■ Indian Journal of Commerce & Management Studies ISSN – 2229-5674

PROMOTION OF VENTURES BY THE ENTREPRENEURS IN THE

MODERN ERA

Ashish Mathur Dr. Meeta Nihalani

Associate Professor, Head,
Department of Management Studies Department of Management Studies
Lachoo Memorial College of Science & Technology, J.N.V. University, Jodhpur, Rajasthan, India
Jodhpur, Rajasthan, India

ABSTRACT

The concept of entrepreneurship has wide range of meanings. On one extreme end, the
entrepreneur is a person with high aptitude to take changes and on the other hand,
entrepreneur is a person who takes economic activities for himself. The concept of
entrepreneur venture differs from the small scale business in this the amount of wealth
created is more and the speed of wealth created is high. The risk associated with the venture
is high and is designed by the innovative abilities of the entrepreneurs. The entrepreneur is
a person with high aptitude for changes and he works for himself. The venture capital has
significant benefits and the venture back companies generally grow at a faster and
accelerated pace. With venture capital in place, customer, supplier’s staff and even the
banks have higher confidence. The basic aim of the paper is to analyse the potential
opportunities to build the ventures by the entrepreneurs so to design the world of creativity
by his innovative abilities.

Keywords: Venture, Creativity, Promotion, Opportunity Analysis.

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Introduction:
The venture capital is key to unlock the future wealth. The venture backed entrepreneurs have
considerable credibility in the business and the promotion of entrepreneur is geared to higher levels... The
promotion of venture involves four elements, first is discovery, second is investigation, third is assembling
and fourth is financing. The promotion is the process of creating specific business enterprises. The
aggregate of activities contributed by all those who participate in building up the business constitute a
promotion. The promotion may be defined as a discovery of business opportunities and the subsequent
organization of funds properly into a business creation for the purpose of making profits. The promoter is
the person who commits to build and operate the industries, in the context of given scheme and takes
necessary steps to fulfil this objective. Venture is the lifeblood of any economy giving the employment,
economic growth and the benefits of increased standards of living to the people. The basic shape of the
society in terms of development of infrastructure and the other connecting facilities is also decided by the
success of entrepreneurs. The promotion of ventures impacts the society in terms to build the base for the
comfortable lives as there is convenience and connectivity developed due to the development of business.
To start a new startup company or to bring a new product to the market, the venture may need to attract
financial funding. There are several categories of financing possibilities. If it is a small venture, then
perhaps the venture can rely on family funding, loans from friends, personal bank loans or crowd funding.
The venture capital financing process can be distinguished into five stages;
1. The Seed stage
2. The Start-up stage
3. The Second stage
4. The Third stage
5. The Bridge/Pre-public stage
The stages can be extended by as many stages as the VC-firm thinks it should be needed, which is done in
practice all the time. This is done when the venture did not perform as the VC-firm expected. This is
generally caused by bad management or because the market collapsed or a bit of both.

Roadmap to start a New Business:

When a business is established on an idea, this idea would generate a kind of an enterprise which
will be built on the basis of the determination of the ownership concept. The objective and goals that will
decide the basic concept of the initial contracts. After determining this, the location, after getting the
location done, do the financial planning and prepare a sound organizational structure and then complete
the basic legal formalities. A good consultancy organization can assist you to build up a plan with an
expertise help. After getting the expertise help, the entrepreneur can undergo for a training program also.
The choosing a business structure, involves a lot of legal formalities, the structure is chosen according to
the tax advantages, this can be the sole proprietorship, general partnership and joint ventures, corporations
and limited liability company.

Literature Review:
Stinchcombe (1965) argues that new organizations face substantial liabilities of newness. These
liabilities lead to higher failure rates of new firms compared to older ones. He suggests that new firms
have to define new roles and tasks, which is associated with high costs in time, temporary inefficiency,
worry, and conflict. They are also challenged to create exchange relationships, though they lack the
reputation, legitimacy, and experience of established firms, and must rely on interactions between
strangers.

