ENTREPRENEURSHIP DEVELOPMENT

 Entrepreneurship Development Factors

 Creation of Entrepreneurial Environment
 Process of Developing Entrepreneurship
 Entrepreneurship Development Cycle
 Entrepreneurship Development Factors

Personal Factors

 Ability to cope with the situation

 Age
 Education
 Personality
 Intra-personal communication ability
 Achievement motivation
 Self confidence
 Competence
 Emotion
 Understanding capacity, etc.
 Entrepreneurship Development Factors (Cont.)
 Environmental Factors

– Socio-Cultural Factors: religions, values, rural-urban

orientation, marginality, education, traditions, etc.

– Political & Legal Factors: government legal bindings,

e.g., government policies, rules & laws relating to the
industry & business.

– Institutional Factors: financial institutions, training &

development institutions, consulting firms, incubator
organizations (i.e., old & pioneer organizations), research
institutions, etc.
 Entrepreneurship Development Factors (Cont.)
 Micro-Macro Factors
– Entrepreneurs has to work within the surrounding
Micro & Macro environment
 Micro-environment: the enterprise itself, suppliers,
intermediaries, customers, competitors, publics, etc.
 Macro-environment: demographic, economic, physical,
technological, political/legal, cultural/social, etc.
Examples
– Venture capital
– Experienced entrepreneurs & Incubator organizations
– Technically skilled labor force
– Suppliers accessibility
– Favorable government policies
 Entrepreneurship Development Factors (Cont.)
 Other Factors
– proximity to universities
– Availability of land facilities
– Accessibility of transportation
– Favorable loan & financial policies
– Receptive population
– Availability of supporting services
– Attractive living conditions
– Interim consulting
– Research & development activities
– Capital intensiveness
– Proximity to corporate headquarters
– Competitive situations, etc.
 Creation of Entrepreneurial Environment
 Factors that influence entrepreneurship development
 Individual factors
– Individual initiative vital in this regard
– Individual assembles the factors of production (i.e.,
land, labor, & capital), & directs them towards the
ultimate goal
– Individual intra-personal qualities (e.g., emotion,
aptitude towards technology, skill, leading capability,
devotion to work, risk-taking mentality, etc.) make
the total endeavors strong & effective
Creation of Entrepreneurial Environment (Cont.)
 Socio-cultural factors
– Family structure, social structure, values, etc., influence
& strengthen individual effort in entrepreneurship
 Socio-political factors
– Political stability, democratic environment, social policy,
etc.
 Economic factors
– Economic policy, government policy, etc.
 Industrial factors
– Financial, research & development (R & D), training,
advice, etc.
 Process of Developing Entrepreneurship

1. Decide to be an Entrepreneur
2. Identify & Evaluate Business Opportunities
3. Development of Business Plan
4. Mobilize Resources
5. Set up the Enterprise
6. Managing the Enterprise
7. Managing the Growth
 1. Decide to be an Entrepreneur

 Strengths & weaknesses of the decision

 Continuation of the business or establishment of
new venture
 Products or services choice that best fit with
strengths& weaknesses, as well as, desires
 2. Identify & Evaluate Business Opportunities

 Ask people to find out what their needs are

(Customer Focus)
 Modify the products for better satisfaction of the
needs
 Observe changing life style of people & have
exclusive thought about what products or
services they would desire
 Study new products or services
 Travel around to find out new products, services
& ideas
 3. Development of Business Plan
 Market research for the planned products or
services
 Forecasting the share of market
 Selection of a site for the planned business
 Development of production, marketing,
personnel, & financial plans
 Decision to design the form of organization
 Decision on records & reports
 Development of insurance plan
 4. Mobilize Resources
 Identification of various types of resources, like,
physical, human, financial, etc.
 Identification of the source of resources
 Negotiation about the terms & conditions
related to the required resources
 Assessment of cost & benefits of the resources
which will be mobilized
 Acquiring the resources
 Allocating the resources
 5. Set up the Enterprise

 Registration of the enterprise

 Hire, lease or purchase required land, building,
machinery, etc.
 Arrangements of additional facilities
– electricity
– water supply, etc.
 Recruit & train personnel
 Develop work & information system
 6. Managing the Enterprise

 Formulating plans relating to production,

marketing, procurement, etc.
 Organizing people, materials, machinery, etc.
 Leading, directing, supervising, etc.
 Controlling the input, behavior & output
 7. Managing the Growth

 Identification of growth opportunities

 Evaluation of the opportunities
 Formulation of strategy for further
improvement
 Mobilizing resources necessary for the growth
strategy
 Implementation of the strategy
 Monitoring the growth strategy & activities
 Entrepreneurship Development Cycle

1. Stimulatory Activities
2. Supporting Activities
3. Sustaining Activities
 Entrepreneurship Development Cycle
Stimulatory Activities
 Entrepreneurial education
 Planned publicity
 Identification of potential entrepreneurs through scientific
methods
 Motivational training to new entrepreneurs
 Help & guidance in selecting product & project report
 Making available techno-economic information regarding
product & profit
 Developing locally suitable new products & processes
 Availability of local agencies with trained personnel for
entrepreneurial counseling & promotion
 Organizing entrepreneurial forum
 Entrepreneurship Development Cycle (Cont.)

Supporting Activities

Registration of the business enterprise

Arranging finance
Providing land, power, shed, water & other facilities to the
entrepreneurs
Guidance for selecting & obtaining machinery
Supply of scarce raw materials
Getting import licenses for locally unavailable machinery & raw
materials
Providing common facilities
Granting tax-relief or other subsidies
Offering management consultancy
Help in marketing product (s)
 Entrepreneurship Development Cycle (Cont.)
Sustaining Activities
Help in modernization
Help in diversification
Additional financing for full capacity utilization
Deferring repayment/interest
Diagnostic industrial extension/consultancy source
Production units’ legislation/policy change
Product reservation & creating new avenues for
marketing
Quality testing improving services
Balancing, Modernization, Rehabilitation & Extension
(BMRE)