ENTREPRENEURIAL DEVELOPMENT

What is Entrepreneurship Development?

Entrepreneurship development is the process of enhancing the

entrepreneurial knowledge and skills via structured training programs. It deals with
the study of entrepreneurial behavior dynamics of business, and its development
and expansion. The objectives of entrepreneurship development programs are to
increase the knowledge and skill of existing entrepreneurs and encourage others to
become one. Ultimately, it helps in increasing the number of such individuals in an
economy.
Entrepreneur development focuses on training individuals who are interested in
commencing their venture or expanding their existing one. Furthermore, it
concentrates more on encouraging innovation and evaluating the growth potential
of an enterprise. This development process helps new firms to perform better and
achieve their goals and expand their businesses.
OBJECTIVES OF ENTREPRENEURSHIP DEVELOPMENT

The objective of Entrepreneurship Development programs are listed down

here -
a. To Develop Entrepreneurial qualities and habits among the upcoming youth
via the help of proper training and expert counselling.
b. To search and identify the best existing and upcoming business ideas and
opportunities.
c. Motivating and guiding various individuals for launching their own new
businesses and startups. Thus, becoming a contributor to the economy.
d. To reach risk mitigation to the youth of the nation.
e. Provide and conduct various programs to spread the idea of Entrepreneurship
in rural areas and villages.
f. To generate employment and self-employment with the help of
Entrepreneurship and the growth of small scale businesses.
g. To inform about various schemes launched by various Government (central,
state or regional governmental bodies) and also about various taxes put on
enterprises.

ENTREPRENEURSHIP DEVELOPMENT PROCESS

Every entrepreneurship development process comprises several steps. Here are the
vital steps of building an effective development program to help individuals
1. Learn about the Business Idea

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It is the starting process of entrepreneurship. Once an individual has

generated the idea for a business, he/she will subsequently need to evaluate
and identify its business opportunities. Hence, he/she has to learn more about
the business and its consumers.
However, it is not an easy task. To find relevant information, an entrepreneur
has to talk to his/her employees, the marketing team, product designing team,
etc. Apart from these, consumer surveys often unearth various new pieces of
information. They can help individuals to learn more about their business
ideas.
1. Through Evaluation

Before moving forward, entrepreneurs need to evaluate a business idea or

opportunity thoroughly. It is considered one of the most crucial parts of the
Entrepreneurship Development Process. An entrepreneur can do it by
himself/herself by considering the following points –
 Whether an opportunity or idea is worth investing in or not.
 What are the requirements for this product?
 Is it feasible or not based on its cost?
 What are the competitive advantages?
 The capital that is required to put in the business, before the launch of
that certain product or service. And where to get this capital.
 Associated risks that are inherent with the product or service. Such
risks can be of many types like Technical risks, Economic risks, Social
and Environmental Risks.
 Whether it coincides with the company’s goal or not
1. Additionally, an entrepreneur must evaluate his/her skills and if he/she can
manage such it. Business Plan
After identifying the opportunity and gathering information about it, an
entrepreneur needs to create a comprehensive business plan to make most of
this opportunity. It is one of the vital stages of the entrepreneurship
development process. Such a plan acts as the base of a venture as well as the
benchmark. It shows whether the business is on track or not.
Creating a business plan requires time and effort, and an entrepreneur must
be dedicated to it. The significant pieces of a business plan, i.e. its vision,
goal, objectives, capital and the product itself must be figured out in this
process.

