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entrepreneurship
- 2. Introduction: Entrepreneur as one who always searches for an opportunity. Business opportunity: described as an economic idea - implemented to create a business enterprises and earn profits and ensures further growth. Entrepreneur has to ensure two things before selection opportunities- 1. good market 2. return on the investment is attractive and acceptable. Elements of business opportunities: market scope attractive / acceptable rate of return on investment practicability competencies potential of future growth
- 3. EXPLORING OPPORTUNITIES IN THE ENVIRONMENT: Prospective entrepreneur had to find an opportunities which is suitable for him in terms of customers to be served and profit expected. Opportunities are derived from needs and problems of the society. ENTERPRISE PROCESS DIAGRAM INCLUDES: Opportunity spotting Evaluating the ideas received from different sources Identifying product/ services through innovation Setting up a project and nurturing it to success
- 4. Sensing entrepreneurial opportunities: process of converting an idea into an enterprise. Perceiving and sensing opportunities- synthesize available information Analyze emerging patterns that escape the attention of other people. Factors involved in sensing opportunities: 1. ability to perceive and preserve basic ideas- sources which lead to the emergence of basic ideas: a. problems- problems leads to solutions. b. change- in social / legal / technological. c. invention- new product/ services d. competition- new and better ideas e. innovation- creating new things of value 2. ability to harness different sources of information- sources magazine, books, journals, trade shows, friends, relatives, customers etc. analyse best possible extent 3 vision and creativity- creativity- ability to find innovative solution vision- ability to think and perceive the process that will lead conversion of solution business opportunities.
- 5. Environment scanning Carefully monitoring- environment- detecting opportunities and threats. Environment scanning- defines all those conditions /forces to a business unit under which it operates. Importance of environment- Sensitivity to environmental factors is crucial for an entrepreneur. 1. First mover advantage 2. Formulation of strategies/policies 3. Tapping useful resources 4. Better performance 5. Sensitisation to cope up with rapid changes 6. Image building
- 6. Analysis of environment Process of monitoring the economic and non-economic environment to determine the opportunities /threats to an organisation. It involves data collection, information processing and forecasting rational basis for developing goals / strategies for business survival and growth. This source includes- a. verbal information (customers/ wholesalers/ retailers etc.) b. record of companies c. Publications d. publications of financial institutions e. formal studies of strategic planners
- 7. Environmental factors Refers to the various forces within within which various small, medium and large enterprises operates. Business environment consists of: micro and macro environment. Micro environment includes- suppliers, customers, intermediaries, competitors, general public. Macro environment includes PESTEL Model a. Political (P) b. Economic (E) c. Social (S) d. Technology (T) e. Ecological (E) f. LEGAL (L)
- 8. PESTEL Model. Political taxation policy, government stability, foreign trade regulations. Economic- interest rate, inflation, business cycle, unemployment etc. Social- population demographics, social mobility, income distribution, lifestyle changes, attitude of work etc. Technological new discoveries/ development, govt. and industry focus of technological efforts, rate of obsolescence etc. Ecological- ways in which organisation can produce its goods/services with minimum environmental damage. Legal taxation, employment, law , monopoly ,etc.