In recent years, internet is more and more popular and closely to people in a variable fields. Internet was used as a tool for helping them to connect and seeking information or advising what they need. Almost entrepreneurs also use this tool as a part of creating successfully for their business but sometimes it also creates some problem. Some negative impacts of internet on the entrepreneur venture such as security or lost productivity that make the entrepreneur take a lot of problem. However, almost impacts of the internet on entrepreneurial ventures is good such as raise the capacity of accessing information through internet, increase communicate capability among entrepreneurs and others people, help to achieve the target specific venture firm, increase the efficiency of the submission process and specially support marketing strategy.
Impact of the internet on entrepreneur ventures:
"Internet is a worldwide network of networks. It is also the network of networks that connects millions computers (called hosts). The Internet is the virtual space in which users send and receive email, login to remote computers (telnet), browse databases of information (gopher, World Wide Web, WAIS), and send and receive programs (ftp) contained on these computers." (linux.about.com, 2010)
Negative impacts of internet can make the entrepreneur ventures have to face the risk such as security leak, hence they must find the ways to control and limit these problems. However, it is no doubt that internet has much more positive impact on the entrepreneur venture. As I mention below, I will discuss about the impact of internet on entrepreneur ventures and illustrate with some example to demonstrate the benefit of using internet.
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Firstly, the most effective impact of internet is the security of the information. Many businesses conducted online get the trouble and it becomes majors concerns. There are a number of cases which the transactions are able to become unsafe because the information can be leaked out when entrepreneur use internet in taking transaction. An example is in day by day transactions, major security threats such as hackers, virus, or e-terrorism. Breaches of security such as thefts of data and information on several occasions are able to lead investors or customers to question the safety of doing business online, which can hurt business further by lowering confidence levels. However, internet can push the ability to quick access more information of the entrepreneur ventures. The rich and sufficient of the internet help the businessman to search and find any information and data that are being supported for their plans. As can be seen, internet creates the wide environment business for all businessmen and it innovate the businessmen to search for business opportunities or investors whose are the same ideas and goal in business. Long times ago, when the internet have not yet development, the entrepreneurs had to waste a long time to find the information that might support for their business through books, newspaper, radio and others sources, however, these information might be not enough. Moreover, they just only collect information in a small area such as in their own country or several countries around them. The limitation of the information made many companies not able to connect and update the development of the world, hence the economic was limited. Today, basing on internet, the entrepreneurs can find and seek to whatever they want such as information of the competitors, update news of the business environment in the world, thus it is easier for entrepreneurs to catch up with orientations of the world market. Hence, if the entrepreneur can control the data security system, backup data and training employees, internet can support to the entrepreneur take the full advantage of it.
Secondly, another impact of internet on entrepreneur ventures is the employees' productivity. As can be seen, the entrepreneur ventures often worry that using the internet at work will reduce the jobs performance because their employees do not focus on their job or neglect their duty in the working hours. It is a fact that workers spend a substantial amount of their workday replying to personal email, web surfing, following live sporting events and so on. Even for scenarios in which employees are not required with computers, the availability of wireless internet on phone and other mobile devices creates a constant swarm of distraction that can cut into work time. But it is undeniable that internet can enhance communicate capability among entrepreneurs, their staffs and their partners. Some companies are using the internet to make indirect connections with their customer or intensify relations with some their trading partners for the first time. Using the internet technologies and access options has expanded the capabilities of laptops, desktops and workstation. Thus, businessmen are able to communicate with each other via email, office intranet, local area networks, install message programs and wide area networks. In addition, internet is always up to date and it requires users improve themselves to control and taking full advantages from this tool. The entrepreneur ventures exchange news and information with their employees and their partners through internet such as information about analyse of finance, new potential competitors, the strategies to develop their product, the view of the others businessmen or the experience and strategies of the success businessman and so on. After that, the entrepreneur venture might be collect this information to evaluate the global market and fix the best strategy for their business. Therefore, internet makes entrepreneurs dynamic and catches up with changing of the world.
