Entrepreneurship is like swimming, Cannot be learnt by reading about it
What is an Entrepreneur?• An Entrepreneur (ahn’tra pra nur) is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur.
Entrepreneurship• Agricultural students have been entrepreneurs since the beginning of agricultural education.
Entrepreneurship• The Smith-Hughes Act of 1917 (which provided federal funding for agricultural programs) required all students to have an entrepreneurship program – but they weren’t called entrepreneurs back then.
Early Entrepreneurship• These early entrepreneurship programs were called different names: – Farming Program – Productive or Production Enterprises – Ownership
Early Entrepreneurship• The early SAE Entrepreneurship program primarily involved: – Raising Livestock – Growing Crops
Entrepreneurship Today• Today, agricultural students are involved in many different types of entrepreneurial activities.• Entrepreneurship in agriculture can still be raising livestock and growing crops, but it can be much, much more than that.
Agricultural Entrepreneurship• Entrepreneurship: The student plans, implements, operates and assumes financial risks in a farming activity or agricultural business. In entrepreneurship programs, the student owns the materials and other required inputs and keeps financial records to determine return to investments.
Agri-Entrepreneurs Example• Lawn Maintenance Raise and Sell Service Fishing Bait
Agri-Entrepreneurs Example• Custom Crop • Pet Sitting Service Harvesting
Agri-Entrepreneurs Example• Fishing Guide Tractor and Farm Equipment Detailing
Agri-Entrepreneurs Example• Operating a Making and Selling Roadside Christmas Wreathes Marketing Selling Produce
Agri-Entrepreneurs ExampleOperating a Small Engine Repair Service
Three Aspects of Entrepreneurship• 1. The identification/recognition of market opportunity and the generation of a business idea (product or service) to address the opportunity
Three Aspects of Entrepreneurship• 2. The marshalling and commitment of resources in the face of risk to pursue the opportunity
Three Aspects of Entrepreneurship• 3. The creation of an operating business organization to implement the opportunity- motivated business idea
Successful Entrepreneurs• According to the Small Business Administration, successful entrepreneurs have five characteristics: – Drive, which is defined as the most important attribute. Entrepreneurs can expect long hours, high stress and endless problems, as they launch a new business.
Successful Entrepreneurs• According to the Small Business Administration, successful entrepreneurs have five characteristics: – Thinking Ability, or the characteristic that encompasses creativity, critical thinking, analytical abilities and originality.
Successful Entrepreneurs• According to the Small Business Administration, successful entrepreneurs have five characteristics: – Aptitude for Human Relations. This characteristic recognizes the importance of the ability to motivate employees, sell customers, negotiate with suppliers and convince lenders. Personality plays a big part in success in this area..
Successful Entrepreneurs• According to the Small Business Administration, successful entrepreneurs have five characteristics: – Communication Skills, or the ability to make yourself understood.
Successful Entrepreneurs• According to the Small Business Administration, successful entrepreneurs have five characteristics: – Technical Ability speaks to the need of the entrepreneur to know their product and their market. They must consider the long- and short-term implications of their decisions, their strengths and weaknesses, and their competition. In short, they need strategic management skills.
Entrepreneurship• Some advantages – You are your own boss – Enjoy the profits from you efforts – Sense of pride in your business – Flexibility in your work schedule
Entrepreneurship• Some disadvantages – Will need to put in long hours – Need money to start – Have to keep up with government rules and regulations – May have to mark hard decisions (hiring, firing, etc.) – May lose money
FFA and Entrepreneurship• During the past decade the Kauffman Foundation has supported a new FFA initiative to support entrepreneurship activities – Awards program (and money) – Video “You’re the Boss” – Materials
FFA Agri-Entrepreneurship Program• Each state recognizes the agricultural student who has the best entrepreneurship program.• There is cash award of $100 at the state level.• All entries at the state level go on for national competition.
FFA Agri-Entrepreneurship Program• At the national level, 10 outstanding entrepreneurship students are recognized.• There is cash award of $1000 for each national winner• The FFA chapters of the national award winners each receive $500.
