Entrepreneurial Process

Index

Concept Nature Factors Qualities Function Types Sources of business idea Feasibility study Project report Business plan Setting up a Business Enterprise

Concept of Entrepreneurship
The concept of entrepreneurship refers to a special skill or ability to mobilize the factors of productionland, labour and capital and use them to produce new goods and services. An entrepreneur is a great personality, assuming the roles of a risk-taker a resource assembler an innovator and an organisor-all combined into one.

Nature
Economic activity Creative activity Dynamic activity Purposeful activity Risk element Organization building Gap filling function

Factors
Personal characteristics Life path characteristics Environmental factors

Qualities
Capacity to Assume risk Ability to learn from experience Orientation toward hardwork Control Technical knowledge and willingness Flexibility

Function
Innovation Risk taking Organization building

Types
Innovative entrepreneur Imitative entrepreneur Fabian entrepreneur Drone entrepreneur

Sources of business idea

Survey of market Survey of prospective customers Survey of resources Trade fairs and exhibitions Government organisations Project profiles Study of global trends

Feasibility study
Before making investment in a project the entrepreneur must undertake a detailed study to ensure that the project is viable . Such a study is known as feasibility study. It involves analysis of the following aspects: Technical aspect Commercial aspect Financial aspect Socio economic aspect

Project report

Once the feasibiliy study is completed an in depth analysis is made to decide selection or rejection of the project. Such a critical analysis is known as project appraisal. After the feasibility study and project appraisal, the findings and recommendation are presented in a report known as project report. This report is helpful getting clearance from the Government and also in applying for

Business plan
Business plan is an important document prepared by the entrepreneur. It describes all relevant internal and external factors involved in starting a new business enterprise. It serves the following purposes: It provides a blueprint of action to be taken in future. It helps the entrepreneur in raising funds. It helps in judging the progress of the venture at successive stages.

Setting up a Business Enterprise

Selection of line of business. Size of business enterprise Location of business Choice of form of ownership Finance planning Provision of physical facilities Plant layout Internal organization Arrangement of labour force. Tax planning Launching the enterprise.

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