Term project entrepreneurship (94255)-fall 2016-social entrepreneurship-a new dimension-entrepreneurs development incubator company-paf-kiet (city campus)

Entrepreneurship (94255)
Muhammad Asif Khan (51271) Page 1 of 21
Term Project
Social Enterprise
A New Dimension of Entrepreneurship
And
Entrepreneurial Development Incubator
Company
Submitted To:
Course Instructor: Mr. Naeem Bhojani
Curse Title: Entrepreneurship
Course ID: 94255
Submitted By:
Name of Student: Muhammad Asif Khan
Student ID: MB-2-05-51271
Program: MBA-Regular
Semester: Fall 2016
Campus: PAF-Karachi Institute of
Economics & Technology
(KIET)-City Campus
Submission Date: November 27, 2016

Social Enterprise
A New Dimension of Entrepreneurship
The idea of Social Entrepreneurship has got increasing attention of scholars as social
problems in our complex modern society have grown tremendously. The objective is
to bring out the development of the field over a period of time and the contribution
of higher and technical education institutions to the field. This effort focuses on the
opportunities and challenges involved in social entrepreneurship and the emergence
of a social enterprise as an effective tool towards addressing social problems.
Social Entrepreneurship seeks to exploit the practical dynamism of the successful
businessmen to enrich and help society, especially in developing countries which are
overwhelmed with problems of dire poverty and lack of opportunities. As are
business entrepreneurs to the economy, so are the social entrepreneurs to the
society. They may, like any other business entrepreneurs, be interested in profit, but
their emphasis is on social change. They are often driven, creative individuals who
exploit new opportunities, question accepted norms, and refuse to give up until they
have remade the world for the better. Social entrepreneurs have the same core
temperament as their business peers but use their talents to solve global social
problems.
Origin And Growth Of Social Entrepreneurship
Although the terms - social entrepreneurs and social entrepreneurship- seem
relatively new, the practices related to the field can be found throughout the history.
Several business entrepreneurs had become the most successful social entrepreneurs
by combining effectively the civic, governmental and business worlds during 19 and
20 centuries and promoted mainstream public services in welfare, schools, and health
care. A few of them to mention are:
 Vinoba Bhave, founder of India's Land Gift Movement,
 Florence Nightingale, founder of the first nursing school and developer of
modern nursing practices,
 Robert Owen, founder of the cooperative movement etc.
Social Entrepreneurs and social enterprises have been in existence for many
centuries, but became prominent in recent decades after the word “social
entrepreneurship”, was deliberately used by Ashoka, a non-profit institution.
However, even before Ashoka was founded in 1981 and subsequently popularized
the term, history had witnessed numerous social entrepreneurs responsible for the
many social innovations.
The terms social entrepreneur and social entrepreneurship were used first in the
literature on social change in the 1960s and 1970s to describe Robert Owen. The
widespread use came during 1980s and 1990s and promoted by Bill Drayton, the

