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02 - Activity - 2 Value Creation

Value creation affects entrepreneurship by being the main focus and process of developing a concept into a successful enterprise through creativity and innovation. Entrepreneurship involves starting a business to provide value to customers by offering goods/services that meet needs at a reasonable cost/quality. For entrepreneurial businesses to be successful and increase value over the long run, they must emphasize creating wealth for shareholders through performance measures while also contributing value to society.

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Raven Monique
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188 views2 pages

02 - Activity - 2 Value Creation

Value creation affects entrepreneurship by being the main focus and process of developing a concept into a successful enterprise through creativity and innovation. Entrepreneurship involves starting a business to provide value to customers by offering goods/services that meet needs at a reasonable cost/quality. For entrepreneurial businesses to be successful and increase value over the long run, they must emphasize creating wealth for shareholders through performance measures while also contributing value to society.

Uploaded by

Raven Monique
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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In your opinion, how does value creation affect entrepreneurship?

The process of taking a concept and converting it into something concrete that has value, in my
perspective, is what I mean by "value creation." The main focus of entrepreneurship is value
creation. It is the process of developing a concept into a successful enterprise. An essential
component of entrepreneurship is creativity. It is what enables business people to develop
original and innovative concepts.
The act of starting or growing a business or enterprise by starting or participating in a new
initiative is known as entrepreneurship. A risk-taker who goes above and beyond their skill set to
produce something that people want to use or purchase is referred to as an entrepreneur. The
main objective of an entrepreneur is to provide value for the consumer by giving them the goods
or services they require at a reasonable cost or level of quality.
Entrepreneurship is about developing something that people will want to buy, like a restaurant or
a movie theater, rather than just a product or a service. Making connections between things that
at first look appear unconnected is a key component of entrepreneurship. For instance, if you're
opening a restaurant, you might connect cooking with local products to provide customers with
cuisine that tastes new. An entrepreneur needs to be aware of their own abilities and capabilities
in order to create value. When you first start out, this might be challenging, but it gets much
easier if you have a solid understanding of who you are and what you are capable of.
Let's take the scenario where you wish to establish a fashion business. Making clothes could
seem simple to you—after all, you love fashion.  But if you don't know anything about
marketing or fashion design, it will be difficult for your new firm to be successful. You need an
expert in those fields to help you direct your efforts there so they can be as successful as
possible.
For entrepreneurial businesses that want to set performance goals, measuring value is essential.
Entrepreneurial firm owners must place a strong emphasis on value creation and educate
managers and staff on how they may support the company's efforts to increase value. Effective
valuation measures encourage operational efficiency and make it easier for managers to plan and
create strategies to ensure value creation is taking place. Therefore, it is important that a
company's management uses performance indicators that are related to the organization's
ultimate objective, which is to create wealth for its owners. Companies cannot expect to function
at their maximum level if they place a strong emphasis on performance statistics that do not
reflect genuine shareholder wealth.

Will you aspire to have a business that creates value for society or a company that makes
value for the shareholders? Why?
I want to manage a business that contributes to society. I think businesses have an obligation to
improve the communities in which they operate. Additionally, I think that organizations that
contribute to society are more long-term viable.
For instance, if you run a company that benefits society by creating jobs and offering services to
those in need, you are helping your neighborhood and improving it. Everyone benefits when you
give individuals the chance to make money and better themselves. The world would be a better
place if everyone thought like this about their line of work.
This is important, in my opinion, because organizations like Patagonia and Tesla are doing their
part to improve the world. They are assisting us in reducing our carbon footprint and
safeguarding the future of our planet by assisting us in switching from fossil fuels to more
renewable energy sources. Additionally, these businesses are doing their part to guarantee that
their workers receive fair treatment, fair compensation, and opportunity for advancement within
the business.So that their employees can concentrate on what they do best, help others, and not
worry about things like retirement or health insurance expenditures, they offer healthcare
benefits and conducive working environments. They are not only wonderful businesses because
of their emphasis on adding value for society, but they are also sustainable businesses. The truth
is that your business will eventually fail if you don't create value for society, which can include
things like social responsibility programs or environmental impact assessments. This is because
it won't be able to keep up with demand from clients or investors who want your products or
services. For illustration, you would need to ensure that your firm is ecologically friendly and
that the materials it utilizes are biodegradable if you wanted to launch a company that recycles
bottles. To prevent empty bottles and cans from ending up in landfills or the ocean, where they
could endanger humans or other creatures, you could also decide to install recycling bins where
individuals could dispose of their own used bottles and cans.
Businesses can be profitable and be sustainable, however not all companies are able to achieve
this kind of goal . A company must go to extra miles to satisfy its customers and keep them
coming back, or else they will lose those customers and be unable to earn any profit or revenue.
You should aim to have a firm that adds value to society if you're an entrepreneur who wants to
launch a business that benefits society. I think it's important for businesses to give back to the
communities in which they operate, and I think these firms are more likely to remain relevant in
the long run as well.

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