Entrepreneurship is the process of developing, organizing,
and running a new business to generate profit while
taking on financial risk
.
Entrepreneurship Development Process
1.Learn about the Business Idea
It is the starting process of entrepreneurship. Once an individual has generated the
idea for a business, he/she will subsequently need to evaluate and identify its business
opportunities. Hence, he/she has to learn more about the business and its consumers.
2.Thorough Evaluation
• Whether an opportunity or idea is worth investing in or not.
• What are the requirements for this product?
• Is it feasible or not based on its cost?
• What are the competitive advantages?
• The capital that is required to put in the business, before the launch of that certain
product or service. And where to get this capital.
• Associated risks that are inherent with the product or service?. Such risks can be of
many types like Technical risks, Economic risks, Social and Environmental Risks.
• Whether it coincides with the company’s goal or not
3.Business Plan
After identifying the opportunity and gathering information about it, an entrepreneur
needs to create a comprehensive business plan to make most of this opportunity. The
significant pieces of a business plan, i.e. its vision, goal, objectives, capital and the
product itself must be figured out in this process.
4.Finding Resources
Once the entire business plan is ready, the next step of entrepreneurship development
and management is to locate sources of finance and human resources. Here
entrepreneurs find investors for his/her venture.
5.Framing out the Management Structure
It is a crucial concept of entrepreneurship development. After raising funds and hiring
the required employees, this is the next process on the list. An entrepreneur must
frame out the hierarchy in the organization. Thus, it becomes easier to resolve any
problem through this chain of command.
6.Plan the Future
Once a business is up and running smoothly, an entrepreneur has to consider its
future. In this final point of entrepreneur development programme notes,
businesspersons decide the next step of the business. Based on actual data generated
by the company and pitting it against the projected one gives a clear idea of how the
business is performing.
CORE VALUES AMONG ENTREPRENEURS
Honesty: It is essential for an entrepreneur to be honest to all
stakeholders. In the absence of honesty, entrepreneurs will not be able
to sustain themselves in the market for long.
Reliable: An entrepreneur must be reliable in all dealings. The quality
of products, services and decisions must be reliable.
Respect: An entrepreneur must respect all stakeholders, whether
customers, suppliers, investors or workers. Disrespecting any
stakeholder might hinder the entrepreneur’s reputation and business
dealings. An entrepreneur must also respect goals regarding work, time
and business.
Foresighted: Foresight comes through his education and intelligence.
An entrepreneur must be able to assess future risks and accordingly
plan business activities to safeguard from uncertainties.
Innovation and creativity: An entrepreneur must be able to think out of
the box. It is one of the most important values if an enterprise is to
become successful. These include new ideas, managing change, dealing
with uncertainty while applying new ideas, portraying originality etc.
Outstanding performance: Entrepreneurs need to outperform the
competition to shine in the market and to establish themselves.
Entrepreneurs have to accept their mistakes and to correct them.
Independence: Freedom to express themselves is one of the greatest
values entrepreneurs possess. Entrepreneurs are self-motivated and
self-reliant
Importance of Entrepreneurship
• 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 consumers
Role of Entrepreneurship in Economic Development
1. Raises Standard of Living
• 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.
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.
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.
.
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.
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.
6. 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.
7. 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.
