Complete 2 page APA formatted essay: Entrepreneurship and business creation.The raison d’être of a business model lies in the way it captures the processes that create value for customers and other

Complete 2 page APA formatted essay: Entrepreneurship and business creation.

The raison d’être of a business model lies in the way it captures the processes that create value for customers and other stakeholders by which the business would operate. When building a business model, one has to consider the aspects of what the customers want, how they want the value to be delivered to them, how the business intends to make profits and the likely revenue streams and associated financials that the business employs to justify its existence (Zott, Amit and L.Massa.). In recent years, the role of a business model has been primarily to justify the funding that it receives from venture capitalists and other funders who might want to know how the business is going to generate adequate returns on capital invested. Hence, the business model is used to create a plan for the business on how it would go about its operations and generate returns for the investors and create value for all stakeholders (Linder and S.Cantrell).

2) The seven domains framework is very useful for entrepreneurs as it provides them with a model by which they can evaluate the viability of a particular venture. The seven domains that the framework lists are the macro market or the market attractiveness. macro industry or the industry attractiveness. micro segment or the target segment benefits and attractiveness. the micro industry or the sustainable advantage and the three factors associated with the team which are the mission, value chain and whether the key CSF’s or critical success factors can be executed in a efficient manner (Mullins). The seven domains listed provide an opportunity for the entrepreneurs to evaluate whether the market is attractive for the investors. whether the industry that is sought to be entered is attractive in terms of profitability. whether the specific market segment that is being targeted is viable and would be financially remunerative. whether sustainable advantage can be