Professional Documents
Culture Documents
BBS 220 - Entrepreneurship-1
BBS 220 - Entrepreneurship-1
BBS 220 - Entrepreneurship-1
PULL FACTORS
Perception of advantages
Spotting opportunities
Government policies
Motivation
Influenced
PUSH FACTORS
3
Job dissatisfaction
Joblessness
Lay off
Retirement
Boredom
TEN MYTH ASSOCIATED WITH ENTREPRENEURSHIP
4
Developed Infrastructure
Protective and promotion policies
Growth in Education- Science, Technology and Management
Risk taking abilities
Hunger for Success
Environmental/Cultural factors
Globalization
Business Opportunity
6
Customers
Members of the distribution
Technical people
FORMS OF OPPORTUNITIES
New products and Services
New methods of production
New ways of organizing
New raw materials
SOWT ANALYSIS
8
Entry Barrier
Supplier power
Substitute availability
Competitive rivalry
Buyer’s power
OPERATING ENVIRONMENT
Competitive
Creditors
Customers
Labour
Suppliers
Entrepreneurship Vs Small businesses
10
Creativity
Innovation
Inventors
High risk taker
Higher profits
Substantial wealth creation
High speed of wealth creation
DEADLY MISTAKES BY ENTREPRENEURS
11
Luck of experience
Lack of strategic management
Poor financial control
Weak marketing efforts
Failure to develop an effective business plan
Lack of inventory control
Incorrect pricing
Fear to make decision
Reasons for writing a business plan
12
1) Title Page
Business name and address
proprietor’s name and address
Business form
Business activity
2) Table of Content
3) Executive summery
Technical
CON’T
14
Marketing
Financial and
Managerial details
4) Company description(Location, strategy and goals)
5) Product/ Service (should stress the characteristics and
benefits)
6) Market and competition
The Range of markets
The competitiveness of the industry(SWOT Analysis)
7) Marketing and Selling strategy( promotions,
advertising, discounts and free deliveries)
CON’T
15
8) Operating plan
Trends of Production per day, location
9)Management
Positions , qualification and experience required
10) Financial plan
Trade profit and loss account
Balance sheet and
Cash flow statement
LEGAL FORM OF BUSINESS ENTITIES
16
1. Sole proprietorship
Advantages
Easy to start and register
The cost of starting it is low
All the business profits belongs to the owner
The owner makes decisions
Easy to discontinue
Relative freedom from the government control
Freedom from corporate business taxes
CON’T
17
Disadvantages
Unlimited personal liability
Limited access to capital
Limited skills and ability
Lack of continuity for the business
2.Partnership
A business entity formed by two or more people.
Regulations under partnership Act of 1890
All partners have an equal vote in how the business should run
All partners have invested equally in the business
Partners will not receive a salary
Partners will not receive interest on their capital invested
CON’T
18
Advantages
Easy to form, as legal formalities required are few and expenses are low.
Complementary skills
The prospects of sharing risks
In case of sickness of one partner, the other partner fills the gap
Larger pool of capital
Disadvantages
Sharing of profits
Unlimited liability
Delayed decision making process
Bind by the acts of one partner
Lack of continuity.
CON’T
19
Limited Company
The qualities of a limited company are; (Perpetual existence, Limited liability,
Incorporated of registration).
Advantages
Limited liability
Easier to finance and sell share
Greater status and credibility
Shareholders not personally liable
Transfer of ownership
Unlimited life
Disadvantages
Cost and complexity of legal requirements
Profits are shared among the shareholders
Business pay tax on profits and shareholders pay tax on dividends
Extensive government regulations
CON’T
20
Cooperatives
A cooperative is an autonomous association of persons united voluntarily
to meet their common economic, social and cultural needs and aspirations
through a jointly owned and democratically controlled enterprise.
Advantages
Limited liability
The cost of registration is very low
Shared losses and risks
Disadvantages
Poor performance record
Political interference and internal politics
Decision making is slow
The procedure for its formation is slow