To give direction and vision Evaluate the prospects Monitor the progress Seek loans Guide entrepreneurs Identify strength and weakness Identify opportunities and challenges

1. BUSINESS PLANNING PROCESS
&
Theories Of Entrepreneurship

2. Meaning And Objectives
• To give direction and vision
• Evaluate the prospects
• Monitor the progress
• Seek loans
• Guide entrepreneurs
• Identify strength and weakness
• Identify opportunities and challenges

3. Scope And Value Of The Business Plan
• To determine the viability of the venture
• Provide guidance
• Tool in helping to obtain finance

4. Steps In Preparing A Business Plan
• Preliminary investigation
• Business planning process:- a. Idea generation
b. Env. and scanning
c. Feasibility analysis***
d. Drawing functional plans****

5. Feasibility Analysis
• Market analysis
• Technical/ operational analysis
• Financial feasibilities

6. Drawing functional plans
• Marketing plans
• Marketing plans
• Production plans
• Organizational / HR plans
• Financial plans

7. Theories Of Entrepreneurship

8. Economist Richard Cantillon (18th
century)
• Entrepreneur is an agent who buys means of
production at certain prices to combine them
into a new product
• He connects producer to consumers

9. Frank Knight’s Risk Bearing Theory
• He introduced the dimension of risk taking
• Uncertainty as a factor of production
• Function of Entrepreneur as acting in
anticipation of future events
• Entrepreneur earns rewards for taking risk

10. Alfred Marshall
• Entrepreneur is driving factor that brings land,
labor, capital and organization together
• Entrepreneur’s success depends upon
economic situation in which they attempt to
make endeavor

11. Max Weber's Sociological Theory
• Social factor as a driving force of
Entrepreneurship
• He held religion as the major driver
• Right combination of discipline and an
adventurous free spirit define the success of
entrepreneur

12. Mark Casson’s economic theory
1945
• In his book ”entrepreneurship, an economic
theory” he stated that the demand for
entrepreneurship arises from the demand for
change
• Entrepreneurship is result of conducive
economic conditions

13. Joseph Schumpeter's Innovative
Theory -1949
• Innovation
• Foresight
• Creativity

14. Iserael Kirtzner’s Theory Of
Entrepreneurship-1939
• Spontaneous leaning and alertness are two
major characteristics of entrepreneurship

15. Leibenstein’s theory of
entrepreneurship-
• Considers entrepreneurs as gap fillers

16. McCllland’s Theory of Achievement
motivation
• People have three motives for accomplishing
things
• Need for affiliation
• Need for achievement
• Need for power

17. Peter Drucker’s Theory Of
Entrepreneurship
• Innovation
• Resources
• Entrepreneurial behavior
as the keys to entrepreneurship

18. Schumpeter’s View On
Entrepreneurship
• New product
• New market
• New method
• New source
• Monopoly position
• Distinction between innovator and inventor

19. • Entrepreneur is change agent
• Entrepreneurship function in the economic
development