Entrepreneurship does not emerge and grow spontaneously. Rather, it is dependent upon several economic, social, political, legal and other factors. An entrepreneur has to carefully monitor the organization's internal and external environment for detecting early signs of opportunities and threats that may influence its current and future plans. Identifying the concept, justify its importance for an entrepreneur.

Question

Accepted Answer

The concept is Environment Scanning — the careful monitoring of an organisation's internal and external environment for detecting early signs of opportunities and threats that may influence its current and future plans. Its importance for an entrepreneur lies in: identification of opportunities to get first mover advantage; formulation of strategies and policies to counter threats and capitalise on opportunities; tapping useful resources such as raw materials, technology and finance at economical prices; better performance through timely action; sensitisation of the entrepreneur to cope with rapid changes in technology, competition, government policies and customer needs; and image building through new products and services that meet customer requirements.