PART 1: ENTERPRENEURSHIP PROCESS

1. Nature and importance of entrepreneurship in Ne !ea"and

Entrepreneurship is the spirit of person. It is a #ua"it$ hich ma$ %e inherent or de&e"oped . for the economic de&e"opment of a countr$ ' entrepreneuria" s(i"" needs to %e de&e"oped. entrepreneurship p"a$s a &er$ important ro"e in terms of :)eneration of emp"o$ment opportunities.Ensurin* %a"anced economic de&e"opment.

.entrepreneurship +the process of p"annin*' or*ani,in*' operatin*' and assumin* the ris( of a %usiness.

.entrepreneur+ someone ho en*a*es in entrepreneurship-.THE The entrepreneuria" process in&o"&es findin*' e&a"uatin*' and de&e"opin* an opportunit$ %$ o&ercomin* the stron* forces that resist the creation of somethin* ne . Phase 1+++++identif$ and e&a"uate the opportunit$ 1.opporunti$ identification ++++ most *ood %usiness opportunit$ resu"t from AN .EIN) A/ERT TO POSSI.I/ITIES. 0.EACH OPPORUNIT1 2UST .E CARE3U///1 SCREENE4 AN4 E5A/UATE4 6THIS IS THE 2OST CRITICA/ E/E2ENT O3 THE ENTREPRENEURIA/ PROCESS. 7-..The mar(et si,e and the "en*th of the indo of opportunit$ are the primari"$ %ases for determinin* ris(sand re ards 8-.The opportunit$ must fit the persona" s(i""s and *oa"s of the entrepreneur.

9-Opportunit$ assessment shou"d focus on the opportunit$ and pro&ide the %asis to ma(e the decision Phase 0 de&e"op a %usiness p"an: 1. A *ood %usiness p"an must %e de&e"oped in order to e:p"oit the opportunit$ defined. 0. This p"an is essentia" to de&e"opin* the opportunit$ and in determinin* the resources re#uired' o%tainin* those resources' and successfu""$ mana*in* the &enture. PHASE 7 4etermine the Resources Re#uired. 1. Assessin* the resources needed starts ith an appraisa" of the entrepreneur;s present resources. 0.An$ resources that are critica" need to %e differentiated from those that are <ust he"pfu". 7. Care must %e ta(en not to underestimate the amount and &ariet$ of resources needed. 8. Ac#uirin* needed resources' hi"e *i&in* up as "itt"e contro" as possi%"e' is difficu"t. PHASE 8 2ana*e the Enterprise 1. The entrepreneur must use them to imp"ement the %usiness p"an. 0.This in&o"&es imp"ementin* a mana*ement structure' as e"" as identif$in* a contro" s$stem.

Adam smith descri%ed an entrepreneur as a person ho on"$ pro&ides capita" ' ithout ta(in* acti&e part in the "eadin* ro"e in enterprise Entrepreneur :The term entrepreneur is a "oan ord from 3rench' and is common"$ used to descri%e an indi&idua" ho or*ani,es and operates a %usiness or %usinesses' ta(in* on financia" ris( to do

ENTREPRENEURIA/ PERSONA/IT1 SE/3 .E/IE3 PASSION 5ISION RIS= TA=IN) PERSISTENCES AN4 HAR4 >OR= /EA4ERSHIP

Intraprenerusia" Persona"it$+ are emp"o$ees ho or( in %usiness in an entrepreneuria" capacit$' creatin* inno&ati&e ne products and processes for or*ani,ation-. .?An Intrapreneur is the person ho focuses on inno&ation and creati&it$ and hotransforms a dream or an idea into a profita%"e &enture' %$ operatin* ithin theor*ani,ationa" en&ironment. Thus' Intrapreneurs are Inside entrepreneurs ho fo""o theirfounder;s e:amp"e@ %$ /o%r&ed nationAs %usines Intrapreneur;s are ?dreamers ho do@' those ho ta(e hands+on responsi%i"it$ for creatin* inno&ation of an$ (ind ithin an or*ani,ation. +)ifford PinchotThe intrapreneur is an essentia" in*redient in e&er$ inno&ation. +4r. >i""iam Souder ChARACTERSTICS O3 The$ or( to minimi,e ris( in order to rea"i,e their *oa"s.B The$ are the dreamer of a ne pro<ect and the$ ha&e a a%i"it$ to e:ecute it.B The$ can find their a$ from the idea to actua"i,ation.B The$ find a read$ source of resources ithin the or*ani,ation. +funds 6 manpo er 6 %rand The$ ha&e &ision and the coura*e to rea"ise it. The$ can ima*ine hat %usiness and or*anisationa" rea"ities i"" fo""o from the a$ customers respond to their inno&ationsA the$ can find their a$ from the idea to actua"isation

Ne !ea"and is (no n as one of the most entrepreneuria" nations in the or"d. Accordin* to the Inde: of Economic 3reedom' it is the third most open econom$ in hich to do %usiness. 1et despite these conditions it has not *ained *round fast enou*h in the "ea*ue ta%"es that measure economic ea"th. Therefore' the Ne !ea"and )o&ernment is acti&e"$ or(in* to pro&ide an en&ironment that ena%"es internationa" in&estors to %rin*' or esta%"ish' operations ith Ne !ea"and companies to their %est ad&anta*e. In the >or"d Competiti&eness 1ear%oo( 0CC0' Ne !ea"and ran(ed 9th ahead of Austra"ia' Canada' the US and the U=. DD per cent of a"" %usinesses use computers in Ne !ea"and' compared to D8 per cent in Austra"ia and D1 per cent in Canada. EInformation Techno"o*$ Use in Ne !ea"and 0CC1' Statistics Ne !ea"and re"eased 0CC0F.

