Wright Capital Consultants

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Strength of Business Idea Rationale

The rationale behind the strength of the business idea was derived from looking at the current situation in Vietnam, which has a lack of fund sources for entrepreneurs. This is mainly due to Vietnam’s government’s capacity to borrow from its international counterparts which is next to nothing because of farfetched less auspicious provisos than domestic economic support (Nguen and Tho 2007). The chosen business idea fills in a gap within the Vietnam’s current market and solves the problem of lack of funding from a private company instead of other corporations, which focuses on existing companies. In the market that wright Capital Consultants have chosen to launch in, we found that access to funding is the country’s major gap, followed by entrepreneurial education and perception. However, there are a few similar businesses, Wright capital Consultants will conduct itself different. Wright Capital Consultants is focused on helping its targets and its destination of operation foster, thus not being in operation just for the profit but to also help grow the economy. Wright Capital Consultants will help entrepreneurs choose which niche market to get into like agriculture exporting, since Vietnam is major in exporting agricultural goods.

This is not a timely business idea for the founder(s) but maybe for the entrepreneurs that the business idea is targeting. The business idea does not have any competitors as of yet, but in due time foreign and domestic competitors will try to embark on this same business idea. The reason this business idea does not have any competitors as of yet is because similar business focus on later stage and balanced stage financing, where Wright Capital Consultants will focus on all stages mainly the seed and early stage financing. The business idea is conceived for the needs of the targeted entrepreneurs in the Vietnam where the resulting service will be launched, as opposed to adapting an idea from a developed country and applying it in an emerging economy context. Although, in seeing what works for a developed country can give an emerging company a good starting point to follow. Vietnam has many reasons to start a business including but not limited to, it’s not expensive and dexterous hard working people and its optimistic outlook according to several business specialists that said that Vietnam may be one of the most expeditiously emergent country within the following 15 years. Majority of the countries in Vietnam’s region start their economic progression 10-20 years early, thus Vietnam will keep on seeing a fervent improvement. Vietnam has at least a 10-15 year window before wages are equal to that of regional heights.

Country-Related issues Rationale

The rationale behind the country-related issues was derived from looking at the current issues facing Vietnam as a country. The country has no political, economic or business environment stability which can result in some obstacles for the company. Although there is no support from the government they do suggest and encourage companies to seek out foreign investment via shareholding. The government does not place any restrictions or red tape on businesses because the government is absent in the business arena for now. This is a good thing for entrepreneurs who want to start a business because there is nothing holding them back except for financing, which Wright capital Consultants will be able to minimize the impact. The government also does not support entrepreneurial activity, so newly formed businesses have to fend for themselves. According to Hawkins, (1993); Spencer and Gómez, (2004), “More than a few researchers have implied that the degree to which the general public is in awe of and have a high opinion of entrepreneurs would be a better forward planner of domestic entrepreneurship than more widespread measures of way of life.” Vietnam has a high tolerance for outsiders and their level of inclusiveness, which is a benefit for the type of company the founders will provide. The company will have to rely on itself because there is no presence of fair and effective courts and reliable financial and accounting infrastructures. The country could finish the network of business aid services via the developing of private service sources, business connections. People place a bad perception on Vietnam for its human rights policies, but they could maintain a transparency of policies, initiate positive conditions for business people to retrieve info. Another issue that Vietnam faced was its high poverty levels in the mid-1980s, but in 2003 its poverty levels dropped. This is a good thing for entrepreneurs who want to sell goods and services and products because it means that the Vietnamese people have funds for purchases of the goods and services rendered. As with many countries emerging out of a period of tight economic control by the state, Vietnam suffers from a lack of transparency, slow bureaucracy and corruption (The Canadian Trade Commission Service 2014). Fortunately, for Wright Capital Consultants this is not a key business interrupter because of our independent nature and lack of government dependence.

Business and Customer-related issues Rationale

Vietnam has more than one type of similar businesses to the one being analyzed. Fortunately, there is little availability of loans/investment capital for this type of business. Despite the fact of how complex and weighed down with many detriments, self-employment turns out to be one of the most feasible stratagems to be had for entrepreneurs in makeshift and unindustrialized economies (Morris, Woodworth & Hiatt 2006). The purchasing power of local customers and clientele is not that high. According to Syamananda (2013), “Consumer spending in Vietnam is growing fast due to increased purchasing power and large market size.” This increase in purchasing power has caught the attention of foreign investors, thus giving way for retail entrepreneurship among the Vietnamese locals. The Canadian Trade Commission Services (2014) states that, “The standard CIT rate, effective January 2009, is 25%. This tax can go as low as 10% for firms investing in “encouraged” geographic areas or in “encouraged” sectors.” This is lower than that of corporate taxes in some developed countries, namely the United States of America. The proportion of export turnover of Viet Nam in GDP has increased from 47% in 2000 to 77.7% in 2013 (Huan 2014). This type of business is always able to export its services since its operations are expertise and funding, which can be done from almost anywhere. The government has committed itself on implementing the WTO-commitments and as a result trade codes of practices