Sunday, May 8, 2011

Entrepreneurial Activity

Gerardo Diaz
Finance 180

Entrepreneurship can be referred to anyone in any field where there is new ideas, new ventures, new enterprises, new technologies, etc. It is a position that a leader takes on, in order to take on the project that has any one or similar intentions in mind and is willing to account for all the liability, responsibility and outcomes of these intentions. Entrepreneurial activity in real estate has more depth than one might imagine. For example one might think that from what was said above in conjunction with real estate you get a person like a developer who wants to buy land and develop it according to either a new design of homes or a market that has not been tapped into in real estate while this may be all true there is more to it than what meets the eye.

There is a good example to follow of the activities that take part in entrepreneurship in real estate on pages 198-199 of the Real Estate Analysis Environments and Activities book by Julian Diaz lll and Andrew Hansz. These activities may vary depending on the developer but in this example the first step is to “conceive a development project” which in a sense means to come up with and develop a project and draw up a rough plan. The second step is to “examine the feasibility of the development project”, third is to “refine the development concept” in other words give it the final touches to move forward to step four which is “design the project”. In the fourth step not only do you design it but you get everything necessary to start building the project like permits, plans, budget etc. The fifth step is “constructing the design” which consists of building the project, and sixth step is “managing the assets” meaning either leasing or selling the project.

These steps or similar steps in an entrepreneurial activity are very crucial in development as they serve as guide. Before an entrepreneur takes the initiative to fully invest in a product or idea he/she or they need to find out how successful is it going to be, maybe making a small investment into research or studies before fully investing would be a good idea. Other things that might be beneficial to consider is if it is better to start off from scratch and build the company or organization around the idea or product opposed to working with what is already available in an existing company or organization and vice versa.

For example a lot of entrepreneurial developers like Developers Diversified Realty are now looking for new innovative ways to build. This is called green building it is a new trend in which everyone wants to be in that is environmentally friendly. Although building a company around an idea or product that is presumed to be successful is a good idea, companies like this are a good example of companies that are already formed and just work to fit or restructure their company for the benefit of this innovation. They are creating policies and implementing programs to reduce consumption, reuse material and recycle natural resources as it says in their sustainability overview and organized a sustainability committee.

Real estate entrepreneurial activity is in conclusion a list of items or things that entrepreneurs must follow in order to succeed in the development of a certain project. As mentioned above the list of activities may vary within organizations and companies as well as the order in which they are followed. I think that in this tough economy entrepreneurs have been facing some difficulties in real estate but have been able to in a way deal with these issues by finding other means of development like green building.

Works Cited

Diaz, Julian III and J. Andrew Hanz. Real Estate Analysis Environments and Activities. Iowa, 2010. Print.

Cullen, Julie Berry and Roger Gordon. “NBER/ Tax Policy & the Economy.” MTI Press 2006: 41-71. Web. 8 May 2011.

Developers Diversified Realty. DDR Listed NYSE. 2010. Web. 8 may 2011.

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