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1. Finding Resources
Once the entire business plan is ready, the next step of entrepreneurship
development and management is to locate sources of finance and human
resources. Here entrepreneurs find investors for his/her venture. Moreover,
recruits individuals as per their skill and abilities to carry out different
business activities.
1. Framing out the Management Structure
It is a crucial concept of entrepreneurship development. After raising funds
and hiring the required employees, this is the next process on the list. An
entrepreneur must frame out the hierarchy in the organization Thus, it
becomes easier to resolve any problem through this chain of command.
1. Plan the Future
Once a business is up and running smoothly, an entrepreneur has to consider
its future. In this final point of entrepreneur development programm notes,
businesspersons decide the next step of the business. Based on actual data
generated by the company and pitting it against the projected one gives a
clear idea of how the business is performing. If Benefits of Entrepreneurship
Development to the economy
Benefits of Entrepreneurship Development to the economy
There are many reasons why it is important for the economy. Here are nine
benefits of entrepreneurship development to the economy:
o Drives innovation and creativity.
o Creates jobs.
o Boosts economic growth.
o Reduces unemployment.
o Encourages risk-taking.
o Fosters social and economic mobility.
o Promotes competition.
o Generates new ideas and processes.
o Fosters sustainable development

1) Drives innovation and creativity.

Innovation and creativity are essential for any economy to grow and compete
in the global marketplace.

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It is a major source of new ideas and innovations. According to the U.S.

Small Business Administration, small businesses account for more than half
of all private-sector employment in the United States. They also generate
more than 60% of net new jobs. By giving people the tools and resources to
start their businesses, it allows for more innovation and creativity in the
economy. This can lead to new products or services that can improve the
lives of consumers and make businesses more efficient.
2) Boosts economic growth.
Entrepreneurship is critical for economic growth. It leads to the development
of new products and services, which can stimulate investment, increase
productivity, and drive competitiveness.
each year. It encourages innovation and creativity.

A study by the Global Entrepreneurship Monitor found that countries with higher
rates of entrepreneurship tend to have higher rates of economic growth.
3) Creates jobs.
It boosts job creation: One of the most obvious benefits of entrepreneurship
development is that it leads to job creation.
When people can start their businesses, they are also able to create jobs for others.
This can help to reduce unemployment and underemployment, as well as improve
the overall quality of life for people in the economy.
4) Reduces unemployment.
Unemployment is a major problem in many economies around the world. It can
help to reduce unemployment by creating new jobs.
A study by the European Commission found that self-employment and
entrepreneurship are important sources of employment in Europe, with more than
15 million people working in their businesses.
5) Encourages risk-taking.
Risk-taking is an essential part of entrepreneurship. Without it, innovation and
growth would not be possible.

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Entrepreneurs must be willing to take risks in order to succeed. They need to have
the courage to try new things and the resilience to bounce back from failure.
6) Fosters social and economic mobility.
Social and economic mobility is important for any economy. They allow people to
move up the ladder of success and improve their standard of living.
It can promote social and economic mobility by providing opportunities for people
to start their businesses and achieve their goals.
7) Promotes competition.
Competition is essential for any economy to function effectively. It promotes
efficiency, innovation, and growth.
It encourages competition by providing new businesses with the opportunity to
enter the market and compete against established firms.
8) Generates new ideas and processes.
New ideas and processes are essential for any economy to grow and thrive.
Entrepreneurship is a major source of new ideas and processes. It helps to create
new industries and drive economic growth.
9) Fosters sustainable development.
Sustainable development is an important goal for any economy.
Entrepreneurship can contribute to sustainable development by creating new
businesses and jobs, and by promoting innovation.
STAGES OF ENTREPRENEURIAL DEVELOPMENT
There are seven stages of entrepreneurial development. By following these steps,
you will be well on your way to starting a successful business. They include;
1. Finding a business idea:
This is the most important step of entrepreneurship development. You need to have
a great business idea to start successful enterprise. The best is to think about what
you are passionate about and what needs are not being met in the marketplace.
2. Building a team:
Once you have a business idea, you need to start building a team of like-minded
individuals who will help you to turn your idea into a reality. This team will
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include people with different skillsets and expertise, so its important to choose
wisely.
3. Creating a business plan:
A business plan will help you map out the goals and objectives of your new
business, as well as the strategies you will use to achieve them. Without a solid
business plan, it will be very difficult to make your business successful.
4. Raising capital:
To get your business off the ground, you will need to raise money. This can be
done through investment from friends, family, or venture capitalists.
5. Launching your business:
: Once you have a team in place and a business plan created, its time to launch your
business. This is when all of your hard work will finally pay off.
6. Growing your business:
After you have launched your business, its important to continue growing it. This
can be done by expanding your product line, entering new markets, and acquiring
other businesses.
7. Exiting your business:
Eventually, you may want to sell your business or take it public. This is the final
step of entrepreneurship development, and it can be a very creative one if done
correctly.
LEVELS OF ENTREPRENEURIAL DEVELOPMENT
These are the five levels of entrepreneurial development:
LEVEL 1: The self-employed mindset:
The first level pertains to self-employed persons who desire to have greater control
over their lives, careers, and destinies by independently braving their own path into
business.
LEVEL 2: The managerial perspective:
The second level, in contrast to the first mindset, has a greater position to succeed
as an entrepreneur because of the belief that the business is all about managers who

