Parameters Entrepreneur Manager

Meaning An entrepreneur is a person who By the term ‘manager’ we mean

Focuses on
Status in organisation
Kind of benefit applicable
builds a new organisation by a person who gets the things
gathering data (i.e. land, labour done through his assistants, with
and capital) for manufacturing the purpose of achieving
purposes business goals efficiently.
Setting up a business Running the daily operations
Owner  Employee
Profit earned from running Salary earned from managing
business daily business operations

Entrepreneur
Entrepreneur is referred to as the person who is responsible for building an organisation by accumulating the
various factors such as labour, land and capital. An entrepreneur takes all the business risk with the objective
of gaining profit.

Manager
The term manager represents a person who has the ability to get his work done with the help of assistants.
The objective of a manager is to achieve business goals in an effective way. The manager serves the principal
functions in a business organisation which are planning, directing, organising, motivation, controlling, and
coordination. 

What is a business plan?

A business plan is a documented strategy for a business that highlights its goals and
its plans for achieving them. It outlines a company's go-to-market plan, financial
projections, market research, business purpose, and mission statement. Key staff who
are responsible for achieving the goals may also be included in the business plan
along with a timeline.

he purpose of a business plan is three-fold: It summarizes the organization’s

strategy in order to execute it long term, secures financing from investors, and helps
forecast future business demands.
Things to be learn :

Don’t push adjectives. Let me assign my own. This year for every plan that
really looks like it might be disruptive or game changing I saw 20 or so that
claimed to be.

Tell stories. A story tells market need way better than general market
numbers. Write about problems you solve and who has them, how you
solve them, and why you do it better than anybody else.

I want a forecast that starts with specifics like channels or traffic and
conversions or segments and builds up. I hate the forecast that assets
some huge market and takes a small percentage of it. It seems like every
time I read “this is a $X-billion-dollar market” the surrounding discussion
lacks depth and credibility.

I want unit economics. Often this is part of a good forecast. Tell me what it
costs to produce one unit, what the channel pays for it (if channels are
relevant) or what the buyer pays for it, what it costs to ship, and so on.

I want realistic expenses. Most plans are pretty good about estimating
direct costs but bad about underlying expenses. You can’t have a $20
million sales estimate with 10 employees in the company and a few
hundred thousand dollars of marketing expense. It just doesn’t happen.

Never write that you have no competition. Having no competition means

one of two things: either your business sucks, or you haven’t done your
homework and you don’t know your business. Even the most amazing
disruptive game-changing plans have competition. If not now, then
tomorrow. Who’s going to enter this market?

I want good positioning. Don’t try to please everybody. Start with a

relatively narrow product-market fit and, if you can, move it gradually up
to more markets and more segments. Explain in your plan which segment
is first and why. Explain who you’re leaving out of your market and why.

I want to see basic numbers. I expect projected monthly income, balance,

and cash flow for the next year and annual projections for the second and
third year. And I want to see them, as in useful business charts, but I want
to be able to see the numbers in detail too.

I want to see milestones: dates and deadlines. And progress made. What
have you actually done in the recent past? Write about achievements.

By far the best validation of a plan is actual sales made already. People
have written checks. Second best are letters from future customers
promising future business.

(Bonus point) Don’t muck it up with too much science. It’s not a research
plan, it’s a business plan. Summarize the science so I have some idea and
then tell me about the business.

(Bonus point) Don’t let the document get in the way. I don’t want to think
about formatting or editing, I want to read your stories and imagine your
future. Keep it moving and keep my mind on the business, not the
misspellings or repetitions.

An entrepreneur is an individual who creates and grows a business

through their creative ideas. Entrepreneurs play key roles besides
generating income as they grow their businesses. An entrepreneur
identifies a commercial need in their community, crafts a business
idea and takes the lead role to start their business

Importance of Entrepreneurship
Entrepreneurship drives the growth and diversification of the economy
and contributes to the creation of wealth. Before we get into the
specifics of the role of entrepreneurship in economic development,
let’s briefly encapsulate its significance. Entrepreneurship’s
importance lies in the following: 
Drives economic growth and creates new job 
Encourages innovation by bringing new ideas, products, and services
to the market 
Contributes to social change by developing products or services that
reduce people’s dependence on outdated technologies 
Addresses social and economic problems by creating solutions that
meet the needs of society
Enables competition which improves business efficiency and lowers
prices for consumer

Role of Entrepreneurship in Economic

Development
1. Raises Standard of Living
A significant role of entrepreneurship in economic development is that
it can greatly enhance the standard of living for individuals and
communities by setting up industries and creating wealth and new
positions. Entrepreneurship not only provides large-scale employment
and ways to generate income, it also has the potential to improve the
quality of individual life by developing products and services that are
affordable, safe to use, and add value to their lives. Entrepreneurship
also introduces new products and services that remove the scarcity of
essential commodities. 
2. Economic Independence
Entrepreneurship can be a path to economic independence for both
the country and the entrepreneur. It reduces the nation’s dependence
on imported goods and services and promotes self-reliance. The
manufactured goods and services can also be exported to foreign
markets, leading to expansion, self-reliance, currency inflow, and
economic independence. Similarly, entrepreneurs get complete
control over their financial future. Through their hard work and
innovation, they generate income and create wealth, allowing them to
achieve economic independence and financial security. 