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Thirdly, internet is ability to affect on achieving the target specific venture firm. The information from internet allows a better understanding of the requirement connect with venture planning as well as providing a window into what the venture community perceives. The businessman can easily discover the potential market or "hot" areas in which to invest. An example is venture capitalist. The seekers submit their business plan to companies where they have the best chance of receiving funds. The ventures capitalists receive the types of applications and choosing what they are most interest in. Therefore, the entrepreneurs have a much larger selection of firms to work with, a better chance for a successful investment and a better in the relationships. In addition, the business plans online and applications can be accepted by some venture firms. The venture capitalist often considered business plans brought to their attention through industry contracts or previous clients in traditionally. But now these limitations are changing because the venture firms use a web presence to open their doors to all entrepreneurs. Besides, the entrepreneur uses email to exchange executive summaries of business plans. All of partners can share a common mail server and it also allows people to route plans quicker because they can work at work or at home or even to read submissions when they are on the road. Internet also provides the system to support business. It allows members easy access to the pool of sources; it limited the resources available to outsiders and non-members. Moreover, the entrepreneur use internet to research reports, information on who is working on what technology, news and so on. Internet also allow the entrepreneurial ventures to use personal resources to stay abreast of what is happening, providing a quantum leap in productivity.
Finally, internet also impact on the process to build image and reputation for the business. The entrepreneur ventures use their own website as a tool to closer with the world market. Internet helps customers to connect with the website of the company to find whatever they needs and wants. Website with its ability to create and display colourful graphic, sound, animation and video allows companies to compete and surpass with their large rival's Web presence. In particular, many small businesses with the limitation of capital and their power, they are not ability to match their marketing efforts of their large competitions, thus, using the website through internet that it is the best way for them to achieve the great equalizer. A business with a proper marketing strategy in place, it uses the web to expand its ability to provide customer service at minimal cost. The potential customers in all over the world just only need to click on the website and they can know about the product or services of the company. In consequence, the entrepreneurs do not necessary to waste a lot of money for advertising in other media such as television or radio. Besides, products can be sold or ordered 24 hours a day, seven days a week, and 365 days a year without the need for support staff. Hence, it can help to reduce the extra costs that are associated with ordering. In addition, using website allows entrepreneurs to support both existing and potential customers with meaningful information in an interactive rather than the passive setting. Company might display what they want to advertise for their customers such as background of the company and its history, kinds of products and services, benefit that customer can achieve and video of its product and service in use and so on. On the other hand, customers can collect information about a product or service, have their question answered, and place order easily and so on. One of the examples that internet and website help entrepreneur to expand the business is the case of Jill Anne Partain.
She has a company that make unique handbags, and she received $500 as a college graduation gift. She chooses Lexington in Virginia instead of New York to locate her business and using her company's website to sell handbags. Ignorance a lot of the ideas which Partain think that they would be the ideal location for her business, she choose website. Partain explained since she was selling over the web, it did not matter where her manufacture is. Now, her company turn out about 5000 handbags a year and more than $ 1.3 million in sales from one of those old converted Virginia textile mills.
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It is easily to realize that Partain have a big success and benefit when she use website as a best strategy to connect her product with her customers. She set up her company in a small city where not a fashion capital is. However, basing on internet and website, a lot of shopaholics are still attracted and persuaded by her handbag's design. Thus, the amount of handbags and profit that she achieves, are more and more increasingly.
In conclusion, the impact of the internet on the entrepreneur venture is very enormous and it plays more and more important in the improvement of the business in the global economic. Although using the internet also have many problems, nevertheless, if the entrepreneur venture know how to solve these problem, they can solve their jobs better; information can be update faster, people can connect easier. For that reason, if the entrepreneur ventures know how to control and use internet, they will achieve great success in their business.
2) Discuss the importance of environmental issues and opportunities that can be tapped by entrepreneurs.