founder of Ashoka Innovators for the Public and others such as Charles Lead beater.
From the 1950s to the 1990s Michael Young was a leading promoter of social
enterprise. Professor Daniel Bell of Harvard was the world's most successful
entrepreneur of social enterprises during 1980s as he created more than sixty new
organizations worldwide, including the School for Social Entrepreneurs (SSE) which
supports individuals to realize their own potential and to establish social enterprises
and social businesses.
Muhammad Yunus, founder of Grameen Bank, is well known contemporary social
entrepreneur, who was awarded a Nobel Peace Prize in 2006. The work of Yunus and
Grameen emphasize the enormous synergies and benefits when business principles
are unified with social ventures.
Today, nonprofits and non-governmental organizations, foundations, governments,
and individuals also play the significant role to promote, fund, and advise social
entrepreneurs around the planet.
J. Gregory Dees, popularly known as the “Father of Social Entrepreneurship
Education”, and Beth Anderson categorize the plurality of Social Enterprise
definitions into two main types namely Social Enterprise and Social Innovation.
A great variety of definitions of social entrepreneurship and social entrepreneurs
have been provided for the past three decades. But according to some authors like
Austin et al. (2006), Mair and Mart (2006), Weerawardena and Mort (2005), the
theoretical underpinnings of social entrepreneurship have not yet been adequately
explored. Authors such as Neck, Brush and Allen (2009, p. 15), suggest that “a lack of
agreement on what defines social entrepreneurship or a social entrepreneur may not
be important”, what really matters is, understanding the landscape of the sector.
Careful analysis of the growing literature reveals a perceived risk that the term social
entrepreneurship could become very inclusive and, as a result, represent an immense
tent into which all kinds of socially beneficial activities fit (Martin and Osberg, 2007).
William Drayton, founder of the world’s first organization to promote social
entrepreneurship, Ashoka‟, is credited with coining the phrase “Social
Entrepreneur”, to describe a person who recognizes logjams in society and finds
ways to free them. In spite of the varying definitions of social entrepreneurship, one
prominent commonality emerges in almost all descriptions is the problem-solving
nature‟ of social entrepreneurship”.
Opportunities And Challenges
The market and the state cannot, on their own, regulate and solve all problems. New
approaches are required to tackle major social issues, “most especially in the

presence of the systematic retreat of the governments from the provision of public
goods in the face of new political ideologies that stress citizens ‟self-sufficiency and
give primacy to market-driven models of welfare” (Nichols, 2006, p. 1).
If economic globalization offers opportunities to improve living conditions, it also
implies substantial and continuous restructuring and change and a renewed or new
approach, not only to the new social challenges but also to the old ones that have
not yet been met successfully. Keeping in view the increasing competition, all fields
have to engage more strongly in innovation, both technological and social, and in
entrepreneurship, both commercial and social objectives. The most urgent challenge
for national governments, local authorities, policy makers and economic stakeholders
is to promote sustainable economic and social development so that once the
economy has recovered; the benefits can be widely diffused. Social entrepreneurship
and social innovation are part of the solution, as they both explicitly aim at providing
innovative solutions to unsolved social problems. Social value creation should be at
the heart of their mission in order to improve individuals‟ and communities‟ lives
and increase their well-being.
Significant changes occur in the field of social enterprise, including major
developments in the flow of funding, growing but often untapped philanthropic
resources, and a shift in the role of government. All of these changes occur against a
large backdrop of demographic and economic challenges, as boundaries blur among
the traditional nonprofit, for-profit, and public-sector silos. Currently, the sector
remains on the verge of several possible futures, including consolidation,
entrepreneurial growth, and expressive experimentation. The scenario that unfolds
over the next 20 years will depend largely on the ability of social enterprise leaders to
make a leap forward in thought and action to capitalize on the abundant potential
for social change.
Social Entrepreneur
A social entrepreneur identifies practical solutions to social problems by combining
new processes, services and products to address complex social problems. Social
entrepreneurs are individuals with innovative solutions to society’s most pressing
social problems. They are ambitious and persistent, tackling major social issues and
offering new ideas for wide-scale change. Rather than leaving societal needs to the
government or business sectors, social entrepreneurs find what is not working and
solve the problem by changing the system, spreading the solution, and persuading
entire societies to take new leaps. Social entrepreneurs often seem to be possessed
by their ideas, committing their lives to changing the direction of their field. They are
both visionaries and ultimate the practical implementation of their vision above all
else.
Just as entrepreneurs change the face of business, social entrepreneurs act as the
change agents for society, seizing opportunities others miss and improving systems,

