Question

1. Explain your position why most entrepreneurs consider the elements of risks, business plan, start up and cognitive referent in identifying ideas and opportunities for innovative products- goods and services.

Answer 1

In terms of starting a business there is a huge investment of money the returns generated from the business interms of cash flows should be viable or greater than the cost of capital to ensure the business generates profits. And the main reason to start a business is to earn money for that purpose a business plan has to be put in place to ensure the market is targeted well and informed about the products and services provided to generate orders and thereby healthy returns. In terms of a start up as well as an existing business innovation and generation of new ideas are important because that's the way to capture the market and generate orders which in turn leads to generation of cashflow. Business plan is also important to ensure the idea is protected and not used by competition like coke and KFC don't reveal their secret formula. So all of these terms are related in order to make money which is the goal of a business. In terms of risk in case things don't work out you end up loosing money so a huge loss is at risk which has to be protected by planning and using innovation.