What is Entrepreneurship? • The Process of Bearing Risk of Running a BusinessWho is an Entrepreneur ? • A person who takes the risk of converting a new idea into reality.
Requirements to be an entrepreneur• Innovation,• Creativity• Risk Taking• Organization The Builder of Indian Industry J R D TATA
Promoting Entrepreneurship In India, where over 30 crores people are livingbelow the poverty line, it is simply impossible for anygovernment to provide means of livelihood toeveryone.Such situations surely demand for a continuous effortfrom the society, where the people are encouraged tocome up with their entrepreneurial initiative.
• Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends.
• After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.
• Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built Indias largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.
• N.R.Narayana Murthy An Indian IT chief whos really made it big without dropping his ethical precepts by the wayside is Nagawara Ramarao Narayana Murthy, Chairman of Infosys.• Born in 1946, Murthys father was a schoolteacher in Kolar district, Karnataka, India. A bright student, Murthy went on to acquire a degree in Electrical Engineering from Mysore University and later studied Computer Science at the IIT, Kanpur, India.
• The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company, along with six friends. There was a minor hitch, though-he didnt have any seed money. Luckly, like many Indian women who save secretly without their husbands knowledge, his wife Sudha- then an engineer with Tatas- had saved Rs 10,000. This was Murthys first big break.
Infosys• The decade until 1991 was a tough period when the couple lived in a one-room house. The second break came in 1991 when Indian doors to liberalization were flung open… Murthy grabbed the opportunity with both hands and has never looked back ever since. Today, Infosys is the first Indian company to be listed on the US NASDAQ.• It provides employment to 85,000 people.
Food king• When 27-year old Sarathbabu graduated from the Indian Institute of Management, Ahmedabad, he created quite a stir by refusing a job that offered him a huge salary. He preferred to start his own enterprise -- Foodking Catering Service -- in Ahmedabad.
What will be the qualities needed to succeed in this new world?First and foremost, we need the entrepreneurial spirit.• Outside India, this spirit has been very evident in the IT industry.• 35% of the start-ups in Silicon Valley are by Indians.• We need to have similar risk-taking ability within the country as well.
• What they need is the continuous energy and optimism.• Entrepreneurs must learn how to overcome the risk of failure, or of vulnerability.
Qualities of an Entrepreneur: 1. Common Sense: 2. Specialized Knowledge of the Field: 3. Self Confidence: 4. Ability to Get Things Done: 5. Creativity: 6. Leadership: 7. Communication Skill: 8. Willingness to take Risk: 9. Willingness to Accept Criticism: 10. Self Motivation and 11. Determination :
Qualities of an Entrepreneur:7. Communication Skill:8. Willingness to take Risk:9. Willingness to Accept Criticism:10. Self Motivation and11. Determination :
Suggested Areas for TAMILNADU1. Food sector - Food Processing, Packaging, Cashew processing, Bakery and confectionery.2. Fisheries - Fish Hatchery, Processing units, Aquarium, Sea Food sector,3. Plant tissue culture, Nursery, Horticulture, Floriculture and Farm management.4. Diagnostic testing labs – Biochemical tests, water testing, Environmental testing and medical laboratory testing.5. Information Technology Enabled Services, Software Development and Data analysis.
Suggested Products• Decorative papers• Paper Bags• Paper board cartons• Paper cups/plates• Paper envelopes• Drinking straws
Suggested Products• Paper napkins including facial tissue napkins• Gummed tape• Teleprinter rolls• Stencil paper• Toilet paper rolls and sheets• Letter pads
Suggested Products• Hot water bags Rubber• Rubber balloons• Rubber washers• Rubber eraser• O ring rubber
INTRODUCTION• A Project report is a written document containing complete information about the proposed project in summary form.
IMPORTANCE OF PROJECT REPORT• It act like a reference guide.• It is a basis for obtaining loans.• The government sanction license or certificate of registration.• It is like a controlling device.• It supplies information.• It is used as a basis by promoters to take investment decisions• It enables to evaluate the soundness of the project
CONTENT OF THE PROJECT REPORTName and address of the promoters/ firm.Objectives and scope of the project.Market Study: Project report gives the analysis of the market in respect of:Size of the market for the proposed product.Present demand and supply position.Future prospects of market share.Number of suppliers/manufactures and extend of competition.Availability of intermediaries – wholesalers and retailers.
