Introduction
Every industry faces changes in its trends. The business industry also witnesses different changes in its working which are emerging over time. These changes are known as business trends. These business trends have changed the way of conducting businesses completely. Let's explore some of these trends and get to know about them. The names of some business trends are network marketing, franchising, e-commerce, business process outsourcing, knowledge process outsourcing, etc.
Various Trends in Business
Many business owners tend to overlook the latest emerging trends in it, which ultimately impacts negatively. The business sector requires people to stay up to date with emerging trends in business. It is mainly because this sector changes quickly (the way business is being conducted), and hence to stay at the top of your game, you need to be aware of the emerging trends in it. In this article, we will make you familiar with the latest trends in the industry, such as emerging trends in e-commerce, network marketing, franchising, digital economy and many more. Reading this article will help you further advance your business and boost your profit margins. Let us start by looking at E-commerce and emerging trends in e-commerce.
E-Commerce
E-commerce has been one of the best ways in recent years to take your business online and open your market to the whole world. It essentially means buying and selling goods over the internet. You can deliver your products right to the doorsteps of the customer. It will inevitably boost your conversion rates and the number of sales. There are currently several emerging trends in the e-commerce industry such as Amazon, eBay, etc. Whether you have your business online or want to set it up online, you must be aware of the emerging trends in e-commerce.
The other names of e-commerce are electronic commerce and internet commerce. E-commerce is the buying and selling of goods and services through the internet. Everything is done through the internet network. Transactions of money and data also come under e-commerce. There are four ways in which these business transactions are being done and they are - Business to business, customer to the business, business to customer and customer to customer. The name itself signifies that e-commerce is the meeting of buyers and sellers over the internet. The things involved in it are as follows - transaction of goods and services, transaction of money and exchange of data. The latest examples of e-commerce websites are Amazon, Myntra, Ajio, Flipkart, Zivame, Meesho etc.
Network Marketing
Network marketing is one of the best emerging trends in the business environment. It is essentially a medium used by manufacturers to increase their sales. In this method, manufacturers rely on their distributors and their sub-distributors to form an efficient chain or network of delivering products to the customers. This chain of distributors will enable you to reach a huge number of customers and increase your products' sales.
The emerging trends in the field of marketing have changed the way of working of businesses in a complete manner. The new types of marketing are helping the companies in attracting a large number of customers and helping them in expanding their business rapidly. The expenses are also being reduced in these trends as compared to traditional marketing. One of those trends is network marketing.
Network marketing is considered to be a medium of marketing that businesses use so that they can expand their sales. Is usually used by manufacturers when they have to push out their products and deal with a lot of distributors. Indirectly, they reach out to more customers which eventually is beneficial for them. Network marketing is generally used in business structures that need multi-level marketing because these manufacturers have a large number of products and services and involve a large number of distributors and sub-distributors.
Franchising
The latest business methodology also includes franchising as one of the emerging trends in it. Franchising can be an incredible way to expand your business even further. It mainly involves providing your business's rights or license to a third party called a franchise, and you will be the franchisor. You will let another party conduct the business on your behalf and receive some profit from that.
Franchising is considered to be a right that the manufacturers or business entities give to others. In franchising, one party (known as franchisor) allows or gives the authority to the other party (known as a franchisee) to sell the products or services of the franchisor. Franchisees are authorised to use the brand name, its trademark and other things. Basically, a franchisee is just like a dealer. In return, franchisees have to pay a commission or one-time fee to the franchisor. In other words, we can say that franchising is the agreement between two parties, in which one party allows the other party to sell its products or services by using their techniques which used to be confidential. A lot of examples are there in the market these days like McDonald's, H&M and Dominos.
Digital Economy
As the name suggests, the digital economy means taking all of your economic transactions online. In other terms, it is also known as the internet economy or the web economy. As you know, technology is expanding like wildfire, and sooner or later, the traditional and digital economy is bound to be one. It essentially includes all the businesses that are conducted via digital technologies or the internet. Also, it includes businesses such as e-business, e-commerce, etc. So be aware of recent trends in commerce.
Business Process Outsourcing
Business process outsourcing or BPO has been one of the fastest emerging trends in the business sector. It is a huge industry now and also has a significant impact on our global economy. Huge businesses tend to outsource their business process job to third parties from different countries which helps them cut down their costs and increase profit margins. Overall you can outsource a certain task of your company or business to another company at a low cost.
A business strategy where one company hires another company for a particular task to perform that means they are outsourcing a certain job of their company and this is known as business process outsourcing or popularly known as BPO. It is necessary and essential to outsource the non-core activities of the company so that they can focus more on the core activities for making it more productive. Companies outsource only non-core activities and do not outsource the core activities. BPO makes a company more flexible and more focused on its main goal or its main activities. It is also very cost-effective.
M-Commerce
M-commerce, also known as mobile commerce, is a type of e-commerce. It is also one of the emerging trends in the e-commerce industry. This method brings forward a way for you to get your business to the mobile phones carried around by people in their pockets. You are providing ease of access to your customers, which will ultimately boost your sales significantly and also increase your profit margins by a great deal. These days, most people like to shop online using their phones, so this trend is not something to ignore for business owners.
Aggregator
The aggregator is one of the unique and emerging trends in the business sector. We have loads of information available on the internet via thousands of websites. To put it simply, the aggregator is a way for you to combine all of the information available on a certain topic in a single place. It will provide convenience to the people who are searching for that particular information.
