ETP Seminar at GIFT - Jan 7, 11

8/8/2019 ETP Seminar at GIFT - Jan 7, 11

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Entrepreneurship as Career Option

January 7, 2011

By

Muhammad Javed Afzal

Manager Training Services, SMEDA


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Scheme of Presentation

Introduction to Entrepreneurship

Role of Academia in promotingEntrepreneurship

Role of SMEDA in EnterpriseDevelopment


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Introdu

ction toEntrepreneurship


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Introduction to Entrepreneurship

Entrepreneurship is the practice of startingnew organizations or revitalizing mature

organizations, particularly new businesses

generally in response to identified

opportunities.

(Wikipedia)


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Why to Become an Entrepreneur?

Limited Employment Opportunities

Unfulfilled Market Needs

Limited Compensation as an

Employee

One Can Make Own Decision


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If you have a Boss.

Keep praying..

Give me the wisdom to understandGive me the wisdom to understand

my Bossmy Boss

Give me the love to forgive himGive me the love to forgive him

Give me the patience to understandGive me the patience to understand

his deedshis deeds

But Dear God, Dont give me PowerBut Dear God, Dont give me Power

Because if you give me the PowerBecause if you give me the Power

I WILL BREAK HISI WILL BREAK HIS

HEAD .!!!!!!!!!!!HEAD .!!!!!!!!!!!


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Remember Ever-famous 2-Point Universal Rule

for Doing a Job Successfully

Point No. 1 Boss is ALWAYSRIGHT

Point No. 2 If Boss is WRONG, Go to

Point No. 1


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Who are Entrepreneurs?

Prefer for moderate risk Confidence in ability

Creative thinking

Act on needs & opportunities

Ability to interact with people

Desire for feedback

High level of energy

Future orientation

Ability to organize

Values achievement over money


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Potential Limitations of Entrepreneurs

Uncertainty of income

Risk of losing your entire invested capital

Long hours and hard work

Lower quality of life until the business getsestablished

Complete responsibility


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Entrepreneurship Cycle

Decision to become an Entrepreneur

Generation ofIdeas

Validation and Selection of Business

Developing Business Plan

Getting Resources and Start up

Management ofResulting Products/Services

Expanding Business -- Growth


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Process of Entrepreneurship 1/2

1. Sources ofIdea Generation

2. Validation & Selection ofIdea Sources

3. Important Consideration in Validation &

Selection ofIdea

4. Types of Businesses

5. Business Plan

6. Market Analysis

7. Competition Analysis


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Process of Entrepreneurship 2/2

8. Selection of Location

9. Inputs (Raw Material & Services)

10. Technology & Machinery

11. Process Design

12. Human Resource

13. Marketing the Product/Service

14. Selecting the Right Distribution Channel


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Types of Businesses

Manufacturing

Part

Whole

Assembly

Trading

Distribution

Services

Part

Whole


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Business Plan

Executive Summary Profile of Entrepreneur (s)

Project Brief (Capacity, Process Flow, Raw M/t, Project Cost)

Industry Analysis

Produ

ct or

Servi

ce Des

cription

Target Market Analysis

Marketing Plan/Techniques

Strategic Position & Risk Assessment

Technology Plan

Management & Organization 5 Year Financials (IS, C F S, B S, IRR, Payback, NPV)

Graphs and Charts Pre-Configured with Financial Data

Appendices


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Can I Become an Entrepreneur ?

Conduct a Self-SWOT-Analysis

Analyse Yourself with Respect to Your:

Strengths and Weaknesses

So as to:

Identify Opportunities for yourself

and

Avoid potential Threats for yourself


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Role of A

cademia in

Promoting Entrepreneurship


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Gap between Academia & Industry

Mismatch ofHEIs pass-outs & Industry Need

Lack ofcompetency based curriculum development

Supply driven programs

Academias capacity in action oriented research

Lack of On-the-Job Training (OJT)

Industry doesnt realize the use of trained workforce

as a competitive tool Industry not willing to invest in R& D


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Role of Academia In Promoting

Entrepreneurship

Surveys for HRneeds

EDCs, Business Incubators

NetworkingGroups - Shell Livewire, Active Citizens Program

Entrepreneurship Forums

Business Mentoring

R& D (with Industry)

Promote Entrepreneurship Beyond the Classroom

Competitions for Business Plan, BusinessIdeas & Proje

cts et

c.

Compulsory OJT & Internship

Sector SpecificResearch Oriented Projects


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Role ofSMEDA in

Enterprise Development


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Estimated Number: 3.2 million (99% SMEs)

Value Addition in Manufacturing: 35%

Contribution to GDP: 30%

Share in Exports: 25%

Contribution in Employment: 78%

SMEs in Pakistan


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Enterprises by Employment Size

97%

2.50%

0.23%

0.1%

0.09%

0% 20% 40% 60% 80% 100%

1 to 9

10 to 49

50 to 99

100 to 199

200 & above

Source: Census of Establishments


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Major Problems ofSMEs

Technology ~ Low Technology Base

Financing ~ Lack of Access to Finance

Marketing ~ Lack of Market Information

Human Resources ~ Limited HRD Skill Development

Regulatory ~ Govt. Rules Impediments

Low Value Addition


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Operational Strategy

Building a Conducive Environment Proposing and facilitating changes in Policy and Regulatory Environment

Reducing the Cost of Doing Business

Facilitating Government-SME Interface

Developing Clusters and Sectors

Sector Studies, Strategies and Implementation

Cluster Development

Common Facility Centers (CFCs)

Provision and Business Development Services

Investment Facilitation

Technology, Training, Finance, Business Information, Marketing, and Legal Support

Productivity and Competitiveness Improvement


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Enterprise Development Activities

Pre-feasibilities / Business Plans

BDS in Financial, Training, Marketing, Technical etc.