3. Benefits of New Firms and Businesses

Entrepreneurs identify market needs and develop solutions through
their products and services to begin their business venture. By starting
new firms and businesses, entrepreneurs play a key role in shaping
the economy and creating a more dynamic and diverse business
landscape. Entrepreneurship also promotes innovation and
competition, leading to new and improved products and services that
contribute to economic growth and development. 

4. Creation of Jobs
Entrepreneurship is a pivotal driver of job creation. Running the
operations of new businesses and meeting the requirements of
customers results in new work opportunities. Entrepreneurship also
drives innovation and competition that encourages other
entrepreneurs and investments, creating new jobs in a wide range of
industries, from manufacturing and construction to service and
technology sectors. 

5. Encourages Capital Formation

Capital formation is the process of accumulating resources, such as
savings and investments, to fund new business ventures and support
economic growth. Entrepreneurship can encourage capital formation
by attracting investment. In addition, the creation of new businesses
and the growth of existing firms can also contribute to the
development of a more diverse and dynamic economy that
encourages capital formation and opens the door to a wide range of
investment opportunities.

6. Elimination of Poverty
Entrepreneurship has the potential to lift people out of poverty by
generating employment and stimulating economic activity.
Entrepreneurship also contributes to the development of local
economies and helps improve the overall standard of living. 

7. Community Development
Entrepreneurship promotes economic growth, provides access to
goods and services, and improves the overall standard of living. Many
entrepreneurs also make a positive impact on their communities and
improve their well-being by catering to underserved areas and
developing environment-friendly products. Their work can help build
stronger, more vibrant communities and promote social and economic
development. 

8. Optimal Use of Resources

Entrepreneurship can help identify market opportunities and allocate
resources in the most effective way possible. Entrepreneurs also play
a key role in developing innovative products and services that meet
the needs of customers while optimizing the use of available
resources.
9. Increases Gross National Product and Per Capita
Income
Entrepreneurship can play a significant role in increasing economic
growth and prosperity by increasing Gross National Product (GNP)
and Per Capita Income (PCI). GNP measures the total economic
output of a country while PCI calculates the average income per
person. The increase in GNP can lead to a rise in PCI.
Entrepreneurship can contribute to GNP by creating new businesses
and industries, which can lead to job creation, increased consumer
spending, and higher tax revenue. 
\

Sources of Finance for Small

Business
Various sources of finance for a small business can be broadly
categorized into equity or debt financing. Equity financing means
offering a part in ownership interest in the company against finance.
Debt financing means loans – companies owe money and have to pay
interest on the loan.

Own Capital / Savings

Number one & the easiest source of finance for a small business is
one’s own savings. At any stage of business, when a business needs
capital, an entrepreneur can tap into his personal assets such as –
stocks, mutual funds, real estate, or jewelry – to raise money. He can
either sell the assets to raise money or take a loan on any assets.
Entrepreneurs can invest such personal capital in their business as
equity capital, orSmall Business Loans
Each country has certain banks or institutions dedicated to providing
loans only to small businesses. An example of such an institute in
India is SIDBI; in the USA, there is SBA. The main target of these
institutions is to lend money to small businesses that have not been
able to obtain financing on reasonable terms through normal lending
channels. These entities usually give money as loans only.

Personal Loans
If a company is unable to get a business loan, the entrepreneur might
consider getting a personal loan & using it in their business. The
entrepreneur must have a good credit history for raising a personal
loan. We can get a personal loan by mortgaging homes, jewelry, etc.

they can give loans to their own company.

Small Business Loans

Each country has certain banks or institutions dedicated to providing
loans only to small businesses. An example of such an institute in
India is SIDBI; in the USA, there is SBA. The main target of these
institutions is to lend money to small businesses that have not been
able to obtain financing on reasonable terms through normal lending
channels. These entities usually give money as loans only.

Personal Loans
If a company is unable to get a business loan, the entrepreneur might
consider getting a personal loan & using it in their business. The
entrepreneur must have a good credit history for raising a personal
loan. We can get a personal loan by mortgaging homes, jewelry, etc.

Trade Credit
Some small businesses might have suppliers willing to sell on credit.
Such credit may range anywhere from one month to three months.
This is a very good method for small companies to fulfill short-term
funding needs. This is an inexpensive method of finance for any small
business.

