This document provides an introduction to an entrepreneurship course for business graduates. The course objectives are to understand components of entrepreneurship like venture capital and stock options, learn how to develop business plans, be familiar with the entrepreneurship environment in Pakistan, and consider becoming an entrepreneur. It also discusses what entrepreneurship is, the forms it can take, and perspectives on entrepreneurship throughout history.

1. 11
EntrepreneurshipEntrepreneurship

2. 22
Why this course to Business graduates?Why this course to Business graduates?
The course provides an introduction to theThe course provides an introduction to the
elements of both high an low techelements of both high an low tech
entrepreneurship – idea generation, businessentrepreneurship – idea generation, business
plan development, incubation, funding, ventureplan development, incubation, funding, venture
capital, stock options etc.capital, stock options etc.

3. 33
Course ObjectivesCourse Objectives
At the end of the course, You shouldAt the end of the course, You should
 understand the various components related tounderstand the various components related to
entrepreneurship, such as venture capital, stockentrepreneurship, such as venture capital, stock
options, angel fundingoptions, angel funding
 know how to develop a business plan for anknow how to develop a business plan for an
entrepreneurial ventureentrepreneurial venture
 be familiar with the entrepreneurship environment inbe familiar with the entrepreneurship environment in
PakistanPakistan
 be equipped to consider becoming an entrepreneurbe equipped to consider becoming an entrepreneur

4. 44
Your Book

5. 55
Are you an Entrepreneur?Are you an Entrepreneur?
11 Are youAre you
 MarriedMarried
 SingleSingle
 WidowedWidowed
 DivorcedDivorced
22 Are youAre you
 MaleMale
 FemaleFemale
33 Why do you want toWhy do you want to
start a business?start a business?
 To make a lot of moneyTo make a lot of money
 To be independentTo be independent
 To give myself a jobTo give myself a job
 To gain powerTo gain power
 To become famousTo become famous
44 How comfortable areHow comfortable are
you with uncertainty?you with uncertainty?
 Very comfortableVery comfortable
 Somewhat comfortableSomewhat comfortable
 Not comfortableNot comfortable
55 To become successfulTo become successful
as an entrepreneur,as an entrepreneur,
what will you need?what will you need?
 MoneyMoney
 LuckLuck
 Hard workHard work
 A good ideaA good idea
 All of theseAll of these
66 Concerning yourConcerning your
willingness to take risk,willingness to take risk,
are youare you
 A high risk takerA high risk taker
 A moderate risk takerA moderate risk taker
 One who avoids riskOne who avoids risk

6. 66
Are you an Entrepreneur?Are you an Entrepreneur?
11 Are youAre you
 MarriedMarried
 SingleSingle
 WidowedWidowed
 DivorcedDivorced
22 Are youAre you
 MaleMale
 FemaleFemale
33 Why do you want toWhy do you want to
start a business?start a business?
 To make a lot of moneyTo make a lot of money
 To be independentTo be independent
 To give myself a jobTo give myself a job
 To gain powerTo gain power
 To become famousTo become famous
44 How comfortable areHow comfortable are
you with uncertainty?you with uncertainty?
 Very comfortableVery comfortable
 Somewhat comfortableSomewhat comfortable
 Not comfortableNot comfortable
55 To become successfulTo become successful
as an entrepreneur,as an entrepreneur,
what will you need?what will you need?
 MoneyMoney
 LuckLuck
 Hard workHard work
 A good ideaA good idea
 All of theseAll of these
66 Concerning yourConcerning your
willingness to take risk,willingness to take risk,
are youare you
 A high risk takerA high risk taker
 A moderate risk takerA moderate risk taker
 One who avoids riskOne who avoids risk

7. 77
Learning Philosophy for thisLearning Philosophy for this
coursecourse
We learn together!We learn together!
How much you get out of this dependsHow much you get out of this depends
on how much you put into iton how much you put into it

