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Entrepreneurship

CPD Course

Dr. Syed Mustafa Ashraf

Executive Director
mustafa.syed@nfrd.org
Enterprise Development Group
National Foundation for Resource Development
7th April 2012 Islamabad

CPD Course Description


This CPD Unit will introduce the concepts
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Copy forandIndividual
of entrepreneurship
lay the
foundation
for developing Only.
the necessary
Self-Learning
skill set to explore entrepreneurial
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opportunities
in orderReserved.
to
Create Value And Serve Society

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CPD Course GOALS


To Identify Entrepreneurship As A Career And
Lifestyle Option
To Increase Self Awareness, Especially Work Ethic
To Develop A Mindset For Business And Develop
Confidence
To Leverage Engineering Knowledge To Identify
Gaps And Opportunities For Innovation
To Build On Business Skills Such As Marketing And
Accounting

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CPD Course Outcomes


After completing this CPD Course, one should be able to:
Explain the nature of entrepreneurship
Develop an entrepreneurial perspective by recognizing
entrepreneurial opportunities
Analyze the environment for entrepreneurship
Know the value of a business plan and be able to seek
help to develop one
Set up a business organization through leveraging
Assemble the Core Team
Identify the sources of capital for a business venture

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Do You Know This Institution?


Companies
25,600 Copy
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forWorldwide
Individual
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People Employed
3.3 m
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$2 trillion

Annual Sales Revenue

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Largest World2012
Economy
11th
2006 Data

How About This Institution?


Companies
34,700 Copy
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forWorldwide
Individual
Self-Learning Only.
People Employed
4.4 m
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$2.5 trillion

Annual Sales Revenue

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Largest World2012
Economy
9th
2010 Data

Entrepreneurship Definitions
Knight (1921) Profits From Bearing Uncertainty And Risks

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Cole (1952) Purposeful
Activityfor
To Initiate
And Develop A
Profit-oriented Business
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Mcclelland (1961) Moderate Risk Taking
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Casson (1982) Decision And Judgments About The
Coordination Of Scarce Resources

Gartner (1985) Creation Of New Organizations


Stevenson Et Al (1989) The Pursuit Of Opportunity
Without Regard To Resources Currently Controlled

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Common Elements In Definitions


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Creativity And Innovation
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Individual
Self-Learning
Only.
Resource Gathering And The Founding Of
An Economic
Organization
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The Chance For Gain (Or Increase) Under


Risk And Uncertainty

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Common Elements Defined


Creation: A Founding And An Origin
Innovation: A New Way Of Doing Something
Economic Organization: An Organization Whose
Purpose Is To Allocate Scarce Resources To Create Value
Risk: Variability Of Outcomes Or Returns
Uncertainty: Degree Of Confidence In The Estimates Of
How The World Works; Of The Causes And Effects Of The
Environment

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Entrepreneurship
The Creation Of An Innovative Economic
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Organization For The Purpose Of Gain Or
GrowthSelf-Learning
Under Conditions OfOnly.
Risk And
Uncertainty

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New Venture Creation

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Resource Based Definition


Entrepreneur Uses Resources That Are

o Rare
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o Valuable
o Hard
To Duplicate
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Only.
o Have No Good Substitutes
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To Obtain A Sustainable Competitive Advantage

The Nature And Quality Of The Resources, Capabilities And


Strategies The Entrepreneur Possesses And Can Acquire
Will Directly determine the Long-term Success

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Who is an Entrepreneur ?
Previously

Now

Small Business Founder

True Entrepreneur

Snap Decisions

Consensus Builder & Informed


Decision Maker

Overwhelmingly Male

Gender is a Non Issue

Success Due to Idea

Success Due to Execution

Knows the Trade

Knows the Business

Earning a living

Creating Value & Wealth

Boss
Leaderfor Individual
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Lone Ranger
Networker
Secretive Self-Learning
Open
Only.
Self-reliant
Inquisitive
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Off the Cuff
Planner/Strategist

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Technology for Automation
Technology for Innovation

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New Entrepreneurs
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Aware & ActiveCopy
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for Individual
Mid Career Professionals & Executives
Only.
Talent Self-Learning
From Downsized Companies
Early All
Retirees
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Quest For Status
Control Over Personal Life
Local Need Analysis & Solution
Globalization
Opportunities 2012
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Dimensions of New Enterprise

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Individual
Characteristics

Environment

New
Enterprise

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Constraints

Organization

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The Individual

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Psychological, Sociological
AndIndividual
Demographic
Characteristics
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Experience, Knowledge, Expertise And
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Training
Character & Professionalism
Personal Integrity
EthicsCopyright

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Ethical Behavior
Any business decision that creates value for the
customer by matching quality and price

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Provide valid data about product and service
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Only.
Enable customer to make a free and informed choice
Generate
customer
commitment
to the product and the
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organization that provided it

The Only Sustainable Competitive Advantage


That Any Business Has Is Its Reputation

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Ten Best Rules


1.

