Entrepreneurship Development Process

EconomicsArticles / Tutorial Titles

Introduction

Entrepreneurship refers to the creation of a new business or economic venture by infusing value into it. Entrepreneurs are individuals who create entrepreneurship ventures. The products or services offered by entrepreneurship ventures may or may not be new but the entrepreneur invests value into the process. For doing this, the entrepreneur uses his skills and the available resources productively.

The person responsible for creating entrepreneurship ventures is known as an entrepreneur. There are differences among people’s perceptions of whether entrepreneurs are born with the skills, but the truth is that entrepreneurship skills may be taught to individuals. For this, entrepreneurs must undergo an entrepreneurship development process.

What is meant by Entrepreneurship Development?

Entrepreneurship development refers to the enhancement of entrepreneurial skills through training and programs aimed at the individuals who tend to be entrepreneurs. This process is associated with the study of entrepreneurial behavior, business dynamics, and the development and expansion of businesses. The aim of entrepreneurship development is to enhance the skills of existing entrepreneurs and motivate the potential ones to become an entrepreneur in the long run.

The entrepreneurship development process comprises mainly of training the existing entrepreneurs who are interested in starting their ventures or those who want to expand their already existing ventures. This process concentrates on encouraging innovation and evaluating the growth potential of enterprises. The entrepreneurship development process augments the already existing and new ventures in expanding and growing their business potential. Apart from helping the economy to grow, entrepreneurship development helps entrepreneurs assess and manage a business and the associated financial insecurities better.

As entrepreneurship leads to the creation of jobs, it alleviates unemployment and removes the stagnation of economies. When one entrepreneur archives success in an economy, it motivates others to join the race and in this way, the whole economy gets a dynamic nature and a new potential to become a speedily growing economy to a large extent.

Objectives of Entrepreneurship Development Process

Following are the key objectives of the Entrepreneurship Development process −

  • Develop and enhance Entrepreneurial behavior and habits among the youth with the help of proper training and expert counselling.
  • To look for and identify the best existing and impending business ideas and opportunities.
  • To motivate and guide individuals from various backgrounds in launching their own businesses and start-ups and therefore become a contributor to the economy.
  • To teach various ways of risk mitigation to the youth entrepreneurs of the nation.
  • To provide and conduct various programs in order to spread the idea of Entrepreneurship in villages and rural areas.
  • To generate employment and increase self-employment and grow the small scale businesses.
  • To inform about the schemes to aid the entrepreneurs launched by various Governments (by central, state, or regional levels governmental bodies) and also about the taxes and levies attached to the businesses.

The Process of Entrepreneurship Development

In order to achieve success in entrepreneurship ventures, entrepreneurs need to follow the following steps to get control over the development process.

Learning and researching the business idea

Once an idea is selected for a new business, the entrepreneur must do his own research and gather all useful information about the business. All ideas may not be worth investing enough money in them and so the entrepreneurs should do thorough research and gather financial as well as operational data about the business.

The process of collecting data about the new business is easier said than done. The entrepreneur will have to take ideas of marketing and production as well as the design team. Apart from these, consumer surveys may also reveal significant ideas about the new business the entrepreneur wishes to start.

Evaluating the business idea thoroughly

Before going ahead with the business idea, the entrepreneur must check the plan thoroughly. There may be many aspects of the new business that has to be started and the entrepreneur must be aware of all such angles of the business venture.

The following points may be considered while evaluating the business idea.

  • Is the opportunity or idea worth investing in or not?
  • What are the major requirements for this product?
  • Is the business feasible based on its cost?
  • What are the main competitive advantages of the business idea?
  • How much is the capital that is required in the business while launching the product or service? And where and how to get this capital?
  • What are the associated risks inherent with the product or service? Such risks can be of many types like Technical Economic, Social and Environmental Risks, etc.
  • Whether the idea coincides with the company’s goals or not?

Creating a business plan

The third step in the entrepreneurship development process is to create a business plan based on the idea. The entrepreneur must take enough care in creating the business plan because it is the document that will be shown to potential investors and financial partners as well as the potential partners of the firm.

Time and effort are required to create a business plan and therefore, the entrepreneurs must be prepared to spend time on it. The business plan should contain all major elements of the business, i.e. vision, goals, financial aspects, etc.

Finding the resources

The next step of the process is to find financial and human resources to go ahead with the project. The entrepreneur must find potential investors and locate the locations where funding will be available. The entrepreneur must check for the cheapest interest rates for the investments and recruit the marketing as well as the HR team to run his business.

Framing the hierarchy model

The entrepreneur must frame the management and hierarchical structure of the business. It is an important step because the entire support of the organization will be provided by the management team. Moreover, the entire command structure will be followed by the team to run the business.

Planning for the future

When all of the above-mentioned steps are followed and the business runs smoothly on track, the entrepreneur must get ready for the expansion and enhancement of the business. In this step, the entrepreneur must look for credible sources to avail loans to expand the business lines and implement new structures along with the growth of the company.

Conclusion

Entrepreneurship is the backbone of a growing economy and hence all economies around the globe pay attention to inculcating a healthy entrepreneurial culture. In order to achieve success in entrepreneurial ventures, the entrepreneurs must have rare skills such as motivation, determination, life skills, and financial skills among others.

The success of an entrepreneurship venture depends on these factors and hence the entrepreneurs must be trained as much as possible in growing and developing economies. Entrepreneurship is a tough task but with proper guidance and training, many individuals can become successful entrepreneurs. The requirements for this are time and training of the potential future stars in the business.

FAQs

Qns 1. What is entrepreneurship development?

Ans. Entrepreneurship development refers to the enhancement of entrepreneurial skills through training and programs aimed at the individuals who tend to be entrepreneurs. Entrepreneurs are business leaders who start their own venture with a new business idea that has value in it.

Qns 2. Do people born with entrepreneuship skills or they may be acquired?

Ans. Although many people believe that people are born with entrepreneurship skills, training and guidance may help in the creation of new entrepreneurs.

Qns 3. What is the first step of the entrepreneurship development process?

Ans. Learning and researching the business idea is the first step where every detail about the new business should be gathered by an entrepreneur.

raja
Updated on 13-Oct-2022 11:19:47

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