0.

The Entrepreneuria" process

7. 8.

Entrepreneuria" persona"it$ Intrapreneuria" persona"it$

PART 0: 4E5E/OP2ENT O3 THE .USINESS P/AN 1. 4escri%in* the %usiness profi"e aF Histor$ of the industr$G %usiness se"ected %F Industr$ characteristics and trends cF Name of the %usiness dF Constitution of the firm eF /ocation fF Products and ser&ices e:istin* *F 2ission and 5ision of the %usiness hF .usiness ana"$sis: (e$ performance indicators and (e$ ratios

0.
0F 7F

4e&e"opin* the mar(etin* p"an

aF 2ar(et Research and ana"$sis

1F 2ar(et Si,e 2ar(et share on sa"es' profit and %ud*ets Customer Ana"$sis

8F cF 9F IF

aF Secondar$ Research %F Primar$ research 6 o%ser&ation ' Sur&e$ and inter&ie s'#uestiionnaries' focus *roups Competitor ana"$sis aF PorterH ana"$sis %F 4irect and indirect competitors Current competiti&e strate*ies A&ai"a%"e distri%ution structure' p"us attitudes and practices =e$ en&ironmenta" and e:o*enous factors

%F 2ar(etin* p"an
aF Tar*et mar(et %F Positionin* cF dF 7. 2ar(etin* mi: 2ar(etin* %ud*ets 4e&e"opin* the or*ani,ation p"an 6 Human resources aF Or*ani,ation structure %F Emp"o$ee recruitment cF dF Emp"o$ee moti&ation Emp"o$ee reention eF Consu"tants' ad&isors and other (e$ personne" 8. 4e&e"opin* the operation p"an aF Product manufacturin* decisions %F The p"ant 6 desi*n' machiner$' capacit$' area' an$ specia" re#uirements or "icenses cF /ocation 6 cost' customer %ase' a&ai"a%i"t$ of "a%or' a&ai"a%i"it$ of materia"s' a&ai"a%i"it$ of transport

dF

Operatin* staffin* eF 2ateria"G In&entor$ mana*ement fF Operationa" contro"s 4e&e"opin* the financia" p"an aF 3inancia" position' and income and e:penditure %F .rea( e&en ana"$sis Sa"es forecast and cash f"o ana"$sis E:pense %ud*ets %$ cate*or$ of acti&it$ eF Contri%ution to profit' ith potentia" pro forma income ststement

9.

cF dF

I.

Ris( Ana"$sis

Consider at "east three ris(s from the fo""o in* as app"ica%"e to the %usiness strate*ic ris(' Operationa" ris(' 3inancia" ris(' 2ar(et ris(' Credit ris(' Customer ris(' Supp"$ chain ris(' Product ris( ' Securit$ ris(' Information techno"o*$ ris( and Pro<ect ris( J. 4e&e"opin* tactica" p"ans EShort terms p"ans to achie&e the p"ans and strate*iesF

D. K. 1C. 11. 10.

Contro" 2echanisms Chrono"o*ica" Schedu"e of acti&ities Conc"usion References Appendi:

17. THE NATURE AN4 I2PORTANCE O3 ENTREPRENEURSHIP

/EARNIN) O.LECTI5ES 1. To introduce the concept of entrepreneurship and its historica" de&e"opment. 0. To e:p"ain the entrepreneuria" process. 7. To identif$ the %asic t$pes of start+up &entures. 8. To e:p"ain the ro"e of entrepreneurship in economic de&e"opment. 9. To discuss ethics and entrepreneurship.

.ein* an entrepreneur and creatin* a ne %usiness &enture is ana"o*ous to raisin* chi"drenMit ta(es more time and effort than $ou e&er ima*ine and it is e:treme"$ difficu"t and painfu" to *et out of the situation. Than( *oodness $ou cannot easi"$ di&orce $ourse"f from either situation. >hen peop"e as( me if I "i(e %ein* in %usiness' I usua""$ respond: On da$s hen there are more sa"es than pro%"ems' I "o&e itA on da$s hen there are more pro%"ems than sa"es' I onder h$ I do it. .asica""$' I am in %usiness %ecause it *i&es me a *ood fee"in* a%out m$se"f. 1ou "earn a "ot a%out $our capa%i"ities %$ puttin* $ourse"f on the "ine. Runnin* a successfu" %usiness is not on"$ a financia" ris(' it is an emotiona" ris( as e"". I *et a "ot of satisfaction from ha&in* dared itMdone itM and %een successfu". Research indicates that indi&idua"s ho stud$ entrepreneurship are three to four times more "i(e"$ to start their o n %usiness' and that the$ i"" earn 0C to 7C percent more than students stud$in* in other fie"ds. To understand the fie"d %etter' it is important to "earn a%out the nature and de&e"opment of entrepreneurship' the entrepreneuria" process' and the ro"e of entrepreneurship in the economic de&e"opment of a countr$.

