ENTREPRENEURIAL PERSONALITY

Prof. P. S. Francis SFIMAR

Objectives
. . .
.
To understand the process of motivation.
Differentiation between affiliation, power and achievement motives. Distinction between achievement motivation and entrepreneurial motivation. Qualities of an entrepreneur.

Achievement motivation
 An urge to excel  Desire to achieve success in competition with self (previous performances)  Desire to achieve success in competition with others( role models)  Long term goals and long term achievement (consistent efforts)  Unique accomplishment  Perfection and excellence  (McClelland his famous book’ The achieving society’
defines achievement motivation as a desire to do well’ not so muchfor the sake of social recognition but to achieve an inner feeling of personal accompleshment.

leadership and control  Individual with a high need for achievement are innovative and creative trend setters. authority and control over situations and people.Other motives identified by McClelland Affiliation Motive (N Aff personality) Power Motive (N Pow personality) N stands for intense need. They strive hard to achieve standards of excellence in performance and related situations.     . An individual with high need for Affiliation is concerned with maintaining an effective relationship with others.  Individual with high power motive have a strong desire to exert dominance.

.The process of motivation      First stage : Behavior is caused (Need arousal) Second stage: Behavior is motivated(Motive) Third stage : Behavior is goal.oriented (process) Inner state of disequilibrium needs  Behavior or goals  Incentive or goals and feed back.

 All ideas will be respected and not evaluated. Keep ideas brief. do not tell stories .Achievement planning  All members of the group must participate. All ideas are equally valid at this point. the better. The more ideas. Do not criticise or judge.  No idea should be blocked.  The ideas should not be detailed.  Ideas already mentioned must be avoided. Be creative.

 Macro Screening helps to do a first selection.Qualities of an entrepreneur  The Macro Screening is a very important step positioned between the project idea generation and the final decision about the most promising business idea. it’s like pouring all these ideas into a funnel. .

 It adds quality to the selection process by adding different parameters related to economic judgements (market. weaknesses. hence being the crucial nexus between these two. . threats). skill availability. etc. opportunities. technology.).Micro screening  The Micro Screening links the macro screening with the SWOT Analysis (strengths.

3 – average . 0 – absent Critical success factors: write text . 4 –high . 2 – fair.Micro Screening Table PROJECT good or service Solvent demand Availabilit y of qualified personnel Availabilit y of technolog y/ equipmen t Availabilit y of raw material TOTAL Competit ors Corrected TOTAL Critical success factors (+) (+) (+) (+) (=) (-) (=) Scoring system: 5 – extremely high . 1 – poor.

SWOT analysis  The SWOT Analysis (strengths. weaknesses. . opportunities. threats) is based on these concrete project ideas.  It is quite a simple but very powerful tool which enables the participants to do a proper comparison of the last three projects remaining after the micro screening process.

Innovation Life Cycle Process  Ideation  Concept development  Evaluation (business and technical)  Commercialization  Improvement innovation .

Business plan based on Entrepreneurship The business idea Business areas .

What is outline of your business plan? Please divided in the working groups and find the standard outline of a business plan – 5 min. .

HOW to prepare a Business Plan? . WHAT is a Business Plan? 2.For preparing a Business Plan we must answer a following questions: 1. WHO needs a Business Plan? 3.

and prepare for problems and opportunities.  A business plan is any plan that works for a business to look ahead. .  Businesses need plans to optimize growth and development according to priorities. focus on key points.  A business plan is like a map and a compass for a business.1. allocate resources. What is a business plan?  Business planning is about results.

Business plan mini-plan working plan prezentation plan .

operational plans .growth plans .feasibility plans and many other names.investment plans .annual plans .product plans .strategic plans .expansion plans .internal plans .The Different Types of Business Plans Business plans are also called: . .

Who needs a business plan?  You need a business plan if you’re running a business. new products or new services. .  You need a business plan if you’re looking for business investment.2.  You need a business plan if you’re applying for a business loan.  You need a business plan to communicate with a management team.

3. How prepare a business plan? .

and financial analysis. includes a standard set of element.  Your plan will depend on your specific situation. . but generally a plan will include components such as descriptions of the company. forecasts. market.Is There a Standard Business Plan?  A normal business plan. Plan formats and outlines vary. product or service. management team.

demand for the product ownership of the business . . delivery. .dissemination and competitive strenght ..condensed information on each of-the chapters bellow type of business.income statement. .-identification balance sheet.cash flow strategy.break-even analysis. consideration. .Outline of a business plan Executive summary Business description: products and services offered Market strategies Competitive analysis and positioning Operations and management plan Financial components . offered.profitabilityof promotion. -. position. sources.competitionstructure. . . .pricing projection. .products and services .market and target market.management team. or service.capital requirements and and its legal analysis.operations plan. . . .

administration. interests groups. . marketing advice  Figures  Tables  Graphs  Other sectors advice: research institutes. other key innovation areas.legal advice.Annex  Business aspects advise: adresses for financing advise.

