Entrepreneurship Development is the process of improving the skills and knowledge of entrepreneurs through various training and classroom programs. the whole point of entrepreneurship development is to increase the number of entrepreneur.

1. ENTERPRENEURSHIP DEVELOPMENT NOTES
UNIT 4: DEVELOPING A BUSINESS PLAN
BUSINESS PLAN: A written document describing the nature of the
business, the sales and marketing strategy, and the financial
background, and containing a projected profit and loss statement.
There are three primary parts to a business plan:
• The first is the business concept, where you discuss the industry,
your business structure, your product or service, and how you plan to
make your business a success.
• The second is the marketplace section, in which you describe and
analyse potential customers: who and where they are, what makes
them buy and so on.
• The financial section contains your income and cash flow
statement, balance sheet and other financial ratios, such as break-even
analyses.
OBJECTIVE OR IMPORTANCE OF BUSINESS PLAN
• To monitor the progress after implementing business plan
• To persuade others to join business
• To seek loans from financial institutions
• To guide entrepreneur in actual implementation of plan
• To identify actual strength and weakness of plan

2. Business plan consists of seven key components:
 Executive summary
 Business description
 Market strategies
 Competitive analysis
 Design and development plan
 Operations and management plan
 Financial factors
 a business plan should also have a cover, title page and table of
contents.
BUSINESS PLANNING PROCESS
1: Idea generation: An entrepreneur may come up with new business
idea or may bring in value addition to existing product in the market.
Sources of new idea for entrepreneurs are:
• Consumers/ customers
• Existing companies
• Research and development
• Employees
• Dealers, retailers
2: Environmental scanning: entrepreneur is required to conduct
environmental scanning which includes analysing external and
internal environment that affects business idea.

3. 1. External environment comprises of:
a) Socio cultural appraisal
b) Technological appraisal
c) Economic appraisal
d) Demographic appraisal
e) Economic appraisal
2. Internal environment:
a) Raw material
b) Production
c) Finance
d) Market
e) Human resource
3: Feasibility analysis: refers to conducting detailed analysis in
relation to every aspect relevant to business and determining
credibility of business.
a) Market analysis
b) Technical and operational analysis
c) Marketing plan
d) Production plan / operational plan
e) Organizational plan
f) Financial plan

4. 4.Project report preparation: project report is a written document
that describes step by step strategies involved in starting and running
business.
5.Evaluation, control and review: as company operates in dynamic
environment company must monitor and review strategies and
policies to stay in line with competition existing in market.
COMPONENT OF IDEAL BUSINESS PLAN: (UPTU 2018-19)
A. MARKET PLAN
Market plan refers to plan that describes market condition and
strategy related to how products and services will be distributed,
priced and promoted in market.
Definingbusinesssituation
Definingtargetmarket
Consideringstrengthandweakness
Establishinggoalsandobjectives
Definingmarketstrategyandactionprogram (PRODUCT,PRICING,
DISTRIBUTION,PROMOTION)

5. B. PRODUCTION PLAN
Production plan is the process of converting the input into output
through a conversion process. The inputs are in the form of land,
labour, raw material, machinery, capital and information.
Transformation takes place through machinery in manufacturing unit
and through employees skills in service sector.
DIMENSION TO BE COVERED WHILEDRAFTING
PRODUCTION OR OPERATIONPLAN
❖Plant location
❖Plant layout
Marketingstrategy
Budgetingmarketingstrategy
Implementationof marketplan
Marketingprogressof marketingactions

6. ❖Inventory management
❖Quality management system
❖Total quality management
❖Budgeting production plan
C. FINANCIALPLAN
it studies total requirement of finance in terms of start-up expenses,
fixed expenses, running expenses etc. financial plan indicates the
requirement of proposed business enterprise. Which includes fund
flow, cash flow statement, breakeven point, projected ratio, projected
balance sheet.
COMPONENT OF FINANCIAL PLAN:
❖Operating and capital budget
❖Pro forma of income statement
❖Proforma of cash flow
❖Proforma of balance sheet
❖Break even analysis
❖Proforma for sources and application of funds

7. UNIT 3
From Idea to opportunity
Source of ideas:
1) Consumers: A new venture or an existing organization have to
constantly update and meet the requirements of the customer in
view of the fact that customer is the fountain head of business
and he is the one who keeps it going.
2) Existing Companies: The products manufactured by the
existing companies give a broad view of the competition, the
volume of market, price trends and demand patterns. The
existing company data also gives the profitable line of business,
the scare areas and the best manufacturing trends of the product.
3) Existing Products and Services: Detailed observation and
analysis of market requirements of the existing products
germinate new business ideas in the area of:
i) Products which give specific advantages to customers,
ii) Products with value addition,
iii) Products with value addition, 4) Substitutions:
4) Substitution: Use of new materials of construction, new
processes alternate use of items to new areas is called
substitution.