inventing new approaches, and creating solutions to change society for the better.
While a business entrepreneur might create entirely new industries, a social
entrepreneur comes up with new solutions to social problems and then implements
them on a large scale
Social Entrepreneurship And Higher Education
A growing number of colleges and universities are establishing programs focused on
educating entrepreneurs. As a scholarly field of inquiry, social entrepreneurship is in
its embryonic stage of development. Social entrepreneurship has been a topic of
academic inquiry for nearly 20 years, yet relatively little scholarly output has
appeared in mainstream management and entrepreneurship journals. Future
research would benefit from the incorporation of multivariate methods to
complement the case study techniques that have dominated previous efforts.
Social Entrepreneurship Characteristics:
Among the innate characteristics or psychological factors in the case of social
entrepreneurs, Nga and Shamuganathan (2010: 260-261) highlight as main
characteristics:
 The ability to make good contacts and express own beliefs or feelings with
ease (extroversion);
 A natural position of openness to the surrounding environment or exterior
phenomena (openness);
 Being easily accepted through being pleasant and friendly (agreeableness);
 The tendency to obsess about things considered important (neuroticism); and
 Reliability and conscientious and thorough development of the task itself
(conscientiousness).
As for the practices that characterize social entrepreneurs, social entrepreneurship
includes those that deepen the company's corporate social responsibility and those
that refer to the variations in company executives' concerns with social problems.
Some of these practices are:
o Taking ethical components into account when formulating the strategy;
o Maintaining management commitment to surrounding social problems;
o Some company or management objectives of a social, rather than merely an
economic nature;
o Seeking information on business projects that can also have a social benefit;
and
o The company dedicates part of its budget and its activity to obtaining
economically viable goods and services that also benefit the neediest sectors
of society.

Development of Business Incubator Company
Introduction:
The basic purpose to develop the company is to provide workspace,
coaching, and support services to potential entrepreneurs at early-stage of
their entrepreneurial careers. Our core objective is to encourage and support
the rural area population male and female (domestic women) to take
initiative and commence their own venture though effectively utilizing the
available resources and their skills. For the attainment of this objective at
initial I have decided to develop an organization in individual capacity which
serves as a business incubator for the upcoming and tentative entrepreneurs.
The secondary purpose if the company will be to carry out the trading
activity and earn profit through outsourcing the orders from the Local and
Foreign buyers at highly affordable prices. Our primary purpose to form this
organization is to develop to Business Incubator, which will not only educate
and train the entrepreneurs but will help them to continue their ventures
through continually assisting them in their entrepreneurial life.
We are committed to create a diversified value chain through effectively
developing the Micro Level Enterprises with the help of these entrepreneurs
and provide value to our customer with affordable price and the pride to
contribute toward a social cause.
This success of the venture will allow us to transform it in to the:
“Entrepreneurial Development Incubator Company”

Table of Contents
 Executive Summary
 The Business Concept
 Industry / Market Analysis
 Management Team
 Product / Service Development Plan
 Financial Plan
 Time Line
 Bibliography

Executive Summary
It gives indeed pleasure to pen down the idea and to introduce one of its
own kinds the Entrepreneurial Development Incubator Company. This
company will be formed and developed to materialize the concept of Social
Entrepreneurship in its true spirit. The purpose is not to run a business and
to earn profit but to passionately participate in the socio-economic
development of the country through developing entrepreneurs at micro level.
It will not only help the country to move towards the economic growth &
sustainability and will also help us to bring the economic prosperity among
the neglected class of the society.
The basic purpose is to form the company is to develop the entrepreneurs
in the diversified area. Most of the people in the third world countries are
unable to capitalize their potential in a very true manner due to lack of
proper guidance and the availability of the financial resources. This company
has been formed to identify those individuals which have an ability to create
some value for the people through their exceptional skills and they are
motivated towards forming a venture in their respective area of skill. Our
main focus is to encourage the individuals of the rural areas and the
specifically the women to come forward and commence their own business
ventures at small and medium level. Our focus will be on the rural area’s
population and we will struggle to facilitate those individuals who have
potential and courage to do something for themselves and others. We will
not only help them to initiate their own venture and create employment
opportunities for others, but will also educate and train them in their
respective area of interest before commencing their own doing business and
will continually support them throughout their entrepreneurial journey. For this
we will intend to design a comprehensive training program namely the
Entrepreneurial Development Program.
Our secondary objective but key to success is to explore local and global
market and develop the contacts and fetch the orders in the diversified
product line. At initial our strategy is to get manufactured and dispatch
these orders to our valued customers via outsource the orders. But with the
passage of time we will be able to develop a value chain through developing
the Micro Level Enterprises.

