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Entrepreneurship
Development
Priyesh Tiwari
Unit - V

Entrepreneurship Development Cycle
? The Entrepreneurship Development Cycle is a framework that outlines the
various stages an entrepreneur typically goes through in the process of
starting and growing a business.
? This cycle provides a structured view of the journey from conceiving an
idea to establishing and running a successful enterprise.

Stages of EDC
? Discovering Opportunities:
? Identifying opportunities for new businesses or products by conducting market
research, analyzing trends, and identifying gaps in the market
? Assessing Opportunities:
? Evaluating the feasibility of the opportunity, analyzing the competition, and
assessing the risks involved
? Developing a Business Plan:
? Developing a business plan by outlining the goals of the business, identifying the
resources required, and developing a strategy for achieving those goals

Stages of EDC
? Acquiring Resources:
? Acquire the resources required to implement the plan by securing funding, hiring
employees, and acquiring equipment or other resources
? Launching the Business:
? Involves implementing the business plan, marketing the product or service, and
establishing a customer base
? Growing the Business:
? Expanding the customer base, developing new products or services, and
increasing revenue

Business Planning Process
? A systematic and methodical approach used by entrepreneurs and
business managers to conceptualise, design, and lay out a detailed
roadmap for their business.

Steps of BPP
? Idea Generation and Refinement:
? The process begins with generating a business idea, which typically addresses a specific
market need or problem. This idea is then refined into a viable business concept
? Market Research:
? Conducting thorough research to understand the target market, including customer
needs, market size, competition, and industry trends.
? Defining Business Objectives:
? Setting clear, measurable, and realistic goals for the business, which could include
financial targets, market positioning, and operational milestones.
? Business Model Development:
? Outlining how the business will create value. This includes defining the product or service
offering, revenue model, pricing strategy, and the operational model.

Steps of BPP
? Strategic Planning:
? Formulating strategies to achieve the set objectives. This involves deciding on marketing strategies, sales
approaches, growth strategies, and resource allocation.
? Financial Planning:
? Preparing financial projections such as income statements, cash flow statements, and balance sheets.
This includes budgeting, forecasting revenue, and planning for expenses and investments.
? Risk Assessment:
? Identifying potential risks and challenges the business might face and developing contingency plans to
address them.
? Action Plan:
? Developing a detailed action plan that outlines the steps required to implement the business plan,
including timelines and responsibilities.
? Review and Adaptation:
? Continually reviewing and updating the business plan based on real-world experiences, market
changes, and new insights.

Elements of a Business Plan
? Executive Summary
? Overview of the business concept, mission statement, and basic information such as business
name, location, and leadership.
? A brief description of products or services offered, and a summary of objectives and financial
forecasts.
? Company Description
? Detailed information about the business, the problems it solves, and why it is unique in the
market.
? Includes the business model, target customer segments, and competitive advantages.
? Market Analysis
? Comprehensive research on industry outlook, target market demographics, market needs,
competition analysis, and market trends.
? Positioning of the business within the market and strategies to capture market share.
? Organization and Management
? Structure of the business - sole proprietorship, partnership, corporation.
? Profiles of the management team, their experience, and roles in the business.

Elements of a Business Plan
? Products or Services
? Detailed information on the product or service being offered.
? Discussion on the product's lifecycle, benefits to customers, and how the product fits into the
current market.
? Marketing and Sales Strategies
? Marketing plan outlining the strategies to attract and retain customers.
? Sales strategy detailing the sales process or funnel, sales activities, and sales goals.
? Funding Request
? If seeking funding, a clear statement of the required amount, intended use, and preferred
terms.
? A description of future funding requirements over the next five years.
? Financial Projections
? Projections for income statements, balance sheets, cash flow statements for the next 3-5 years.
? Break-even analysis to demonstrate the point at which the business will make a profit.
? Appendix
? Supplemental documents like resumes, permits, leases, legal documentation, detailed market
studies, and references.

Objectives of a Business Plan
? Guiding the Startup and Management
? Serves as a roadmap for starting and managing the business.
? Helps in setting benchmarks and milestones to gauge progress.
? Securing Financing
? Essential for attracting investors and securing loans.
? Demonstrates the viability of the business and its potential for returns.
? Strategic Planning and Prioritization
? Assists in strategic planning and helps prioritize business activities.
? Focuses on resource allocation in line with business goals.
? Risk Management
? Identifies potential risks and challenges, providing strategies to mitigate them.
? Helps in developing contingency plans.
? Communication Tool
? Communicates the business vision and strategy to stakeholders, employees, and partners.
? Ensures everyone involved understands the business objectives and strategies.

Developing a Product – Resources,
Capabilities & Strategies
? Human Resources
? Role of team expertise and skills in product development.
? Need for assembling a diverse team with complementary skills.
? Financial Resources
? Estimating the financial requirements for product development.
? Discuss various sources of funding, including bootstrapping, angel investors, venture
capital, and crowdfunding.
? Technological and Physical Resources
? Importance of technology in product development, especially for tech-based
startups.
? Need for physical resources like office space, manufacturing facilities, etc.

? Technical Skills
? The necessity of technical expertise in product development, especially for tech-
intensive products.
? Continuous skill development and staying updated with technological
advancements.
? Management Skills
? Skills in project management, time management, and resource allocation.
? The ability to lead teams, manage workflows, and make data-driven decisions.
? Adaptability and Innovation
? Emphasis on the capability to adapt to market changes and customer feedback.
? Fostering a culture of innovation within the team.