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■ Indian Journal of Commerce & Management Studies ISSN – 2229-5674

The literature on entrepreneurship offers various definitions of the term “new ventures” (see
Fallgatter (2002). This paper focuses on new ventures in a Schumpeterian sense, i.e., we look at
independent. New firms that are based on some kind of “new combination” such as an innovative
technology, process, business model, or product. However, many new firms are based on “traditional
combinations” (e.g., architects). As they share some of the discussed challenges in marketing with the
former type of firms (e.g., limited financial resources), our review of the literature will in parts be
applicable to them as well. Hannan/Freeman (1984); Romanelli (1989); Robertson/Gatignon (1986).
Freeman/Carroll/Hannan (1983). Also see research by Brüderl/Schüssler (1990) proposing a “liability of
adolescence”. Aldrich/Auster (1986). resource scarcity, the majority of new firms have problems in
raising capital Resource scarcity makes small firms vulnerable, as their ability to sustain economic
downtrends is limited. It is also likely that they encounter critical gaps in required skills due to lower skill
diversity and disadvantages when competing with larger firms for employees. And there is less slack
within a small organization that could be used for innovative purposes or training. Empirical findings in
the area of small business show that smallness is negatively correlated with survival rates.
However, small firms also have some advantages over larger firms. In small firms processes are
more flexible, communication is more direct, and red tape is rare. Thus, small firms tend to arrive at
decisions faster than do their larger counterparts, and can act in a speedier, nimbler fashion when
discovering opportunities in the marketplace.
Liabilities of newness and smallness are exacerbated by problems of uncertainty. Uncertainty is
both an unavoidable aspect of entrepreneurship and of a valuable opportunity in that it serves as a basis for
asymmetrical perceptions among actors. Profit comes when a new venture capitalizes on an opportunity
that is not obvious to others or is inaccessible to others. When we look at them in this light, entrepreneurial
projects can be thought of as real-life experiments in which hypotheses on the utility of an innovative
combination of resources are tested vis-à-vis existing resource combinations and other innovative
approaches. Ventures that create new combinations of resources might replace less efficient or less
effective solutions, thereby changing the competitive structure of the industry and causing turbulence.
Most notably, Richard Cantillon concluded in one of the earliest theories on entrepreneurship (1725) that
merchants – i.e., entrepreneurs – are risk takers who commit to certain costs without knowing at what
price they will be able to sell.
The early 20th century with the works of Joseph Schumpeter, who introduced innovation and
newness to the concept of entrepreneurship, thereby raising several key issues in entrepreneurial
marketing. For Schumpeter, the marketing of innovative products and their market success vis-à-vis
competitive offerings constituted important parts of entrepreneurship. He defined the entrepreneur as an
innovator who induces change in the marketplace by carrying out so-called “new combinations”, like
selling innovative products to an existing market or opening completely new markets. Entrepreneurship is
the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and
business acumen in an effort to transform innovations into economic goods". This may result in new
organizations or may be part of revitalizing mature organizations in response to a perceived opportunity.
The most obvious form of entrepreneurship is that of starting new businesses (referred as Start-up
Company); however, in recent years, the term has been extended to include social and political forms of
entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization
it is referred to as intra-premiership and may include corporate venturing, when large entities spin-off
organizations. According to Paul Reynolds, entrepreneurship scholar and creator of the Global
Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the
United States probably have a period of self-employment of one or more years; one in four may have
engaged in self-employment for six or more years. Participating in a new business creation is a common
activity among U.S. workers over the course of their careers." And in recent years has been documented

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by scholars such as David Audretsch to be a major driver of economic growth in both the United States
and Western Europe.
Entrepreneurial activities are substantially different depending on the type of organization that is
being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only
part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial
ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business.
Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement
in the business.[3] Many kinds of organizations now exist to support would-be entrepreneurs, including
specialized government agencies, business incubators, science parks, and some NGOs. In more recent
times, the term entrepreneurship has been extended to include elements not related necessarily to business
formation activity such as conceptualizations of entrepreneurship as a specific mindset (see also
entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship,
political entrepreneurship, or knowledge entrepreneurship have emerged.

The market and Opportunity Analysis for the promotion of venture:

The opportunity analysis involves the detail analysis of the processes in which the business
happens. An entrepreneur is a person who foresees the opportunity and tries to explore it by introducing a
new product, a new method of production, a new market, new source of raw material and a new
combination of factors of production. The market opportunity analysis is a tool to identify and access the
attractiveness of the business opportunity, in this unique ecommerce business; they try to reconfigure the
value chains and the value systems. Now the market opportunity analysis involves a kind of a value chain.
Value chain is a system of creating activities within the firms which can add value to the customers. A
value system is a set of value creating activities connecting the firm with the other firms in customers.

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First is the trapped value. Now trap value would relate to the efficiency, accessibility and the
customer empowerment. The new value would be added by the personalization, extension, community
building and collaborations. The horizontal value creation can be done by improving the functional
aspects; the vertical value creation can be improved by the industry specific business activities.