Business Concept
This business incubator company will work in diversified business areas. First
and foremost objective is to formalize a strong marketing activity and bring
the orders from the local and foreign buyers in the following product
categories:
 Livestock (Meat Products)
 Fish
 Honey & Allied Products
 Gem & Jewelries Including the Precious Stones
 Handy Crafts
 Apparel Products (Knitted / Woven)
At initial stages we will be focusing to fulfill our customers’ requirements in
the given product categories through outsourcing at low profit level. With the
passage of time all the future orders will be fulfilled through the
entrepreneurs developed by our company under the entrepreneurial
development program.
Revenue Sources
In the beginning we will be marketing ourselves as one of the reliable
supplier and trader of the following products:
1) Edible Products
i) Meat Products
ii) Grains / Wheat / Rice / Pulse
iii) Fruits
iv) Sea Food Products
2) Apparel Merchandises
i) Knitted / Hosiery
ii) Woven
3) Antiques and Valuable Handy Crafts
4) Gems & Jewelry Products
i) Artificial
ii) Original
As defined we will be fulfilling all the orders through outsourcing at
competitive prices. But our ultimate aim will be to develop a value stream
through successfully developing the Micro Level Enterprises in the same
product categories. This value stream will not only be the cost effective for

us but will also help us to maintain the quality of the goods supplied by us
to the customers.
Competitor Analysis
We are trying to enter in to the markets which possess a high competition,
where already manufacturer and traders are dealing in the same product
categories. They are not successfully serving the markets but they are
already penetrated. We are going to face a lot of resistance and competition
from global and local in markets.
Our focal challenge is to develop our credibility among the potential buyers
of the products and gain their confidence. It can be done through
differentiating ourselves from others not only in terms of quality and price
but we have to prove ourselves as one of the committed suppliers of goods
in term on time delivery of the products.
TOWS Analysis
Threats:
 Improper infrastructure of the rural areas and the availability of
insufficient resources.
 Lack of coordination among the different governmental organizations.
 Resistance from the external environment.
 Financial constraints that can limit the required pace of growth.
 Depending on human capabilities rather on technological equipments.
 A threat of quick imitation of the strategy.
 Logistics Cost will be the vital.
Opportunities:
 Availability of sufficient human resource with the right attitude which can
lead us towards attainment of our goals & objective.
 No direct competition in the global market and we can capitalize the idea
through effective planning.
 We can achieve rapid growth with effective utilization of diversified
workforce.
 Our effective public relation activities will help us to develop effective
relationship with the governmental organization and other relevant non-
government which can help us to effectively implement and our
entrepreneurial development program.
 If we will be able to effectively serve our primary purpose of the
foundation then foreign buyers will definitely extend their cooperation for
further expansion of business.

Weaknesses:
 A unique idea and cause without adequate experience.
 If persistency will not be shown the failure is evident.
 Time constraint is the factor which will limit the rapid expansion.
 There are very vital chances that Initial working years will be with low
profit margins or without profits.
 We have to imitate every project from the basics under our
Entrepreneurial Development Program.
 In past it has been observed that the Micro Level Enterprise has short
span of life.
 Mushroom growth of the Micro Level Enterprise will be harmful for the
progress.
Strengths:
 We are confident that our steering team has an ability to produce results.
 Self-driven policies for the attainment of objectives.
 Rather acquiring we are focusing to develop.
 Our efficient marketing team can transform the idea into reality through
effectively enhancing the global customers’ network.
Marketing Strategy
We have decided to segment our market on the basis of geographical
location and further we have segregated them into two broader categories
Local and Global.

