1. THE CORE OF QUALITY HEALTH CARE EDUCATION 1
Presented by: Mr. Z. Njoroge
THE CORE OF
HEALTHCARE
EDUCATION
Entrepreneurial Process
2. Entrepreneurial Process
• Entrepreneurship can be described as the pursuit of market opportunities to create
future innovative goods and services.
• The entrepreneur has to discover, evaluate, exploit and extract social and
economic value from the environment.
• This process leads ultimately to a new independent business or venture
The Entrepreneur is a change agent that acts as an industrialist and
undertakes the risk associated with forming the business for commercial use.
The entrepreneurship process.
• Idea Business Plan Resourcing Managing
Company Outcome/ Harvesting
4. Discovery
An entrepreneurial process begins with the idea generation - entrepreneur
identifies and evaluates the business opportunities.
Once the opportunity has been decided upon, the next step is to evaluate it.
An entrepreneur can evaluate the efficiency of an opportunity by continuously
asking certain questions
• Is the opportunity worth investing in?
• Is it sufficiently attractive?
• Are the proposed solutions feasible?
• Is there any competitive advantage?
• what are the risk associated with it?
5. Developing a Business Plan
• Once the opportunity is identified, an entrepreneur needs to create
a comprehensive business plan
• It acts as a benchmark and the evaluation criteria to see if the
organization is moving towards its set goals.
• An entrepreneur must dedicate his sufficient time towards its
creation,
6. Developing a Business Plan
Typically the contents of a business plan will consist of the 16 classical
elements:
1 Executive Summary
2 The Business Idea
3 Background*
4 Ownership ands Company Structure
5 The Team: Leadership, Board of Directors, Accountants and Lawyers
6 The Product
7 The Patent Situation*
8 The Marketing Plan
9 Sales and Distribution
10 Competitors
11 Customers
12 Agreements and/or Alliances*
13 The Budget
14 Investment Needs
15 Any Barriers
16 Profit and Exit
7. Resourcing
• The third step in the entrepreneurial process is resourcing
• The entrepreneur identifies the sources from where the
finance and the human resource can be arranged
• The entrepreneur finds the investors for its new venture
and the personnel to carry out the business activities.
8. Managing the company:
Once the funds are raised and the employees are hired, the next step is to initiate
the business operations to achieve the set goals
The entrepreneur must decide the management structure or the hierarchy that is
required to solve the operational problems.
9. Harvesting
• The final step in the entrepreneurial process is harvesting -an entrepreneur
decides on the future prospects of the business, i.e. its growth and development
• The actual growth is compared against the planned growth and then the
decision regarding the stability or the expansion of business operations is
undertaken.
• By definition, business harvesting is a systematic practice by which the
entrepreneur recovers value gained by the entity through the selling of
individual assets or the entire firm as a whole
10. Harvesting
• Harvesting (or exiting) is the method owners and investors use to get out
of a business and, ideally, reap the value of their investment in the firm.
• Harvesting encompasses more than merely selling and leaving a business;
• it involves capturing value (cash flows),
• reducing risk,
• creating future options – the reason we prefer the term harvest over exit
12. Harvesting Options - Buyouts
Buyouts or an outright sale of entity results in the establishment of a new
independent entity owned and controlled by managers and sometimes by a private
equity entity
1. Leveraged buyout (LBO) - LBO happens when a large portion of a publicly
quoted entity is sold to a private equity firm
2. Management buyout (MBO) the current management of the entity raises funds
to buy out the entity owner.
Buyouts are generally in five types:
13. Harvesting Options
3. A management buy-in (MBI) - External managers are granted the opportunity to
buy equity in the firm
4. Investor-led buyout (ILBO) - The entire entity or part thereof is purchased by a
privately owned equity firm.
5. Leveraged build-up (LBU) - When the goal of a private equity firm is to
generate profits from a buyout or buy-in investment, they practice leveraged
build-up