NATURE AN4 4E5E/OP2ENT O3 ENTREPRENEURSHIP >ho is an entrepreneurN >hat is entrepreneurshipN >hat is an entrepreneuria" processN The de&e"opment of the theor$ of entrepreneurship para""e"s to a *reat e:tent the de&e"opment of the term itse"f. The ord entrepreneur is 3rench and' "itera""$ trans"ated' means ?%et een+ta(er@ or ?*o+ %et een.@ entrepreneur Indi&idua" ho ta(es ris(s and starts somethin* ne 2idd"e A*es In the 2idd"e A*es' the term entrepreneur as used to descri%e %oth an actor and a person ho mana*ed "ar*e production pro<ects. In such "ar*e production pro<ects' this indi&idua" did not ta(e an$ ris(s' %ut mere"$ mana*ed the pro<ect usin* the resources pro&ided' usua""$ %$ the *o&ernment of the countr$. A t$pica" entrepreneur in the 2idd"e A*es as the c"ericMthe person in char*e of *reat architectura" or(s' such as cast"es and fortifications' pu%"ic %ui"din*s' a%%e$s' and cathedra"s. 1Jth Centur$ The reemer*ent connection of ris( ith entrepreneurship de&e"oped in the 1Jth centur$' ith an entrepreneur %ein* a person ho entered into a contractua" arran*ement ith the *o&ernment to perform a ser&ice or to supp"$ stipu"ated products. Since the contract price as fi:ed' an$ resu"tin* profits or "osses ere the entrepreneur;s

1Dth Centur$ In the 1Dth centur$' the person ith capita" as differentiated from the one ho needed capita". In other ords' the entrepreneur as distin*uished from the capita" pro&ider Ethe present+da$ &enture capita"istF. One reason for this differentiation as the industria"i,ation occurrin* throu*hout the or"d. 2an$ of the in&entions de&e"oped durin* this time ere reactions to the chan*in* or"d' as as the case ith the in&entions of E"i >hitne$ and Thomas Edison. .oth >hitne$ and Edison ere de&e"opin* ne techno"o*ies and ere una%"e to finance their in&entions themse"&es. >hereas >hitne$ financed his cotton *in ith e:propriated .ritish cro n propert$' Edison raised capita" from pri&ate sources to de&e"op and e:periment in the fie"ds of e"ectricit$ and chemistr$. .oth Edison and >hitne$ ere capita" users EentrepreneursF' not pro&iders E&enture capita"istsF. A &enture capita"ist is a professiona" mone$ mana*er ho ma(es ris( in&estments from a poo" of e#uit$ capita" to o%tain a hi*h rate of return on the in&estments. 1Kth and 0Cth Centuries In the "ate 1Kth and ear"$ 0Cth centuries' entrepreneurs ere fre#uent"$ not distin*uished from mana*ers and ere &ie ed most"$ from an economic perspecti&e: .rief"$ stated' the entrepreneur or*ani,es and operates an enterprise for persona" *ain. He pa$s current prices for the materia"s consumed in the %usiness' for the use of the "and' for the persona" ser&ices he emp"o$s' and for the capita" he re#uires. He contri%utes his o n initiati&e' s(i""' and in*enuit$ in p"annin*' or*ani,in*' and administerin* the enterprise. He a"so assumes the chance of "oss and *ain conse#uent to unforeseen and uncontro""a%"e circumstances. The net residue of the annua" receipts of the enterprise after a"" costs ha&e %een paid' he retains for himse"f. entrepreneur as an inno&ator An indi&idua" de&e"opin* somethin* uni#ue In the midd"e of the 0Cth centur$' the notion of an entrepreneur as an inno&ator as esta%"ished: The function of the entrepreneur is to reform or re&o"utioni,e the pattern of production %$ e:p"oitin* an in&ention or' more *enera""$' an untried techno"o*ica" method of producin* a ne commodit$ or producin* an o"d one in a ne a$' openin* a ne source of supp"$ of materia"s or a ne out"et for products' %$ or*ani,in* a ne industr$.

4E3INITION O3 ENTREPRENEUR TO4A1 The concept of an entrepreneur is further refined hen princip"es and terms from a %usiness' mana*eria"' and persona" perspecti&e are considered. In particu"ar' the concept of entrepreneurship from a persona" perspecti&e has %een thorou*h"$ e:p"ored in this centur$. This e:p"oration is ref"ected in the fo""o in* three definitions of an entrepreneur: In a"most a"" of the definitions of entrepreneurship' there is a*reement that e are ta"(in* a%out a (ind of %eha&ior that inc"udes: E1F initiati&e ta(in*' E0F the or*ani,in* and reor*ani,in* of socia" and economic mechanisms to turn resources and situations to practica" account' E7F the acceptance of ris( or fai"ure. To an economist' an entrepreneur is one ho %rin*s resources' "a%or' materia"s' and other assets into com%inations that ma(e their &a"ue *reater than %efore' and a"so one ho introduces chan*es' inno&ations' and a ne order. To a ps$cho"o*ist' such a person is t$pica""$ dri&en %$ certain forcesMthe need to o%tain or attain somethin*' to e:periment' to accomp"ish' or perhaps to escape the authorit$ of others. To one %usinessman' an entrepreneur appears as a threat' an a**ressi&e competitor' hereas to another %usinessman the same entrepreneur ma$ %e an a""$' a source of supp"$' a customer' or someone ho creates ea"th for others' as e"" as finds %etter a$s to uti"i,e resources' reduce aste' and produce <o%s others are *"ad to *et. Entrepreneurship is the d$namic process of creatin* incrementa" ea"th. The ea"th is created %$ indi&idua"s ho assume the ma<or ris(s in terms of e#uit$' time' andGor career commitment or pro&ide &a"ue for some product or ser&ice. The product or ser&ice ma$ or ma$ not %e ne or uni#ue' %ut &a"ue must someho %e infused %$ the entrepreneur %$ recei&in* and "ocatin* the necessar$ s(i""s and resources. A"thou*h each of these definitions &ie s the entrepreneur from a s"i*ht"$ different perspecti&e' the$ a"" contain simi"ar notions' such as ne ness' or*ani,in*' creatin*' ea"th' and ris( ta(in*. 1et each definition is some hat restricti&e' since entrepreneurs are found in a"" professionsMeducation' medicine' research' "a ' architecture' en*ineerin*' socia" or(' distri%ution' and the *o&ernment. To inc"ude a"" t$pes of entrepreneuria" %eha&ior' the fo""o in* definition of entrepreneurship i"" %e the foundation:

