Amina Mahfooz

Entrepreneurial Process
The process through which a new venture is created by an entrepreneur is called an entrepreneurial process.

Phases of Entrepreneurial Process

Identification and evaluation of the opportunities

Development of business plan Determination of the required resources Management of the resulting enterprise.

Identify & Evaluate the Opportunity

The process by which an entrepreneur comes up with the opportunity for a new venture.
This is a difficult task. Most good business opportunities do not suddenly appear, but rather result from an entrepreneurs alertness to possibilities. Opportunity analysis is not a business plan just one method to evaluate opportunity. It is shorter than a business plan, focus on the opportunity, not the entire venture; and provide the basis for making decision of whether or not to act on the opportunity.

Contd
An opportunity evaluation plan includes the following

description of the product/ service assessment of opportunity

assessment of the entrepreneur and the team

resources needed to translate the opportunity into a viable business venture

Contd
1.Sources Of Ideas:
Most entrepreneurs do not have formal mechanisms for identifying business opportunities, some sources are consumers and business associates, members of the distribution system and technical people. Often consumers are the best source of ideas for a new venture.

Contd
2. Opportunities Assessment When the opportunity is identified by using any source, each opportunity must be carefully screened and evaluated. The evaluation is the most critical element of the entrepreneurial process, as it allows the entrepreneur to assess whether the specific product or service has the returns needed compared to the resources required.

Contd
3. Creation and Length of Opportunity The market size & length of the opportunities are primary basis for determining the risks and rewards. 4. Risks & Returns of Opportunity The risk reflect the market, competition, technology and amount of capital involved. The methodology for evaluating risks and rewards indicate that an opportunity offers neither financial nor personal reward commensurate with the risks involved.

Contd
5. Opportunity Vs Personal Skills & goals The opportunity must fit the personal skills and goals of the entrepreneur. It is particularly important that the entrepreneur be able to put forth the necessary time and effort required to make the venture succeed.

Develop A Business Plan

Business Plan is the description of the future direction of the business. a good business plan must be developed in order to exploit the defined opportunity. This is highly time consuming phase of the entrepreneurial process. A good business plan is essential to developing the opportunity and determining the resources required, obtaining the resources, and successfully managing the resulting venture.

Format of a Business plan

Title page Table of Contents Executive Summary Major Section --- Description of business --- Description of industry --- Technology plan --- Marketing Plan --- Financial Plan --- Production plan

Format of a Business plan

--- Organization Plan --- Operational plan --- Summary Appendices (Exhibits)

Determining The Resources Required

The resources needed for addressing the opportunity must also be determined. This has four stages. Determine resources needed

Determine the existing resources

Identify resource gaps and available suppliers Develop access to needed resources

Manage the Enterprise

After resources are acquired, the entrepreneur must use them to implement the business plan. The operational problems of the growing enterprise must also be examined. The following points are to be and should be considered. Develop management style Understand key variables for success. Identify problems & potential problems Implement control system Develop growth strategy

THANK YOU