ED - Unit II

Entrepreneurship
Development
BBA – V Sem
UNIT - II
Entrepreneurial Environment
Political, Economic, Social, Cultural,
Technological, Legal, Environmental, etc.
Socio-Economic Environment
1. Economic
2. Non-Economic
i. Social
ii. Psychological
iii. Political
Environment Analysis
P - Political S - Strengths
E - Economical W - Weaknesses
S - Social O - Opportunities
T – Technological T - Threats
L – Legal
E - Environmental
Importance of Environment Analysis
• Identify opportunities for growth and

expansion.
• Anticipate potential threats.
• Develop effective marketing strategies.
• Make informed decisions about
resources.
• Manage risks and uncertainties.
Approaches to Environment
Analysis
• Systematic Approach – Time to time
collection and analysis of data.
• Adhoc Approach – Special surveys on
specific aspects of the environment.
• Processed Form Approach – Use the
data provided by other sources.
Economic Factors
• Economic Conditions
• Capital
• Labour
• Raw Materials
• Market
• Infrastructure
Social Factors
• Legitimacy of Entrepreneurship - Attitude
of Society
• Lifestyle of self and society
• Culture
• Education
• Social Mobility – Change in Social Status
• Marginality
• Security
Psychological Factors
• Need Achievement
• Motives
• Recognition
• Authority
• Withdrawal of Status Respect – Not
satisfied or disrespected in current
profession.
Political Factors
• Stability of the Govt.
• Govt. Support and Spending
• Regulatory Policies
• Tax Policies
Entrepreneurial motivation
• Motivation is the willingness to expand energy
to achieve a goal or a reward.
• Entrepreneurial motivation refers to the inner
drive and passion that propels an individual to
start and run a business. It's the underlying
force that directs and sustains entrepreneurial
achievements.
Factors
Internal Factors
• Desire to do something new
• Sense of control and independence
• Need for Achievement
• Education
• Passion
• Personal Growth
• Enterprising Attitude
• Occupational Background and Experience
External Factors
• Raw Material
• Labor
• Govt. Support
• Market - Demand for the product
• Support from big established businesses
• Economic Condition
Characteristics/Nature
• Internal feeling • Dynamic
• Energetic force • Individualistic
• Behaviors • Complex process
• Motives come and go
• Influenced by the
environment
• Goal oriented
• Positive and negative
• Totality
Importance
• Improved morale
• Creativity
• Improves efficiency and productivity
• Increases chances of success
• Builds strong relations
• Stable workforce
• Job satisfaction
• Better utilization of resources
• Improved goodwill
• Quality Orientation
Abraham Maslow’s Hierarchy of Need Theory
Entrepreneurial Competencies
• Competency is underlying characteristic
of a person which leads to his/her
effective or superior performance in any
job. – Richard E Boyatzis
• Combination of Knowledge, Skills and
Attributes/Motives.
• Entrepreneurs are not born, they are
made.
Competencies
listed by EDI Study: • Good planner
• Initiative • Problem Solver
• Opportunity Seeker • Self-confident
• Consistency • Assertive
• Information Seeker • Convincing
• Emphasizes Quality • Leadership
• Commitment to • Well-wisher of
work employees
• Efficient • Effective Strategist
Competency Development
1. Competency Identification
2. Competency Assessment
3. Competency Mapping
4. Development Intervention
EDPs
Objectives:
• To promote entrepreneurship
• To identify, train potential entrepreneurs
• To develop knowledge and skills
• Enhance entrepreneurial quality and
motivation
• To understand process of starting
business
• To select project and products
• To help with environment analysis
• To provide follow-up assistance
• To train entrepreneurs to understand threats
and opportunities.
• To train entrepreneurs on decision-making
• To teach legal and regulatory formalities
• To create awareness about various schemes
and initiatives by the Govt.
• To provide guidance and hand-holding
Need for EDPs
• Remove unemployment and poverty
• Promotion of SSIs
• To promote innovation
• Industrial Development
• To eliminate monopoly
• Social and Economic Development of people
and nation
• Building confidence and motivation
• Consciousness about Entrepreneurship
• Quality of Life
EDP – Course Content
1. Introduction to Entrepreneurship
2. Motivation Training
3. Managerial Skills
4. Support systems and procedures
5. Project Feasibility Study
6. Business Plan Preparation
7. Exposure Visit to relevant industries
Phases of EDPs
1. Pre-Training Phase
2. Training Phase
3. Post-Training Phase

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Entrepreneurship

• Identify opportunities for growth and

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