8. Ex: Shortage of few raw materials leads to search for
substitution materials.
5) Government policies: Government of India and all State
Governments have sponsored different organizations to help
entrepreneurs in search, coordination and evaluation of business
ideas.
METHODS OF IDEA GENERATION/ IDEA
GENERATION TECHINQUES (UPTU 2018-19)
1. SCAMPER
SCAMPER is an acronym with each letter standing for an action
verb which in turn stands for a prompt for creative ideas.
• S – Substitute
• C – Combine
• A – Adapt
• M – Modify
• P – Put to another use
• E – Eliminate
• R – Reverse
2. Brainstorming

9. While brainstorming, there is no assessment of ideas. So, people
can speak out their ideas freely without fear of criticism. Even
bizarre/strange ideas are accepted with open hands. In fact, the
crazier the idea, the better. Taming down is easier than thinking
up.
3. Mind mapping
Mind mapping is a graphical technique for imagining
connections between various pieces of information or ideas.
To get started with mind mapping, the participant just must
write a key phrase or word in the middle of the page. Then, he
must write anything else that comes to his mind on the very
same page. After that, he must try to make connections as
mentioned in the previous paragraph.
4. Synectic’s
Synectic’s is a creative idea generation and problem-solving
technique that arouses thought processes that the subject may
not be aware of. It is a manner of approaching problem-solving
and creativity in a rational manner.
5. Storyboarding
Storyboarding has to do with developing a visual story to
explain or explore. Storyboards can help creative people

10. represent information they gained during research. Pictures,
quotes from the user, and other pertinent information are fixed
on cork board, or any comparable surface, to stand for a
scenario and to assist with comprehending the relationships
between various ideas.
6. Roleplaying
In the role-playing technique, each participant can take on a
personality or role different from his own. As the technique is
fun, it can help people reduce their inhibitions and come out
with unexpected ideas.
7. Attribute listing
Attribute listing is an analytical approach to recognize new
forms of a system or product by identifying/recognizing areas of
improvement.
INDIVIDUAL CREATIVITY: IDEA TO BUSINESS
OPORCHUNITY
1) Idea Germination:
The germination stage is a seeding process. Exactly how an
idea is germinated is a mystery; it is not something that can
be examined under a microscope. However, most creative

11. ideas can be traced to an individual’s interest in or curiosity
about a specific problem or area of study.
2) Preparation:
Once a seed of curiosity has taken as a focused idea, creative
people embark on a conscious search for answers. Inventors will
set up laboratory experiments, designers will begin Engineering
new product ideas, and marketers will study consumer buying
habits.
3)Incubation:
Individuals sometimes concentrate intensely on an idea, but,
more often, they simply allow ideas time to grow without
intentional effort. The idea, once seeded and given substance
though preparation, is rut on a back burner; the subconscious
mind is allowed time to assimilate information.
4) Illumination:
The fourth stage, illumination, occurs when the idea resurfaces
as a realistic creation. The fixable of the thunderbolt is captured
in this moment of illumination-even though the often long and
frustrating years of preparation and incubation have been
forgotten.

12. 5)Verification:
An idea once illuminated in the mind of an individual still has
little meaning until verified as realistic and useful.
Entrepreneurial effort is essential to translate an illuminated idea
into a verified, realistic and useful application. Verification is
the development stage of refining knowledge into application.
competitors already exist
OPPORCHUNITY ASSESMENT/ANALYSIS PLAN
The opportunity analysis will identify which business ideas have
real commercial potential. The role of well-prepared business
plan is to explore this potential in a systematic way. This is one
of the challenges that an entrepreneur will face. The purpose of
the opportunity analysis is to make sure that the entrepreneur is
on the right track.
There are five stages of opportunity analysis:
1. PHASE 1: Seize the Opportunities
we need to know what are the underlying factors that creates
opportunities.

13. Opportunities factors: technology, economic, demographic etc.
2. Phase 2: Investigate the Need through Market
Research
Investigate the Need through Market Research It is necessary to
identify, measure and document the need for the product or
service.
 Preliminary questions
 Prepare data collection
 Execute a study to get answer
 Analyze and interpret the results
3. Phase 3: Develop the Plan
Once an opportunity has been identified, you should develop a
business plan. Your business plan is an outline or blueprint of
how you will create your business. Implementing the plan is a
much more difficult task.
Implementing your business plan will include:
• Providing guidance in planning and organizing the activities
and goal.
• Determining the viability of the business and application in
selected market.
• Raising equity and securing financing; and
• Hiring management and staff.

14. 4. Phase 4: Determine the Resources Needed For a start-
up venture
Determine the Resources Needed For a start-up venture that
uses new technology for product or service, the financial and
resource requirements can be quite substantial questions can
serve as a guide:
Do you have business and financial support?
Are you prepared for personal contacts and networking?
Have you considered financing requirement?
Do you have the right set of technical skills?
5. Phase 5: Manage the Distinguishing Features of the
Business
Manage the Distinguishing Features of the Business You have
invested your time, money, experiences and energy in setting up
the new venture.
Keep planning
Deliver a Total Solution
Cultivate Advanced Resources
VENTURE CAPITAL (UPTU 2018-19)