Entrepreneurship is the process of creatin* somethin* ne ith &a"ue %$ de&otin* the Entrepreneurship is the process of creatin* somethin* ne ith &a"ue %$ de&otin* the necessar$ time and effort' assumin* the accompan$in* financia"' ps$chic' and socia" ris(s' and recei&in* the resu"tin* re ards of monetar$ and persona" satisfaction and independence. This definition stresses four %asic aspects of %ein* an entrepreneur. 3irst' entrepreneurship in&o"&es the creation processM creatin* somethin* ne of &a"ue. The creation has to ha&e &a"ue to the entrepreneur and &a"ue to the audience for hich it is de&e"oped. This audience can %e E1F the mar(et of or*ani,ationa" %u$ers for %usiness inno&ation' E0F the hospita";s administration for a ne admittin* procedure and soft are' E7F prospecti&e students for a ne course or e&en co""e*e of entrepreneurship' or E8F the constituenc$ for a ne ser&ice pro&ided %$ a non+profit a*enc$. Second' entrepreneurship re#uires the de&otion of the necessar$ time and effort. On"$ those *oin* throu*h the entrepreneuria" process appreciate the si*nificant amount of time and effort it ta(es to create somethin* ne and ma(e it operationa". As one ne entrepreneur so succinct"$ stated' ?>hi"e I ma$ ha&e or(ed as man$ hours in the office hi"e I as in industr$' as an entrepreneur I ne&er stopped thin(in* a%out the %usiness.@ The third part of the definition in&o"&es the re ards of %ein* an entrepreneur. The most important of these re ards is independence' fo""o ed %$ persona" satisfaction. 3or profit entrepreneurs' the monetar$ re ard a"so comes into p"a$. 3or some profit entrepreneurs' mone$ %ecomes the indicator of the de*ree of success achie&ed. Assumin* the necessar$ ris(s

is the fina" aspect of entrepreneurship. .ecause action ta(es p"ace o&er time' and the future is un(no a%"e' action is inherent"$ uncertain. This uncertaint$ is further enhanced %$ the no&e"t$ intrinsic to entrepreneuria" actions' such as the creation of ne products' ne ser&ices' ne &entures' and so on. Entrepreneurs must decide to act e&en in the face of uncertaint$ o&er the outcome of that action. Therefore' entrepreneurs respond to' and create' chan*e throu*h their entrepreneuria" actions' here entrepreneuria" action refers to %eha&ior in response to a <ud*menta" decision under uncertaint$ a%out a possi%"e opportunit$ for profit. >e no offer a process perspecti&e of entrepreneuria" action.

ENTREPRENEURS 5ERSUS IN5ENTORS There is a *reat dea" of confusion a%out the nature of an entrepreneur &ersus an in&entor. An in&entor' an indi&idua" ho creates somethin* for the first time' is a hi*h"$ dri&en indi&idua" moti&ated %$ his or her o n or( and persona" ideas. .esides %ein* hi*h"$ creati&e' an in&entor tends to %e e"" educated' ith co""e*e or' most often' post*raduate de*reesA has fami"$' education' and occupationa" e:periences that contri%ute to creati&e de&e"opment and free thin(in*A is a pro%"em so"&er a%"e to reduce comp"e: pro%"ems to simp"e onesA has a &er$ hi*h "e&e" of se"f+confidenceA is i""in* to ta(e ris(sA and has the a%i"it$ to to"erate am%i*uit$ and uncertaint$. A t$pica" in&entor p"aces a hi*h premium on %ein* an achie&er and measures achie&ement %$ the num%er of in&entions de&e"oped and the num%er of patents *ranted. An in&entor is not "i(e"$ to &ie monetar$ %enefits as a measure of success. As indicated in this profi"e' an in&entor differs considera%"$ from an entrepreneur. >hereas an entrepreneur fa""s in "o&e ith the or*ani,ation Ethe ne &entureF and i"" do a"most an$thin* to ensure its sur&i&a" and *ro th' an in&entor fa""s in "o&e ith the in&ention and i"" on"$ re"uctant"$ modif$ the in&ention to ma(e it more commercia""$ feasi%"e. The de&e"opment of a ne &enture %ased on an in&entor;s or( often re#uires the e:pertise of an entrepreneur and a team approach' as man$ in&entors are una%"e to focus on <ust one in&ention "on* enou*h to commercia"i,e it. In&entors rea""$ en<o$ the process of in&entin*' not imp"ementin*.