Knowledge Process Outsourcing
Knowledge process outsourcing or KPO essentially means outsourcing different business tasks related to information such as analysis, consultancy, research, or high-level tasks. Businesses who do not have the human workforce to conduct such tasks efficiently tend to outsource them to other companies. These KPO companies are mainly there to help these companies complete such tasks, and they have a dedicated workforce precisely for that purpose.
Knowledge process outsourcing is just like business process outsourcing but in KPO, knowledge-based tasks are being outsourced like analysis, researching, a consultancy. Knowledge process outsourcing can be done either by any other company or by the subsidiary of the same organization. The most famous companies providing knowledge process outsourcing are TCS, Wipro, WNS global, etc. The advantages of knowledge process outsourcing (KPO) are - they are cost-effective, they can access the best talents, resources are being utilised in a better way.
Fun Facts
Since the coronavirus pandemic, global e-commerce sales are predicted to reach over 4.2 trillion dollars and make a whopping 16.2% of total retail sales.
FAQs on Entrepreneurship Development Process Simplified
1. What are the key stages in the entrepreneurship development process?
The entrepreneurship development process involves a sequence of steps that transform an idea into a functional business. The key stages as per the CBSE Class 12 Business Studies syllabus for 2025-26 are:
- Idea Generation: Identifying a new business opportunity or a unique solution to a problem.
- Opportunity Spotting: Evaluating the idea for its market potential and viability.
- Feasibility Studies: Conducting detailed analysis, including market, technical, and financial feasibility, to assess the practicality of the venture.
- Business Plan Formulation: Creating a formal document that outlines the business goals, strategies, and how to achieve them.
- Resource Mobilisation: Arranging for the necessary finances, human resources, and physical assets.
- Enterprise Launch and Management: Officially launching the business and managing its day-to-day operations.
2. What is a feasibility study and why is it crucial before launching a new venture?
A feasibility study is a detailed assessment of the practicality and viability of a proposed business idea. It is crucial because it helps the entrepreneur determine if the venture is worth pursuing before investing significant time and money. It rigorously tests the idea against reality by analysing:
- Market Feasibility: Is there a demand for the product/service?
- Technical Feasibility: Can the product/service be produced with available technology and resources?
- Financial Feasibility: Is the venture financially viable, and can it generate profit?
- Organisational Feasibility: Does the entrepreneur have the necessary skills and team to run the business?
Ultimately, a feasibility study helps prevent major losses by identifying potential roadblocks early in the process.
3. How does franchising differ from starting a business from scratch for a new entrepreneur?
Franchising and starting a new business are two distinct entrepreneurial paths with different levels of risk and control.
- Franchising: An entrepreneur (franchisee) buys the rights to use an established company's (franchisor's) brand, business model, and support system. This offers the advantage of a proven concept and brand recognition but involves paying royalties and having less operational freedom.
- Starting from Scratch: An entrepreneur develops a completely new and independent business. This provides full control over all aspects and 100% of the profits, but it also carries a higher risk of failure and requires building a brand, processes, and customer base from zero.
4. What is the importance of 'idea generation' as the first step in the entrepreneurial process?
Idea generation is the foundational step of the entire entrepreneurship development process. Its importance lies in the fact that the quality of the business idea directly impacts every subsequent stage. A strong, innovative idea that solves a genuine customer problem has a much higher chance of success. A weak or poorly researched idea, on the other hand, can lead to the failure of the venture, regardless of how well the business plan is executed. It is not just about having an idea, but about identifying a viable opportunity.
5. How do emerging trends like Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) create new opportunities for entrepreneurs?
Emerging trends like BPO and KPO create two primary types of opportunities for entrepreneurs:
- Starting a Service Venture: Entrepreneurs can establish their own BPO or KPO firms to provide outsourcing services to other larger companies. This is a business opportunity in itself, tapping into the global demand for cost-effective business solutions.
- Leveraging Services for their Own Venture: A new startup can outsource non-core functions like customer support (BPO) or market research (KPO). This allows the entrepreneur to reduce initial costs, access specialised skills without hiring full-time staff, and focus their own energy on critical activities like product development and strategy.
6. Beyond a good idea and funding, what non-financial factors are most critical for the success of a new venture?
While a great idea and capital are essential, several non-financial factors are often more critical for long-term success. These include:
- The Entrepreneur's Resilience: The ability to persevere through setbacks and adapt to challenges.
- Strong Team: Having a founding team with complementary skills and a shared vision.
- Market Timing: Launching the venture when the market is ready and receptive to the solution.
- Networking Ability: Building strong connections with mentors, suppliers, customers, and industry peers.
- Adaptability: The willingness to pivot the business model based on customer feedback and changing market conditions.
7. How does the Entrepreneurship Development Process differ from an Entrepreneurship Development Programme (EDP)?
Students often confuse these two related terms. The key difference lies in their nature and purpose:
- The Entrepreneurship Development Process refers to the natural, logical sequence of actions an entrepreneur undertakes to establish an enterprise, starting from idea generation to the final launch and management. It is the 'journey' itself.
- An Entrepreneurship Development Programme (EDP), in contrast, is a formal, structured training course designed to identify, nurture, and develop the skills and capabilities required to successfully navigate that journey. It is the 'training' for the journey.
In short, the Process is what an entrepreneur does, while a Programme is what an entrepreneur learns.
