MODULE II

ENTREPRENEURIAL DECISION-MAKING PROCESS & COMPETENCIES

Entrepreneurial decision-making process-Steps involved
1. Identification of problem or opportunity.
In entrepreneurship the first process of identifying opportunities or problems. If a firm are under
various problems, then identification of particular problem and opportunity are the same.
2. Generate alternative solutions.
After identifying the problems or opportunities, we have to generate alternative solutions for solving
it. We must be innovative to choose alternative ideas. That’s why we call this step an innovative step
to make entrepreneurs’ decisions for particular taking decisions.
3. Analyse the alternative solutions.
Next step is to analyse the different alternative solutions in different ways so as to identify the merits
and demerits of each alternative.
4. Selection of the best alternative.
After the analysis, the best alternative solution can be identified. The best solution which is suitable
to our problem have to be identified.
5. Implementation of the alternative.
Implement the selected alternative for getting the best result is the next step.
6. Review the performance.
The last step in entrepreneurial decision-making is to review the performance of the implemented
alternative. Compare the actual performance with the standard set and identify the changes and
rectifying measures can be taken if needed.
Identifying market needs and trends-Creativity and ideation techniques-Feasibility study
In today's dynamic business landscape, staying relevant and responsive to change is crucial for brands
to thrive. One key aspect of achieving brand relevance is identifying market trends and understanding
consumer needs. By keeping a pulse on the market and gaining insights into consumer behavior, brands
can make informed decisions and tailor their strategies to meet evolving demands.
1. Data Analysis:
Leveraging data analytics tools and techniques can provide valuable insights into market trends.
By analyzing sales data, customer feedback, and social media metrics, brands can identify patterns,
preferences, and emerging trends. For example, tracking online search trends can reveal popular
keywords related to specific products or services.
2. Consumer Research:
Conducting surveys, focus groups, and interviews with target consumers can offer firsthand insights into
their needs, preferences, and pain points. By understanding their motivations and aspirations, brands can

1
align their offerings accordingly. For instance, a skincare brand may discover a growing demand for
natural and sustainable products through consumer research.
3. Competitor Analysis:
Studying competitors' strategies, product offerings, and customer engagement can provide valuable
benchmarking insights. By identifying gaps in the market or areas where competitors are excelling,
brands can differentiate themselves and cater to unmet needs. For instance, a food delivery service may
notice a lack of healthy meal options in the market, presenting an opportunity to fill that gap.
Ideation technique
Ideation techniques are methods or processes teams use to generate, develop, and communicate new
ideas. Creative fields adopt them to stimulate free thinking and encourage the generation of diverse
views. They explore solutions before refining and narrowing them down to the best ones.
There are a variety of ideation strategies we can use to generate ideas, such as:
1. Brainstorming
Brainstorming is a well-known technique that leverages the interaction between a group of people to
create solutions by building on one another's ideas. An effective brainstorming, can be achieved by using
this technique with a group of about five to seven participants. Having a smaller group and limiting our
brainstorming session to 20 minutes helps keep the conversation focused. Participants from a variety of
backgrounds or perspectives will help to generate more diverse ideas. To set up a brainstorming session,
we need a facilitator who can make sure all voices are heard and guide the conversation. They should
establish an environment that embraces all ideas and discourages negative feedback. Participants need
to raise ideas, listen to one another, then build upon and discuss them as a group.

2. Worst Idea
The worst idea technique asks participants to come up with their worst solutions to a problem. While a
brainstorming session encourages all ideas, some people may still feel nervous about potential
criticism—this technique removes that fear because it welcomes bad ideas. It often provides a more fun
environment, as participants try to entertain one another and use their creativity to create ridiculous

2
ideas. Once our team pitches their worst ideas, our facilitator will then ask them to list the attributes that
make those ideas bad. Now the participants must think about the opposites of those negative attributes
to find what would turn those bad ideas into possible solutions. Even just discussing the worst ideas can
lead to connections or sources of inspiration that can lead to positive solutions, demonstrating their
unexpected value.
3. Storyboarding
Storyboarding is a helpful technique when designing or improving processes. Participants create a visual
story that presents their ideas and the possible outcomes of those ideas, allowing them to understand
what works and what needs improvement. Storyboards use pictures, illustrations, and other information
to better present the ideas.
For example storyboard as a comic strip. Represent each step in the process using squares filled with
either text or images describing the user's journey, and arrows between them. When looking at each step
in the process, think about how we want our users to feel about or interact with that step, then determine
what solutions or ideas will enable that. Storyboarding each step of our process can also be helpful
because we may realize our missed an essential step.