8. 88
Entrepreneurship Web SitesEntrepreneurship Web Sites
 Global Entrepreneurship Monitor (GEM):Global Entrepreneurship Monitor (GEM):
www.gemconsortium.orgwww.gemconsortium.org
 Garage.com:Garage.com: www.garage.comwww.garage.com
 NUS Centre for Entrepreneurship:NUS Centre for Entrepreneurship: www.fba.nus.edu.sgwww.fba.nus.edu.sg
 MIT Entrepreneurship Center:MIT Entrepreneurship Center:
www.entrepreneurship.mit.eduwww.entrepreneurship.mit.edu
 MIT Enterprise Forum:MIT Enterprise Forum:
http://web.mit.edu/entforum/www/chapters/chapters.htmhttp://web.mit.edu/entforum/www/chapters/chapters.htm
 University of Colorado at Boulder Centre forUniversity of Colorado at Boulder Centre for
Entrepreneurship (Business Plan templates):Entrepreneurship (Business Plan templates):
www.bus.colorado.eduwww.bus.colorado.edu
 The Angel Capital Electronic NetworkThe Angel Capital Electronic Network
http://ace-net.sr.unh.edu/pub/http://ace-net.sr.unh.edu/pub/

9. 99
EntrepreneurEntrepreneur
&&
EntrepreneurshipEntrepreneurship
An IntroductionAn Introduction

10. 1010
What is Entrepreneurship?What is Entrepreneurship?
 EntrepreneurshipEntrepreneurship
The process whereby an individual or groupThe process whereby an individual or group
of individuals use organized efforts to pursueof individuals use organized efforts to pursue
opportunitiesopportunities
To create value and grow by fulfilling wants andTo create value and grow by fulfilling wants and
needs through innovation and uniquenessneeds through innovation and uniqueness

11. 1111
What is Entrepreneurship?What is Entrepreneurship?
 Common Themes in Definitions ofCommon Themes in Definitions of
EntrepreneurshipEntrepreneurship
 The role of the entrepreneurThe role of the entrepreneur
 InnovationInnovation
 Organization creationOrganization creation
 Creating valueCreating value
 Profit or Not-for-ProfitProfit or Not-for-Profit
 GrowthGrowth
 UniquenessUniqueness
 ProcessProcess

12. 1212
Forms of EntrepreneurshipForms of Entrepreneurship
 A new product or Service offered.A new product or Service offered.
 A new Method, Process, or TechnologyA new Method, Process, or Technology
employed.employed.
 A new market targeted and opened.A new market targeted and opened.
 A new source of Supply of Raw MaterialsA new source of Supply of Raw Materials
& Resources used.& Resources used.
 A new form of Industrial OrganizationA new form of Industrial Organization
created.created.

13. 1313
Four Routes toFour Routes to
EntrepreneurshipEntrepreneurship
 Entering aEntering a family businessfamily business
 Opening aOpening a franchised businessfranchised business
 Starting aStarting a new businessnew business
 Buying anBuying an existing businessexisting business

14. 1414
Historical Perspectives onHistorical Perspectives on
EntrepreneurshipEntrepreneurship

15. 1515

16. 1616
Five Misconceptions AboutFive Misconceptions About
EntrepreneurshipEntrepreneurship
1.1. Successful entrepreneurship needs only a greatSuccessful entrepreneurship needs only a great
ideaidea
2.2. Entrepreneurship is easyEntrepreneurship is easy
3.3. Entrepreneurship is a risky gambleEntrepreneurship is a risky gamble
4.4. Entrepreneurship is found only in small businessesEntrepreneurship is found only in small businesses
5.5. Entrepreneurial ventures and small businesses areEntrepreneurial ventures and small businesses are
the same thingthe same thing

17. 1717
Now the BusinessNow the Business
An activity or a group of activities to be undertakenAn activity or a group of activities to be undertaken
for the purpose of earning profit keeping in viewfor the purpose of earning profit keeping in view
the risk of loss.the risk of loss.

18. 1818
The Nature of BusinessThe Nature of Business
 To create profits by:To create profits by:
Selling products – Cars, food,Selling products – Cars, food,
clothing, computers, mobile phonesclothing, computers, mobile phones
etc.etc.
Providing services – Healthcare,Providing services – Healthcare,
insurance, education etc.insurance, education etc.