Private Equity Firms

Private equity is a type of equity capital not listed on any stock
exchange. These firms raise funds from investors. It then invests these
funds to buy capital of promising startups & small businesses. The
drawback of such finance is that the private equity firms will acquire a
controlling position or substantial minority position in a company and
then look to maximize the value of their investment. Thus, the
entrepreneur might not have sole control over the business decisions,
which may lead to conflict.

Venture Capital Firms

Venture capital firms are a type of private equity firm, but venture
capitalists provide funds to only companies in the early stages of
their business cycles. These are emerging small companies with high
growth potential. Venture capital firms invest in emerging companies
in exchange for equity or an ownership stake. Small start-up firms
may receive a series of rounds of financing from venture capital firms.

Crowdfunding is a relatively new method when we consider sources of

finance. It is a method of raising funds by borrowing a small amount of
money from a large group of people. A typical example of
crowdfunding is proposing people invest US$ 10, and even if 1000
people invest, the company can raise US$ 10,000. Such financing is
usually done for a particular project. The benefit of crowdfunding is
that small companies can make flexible proposals as per their
requirement. They can offer equity against the money or take the
money on a loan; they can provide simple interest payments against
compound interest like most regular loans.
SWOT is an important acronym for individuals and organizations
alike in the business world and it stands for Strengths, Weaknesses,
Opportunities, and Threats. SWOT analysis is a useful technique to
assess these four attributes which play a crucial role in an organization.
Strengths and weakness refer to internal factors such as (current
processes, human resources, physical and financial resources, etc.)
while opportunities and threats focus on external factors such as
(market trends, economic trends, pollical and economic regulations,
etc.).

Four elements of SWOT analysis

Strengths: These are factors that distinguish an organization from its
competitors. These are special positive traits, such as a strong brand
image, a loyal customer base, or a unique technology that provides a
clear advantage to the organization compared to rivals.
A SWOT analysis can be instrumental in identifying an organization’s
Unique Selling Proposition (USP for short) that forms the basis for the
company’s strength and keeps the business ahead of its competitors in
the market.
Weakness: Like strengths, weaknesses are internal factors in a
business. Identifying these can help identify areas of improvement.
Doing this lets organizations design measures to rectify and control
their weak points, which in turn helps the company grow.
Like strengths, weaknesses such as low brand value, unused turnover,
or lack of capital are strong attributes that impact and influence future
course of action.
Opportunities: These are external factors that are open and available
to be used by the organization for its benefit. Organizations must have
a good eye to identify and analyze prevailing opportunities in the
market to be able to proactively exploit them. Such tactics can provide
an organization with an edge in the market, allowing it to realize its
future growth trajectory.
Threats: Like opportunities, these are external or outside factors that
negatively impact business. Threats can come in many forms —
financial downturns, supply chain problems, stringent government
regulations or shifts in market requirements, etc. which are outside the
control of an organization.
Hence, it is crucial to anticipate threats in advance and take necessary
precautions to avoid falling victim to such external events. A strong
business continuity plan is key to minimizing the impact of these
negative external factors.

The Importance of SWOT Analysis

A SWOT analysis helps evaluate where a company stands in a
competitive market and what steps need to be taken for further
strategic planning, helping decision-makers draw a future roadmap for
the company.
Here are some key points that make it especially useful for companies:
A SWOT analysis helps organizations get visibility on their current
status, letting them understand and measure overall business
performance.
It lets a business analyze its strength, which in turn can help them
better penetrate the market to meet business targets.
It lets organizations get visibility on their weaknesses and potential
areas of improvement. This information helps them plan for and
mitigate future roadblocks, ensuring the long-term growth of the
business.
By leveraging its SWOT analysis, a business can create a strategic plan
to meet desired objectives and adapt to changing market conditions.
It lets businesses understand and better identify internal and external
factors and their positive and negative impacts on the business. This
information can help businesses be more proactive by helping them
take appropriate actions in a dynamic market to maintain momentum.

What Is Break-Even Analysis?

A break-even analysis is a financial calculation that weighs the costs of a new
business, service or product against the unit sell price to determine the point at
which you will break even. In other words, it reveals the point at which you will have
sold enough units to cover all of your costs. At that point, you will have neither lost
money nor made a profit.

Key Takeaways
A break-even analysis reveals when your investment is returned dollar for dollar, no
more and no less, so that you have neither gained nor lost money on the venture.

A break-even analysis is a financial calculation used to determine a company’s break-

even point (BEP). In general, lower fixed costs lead to a lower break-even point.

A business will want to use a break-even analysis anytime it considers adding costs—
remember that a break-even analysis does not consider market demand.

There are two basic ways to lower your break-even point: lower costs and raise
prices.