INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rate of new business starts in an industry
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rate of return for the firms in an industry
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growth rate for the firms in an industry
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failure rate for the firms in an industry
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sales for the firms in an industry
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Detailed explanation-1: -These forces include the number and power of a company’s competitive rivals, potential new market entrants, suppliers, customers, and substitute products that influence a company’s profitability. Five Forces analysis can be used to guide business strategy to increase competitive advantage.
Detailed explanation-2: -The 5 elements in Porter’s 5 Forces are the Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of new substitutes, and Competitive rivalry.
Detailed explanation-3: -Porter’s five forces is an amazing tool enabling organizations to evaluate the profitability of a market or industry. It is based on five forces that affect attractiveness: competitive rivalry, supplier power, buyer power, threat of substitution and threat of new entry.