Business

Planning &
Entrepreneurial
Management
- Prof. Diana Rayen
 What is EDP?
Meaning: Entrepreneurship Development Programme (EDP) is a programme which helps in
developing entrepreneurial abilities. The skills that are required to run a business successfully
is developed among the students through this programme. Sometimes, students may have
skills but it requires polishing and incubation. This programme is perfect for them. This
programme consists of a structured training process to develop an individual as an
entrepreneur. It helps the person to acquire skills and necessary capabilities to play the role
of an entrepreneur effectively.
EDP is an effort of converting a person to an entrepreneur
by passing him through thoroughly structured training. An
entrepreneur is required to respond appropriately to the
market and he/she is also required to understand the
business needs. The skills needed are varied and they need
to be taken care in the best possible way. EDP is not just a
training programme but it is a complete process to make
the possible transformation of an individual into an
entrepreneur. This programme also guides the individuals
on how to start the business and effective ways to sustain it
successfully.
 Need for EDP
Create Employment Opportunities

Balanced regional development

Prevent Industrial slums

Use of Local resources

Easing social tension

Economic Independence

Improves Standard of living

Overall development of nation

 Objectives of EDP
Analyze Environment

Select product

Formulate proposal for the product

Understand the process and procedure

Acquire manager skills

Decision making

Effective communication

Know the source of help

 Introduction of Entrepreneur
Meaning:
An entrepreneur is someone who starts or owns a business. Whether it’s in farming,
retail, manufacturing or in the service sector, entrepreneurs are businesspeople
who find their success by taking risks. In their pursuits, they often become
disruptors in established industries.

Definition:
Peter F. Drucker states that an entrepreneur is the
one who always searches for changes, responds to it
and exploits it as an opportunity. He further states
that innovation is the specific tool of entrepreneur, the
means by which he exploits change as an opportunity
for a different business or services.
 Features/ Characteristics of Entrepreneur
Innovator
Motivation towards achievements
Ability to handle uncertainty
Goal oriented
Emotional stability and self control
Communication ability
Future oriented
Technical ability
Self confidence
Qualities of Successful Entrepreneur
Risk taker
Hard working
Analytical mind
Dynamic leadership
Good decision maker
Self confidence
Strong desire to success
Team builder
 Functions of an Entrepreneur

Procurement of machines and materials Market research

Raising of funds Determining form of enterprise

Determination of business objectives Recruitment of manpower

Idea generation Implementation of the project

Entrepreneur
 What is Entrepreneurship?
Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise,
along with any of its uncertainties in order to make a profit. The most prominent example of
entrepreneurship is the starting of new businesses. In economics, entrepreneurship connected with
land, labour, natural resources and capital can generate a profit. The entrepreneurial vision is
defined by discovery and risk-taking and is an indispensable part of a nation’s capacity to
succeed in an ever-changing and more competitive global marketplace.

The entrepreneur is defined as someone who has the

ability and desire to establish, administer and succeed
in a startup venture along with risk entitled to it, to make
profits. The best example of entrepreneurship is the
starting of a new business venture. The entrepreneurs
are often known as a source of new ideas or innovators,
and bring new ideas in the market by replacing old with
a new invention.
 Conceptual model of John J. Kao

The person

The organization Entrepreneur The task

The Environment
Nature and characteristics of entrepreneurship

Innovation

High achievement

Managerial skill and leadership

Group level pattern

Organization building

Gap filling function

Status withdrawal
 Factors influencing Entrepreneurship

Factors
influencing
entrepreneurship

Economic factor

Cultural factor Social factor Personal factor

1. Economic Factors:

Purchasing Economic People’s

power Condition occupation
Cultural factors:

Traditional People’s
job market attitude

Business
Risk aversion
school

Spend less
Culture of
and save
customers
more

Secure jobs
 Social factors:

Social
Security Legitimacy
Mobility
 Personal factors:

Need orientation Hard work

Availability of resources Ability to manage risk

 Entrepreneur’s background

Family Environment Education

Age Physical attributes

Marital status Working history

Family contacts Professional contacts

Personal values Lifestyle

 Theories

Joseph Schumpeter – Innovation theory

David McClelland – High achievement theory

Knight – Profit theory

Hagen – Theory of social change

Lebenstien – Theory of X efficiency

Joesph Schumpeter – Innovation theory

Introduction
Innovation of Creating
to new
new product monopoly
process

Introduction New supplier

to new of raw
market materials
David McClelland – High achievement theory

Need for achievement

Need for power

Need for affiliation

 Knight – Profit theory

Pure Profit

Situation of uncertainty

Risk bearing capacity

Identification of socio-economic
and psychological factors

Use of consolidation
Hagen- theory of social change

As per Hagen entrepreneurs are

How traditional society changes

Entrepreneur as creative individuals

Brings Social change

Understands relationship between various factors

Helps in bringing economic growth

Lebenstein – theory of X efficiency

Inefficiency happens because of wastage or usage in

wrong manner

Firm fails to realize its productive potential

Imperfect market

Entrepreneurial role

Transforming available input to improved existing

output
MODULE 2
 Introduction of intrapreneur
What is Intrapreneur?
An intrapreneur is an employee of an organization who's responsible for developing or working on an
innovative business endeavor, such as a product or marketing idea that can help the organization reach
its business goals. The word "intrapreneur" means "internal entrepreneur," meaning they play an
entrepreneurial role within a company. Intrapreneurs don't run their own businesses, but like
entrepreneurs, they develop and guide their endeavors as they see fit. Working for an established
organization, they have access to financial, material and personnel resources to help them realize their
ideas.
What do intrapreneurs do?
The primary goal of the intrapreneur is to
generate innovative ideas on behalf of
their organization. This innovation can
relate to new products, new methods or
new applications for existing processes or
tools. Successful intrapreneurs tend to
think creatively and experiment with ways
to disrupt established practices.
 Characteristics of Intrapreneur

Innovative ideas Encourage experimentation

Initial opportunity Encourage teamwork

Evaluation No force

Reward Alteration

Support top management

 Problems faced by women entrepreneurs

Family responsibility

Social attitude

Low mobility

Lack of education

Low need for achievement

Shortage of finance

Shortage of raw material

Stiff competition
 What is self- help group?

❖ A self-help group is a financial intermediary committee usually composed of 10 to 25

local women between the ages of 18 and 40. Most self-help groups are in India, though
they can be found in other countries, especially in South Asia and Southeast Asia.

❖ Self-help Groups (SHGs) are informal associations of people who come together to find
ways to improve their living conditions. They are generally self-governed and peer-
controlled.

❖ People of similar economic and social backgrounds associate generally with the help of
any NGO or government agency and try to resolve their issues, and improve their living
conditions.

❖ The origin of SHGs in India can be traced back to the establishment of the Self-
Employed Women’s Association (SEWA) in 1972.
Importance /Need for Self-Help group

To mobilise resources

To uplift poor

To develop entrepreneurship
To create awareness about rights

To use local resources

To build teamwork

To develop leadership

To organise training
 Need for NGO’s

Create Encourage Combat manmade

awareness rehabilitation Crisis

Protect human Protect Gainful

rights Environment Employment
Importance of Social entrepreneurship

Identification of underutilised resources

Open approach

Create values

Social development

Effects on economic growth

Social order

Equitable society

Promotes consumption of merit goods

 Business process outsourcing (BPO)

Advantages Disadvantages
o Focus on core activities o Risk of exposing confidential data

o Reduction in cost o Delays in delivery

o Lower investment o Hidden cost

o Quick delivery o Lack of customer focus

o Growth of entrepreneur

o Corporate image

o Risk sharing
 Meanings:

Franchising:
A franchise (or franchising) is a method of distributing products or services involving a franchisor,
who establishes the brand’s trademark or trade name and a business system, and a franchisee,
who pays a royalty and often an initial fee for the right to do business under the franchisor's name
and system. Technically, the contract binding the two parties is the “franchise,” but that term more
commonly refers to the actual business that the franchisee operates. The practice of creating and
distributing the brand and franchise system is most often referred to as franchising.

Merger:
A merger is a business deal where two existing, independent companies combine to form a
new, singular legal entity. Mergers are voluntary. Typically, both companies are of a similar size
and scope and both stand to gain from the transaction.
Mergers happen for a variety of reasons: They can allow each company to enter a new market,
sell a new product, or offer a new service. They can also reduce operational costs, improve
management, change pricing models, or lower tax liabilities. Ultimately, companies merge to
increase size, scale, and revenue. In other words, mergers help companies make more money.
 Meanings :
Acquisition:
An acquisition is a transaction in which one company purchases most or all of another companyʼs shares
to gain control of that company. Acquisitions are common in business and may occur with or without the
target companyʼs approval. Thereʼs o en a no-shop clause during the process of approval.
Most people commonly hear about the acquisitions of large well-known companies, but mergers and
acquisitions (M&A) occur more regularly between small- to medium-sized firms than between large
companies.

Takeover:
A takeover occurs when one company makes a successful bid to assume control of or acquire another.
Takeovers can be done by purchasing a majority stake in the target firm. Takeovers are also commonly
done through the merger and acquisition process. In a takeover, the company making the bid is the
acquirer and the company it wishes to take control of is called the target.
Takeovers are typically initiated by a larger company seeking to take over a smaller one. They can be
voluntary, meaning they are the result of a mutual decision between the two companies. In other cases,
they may be unwelcome, in which case the acquirer goes a er the target without its knowledge or some
times without its full agreement.
Advantages of franchising:

Cover more territories

Support from entrepreneurs
Rapid growth
royalties
Entry barriers
Easier to manage
Less investment
 Benefits of merger, acquisition and takeover:

Internal growth

Increase efficiency and productivity

Increase market values and shares

Optimum use of resources

Prevent loss making

Overcome managerial inefficiency

Entry to new market