THE ENTREPRENEURIA/ PROCESS The process of pursuin* a ne &enture is em%odied in the entrepreneuria" process' hich in&o"&es more than <ust pro%"em so"&in* in a t$pica" mana*ement position. An entrepreneur must find' e&a"uate' and de&e"op an opportunit$ %$ o&ercomin* the forces that resist the creation of somethin* ne . The process has four distinct phases: E1F Identification and e&a"uation of the opportunit$' E0F 4e&e"opment of the %usiness p"an' E7F 4etermination of the re#uired resources' and E8F 2ana*ement of the resu"tin* enterprise Esee Ta%"e 1.1F. A"thou*h these phases proceed pro*ressi&e"$' no one sta*e is dea"t ith in iso"ation or is tota""$ comp"eted %efore or( on other phases occurs. 3or e:amp"e' to successfu""$ identif$ and e&a"uate an opportunit$ Ephase 1F' an entrepreneur must ha&e in mind the t$pe of %usiness desired Ephase 8F. TA./E 1.1 Aspects of the Entrepreneuria" Process Identif$ and E&a"uate the Opportunit$ Opportunit$ assessment B Creation and "en*th of opportunit$ B Rea" and percei&ed &a"ue of opportunit$ B Ris( and returns of opportunit$ B Opportunit$ &ersus persona" s(i""s and *oa"s B Competiti&e en&ironment 4e&e"op .usiness P"an TB it"e pa*e B Ta%"e of Contents B E:ecuti&e Summar$ B 2a<or Section 1. 4escription of .usiness 0. 4escription of Industr$ 7. Techno"o*$ P"an 8. 2ar(etin* P"an 9. 3inancia" P"an I. Production P"an J. Or*ani,ation P"an D. Operationa" P"an K. Summar$ Resources Re#uired B 4etermine resources needed B 4etermine e:istin* resources B Identif$ resource *aps and a&ai"a%"e supp"iers B 4e&e"op access to needed resources 2ana*e the Enterprise B 4e&e"op mana*ement st$"e B Understand (e$ &aria%"es for success B Identif$ pro%"ems and potentia" pro%"ems B Imp"ement contro" s$stems B 4e&e"op *ro th strate*$

Identif$ and E&a"uate the Opportunit$ Opportunit$ identification and e&a"uation is a &er$ difficu"t tas(. 2ost *ood %usiness opportunities do not sudden"$ appear' %ut rather resu"t from an entrepreneur;s a"ertness to possi%i"ities or' in some cases' the esta%"ishment of mechanisms that identif$ potentia" opportunities. 3or e:amp"e' one entrepreneur as(s at e&er$ coc(tai" part$ hether an$one is usin* a product that does not ade#uate"$ fu"fi"" its intended purpose. This person is constant"$ "oo(in* for a need and an opportunit$ to create a %etter product. Another entrepreneur a" a$s monitors the p"a$ ha%its and to$s of her nieces and nephe s. This is her a$ of "oo(in* for an$ uni#ue to$ product niche for a ne &enture. A"thou*h most entrepreneurs do not ha&e forma" mechanisms for identif$in* %usiness opportunities' some sources are often fruitfu": consumers and %usiness associates' mem%ers of the distri%ution s$stem' and technica" peop"e. Often' consumers are the %est source of ideas for a ne &enture. Ho man$ times ha&e $ou heard someone comment' ?If on"$ there as a product that ou"d . . .@ indo of opportunit$ The time period a&ai"a%"e for creatin* the ne &enture The mar(et si,e and the "en*th of the indo of opportunit$ are the primar$ %ases for determinin* the ris(s and re ards. The ris(s ref"ect the mar(et' competition' techno"o*$' and amount of capita" in&o"&ed. The amount of capita" needed pro&ides the %asis for the return and re ards. The methodo"o*$ for e&a"uatin* ris(s and re ards' the focus of Chapters J and K' fre#uent"$ indicates that an opportunit$ offers neither a financia" nor a persona" re ard commensurate ith the ris(s in&o"&ed. One compan$ that de"i&ered %ar( mu"ch to residentia" and commercia" users for decoration around the %ase of trees and shru%s added "oam and she""s to its product "ine. These products ere so"d to the same customer %ase usin* the same distri%ution Ede"i&er$F s$stem. 3o""o +on products are important for a compan$ e:pandin* or di&ersif$in* in a particu"ar channe". A distri%ution channe" mem%er such as =mart' Ser&ice 2erchandise' or Tar*et prefers to do %usiness ith mu"tiproduct' rather than sin*"e+product' firms. 3ina""$' the opportunit$ must fit the persona" s(i""s and *oa"s of the entrepreneur. It is particu"ar"$ important that the entrepreneur %e a%"e to put forth the necessar$ time and effort re#uired to ma(e the &enture succeed. A"thou*h man$ entrepreneurs fee" that the desire can %e de&e"oped a"on* ith the &enture' t$pica""$ it does not materia"i,e. An entrepreneur must %e"ie&e in the opportunit$ so much that he or she i"" ma(e the necessar$ sacrifices to de&e"op the opportunit$ and mana*e the resu"tin* or*ani,ation.

