Definition of Entrepreneur

is a person who creates a new business venture

with all the possible risks.
He is the person who brings an idea to the
table for a new business.
Then he acquires resources, labor, and capital
to set up the business, produce goods and
services.
The importance of small business in
national and global context
• Small and Medium Enterprises (SMEs) play a major role in most
economies, particularly in developing countries. SMEs account for the
majority of businesses worldwide and are important contributors to
job creation and global economic development
Idea generation process: high growth
ventures vs. lifestyle ventures
• What is idea generation?
• Idea generation is the process of generating and selecting ideas to
solve discrete problems.
• However, within the context of new product development, the goal of
idea generation is to solve customer problems
Idea generation as a process

• idea generation is a formal process to create ideas.

• It has two phases, divergence and convergence.
• The divergent phase is when we defer judgment. This is when “all
ideas are good ideas.”
• The second, the convergent phase, is when we apply judgment.
During convergence, we select the best ideas to advance.
Opportunity scoping-distinguishing ideas
from opportunities.
• How do you recognize an opportunity?

• Part of recognizing an opportunity is the ability to evaluate ideas and

identify those with the highest likelihood of success.

• The idea may be an innovation, an invention, an improvement, or

irrelevant.
 Developing a strategic vision, mission and
objectives
• Each organization needs a clear vision, mission, goals, objectives, and long-term strategies to make their business a movement.
These statements help in outlining the organization’s future. Also, create a mental image of the organization
• These are 5 statements which form the two aspects of the business-

• What the organizations want to achieve – reflected by the Vision mission and objectives of companies.
And how they are going to achieve the above “what”- reflected by the Strategies and Tactics. These are long term and short-term
implementation plans respectively.
• Organizations gain real strength when these statements show:
• Clarity,
• Completeness, and are consistent with each other.
• It implies that there should be an alignment between these statements. You can ensure this alignment by the assessment of:

• Definition: If these statements are defined for the foundation of organization success?
• Clarity: If these provide a direction and plan for the work, organizational resources do?
• Communication: Are Organisation resources aware of these statements? And use them as a context of the work, they do?
• Commitment: If these statements make people supportive of the organization’s intent? And, if they agreed to the content of
these statements?
What are the vission mission and objective of
Companies?
• vission
• A vision is a Big Picture of “What” the organization wants to achieve in Future. It should
inspire people in the organization. It excites people to be part of “What.” And, also
motivate to put their energy and time to achieve the future. How do you write a good
vision statement? What does a vision stamen include?
• Mission:
• A Mission is about what the organization does to achieve the vision. A mission is an
action statement to achieve the vision. A mission statement is not required to be
inspirational. Instead, it provides a clear focus on what an organization does and what it
doesn’t.

• What should be included in a mission statement? What do you think a good mission
statement can look like for the above vision statement?
 A mission statement should help to understand:

“Who we are”,
“What we do”

and to “which industry we belong to”

• A mission statement is simple, direct and operative. Now the question is – how do you write
a powerful mission statement? What makes an effective mission statement? Let’s see the
following characteristics of a good mission statement:

• Short: The mission statement should be easy to remember. Each person in organizations
should be aware of the mission statement to use in context with the work he/she does.
• Simple: Mission statement language should be of everyday life. We do not use words like
stakeholder values, financial goals, and best practices in daily life. For example, a mission
statement – “Help people in achieving work using best practices.” How many people dream
about best practices? The answer is very few; do you believe, people talk in such a language.
The answer is ‘NO.’
• Operative: A mission statement should provide a clear direction. It should focus on what an
organization does. It also gives a clear route about initiative and resource allocation.
• So, what kinds of resources needed for the mission statement mentioned above for the
 Goals & Objectives:
Goals are statements of mileposts to achieve the vision. Goals describe – what you want to achieve
through your efforts.

And, an objective is a time-sensitive statement to achieve the goals. We defined it in measurable

terms.
Goals for the above-mentioned vision of agriculture business can be defined as, but not limited to:

Improve profitability
Increase volume
Provide stability
A goal is a broad definition, saying “improve profitability”. It lacks the specifics and defined in general
and broad terms. Objectives, on the other hand, are quite specific and further define the goal. To
continue with ‘profitability’ example, objectives can be defined as:
Here, the question is – How do you set a good objective. What are the smart objectives used for? Well, while explaining,
objectives a SMART acronym is commonly used:
•Specific: It is entirely job-related. In the above example, “sales” and “investment” are related to the job.
•Measurable: Objectives are always defined in measurable terms. We can measure the above objectives using a target of
10k$ and 15k$ profit.
•Attainable: Objectives should be attainable within the provided environment and resources. Organizations need to
analyze what is required to achieve defined objectives and need to need to make sure it continuously.
•Relevant: Objectives should be aligned with goals. These goals are further aligned with the mission and vision of the
organization.
•Time-Bounded: Objectives should be achievable within the provided time period and in our example, we identified time
‘a year’.
So without question, goals and objectives are similar (not same) and complement each other. With goals, there is no
pressure to be specific, and in fact, goals are open-ended. Setting goals are useful as a broad outline. Yet, due to its
fundamental nature of being broad and open-ended, these are not the ideal way to achieve something.
Whenever you want to achieve something – define a goal and then set a series of objectives to achieve those goals.
To summarize goals are broad direction setting statements, objectives are more specific. And both are designed to get you
to take action.
 Strategies:
Strategies are long term implementation plans to achieve the goals and objectives. These
statements define how you can succeed in achieving your mission and stay along in the
completion. Strategies are likely to be defined following a SWOT analysis as both external and
internal environment assessment is needed as an input to develop strategies.

How do you write an organizational strategy? Strategic options may include:

The development of market or product or

In some diversified cases, both the market and product development.
Example strategic options like:

Increase Market (sale in customers),

New Product (like product enhancement, product line extension, and products at different
quality levels) and
New distribution channel
Tactics:
Tactics are short term implementation or action plan to deliver the long-term strategy. A grass-root
level action plans are defined to ensure daily activities are in line with achieving the relevant
strategy(s).

Tactics like a sales staff member are expected to do 10 social media activity daily, could be an
example to deliver a long-term strategy.
Once you have defined all these 5 (Vision, Mission, Objectives, Strategies, and Tactics) statements,
you will have the foundation of your business. For this reason, we need to know that these five
statements are open acted with each other.

You use these statements to assess the internal capabilities and limitations of an organization.
Also, you examine these statements for their completeness, clarity, and awareness within
organizations. If these qualities are missing, then you need a change to solve the identified
organizational level internal weakness.
These statements should provide a clear focus and direction and should serve as an internal
strength for the organization.

You may watch and listen to the following video presentation on the difference between Vision,
Mission, Objectives, Strategies, and Tactics. This video will give you a walkthrough to write a goo