Entrepreneurship

These two additional years will equip learners with skills that
will better prepare them for the future, whether it be:
 Employment

 Entrepreneurship

 Skills Development (Further Tech-Voc training)

 Higher Education (College)

 COURSE OUTLINE
1.Relevance of entrepreneurship
2.Developing a Business Plan
3.Market Need Analysis
4.Marketing Mix (4Ps plus 3 Ps)
5.The 4Ms of Operations
6.Implementing a Simple Business Plan
 EXPECTED OUTPUT

Design a Business Plan

 Entrepreneurship
a process of actions of an entrepreneur who is a
person always in search of something new and
exploits such ideas into gainful opportunities by
accepting the risk and uncertainty with the
enterprise.

exploration of career opportunities

 According to George Glider –
From “The Spirit of the Enterprise”
 “It is making the World forever NEW.
 It is taking AGGRESSIVE Actions.”

According to Joseph Schumpeter

“It is destroying the old order

and creating new ones.”
THREE COMPETENCIES OF THE
COMPLETE ENTREPRENEUR (O3I3)

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Characteristics of
Entrepreneurship:
 1. Economic and dynamic activity:
 Entrepreneurship is an economic activity because
it involves the creation and operation of an
enterprise with a view to creating value or wealth
by ensuring optimum utilization of scarce
resources.
 2. Related to innovation:
 Entrepreneurship involves a continuous search for
new ideas. It is a continuous effort for synergy
(optimization of performance) in organizations.
3. Opportunity potential:
“Opportunity potential is the likely level of return or
compensation to the entrepreneur for taking on the risk of
developing an idea into an actual business venture.”
Without opportunity potential, the efforts of entrepreneurs
would remain only an abstract and a theoretical leisure
activity.
 4. Risk bearing:
 The essence of entrepreneurship is the ‘willingness to
assume risk’ arising out of the creation and
implementation of new ideas. New ideas are always
tentative and their results may not be instantaneous
and positive.
Developing an
Entrepreneurial attitude
Characteristics

Being an entrepreneur requires specific characteristics and skills

that are often achieved through education, hard work, and
planning.

Risk Taker
Businesses face risk. Entrepreneurs minimize risk through
research, planning, and skill development.

Perceptive
Entrepreneurs view problems as opportunities and challenges.

Curious
Entrepreneurs like to know how things work. They take the time
and initiative to pursue the unknown.
Imaginative
Entrepreneurs are creative. They imagine solutions to problems that
encourage them to create new products and generate ideas.

Persistent
True entrepreneurs face bureaucracy, make mistakes, receive criticism,
and deal with money, family, or stress problems. But they still stick to
their dreams of seeing the venture succeed.

Goal-setting
Entrepreneurs are motivated by the excitement of staring a new
business. Once achieved, they seek out new goals or ventures to try.

Hardworking
Entrepreneurs need a great deal of energy to see a venture start and
succeed. Yet they are not deterred by the long hours to achieve their
goal.
Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes care
of any doubts they may have.

Flexible
Entrepreneurs must be flexible in order to adapt to changing trends,
markets, technologies, rules, and economic environments.

Independent
An entrepreneur’s desire for control and the ability to make decisions
often makes it difficult for them to work in a controlled environment.
Entrepreneurial Process:

 Entrepreneurship is a process, a journey,

not a destination; a means, not an end.
 BUSINESS PLAN
 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
 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.
 Idea generation

