challenges encountered by entrepreneurs in provision of pharmaceutical services - series of health economics and entrepreneurship for pharmacy students part 4 Pharm Paul Malaba
2. Coverage
a) Explain political and legal climate in relation to pharmacy business
b) Explain innovation and creativity (changing tastes and attitudes) in
pharmacy business
c) Explain knowledge of product market
d) Explain entrepreneurial attitudes and sustainable drive
e) Explain skilled labour retention in pharmacy business
f) Describe strategies for capacity building in pharmacy business
3. Challenges Faced by Entrepreneurs
These include;
Analysing problems and risks
One of the critical skills needed by an entrepreneur is the
ability to identify and evaluate the risks associated with
the new venture idea and to react to them by developing
strategies to overcome or manage them.
Some of the risks associated with a new venture could
include:-
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4. Challenges
Technical: The technology capable of doing what you
need it to do may be very expensive/ or you may not
be able to access it locally.
You also may have a problem sourcing the technical skills.
Performance risks: Performance risks can be twofold-
they could relate to the performance of your
employees or the performance of your business.
Employee performance is always a risk, and a challenge
to an entrepreneur.
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5. Challenges
People need to be managed very closely in terms of
their performance, otherwise they can cost you a lot
of money and impact hugely on the success of your
venture.
If your business does not perform as anticipated, you
could run into all sorts of problems with your cash
flow and operating capital.
As an entrepreneur you need to have identified this
risk and have a contingency plan in place.
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6. Challenges
Timing: The timing of your venture is vital – the time needs
to be right for the market to accept your offering.
You need to consider the life cycle of the product offering,
the state of the economy, the season if it is relevant.
Sometimes your lead times can be a risk to your business.
This is especially a problem if you purchase from overseas say
your raw materials and /or technology
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7. Challenges
Community and cultural risks: Products and services that address
anticipated needs in the community may backfire. Products that
are not aligned with the local culture will always be a challenge
and pursuing them will carry a high level of risk.
Environmental risks: Any changes in the external environment of
your business could create risk for your business. From the risk of
natural disasters to the risk of fluctuating exchange rates and
interest rates.
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8. Challenges
A successful entrepreneur needs to have evaluated
the possibility and the repercussions of this risk, and
have contingency plans in place to manage them.
Any business venture will face its fair share of
problems throughout its lifespan. It is how
proactively you deal with the problems that make the
difference to your success as an entrepreneur.
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9. Challenges
The problems of entrepreneurs may be divided into
two groups:
External problems and
Internal problems.
External problems are those which result from
factors beyond the control of the entrepreneurs
while
Internal problems are those which are not
influenced by external factors.
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10. Challenges
Internal problems include:-
1. Planning – technical feasibility (inadequate technical know how,
location disadvantage, outdated production process),
-Economic viability (High cost of inputs, choice of idea, Break-
even point too high).
2. Implementation – cost over-runs resulting from delays in getting
licenses, sanctions, inadequate mobilization of finances etc.
3. Production – Inadequate production management, labour
management, financial management, administrative
management
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11. Challenges
External problems include:-
1. Infrastructural (location, Power, Water, Communication etc.)
2. Financial (Capital, working capital, Long –term funds)
3. Marketing
4. Taxation
5. Raw material
6. Inspections
7. Technology
8. Government policy etc.
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12. Capacity building for Entrepreneurship
Entrepreneurship has its own rewards.
An entrepreneur is his own boss, can set his own
hours, can own his business with investments –
partly his own and partly from banks, is his own
master and can plan the growth of his enterprise the
way he wants.
Below are some tried steps for capacity building for
prospective entrepreneurs.
Positive attitude – Success is 90% attitude and 10%
aptitude. A positive attitude is bound to lead to
success.
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13. Capacity building
Learn to handle money intelligently – For success as an
entrepreneur, it is absolutely necessary to become an efficient
money manager.
Expect “no”- Realize that no’s are not personal. Every “no” gets you
closer to a “yes”. Put your best foot forward and you will get a
“yes”.
Be involved – Be a part of what is going on and network with
others in your field.
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14. Capacity building
Remember the magic word – In business the magic word is
“Ask”. Never expect the business to come to you. You create
your business by asking for it.
Be a goal setter – Set your goal, write it down, set a target for
achieving the goal and mobilise all your energies and
resources to accomplish the same each day, each week, and
each month. Little can ever be accomplished without definite
goals.
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15. Capacity building
Be organised – Each evening, list all the things you want to get
done the following day. That gives you an organised approach
to each day. As each task is finished, mark it off your list.
Be enthusiastic: Enthusiasm is the “fuel” that entrepreneurs run
on. Enthusiasm generates its own energy. Energy and good
health are synonymous with busy, happy people and people
who are achievers.
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