Opportunit$ ana"$sis' or hat is fre#uent"$ ca""ed an opportunit$ assessment p"an' is one method for e&a"uatin* an opportunit$. It is not a %usiness p"an. Compared to a %usiness p"an' it shou"d %e shorterA focus on the opportunit$' not the entire &entureA and pro&ide the %asis for ma(in* the decision of hether or not to act on the opportunit$. An opportunit$ assessment p"an inc"udes the fo""o in*: a description of the product or ser&ice' an assessment of the opportunit$' an assessment of the entrepreneur and the team' specifications of a"" the acti&ities and resources needed to trans"ate the opportunit$ into a &ia%"e %usiness &enture' and the source of capita" to finance the initia" &enture as e"" as its *ro th. The assessment of the opportunit$ re#uires ans erin* the fo""o in* #uestions: B >hat mar(et need does it fi""N B >hat persona" o%ser&ations ha&e $ou e:perienced or recorded ith re*ard to that mar(et needN B >hat socia" condition under"ies this mar(et needN B >hat mar(et research data can %e marsha"ed to descri%e this mar(et needN B >hat patents mi*ht %e a&ai"a%"e to fu"fi"" this needN B >hat competition e:ists in this mar(etN Ho ou"d $ou descri%e the %eha&ior of this competitionN B >hat does the internationa" mar(et "oo( "i(eN B >hat does the internationa" competition "oo( "i(eN B >here is the mone$ to %e made in this acti&it$N %usiness p"an The description of the future direction of the %usiness

4e&e"op a .usiness P"an A *ood %usiness p"an must %e de&e"oped in order to e:p"oit the defined opportunit$. This is a &er$ time+ consumin* phase of the entrepreneuria" process. An entrepreneur usua""$ has not prepared a %usiness p"an %efore and does not ha&e the resources a&ai"a%"e to do a *ood <o%. It is important to understand the %asic issues in&o"&ed as e"" as the three ma<or sections of the p"an Esee Ta%"e 1.1F. A *ood %usiness p"an is essentia" to de&e"opin* the opportunit$ and determinin* the resources re#uired' o%tainin* those resources' and successfu""$ mana*in* the resu"tin* &enture. 4etermine the Resources Re#uired The entrepreneur must determine the resources needed for addressin* the opportunit$. This process starts ith an appraisa" of the entrepreneur;s present resources. An$ resources that are critica" need to %e differentiated from those that are <ust he"pfu". Care must %e ta(en not to underestimate the amount and &ariet$ of resources needed. The entrepreneur shou"d a"so assess the do nside ris(s associated ith insufficient or inappropriate resources. The ne:t step in the entrepreneuria" process is ac#uirin* the needed resources in a time"$ manner hi"e *i&in* up as "itt"e contro" as possi%"e. An entrepreneur shou"d stri&e to maintain as "ar*e an o nership position as possi%"e' particu"ar"$ in the start+up sta*e. As the %usiness de&e"ops' more funds i"" pro%a%"$ %e needed to finance the *ro th of the &enture' re#uirin* more o nership to %e re"in#uished. The entrepreneur a"so needs to identif$ a"ternati&e supp"iers of these resources' a"on* ith their needs and desires. .$ understandin* resource supp"ier needs' the entrepreneur can structure a dea" that ena%"es the resources to %e ac#uired at the "o est possi%"e cost and ith the "east "oss of contro". 2ana*e the Enterprise After resources are ac#uired' the entrepreneur must use them to imp"ement the %usiness p"an. The operationa" pro%"ems of the *ro in* enterprise must a"so %e e:amined. This in&o"&es imp"ementin* a mana*ement st$"e and structure' as e"" as determinin* the (e$ &aria%"es for success. A contro" s$stem must %e esta%"ished' so that an$ pro%"em areas can %e #uic("$ identified and reso"&ed. Some entrepreneurs ha&e difficu"t$ mana*in* and *ro in* the &enture the$ created.

T$pes of Start+Ups >hat t$pes of start+ups resu"t from this entrepreneuria" decision processN One &er$ usefu" c"assification s$stem di&ides start+ups into three cate*ories: "ifest$"e firms' foundation companies' and hi*h+potentia" &entures. A "ifest$"e firm is pri&ate"$ he"d and usua""$ achie&es on"$ modest *ro th due to the nature of the %usiness' the o%<ecti&es of the entrepreneur' and the "imited mone$ de&oted to research and de&e"opment. This t$pe of firm ma$ *ro after se&era" $ears to 7C or 8C emp"o$ees and ha&e annua" re&enue of a%outO0 mi""ion. A "ifest$"e firm e:ists primari"$ to support the o ners and usua""$ has "itt"e opportunit$ for si*nificant *ro th and e:pansion. The second t$pe of start+upMthe foundation compan$Mis created from research and de&e"opment and "a$s the foundation for a ne %usiness area. This firm can *ro in 9 to 1C $ears from 8C to 8CC emp"o$ees and from O1C mi""ion to O0C mi""ion in $ear"$ re&enue. Since this t$pe of start+up rare"$ *oes pu%"ic' it usua""$ dra s the interest of pri&ate in&estors on"$' not the &enture+capita" communit$. The fina" t$pe of start+upMthe hi*h+potentia" &entureMis the one that recei&es the *reatest in&estment interest and pu%"icit$. >hi"e the compan$ ma$ start out "i(e a foundation compan$' its *ro th is far more rapid. After 9 to 1C $ears' the compan$ cou"d emp"o$ around 9CC emp"o$ees' ith O0C mi""ion to O7C mi""ion in re&enue. These firms are a"so ca""ed *a,e""es and are inte*ra" to the economic de&e"opment of an area.