Commit to Achieving Success and Always Be


Passionate
2. Share Success with Those Who Have Helped You
3. Motivate Yourself and Others to Achieve Your Dreams
4. Communicate with People and Show You Care
5. Appreciate and Recognize People for Their Efforts and
Results
6. Celebrate Your Own and Others Accomplishments
7. Listen to Others and Learn from Their Ideas
8. Exceed Expectations of Customers and Others
9. Control Expenses and Save Your Way to Prosperity
10. Swim Upstream, Be Different and Challenge the Status
Quo

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Environment
Opportunities In The Form of Resources

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People
Technology
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Money
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AcquireAll
Resources
AndReserved.
Combine Them With
The Ones Already Present to Deliver Value

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Constraints or Threats

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Competition
Government
Influences
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Only.
PoliticalAll
Environment
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Socio-Economic Conditions
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Economic Organization
Value Proposition

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for Individual
o Drive And Motivation
Embodiment
Cultivate Form And Structure
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Only.
o Functional
Level Strategies
Find Entry
Wedges
Or Points
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o To Penetrate Or Create A Market
Build Isolating Mechanisms
o To Protect Its Positions

Define Culture

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o Determines Performance & Quality

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Quality is Critical to Success


Transcendent

o Philosophical Concerns
The for
Function
Intended
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Product-Based
o ProductSelf-Learning
Or Service Attribute Held Only.
In High Regard
User-Based
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o User Preferences
are Subjective

Manufacturing-Based

o Conformance To Standards, Operational Excellence

Value-Based

o In Terms Of Economic Value Delivered

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People-Based

o Quality Of Team
o Quality Of Decisions

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Entrepreneur The Decision Maker

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Entrepreneur Must Understand All Quality
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Only.
Perspectives To Be Able To Make Decisions
Based On
Current Reserved.
Situation
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Be a Dynamic Entrepreneur!

Find Your Strengths


Dream Big Dreams
Mistakes Will Happen
Persistence Pays Off
Hire People for Their Values
Spread the Wealth
Have Life Outside of Work
Explore Venture Capital vs. Customer Funding
Know Your Customer
Customers Will Say What They Need

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Are You Ready?


Owning a business is the dream for many of us
Starting that business converts our dreams into reality
However, there is a gap between dreams and reality
Dreams can only be achieved with careful planning

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As an entrepreneur,
you will
need a plan to
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Avoid Pitfalls
Achieve Your Goals
Build A Profitable Business

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Is Entrepreneurship For2012
You?

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Self-Learning
Only.
Typical
first-time entrepreneur
is not a 20something
research
shows that their
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average age is 40 !
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Understand the Opportunity Space


EXISTING

NEW

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EXISTING

NEW

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Planning your Start up Business

Business Concept
Personal Resources and Objectives
Product/Service
Market Description/Analysis
Sales and Marketing Plan
Practical Organizing of your Business
Business Development Strategy
Budgets
Financing Options

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3 FATAL FLAWS
Business Issues

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Individual
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process offor
building
a business
Team,Self-Learning
Resources & Market Pain
must intersect!
Only.
Personal Issues
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CEO Focus, Skills and Understanding
Team Quality

Organizational Issues

Corporate Culture Alignment with Enterprise


Team Culture Alignment with Enterprise

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3 POWER POSITIONS
Best Total Cost

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Operational Excellence
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Best Products
Product
Technology Reserved.
Leadership
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Best Service

Customer Focus

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Maintain Standards across All Aspects, EXCEL in one!

There is Substantial Support Network

National Initiatives
Business Support Organizations

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Entrepreneurship Development Centers at
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Only.
Universities
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Business Incubators
Networking Forums

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Business Plan Competitions

2012
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Business Support Organizations

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o NFRD

o Small & Medium Enterprise Development Authority


o Women Entrepreneurs Information Network
o Industrial Information Network

o Technology Upgradation & Skill Development Company


o Trade Development Authority of Pakistan

o Pakistan Horticulture Development & Export Board


o Pakistan Dairy Development Company
o Livestock & Dairy Development Board

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o Pakistan Industrial Development Corporation (PIDC)

o Pakistan Software Houses Association for IT & ITES (P@SHA)


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Entrepreneurship Development Centers


o
o
o
o
o
o
o
o
o
o
o
o
o
o

NFRD
NUST
Superior University
NUML
IBA
LUMS
IMS
NWFP - UET
SUIT
KUST
Bahauddin Zakariya University
PAF - Karachi Institute of Economics & Technology
Mohammad Ali Jinnah University
University of Management & Technology (UMT) Center for Entrepreneurship and
Innovation (CENTIN)
o University of Veterinary & Animal Science

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Business Incubators
NFRD
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TIC - This is an initiative of NUST at
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Islamabad
Askari All
Commercial
An AWT
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initiative for the benefit of retired Army
Officers
E-Magine Group
PSEB Smart
Plug & Play Incubator
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Saif Center for Innovation

