Starting and Developing a New Venture Essay Example | Topics and Well Written Essays - 2500 words

Starting and Developing a New Venture - Essay Example Under these circumstances, entrepreneurship comes in handy. Investing in small businesses that do not require large amounts of capital is fits the entrepreneurs whose capital acquisition is limited. With more and more people getting engaged in the small business sector, their ability to meet the basic needs is strengthened as they wait for better opportunities to emerge. The small business sector is composed of many small independent firms that own a little market share. The small firms lack the capability of influencing prices within the market segment that they occupy. The firms in a small business sector lack formalities in their management structures. They are normally dominated by centralized management and individual decision making in the production process. Firms in a small business sector mainly operate on low capital and produce a limited number of products, targeting a narrow array of customers in the market (Nathaniel, 2008: 47). The small business sector is a derivative of entrepreneurship and innovation. Entrepreneurship is the process of undertaking the risk of obtaining goods and services at a particular cost and selling them at predicted prices. It is the process of combining many factors of production in the creation of new enterprises. Innovation is a change in product, service or the method of production and marketing, with the a im of improving competitiveness of a business in the market. The small business sector comes up to satisfy a particular demand existing in a particular locality. Innovative entrepreneurs identify the need for availing nonexistent products and services in the market. They may not be needed in large quantities, but they are essential in the market. A good example is where small scale dealers in spare parts complement the automobile industry in a particular area. Motor vehicle dealers may not