The opportunity analysis involves the customer, the competition, the company and the technology.
The identification of the customer has to be done to meet the specific needs and requirements of the
.Competition is try to access the relative advantage of competition, company is to basically has to estimate
its resources, technology is try to identify that technology which has got a deeper penetration into the
market. There are basically stages for customer identification needs. First is problem recognition, second
is information gathering, third is evaluation, fourth is purchase decision, then fifth is satisfaction and sixth
is loyalty. When you do problem recognition... May be he wants to give the product or he is interested in a
subject need or basically, this is a kind of an activity which arouses his interest. Then he tries to gather
information through search engines or through books or journals. The product evaluation is done on the
basis of price, quality and availability. Purchase decision can be online or offline. Satisfaction is if the
customer is arriving you again or if he is buying on time, then the customer is satisfied. Loyalty is the
repeat purchases that mean the customer is loyal to you. Now when you identify the customer needs,
basically you have to segment the customer needs also. The segmentation can be done on the basis of
geographical aspects; the variables of geographical aspects are the country, region or the city. On the basis
of demographics, the variables could be age, gender and income. On the basis of demographic, the
variables could be the number of employees, company and size of the basic operations. Behavioural,
behavioural variables could be the loyalty, priority of purchases etc. Occasion, the occasion variables
could be the routine purchases and the special occasion purchases. Physiographic, the physiographic
variables would be personality, traits, life style etc. Then is the benefits, benefits could be like convenient
buying, economy, quality, price whatever it is. The customer needs have to identify by the actionable
segmentation. The customers have to be defined in terms of their growth, size and profile and
attractiveness. The meaningful segmentation can help you to develop a strategy which is genuinely
possible to relocate the customers in a particular area .the insights of their motivations can be built up the
customers currently to buy and use their products and could bring about the changes which they want. The

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competitive advantages, competitive advantages could be access by starting the direct competitors, what
they are doing, what are their prices and what would be their close substitutes. In direct competition comes
from the substitute products or the adjacent competitors. Now who are the adjacent competitors? The
adjacent competitors are firms that have the potential to provide products and services which are closed to
the substitutes. The competitive mapping would involve identifying the undeserved and the most
competitive areas. Identify the current competitive strength and try to go for collaborations if there are
strong participants and then, overcome these competitive hurdles. This is central to deliver the new
benefits to the customer or it could enhance your trapped value, hold the promises for winning against the
current and the perspective competitors. Then upstream, upstream would involve improving your
relationships with the suppliers. Then come to the technological aspects. Now accessing technology is a
difficult function, a high level of judgment is based on technologically vulnerability. The technological
adoption is important because the customers have to be trained and the price of the technology is also
important because the adaptability depends upon the paying capacity of the customers. The technological
impacts are like what could be the radical changes which can come when you deliver the technology or
what could be the target population. Accessing technology market readiness involves two laws. First is
Moore’s law, second is Gilders law. In Moore’s law, the processing power of successive generations of
microchips wills double every 1.5 years. Gilders law says that the total bandwidth of the communication
systems will triple every 12 months.

Here the Gilders vs. Moore’s law is shown, we have two axes, the X axis and the Y axis. On the Y
axis, we have plotted the Log growth and on X axis, we have plotted time from 95 to 2007. We have two
lines that are green and yellow. On green line, the total packets per second are shown and on yellow line
packets, per second per CPU are shown. The gap between these two lines shows that the need to increase
the CPU’s for the next generation. Now craft and opportunity story, how can you craft and opportunity
story, first is describe the target segment, articulate high value proposition, spell out the benefits which
you want to give out the customers, then try to give reasons to believe it, then try to build the capabilities
and give values to the customers. Now value attractiveness or the market opportunity attractiveness is

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shown by this equation. I will show you this equation, attractiveness is the function of long term
profitability and relative competitiveness. Now the magnitude and the character of the opportunity
depends of the level of the unmet needs, level of interaction between the major customers segments, likely
rate of growth, the volume of the market and the level of profitability. Now the opportunity analysis also
involves the scanning of the business environment, short listing of the opportunities and finalizing the
opportunities.

