Entrepreneurship Development

Entrepreneurship

An entrepreneur runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale rather than just working as an employee for an organization.

Traditionally, an entrepreneur has been defined as a person who starts, organizes and manages any enterprise, and a business. Entrepreneurial spirit is characterized by innovation and risk-taking.

According to Hisrich and Peters (2002), “Entrepreneurship is the process of creating something new with value of devoting the necessary time, effort, assuming the accompanying financial, physical and social risk and receiving the resulting rewards of monetary and personal satisfaction and independence.”

So what are the factors needed for a successful entrepreneurship development?

Innovation

At first you need to have a fresh idea which will be the core concept of entrepreneurship. You can have different types of innovation.

  • Innovation of new product
  • Innovation of new process of production methods
  • Exploration of new markets
  • Searching for the new sources and supply
  • Innovation of industrial reconstruction method

The Business Plan

You need a business plan. Without planning success is very rare.

At the very beginning you need some basic things.

  • Name and address of your business
  • Name and address of the entrepreneur
  • Nature of the business
  • Statement of financing need
  • Statement of confidentiality of report

Plans

You need to have a clear outlook of what you are going to do.

Production plan

  • Manufacturing process
  • Physical plant
  • Machinery and equipment
  • Name of supplier of raw materials
  • Marketing plan
  • Pricing
  • Distribution
  • Promotion
  • Product forecast

Organizational plan

  • Form of ownership
  • Identification of partners or shareholders
  • Authority principals
  • Management team background
  • Roles and responsibilities of the members of the organization

Financial Plan

  • Pro forma income statement
  • Cash flow projection
  • Pro forma balance sheet
  • Break even analysis
  • Sources and applications of funds

Risk Analysis

There are always some risks in entrepreneurship. Risk can lead your business to failure. So, risk analysis is very important.

  • Evaluate weakness of business
  • New technologies
  • Contingency plans

Business plans are the helping hand for an entrepreneur. The business plans are designed to guide the entrepreneur through the first year of operations. Many entrepreneurs have the tendency to avoid planning. But without proper planning it is hard to exist in the long run. Planning is an important part of any business operations. Without good planning the entrepreneur is likely to pay an enormous price. Without good planning the employees will not understand the company’s goals and how they are expected to perform in their jobs. Planning is like a motivation. It will motivate you to hold your breath at the tough times and will increase your pace during the rising situation.

Conclusion

Entrepreneurship is a big deal. It helps capital formation, generation of employment, improvement in per capita income, reduces concentration of wealth, balanced regional development, resource mobilization, improvement in standard of living, national self-reliance, backward and forward linkages and many more. By following plans and with proper motivation Entrepreneurs can become milestones. But before all of these you should have a strong mental preparation for facing failure and keep in mind that failure is the pillar of success.

The Entrepreneurial Skills You Need to Have Before Jumping in

Someone who exercises initiative by organizing a venture to take benefit of an opportunity and as the decision maker, decides what, how and how much of a product or service will be produced.

An entrepreneur supplies risk capital as a risk taker and monitors and controls the business activities. The entrepreneur is usually a sole proprietor, a partner or the one who owns majority of shares in an incorporated venture.

According to economist Joseph Alois Schumpeter, “Entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success.”

There are some ups and downs in the field of entrepreneurship. And there are some skills which are necessary for an entrepreneur.

While the debate was going on, do the entrepreneurs are born or made, one thing can’t be disputed, polishing certain skills can help you to become a better entrepreneur. But what are those skills?

Sales skills

Being able to sell is something that is the key to every entrepreneur. Even those that tell you they’re not natural sales-people have the capability to sell or they wouldn’t get to where they are. It’s necessary to sell your idea and also yourself.

Strategy

It’s easy to think about the right-now aspect of your business, because the results are easy to watch. But what you will say about bigger picture? At the time of facing long term goals and challenges it becomes a must to have some skills, because at that stage skill talks. Without skill you are going to face lots of problems.

Without having a constant eye on your strategy and assessment of that strategy in terms of the industry and your competition, you can’t hope to grow it over time and remain competitive in the marketplace.

Decision Making

If you are asking people what about decision making, then they will obviously tell you that it’s the most important criteria for an entrepreneur. The right decision at the right time is the key to success for an entrepreneur. When a problem arrives the most important thing at that time is to manage that situation with a cool brain. That’s what will lead you to your goal.

A Motivator

For being an entrepreneur at first you have to become a good motivator. There will be lots of crisis moments when nothing can help other than motivation. An entrepreneur needs to motivate and inspire his colleagues and sub-ordinates always specially at the hard times. Often you have to motivate yourself! But never lose your hope.

Business Planning

You need to know how to plan for a well-established business, and need a business plan for the long run. You may not have the ability to roll in the long run at this moment but never stop planning.

Adaptation

We are now living at a fast paced world where surviving is very hard. And at the marketplace it is much harder for an entrepreneur to survive. Have preparation for surviving in the changing condition. If you can’t adapt, you will never survive. And you will never be able to work effectively with a diverse group of peers and executives, either.

Conclusion

Skills are your trusted friends. Without skills you can run for sometimes, but not for long. Prepare yourself before taking part in the race.


This guest post comes courtesy of Ben Eisenhut from Oasis Building Rectification And Maintenance who specialist in Building Restoration Gold Coast and Surrounding Areas.

Being an entrepreneur; Things to keep in mind

Entrepreneur

A person organizes and operates a business and takes a great financial risk to do so. An entrepreneur is like an inventor; s/he invents business ideas and invests his/her time and money in it. Entrepreneur also solves social problems with the help of their business.

Becoming an Entrepreneur

Being an entrepreneur is a big deal. There are certain things you need to keep in mind before taking the decision of becoming an entrepreneur.

Success Rate

Who doesn’t want success in this competitive world? But success doesn’t come in an easy way. Moreover in the field of entrepreneurship success rate is close to fifty percent. There is always a chance of failure which you can never neglect.

Support

Supports from the people around you will not always the same. Whatever the situation is you need to hold your hope.

Feedback

Feedback is very important when you are doing something new. But you will not always receive positive feedback. So, there is always a chance of demotivation which is very bad for you.

Show-off

Nobody will listen to you unless you have something to show. Talk less, show more. By showing off you are giving them a reason to pay attention.

Care

No employee, even with the same equity will care as much as you. Your care is a must for your start-up.

Smart Steps

Take small steps, but take it smartly. Your smart steps will lead you to your destination.

Area of Emphasis

Give effort. But not in the area of your weakness. Give your efforts in the fields where you are strong enough.

Market Research

Do a market research. Without it you will not be able to compete with other competitors of you in the market.

Marketing

Marketing is another key ingredient of success. For buying you products, customers need to know about them.

Target Market

Find your target market, know their taste and budget. After selecting target market think about your next step, which is how to grab their attention.

Raising Fund

Raising fund is one of the toughest jobs for an entrepreneur. At first you don’t have anything, neither success nor failure. Investors do not invest in such a new field which has an average success possibility.

Give up Control

It sounds a bit awkward. But if you try to control everything your business will not spread. Your employees will only follow but they won’t work for the company. As a result, nothing new will come out.

Brand Name

Brand name has always a huge impact on the common people. Choose it wisely and cleverly. A name can change your complete business scenario.

Confidence

Always be confident about what you are doing. If you do not have confidence, what other people are going to have!

Customer Satisfaction

Work for customer satisfaction. If your customers are satisfied with you, you will never fall down.

Conclusion

Lock down your focus. Love what you are doing. Never think that without working hard success will show up on its own. Your passion will lead you to success. So, never lose your passion!