Entrepreneurship Development Process

Entrepreneurship is the dynamic process of developing something new with value by devoting the required time and effort, taking up financial risks and relishing the monetary rewards associated with it. This product may or may not be new, but the entrepreneur has infused its value. He/she has done it by using the skills and resources effectively and efficiently.

An entrepreneur is a person who is responsible for an entrepreneurship venture. Even though it is widely believed that entrepreneurs are born with the necessary skills; however, it is not entirely true, anyone can learn how to become one by undergoing an entrepreneurship development process.

What is Entrepreneurship Development?

Entrepreneurship development is the process of enhancing the entrepreneurial knowledge and skills via structured training programmes. It deals with the study of entrepreneurial behaviour, dynamics of business, and its development and expansion. The objectives of entrepreneurship development programme are to increase the knowledge and skill of existing entrepreneurs and encouraging 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 expand 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. As a result of it, the economy of a nation also improves. Moreover, it enables entrepreneurs to develop and manage their business better along with the financial insecurities associated with it.  

An increase in the rate of development of entrepreneurship ventures alleviates the problem of unemployment in an economy. Additionally, it decreases the issue of stagnation and increases competition in the market. A process like this aims to develop the competence of an entrepreneur and his/her venture. Therefore, it enhances entrepreneurial objectives and encourages more people to become an entrepreneur.

Entrepreneurship Development Process

Every entrepreneurship development process comprises several steps. Here are the vital steps of building an effective development programme to help individuals –

  1. Learn about the Business Idea

It is the starting processes 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. Thorough Evaluation

Before moving forward, entrepreneurs need to evaluate a business idea or opportunity thoroughly. An entrepreneur can do it by himself/herself by considering the following points –

  • Whether an opportunity or idea is worth investing or not.

  • What are the requirements for this product?

  • Is it feasible or not based on its cost?

  • What are the competitive advantages?

  • Associated risks

  • Whether it coincides with the company’s goal or not

Additionally, an entrepreneur must evaluate his/her skills and if he/she can manage such it.

  1. 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 entrepreneurship development process. Such a plan acts as the base of a venture as well as the benchmark. It shows whether the business in 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.

  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 organisation. 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 programme 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 everything is positive and on track, then an entrepreneur decides to invest in expansion.

In a nutshell, an entrepreneurship development process is about assisting individuals in improving their skill via training. Thus, it aids such individuals to make better decisions in their existing ventures or encourages them to start a new one. Moreover, it is an important topic for commerce students. Additionally, students who want to know more on other topics of this subject can visit the official website of Vedantu. 

FAQ (Frequently Asked Questions)

1. What is Entrepreneurship Development?

Entrepreneurship development is a process that enables individuals to learn more about building a business from scratch. Additionally, it aids the existing entrepreneurs to evaluate their skill and knowledge and pick up on new techniques and ideas. It is a comprehensive training programme. It covers aspects like entrepreneurial manners, dynamics of a business, and its development and expansion.

2. What is the need for an Entrepreneurship Development Programme?

The concept and need of entrepreneurship development programme are important in every economy. It aids existing entrepreneurs and aspiring ones to develop and manage a successful venture. A comprehensive training program such as this covers various aspects of building and maintaining a business. The need for such programmes is to encourage entrepreneurship in an economy. Doing so reduces the stagnation in the market and increase competition. Furthermore, it generates employment in an economy.

3. What are the Stages of an Entrepreneurship Development Programme?

The stages of an entrepreneurship development programme are, learning about the business idea, its evaluation, forming a plan, accumulating resources, putting a proper structure in place, and planning the future.