KIET Group of Institutions (College Code: 029)

IDEA TOBUSINESS MODEL

Unit 3
Entrepreneur

By

Mr. Anmol Jain

Assistant Professor
Department of Computer Science 1
 Unit 3 Content

• The Entrepreneur –
• Types of entrepreneurs-
• Competencies required to become an entrepreneur
- Creative and Design Thinking,
• The entrepreneurial decision process-
• The process of Entrepreneurial development
program (EDP)-
• Evaluation of EDP
• Entrepreneur development training.
2
 The Entrepreneur

1.Peter F. Drucker’s Views on Entrepreneurs – “An

entrepreneur is the one who always searches for
change, responds to it and exploits it as an opportunity.
Innovation is the specific tool of entrepreneurs, the
means by which they exploit changes as an opportunity
for a different business or different service”.
2.“Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain or aggrandize profit by
production or distribution of economic goods and
services.”

3
Increase your value
 Types of entrepreneurs-

• Serial Entrepreneur..
• Social Entrepreneur.. Social Workers like NGOs
• Lifestyle Entrepreneur.. Bloggers, Traveler , Criticism
Motivational Speakers
• Scalable Start up Entrepreneur.. Business Minded

5
 Competencies required to become
an entrepreneur -

• Business management skills:

 Who can oversee and manage operations of different departments
because they possess a good understanding of each function.
 It include multitasking, delegating responsibilities and making
critical business decisions.
• Communication and active listening skills:
 Verbal communication during meetings or sending reports and messages
through emails about the project,
 Entrepreneurs require superior written communication.
 Must be excellent listeners to understand the project's requirement and
discussion during project meetings.
 Risk-taking skills: Being able to take calculated and intelligent risks is
one of the essential entrepreneur skills to learn.
6
• Networking skills: Networking involves:
 Building and managing relationship with other professionals to grow and
promote a business.
 Build a solid brand.
 Entrepreneurs to meet like-minded professionals, build future teams and
stay up-to-date with industry trends.
• Critical thinking skills: Critical thinking is an entrepreneur skill:
• That objectively analyses the information and draws a rational
conclusion.
• Assess a situation and come up with a logical solution. Employers look for
candidates with critical thinking because it helps solve problems and
build strategies for business growth.

7
• Problem-solving skills: Entrepreneurs face challenging and
unexpected situations. It could be a venture capitalist refusing further
funding or a team member refusing to work as per the project guidelines;
an entrepreneur must possess excellent problem-solving skills to handle
stressful situations and calmly identify alternate solutions.
• Financial skills
• Leadership skills
• Time management
• Technical skills

8
 The Entrepreneurial decision process:

• Divided into five key stages:

1. Ideation
2. Feasibility Analysis
3. Business Planning
4. Execution
5. Growth

9
 The Entrepreneurial decision process

• Ideation: Ideation is the stage where entrepreneurs generate and

refine business ideas. It involves identifying a problem or opportunity
in the market and developing innovative solutions. Creativity, market
awareness, and customer needs are crucial during this stage.

TIPS:
• Engage in brainstorming sessions to generate a wide range of ideas.
• Conduct market research to validate the demand and viability of your
ideas.
• Improve your concept by seeking feedback from potential customers and
industry experts.

10
 The Entrepreneurial decision process

• Feasibility Analysis: At this stage where entrepreneurs assess

their business idea’s viability and potential success. It involves evaluating
market potential, competition, resources, and risks.
Tips for Feasibility Analysis:
• Identify your target market and understand its size, demographics, and
needs.
• Analyze your competition to identify unique selling points and
differentiation strategies.

11
 The Entrepreneurial decision process

• Business Planning; Business planning is the stage where entrepreneurs

create a detailed roadmap for their venture. It involves developing a
business model, crafting a marketing strategy, establishing financial
projections, and setting operational goals.
Tips for Business Planning
• Define your business model and your value proposition.
• Develop a marketing strategy highlighting your target audience, channels,
and messaging.

12
 The Entrepreneurial decision process

• Execution: Execution is the stage where entrepreneurs transform their

plans into action. It involves building a team, developing products or
services, and launching the business.
Tips for Execution
• Build a talented team with complementary skills and shared values.
• Prioritize customer feedback and iterate your products or services
accordingly.

13
 The Entrepreneurial decision process

• Growth
• The final stage of the entrepreneurial process is growth. This stage
involves scaling the business, expanding into new markets, and optimizing
operations. It involves strategic decision-making, resource allocation, and
continuous innovation to sustain and increase market share.
Tips for Growth
• Develop a growth strategy that aligns with your long-term vision.
• Invest in marketing, sales, and customer acquisition strategies to expand
your reach.

14
The process of Entrepreneurial Development
Program (EDP)-

• It refers to inculcation, development, and polishing of entrepreneurial

skills into a person needed to establish and successfully run his / her
enterprise. Thus, the concept of entrepreneurship development programme
involves equipping a person with the required skills and knowledge needed
for starting and running the enterprise.

