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EU funding for Start-ups and SMEs

Written by N. Imamović

Paper category

Master Thesis

Subject

Business Administration>Entrepreneurship

Year

2018

Abstract

Master Thesis: Entrepreneurship at the SME level Before we set up the company, it is highly recommended to have an idea or plan to do. There are more possibilities to start something out of the ordinary, or for example to obtain some franchise rights. Many of us associate the new organization with some brand new business ideas. With the continuous development of technology, there are also new products and services online. With this, new businessmen can easily follow these trends and determine the market (Holcombe, 1998). But at the same time, there is no need to invent new things. Small changes in products or services are often enough to differentiate entrepreneurs from competitors. For example, only a small strategic difference can be different from competitors. If he has a customer line and they do business in a small town or surrounding area, he may not be able to find a larger town. Another option is to take a franchise and have the concept of being ready to do business with a fixed marketing plan, equipment and other packaged businesses, while being an independent person, which means that this is a business. Franchising is not free and requires a fixed cost to use the technology developed by the brand. Even if you need to pay some money for this, it can also bring you a good return. In Austria, there are about 400 different types of franchise rights, with about 7000 franchise users (Gründerservice, 2017). 2.5.1 Your business philosophy has opportunities and risks on the road of business philosophy. The road to independence has not been smooth sailing, and there is no guarantee of success. Have a clear vision for the business philosophy. One of the very important steps in starting a business is market research. Real market analysis is the basic step in the planning stage during the establishment of a company. As an entrepreneur, you need to make important decisions, such as sales and purchasing policies. One of the very important steps on the road to business is market research. Real market analysis is the basic step in the planning stage during the establishment of a company. As an entrepreneur, you need to make important decisions, such as sales and purchasing policies. Through market research, the necessary basis for decision-making is being established (Kettell, 2002). Market research captures and examines all factors that are important to the success of a given service product. It provides you with a comprehensive overview of the market and basic knowledge of company concepts. Market research investigates needs, target groups, competition, distribution channels, internal factors and market environment. Competitive analysis The task of competitive analysis is to find the products offered by other companies in the market. From this, you can infer whether there is a niche market for your product or service. Competitive analysis involves the following questions: • Who are the competitors? • What are the goals of my competitors? • What is the strategy of my competitors? • What are the advantages and disadvantages of competition? • What competitive products are offered (Porter, 1998)? Distribution analysis Distribution analysis involves the nature of the distribution system. The following questions should be answered: • Who should sell my product? • What advertising measures do I use to support sales? • Which brand policy should I pursue? • Which sales channels to choose from which company size (Porter, 1998)? International factor analysis In the context of market research, it is also relevant to analyze international factors that affect production, for example. The following questions should be answered: • What sales expectations do I have? • What measures will affect sales? • What production capacity do I have? • What is the technical status of the product (Porter, 1998)? Environmental analysis is very important. It is important not to ignore the overall situation, but also to ask questions about the product or service environment: • How much do I know about your own market? • How much do I know about the industry market? • What economic factors affect the product (Porter, 1998)? It is very important to find out the differences between competitors, why there are still opportunities to enter the market when there are already some other older and more experienced competitors. There are often articles about this moment that the new competitor should be different from the old one in order to ensure the spot on the market. From the perspective of what should be different in order to succeed, it may depend on what the goal is and how big the competition is. If there is competition in the market, but not too much, the difference may not be big. This happens when everyone has enough profit. For example, look at Vienna, there are about 50 MC Donald's restaurants and many other food chains, which are still full and making huge profits. For example, when there are other cities with roughly the same population but not as strong economies, it is impossible to have such a large number of franchises and other food supply speeds. It is more difficult to find customers there, in other words, where the economy is poor, differentiation is more necessary. Of course, this depends on the branch or market segment where the business is located and other relevant conditions. Read Less