Local Markets:
The local market will comprise on the markets which will be similar to our
markets in terms of culture, traditions and behaviors. Initially we have
included the following regions into this category:
 South Asian
 Middle East
 Far East
Global Markets:
All potential markets existing other than the above define local markets will
be considered as Global Market. We can distinguish this market into following
regions:
 European
o Western Europe
o Eastern Europe
 North America
 Africa
 Asia
Our marketing department will comprise on two different teams which will
work separately on each market segments. In beginning our aim will be to
introduce ourselves as one of the reliable suppliers of the above define
product categories and get the orders from the buyers. Our focus will be to
become a reliable business partner of our valued customers.
Business Operations
Our operational activities can be divided as follows:
Marketing:
I. Marketing will be the core activity of our business process and our all
success will be depending on the success of marketing department.
Operations:
Our operations department will carry out the following activities:

I. Managing and Looking after the outsourced orders and make sure that
all the orders will be completed and shipped to our customers with in
the defined time limits with the specified quality and quantity.
II. They will be closely liaison with the marketing department and
continually update them about the status of the production of the
each order.
III. They will be in cooperation with the Human Resource Department for
the successful implementation of the Entrepreneurial Development
Program.
IV. They will be responsible to provide all the necessary information for
the feasibility of each newly stated business under this training
program.
V. They will continually monitor the performance of the newly develop
Micro Level Enterprises and will provide all the necessary technical
assistance whenever required.
Finance & Accounts Department:
I. They are responsible to manage all the necessary financial records of
the company.
II. Coordinate with the Human Resource Department for the preparation of
financial feasibility of each the new venture under the Entrepreneurial
Development Program.
III. They will be continually assisting the trained entrepreneurs for the
maintenance of their accounts records.
Human Resource Department:
I. They are responsible to successfully plan and run the Entrepreneurial
Development Program.
II. They are responsible to develop to carry put effective public relationship
activities with different organizations at government and non-government
level and seek cooperation from them for the success of the said
program.
III. They will closely work with the Marketing, Finance and Operations
departments to synchronize the activities in relation to the EDP.
Entrepreneurial Development Program:

 Selection of the high potential individuals those who has an ability and
they keen to commence their professional career as an entrepreneur.
 They must be hard working and able to interact with the people highly
social can work under stress.
 They must be able to develop and lead team.
 A comprehensive education and training program will be inaugurate to
fully equip them with the appropriate knowledge skills and abilities to
run their own venture in their respective area of interest and ease to
doing business in their respective locality.
 They will be continually monitored and all the necessary assistance will
be provided to them whenever required.
 They will encourage supporting others for the development of their
own ventures.
 All the new ventures (Micro Level Enterprises) will be develop on the
basis of BOTT (Built Operate Train & Transfer).
Management
Our management philosophy will reflect the basis of the formation of the
company. We are closely baton with our social cause and our motto:
To re-shape the world
We do not believe in individuality and wants every ones contribution in the
process of growth and prosperity.
We do not want to indulge ourselves into the hierarchical structure burden,
in order to avoid the communication gap and unnecessary waste of time in
decisions making and approvals, we will follow the flat hierarchical structure.
The basic structure of our management will be as follows:
Our management practices will be based on the following principles:
Chief Executive
Human
Resource
Department
Marketing
Department
Operations
Department
Finance &
Accounts
Department

Cooperative Decision Making:
 We believe in collective wisdom and well come all the suggestions and
criticism for the betterment and improvement.
Employee Empowerment:
 We believe that our employees should be motivated towards the cause
and empower them to take initiative for the cause.
Innovation:
 We welcome and encourage the input from our employees and from
those who have been directly associated with us and provide them
opportunity to materialize their creative ideas and innovation.
Sympathy:
 We believe that our all acts will be towards the betterment of the
society and our actions will reflect the sympathy and affection toward
others.
Ownership:
 We believe that our employees will take the responsibility of their
decisions and face the outcomes as an owner.
Revenue Model
The below mention model will define our value stream:
Acquisition of
the Orders
from the local
and foreign
buyers in the
defined
product
Categories
Outsourcing
of orders for
manufacturing
Developing
value chain
through EDP
Order
fulfillment
through
effectively
maintaining
the specified
quality level
by the
customers
Organizati
on Growth
and
Profitability
through
expanding
customers
network