The importance of entrepreneurship to any economy is like that of entrepreneurship in any community. Entrepreneurial activity and the resultant financial gain are always of benefit to a country. Therefore, every country in the world has entrepreneurs, people who are creative and willing to take risks. But not all economies encourage their entrepreneurs to succeed in developing new products, ideas or services and getting them to consumers. An economic system must provide incentives that encourage entrepreneurs to risk trying something new. The most important incentives for entrepreneurs are the opportunities and environmental factors.
Most entrepreneurial firms are started with finding the opportunities. The opportunity is very importance. It is a favourable set of circumstances that creates the need for a new product, service, or business idea. An opportunity has four essential qualities: it is attractive, durable, timely and anchored in a product, service or business that creates or adds value for its buyer or end user. The entrepreneurs usually use three ways to identify an opportunity. There are observing trends, solving a problem and finding Gaps in the marketplace.
Entrepreneurial opportunities as situations in which new goods, services, raw materials, markets and organizing methods can be introduced through the formation of new means, ends, or means-ends relationships. These situations do not need to change the terms of economic exchange to be entrepreneurial opportunities, but only need to have the potential to alter the terms of economic exchange. In addition, unlike optimizing or satisfying decisions, in which the ends that the decision maker is trying to achieve and the means that the decision maker will employ are given, entrepreneurial decisions are creative decisions.
One of the important opportunities is window of opportunity. When the window of opportunity open, it can help a firm enters a new market. As the market grows, firm enter and try to establish a profitable position. The computer, for example, paved the way for the Internet, which, in turn, paved the way for search engines and software to explore the World Wide Web, which, in turn, created a new way for people to shop and obtain valuable information, and on and on. A wealthy economy is one teeming with superior contributions and the entrepreneurial opportunities created by them.
Opportunities can also be classified on whether the changes that generate them exist on the demand or the supply side. In general, the entrepreneurship literature implicitly focuses on supply side changes. For example, most discussions of opportunity concern changes in inputs, ways of organizing, production processes, or products. But changes in demand alone can generate opportunities. Customer preferences influence the allocation of resources because producers need to respond to the preferences and purchasing habits of consumers. Thus, demand changes from exogenous shifts in culture, perception, tastes, or mood can open up opportunities, as in the case of demand for American flags in response to a terrorist attack. The opportunity is created if the increase in demand outpaces investments in production capacity, generating opportunities to add more capacity, perhaps on more economic terms. In addition, growing markets might create new niches as well as the opportunity to specialize
In fact, the entrepreneurs improve established products and services, or they create new ones. With them, the opportunities that can find in the recent business are very important. Therefore, they must use every condition to develop these opportunities. For example, the discovery that seaweed could be sold as a food in the United States as well as Japan generates the opportunity for entrepreneurial activity, as did the discovery that oil provided a better fuel than many other raw materials previously discovered. In brief, new methods of production, such as the assembly line or computer-aided drug discovery, have provided opportunities for entrepreneurial profit.
The creation of a new good or service can create an opportunity for entrepreneurial profit, as is the case when the development of accounting software or a surgical device makes possible a product or service that can be sold for greater than its cost of production. However, as we have seen from the development of the Internet, new modes of organizing that do not require bricks and mortar locations also generate opportunities for entrepreneurial profit.
Opportunity conditions are defined by the amount, variety, and source of feasible solutions. For example, some industries may benefit from advances in basic scientific understanding, such as biotechnology or semiconductors, while others may not. Opportunity conditions are most favourable when for a given investment the likelihood of achieving innovation is high and when it is possible to use a single development for multiple solutions.
When study how economic forces affect opportunities, it is important to evaluate who has money to spend and who is trying to cut costs. As more teens enter the workforce, demand increases for products they buy, such as designer clothing, mobile phone, and concert tickets or backpacking tour for instance, took off so rapidly in part because teenagers have grow levels of cash to spend. In additional, Economic forces affect consumer's level of disposable income. When income is high, people are more willing to buy products or services that enhance their lives. For examples, In Vietnam, the economy is developing. There are many rich people. They spend a lot of money to buy big house, luxury car or clothes of famous brand name. These are the opportunities for entrepreneurs invest or produce more quality products to service customers in there. Besides that, an increase in the number of women in the workforce and their related increase in disposable income is large responsible for the number of boutique clothing stores targeting professional women that have opened in the past several years.