19. 1919
What Is Management?What Is Management?
 Managerial ConcernsManagerial Concerns
EfficiencyEfficiency
““Doing things right”Doing things right”
 Getting the most output for the least inputsGetting the most output for the least inputs
EffectivenessEffectiveness
““Doing the right things”Doing the right things”
 Attaining organizational goalsAttaining organizational goals

20. 2020
The Management ProcessThe Management Process
ORGANIZATIONAL
GOALS
Planning
Leading
Controlling
O
rganizing
HUMAN
RESOURCES
INFORMATION
RESOURCES
PHYSICAL
RESOURCES
FINANCIAL
RESOURCES

21. 2121
Small Business and EntrepreneurialSmall Business and Entrepreneurial
Ventures – The DifferencesVentures – The Differences
 Small BusinessSmall Business
 Independently owned, operated, and financedIndependently owned, operated, and financed
 has fewer than 100 employeeshas fewer than 100 employees
 doesn’t engage in new or innovative practicesdoesn’t engage in new or innovative practices
 Has relatively little impact on its industryHas relatively little impact on its industry
 Entrepreneurial VenturesEntrepreneurial Ventures
 An organization pursuing opportunitiesAn organization pursuing opportunities
 Characterized by innovative practicesCharacterized by innovative practices
 Main goals are profitability and growthMain goals are profitability and growth

22. 2222
Entrepreneurial VenturesEntrepreneurial Ventures
 CreativityCreativity - The ability to develop new- The ability to develop new
ideas and to discover new ways of lookingideas and to discover new ways of looking
at problems and opportunities.at problems and opportunities.
 InnovationInnovation - The ability to apply creative- The ability to apply creative
solutions to problems and opportunities tosolutions to problems and opportunities to
enhance or to enrich people’s lives.enhance or to enrich people’s lives.

23. 2323
The People and Activities ofThe People and Activities of
BusinessBusiness
PeoplePeople::
 OwnersOwners
 EmployeesEmployees
 CustomersCustomers
 OtherOther
stakeholders:stakeholders:
 InvestorsInvestors
 Regulatory AgenciesRegulatory Agencies
ActivitiesActivities::
 ManagementManagement
 MarketingMarketing
 FinanceFinance
 MISMIS

24. 2424
Current Importance ofCurrent Importance of
EntrepreneurshipEntrepreneurship
 Three areas of importanceThree areas of importance
1.1. InnovationInnovation
 Process of creating, changing, experimenting,Process of creating, changing, experimenting,
transforming, and revolutionizingtransforming, and revolutionizing
1.1. Number of New Start-upsNumber of New Start-ups
 Important because new firms contribute toImportant because new firms contribute to
economic development through benefits sucheconomic development through benefits such
as product-process innovationas product-process innovation
1.1. Job CreationJob Creation
 Vital to the overall long-term economic healthVital to the overall long-term economic health
of communities, regions, and nationsof communities, regions, and nations

25. 2525
The Benefits of EntrepreneurshipThe Benefits of Entrepreneurship
 Opportunity to Create your own DestinyOpportunity to Create your own Destiny
 Opportunity to make a DifferenceOpportunity to make a Difference
 Opportunity to Reach your Full PotentialOpportunity to Reach your Full Potential
 Opportunity to Reap Impressive ProfitsOpportunity to Reap Impressive Profits
 Opportunity to Contribute to Society and beOpportunity to Contribute to Society and be
Recognized for your EffortsRecognized for your Efforts
 Opportunity to do what you Enjoy and Have FunOpportunity to do what you Enjoy and Have Fun
in it.in it.

