Entrepreneurship development is the process of enhancing 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 the entrepreneurship development program 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.
Why Seek an Enterprise?
Entrepreneur seeks an enterprise because it results in creating goods and services which bring happiness, joy, comfort, and peace. Every human being looks for a world full of happiness, peace, etc.
In order to bring this, the entrepreneur looks for opportunities for converting challenges into comfort. Setting up an enterprise is setting up a venture, which brings about change.
Need and Importance of Entrepreneurship
Entrepreneurship is important for national growth and social development. Most of the developing countries have a history of long years of foreign domination.
They have attained freedom recently. The most common problem they are facing is to conserve the outflow of Limited National wealth and fulfilling the demand for consumer goods and services by locally producing them.
They are also facing the problem of foreign exchange. These countries need to import capital goods and Technology and the major source of foreign exchange is export.
The present conditions demand developing countries to:
- Produce import substitute goods to stop outflow of national wealth.
- Produce more and more consumer goods and services to meet the increasing demand of these goods locally.
- Produce goods for export purpose to earn more and more foreign exchange.
Need for entrepreneurship can be made more clear from the following points:
1. Lifeline of a nation: Entrepreneurship is a yardstick to measure the development of any country as no Country can prosper and grow without the development of entrepreneurship. We can see that in U.S., U.K., and other developed countries, there are well-developed and well-established Enterprises. So every Nation tries to increase its trade by having more Enterprises.
2. Provide innovation: An entrepreneur is an innovator who tries new methods of production, new technology, new ways of marketing, etc. He develops new business ideas and puts them into action to enhance the process of economic development.
3. Growth of economy: The entrepreneur adapts to changes as changes take place in the environment. The changes adopted by entrepreneurs in enterprises even bring changes in the society and economy. The latest technology used by Enterprises not only brings growth in the Enterprises but also brings growth of the economy at large.
4. Increased profits: An entrepreneur always tries to minimize costs. He always tries to get optimum utilization of resources. The reduction of cost and increase in efficiency always result in an increase in profit.
5. Employment opportunities: Entrepreneurship not only provides the scope for self-employment but also offers employment to a large number of people as in the case of successful Enterprises. Growth in entrepreneurial activities leads to more and more employment.
6. Social benefits: Entrepreneurs always try to adopt the latest technology and raise the standard of living by providing good quality products and services at the lowest cost. By setting up enterprises in backward areas, they try to bring balanced regional growth. By making optimum utilization of resources, they save the resources of society.
Process of Entrepreneurship
Entrepreneurs have to follow a sequence of steps before starting an enterprise. Following is a process of entrepreneurship:
1. Self-discovery: Under this step, the entrepreneur assesses what are his strengths and weaknesses, what he enjoys doing, and his work experience.
Any new process begins with fresh ideas objective, where the entrepreneur recognizes and analyzes business possibilities.
The analyzing of opportunities is a risky task and an entrepreneur looks out for input from other persons, including channel partners, employees, technical people, consumers, etc. to reach an ideal business opportunity.
2. Identifying opportunities: Under this step, he tries to find out the need, want,s and problem so that he can get an opportunity to overcome the problems and fulfill the need.
3. Generating and evaluating ideas: Through various measures such as discussion, brainstorming, creativity, and his own experiences, he tries to develop new ideas to overcome problems and meet the expectation of customers. The evolution of an opportunity can be done by asking several questions to oneself.
4. Planning: Under this step, the entrepreneur conducts research, make business plan and strategies. After the identification of an opportunity, an entrepreneur has to build a complete business plan.
It is the most important step for new business as it sets a standard and the assessment criteria and sees if a company is working towards the set goals.
5. Raising start-up capital: By using a business plan, the entrepreneur tries to attract venture capitalists and partners.
6. Start-up: Under this step, the entrepreneur launches his expertise and tries to develop more customers. He also makes changes as per changes in the environment.
7. Growth: Entrepreneur tries to expand and grow the enterprise.
8. Harvest: This means selling the business and harvesting the reward. Many entrepreneurs sell their existing businesses and start new ventures.
The last step in the process is harvesting where an entrepreneur determines the future growth and development of the business.
Here, real-time development is compared with the projected growth, and then the business security or the extension is initiated accordingly.
Startup INDIA scheme
Startup India is an initiative of the Government of India. The campaign was first announced by Prime Minister Mr. Narendra Modi in his speech on 15 August 2015.
Startup India is an action plan to develop an ecosystem to promote and nurture Entrepreneurship across the country. The government is offering various Bank financing schemes to promote startups.
Meaning of Start-up
A startup is a business enterprise in the form of a private limited company, partnership, limited liability partnership, or sole proprietor, registered in India, which was started less than five years ago and has an annual turnover of fewer than 25 crores.
To be eligible for a startup, the enterprise should not have formed by splitting up or reconstruction and its turnover should not have exceeded rupees 25 crores since its existence.