Another trend that is affected by economic factors is pressure on firms to improve their economic performance. Furthermore, many entrepreneurs have taken advantage of this trend by starting firms that help other firms control costs. In the chemical industry, for example, ChemConnect (founded in 1995) provides an online marketplace to make it less expensive for chemical companies to buy and sell chemicals on a global scale. Moreover, an industry might face macro-level inefficient allocation of resources, such as investments in large-scale production facilities that serve markets with cyclical demand. These cyclical enterprises are frequently accompanied by rising demand and poor performance, are typically profitable only at peak points in the industry cycle, and therefore signal that a superior business model or production plan may be more profitable.
An understanding of the impact of social forces on trends and how they affect new product, service, and business ideas is a fundamental piece of the opportunity recognition puzzle. For example, the Sony Walkman was developed not because customers wanted smaller radios, but because people wanted to listen to music while on the move- while riding the subway and while exercising. Besides that, Shifts in societal demographics also generate and close off opportunities. For example, the aging of the baby boomers generates opportunities for reallocation of resources from products and services to children to products and services for the elderly and the growth of the Hispanic population in some areas of the United States has produced opportunities to start Spanish radio stations. Additional recent social trends that allow for new opportunities are the following:
Family and work patterns
The aging of the population
The increasing diversity in the workplace
The globalization of industries
The increasing focus on health care and fitness
The proliferation of computers and the Internet
The continual increase in the number of cell phone users
New forms of music and other types of entertainment
The advances in technology frequently dovetail with economic and social changes to create opportunities. Many e-commerce sites are technological marvels, allowing a customer to order products, pay for them, and choose how quickly they are shipped. But again, it is not so much the technology that makes e-commerce attractive. The ultimate reason most people buy online is because they are busy and prefer to shop when they have free time rather than being restricted to traditional store hours and store location.
Another aspect of technological advances is that once a technology is created, products often emerge to advance it. For example, RealNetworks was launched to add video capabilities to the Internet, which took the Internet to the next level. Moreover, the technological advances often provide opportunities to help people satisfy basic needs in better or more convenient way. In many areas people's needs don't change over time. For instance, people who share have always wanted to minimize the number of nicks and shaving time and get as close a shave as possible. These and other shaving-related desires will probably never change.
Political Action and Regulatory Changes:
Political and regulatory changes also provide the basis for opportunities. For example, new laws create opportunities for entrepreneurs to start firms to help companies comply with these laws. The exercise of government power influences the volume, distribution, and types of opportunities available. For example, government actions to manage the macro-economy, such as efforts to change the money supply or interest rates influence entrepreneurial opportunities. Similarly, regulatory intervention has altered the structure of industries thereby creating opportunities for new entrants. Anti-trust and deregulation of industries by the United States Government has created opportunities in industries such as telecommunications, airlines, trucking, railroads, banking, and natural gas. Besides, in the electric power industry, for example, government actions have influenced the variety and amount of entrepreneurial opportunities. In that industry, federal regulation has (1) changed the market structure; (2) created markets through the establishment of purchasing guidelines for alternative power producers; and (3) regulated returns on capital.
Political change also engenders new business and product opportunities. For instance, global political instability and the threat of terrorism have resulted in many firms becoming more security conscious. These companies need new products and services to protect their physical assets and intellectual property as well as to protect their customers and employees.
The purpose of this part was to clarify the role of opportunities and environmental issues in the entrepreneurial process. It helps us make the successful business in the future. Besides that, finding the opportunities and evaluating the environment factors also help us to choose the perfect strategies to do business.
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Barringer, Bruce and Ireland, Duane (2008) Entrepreneurship - Successfully Launching New Ventures, 2nd edn, Pearson International.