RO/E O3 ENTREPRENEURSHIP IN ECONO2IC 4E5E/OP2ENT The ro"e of entrepreneurship in economic de&e"opment in&o"&es more than <ust increasin* per capita output and incomeA it in&o"&es initiatin* and constitutin* chan*e in the structure of %usiness and societ$. This chan*e is accompanied %$ *ro th and increased output' hich a""o s more ea"th to %e di&ided %$ the &arious participants. >hat in an area faci"itates the needed chan*e and de&e"opmentN One theor$ of economic *ro th depicts inno&ation as the (e$' not on"$ in de&e"opin* ne products Eor ser&icesF for the mar(et %ut a"so in stimu"atin* in&estment interest in the ne &entures %ein* created. This ne in&estment or(s on %oth the demand and the supp"$ sides of the *ro th e#uationA the ne capita" created e:pands the capacit$ for *ro th Esupp"$ sideF' and the resu"tant ne spendin* uti"i,es the ne capacit$ and output Edemand sideF. In spite of the importance of in&estment and inno&ation in the economic de&e"opment of an area' there is sti"" a "ac( of understandin* of the producte&o"ution process. This is the process throu*h hich inno&ation is de&e"oped and commercia"i,ed throu*h entrepreneuria" acti&it$' hich in turn stimu"ates economic *ro th. )o&ernment as an Inno&ator The *o&ernment is one conduit for commercia"i,in* the resu"ts of the s$nthesis of socia" need and techno"o*$. This is fre#uent"$ ca""ed techno"o*$ transfer and has %een the focus of a si*nificant amount of research effort. 4espite this effort' re"ati&e"$ fe in&entions resu"tin* from sound scientific *o&ernment+sponsored research ha&e reached E%een transferred toF the commercia" mar(et. 2ost of the %$+products of this scientific research ha&e "itt"e app"ication to an$ commercia" need. The fe %$+ products that are app"ica%"e re#uire si*nificant modification to ha&e mar(et appea". Thou*h the *o&ernment has the financia" resources to successfu""$ transfer the techno"o*$ to the mar(etp"ace' it "ac(s the %usiness s(i""s' particu"ar"$ mar(etin* and distri%ution' necessar$ for successfu" commercia"i,ation. In addition' *o&ernment %ureaucrac$ and red tape often inhi%it the %usiness from %ein* formed in a time"$ manner.

Corporate Entrepreneurship Corporate entrepreneurship Eentrepreneurship ithin an e:istin* %usinessF can a"so %rid*e the *ap %et een science and the mar(etp"ace. E:istin* %usinesses ha&e the financia" resources' %usiness s(i""s' and fre#uent"$ the mar(etin* and distri%ution s$stems to commercia"i,e inno&ation successfu""$. 1et' too often the %ureaucratic structure' the emphasis on short+term profits' and a hi*h"$ structured or*ani,ation inhi%it creati&it$ and pre&ent ne products and %usinesses from %ein* de&e"oped. Corporations reco*ni,in* these inhi%itin* factors and the need for creati&it$ and inno&ation ha&e attempted to esta%"ish an entrepreneuria" spirit in their or*ani,ations. In the present era of h$per competition' the need for ne products and the entrepreneuria" spirit ha&e %ecome so *reat that more and more companies are de&e"opin* an entrepreneuria" corporate en&ironment' often in the form of strate*ic %usiness units ES.UsF. Independent Entrepreneurship The third method for %rid*in* the *ap %et een science and the mar(etp"ace is &ia independent entrepreneurship' such as the creation of a ne or*ani,ation. 2an$ entrepreneurs ha&e a difficu"t time %rid*in* this *ap and creatin* ne &entures. The$ ma$ "ac( mana*eria" s(i""s' mar(etin* capa%i"it$' or financia" resources. Their in&entions are often unrea"istic' re#uirin* si*nificant modification to %e mar(eta%"e. In addition' entrepreneurs fre#uent"$ do not (no ho to interface ith a"" the necessar$ entities' such as %an(s' supp"iers' customers' &enture capita"ists' distri%utors' and ad&ertisin* a*encies. 1et' in spite of a"" these difficu"ties' entrepreneurship is present"$ the most effecti&e method for %rid*in* the *ap %et een science and the mar(etp"ace' creatin* ne enterprises' and %rin*in* ne products and ser&ices to the mar(et. These entrepreneuria" acti&ities si*nificant"$ affect the econom$ of an area %$ %ui"din* the economic %ase and pro&idin* <o%s. In some areas' entrepreneurship accounts for the ma<orit$ of ne products and net ne emp"o$ment. )i&en its impact on %oth the o&era"" econom$ and the emp"o$ment of an area' it is surprisin* that entrepreneurship has not %ecome e&en more of a foca" point in economic de&e"opment.