Arrangement of Seed Capital for the Venture:
Finance is the running blood of every organization and the new venture
cannot be successful without sufficient availability of the finance or if the
venture unable to generate enough finances to effectively run the venture.
The guaranteed success of this venture is also subject to the availability of
the planned finances. Initially I cannot finance the venture individually so I
have decided to opt the following propositions of the finance for the
venture:
1. Angel Funding:
I am intended to present the idea to the existing entrepreneurs to
finance the venture on the basis of profit sharing which will be the
fifty percent of the net profit. And their initial investment on the
venture will be reverting back to them within a specified time period.
Or they will have an opportunity to get the shares of the company at
the end of five years.
2. Financial Institutions Funding:
Our second option is to arrange the finance for the venture from
financial institutions and from Banks. We are emphasizing to avail the
finances on the basis of gain sharing and the seed capital will be
return back to them within the agreed period of time. The equity will
also be offer to them upon successful completion of venture against
the seed capital. If the above criterion of the finance will not be
available then we will opt for the debt financing at affordable and
realistic payback charges. Before this all the possible options will be
discuss before finalizing the decision.
3. Donor Agencies & Governmental Institutions:
We will be continually in coordination with the International & local
Organizations those who have been working on the poverty alleviation
programs and struggling for the socio-economic empowerment of the
less privileged classes including Asian Development Bank (ADB), UNDP,
European Union, etc.
We will also be closely liaison with the Governmental organizations and
intuitions those who has been working for the same cause and
struggling to eliminate poverty from the country.

Financial Analytics:
Projected Sales Forecast
(All amounts are in million rupees)
Product Categories
Base Year Year 2 Year 3 Year 4 Year 5
G L T G L T G L T G L T G L T
R s. R s. R s. R s. R s. R s. R s. R s. R s. R s. R s. R s. R s. R s. R s.
1) Apparel Merchandise
6 2 8 7 2 9 9 2 11 10 3 13 12 3 16
2) Edible Products 5 3 7 5 3 8 6 4 10 8 4 12 9 5 15
3) Antiques & Handy Crafts 1 0 1 1 0 1 1 0 1 1 0 1 2 0 2
4) Gems & Jewellery
Products
2 0 3 3 1 3 3 1 4 4 1 5 5 1 6
5) Miscellaneous Goods 2 1 2 2 1 2 2 1 3 3 1 3 3 1 4
Total Sales 15 5 20 18 6 24 22 7 29 26 9 35 31 10 41
0
5
10
15
20
25
30
35
40
45
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Global Local Total Global Local Total Global Local Total Global Local Total Global Local Total
Base Year Year2 Year 3 Year4 Year 5
ProejctedSalesForecast
1) Apparel Merchandise 2) Edible Products 3) Antiques & Handy Crafts
4) Gems & Jewellery Products 5) Micelaaneuous Goods Total Sales

Proforma Balance Sheet
(Amount in Million Rupees)
Assets
Fixed
Assets:
Furniture
And Fixtures 0.50 0.50 0.50 0.50 0.50
Less:
Accumulated
Depreciation 0.03 0.475 0.05 0.45 0.08 0.43 0.10 0.40 0.13 0.38
Vehicle 0.50 0.50 0.50 0.50 0.50
Less:
Accumulated
Depreciation 0.03 0.475 0.05 0.45 0.08 0.43 0.10 0.40 0.13 0.38
Total Fixed
Assets 0.95 0.90 0.85 0.80 0.75
Current
Assets:
Cash 3.82 4.86 4.76 5.00 4.38
Prepaid
Rent of
Warehouse
and Office 0.70 0.70 1.00 1.00 1.00
Accounts
Receivable
(5% of
Sales) 0.90 5.42 1.20 6.76 1.44 7.20 1.73 7.73 2.07 7.45
Total
Current
Assets 5.42 6.76 7.20 7.73 7.45
Total Assets 6.37 7.66 8.05 8.53 8.20
Equities
Liabilities
Long Term
liabilities:
Loan
Payable 5.00 5.00 5.00 5.00 5.00
Less:
Loan
Installment 0.50 4.50 1.00 4.00 1.50 3.50 2.00 3.00 0.50 4.50
Long Term
liabilities 4.50 4.00 3.50 3.00 4.50
Short Term
Liabilities:
Accounts
Payable
(10% of
Sales) 1.05 2.40 2.88 3.47 4.15
Total Short
Term
Liabilities 1.05 2.40 2.88 3.47 1.05
Owner's
Equity:
Personal
Contribution 0.50 0.50 0.50 0.50 0.50
Add: Net Profit 0.52 0.86 1.27 1.76 2.35
Less:
Personal
Drawings 0.20 0.10 0.10 0.20 0.20
Total
Owner's
Equity 0.82 1.26 1.67 2.06 2.65
Total
Equities 6.37 7.66 8.05 8.53 8.20