Networking Forums

NFRD
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OPEN Pakistan
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TiE Pakistan
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Reserved.
Entrepreneurship
Pakistan
Conference
All Pakistan Entrepreneurs Exchange
TAN: Tech Angel Network
Pakistan Private Equity and Venture Capital
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Association
of Europe

Business Plan Competitions

NFRD (Future Plans)


TiE-Khudee, Business Plan Competition
MIT Club of Pakistan Enterprise Forum
Ministry of Youth Affairs "The National Business Plan Competition"
Shell Tameer
The Prince of Wales Pakistan youth entrepreneurship programme
British Council Youth Award
Young Leaders Entrepreneurship Summit
Kaavish
FAST University's NASCON
COMSATS
FATA Livelihoods Development Program
P@SHA LaunchPad - for launching new ideas and startups
IBA INVENT-The Entrepreneurship Challenge
DISCOVER NUST Center of Innovation & Entrepreneurship
IDEAS Youth Entrepreneurship Summit
Business Ideas Competition FAST-NU
Pakistan Entrepreneurship Summit

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NFRD
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National Foundation for Resource Development


Enterprise Development Group

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NFRD

Building Bridges, Bridging Gaps


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Integrated Approach (Complete EcoSystem)
Only.
ConceptSelf-Learning
Developed 2005-2006
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First Institute
Started 2006
Enterprise Development Started 2007
Integrated System & Linkages are Growing!

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Entrepreneurship EcoSystem
Capacity Building

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Integrated Education
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Training
Skills Development
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Career Counseling & Job Placement
Mentoring

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Entrepreneurship EcoSystem
Enterprise Development

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Business Information & Consultancy
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Only.
Workshops,
Seminars & Courses
Business Incubation
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Business Opportunities

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Entrepreneurship EcoSystem
Network Development

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Independent Associated Group of Businesses
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Academia-Business-Industry-Government
Linkages
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International Linkages
Sales & Marketing Channels
Business Grid
Education Grid

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Business Resources

Business Planning
Market Research
Feasibility Plans
Business Incorporation
Agreements & Contracts
Incubation
Market Access
Network & Linkages
Investments

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Conclusion
Entrepreneurship is a viable and rewarding option
It is the back bone of Innovation, Creativity,
Sustained Advantage & Economic Well-Being of a
Nation
Infrastructure, Tools and Support Environment is
Available
The Drive and Motivation of the Entrepreneur is the
Key Ingredient
Journey Itself is the Reward of Entrepreneurship!

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"Indecision Is The Thief Of Opportunity" - Jim Rohn

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Thank You

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Dr. Syed Mustafa Ashraf

Executive Director
mustafa.syed@nfrd.org
Enterprise Development Group
National Foundation for Resource Development

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2012

7th April 2012 Islamabad

2012

Reference Books

Entrepreneurship: by Robert D. Hisrich, Michael P. Peters, Dean A.


Shepherd, 6th Edition (McGraw Hill)
Entrepreneurship: Theory, Process, & Practice. (2010). Asia-Pacific 2nd
ed. Frederick, H; Kuratko D.F & Hodgetts, R.M. Publisher: Cengage
Learning.
Entrepreneurship: Strategies and Resources by Marc J. Dillinger, Third
Edition (Pearson Education)
Thinking Like An Entrepreneur: by Peter I. Hupalo, HCM Publishing
Essentials of Entrepreneurship and Small Business Management,
Thomas W. Zimmerer, Norman M. Scarborough, Pearson Education
Launching new ventures: An entrepreneurial approach, Allen, K. R.
(2003). Boston: Houghton Mifflin (HD 62.5.AD584 2003)
How to prepare a business plan. London: Kogan Page (HD 30.28.BL783
2002) Blackwell, E. (2002).
Seven steps to a successful business plan. Coke, A. (2002). New York:
AMACOM (HD 30.28.CN74)

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Reference Books

The basics of budgeting. Dickey, T. (1992). Los Altos, CA: Crisp


Publications
The successful marketing plan: A disciplined and comprehensive
approach. Hiebing, R. G., & Cooper, S. (2005). New York: McGraw Hill
(HF 5415.13.HL81)
Analyzing your competitor's financial strengths: how to evaluate key
threats and opportunities. Howell, S. (1993). Financial Times/Pitman
Publishing Management Series (HD 41.HU91)
So you need to write a business plan! Osteryoung, J., & Denslow, D.
(2003). Mason, Ohio: Thomson/South-Western (HD 62.5.OU87)
Business planning: a comprehensive framework and process. Truitt, W.
B. (2002). Westport, Conn: Quorum Books (HD 30.28.TV25)
Invent business opportunities no one else can imagine. Turock, A.
(2002). Franklin Lakes, NJ: Career Press (HD 30.28.TY364)
The Business plan: a Deloitte Touche Tohmatsu guide to preparing a
successful business plan. Dn: Hocken Library: Interim 1 Collection [Use
in Library]

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