Discussion Question: Market Inefficiencies

Discussion Question: Market Inefficiencies

Dermot Berkery of Delta Partners, a firm that specializes in high-end technology investments in Europe, has written that entrepreneurs need to argue just two things in a serious business plan: the existence of an opportunity for investment and the possibility of a good deal for investors.

Music startups seem to afford new opportunities for investment and there is much inefficiency in the current music marketplace. Think about the last point in connection with the four traditional sectors of the music business: music products, live music, recorded music, and publishing. Where do you see market inefficiencies begging for entrepreneurial acumen?

Solution Preview

Market Inefficiencies

    Under some factors, firms in the economies of the market may not be able to produce effectively. Inefficiency is often caused by the scarcity of the resources or the inability to maximally utilize substantial resources.  Dermot Berkery who is a general partner of Delta Partners a European firm, has published that entrepreneurs should only argue about two things in a thoughtful business plan. First is the potentiality for investment and the other is the probability of a good deal for an investment team.

(520 words)