Proforma Income Statement
Proforma Income Statement
(All Amounts Are in Million Rupees)
Sales 20.00 24.00 28.80 34.56 41.47
Less:
Cost of Goods
Sold
Procurement Cost
(70 % of Sales)
14.0 16.8 20.16 24.2 29.03
Direct Logistics
(3% of Sales)
0.6 0.72 0.86 1.04 1.244
Direst Support
Services (3% of
Sales)
0.6 0.72 0.86 1.04 1.244
Ware Housing Cost
(3% of the sales)
0.6 15.8 0.72 19 0.86 22.75 1.04 27.3 1.244 32.76
Gross Profit 4.2 5.04 6.05 7.26 8.71
Less:
Marketing Expenses
(2.5 % of Sales)
0.50 0.60 0.72 0.86 1.04
Human Resources
Expenses (2.5% of
Sales)
0.50 0.60 0.72 0.86 1.04
Operational
Expenses (2.5% of
Sales)
0.50 0.60 0.72 0.86 1.04
Utility Charges (3%
of Sales)
0.60 0.72 0.86 1.04 1.24
Rent Expenses (1
% of Sales)
0.20 0.24 0.29 0.35 0.41
Loan
Reimbursement
0.50 0.50 0.50 0.50 0.50
Depreciation
Expenses
0.05 2.85 0.05 3.31 0.05 3.86 0.05 4.52 0.05 5.32
Earnings Before
Interest & Taxes
1.35 1.73 2.19 2.73 3.39
Less: Interest Expense 0.70 0.70 0.70 0.70 0.70
Estimated Income
Tax
0.14 0.17 0.22 0.27 0.34
Earning After
Interest & Taxes
0.52 0.86 1.27 1.76 2.35

Time Line
If we get the required finance to commence the venture then I am confident
that the venture will be fully operative and striving towards its goals within
the initial three years.
Our venture will be transform into the public limited company at the end of
the fifth year.
It is evident that we will be able to develop an effective value chain with the
through developing the Micro Level Enterprises under our Entrepreneurial
Developing Program.
Harvest Strategy
Initial Public Offering (IPO):
As I have earlier mentioned that the venture will be transform into the Public
Limited Company and the equity offering will be as followed:
 The 25 % shares will be offer to the angle financers / financial
institutions
 The 24 % will be offer to the public and in case of the debt financing
of the 49% shares will be offer publicly.
 The 51% shares will be owned and retained by the company.
Critical Risk
 Unable to get finance for the venture.
 Marketing Department will unable to produce desired results.
 Global Business Environment will be affected due to unavoidable
circumstances.
 Unable to develop value stream through Micro Level Enterprise
Development.
Conclusion
Under the entrepreneurial development program, the interested and the
capable individuals will be selected from different rural areas and they will
be trained in their respective area in accordance with the conditions, ease to
do business and the resources available in their locality.

To attain this objective we will be closely in correlation with governmental
departments those who have been already responsible to provide training the
individuals in different meadows.

Term project entrepreneurship (94255)-fall 2016-social entrepreneurship-a new dimension-entrepreneurs development incubator company-paf-kiet (city campus)

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