15. Venture Capital is defined as providing seed, start-up and first
stage finance to companies and funding expansion of companies
that have demonstrated business potential but do not have access
to public securities market or other credit-oriented funding
institutions.
The three primary characteristics of venture capital funds
which make them eminently suitable as a source of risk
finance are:
 That it is equity or quasi equity investment
 It is long term investment and
 It is an active form of investment
ADVANTAGES
• Finance
• Business
• Mentoring Alliances
• Facilitation of Exit
ANGEL INVESTING

16. An investor who provides financial backing for small
startups or entrepreneurs. Angel investors are usually found
among an entrepreneur's family and friends. The capital they
provide can be a one-time injection of seed money or ongoing
support to carry the company through difficult times.
ADVANTAGES
• BAs are free to make investment decisions quickly
• better discipline due to outside scrutiny
• access to BA mentoring or management skills
• no repayments or interest
DISADVANTAGES
• Takes longer to find a suitable BA investor
• Giving up a share of your business
CROWDFUNDING
Crowdfunding is a method of raising capital through the
collective effort of friends, family, customers, and individual
investors. This approach taps into the collective efforts of a
large pool of individuals—primarily online via social media and

17. crowdfunding platforms—and leverages their networks for
greater reach and exposure.
Crowdfunding is the use of small amounts of capital from a large
number of individuals to finance a new business venture.
BENEFITS OF CROWDFUNDING
• Reach
• Presentation
• PR & Marketing
TYPES OF CROWDFUNDING
• Donation-Based Crowdfunding
• Rewards-based crowdfunding
• equity-based crowdfunding
UNIT: 2
Entrepreneurial Finance, Assistance and Entrepreneurial
Development Agencies

18. National Bank for Agriculture and Rural Development
(NABARD)
 It was established on 12 July 1982 by a special act by the
parliament and its main focus was to uplift rural India by
increasing the credit flow for elevation of agriculture & rural
non-farm sector and completed its 25 years on 12 July 2007.
Role and function of NABARD:
 Serves as an apex financing agency for the institutions providing
investment and production credit for promoting the various
developmental activities in rural areas.
 Takes measures towards institution building for improving
absorptive capacity of the credit delivery system, including
monitoring, formulation of rehabilitation schemes, restructuring
of credit institutions, training of personnel, etc.
UNIT: 5
Launching a New Venture:
IPO: INITIAL PUBLIC OFFERING
Also called as Stock Market launch.

19. • Involves a private company offering its shares to the public for
purchase for the first time.
• Referred to as taking a company public.
• The original investors in the private company can make
fortunes because the new stock is worth much more than their
original investments.
Revival, Exit and End to a venture
Revival: A process in which something starts to grow, develop,
or become successful again.
 Evaluate Your Situation Honestly
 Rethink Your Strategy
 Focus on Your People
 Let Go of Pride and Fear
 Don’t Lose Your Passion
VARIOUS FORM OF BUSINESS OWNERSHIP:
1. SOLE PROPRIETORSHIP
• Owned by one person, who performs most roles and owns
everything.

20. • Owner gets all profits, takes all the losses → called unlimited
liability.
• Easiest and least expensive to set up.
• Easiest for tax purposes → income recorded underpersonal
income.
Advantages
• No restrictions limits to capital.
• Quick decision making.
• few legal requirements.
• All profits belong to owner.
Disadvantages
• No legal personality
• Feeling of isolation
• Unlimited liabilities
• Lack of continuity
2. PARTNERSHIPS
• Two or more individuals share costs and responsibilities.
• Terms of partnership recorded in partnership agreement
“silent” partners- partners that usually will front a lot of capital,
but do not want to participate in business decisions – receive
profits in return.

21. Two types of Partnerships can exist in a business:
➢General partnership All partners have unlimited
➢ Limited partnership Partners have limited liability
Advantages
• Combination of new skills and ideas into a business.
• Shared responsibilities for decision making
• Share profits and are therefore motivated to work hard.
• Few legal requirements
Disadvantages
• Not a separate legal entity
• Liable for the actions of the other partners
• Discussion between partners can slow down decision
making.
• Problems can arise if one or more partners are lazy,
inefficient or even dishonest
3. Companies
Literary meaning of the word ‘company’ is an association of
persons formed for common object.
Types of company:
Private Company

22. This is a type of company that finds mention in the Companies
Act, 2013. The purpose of private companies is when the
business is not very large, but the owners/management still want
to opt for a company over a partnership or proprietorship.
 The number minimum of directors to be appointed are 2.
No independent directors are required.
 There is no need to wait for a minimum subscription
amount to be received. The members can allot shares
within themselves and immediately incorporate the
company.
Public Company
a public company is a company whose shares can be subscribed
by members of the public. As per the Companies Act, 2013 a
public company is.
➢A company that is not a private company
➢Has a minimum of seven members, no maximum limit is
mentioned
Corporation
A corporation is a fully independent business that's made up of
multiple shareholders who are provided with stock in the
business.

23. Non-profit Organization
A non-profit organization is pretty self-explanatory, in that it's a
business organization that's intended to promote educational or
charitable purposes. The "non-profit" aspect comes into play in
that any money earned by the company must be kept by the
organization to pay for its expense, programs, etc.