQ with symbol GOOG. The current share price is $444 as on September 6, 2008. Also on this date the market cap is around $140 Billion. Eric Schmidt is the CEO & Chairman. Larry Page remains co-founder and president, products and Sergey Brin remains co-founder and president, technology. The stock has been a front runner among tech stocks. But they have never given a dividend to shareholders.
References:
http://en.wikipedia.org/wiki/Venture_capital
http://www.quickmba.com/entre/definition/
http://www.gregwatson.com/entrepreneurship-definition/
http://en.wikipedia.org/wiki/Entrepreneurshipwww.oecd.org/dataoecd/44/50/44069838.pdf
http://www.oecd.org/dataoecd/44/50/44069838.pdf
http://www.slideshare.net/webgoddesscathy/cibc-presents-entrepreneurship-101-different-types-of-entrepreneurship-presentation
Entrepreneurism has been found to be a vital part of the economy of the country. It helps in creation of new jobs, development of innovation and research, providing better way of doing task, creating wealth for individuals seeking business opportunities. Therefore, promoting entrepreneurship and enhancing the entrepreneurial dynamic of each country should be an integral element of any government’s commitment to boosting economic well being.
The most important factor under entrepreneurism is the level of perceived opportunity. After opportunity second important factor is motivation. If the person can't find enough motivation by the opportunity, then business will not be pursued. In other factors, financing is also the most important. Many business fails on start ups because of cash flows and resources. Venture Capital firm may help in financing that automatically help in increasing motivation level, because one level of motivation also increased by availibility of resources.
Entrepreneurship is an opportunity that can provide new and interesting challenges. The new challenges can become very rewarding as you work through them, not only financially, but on a personal level as well. It is very rewarding to accomplish something that others do not, and entrepreneurism can provide this chance. This job satisfaction is important to your self-worth.
Venture Capital:
As you know, new businesses called start-ups, are all private companies that aren't allowed to sell stocks or shares to the general public they have to find other ways of raising capital. Some very small companies are able to operate on money their founders have previously saved, but larger companies need to get capital from somewhere else. As everybody know, banks are usually risk-averse. this means they are unwilling to lend to new companies where there's a danger that they won't get their money back. But there are firms that specialize in finding funds for new enterprises called venture capital. Venture capital also called risk capital or start-up capital.
Venture capital means to provide money by investment companies known as venture capital firm for start up firms and small businesses that are seeking funds to cover operational expenses until profitability is achieved. The firm may also focus on rescuing established firms that are in financial trouble but demonstrate some potential for become profitable again after some retooling. It operate for the sole function of handling investments in business ventures that may be considered high risk. Although new companies present a high level of risk, they also have the potential for rapid growth and consequently high profits if the new business is successful.
A venture capital may be a small operation that works with a limited amount of seed money supplied by a few investors. In other instances, an investment company of this type may include hundreds of investors and have billions of dollar at its command. However, the size of the firm is not always indicative of the type of venture capital deals that the company will take on. A large venture capital firm may choose to devote a portion of its attention to start-ups along with funding major deals involving the restructuring and renewal of well established international business entities.
Some venture capital or risk capital companies use their own funds to lend money to companies, but most of them raise capital from other financial institutions, some rich people, who banks call high net worth individuals, and who we call angels or angel investors also invest in start-ups.
What sets a venture capital firm apart from other funding sources is that venture capitalists do not tend to be passive in their approach to the task. While many funding agencies will simply loan the money and expect nothing more than repayment according to terms, the venture capital firm will take an active interest in the setup, operation, marketing, distribution, and sales efforts of the funded company. Generally, the contract between the venture capital firm and the client receiving funding will specify the rights and privileges of the firm in regard to involvement in the day to day functions of the client.
One additional benefit the a venture capital firm often brings to the table is the ability to create new vendor relationships between clients of the firm. For example, Client A may manufacture an outstanding product, but does not have adequate distribution facilities. client B possesses excellent distribution technology and facilities and can take over that function at a price that will cut expenses for Client A. The venture capital firm introduces the two clients, who are then able to strike a deal. As a result, both clients experience a healthier bottom line. at the some time, the venture capital firm benefits from the healthier financial outlook of the two clients.
Success Story of Venture Capital and Entrepreneurship
Entrepreneurs looking for capital and ventures capitalists looking for good ideas are natural partners; but not necessarily loving ones. Although entrepreneurs and venture capitalists would appear to be (as they say) a match made in heaven, there is a natural tension that arises between them. Entrepreneurs want control over and maximum benefit from their ideas while venture capitalists want grab as much of the gold as they can for offering to put up the money. Entrepreneurs often think that venture capitalists get too much equity for fronting the money and venture capitalists often believe they get too little. However uncomfortable and adversarial that relationship, entrepreneurs need venture capitalists and venture capitalists need entrepreneurs. Ironically, successful entrepreneurs often become venture capitalists themselves.
Google is one of the most powerful search engine with more than fifty percent of the market share. The founders of google are Larry Page and Sergey Brin. It was started in 1996-97 in Stanford University when both of them were students there. They received startup venture capital of $100,000 in 1998 from Andy Bechtolsheim. In 1999, they received $25 Million in venture capital. This further bolstered their growth. The growth in terms of employees, search queries & revenues was always increasing. The primary focus has always been on search.
Over 100 Million searches were being conducted daily by 2000. They started their advertising programs adwords and adsense in 2002-03. They went public in 2004 with an initial public offering in USA and raised $1.67 Billion. They formed major partnerships with NASA & AOL in 2005. The google stock was added to S&P 500 index in 2006. The company employment crossed 10,000 employees in 2007. The graph of google has only been going up. Let us know more about the amazing story of this company.
Google, Inc. is listed on NASDAQ with symbol GOOG. The current share price is $444 as on September 6, 2008. Also on this date the market cap is around $140 Billion. Eric Schmidt is the CEO & Chairman. Larry Page remains co-founder and president, products and Sergey Brin remains co-founder and president, technology. The stock has been a front runner among tech stocks. But they have never given a dividend to shareholders.
References:
http://en.wikipedia.org/wiki/Venture_capital
http://www.quickmba.com/entre/definition/
http://www.gregwatson.com/entrepreneurship-definition/
http://en.wikipedia.org/wiki/Entrepreneurshipwww.oecd.org/dataoecd/44/50/44069838.pdf
http://www.oecd.org/dataoecd/44/50/44069838.pdf
http://www.slideshare.net/webgoddesscathy/cibc-presents-entrepreneurship-101-different-types-of-entrepreneurship-presentation
very well explained but I would like to add in venture capital that these firms provide not only finance to the start-up but they actually own the equity as they provided capital so therefore they also have their inputs in operational processes of the companies in which they invest.
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