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Entrepreneurship

The document provides an introduction to entrepreneurship, including definitions of entrepreneurs and the entrepreneurial process. It discusses how entrepreneurs take risks to start and grow businesses. The entrepreneurial process is divided into three or four steps: opportunity identification and evaluation, business plan development, determining required resources, and managing the new enterprise. The document also covers types of entrepreneurs, stages of the entrepreneurial process, the role of entrepreneurs in economic development, creativity and innovation, and outlines for business plans.

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Martha Ratna
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27 views5 pages

Entrepreneurship

The document provides an introduction to entrepreneurship, including definitions of entrepreneurs and the entrepreneurial process. It discusses how entrepreneurs take risks to start and grow businesses. The entrepreneurial process is divided into three or four steps: opportunity identification and evaluation, business plan development, determining required resources, and managing the new enterprise. The document also covers types of entrepreneurs, stages of the entrepreneurial process, the role of entrepreneurs in economic development, creativity and innovation, and outlines for business plans.

Uploaded by

Martha Ratna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to Entrepreneurship

What is an Entrepreneur ?
- He or she is an individual who takes risk actively form or lead their own business
and nurture them for growth and prosperity
- The word ‘entrepreneur’ is derived from the French word ‘enterprendre’ which
means “to undertake” and literally translated means “between-taker” or “go-
between”

Are Entrepreneurs Born, Made or Both?


Are Entrepreneurs People That Make a New Company / Business or People Who continue
their family businesses?

What is the Entrepreneurial Process ?


The process of pursuing a new venture or business, creation of a totally new organization
regardless of either new product going into an existing market or existing product going
into a new markets.

Entrepreneurial process can be divided into three steps:


- First Entrepreneurial Process
- Second Entrepreneurial Process
- Third Entrepreneurial Process

Introduction to Entrepreneurship
1. First Entrepreneurial Process:
Process of creating something new with value of devoting the necessary time and
effort.

2. Second Entrepreneurial Process:


Requires the commitment of the necessary time and effort. Appreciate and
understand the importance of time and effort devoted to create something new and
make it workable with accompanying financial, psychic and social risk.

3. Third Entrepreneurial Process:


Involves the enjoyment of the rewards (Freedom, monetary) after the effort,
followed by personal satisfaction.

Introduction to Entrepreneurship
The Entrepreneurial Process divides into four distinct process:
- Identification and evaluation of the opportunity
- Development of the Business Plan
- Determination of the required resources
- Management of the resulting enterprise

Type of Entrepreneur
Stages of Entrepreneurial Process
- Conducting opportunity analysis
- Developing the plan and setting up the company
- Acquiring financial partners and sources of funding
- Determining resources required and implementing the plan
- Scaling and harvesting the venture

Role of Entrepreneurs in Economic Development


- Capital formation
- Generation of employment
- Improvement in per capita income
- Reduces concentration of wealth
- Balanced regional development
- Resource mobilization
- Improvement in standard of living
- National self-reliance
- Harnessing natural resources
- Backward and forward linkages
- Sense of purpose

Creativity & Innovation


Innovation and Entrepreneurship

Schumpeter firmly expressed his opinion that the function of entrepreneurship is


innovation
- New product
- New technology
- New process of production methods
- New markets
- New sources and supply
- Industrial reconstruction method

The Business Plan


- Will take more than 200 to 300 hours to prepare
- Depending upon the experience and knowledge of the entrepreneur

The detail outline of the business plan is as follows:


- The Business Plan
1. Introductory Page
- Name and address of the business, entrepreneur
- Nature of the business
- Statement of financing need
- Statement of confidentiality of report
2. Executive Summary
- This summary should be at least four pages that summarizing the complete business
plan
3. Industry analysis
- Future outlook and trends
- Analysis of competitors
- Market segmentation
- Industry forecasts
4. Description of ventures
- Product
- Services
- Size of business
- Office equipment and personnel
- Background of entrepreneurs
5. Production plan
- Manufacturing process
- Physical plant
- Machinery and equipment
- Names of suppliers of raw materials
6. Marketing plan
- Pricing
- Distribution
- Promotion
- Product forecast
7. Organizational Plan
- From of ownership
- Identification of partners or shareholders
- Authority of principals
- Management team background
- Roles and responsibilities of members of organization
8. Assessment of risk
- Evaluate weakness of business
- New technologies
- Contingency plans
9. Financial plans
- Pro forma income statements
- Cash flow projections
- Pro forma balance sheet
- Break-even analysis
- Sources and applications of funds
10. Appendix
- Letters
- Market research data
- Leases / contract
- Price lists from suppliers
- Designed to guide the entrepreneur through first year of operations
- Planning is essentially significant part of any business operations
11. Absence of planning
- Entrepreneur is likely to spend high cost
- Employees will not understand the company’s goals
12. Sources of information
- Small business administration
- Department of commerce
- Bank
- Trade associations
- Trade journals
- Libraries

The company description section of your business plan is typically the second section, coming after the
executive summary.The company description outlines vital details about your company, such as where
you are located, how large the company is, what you do, and what you hope to accomplish.

Key Takeaway

A company description is an overview of the company's plan, vision, and relationships. These documents
typically include the company ' s name, business structure, mission statement, and an overview of the
target market. A good company description is clear and concise, and you can leave out many of the
specifics that your business plan covers elsewhere.

Research and Development (R&D) is a systematic and investigative process that organizations,
institutions, and individuals undertake to create new knowledge, products, or technologies or to
improve existing ones.
R&D allows a company to stay ahead of its competition. Without an R&D program, a company may not
survive on its own and may have to rely on other ways to innovate.

Example of R&D

- One example of R&D would be a pharmaceutical company testing a new drug. The company
would first conduct research to see if the drug is effective and safe. If the research shows
that the drug is effective and safe, the company would then develop a plan to mass-produce
and market the drug.

Technical Partners

Technical Partners refers to partners or parties who have technical expertise in various technical
aspects, such as engineering, design, manufacturing, or technical knowledge relevant to a particular
project. Technical partners can assist in many technical aspects of the project, including product
development, technology implementation, and general
technical support.

Types of Research and development

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