7/28/2019 Advantages of Entrepreneurship

1/7

Advantages of entrepreneurship

1. If we have lots of skills, entrepreneurship gives us opportunitiesto enhance and use it.

2. Independence3.No profit sharing

Disadvantages

1.Risk2.Loss is beared by them only.3.

More liability

Qualities

1.Passionate2.Risk3.Focused4.Creative5.Self-dependent6.Leadership quality7. Influencer8.Goal oriented9.Gift of gap

10.Negotiator11.Futuristic12.Opportunistic13.Patience14.Intelligence

7/28/2019 Advantages of Entrepreneurship

2/7

Entrepreneurship eco system

Eco system means environment under which firm operates.

Impact of entrepreneurship

Constructive destruction

Decision of becoming entrepreneur

1.Lack of job opportunity2.Being fired from the job3. Inheritance4.

Business plan

Business plan

A business plan is written document that describes all the aspects of a

business venture in a concise manner. It is usually necessary to have a

written business plan to raise money & attract high quality business

partners.

Firm

legal

social/cultural

economicenvironment

political

govt. rulesand

regulations

and politics

technological

7/28/2019 Advantages of Entrepreneurship

3/7

Developing successful business idea

STEP 1: recognizing opportunities $ generating ideas.

STEP 2: feasibility analysis.

STEP 3: writing business plan industry.

STEP 4: competitors analysis.

* If we have new market or new concept then it is difficult to identify

competitors.

5 forces model

1.Bargaining power of suppliers.2.Bargaining power of customers.3.Threat to new entrance.4.Competitors (existing).5.Firm

*profit margin is a function of number of competitors.

Profit margin = f (no. of competitors) = f (time)

For perfect competition if no. of competition is large then, profit

margin is low and in monopoly profit margin is high in large

competition.

Window of opportunity

The term window of opportunity is a metaphor describing the time

period in which a firm can realistically enter a new market.

Approaches of opportunities

7/28/2019 Advantages of Entrepreneurship

4/7

1.To observe trends.2.Solving a problem.3.Finding gap in the market place.

Observing trends

Trend is a movement in certain direction. It creates opportunity and is

a source of threat. By observing trends, we get idea.

There are four forces :-)

1.Economic forces2.Political & regulatory forces3.Social forces4.Technological advances

These forces create opportunity for entrepreneurship & from this

entrepreneur provide products and services. These forces lead to

business.

Economic forces: demand and supply, level of disposable income ,

state of the economy, consumer spending patterns.

Technological advances: internet gadgets.

Political &regulatory charges: subsidies and aids, trade barriers.

Social forces: increase social awareness and securities (NGO) playschool coz of bussy schedule, old age home, travell & tourism,

matrimonials, satsang, quicker.com,go green, baby boomers.

Solving a problem

Every problem is a briliant disguiesed opportunity.

Finding gaps in the market

7/28/2019 Advantages of Entrepreneurship

5/7

One of the source of gaps in the market is there would

be certain people who does not fit in the masses.

By analysing gaps we can create apportunities, whichcan be source of business idea.

Personal characterisics of an entreprenuer

Sources of idea:

1.50-90% get their idea while working they might observe themarket and find the gaps then generate new ideas to fill the gap.

2.Cognitive forces/ entreprenuer alertness/ sixth sense i.e., theability to notice things without engaging in deliberate search.

Without searching anything they have the sense to find the gap

& generatye idea.

3.Social network: a) they can be solo entreprenuer & networkentreprenuer. Solo entreprenuer identify business opportunity by

their own & network who identify it by talking to others. Social

network means how you interact and co-ordinate with others.

b) strong tie relationship & weak tie ralationship: strong tie is

when entreprenuer discuss like minded people & weak tie is

when they consult with people casually.

4.Creativity :-)process of idea generation is-

1.Preparation2. Incubation

3. Insight4.Evaluatio

5.Elaboration

7/28/2019 Advantages of Entrepreneurship

6/7

Techniques of generating idea1.Brainstorming2.Focus group3.Liberarian net

Feasibility analysis

There are 4 parts of feasibility analysis:

1.Product-service feasibility: desirability and demand are theparameters of product-service feasibility analysis.

2. Industry or target market feasibility: a industry will be attactivewhen it has sizable profit & it can be sustainable with time.

When competitors are less, potential customers are many and

the industry is new then its is attractive. Target market depends

on low price elasticity. Attractiveness is important for growth

potential and profit.

3.Organisational feasibility: 1)market ability2) resource sufficiency

4.Financial feasibility: 1)enough capital for sufficientinfrastructure.

2)financial performance of other business.

Rules of brainstorming1.No criticism2.Carefree expression of idea.3.Quick pace4.Generating or taking the lead.

7/28/2019 Advantages of Entrepreneurship

7/7