TECHNICAL STUDIES• The Project report should provide details about the technonology and tools needed and the sources of availability technical study coves area like- – A)Technical specifications of the product to be manufactured. – B) Raw materials including the source of supply. – C) Manufacturing process. – D)Plat and machinery. Tools and equipment etc. – E)requirements of land and building. – F) Location and Layout of the Plant
Project Cycle1. Preparatory phase Project development2. Project design3. Preparation of the document4. Internal approval5. Fund raising6. External approval7. Implementation8. Evaluation
Preparatory phase1. Identification of needs2. Identification of priorities at the a. International level Conference of the Parties (COP) b. Regional level Business Plan of the BCRC in your region c. National level3. Development of a Strategic Plan / National Plan for (Sustainable) Development4. Identification of activities, goals and time frame Awareness raising
Project Identification• Project Environmental Identification Assessment (technical, social, based on economic) identified activities, goals and time frames Project Development
Project design What do you want to achieve with your project (goals, outcomes)? What kind of background information is needed/available to quantify the need (data)? How much time is available and needed to achieve these goals (time frame, project implementation phase)? What activities have to be undertaken to achieve the goals? Which partners/stakeholders are needed or need to be involved? What financial resources are necessary?
Project content: Project summary1. Contains a summary of the projects2. Is comparable to an Abstract of a Scientific Paper3. Highlights the main a) Background information b) Needs c) Objectives d) Activities e) Results f) Outputs
Project content: Background1. Gives the basis, background, starting point for the project2. Focuses on information relevant to pointing out the needs and objectives3. Highlights the gaps of a) Information, b) Data c) Capacity, etc.4. Sets the political and policy framework a) International agreements b) Goals of National Strategic Plans/Development Plans c) Voluntary agreements/initiatives5. Provides a list of needs
Project content: Proposal1. Needs to be short;2. Explains in a few sentences the purpose of the project;3. Describes the chosen methodology;4. Provides criteria or justification for the countries/region selected;5. Describes the division of responsibilities amongst the partners;6. Lists the main activities, e.g. pilot projects, survey, pilot disposal activities, awareness;7. Is the introduction to the description of the section on objectives, results, outputs;8. Touches on the expected beneficiaries, expected impacts.
Project content: Objectives• Objectives are high level aims which the project’s results will not necessarily fully satisfy.• Objectives should identify short, medium and long- term benefits.• Have a concrete list of what you want to achieve• Make a clear distinction between the objectives and the results
Project content: Results• Results are desired outcomes involving tangible benefits to end-users expressed as a standard value or aspects (…)1. Express results as qualitative, quantitative or value- added aspects;2. Give results a concrete nature in relation to the objectives;3. Make sure results have a clear cause-and-effect relationship with the objectives;4. Results should identify the end-users or beneficiaries;5. State a meaningful and detectable change;6. Avoid long-term goals;7. Never formulate results in an open-ended or on-going manner.
Project content: Outputs• Outputs are the lowest level results in the logical intervention chain and the final and concrete products of the activities undertaken.• An output is a specific product delivered by the activities that are needed to accomplish the project’s objectives and results.1. Outputs should constitute the optimal combination necessary for achieving the results;2. They should be deliverable, given the project timeframe and resources;3. They should be described as concretely and precisely as possible, and in quantifiable terms.
Project content: Activities• Activities describe the specific work or tasks to be performed within the project to transform resources into outputs =• Activities illustrate the link between inputs and outputs and produce the outputs.1. Activities should be formulated in a concrete manner.2. Activities should be selected based on a clear understanding of the problems and an analysis of the opportunities and risks of the situation.INPUT Activities OUTPUT
Project Budget and Work Plan• Budget• Needs to be prepared according to the formats of the donor agency, e.g. according to the UNEP Project Manual• Work plan• Provides the concrete implementation plan for the project;• Sets the deadlines to achieve milestones, to finish modules/phases of the projects;• Assigns to each activity a period and moment within the project implementation phase when the activity is supposed to be carried out.