Environmental scanning

Feasibility analysis

Project report preparation

Evaluation, control and review

 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.
1. 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.
2. Internal environment :
• Raw material : it refers to in terms of availability of raw material required
for the process of production. If the material availability is at distance
place and is very expensive then entrepreneur should give second thought
to the same.
• Production/ operation : it assess the availability of various machineries,
equipments, tools and techniques that would be required for production.
• Finance : it studies total requirement of finance in terms of start up
expenses, fixed expenses, running expenses etc.
• Market : refers to study on potential customer and target customers in
market.
• Human resource : refers to demand and supply of required human
resource in market and estimation of expenses to be incurred on human
resource.
 Feasibility analysis : refers to conducting detailed analysis in
relation to every aspect relevant to business and determining
credibility of business.
• Market analysis : is conducted to estimate the demand and market
share for proposed product and service in future. Demand and
market analysis is based on factors like consumption pattern,
availability of substitute goods and services etc.
• Technical and operational analysis : is to assess operational ability
of proposed business enterprise. Technical or operational analysis
collects data on following parameters :
1. Material availability
2. Material requirement planning
3. Plant location
4. Plant capacity
5. Machinery and equipment.
• Marketing plan : lays down the strategies of marketing which can lead to
success of business plan. Strategies are in terms of marketing mix which
includes ( product, price, place, promotion, people, packaging and
positioning ) which determines the potential demand of customers for
product in the market.
• Production plan / operational plan : production plan is drafted for
manufacturing sector where as operation plan is designed for business into
service sector. It comprises of strategies on parameters such as location
layout, cost, availability of material, human resource etc.
• Organizational plan : defines type of ownership pattern in company, sole
trading concern, family business, private or public limited company etc.
• Financial plan : financial plan indicates the requirement of proposed
business enterprise. Which includes fund flow, cash flow statement, break
even point, projected ratio, projected balance sheet.
 Project report preparation : project report is a
written document that describes step by step
strategies involved in starting and running business.
 Evaluation , control and review : as company
operates in dynamic environment company has to
monitor and review strategies and policies to stay in
line with competition existing in market.
STEPS INVOLVED IN MARKET RESEARCH
 STEPS IN MARKETING RESEARCH
 Defining the purpose or objective : it refers to entrepreneur
should be clear nature of information required by the business,
sources through which required data will be collected, whether
required data will be from primary or secondary source of
information.
 Gathering data from secondary sources : secondary source
of information refers to data available about competitors
strategy and their position in the market. Required information
on competitors is available through magazines, new papers,
libraries etc.
 Gathering information from primary source :
primary data required for market research is collected
through methods such as observation, networking,
interviewing, focus group, exhibition etc.
 Analyzing and interpreting results : results should
be evaluated and interpreted depending on the
objective of research process. Summarizing results
will provide in preliminary insights about competitors
market position and their image in competitive
environment.
 CHARACTERISTICS/ IMPORTANCE OF
MARKET PLAN
 it should provide strategy for accomplishing the company
mission and goal.
 It must provide for the use of existing resources and allocation
of all equipment , financial resources, human resources in
company.
 It should provide for continuity so that each annual marketing
plan can successfully meet long term goals and objectives of
company.
 It should be simple and specific in nature so as to provide
appropriate road may in terms of planning market strategy for
company.
 It should focus on criteria to be evaluated to assess market
success of the company.
MARKET PLAN
 STEPS IN PREPARING MARKET PLAN
1. Defining business situation refers to understand past and
present business achievements of new venture. It give basic
insight about scenario persisting in market, response of
customers to new venture in market, and helps in predicting
customer acceptance of company product in market.
2. Defining target market : target market refers to group of
potential customers towards which venture aims its market
plan. Knowledge of target market will provide basis for
determining appropriate market action strategy to meet needs
of customers. Target market also includes market
segmentation which involves process of dividing market into
definable and measurable groups for purpose of targeting
market strategy.
3. Considering strength and weakness : strength of
business refers to core areas which company is
specialized in which may be abundance experience of
company in similar area of business and weakness
may be in terms of production capability, or layout
which permits limited space for equipment and
operation.
4. Establishing goals and objectives : marketing goals
of the company should be clear and specific in nature
as it has to clearly indicate about nature of product,
target customers ,sales promotion , advertising
support etc.
5. Defining market strategy and action program : it refers to
specific activities outlined to meet the venture , business plan
objectives and goals.
a. Product and service : indicates description of product or service to
be marketed in the new venture.
b. Pricing : refers to price to be charged for product in market before
which company is required to consider various aspects such as cost,
margin , competition etc.
c. Distribution : refers to means through which product will be made
available to customer in market which involves decision relating to
nature of product, distribution channel, middlemen etc.
d. Promotion : refers to various channels through which entrepreneur
will advertise company product to customers in market.
6. Marketing strategy : it involves understanding the nature of
product and accordingly planning in for marketing product.
Entrepreneur may market consumer product directly to
customers while manufacturing products are to be sold to
business than customers in market. Dell computers markets its
products both to customers as well as business people.
7. Budgeting marketing strategy : after drafting marketing
plan entrepreneur is required to estimate total expenses to be
incurred in process of implementing market plan. Expense of
marketing plan should be in line with planned expense of
entrepreneur.
8. Implementation of market plan : market plan should be
implemented in the company , should be informed to the
workforce involved in marketing activity , it acts as guiding
element to direct on strategies which will make marketing
process effective.
9. Marketing progress of marketing actions : marketing of
plan involves tracking specific results of marketing effort.
Sales data of product, data gathered by market survey are few
methods of monitoring progress of market plan.
 PRODUCTION PLAN

 Production plan is the process of converting the input into

output through a conversion process. The inputs are in the
form of land, labour, raw material, machinery, capital and
information. Transformation takes place through machinery in
manufacturing unit and through employees skills in service
sector.
 ORGANIZATIONAL PLAN
 Organizational plan involves deciding form of ownership that
entrepreneur intends to enter. Nature of planning , organizing,
leading and controlling will be determined by nature of
business or form of ownership.
 FINANCIAL PLAN
it studies total requirement of finance in terms of start
up expenses, fixed expenses, running expenses etc.
financial plan indicates the requirement of proposed
business enterprise. Which includes fund flow, cash flow
statement, break even point, projected ratio, projected
balance sheet.
For your time and
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attention.
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