ETHICS AN4 SOCIA/ RESPONSI.I/IT1 O3 ENTREPRENEURS The "ife of the entrepreneur is not eas$. An entrepreneur must ta(e ris(s ith his or her o n capita" in order to se"" and de"i&er products and ser&ices hi"e e:pendin* *reater ener*$ than the a&era*e %usinessperson in order to inno&ate. In the face of dai"$ stressfu" situations and other difficu"ties' the possi%i"it$ e:ists that the entrepreneur i"" esta%"ish a %a"ance %et een ethica" e:i*encies' economic e:pedienc$' and socia" responsi%i"it$' a %a"ance that differs from the point here the *enera" %usiness mana*er ta(es his or her mora" stance. A mana*er;s attitudes concernin* corporate responsi%i"it$ are re"ated to the or*ani,ationa" c"imate percei&ed to %e supporti&e of "a s and professiona" codes of ethics. On the other hand' entrepreneurs ith a re"ati&e"$ ne compan$ ho ha&e fe ro"e mode"s usua""$ de&e"op an interna" ethica" code. Entrepreneurs tend to depend on their o n persona" &a"ue s$stems much more than other mana*ers hen determinin* ethica""$ appropriate courses of action. A"thou*h dra in* more on their o n &a"ue s$stem' entrepreneurs ha&e %een sho n to %e particu"ar"$ sensiti&e to peer pressure and *enera" socia" norms in the communit$' as e"" as pressures from their competitors. The differences %et een entrepreneurs in different t$pes of communities and in different countries ref"ect' to some e:tent' the *enera" norms and &a"ues of the communities and countries in&o"&ed. This is c"ear"$ the case for metropo"itan as opposed to nonmetropo"itan "ocations ithin a sin*"e countr$. Internationa""$' there is e&idence to this effect a%out mana*ers in *enera". U.S. mana*ers seem to ha&e more indi&idua"istic and "ess communitarian &a"ues than their )erman and Austrian counterparts. The si*nificant increase in the num%er of internationa""$ oriented %usinesses has impacted the increased interest in the simi"arities and differences in %usiness attitudes and practices in different countries. This area has %een e:p"ored to some e:tent ithin the conte:t of cu"ture and is no %e*innin* to %e e:p"ored ithin the more indi&idua"i,ed concept of ethics. The concepts of cu"ture and ethics are some hat re"ated. >hereas ethics refers to the ?stud$ of hate&er is ri*ht and *ood for humans'@ %usiness ethics concerns itse"f ith the in&esti*ation of %usiness practices in "i*ht of human &a"ues. Ethics is the %road fie"d of stud$ e:p"orin* the *enera" nature of mora"s and the specific mora" choices to %e made %$ the indi&idua" in his re"ationship ith others. >hi"e %usiness ethics has emer*ed as an important topic ithin popu"ar and academic pu%"ications in the past fe decades' to date it has %een treated a historica""$ and ith an orientation dominated %$ the U.S. perspecti&e. A"thou*h the En*"ish ord ethics is *enera""$ reco*ni,ed as stemmin* from the )ree( Pthos' meanin* ?custom and usa*e'@ it is more proper"$ identified as

ori*inatin* from s QdhPthos' in hich the concepts of indi&idua" mora"it$ and %eha&iora" ha%its are re"ated and identified as an essentia" #ua"it$ of e:istence. A centra" #uestion in %usiness ethics is' ?3or hose %enefit and at hose e:pense shou"d the firm %e mana*edN@ In addressin* this #uestion e focus on the means of ensurin* that resources are dep"o$ed fair"$ %et een the firm and its sta(eho"ders Mthe peop"e ho ha&e a &ested interest in the firm' inc"udin* emp"o$ees' customers' supp"iers' and societ$ itse"f. If resource dep"o$ment is not fair' then a sta(eho"der is %ein* e:p"oited %$ the firm. Entrepreneurship can p"a$ a ro"e in the fair dep"o$ment of resources to a""e&iate the e:p"oitation of certain sta(eho"ders. 2ost of us can thin( of e:amp"es of firms that ha&e %enefited financia""$ %ecause their mana*ers ha&e e:p"oited certain sta(eho"dersMrecei&in* more &a"ue from them than the$ supp"$ in return. This e:p"oitation of a sta(eho"der *roup can represent an opportunit$ for an entrepreneur to more fair"$ and efficient"$ redep"o$ the resources of the e:p"oited sta(eho"der. Simp"$ stated' here current prices do not ref"ect the &a"ue of a sta(eho"der;s resources' an entrepreneur ho disco&ers the discrepanc$ can enter the mar(et to capture profit. In this a$ the entrepreneuria" process acts as a mechanism to ensure a fair and efficient s$stem for redep"o$in* the resources of a ?&ictimi,ed@ sta(eho"der to a use here &a"ue supp"ied and recei&ed is e#ui"i%rated. Therefore' hi"e there is e&idence that some use the entrepreneuria" process to e:p"oit others for profit' it is important to understand that the entrepreneuria" process can %e an important means of he"pin* e:p"oited sta(eho"ders and at the same time settin* up a &ia%"e %usiness. Thin( of the entrepreneuria" process as a too" that can %e used effecti&e"$ to achie&e outcomes for the %enefit of others Eand the entrepreneurF rather than to the detriment of others. Ethics is not on"$ a *enera" topic for con&ersation %ut a deep concern of %usinesspeop"e.

THE 3UTURE O3 ENTREPRENEURSHIP As e&idenced %$ the man$ different definitions' the term entrepreneurship means different thin*s to different peop"e and can %e &ie ed from different conceptua" perspecti&es. Ho e&er' in spite of the differences' there are some common aspects: ris( ta(in*' creati&it$' independence' and re ards. These commona"ities i"" continue to %e the dri&in* force %ehind the notion of entrepreneurship in the future. One thin* is c"ear: The future for entrepreneurship appears to %e &er$ %ri*ht. >e are "i&in* in the a*e of the entrepreneur' ith entrepreneurship endorsed %$ educationa" institutions' *o&ernmenta" units' societ$' and corporations.