26. 2626
Entrepreneurial IncentivesEntrepreneurial Incentives

27. 2727
DrawbacksDrawbacks
ofof
EntrepreneursEntrepreneurs
DrawbacksDrawbacks
ofof
EntrepreneursEntrepreneurs
Hard workHard work
Long hoursLong hours
Emotional lonelinessEmotional loneliness
Strong possibility of failureStrong possibility of failure
Disruptions to personal lifeDisruptions to personal life

28. 2828
CREATIVITY…?CREATIVITY…?
Inventing the imaginativeInventing the imaginative
ideasideas

29. 2929
INNOVATION…?INNOVATION…?
Bringing new changes or ideasBringing new changes or ideas
to an existing situationto an existing situation

30. 3030
The Individual EntrepreneurThe Individual Entrepreneur

31. 3232
Its about…Its about…
 A kind of behavior that includes…A kind of behavior that includes…
1.1. InitiativeInitiative taking,taking,
2.2. TheThe organizing and reorganizingorganizing and reorganizing of socialof social
and economic mechanisms to turnand economic mechanisms to turn
resources and situations to practical accountresources and situations to practical account
3.3. TheThe acceptance of riskacceptance of risk or failureor failure

32. 3333
Entrepreneur: to anEntrepreneur: to an
economist…economist…
 He is theHe is the one who brings resources, labor,one who brings resources, labor,
materials and other assets intomaterials and other assets into
combinations that make their valuecombinations that make their value
greater than beforegreater than before, and also one who, and also one who
introduces changes, innovations, and aintroduces changes, innovations, and a
new order.new order.

33. 3434
Thinking of a psychologist…Thinking of a psychologist…
 Such a person is typically driven by certainSuch a person is typically driven by certain
forces— the need toforces— the need to obtain or attainobtain or attain
somethingsomething, to experiment, to accomplish,, to experiment, to accomplish,
oror perhaps to escape the authority ofperhaps to escape the authority of
othersothers..

34. 3535
How the businessman willHow the businessman will
think?think?
 To one businessmanTo one businessman an entrepreneuran entrepreneur
appears as a threat, an aggressiveappears as a threat, an aggressive
competitorcompetitor, whereas to another someone, whereas to another someone
who creates wealth for others, as well aswho creates wealth for others, as well as
finds better ways to utilize resources,finds better ways to utilize resources,
reduce waste, and produce jobs others arereduce waste, and produce jobs others are
glad to get.glad to get.

35. 3636
Is it about creating wealth?Is it about creating wealth?
 It is aIt is a dynamic process of creatingdynamic process of creating
incremental wealthincremental wealth..
 This wealth is created by individuals whoThis wealth is created by individuals who
assume the major risks in terms of equity, time,assume the major risks in terms of equity, time,
and/or career commitment or provide value forand/or career commitment or provide value for
some product or service.some product or service.

36. 3737
What are differentWhat are different
EntrepreneurialEntrepreneurial
Feelings?Feelings?

37. 3838
Locus of ControlLocus of Control

38. 3939
Need for independenceNeed for independence
 Being one’s own boss – one of theBeing one’s own boss – one of the
strongest needs of an entrepreneurstrongest needs of an entrepreneur

39. 4040
Need for AchievementNeed for Achievement
 An individual's need to be recognizedAn individual's need to be recognized

40. 4141
Risk TakingRisk Taking
 Risk taking – whetherRisk taking – whether
financial, social, orfinancial, social, or
psychological – is part ofpsychological – is part of
the entrepreneurialthe entrepreneurial
processprocess

41. 4242
Background andBackground and
CharacteristicsCharacteristics
Childhood Family Environment,Childhood Family Environment,
Education, Personal Values, Age,Education, Personal Values, Age,
Work HistoryWork History

42. 4343
Childhood and familyChildhood and family
environmentenvironment
 Most entrepreneurs have self-employedMost entrepreneurs have self-employed
or entrepreneurial fathers.or entrepreneurial fathers.
 Parents of entrepreneurs encourageParents of entrepreneurs encourage
independence, achievement, andindependence, achievement, and
responsibility.responsibility.
Eldest
child
Usually it is the

43. 4444
EducationEducation
Education is important for the
upbringing of an entrepreneur.
Although formal education is not
necessary
for starting a new business – it does provide
a good background, particularly
when it is related
to the field of the venture.