Not Just a Plan .Planning is a Process.

Successful implementation starts with a good plan     Is Is Is Is the the the the plan plan plan plan simple? specific? specific budgets? realistic? complete?. .

or expansion. promotion.  Create regular business review and course correction.  Define agreements between partners. .  Support a loan application.Preparing a business plan  Define and fix objectives.  Define a new business.  Evaluate a new product line.  Set a value on a business for sale or legal purposes. and programs to achieve those objectives.

it should provide a forum for regular review and course corrections. and deadlines to guide your business.Keys to Better Business Plans  Use a business plan to set concrete goals.  A good business plan assigns tasks to people or departments and sets milestones and deadlines for tracking implementation.  Good business plans are practical. .  As part of the implementation of a business plan. responsibilities.

Individual GANTT Chart Table (example) 2/99 Activities Seek legal advice Choose land and buy Plan plant layout Finalise loan Register Order machines Prepare plant Advertise Recruit personnel Install machines Trial production Open business ++++ + ++++ + ++++ + ++++ + ++++ + ++++ + ++++ + Months 3/99 4/99 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 1/00 .

 Nobody reads a long-winded business plan: not bankers. nor venture capitalists. .Business Plan "Don'ts"  Don't use a business plan to show how much you know about your business. Years ago. bosses. people were favorably impressed by long plans. nobody is interested in a business plan more than 50 pages long. Today.

 A 20-page plan with dense text and no graphics is much longer than a 35-page plan broken up into readable bullet points.How Long Should a Business Plan Be?  Page count is not a good way to measure length. Main points should show up in a business plan as quickly as they do in a business presentation. and illustrations make a big difference.  A good business plan should leave a reader a good general idea of its main contents even after only a quick skimming. white space. useful illustrations of locations or products. in 15 minutes. headings. browsing the main points. and business charts to illustrate important projections. Summaries are very important.  Format. .

 Does it include detailed research.  Is it worded to withstand legal scrutiny as part of an investment proposal. . drawings.  Does it need an executive summary good enough to stand alone.The right length of the plan depends on the nature and purpose of the plan  Will it include descriptions of the company and management team for outsiders to read. and blueprints. plans.

BUSINESS PLAN Standard Outline .

It's just a page or two of highlights.EXECUTIVE SUMMARY  Brief Description of the Project  Brief Profile of the Entrepreneur  Project's Contributions to the Economy  Write this last. .

Section 1MARKETING PLAN             Description of the Product Comparison of the Product with Its Competitors' Location Market Area Main Customers Total Demand Market Share Selling Price Sales Forecast Promotional Measures Marketing Strategy Marketing Budget .

Future Capacity  Terms and Conditions of Purchase of Equipment  Factory Location and Layout  Raw Materials Needed . life of fixed capital)  Planned Capacity .Cost of Raw Materials Raw Materials Availability  Labour  Cost of Labour  Labour Availability .Section 2 PRODUCTION PLAN  Production Process (fixed capital.Labour Productivity  Factory Overhead Expenses  Production Cost .

Section 3 ORGANIZATION & MANAGEMENT PLAN  Form of Business  Organisational Structure  Business Experience and Qualifications of the Entrepreneur  Pre-Operating Activities  Pre-Operating Expenses  Office Equipment  Administrative Expenses .

Section 4 FINANCIAL PLAN           Project Cost Financing Plan and Loan Requirement Security for Loan Profit and Loss Statement Cash Flow Statement Balance Sheet Loan Repayment Schedule Break-even Point (BEP) Return on Investment (ROI) Financial Analysis .

 When a business plan is being worked out. there are too many big questions. that are far too important to be left to someone else who claims that he can spare the entrepreneur the trouble of preparing his own business plan .no one can do it better than you! . the answers of which only the entrepreneur can know.

strategies.  Comprehensive business planning increases the likelihood of the venture’s success. actions and expected results.  Use it to establish the points along the route. . tactics.Summary  A proper business plan serves as a map. indicating why each is important and how it can best be reached.  The plan builds from mission and value to justification.

Every business need an innovation engine to generate the great ideas that will propel the business forward into the future. Thank you for attention! .

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