ENTREPRENEURSHIP DEVELOPMENT ~ Multiplex Coder

LECTURE 3

ENTREPRENUERSHIP DEVELOPMENT

Entrepreneurship development is the means of enhancing the knowledge and skill of entrepreneurs through several classroom coaching and programs, and training. The main point of the development process is to strengthen and increase the number of entrepreneurs.

This entrepreneur development process helps new firms or ventures get better in achieving their goals, improve business and the nation’s economy. Another essential factor of this process is to improve the capacity to manage, develop, and build a business enterprise keeping in mind the risks related to it.

In simple words, the entrepreneurship development process is about supporting entrepreneurs to advance their skills with the help of training and coaching classes. It encourages them to make better judgments and take a sensible decision for all business activities.

Process of Entrepreneurship Development

The below-mentioned steps will illustrate how to build an effective entrepreneurship development program for an entrepreneur to organize and launch the new ventures.

Discover – Any new process begins with fresh ideas and objectives, wherein the entrepreneur recognizes and analyzes business possibilities. The analyzing of opportunities is a risky task, and an entrepreneur looks out for inputs from other persons, including channel partners, employees, technical people, consumers, etc. to reach an ideal business opportunity.
Evaluation – The evaluation of an opportunity can be done by asking several questions to oneself. For instance, questions like whether it is worth taking a chance and investing in the idea, will it attract the consumer, what are the competitive advantages and the risk linked with it are asked. A reasonable and sensible entrepreneur will also analyze his skills and whether it matches his entrepreneurial objectives or not.
Developing a plan – After the identification of an opportunity, an entrepreneur has to build a complete business plan. It is the most important step for new business as it sets a standard and the assessment criteria and sees if a company is working towards the set goals.
Resources – The next step in the process of entrepreneurial development is resourcing. Here, the entrepreneur recognizes the source of finance and from where the human resource can be managed. In this step, the entrepreneur also tries to find investors for his new business.
Managing the company – After the hiring process and funds are raised now its time to start the operation to accomplish the desired goals. All the entrepreneur will decide on the management structure that will be assigned to resolve the operational problems whenever it occurs.
Harvesting – The last step in this process is harvesting, where an entrepreneur determines the future growth and development of the business. Here, real-time development is compared with the projected growth, and then the business security or the extension is initiated accordingly.

ROLE/IMPORTANCE OF ENTREPRENEURIAL DEVELOPMENT

EDPs have great role and relevance in increasing the supply Of new entrepreneurs to accelerate the process of industrialization. It is widely accepted that persons interested to become entrepreneur will be greatly helped if appropriate training and development programmes are made available to them. Need/ lmportance of EDPs can be judged on the basis of following points .

(1) Eliminating Poverty and Unemployment : Most of the under developed countries are confronted with the chronic problem of unemployment. EDPs can help these unemployed people in getting self employment and at the same time generating employment opportunities for others. Various programs initiated by the government like NREP (National Rural Employment Programme, IRDP (Integrated Rural Development Programme etc. are aimed at tackling unemployment problem.

(2) Balanced Regional Development : Successful EDPs help in accelerating the pace of industrialisation resulting in the reduction of concentration of economic power. Small scale units can be set up in remote areas with little financial resources and it helps in achieving balanced regional development. EDPs aimed at promoting small scale units are more useful for balanced regional development than medium and large scale units.

(3) Economic Growth : The relevance of EDPs can be clearly understood by their role in the economic development of developing countries like India. Such programmes create many entrepreneurs who are able to establish small and micro enterprises which require less investment in funds. It increases new investment and bring innovations. All these activities in turn stimulate the economic growth.

(4) Optimum use of Locally Available Resources : The EDPs can help in harnessing locally available resou ces by training and educating the entrepreneurs. Since abundant resources are available locally, proper use ofthese resources will help in creating a healthy base for sound economic growth and rapid industrialisation. EDPB also help in minimising excessive scraps, defective output and wastage in the production process.

(5) Promote Innovations : Entrepreneurial Development Programmes initiate the people for innovations and creativity. EDPs have become a vital strategy for harnessing the vast untapped human skills, to channelise them into accelerating industrialisation.

(6) Defuses Social Tension : Every youth feels frustrated if he does not get employment after completing his education. The surplus young energies can be diverted to self-employment careers to help the country. This may defuse social tension and unrest among youth.

(7) Development of Entrepreneurship Qualities : Thus the EDPs are needed to induce achievement motivation and develop entrepreneurial characteristics or competencies among young persons through training with a view to making them successful future entrepreneurs.

(8) Preventing Industrial Slums : More industrial units are located in highly congested areas and it leads to creation of industrial slums. EDPs help in removal of these slums as entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own entreprises in all the places. It will help in controlling industrial slums and also reduces pollution, traffic congestion and over crowding in developed areas.

(9) Fulfilment of Dreams : EDP is necessary to motivate the potential entrepreneurs to convert their dreams into action.

(10) Successful Launching of New Units : EDP develops motivation, competence and skills necessary for successful launching, management and growth of the enterprise.

(11) Development of Rural and Backward Areas : If new enterprises are set up in backward and rural areas of a developing country like India, they are sure to mitigate poverty in, such areas and also to remove lopsided economic development that is, concentration of business enterprises in urban areas only.

DIFFERENCE BETWEEN ENTREPRENEUR AND MANAGER

The main difference between Entrepreneur and Manager is their role in the organization. An entrepreneur is the owner of the company whereas a Manager is the employee of the company. Entrepreneur is a risk taker, they take financial risk for their enterprise. The entrepreneur has a vision and focuses on achievements and profit.

Entrepreneurs vs Managers

Who is an Entrepreneur?

Very basically speaking, an entrepreneur is a one-man show that runs entrepreneurship. However, such a person usually has some unique attributes that allow him to be successful in his endeavors. He is essentially an initiator and a leader. He brings business ideas to fruition thus starting off his venture.

Who is a Manager?

A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one that is responsible for the management and administration of a group of people or a department of the organization. His day to day job is to manage his employees and ensure the organization runs smoothly.