44. 4545
Personal ValuesPersonal Values
Aggression
Benevolence /
Kindness
Conformity /
Compliance
Creativity
Veracity /
Genuineness
Resource
Seeking

45. 4646
Nature of the
Enterprise
OpportunismInstitution
Individuality
Attitude about businessAttitude about business

46. 4747
AgeAge
 Most entrepreneurs would initiate theirMost entrepreneurs would initiate their
entrepreneurial careers between the ages of 22entrepreneurial careers between the ages of 22
and 45and 45
 As one entrepreneur succinctly stated, “I felt itAs one entrepreneur succinctly stated, “I felt it
was now or never in terms of starting a newwas now or never in terms of starting a new
venture when I approached 30”venture when I approached 30”

47. 4848
Work HistoryWork History
 The past work experience of anThe past work experience of an
individualindividual
Dissatisfaction
Lack of
Challenge
Promotional
Opportunities
Frustration and
boredom

48. 4949
Frustration and new business…Frustration and new business…
 A student who is not promoted afterA student who is not promoted after
receiving an MBA degree may becomereceiving an MBA degree may become
frustrated and decide to leave and start afrustrated and decide to leave and start a
new company.new company.

49. 5050
MotivationMotivation
It is what causes people to do something.It is what causes people to do something.

50. 5151
Motivation: Why not business?Motivation: Why not business?
 IndividualsIndividuals who are comfortable andwho are comfortable and
secure in a job situationsecure in a job situation,, have a family tohave a family to
supportsupport, and, and prefer their present life styleprefer their present life style
andand reasonably predictable leisure timereasonably predictable leisure time
oftenoften do not want to take the risksdo not want to take the risks
associated with venturing out alone.associated with venturing out alone.

51. 5252
Why Business? What’s theWhy Business? What’s the
motivation?motivation?
 IndependenceIndependence
 Not wanting to work for anyone elseNot wanting to work for anyone else
 Desire to be one’s own bossDesire to be one’s own boss
 For men, money is the second reasonFor men, money is the second reason
for starting a new venturefor starting a new venture
 For women, job satisfaction,For women, job satisfaction,
achievement, opportunity, and moneyachievement, opportunity, and money
are the motivationsare the motivations

52. 5353
Role ModelsRole Models
 Moral Support NetworkMoral Support Network
 Professional Support NetworkProfessional Support Network

53. 5454
Role ModelsRole Models
 Parents, relatives, or entrepreneurs in theParents, relatives, or entrepreneurs in the
communitycommunity
 May serve as mentors / trainersMay serve as mentors / trainers

54. 5555
Moral Support NetworkMoral Support Network
 Individuals who giveIndividuals who give
psychological support to anpsychological support to an
entrepreneur.entrepreneur.

55. 5656
Professional Support NetworkProfessional Support Network
 Individuals who help theIndividuals who help the
entrepreneur in businessentrepreneur in business
activities.activities.

56. 5757
Male Versus FemaleMale Versus Female
EntrepreneursEntrepreneurs
 motivated tomotivated to
control destiny.control destiny.
 outside advisorsoutside advisors
most importantmost important
supporters.supporters.
 more likely to startmore likely to start
a business ina business in
manufacturing,manufacturing,
construction orconstruction or
high tech.high tech.
 may have bettermay have better
access toaccess to
investors andinvestors and
loans.loans.
 motivated tomotivated to
achieve.achieve.
 spouse first,spouse first,
friends secondfriends second
as mostas most
importantimportant
supporters.supporters.
 more likely tomore likely to
start a servicestart a service
businessbusiness
Most other dimensions show no differences.
MaleEntrepreneur
FemaleEntrepreneur

57. 5858
Entrepreneur Vs. InventorEntrepreneur Vs. Inventor
• An inventor creates something for the first
time. While the entrepreneur falls in love
with the new venture.
• The inventor falls in love with the invention
and often requires the expertise of an
entrepreneur to launch a new venture.
Historians classify Albert
Einstein as an inventive
genius and Henry Ford as
an entrepreneurial genius.
Do you agree or disagree?
Why?