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become leaders succeed because they accept the challenges and responsibility of
ensuring that others under their wings also succeed and flourish.
LEVEL 3: The attitude of owner/Leader:
The third level relates to entrepreneurs who have become an owner or leader of a
business with a well-established organization. This entrepreneurs enjoy
remarkable benefits by knowing how to step aside and let the business and those
employees working in it operate as a profit center that is not reliant upon the
owners constant hands-on participation.
LEVEL 4: The entrepreneurial investors:
The fourth level is all about entrepreneurs who are investing and managing their
money to produce more money and to elevate the business. Franchising is one of
the key tools of those who are in this level of entrepreneurial mindset.
LEVEL 5: The true entrepreneur:
The fifth and last level pertains to an entrepreneur who turns goals and dreams into
reality and who earns through extensive passive income. These people profit in all
situations and add to their wealth by acquiring more profit centers, more paper
assets, and more entrepreneurial power.

PROBLEMS FACED IN IMPLEMENTING ENTREPRENEURSHIP

DEVELOPMENT.
1. Lack of capital:
Many entrepreneurs face challenges in securing initial capital to start or
expand their businesses.
2. Limited access to markets:
Entrepreneurs may struggle to access markets for their products or services,
hindering growth.
3. Regulatory barriers:
Complex regulations and bureaucratic hurdles can slow down the
entrepreneurial activities.
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4. Skill gap:
Lack of necessary skills and knowledge can hinder entrepreneurs from
effectively managing and growing their businesses.
5. Market completion:
Intense competition in various industries can pose challenges for new
entrepreneurs.
6. Infrastructure challenges:
Inadequate infrastructure, such as poor transportation and communication
facilities, can hinder business operations.

SOLUTIONS TO THE PROBLEMS OF ENTREPRENEURIAL

DEVELOPMENT.
1. Lack of capital:
Government backed funding programs, venture capital, and angel investors can
provide financial support. Financial literacy programs can help entrepreneurs
manage resources efficiently.
2. Limited access to markets:
Networking events, mentorship programs, and e-commerce platforms can help
entrepreneurs connect with potential customers. Government initiatives can open
up export opportunities.
3. Regulatory barriers:
Streaming regulatory processes, creating business-friendly policies, and providing
online platforms for registration can simplify compliance for entrepreneurs.
4. Skill gap:
Training programs, workshops, and educational initiatives can bridge skill gaps.
Mentorship and incubation programs can provide practical guidance.
5.Market completion:
Differentiation strategies, innovation, and focusing on niche markets can help
entrepreneurs carve out a unique position. Collaboration with other businesses can
also enhance competiveness.
6. Infrastructure challenges:

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Government investment in infrastructure development, public private

partnerships, and technology adoption can enhance the overall business
environment.

CONCLUSION
Entrepreneurial development is crucial for economic growth, jop creation, and
innovation. Addressing these problems with targeted solutions can create an
environment conductive to entrepreneurial success, fostering economic
development and sustainability.

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