ENTREPRENEURSHIP
Entrepreneurship the process can be broadly understood by analyzing the following topics;
(1) Concept
(2) Entrepreneurial characteristics
(3) Effective Entrepreneurial Approach
(4) Effective Business Plan
(5) Entrepreneurship for economic developments
CONCEPT
Entrepreneurship leads to transform a person to do business by utilizing his powers (known as 5 M’s)
These are (I) Manpower (ii) Material Power (iii) Money power (IV) Machine Power (v) Marketing Power.
These powers are utilized by promoting products or services at particular prices, places, or places by utilizing promotional strategies.
ENTREPRENEURIAL CHARACTERISTICS
An entrepreneur is a person who wants to project himself by learning, earning, and farming. Entrepreneurs are those persons who want to do something new for society for self-satisfaction. They are tough pragmatic people driven by the need for independence and achievements.
Entrepreneurial characteristics are substantially different for different activities like,
Target market
New innovation
Venture capital involved
Solo enterprise or major undertakings
These can be described as follows:
(i) Cottage Scale Entrepreneur starts with small funding ventures and slowly progresses, and remain satisfied with it, few do try to cross the barrier and diversify into new dimensions.
(i) Entrepreneurs who promote new innovations into the market are more fame-seeking characteristics. They can also be categorized as innovators, overoptimistic promoters, and organization builders.
(ii) Having a high financial target in mind establishes firms and prepares a team to work together,
They are prone to overconfidence and overgeneralization.
(iii) Some projects are on time-based commercial assignments. Entrepreneurial characteristics for these types are of varied venture capabilities and can take-up risks for the future. They are opportunistic.
EFFECTIVE ENTREPRENEURIAL APPROACH
Methods for Effective Entrepreneurial Approach can be categorized as follows:
(i)Decision of the objective is the first factor that determines the “Effective Entrepreneurship”
These can be of the following types:
· Establishing Manufacturing Unit
· Providing Services
However, either of the objectives needs venture capital hence objective has to be within that limit.
(ii) Preparing an Effective Business Plan either on the paper or conceiving the same in the mind (if the business is a home-based or cottage-based unit or of other types) for achieving a particular goal.
EFFECTIVE BUSINESS PLAN
The plan is to categorize the needs of 5M’s and allocating them to different segments of the business
These can be categorized as follows:
(I) Business description
(II) Business environment analysis
(III) Industrial background
(IV) Market Analysis
(V) Marketing Plan
(VI) Competitors analysis
(VII) Operation Plan
(VIII) Financial Plan
(IX) Management Summary
Business description
What problem/need of the society do the venture’s products/services fulfill?
What niche will it fulfill?
Business environment analysis
What are the government policies related to rules and regulations for the business?
How the entrepreneur will meet these rules, and take benefit if any being offered by the government for this type of business?
How an entrepreneur can diversify into other ventures, with the help of existing business in the future?
Industrial background
Entrepreneurs should have a clear projection of the industrial sector under which entrepreneurs will cover and grow their business.
How technological innovations will support the business in this category? Etc.
Market Analysis
Who are the venture’s target customers and how the business unit will sell its products to them?
What are the exact needs of the customers in the present and future time cycle, how business is to meet these needs?
What is the size of the market for the product being offered to it?
Marketing Plan
Decide a particular segment for the business,
Identify its exact requirements
Decide how to fulfill these requirements by-products or by services? By doing whole selling or retailing?
Competitor’s analysis
Identify who are the business venture’s competitors? How much is their 5 M’s strength? How entrepreneur will match these types of strength. What is the business segment for what niche of the market?
Operation Plan
Who will lead the business? Whether Entrepreneur will be the leader by himself or recruited leaders for the same?
Operation the plan should include different rules, policies of the business venture as well as future plan categorizing different segments of the venture, etc.
Financial Plan
It is required to do financial planning for the arrangement of capital by starting the enterprise.
Deciding different segments of the business and allocating different resources as per the business plan.
For the execution of the project, it is required to arrange financial resources as per the prepared business plan.
Management Summary
Clear projections of the following:
What are the risks and threats confronting the business and what can be done to mitigate them?
What are the company’s capital and resource requirements?
What is a business plan? Because high ventures need a classification of usage for the plan.
What is the strategy for the implementation of the plan? Arranging and allocating funds, fulfilling other requirements, etc.
ENTREPRENEURSHIP FOR ECONOMIC DEVELOPMENTS
Promotion of Entrepreneurship leads to the creation of entrepreneurs, who meet their target by making use of countries 5M’s Resources. The usage leads to results of products and service distribution to the society. Entrepreneurship also leads to employment generation for the self and for others as well.
Economic growth takes place due to growth in 5 M’S. Entrepreneurship tendency leads to the formation of business enterprise, which needs effective usage of 5M’s mentioned resources, hence leads to Economic growth of society and in general growth in per capita income, because growth comes by the exchange of these resources.
All over the world, different countries’ Governments are taking steps for promoting entrepreneurship e.g. In India Entrepreneurial Desired is being prompted by including Entrepreneurship Promotion subjects in the curriculum. Also, cottage scale units and small scale units are being promoted by “Consultancy and Entrepreneurship Development Cell “etc.
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