58. 5959
Minority EntrepreneursMinority Entrepreneurs

59. 6060
Entrepreneurs: born orEntrepreneurs: born or
made?made?

60. 6161
Entrepreneurs are not born:Entrepreneurs are not born:
They are developed &They are developed &
mademade

61. 6262
The Entrepreneurial andThe Entrepreneurial and
Intrapreneurial MindIntrapreneurial Mind

62. 6363
In simple terms….In simple terms….
 ““An entrepreneur is someone whoAn entrepreneur is someone who createscreates
a new opportunity in the world of businessa new opportunity in the world of business
andand assembles the resourcesassembles the resources necessarynecessary
to successfullyto successfully exploit this opportunityexploit this opportunity ––
money, people and organization”money, people and organization”
-- Entrepreneurship for Dummies (2001)Entrepreneurship for Dummies (2001)

63. 6464
 The entrepreneurialThe entrepreneurial
process involves finding,process involves finding,
evaluating, and developingevaluating, and developing
an opportunity byan opportunity by
overcoming the strongovercoming the strong
forces that resist theforces that resist the
creation of some thingcreation of some thing
new.new.

64. 6666
Corporate VersusCorporate Versus
Intrapreneurial CultureIntrapreneurial Culture
 develop visions, goalsdevelop visions, goals
and plans.and plans.
 suggest, try andsuggest, try and
experiment.experiment.
 flat organizationalflat organizational
structure with networkingstructure with networking
and teamwork.and teamwork.
 climate & rewardclimate & reward
system favorssystem favors
conservativeconservative
decision making.decision making.
 follow instructions,follow instructions,
don’t take initiative.don’t take initiative.
 hierarchical lines ofhierarchical lines of
authority.authority.
IntrapreneurialCulture
CorporateCulture

65. 6767
Differentiate betweenDifferentiate between
entrepreneurship and aentrepreneurship and a
business?business?

66. 6868
Basic characteristics of theBasic characteristics of the
Entrepreneurial MindsetEntrepreneurial Mindset
They passionatelyThey passionately seek new opportunitiesseek new opportunities
TheyThey pursue opportunities with enormous disciplinepursue opportunities with enormous discipline
TheyThey pursue only the very best opportunitiespursue only the very best opportunities andand
avoid exhausting themselves and their organizationsavoid exhausting themselves and their organizations
by chasing after every optionby chasing after every option
TheyThey focus on executionfocus on execution – specifically, adaptive– specifically, adaptive
executionexecution
TheyThey engage the energies of everyoneengage the energies of everyone in their domainin their domain

67. 6969
Why start a business?Why start a business?
Consider these reasons togetherConsider these reasons together
with some precautionary notes.with some precautionary notes.

68. 7070
Why start a business…Why start a business…
 I wantI want to be my own bossto be my own boss because I find it hardbecause I find it hard
to work for my current bossto work for my current boss
 I want to be my own boss so that I don’t have toI want to be my own boss so that I don’t have to
work so hard. I don’t want to punch a clock—Iwork so hard. I don’t want to punch a clock—I
want the freedomwant the freedom to come and go as I pleaseto come and go as I please
 I want to start the businessI want to start the business to make a lot ofto make a lot of
moneymoney

69. 7272
Four Routes toFour Routes to
EntrepreneurshipEntrepreneurship
 Entering aEntering a family businessfamily business
 Opening aOpening a franchised businessfranchised business
 Starting aStarting a new businessnew business
 Buying anBuying an existing businessexisting business

70. 7373
What causes a person toWhat causes a person to
make this difficult decision?make this difficult decision?
The question can be best explored byThe question can be best explored by
looking at the decision process involved inlooking at the decision process involved in
becoming an entrepreneur.becoming an entrepreneur.