Cluster Development

Sector Development

Industry Support Cell

Legal and Regulatory Support --- Operational matters

Business Matchmaking --- Potential partners

S

MEDA Acc

ounting Pac

kage (S

MAP) Public Sector Development Programs


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Regional Business Offices

04 Provincial Offices

22 RBCs in major cities all over the country.

Functions ofSMEDA RBC

Business Counseling

Project Identification / Implementation

Business Development Services

Business Information

Business Match Making

Assistance in Fund Raising

Legal and regulatory procedures


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SMEDA Publications

Trade SecretsSecrets of E-Commerce

How to Approach Banks

Making a Mark

Looking Good

Creative Expression

A Stitch in Time

Inventing the Future

Trade in Services


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Off-Shoots ofSMEDA

BSF

CSF

PHDEC

TUSDEC

Dairy Pakistan

PGJDC

PASDAC

Furniture Pakistan

AHAN


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Technology Up-gradation

Technology Up-gradation in

Electrical Fittings Cluster,

Sargodha

Help in up-gradation of bakeliteelectrical products manual press

being used by industry

Development of Automatic

Model Press through PrivateConsultant

Awareness Workshop and

Physical Demonstration to

SMEs


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Common Facility Centers (CFCs) 1/2

Computerized Pattern Designing, Sialkot

Artificial Insemination, Burj Attari

CFC for Light Engineering Cluster, Gujranwala

Auto Parts Design & Inspection Center , Lahore

Electrical Fittings Support Center (Bakelite) Sargodha

Wooden Furniture Support Center , Chiniot


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Common Facility Centers (CFCs) 2/2 G

ujranwala Business Centre Agro-Food Processing Facility, Multan

S I D C, Sialkot

Revival of CIP

WBIC, Lahore & Peshawar

HLFC, Hyderabad

GPDMC,Hyderabad

Red Chilies Pro

cessing Center

CFC Matta Mughal Khel

SME Sub-Contracting Exch. Gujranwala

Chromite Beneficiation Plant


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Lending Programs

Power Loom Up-gradation, Faisalabad

Rs.226 million disbursed by PSIC, SME Bank and

Union Bank

150 entrepreneurs benefited

Support Services for Agriculture Credit, Pattoki,

Sheikhupura & Phool Nagar

Rs.77.45 million disbursed

252 farmers got benefit

Cutlery Sector, Wazirabad

40 applications submitted to Bank of Punjab

15 million approved for 20 applicants

Plastic & PVC Pipes Sector, Lahore under Process


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Marketing Services

Website for Gems & Jewelry Sector

Website for Cutlery Cluster, Wazirabad

Website for Mango Cluster, Multan

Indian Consultant for Sportswear Cluster, Sialkotand Plastic Cluster Lahore

Women Entrepreneurs Information Network (WIN),www.win.org.pk

Women Entrepreneurs Association, Multan

Pak German Auto Network

Industrial Information Network (IIN) B2B Portal


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Glimpse ofSMEDATraining


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Concluding Thoughts

Entrepreneurship, as Way Forward forRepositioning Economy

Role of Academia in promotingEntrepreneurship

Role of SMEDA in Enterprise Development

Expectations from the Youth


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12 Steps to Startup

Take a Skills and Interests Inventory

Research and Evaluate Your Idea

Calculate Your Costs

Write Your Business Plan

Identify Source ofStartup Financing Choose a Business Structure & Name Your New Business

WorkThrough the Startup Paperwork Maze

Develop Your Marketing and Customer Service Plan

Court Your First Customers

Develop and Hire Support Team

Execute Your Marketing Plan

Hang Out Your Shingle


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Sources ofIdea Generation

Family & friends

Current employer

Chambers and trade associations

Government institution like SMEDA, TDAP, BOI,PCSIR

Research Institutes and Universities

Industry leaders/unit owners

International development agencies

Seminars, training programs and workshops

Internet


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Personal and Family background

Education background

Attitude

Estimate of market needs and volume

Ability to manufacture or deliver a service

Government policies and incentives

Investment size

Growth opportunity

Location

Availability of inputs

Validation & Selection ofIdea

Important Consideration


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Market Analysis

Does the market exist?

Consumption pattern of similar products

Market Research

Product / Idea testing

I

nternational trade data


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Market Analysis

Market Volume and Characteristics? FBS Data

Current production levels

Population growth

GDP andI

ncome Levels Government Policies Tariff Structure, duties, Subsidies

Focus Group discussions

Trends in Allied Products

Trends in Substitute Products

Distributor Retailer Feedback International Trends

International Trade Regulations

Foreign trade office in Pakistan and Pakistani MissionsAbroad


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Competition Analysis

Number of competitors

Location and Size

Marketing distribution and promotion

Pricing

Consumer loyalty

Comparative advantage


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Selection of Location

Proximity to market Proximity to suppliers of inputs

Government incentive packages

Land price Availability of infrastructure

Law and order situation

Acc

ess to Airport, Dry Port,S

ea Port etc.

Proximity to Established Trade Routes

Location of Competitors

Creditcy

cle in the area

ETP Seminar at GIFT - Jan 7, 11

Documents

Transcript of ETP Seminar at GIFT - Jan 7, 11