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 programmes 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. As a result, 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 entrepreneurs.

Objectives of Entrepreneurship Development Programme

The objective of Entrepreneurship Development programme are listed down here - 

1. To Develop Entrepreneurial qualities and habits among the upcoming youth via the help of proper training and expert counselling.

2. To search and identify the best existing and upcoming business ideas and opportunities.

3. Motivating and guiding various individuals for launching their own new businesses and startups. Thus, becoming a contributor to the economy.

4. To reach risk mitigation to the youth of the nation.

5. Provide and conduct various programmes to spread the idea of Entrepreneurship in rural areas and villages.

6. To generate employment and self-employment with the help of Entrepreneurship and the growth of small scale businesses.

7. 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 programme to help individuals –

1. Learn about the Business Idea

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.

2. Thorough 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

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

3. 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.

4. 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. 

Especially the marketing team, as it is the most important aspect for the growth of businesses nowadays. Special care is also needed to find the HR person, who will manage the entire human resource of the company.

5. 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.

6. 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.

Entrepreneurship Development and Start up India

India has the world's highest number of start-ups and has had great success attracting large amounts of foreign direct investment (FDI). Furthermore, the government is actively removing administrative barriers and bottlenecks to promote entrepreneurship growth. To support the development of an entrepreneurial culture, the subject has been integrated into the curriculum at both the undergraduate and postgraduate levels across disciplines.

Indian Entrepreneurship Development Challenges

• Capital: India has a very low per capita income compared to other countries. The allocation of resources to futile endeavours is the primary cause of this. Youth have limited access to technical and vocational education institutions. Students' broad education in school is insufficient to support entrepreneurs.

• Motivation Centres: There aren't many training facilities, and the ones that exist are mostly in cities.

• Low Mood: Typically, children are advised to pursue lucrative careers to secure their futures. As a result, there is little desire to start a business.

• Competition: Major corporations dominate both domestic and international markets. This presents a significant challenge for business owners. The government incentivises public firms to operate in the public sector.

• Corruption: Bureaucracy, delays, and incompetent government agencies stifle the nation's entrepreneurship.

• Backward Thinking: Uncertainty about innovative ideas has led to hesitancy and the rise of anti-progressive thinking.

Case Study - Entrepreneurship Development and Start up India

The Adani Group, founded by Gautam Adani, is used as a case study to demonstrate the concept of entrepreneurship development. Gautam Adani moved to Mumbai from his hometown of Ahmedabad at a young age. When he was 18, he left his family and travelled to Mumbai. He began working as a diamond sorter for Mahindra Brothers. After two years of working for Mahindra Brothers and gaining sufficient knowledge, he established his own diamond brokerage firm. He made a sizable profit of roughly ten lakh rupees in his first year of business, which was a sizable sum in the 1980s.

In the latter half of the 1980s, he founded Adani Enterprises. He specialised in agricultural and energy-related products. Adani Group and Cargill, an American multinational corporation, have joined forces to export salt from Gujarat. As time passed, the company grew, and the partnership ended. Adani Group now owns nearly 5,000 acres of land as a result of this arrangement. The policy regulations enacted in 1991 allowed for several improvements, which boosted and supported Indian businesses and helped the Adani Group generate enormous profits.

A choice between a seaport in Gujarat that must be lent to private businesses. A decision was made in 1993. However, the Adani Group later received this deal. The group worked hard to develop the port to the point where it can now handle approximately 8 crore tonnes of cargo annually and is considered India's largest private-sector port. Adani imported coal as a result of projections it made about future energy demand. As a result, Adani decided to enter the energy and electricity industries.

Adani Power Ltd. was established along these lines. And as of now, it is one of the largest privately owned thermal power companies, with a capacity of approximately 4620 MW. According to the most recent data, Gautam Adani is the 11th richest person in India, with assets worth $40 billion USD and a workforce of over 60,500 people.

Conclusion

Running a business necessitates a great deal of dedication, careful planning, and attention to detail. Your ideas can be properly coordinated to ensure the company's success. There are various types of businesses. Some are known as start-ups, while others are known as entrepreneurs. It is critical to understand that not all entrepreneurship is startup-related, and there are several key differences between the two. This distinction must be well understood for a business to be successful.