71. 7474
Change from present
lifestyle
Work environment
Disruption
Form new enterprise
Desirable
1. Cultural
2. Sub cultural
3. Family
4. Teachers
5. Peers
Possible
1. Government
2. Background
3. Marketing
4. Financing
5. Role models
Decisions for a potential entrepreneur

72. 7575
Change from Present LifestyleChange from Present Lifestyle
 Two work environments have beenTwo work environments have been
particularly good for spawning newparticularly good for spawning new
enterprises:enterprises:
Research and development, andResearch and development, and
MarketingMarketing

73. 7676
Working in Technology (R&D)Working in Technology (R&D)
 Develop…Develop…
New ideasNew ideas
New processesNew processes
 When your ideas are not accepted in yourWhen your ideas are not accepted in your
own company by employers, you opt toown company by employers, you opt to
start a new companystart a new company

74. 7777
Working in Marketing (NewWorking in Marketing (New
Products)Products)
 Individuals in marketing have becomeIndividuals in marketing have become
familiar with market and customers’familiar with market and customers’
unfilled wants and needsunfilled wants and needs
 They frequently leave to start newThey frequently leave to start new
enterprises to fill these needsenterprises to fill these needs

75. 7878
The EntrepreneurialThe Entrepreneurial
ProcessProcess

76. 7979
What is EntrepreneurialWhat is Entrepreneurial
Process?Process?
 The process through which newThe process through which new
venture is created by an entrepreneurventure is created by an entrepreneur
is called the entrepreneurial process.is called the entrepreneurial process.
 An entrepreneur finds, evaluates, and developsAn entrepreneur finds, evaluates, and develops
an opportunityan opportunity by overcoming the forces thatby overcoming the forces that
resist the creation of something newresist the creation of something new..
 The process of starting a new venture isThe process of starting a new venture is
embodied in the entrepreneurial process, whichembodied in the entrepreneurial process, which
involves more than just problem solvinginvolves more than just problem solving in ain a
typical management position.typical management position.

77. 8080
Phases of EntrepreneurialPhases of Entrepreneurial
ProcessProcess
1.1. Identification and evaluation of the opportunityIdentification and evaluation of the opportunity
2.2. Development of the business planDevelopment of the business plan
3.3. Determination of the required resourcesDetermination of the required resources
4.4. Management of the resulting enterpriseManagement of the resulting enterprise

78. 8181
Identify and Evaluate theIdentify and Evaluate the
OpportunityOpportunity
 Creation and length of opportunityCreation and length of opportunity
 Real and perceived value of opportunityReal and perceived value of opportunity
 Risk and returns of opportunityRisk and returns of opportunity
 Opportunity versus personal skills and goalsOpportunity versus personal skills and goals
 Competitive situationCompetitive situation

79. 8282
What can be cause of anWhat can be cause of an
opportunity?opportunity?
 Technological changesTechnological changes
 Market shiftsMarket shifts
 Government regulations, orGovernment regulations, or
 CompetitionCompetition

80. 8484
Develop the Business PlanDevelop the Business Plan
 Title pageTitle page
 Table of contentsTable of contents
 Executive summaryExecutive summary
 Description of businessDescription of business
 Description of industryDescription of industry
 Marketing planMarketing plan
 Financial planFinancial plan
 Production planProduction plan
 Organization planOrganization plan
 Operational planOperational plan
 SummarySummary
 Appendices (exhibits)Appendices (exhibits)
A good business
plan must be
developed in
order to exploit
the defined
opportunity.
Basic issues
involved in
development of a
business plan are
given here.
A good business
plan must be
developed in
order to exploit
the defined
opportunity.
Basic issues
involved in
development of a
business plan are
given here.

81. 8585
Determine the resourcesDetermine the resources
requiredrequired
 Appraisal of existing resourcesAppraisal of existing resources
 Do not underestimate amount and variety of resourcesDo not underestimate amount and variety of resources
neededneeded
 Strive to maintain as large an ownership position asStrive to maintain as large an ownership position as
possiblepossible

82. 8686
Manage the EnterpriseManage the Enterprise
 Management style determines key variables forManagement style determines key variables for
successsuccess
 Identification of problems and potential problemsIdentification of problems and potential problems
 Implementation of control systemsImplementation of control systems