Project Approval Procedure National National Focal Point National Stakeholders StakeholdersCommitment on Co- Revision of proposal Approval for approval by Int.Funding, Partnership,etc. Partner International Partner (UNEP, IE for GEF, etc.) Revision of proposal for approval by Int. Donor Agency International Donor (Agency) (UNEP, IE for GEF, etc.)
MEANING OF PROJECT REPORT• A Project Report is a written document pertaining to any investment proposal. It contains relevant data, on the basis of which the project has been appraised and found relevant to the entrepreneur.• A project Report is prepared by the expert after detailed study & analysis of the various aspects of a project.
FEATURES OF THE PROJECT REPORT It is basically a business plan. It outlines the desired goals. It describes all the necessary inputs to the enterprises. It explains the mode of utilization of the resources. It details the strategies for the execution of the project.
OBJECTIVES OF PROJECT REPORT To identify the requirement of the resources (technical, financial, commercial, managerial and operational) To find out the critical components of the project idea. To obtain the opinions of experts from various fields. To facilitates financial appraisal of the project by financial institutions, banks, insurance companies, etc.
USES OF PROJECT REPORTThe information contained in the project report is very useful for:- ENTREPRENEUR FINANCIAL INSTITUTIONS GOVERNMENT
Need for project formulation• Selection of appropriate technology• Influence of External Economics• Dearth of Technically Qualified Personnel• Resource mobilization• Knowledge about Government Regulations
ELEMENTS OF PROJECT REPORT Description of the entrepreneur Description of the enterprise & brief summary of the project. Inputs for the proposed project Financial Aspects Economic Viability Total income, operative net profit, etc. Profitability analysis. Information regarding technical feasibility, marketing ,present demand, etc.
STEPS IN THE PREPARATION OF A PROJECT REPORT General Information Preliminary analysis of alternatives Project Description Marketing Plan Capital Requirement & Costs Operating Requirement & Costs Financial Analysis Economic Analysis Miscellaneous analysis
Significance of a project formulation• Project formulation is the best passport for obtaining the required assistance from financial institutions.• It will also be of great assistance for obtaining necessary Government clearances and in meeting the hurdles of procedure formalities.• It will pinpoint the matters for which government sanctions have to be obtained.• It will provide an independent assessment of the feasibility of obtaining the sanctions based on the existing government policies.
Elements of Project Formulation• Feasibility analysis• Techno-economic analysis• Project design and network analysis• Input analysis• Financial analysis• Social cost benefit analysis• Project appraisal
Project selection• Economic size• Status of industry or scope• Raw material availability• Cost of production• Capital cost• Utility requirements• Infrastructure facilities needed• Profitability• government policy
Preparation of project formulation 1.Preliminary study 2.Group discussion 3.Prepare project report 4.Obtain government clearance5.Submit the application to financial institutions 6.Implement 7.review
3. Prepare project reportPhase 1 Prepare primary dataTechnical Personnel Project Net Work Marketing• Estimate Demand •Identify •Identify activities Cost of forecast promoters •Prepare time assets Estimate of •Decide Estimates product price organization •Draw network• Estimate •Plan man diagram cost of Estimate product mix power inputs requirement• Prepare flow chart
Phase 2 Financial projections • Estimate of working • Cost of project results • Means of finance • Balance sheet and cash flow
Phase 3 Economic analysis • Compute • Compute •Sensitivity •Debt service payback break oven analysis Coverage ratio period analysis • Internal rate of return
4.Obtain government clearanceIndustrial Controller of S.G. clearance Capital goods license capital issues Foreign MRTP clearance collaboration approval
5.Submit the application to financial institutions Obtain funds Create securityComply with Procure sanctionterms andconditions
Planning commission guidelines• General information• Preliminary analysis of alternatives• Project description• Marketing plan• Capital requirements and costs• Operating requirements and costs• Financial analysis• Economic analysis