FACTORS THAT ENHANCE NEW VENTURE FORMATION

Although the desire derived from the Individual's culture, subculture, family, teacher, mentors and peers needs to be present before any action is taken,

the second feature necessary centers around this question "what makes it possible to form a new company ?"

Several factors are responsible for this, some of this are;

• GOVERMENT: the government contributes by providing the infrastructure to help and support a new venture.

It is no wonder that more companies are formed in the developed countries like United States and Britain -given the roads, communication

and transportation systems, utilities, and economic stability - than in underdeveloped countries like Nigerian.

• BACKGROUND: They must also have the necessary background. Formal education and previous business enterprise give a potential entrepreneur the skills needed to form and manage a new enterprise.

• MARKETING: Marketing also plays a critical role in forming a new company. In addition to the presence of a market of sufficient size,

there must also be a level of marketing know-how to put together the best total package of product, price, distribution and promotion needed for successful product launching.

• ROLE MODEL: role model can be one of the most powerful influence in making company formation seem possible.

To see someone else succeed makes it easier to picture yourself engaged in a similar activity of course, even more successfully.

• FINANCIAL RESOURCES: finally, financial resources must be readily available. Although most of the start-up money for

any new company comes from personal savings, credit, friends and relatives, there is often a need for additional seed capital.

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