External Environment Analysis to boost the market potential:

The external environment analysis is a continuous process which involves scanning, monitoring,
forecasting and accessing. In scanning, the identification of the early signals of changes happening in form
of trends is important. Monitoring involves a kind of deducting the meaning through ongoing
observations. Forecasting involves developing projections of anticipated outcomes. Accessing involves
determining the timing and importance of environmental changes. Now the three component relationship
of the firm to the business environment are, first is deterministic, that is you need to have an understanding
of the regulatory, legal and market structures. Second is probabilistic, these are the areas where the firm
has the abilities to increase the odds or successes. Random, there are uncontrollable and uncertain
elements from which the firm cannot attempt to protect itself. The analysis on the basis of macro and
general environment is important to study the task environment, third is the analysis of the competitive
environment, these three analysis give the strategic intent which helps to formulate the strategic mission.
The assets and the skills are those assets and skills required to meet that strategy. Then the strategy
implementation is to select a strategy action linked with the specific implementation of the chosen
strategy. Superior returns, superior returns are higher earning, higher benefits and above average returns.
Now when the external environment analysis, in this, the strategy is dedicated or directed by the external
environmental variables, related to economic, socio cultural, global, technological, political and
demographic. The firm develops the internal skills required by the environment in order to overcome these
issues. The study of the general and economic environment is important, which involve the study of
woman in the workforce, workforce diversity, attitudes and the quality of the work life; it is concern about
the environment, shifts and the career preferences of the people. When you study the political segments,
they would involve the antitrust laws, the taxation laws, the deregulation philosophy and the labour
training laws. When you study the economic segments, it would involve the inflation rates, the interest
rates, the trade deficits, budget classification or budget deficits, personal saving rate or business saving
rates. Technological segment would involve the product innovations, applications of knowledge; Focus of
private and government support are in the expenditures and new communication technologies. The global
impact is also there, the global segment would involve the important political events, the critical global
markets and the newly industrialized economies. When you study the demographic segments, it would
involve the kind of population size, age, structure, geographical distribution, ethnic mix and income
distribution. Now this is all about the external environment or the model which suggest you that the firm
has to have a better strength in reaction to the environment.

Social Environment:
Business and society is important. The business in relation to society is e important. First are the
business scandals, business issues and broad societal concepts. Business is the collection of private
commercially oriented organizations. Society is a broad group of people, organization, interest groups and
community. The segments at a macro level, the social variables would involve demographics, lifestyles
and social values. When you study the strength of the society in a context of the business, a modernized
society is which prevent concentration of power of business, which maximizes the freedom of expression
and action. It disperses the individual alliances, it creates a diversify set of loyalties, it provide checks and

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balances on the businesses. The special interest society or the special interest groups make life more
complex for the business and the government. The number of people involved is high and there is more
active intense and the focus group involvement high for the following purposes that are there is a need to
achieve the goals and to achieve the issues they have to be believed in... The factors of the social
environment are the affluence at the educational level of the people, the awareness through television and
internet, revolution of rising expectations, entitlement, mentality, rights movement and victimization
philosophy.

Which shows the societies expectations vs. the business actual and social performance? We have
two axes, the X axis and the Y axis, on Y axis, we have plotted the social performance that is the expected
and the actual and on the X axis, we have plotted the time, you can see the time period from 1960’s to
2000. There are two lines, the lower line shows the business actual social performance and the second line
shows the societies expectations of the business performance, now when there is a gap between these two
lines, then there will be a social problem because the business has to perform in accordance with the
societal needs and if the business is not able to perform it, there will be problems in the society. Now the
business power is the ability and the capacity to produce an impact and effect on the society. R N law for
responsibility, what is this? This law says that in long run, those who do not use the power in the manner,
society considers responsible will tend to lose it. Elements of the social contract involve both, business
and society; it is a two ways or shared concept in which understanding of each party is important.
The ethics is a science of right, wrong, fairness and justice. Business ethics focuses on ethical issues that
arise in the commercial realm. Stack holders are people or individuals which have interest in the business.
They could be external and internal, this is all about social environment, the social environment is
important for the business because the society is related to the business and both have to work in a
harmonious and a kind of a sustainable relation.

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Competitive Environment:
Now let’s study the competitive environment. Here the competition is important because the
business is running in a kind of a competitive field. The basic model involve over here is the potters five
force field analysis. The five forces are environmental forces that impact the company’s ability to compete
in a given market. The purpose of five force analysis is to diagnosis the principle competitive pressures in
the market and access how strong and important each force is.

Conclusion:
The entrepreneur venture is the promotion of business supported by lager funds involving the
support from the financial and outside instate to build the empires. These ventures crystallise in to big
business organisations putting an impact on the society and relate to the social, ethical and economic
variables. The society is governed by the forces of competition and globalisation and these dictate the
ethics of big business. The venture based entrepreneurship has big future supporting the values of
development and employment in the country.

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[1] Shane, Scott "A General Theory of Entrepreneurship: the Individual-Opportunity Nexus",
Edward Elgar, 2003, ISBN 1-84376-996-4
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[3] Angel Investing, Mark Van Osnabrugge and Robert J. Robinson
[4] Schumpeter, Joseph A. (1926), Theories der wirtschaftlichen Entwicklung (2. Aufl.).
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