The need for entrepreneurs for a country’s economy:
• LifeLine of Any Country: When Entrepreneurs Contribute to Business Measuring the Growth of a Country, Its Means the Progress of a Country.
• Source of Innovation: Entrepreneurs innovate new ideas, improve existing products or services, and open up the possibilities of new markets. Entrepreneur’s new innovations contribute to the economic development of a country.
• Increased profit margins: Entrepreneurs with their innovative methods and practices reduce product/operating costs and increase profitability. They lay the foundation for future growth and development of the country.
• Additional jobs: Entrepreneurship involves establishing or expanding a company. This creates more job opportunities.
• Social Benefit: Entrepreneurs develop improved products and services at lower cost, thereby improving quality of life. It helps to make optimal use of scarce resources and promotes peace and prosperity in the community.
Process to start an enterprise:
• Self-discovery: One must first identify the possibilities of becoming an entrepreneur and what it takes to be an entrepreneur. Careful analysis:
(i) What makes one entertain?
(ii) What are their strengths?
(iii) What are their weaknesses?
(iv) What is their experience?
(v) How closely they can relate their expertise to a commercially viable opportunity?
• Identifying opportunities: The next step is to identify the opportunity. This can be done by careful analysis, which will then need to be addressed significantly.
(iii) Everyday problems
(iv) Everyday challenges
Then deal with those that have not yet been addressed or that require significant improvement.
• Create ideas and evaluate them: At this stage, innovative ideas are developed to address the opportunities in the previous step. The entrepreneur’s experience and creativity play an important role at this stage. The various ideas thus created are further filtered into one.
• Planning: At this stage, the entrepreneur undertakes extensive research and decides on various sources to turn his ideas into a business venture. He then prepares a business plan to market his business enterprise.
• Raising Initial Capital: The business plan is then discussed with various partners and venture capitalists. To convince financial contributors and gain their trust, the entrepreneur may need to present a product or service prototype or he or she should test the marketing strategy.
• Startup: Entrepreneurs at this stage:
(i) Start a company.
(ii) Build a customer base.
(iii) Ensure marketing is effective.
(iv) Develop a plan to carry out the routine activities of the company.
• Growth: Entrepreneurs at this stage:
(i) Develop a strategic plan.
(ii) Implement the plan.
(iii) Making adjustments in line with market changes.
• Harvest: At this stage, if the firm is stable and profitable, the entrepreneur will sell his company and reap the rewards. After this many entrepreneurs will start focusing on their next venture to tackle new issues/wants/needs/challenges. This is an ongoing process.
Functions of the Entrepreneur:
(2) Secondary Activities:
(i) Diversification of production.
(ii) Expansion of the company
(iii) Maintaining good employer and employee relationships
(iv) Overcoming the labor problem.
(v) Coordinate and communicate with third parties
(3) Other functions:
(i) Managing scarce resources.
(ii) Dealing with public bureaucracy.
(iii) Identification of parallel opportunities.
(iv) Build strong customer relationships.
Also read: Concept of entrepreneurship , Types of entrepreneur , Process of entrepreneurship , Concept of management , Managerial Skills , Planning process , Process of Decision Making , Bounded Rationality