15
Specialized agencies have been set up by the
State and Central Governments
• Small Industries Service Institutes (SISI)
• Small Industries Development Organizations (SIDO)
• National Small Industries Corporation
• Small Industries Extension Training Institute.
• Entrepreneurship Development Institute of India (EDI)
• Institute for Rural Management and Administration
• National Institute for Entrepreneurship and Small Business Development
(NIESBUD)
• National Alliance of young entrepreneurs (NAYA)
• Maharashtra Centre for Entrepreneurship Development (MCED)
• MSME

16
Objectives of Entrepreneurship Development
Programme
The short-term objectives are:
• Preparing a person mentally for the entrepreneurship venture
• Making him competent to scan the environment and situation within the
existing regulatory framework
The long term objectives are:
• To enlarge the supply of entrepreneurs for rapid industrial development
• To develop small and medium scale sector which is necessary
• To industrialize rural and backward regions
• To provide gainful employment to educated young men and women
• To diversify the sources of entrepreneurship and
• To improve the performance of small industries by developing managerial
skills among small entrepreneurs

17
Benefits of EDP

EDP can be beneficial in the following ways:

• Economic Growth
• EDP is a tool of industrialization and path to economic growth through
entrepreneurship.
• Balanced Regional Development
• EDP helps in dispersal of economic activities in different regions by
providing training and other support to local people.
• Eliminates Poverty and Unemployment
– EDPs provide opportunities for self-employment and entrepreneurship careers.

18
Benefits of EDP…

• Optimum use of Local Resources:

-The optimum use of natural, financial and human resources can be
made in a country by training and educating the entrepreneurs.
• Successful Launching of New Unit:
– EDP develops motivation, competence and skills necessary for successful launching,
management and growth of the enterprise.
• Empowers New Generation Entrepreneurs:
– EDP, by inculcating entrepreneurship capabilities and skill in the trainees, created a new
generation of entrepreneurs who hitherto were not entrepreneurs.
Role of Entrepreneurship Development Programme
(EDP)

Eliminates Poverty and Unemployment:

• Developing countries like India are having poverty and unemployment.
Entrepreneurship development programmes can help the unemployed
people to opt for self-employment and entrepreneurship as a career.
Balanced Regional Development:
• Successful entrepreneurship development programmes help in fostering
industrialization and reduce the concentration of economic power. It is
because small-scale entrepreneurs can set up their units in remote areas
with little financial resources which can help in achieving balanced
regional development.
Prevents Industrial Slums:
• The urban cities are highly congested and leading to industrial slums.
Decentralisation of industries is very much required by relocating the
industries.
20
 Defuses Social Tension:
• Every young person feels frustrated if he does not get employment after
completing his education. The talent of the youth must be diverted to self-
employment careers to help the country in defusing social tension and
unrest among youth which is possible by entrepreneurship development
programmes.
Capital Formation:
• The various development banks like ICICI, IDBI, IFCI, SFC, SIDC and
SIDBI take initiative in promoting entrepreneurship through assistance to
various agencies involved in EDP and by providing financial help to new
entrepreneurs. It is impossible to start a new enterprise without sufficient
funds.
Economic Independence:
• Entrepreneurs develop and produce substituted products of imported goods
and prevent the over-dependence on other countries. 21
Improvement in per Capita Income:
• Entrepreneurs always explore and exploit the new opportunities which lead
to productive use of factors of production for more output, employment
and generation of wealth.
Phases of Entrepreneurship Development Training
Phase1 – Pre-Training Phase
Pre-training phase of EDP consists of the following activities:
• Selection of entrepreneurs for the training programme
• Arrangements of infrastructure for the programme like selection of place of
training.
• Deciding guest faculty for the programme from the education industry and banks.
• Taking necessary steps for the inauguration of the programme
• Formation of selection committee to select trainees from the programme
• Making provision with regard to publicity and campaigning for the programme
Phase 2 – Training Phase:
• The primary objective of the training programme is to develop motivation and
skill or competency amongst the potential entrepreneurs.
• The training phase of EDP will be so designed that it will answer the following
questions:
 Whether the attitude of the entrepreneur has been tuned towards the proposed
project or not?
 Whether the trainee has been motivated to accept entrepreneurship as a career?
 How the trainee behaves like an entrepreneur?
 Whether the trainee has sufficient knowledge on resources and technology or
not?
 What kind of entrepreneurship traits he lacks and what steps should be taken to
set it?
Phase3 – Follow-up Phase:
• Follow up phase of EDP has been termed as the post-training phase. The ultimate
objective is to develop competent entrepreneurs.

It consists of reviewing of work in the following manner:

• Review of pre-training work.
• Review of actual training programme.
• Review of the post training programme so that the cost effectiveness of the present
programme can be evaluated.
Evaluation of EDP

Following are the main criteria to comment on the performance of entrepreneurs:

 Financial Results
 Gestation Period
 Capacity Utilization
 Expansion and Diversification
 Value Addition
Gestation Period
Expansion and Diversification
Value Addition
Role of Government in EDP

Governments should create different types of support institutions:

i) To provide information on regulations, standards, taxation, customs duties,

marketing issues.

ii) To advise on business planning, marketing and accountancy, quality control and
assurance.

iii) To create incubator units providing the space and infrastructure for business
beginners and innovative companies, and helping them to solve technological
problems and to search for know-how and promote innovation.

iv) To help in looking for partners. In order to stimulate entrepreneurship and improve
the business environment for small enterprises.
31