Entrepreneurship

1. Idea generation.
2. Feasibility study.
3. Basic considerations in setting up
a Business Enterprise.
Entrepreneurship
Entrepreneurship is the ability and readiness to develop, organize and
run a business enterprise, along with any of its uncertainties in order to
make a profit. The most prominent example of entrepreneurship is the
starting of new businesses.

The entrepreneurial vision is defined by discovery and risk-taking and is

an indispensable part of a nation’s capacity to succeed in an ever-
changing and more competitive global marketplace
Who is Entrepreneur?
The entrepreneur is defined as someone who has the ability and desire
to establish, administer and succeed in a startup venture along with risk
entitled to it, to make profits. The best example of entrepreneurship is
the starting of a new business venture. The entrepreneurs are often
known as a source of new ideas or innovators, and bring new ideas in
the market by replacing old with a new invention.
ENTREPRENEURS
Characteristics of entrepreneurship.
• Economic activity.
• Creative response to environment.
• Purposeful activity.
• Dynamic process.
• Risk element.
• Creator of organisation. (Capital Entrepreneur Land Labour)
• Gap filling function.
• Optimum use of resources.
 Difference between
entrepreneur
manager and intrapreneur
IMPORTANT TOPIC OF THIS CHAPTER
ENTREPRENEURIAL PROCESS
1. Identification of business opportunities.
2. Generation of business ideas.
3. Feasibility study.
4. Preparation of business plan.
5. Launching the enterprise to implement business
plan.
Identification of business opportunities.

An entrepreneur generates an idea

and looks after the opportunity. If the
opportunity seems profitable he
would like to align his own set of
hobbies, interest with the business
proposition. He would also look at
the consumer base by conducting
market research to assess the
expected market demand for the
potential product. For example idea
of switching from hand held devices
to mobile phones.
Generation of business ideas
Entrepreneurial process and requires
critical thinking on part of the
entrepreneur to select the most viable
business ideas from a set of available
options. This not only includes critical
analysis of the merits and demerits of
the innovative product/service created
by the entrepreneur, but also includes
the study of the market potential (the
existing and potential competi­tors),
marketing, finance, human resources,
and operational issues related to the
business idea
Feasibility Study
1. Technical aspect
2. Commercial aspect
3. Financial aspect
4. Socio economic aspect
5. Project appraisal
Technical aspect
1. Location
2. Plant capacity or size
3. Plant and equipment
4. Infrastructure
5. Effluent treatment and discharge
6. Foreign collaboration
Commercial aspect
A project is considered commercially viable if it is able to market its
products competitively in the domestic or international market at a
reasonable margin of profit.
Financial aspect
• Estimated cost of the project
• Financing of project with reference to the capital structure
• Critical examination of applicants existing investment.
• Projection of future profitability
• Projection of cash flow
• IRR- INTERNAL RATE OF RETURN
Socio economic aspect
• Employment generation
• Income distribution
• Foreign exchange
• Self reliance
• Development of backward region
• Development of Small Scale Industries.
• Development of infrastructure
• Development of technology
• Improvement of quality of life of general public.
PREPRATION OF BUSINESS PLAN
LAUNCHING THE
ENTERPRISE