Environmental Scanning

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 How can environmental scanning help Social Entrepreneurs?

Environmental Scanning is a vital tool in entrepreneurship. It is a business analysis

process that involves collecting and evaluating data accurately. This process is important for

entrepreneurs to understand if the business environment is appropriate for the business

venture. This paper discusses how environmental scanning helps entrepreneurs.

Firstly, it helps entrepreneurs have proper planning This is done by creating creative

ideas into real products in their business environment (Cortes & Lee, 2021). Entrepreneurs

can gauge the acceptance of the good or service. Consequently, if the business idea is not

acceptable in the business environment, entrepreneurs forgo it and choose better alternatives.

Social entrepreneurs can plan well through environmental scanning.

Secondly, this process ensures the proper use of resources for the business venture.

Before starting a business, entrepreneurs require resources (Haugh, & Doherty, 2022). This

includes such as business capital. This process will help entrepreneurs avoid wastage.

Additionally, it will allow the economical and effective use of resources. Social entrepreneurs

can use resources properly through environmental planning.

Lastly, it helps in decision-making. The best choice of alternative is done when this

process is followed (Sinthupundaja, Kohda, & Chiadamrong, 2020). These decisions foresee

all the future threats and weaknesses that the business may face. By making these decisions,

the future of the business is protected. Social entrepreneurs can make informed decisions

through environmental scanning.

In conclusion, environmental scanning is seen to be an important tool for social

entrepreneurs. It is suitable for entrepreneurs to first study their environment, before

commencing any business venture. Firstly, it helps social entrepreneurs to plan well.

Secondly, they can use their business resources properly. Lastly, environmental scanning
helps social entrepreneurs make proper decisions. These are the important reasons for a social

entrepreneur to carry out environmental scanning.

 References

Cortes, A. F., & Lee, Y. (2021). Social entrepreneurship in SMEs: A note on three essential

questions. New England Journal of Entrepreneurship, 24(2), 62-78.

Haugh, H. M., & Doherty, B. (2022). Social entrepreneurship and the common good. In

Entrepreneurialism and society: Consequences and meanings (Vol. 82, pp. 89-114). Emerald

Publishing Limited.

Sinthupundaja, J., Kohda, Y., & Chiadamrong, N. (2020). Examining capabilities of social

entrepreneurship for shared value creation. Journal of Social Entrepreneurship, 11(1), 1-22.