DD: Entrepreneurship

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Entrepreneurship: The process of making money, earning profits and increasing wealth while posing characteristics such as risk taking, management, leadership and innovation.
Elements:

  1. Innovation
  2. Risk Taking
  3. Vision
  4. Organising skills 
Attaining economic development within the shortest possible time.

Characteristics of an entrepreneur:
  1. Mental Ability 
  2. Business Secrecy
  3. Clear Objectives
  4. Human Relations
  5. Communication Ability
Intrapreneurship: A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation. Involves a combination of entrepreneurship and management skills.

Environment Scanning: Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans. 

Types of Environmental Scanning:
  1. Passive scanning: Obscure, unspecified and continuously changing criteria - only ad hoc decisions can be taken.
  2. Active scanning: Information resources scanned are specifically selected for their known or expected richness in the desired information. Involves conscious selection of continuous resources and supplementing of such resources with such other existing resources as needed.
  3. Directed Scanning: The active scanning of an existing resource for a specific item. 
Tools for Environmental Scanning
SWOT Analysis: Analysis of a company's strengths, weaknesses, opportunities and threats to identify a strategic niche that the company could exploit. SWOT analysis merges external factors (OT) with internal factors (SW). 
This tool can be used as a simple icebreaker helping an entrepreneur analyse the plan and judge feasibility, or it can be used as a serious strategy tool wherein the entrepreneur checks SWOT every stage of his plan.

PESTLE Analysis: Political, Economic, Sociological, Technological, Legal and Environmental - an audit of environmental influences on the business idea to pre-ascertain factors likely to affect the project and guide strategic decision making. 
It is useful for understanding the big picture of the environment in which an entrepreneur is planning to operate.

Porter's Approach To Industry Analysis - Five Forces tool:
  1. Supplier power 
  2. Buyer power 
  3. Competitive Rivalry
  4. Threat of substitution
  5. Threat of new entry 
Market assessment: Helps to prepare to enter a new market, launch a new product/ service or start a new business. The process can be divided into 6 steps:
  1. Defining the problem 
  2. Analysis of the situation 
  3. Obtaining data that is specific to the problem 
  4. Analysis and interpreting the data
  5. Fostering ideas and problem solving
  6. Designing 
Business Plan: The process of producing a business is in itself, a beneficial undertaking which facilitates management's focus on the future as well as the present. Should include goals, functional strategies, budget and cash flow projections and regular reviews. 
- Identification and evaluation of the opportunity 
- Development of the business plan 
- Determination of the required resources
- Management of the resulting enterprise.

The main objective of business planning is to provide and implement the formal and systematic business plan. 

Stages of entrepreneurial development
  • Seed stage
  • start up
  • early growth 
  • established 
  • Corporate 
Formal and systematic business planning involves two elements - strategic planning and operational planning.
Strategic planning: Concentrates on opportunities and threats in long range plans - clear layout including vision, missions, objectives, competencies, managerial abilities, technical proficiencies and sources of funding. Involves strategic management and implementation. 
Operational planning: Practical implementation - conversion of strategic goals into managed execution. 

TYPES OF ENTREPRENEURSHIP:
  1. Opportunity based - an active choice on the part of the entrepreneur.
  2. Necessity based - an entrepreneur is left with no viable option. 

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