ENTREPRENEURSHIP DEVELOPMENT

 Module II 
Chapter-1:
Entrepreneurial Environment, Identification of Opportunities, Converting
Business Opportunities into reality.
Chapter-2:
Start-ups and business incubation, Setting up a Small Enterprise, Issues
relating to location.
Chapter-3:
Environmental Problems and Environmental pollution Act, Industrial
Policies and Regulations. 
 Entrepreneurial Environment
 
Environment refers to those factors which has strong impact
over the business. Business can't function in isolation it must
regularly come contact with the environment. Various factors
exist in the environment which are changing regularly. Changes
are increasing rapidly and business in turn must cope up with
such changes. Organization which remains passive towards the
changes would gradually fade away.
Classification of Environment
 
* Micro environment: It refers to as small area or immediate periphery of an
organization. It influences an organization regularly and directly.
Element of micro environment can be classified as below:
 Consumer / customer- customer is the person who purchase the good whereas
Consumer is the one who ultimately consumes the goods. It is necessary to identify
who are the customer or consumer, what is their buying habits, test and
preference.
 Market : it is larger than customer, various factors are to be consider such as cost,
technological element, distribution factors
 Supplier : they are provider of raw material equipment's, other services they have
the bargain power and ability to influence the business.
 
 
Organization: it can be classified owners that is individual shareholder or group
who have a stake or interest in the organization, board of directors who are
elected by shareholder and is the in charge of general management of the
organization, employee they person actually work in the organization.
 Intermediary: agents, broker, middle man have an ability to exert the
considerable influence over the organization
 Competitors: they may be direct indirect identifying and diagnosing typo of
competitor, their composition, resources used and the ability to influence the
organization is to be identified. Competitors not only share market but also share
profit.
Macro Environment: it refers to  as a largely external element to the enterprise
which is beyond the control of the organisation but which has an ability to
influence the business.
Elements of the macro environment are classified as below:
 
Demographic environment: Demographic denotes population in an area,district,
and country. Factors such as age or income ahility to influence the business. Few
factor can be elaborated as below
 Population size: Changes in the population, birth rate death an ability to influence
the business
 
Geographic distribution: shift change in the population from non metropolitan to
metropolitan will have an impact on the company's strategy.
 Income distribution- changes in the Level of income purchasing power, saving
pattern will affect the business
Ethnic mix - factors such as changes in the ethnic mix of population with regard
to product or service delivery will the new services or product demanded or
whether the existing one is to be modified. ability of the manager to manage
the culturally diverse workforce
 
Economic environment: factor such as money market. raw material
components, supply market influence the supply. Purchasing power depends
upon income, distribution and circulation of money as well as savings.
 
Technological environment: Technology are growing rapidly it can be consider
both opportunity and threat. Opportunity for those business which can take
advantage of it how threat as to those business which can't take the advantage
of it. Organization must identify the technology, investment, and additional
technology, positive and negative effect of the same.
 
Political legal issues / environment:the type of government in power
political pressure various rules regulation laws relating to companies,
competition,labor, foreign exchange is to consider and have an impact on
the business.
 
Social factor / environment: it consists of factor like human relation and the
impact of social and cultural values which has a hearing on the business
Factor such as role of business in society, environment pollution. role of
women in society, education level awareness and consciousness of
[Link] utilization of labor and non-exploitation of labor.
 Identification Of Opportunities:
opportunity always exists in the environment. It is the entrepreneur who
need to sense the opportunities available in the environment. Having
sensed the entrepreneurial opportunities the next step involved in
enterprise creation or establishment is to properly identify the
opportunities available for one in the given environment and then select
the best one from amongst the available to be pursued as an enterprise.
Entrepreneur and enterprise go hand in hand. The success of business
enterprise is depends on the compatibility of entrepreneur and
enterprise.
 PORTER’S FIVE FORCES MODEL TO
UNDERSTAND BUSINESS OPPORTUNITIES

Porter’s five forces:

• Porter's five forces analysis is a framework for industry analysis and business strategy development
formed by Michael E. Porter.
• It determines the competitive intensity. It also determines the ultimate profit potential of the
Industry.
Converting Business Opportunities into reality
When you have a great idea for a business, the thrill can drive you
headlong into an energetic launch. But wait. Statistics show that over
50% of businesses fail in their first five years– with 30% failing in the
first year alone.
There are several reasons why businesses go down, but this early failure
rate is usually the result of poor planning. For a business idea to succeed
, you need to follow methodical procedures to ensure you launch from a
firm base. And the first question to ask is whether your idea is as smart
and original as you think.
1. Research the market You may think you’ve come up with a fool-proof idea, but is there a market for it? Many businesses
launch, only to find someone else has already had the same idea and has got into the market first. Or the potential market is so
small that you’re never going to be able to make a sustainable income from it. You need to carry out a full market analysis of
your idea and the target audience to ensure your idea is really going to fulfil a need.
Start by doing a SWOT analysis on your proposal, defining all the strengths, weaknesses, opportunities, and threats associated
with it. Involve all your business associates, or friends and family members if you’re working alone. Going through the process
will help you to evaluate and refine the concept at a high level- questions to ask include:
 What demand is there for your idea?
 If it is a product, who will buy it?
 If it is a service, who will use it?
 Who else in the UAE does this already?
 Are they successful and, if so, why?
 What price can you put on your product or service?
As you build up answers to these questions, you will form a clearer picture of whether or not your idea is sound. If it’s not, let it
go.
2. Compile a financial plan If your market research is positive, and you decide to proceed,
the next step is to put together a financial forecast. This will become a valuable guide when
you’re up and running and is essential if you’re applying for funding. The more thorough
your market research and your financial plan, the better chance you stand of securing
investment. This also applies if you’re relying on friends and family for launch capital–
often the preferable option because the terms are more favorable. But take a professional
approach and make sure you have an agreement in writing. There’s nothing like unpaid
debts to turn a relationship sour.
Your financial plan is a key part of your overall business plan, forecasting how the figures
will add up. It needs to include sound estimates of overheads, cash flow, income, profit/loss
and investment stages, usually projected over three to five years. Of course, these figures
will be largely theoretical, but they need to be based on reality, so do your research. An
accountant or business startup consultant will be able to help you.
3. Position your product or service So, you’ve ascertained that there is a market for your
idea, and that the figures work out. Now it’s time to prepare your idea for market. You need to
be able to describe quickly and clearly what it is you’re selling. Potential customers have a
very short attention span, so you need to grab them in a matter of seconds.
Start with the benefits. What will your product or service do for its customers? What need or
problem will it satisfy? Explain it in language that your target customers will understand in
under 30 seconds. When Steve Jobs of Apple launched the iPod in 2001, he didn’t describe
the new device as an MP3 player with a 5GB hard drive. He introduced it as “a thousand
songs in your pocket.” The audience understood the proposition immediately. When you’re
happy with your messaging, test it on friends and family, or your startup consultant.
4. Build your brand The most successful businesses are instantly recognizable in many ways:
their name and logo, their strapline, their colors, their use of imagery, their tone of voice. All
these factors make up their brand. You don’t have to be a large, established company to have a
strong brand. By paying attention to all these aspects, you can build a new brand that quickly
catches on and gains recognition.
Consistency is key. Your brand needs to be an unwavering reflection of your values, but it also
needs to reflect the values of your target customers. You can develop your brand personality by
thinking of your product or service as a person or an animal, for example.
With the help of a branding expert, you can translate your brand personality into a look and feel
and tone of voice, with brand guidelines to follow for consistency. It’s the consistent application
of these guidelines across all your marketing that gives your idea life as a brand.
5. Set up a legal company With your big idea developed and tested, you’re now at
the stage to formally set up your business. There are various ways you can do this
in the UAE. Cutting corners, though, could jeopardize your company before it even
starts. The best approach to setting up a legal company is to
use a reputable company formation specialist. They will listen to your needs,
explain the options and propose the best way forward. They can also complete all
the paperwork, set up a corporate bank account and make sure you stay legally
compliant.
Patience is the key when turning a business idea into reality. Applying the above
steps in order should help avoid the pitfalls of building your house on flimsy
foundations. Most importantly, share the process. Listen to constructive criticism
and take professional advice. After all, this could be a life-defining venture
THANK YOU