Resource Mobilization — Entrepreneurship STD 11 Commerce — Question

These resources are neither felt nor seen, far from being touched or preserved but helps immensely in providing a strong foothold to enterprise. The intangible possession is a resource which enables a business to continue to earn a profit that is in excess of the normal basic rate of profit earned by other business of similar type. This category generally comprises of:

1. Goodwill: The difference between the value of the tangible assets of the business and the actual value of the business (what someone would be prepared to pay for it). Though it is generally not present in case of new entrepreneurs. But if he is acquiring or entering into a partnership or some alliance, he may benefit from the goodwill of his associate, if any.
2. Reputation: Does the business have a track record of delivering on its strategic objectives? If so, this could help gather the necessary support from employees and suppliers.
3. Brands: Strong brands are often the key factor in whether a growth strategy is a success or failure. An entrepreneur needs to assess the same. Being associated with strong brand, an entrepreneur can command and sustain higher margin.
4. Intellectual Property: Key commercial rights protected by patents and trademarks may be an important factor to be worked out by the entrepreneur.