4. Mind Mapping
Mind mapping is a visual technique that establishes relationships between the problem our team is trying
to solve and potential solutions. In the middle of a piece of paper or whiteboard, write our problem
statement or a high-level keyword related to the problem. In the area surrounding that statement, we will
describe any related solutions or ideas raised by the team and link them to the central theme using lines.
Next, add another layer that specifies how we will achieve those proposed solutions, linking them to the
previous layer.

3
For example, a small business owner could write that they have low social media engagement in the
middle of the page. Next, they might create bubbles that represent solutions to improve user engagement,
such as quality content, posting schedules and direct conversations. Then they can add a layer that
outlines strategic actions to achieve those solutions, such as linking the ideas "post more images" and
"re-share content from influencers or customers" to the quality content bubble. By using a mind map,
you can break large ideas or problems into smaller, more manageable solutions.

5. Brainwriting
Brainwriting is a version of brainstorming that works well for more introverted participants. Each person
has a piece of paper and five minutes to write down as many solutions to the problem our team wants to
solve. At the end of that time, they will then pass their piece of paper to another participant, who will
build upon the ideas they had written down. we will repeat this process until everyone has contributed,
then a facilitator collects all of the papers and displays them.
Once displayed, everyone will discuss each idea and determine which ones best solve our needs. Now
we can begin improving and building these concepts further for potential use. The advantage of this
technique is that it allows everyone to contribute to the ideation process and have their ideas considered.
In typical brainstorming sessions, some people speak less while others might dominate the conversation,
so this helps ensure a fairer environment.

4
 6. Questioning Assumptions
Many industries have an assumed set of beliefs about how to do things, but this technique challenges
those beliefs to try to create more original ideas. For this reason, we may want to use this technique to
improve an existing product or build a new one. Think about what we want to solve or create, then write
20 to 30 assumptions about that product, service or idea as a group. These assumptions can be both
positive and negative and should cover all aspects of our business.
Next, go through these assumptions (or choose a few, depending on time constraints) and discuss
whether they are true or just have not faced questioning before. By doing this, our team might realize
that some assumed characteristics or strategies are not necessary, and we can replace them with newer,
more innovative ideas.

7. Sketching
When designing a product, we may want to incorporate sketching to help explore our ideas further. Some
people have an easier time conveying their ideas visually rather than verbally, and it can help our team
think about more abstract concepts. There is no pressure to create a perfect or final image of our product,
as these should be rough drafts or simple sketches that illustrate our ideas.
Collaborative or group sketching is similar to brainwriting, but each participant draws ideas instead of
writing them. These drawings are then passed around and built upon by other participants, and finally
presented to everyone and discussed. During this discussion, we may find connections between the
drawings that will help us create the most optimal design solution. Again, this is a good option for more
artistically minded teams and also ensure that everyone's ideas receive consideration from the group.

5
 8. SCAMPER
SCAMPER represents seven ways to look at a problem or project, enabling you to come up with ideas
from a variety of perspectives. This technique works well when working with an existing product or
service to determine how you can improve it or use it as a starting point to develop a new offering. Ask
yourself questions based on the SCAMPER elements, and determine whether your answers represent
viable solutions. By looking at the product or services from these different angles, you may find solutions
you would not think of otherwise. SCAMPER stands for,
 Substitute: What features of this product or service can be substituted or swapped for something
else?
 Combine: How can we combine this product or service with another product or service to
improve it?
 Adapt: How could we adapt this product or service to another audience?
 Modify: What component of this product or service can we modify to improve it?
 Put to another use: What is another use for this product or service that we have not considered
yet?
 Eliminate: What unnecessary elements can we eliminate from this product or service to
streamline it?
 Reverse: What would happen if we reversed our process or reorganized this product?

Feasibility Study
A feasibility study is a preliminary exploration of a proposed project or undertaking to determine its
merits and viability. A feasibility study aims to provide an independent assessment that examines all
aspects of a proposed project, including technical, economic, financial, legal, and environmental
considerations.
6
 1. Technical Feasibility
This assessment focuses on the technical resources available to the organization. It helps organizations
determine whether the technical resources meet capacity and whether the technical team is capable of
converting the ideas into working systems. Technical feasibility also involves the evaluation of the
hardware, software, and other technical requirements of the proposed system. As an exaggerated
example, an organization wouldn’t want to try to put Star Trek’s transporters in their building—currently,
this project is not technically feasible.
2. Economic / Financial Feasibility
This assessment typically involves a cost/ benefits analysis of the project, helping organizations
determine the viability, cost, and benefits associated with a project before financial resources are
allocated. It also serves as an independent project assessment and enhances project credibility—helping
decision-makers determine the positive economic benefits to the organization that the proposed project
will provide.
3. Legal Feasibility
This assessment investigates whether any aspect of the proposed project conflicts with legal
requirements like zoning laws, data protection acts or social media laws. Let’s say an organization wants
to construct a new office building in a specific location. A feasibility study might reveal the
organization’s ideal location isn’t zoned for that type of business. That organization has just saved
considerable time and effort by learning that their project was not feasible right from the beginning.
4. Operational Feasibility
This assessment involves undertaking a study to analyze and determine whether—and how well—the
organization’s needs can be met by completing the project. Operational feasibility studies also examine
how a project plan satisfies the requirements identified in the requirements analysis phase of system
development.
5. Scheduling Feasibility
This assessment is the most important for project success; after all, a project will fail if not completed
on time. In scheduling feasibility, an organization estimates how much time the project will take to
complete.

