Entrepreneurship: Dr. Akshita Jain
Entrepreneurship: Dr. Akshita Jain
Entrepreneurship: Dr. Akshita Jain
Sees and acts on opportunities: An entrepreneur always looks for and
takes action on opportunities.
Examples
Persistence
Information Seeking
PERSONAL ENTREPRENEURIAL
COMPETENCIES
Systematic planning: An entrepreneur develops and
uses logical, step-by-step plans to reach goals.
Example: Plans by breaking a large task down into
sub-tasks
Develops plans that anticipate obstacles
Evaluate alternatives
Takes a logical and systematic approach to
activities
Persuasion
problem Solving
Self Confidence
In addition to personal competencies, an
entrepreneur must possess the competencies
required to launch enterprise and for its growth
and survival. Which includes:
Venture Initiation and Success Competencies:
It is further divided into two categories:
Trading Entrepreneurship:
Related to trading activities.
Agricultural Entrepreneurship:
Own property
Owe money (take out loans)
Hire and terminate employees
Sue or be sued by other persons and/or other
corporations
A corporation is owned by
shareholders/stockholders.
PRIVATE COMPANY
Characteristics of private company
1 or more persons may incorporate a private
company.
one director (1 or more directors) or any
other
prohibited by MOI from offering its shares to
the public and the transferability of its
shares is restricted.
The name of a private company must end
with the expression “Proprietary Limited” or
its abbreviation “(Pvt) Ltd.”.
PUBLIC COMPANY
Characteristics of public company
The franchisee the obligation to pay the franchisor fees for these
rights
Financial help
Continuing management help
Wholesale prices on purchases
Franchisee Obligations:
Following procedures
Maintaining business relationship
UNIT II
Promotion of a New Venture
MEANING
In general sense, promotion means ‘start or
formation’. But From the viewpoint of
industry/enterprise, it means all those activities
and modalities which are performed right from
the emergence of the idea of setting up the
industry to bring it to the stage of its
establishment.
In other words, the promotion starts from the
emergence of the idea to the stage at which an
enterprise/business/industry completely
establishes well, to start its activities as an
organization or institution.
FOLLOWING DEFINITIONS ARE USEFUL TO UNDERSTAND THE MEANING OF PROMOTION.
Environmental Scanning
Feasibility Analysis
Example:
Steve Jobs of Apple. Steve Jobs gave many
creative ideas to world (like touch screen device).
Another creative entrepreneur is Jan Koum who
has given great app to world called as whatsapp.
THREE COMPONENTS OF
CREATIVITY
EXPERTISE = Knowledge (Technical, Procedural and
Intellectual)
MOTIVATION: Intrinsic is more effective than extrinsic
CREATIVE THINKING SKILLS: How flexibly and imaginatively
people approach problems
EXPERTISE CREATIVE
THINKING SKILLS
CREATIVITY
MOTIVATION
THREE REASONS WHY PEOPLE ARE
MOTIVATED TO BE CREATIVE
Need for novel, varied, and complex stimulation.
Need to communicate ideas and values.
Need to solve problems.
Blue Print
BUSINESS PLAN MEANING…..
Business plan is a written document
prepared by entrepreneur that describes all
the relevant external and internal elements
involved in starting new venture. It is an
integration of functional plans such as
marketing, finance , manufacturing and
human resource plan.
A business plan is a blue print of step by
step process that would be followed to
convert business idea into successful business
venture.
OBJECTIVE OR IMPORTANCE OF
BUSINESS PLAN
To give direction to the vision formulated by the
entrepreneur
To objectively evaluate the prospectus of business
To monitor the progress after implementing business
plan
To persuade others to join business
To seek loans from financial institutions
To visualize concept in terms of market availability,
organizational, operational, and financial feasibility
To guide entrepreneur in actual implementation of
plan
To identify actual strength and weakness of plan
OBJECTIVE OR IMPORTANCE OF
BUSINESS PLAN……….
To identify challenges in terms of
opportunities and threats from the external
markets.
To clarify ideas and identify gaps in
management information about their
business, competitors and market.
To identify the resources that would be
required to implement the plan
To document ownership arrangements,
future prospectus and projected growth of
the business venture.
PURPOSE OF A BUSINESS PLAN
Saves time & money
Key to raising capital
Serves as an operations guide
Keeps us focused
Explains the idea behind our business
How our product or service will be produced
and sold
sets specific objectives and how we will
achieve them
Describes the experience of the people who
will run the business
BUSINESS PLANNING PROCESS
Idea generation : is the first step in the business
planning process. This step differentiates
entrepreneur from usual business. An
entrepreneur may come up with new business
idea or may bring in value addition to existing
product in the market.
Sources of new idea for entrepreneurs are :
Consumers/ customers
Existing companies
Research and development
Employees
Dealers, retailers
Environmental scanning : once the entrepreneur is through the idea
generation stage, next entrepreneur is required to conduct environmental
scanning which includes analyzing external and internal environment that
affects business idea.
External environment comprises of :
Socio cultural appraisal : it gives brief overview about the culture and
tradition existing in society. It is comprised of values and beliefs of people
which determines the acceptance of product by customer in the market.
Technological appraisal : it assess various technological options available to
convert an idea to product. It also provides an brief overview about
technological updation.
Economic appraisal : it assess the status of the society in terms of economic
development, per capita income, national income, consumption pattern in the
business.
Demographic appraisal : it assess the population pattern of given geographic
area. Which includes sex, age profile, distribution etc.
Government appraisal : it assess the various legislation, policies, incentives
formulated for particular industry. Flexibility of these rues determine ease for
entrepreneur in terms of opening venture in particular area.
Internal environment includes :