? Customer-Centric Approach
? Designing and developing products with a focus on customer needs and preferences.
? Utilizing customer feedback and market research in the development process.
? Agile Development
? Adopting agile methodologies for flexible and iterative development.
? Short development cycles for rapid testing and adaptation.
? Strategic Partnerships
? Leveraging partnerships for expertise, technology, or market access.
? Collaborations with other businesses, research institutions, or industry experts.
? Intellectual Property Protection
? Understanding the importance of protecting intellectual property.
? Steps to secure patents, trademarks, or copyrights as applicable.

Market Analysis
? Market Analysis is a critical component in the development and planning
of a business strategy, especially when launching a new product or
entering a new market. It involves a comprehensive examination of the
industry in which a business operates, the market it intends to enter, and the
potential customers it aims to attract.

Key Aspects of ‘Market Analysis’
Understanding
the Market Size
and Scope
Segmentation
and Target
Market
Identification
Competitor
Analysis
Customer Insights
and Preferences
Market Trends
and External
Factors
Pricing and
Economic Analysis
Regulatory
Environment
Distribution and
Supply Chain
Analysis

SWOT Analysis
? SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or business
venture.
? It involves identifying internal and external factors that are favorable and
unfavorable to achieve objectives.

Components of SWOT Analysis
? Strengths
? These are internal attributes of the business that are helpful to achieving the objective, like
Strong brand reputation, loyal customer base, strong financial position, unique technology,
skilled workforce.
? Weaknesses
? Internal attributes that are harmful to achieving the objective, like Limited resources,
inexperienced management, poor location, weak brand recognition, operational
inefficiencies.
? Opportunities
? External factors that the entity can capitalize on or use to its advantage, like Emerging
market trends, regulatory changes, technological advancements, partnerships, and new
market segments.
? Threats
? Description: External factors that could cause trouble for the business, like Intense
competition, changes in consumer behavior, economic downturns, technological changes,
and supply chain disruptions.

Industry Analysis
? Industry Analysis is the evaluation of the economic and market factors that
influence the performance and profitability of a specific industry to
understand the competitive landscape, market trends, and the overall
health of an industry.
? Tools for Industry Analysis:
? Porter’s Five Forces Model
? PESTE Analysis

Key Aspects of Industry Analysis
? Market Structure
? Assessing the structure of the industry in terms of competition levels, number of
competitors, market concentration, and barriers to entry.
? Understanding market structure helps in determining competitive intensity and
profitability potential.
? Industry Demand and Supply Dynamics
? Evaluating the demand trends, including customer preferences and behaviors, and
supply-side dynamics like production capacities and logistics.
? Helps in predicting future sales and planning for production or service capacity.
? Regulatory Environment
? Identifying and understanding the impact of government policies, regulations, and laws
specific to the industry.
? Compliance with regulations and understanding regulatory changes can be a
significant factor in strategic planning.

Key Aspects of Industry Analysis
? Technological Changes
? Analyzing the role and impact of technological advancements in the industry.
? Adapting to or incorporating new technologies can be crucial for staying competitive.
? Economic Factors
? Considering broader economic trends such as inflation, interest rates, economic growth,
and their impact on the industry.
? These factors can influence pricing strategies, investment decisions, and overall business
sustainability.
? Competitor Analysis
? Detailed analysis of major competitors, including their strategies, strengths, weaknesses,
market share, and product offerings.
? Helps in identifying competitive advantages and opportunities for differentiation.

Porter’s Five Forces Analysis
? A framework developed by Michael E. Porter to analyze the competitive
environment of an industry and to assess the profitability potential and
attractiveness of an industry.
? Threat of New Entrants
? Evaluates how easy or difficult it is for new competitors to enter the industry.
? Barriers to entry, economies of scale, capital requirements, access to distribution
channels, and regulatory policies.
? Bargaining Power of Suppliers
? Determines how much power suppliers have to drive up prices.
? Number of suppliers, uniqueness of their product or service, strength and control
over businesses in the industry.

Porter’s Five Forces Analysis
? Bargaining Power of Buyers
? Assesses the power of customers to affect prices and terms.
? Number of customers, availability of alternative products, price sensitivity, customer
loyalty.
? Threat of Substitute Products or Services
? The likelihood that customers will switch to alternative products or services.
? Availability of substitutes, cost of switching, performance of substitutes relative to
existing products.
? Intensity of Rivalry Among Existing Competitors
? The degree of competition within the industry.
? Number of competitors, rate of industry growth, product or service differences,
switching costs, brand loyalty.

PESTEL Analysis
? A framework used to analyze and monitor the macro-environmental factors
that may have a profound impact on an organization's performance.
? Political Factors
? How government actions and political realities impact a business environment.
? Government policies, political stability, tax regulations, trade restrictions, and labor
laws.
? Economic Factors
? The economic environment in which a business operates.
? Economic growth, interest rates, exchange rates, inflation rate, disposable income
of consumers and businesses.

PESTEL Analysis
? Social Factors
? Socio-cultural aspects that affect the demand for a business's products and operations.
? Cultural trends, demographics, population growth rates, age distribution, career attitudes, and emphasis
on safety.
? Technological Factors
? The impact of technology on the market and industry.
? Technological advancements, innovation, automation, research and development, and the rate of
technological change.
? Environmental Factors
? Environmental and ecological aspects that may affect how companies operate and the products they
offer.
? Climate, weather, geographical location, global changes in climate, environmental offsets, and carbon
footprint.
? Legal Factors
? Legal frameworks and regulations within which a business must operate.
? Employment laws, consumer laws, health and safety regulations, trade regulations, and antitrust laws.

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