7
 Business Planning
Business planning is developing a company's mission or goals and defining the strategies you will use
to achieve those goals or tasks. The process can be extensive, encompassing all aspects of the operation,
or it can be concrete, focusing on specific functions within the overall corporate structure.
Importance of Business Planning
A business plan is a very important and strategic tool for entrepreneurs. A good business plan not
only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed,
but it also helps them to achieve short-term and long-term objectives.
4 Ps of Business Planning
The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and
promotion—used when marketing a product or service. Typically, successful marketers and businesses
consider the four Ps when creating marketing plans and strategies to effectively market to their target
audience.

Steps in Business Planning

1. Step 1: Conducting a SWOT Analysis.
2. Step 2: Defining Your Business Objectives.
3. Step 3: Conducting Market Research.
4. Step 4: Identifying Your Target Audience.
5. Step 5: Developing a Marketing Plan.
6. Step 6: Creating a Financial Plan.
7. Step 7: Writing Your Business Plan.
Resource Mobilisation
Resource mobilization refers to all activities involved in securing new and additional resources for your
organization. It also involves making better use of, and maximizing, existing resources. Resource
mobilization is often referred to as 'New Business Development'.

8
The term resource mobilization refers to all activities undertaken by an organization to secure new and
additional financial, human and material resources to advance its mission.
The process of resource mobilization entails three components-resources, resources providers and
resource mobilization mechanisms.
Execution and Implementation
Implementation is the process of putting a project plan into action to produce the deliverables, otherwise
known as the products or services, for clients or stakeholders. The implementation phase
involves putting the project plan into action.
Implementation and execution are often used interchangeably in many organisations. However, they
have two very different connotations especially in terms of strategy.
If a strategy is implemented then it implies that it was not in the business previously i.e. either the
business didn’t have a strategy or this is a new strategy. Also, it implies that there will be a ‘start date’
and ‘end date’ of the implementation. That is, at some point it will be in and working.
Execution on the other hand implies task level actions and decisions. There are many opportunities every
day or every hour for an employee to execute the strategy, all staff are involved and responsible for the
outcome and there is no end date – we never stop executing our strategy (even though it may change
over time).
Entrepreneurial competencies
Entrepreneurial competencies refer to the specific knowledge, skills, and abilities that entrepreneurs
need to effectively start, manage, and grow a business. These competencies are essential for
entrepreneurial success and can be developed through education, training, and hands-on experience. It
is a series of skills enabling an individual to enhance a concept, idea, or product, take risks, and
demonstrate initiative and leadership in order to complete a project.
1. Risk Taking and Decision Making
Risk is the possibility of something bad happening. implies future uncertainty about deviation from
expected earnings or expected outcome.
Risk taking in entrepreneurship refers to the willingness and ability of entrepreneurs to make decisions
and take actions that involve uncertainty, potential loss, and the possibility of failure. Risk-taking is
defined as trying out something new when the results are largely unknown.
Entrepreneurial decision-making can be defined as choice that entrepreneurs make when seeking to
exploit identified chances for market success.
Those with less propensity to take risks tend to work more in groups, purchase more information, and/or
spend more time making individual decisions.
2. Vision and Goal Setting

9
A business vision is the goal for what the business will be in the future. It will align with the business
goals and aspirations. The business vision is the formal way of communicating the business goals and
commitments to others.
Entrepreneurial vision imagines a future, whereas goals focus on a desired outcome. Although vision is
key to creating the future that you want for yourself and your business, goals are important to help you
realize the steps needed to make that vision a reality.
3. Adaptability and Change Management
Adaptability refers to the capacity to adjust one's approach and strategies in response to evolving
circumstances. In entrepreneurship, this means being open to change, willing to experiment with new
ideas, and able to modify business models to stay relevant. It also means being willing to make changes
to your strategy when necessary, to stay current and competitive in your industry.
Change management is a way to guide organizations through times of disruption or growth. Change
management is a systematic approach to dealing with the transition or transformation of an organization's
goals, processes and technologies.
Types of Change Management
 Structural – This type of change management focuses on changing the organizational structure
of the business. ...
 Process – This type of change management focuses on changing the way work is done. ...
 Cultural – This type of change management focuses on changing the culture of the organization.

10