Entrepreneurship METHODIST COLLEGE OF ENGINEERING HYDERABAD TYPES OF ENTREPRENEURSHIP Small Business entrepreneurship: (Ex: grocery stores, hairdressers, consultants etc. ) Their definition of success is to feed the family and make a
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Presentation Transcript
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Entrepreneurship METHODIST COLLEGE OF ENGINEERING HYDERABAD<br>
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TYPES OF ENTREPRENEURSHIP Small Business entrepreneurship: (Ex: grocery stores, hairdressers, consultants etc. )
Their definition of success is to feed the family and make a profit, not to take over an industry or build a $100 million business. Can’t provide the scale to attract venture capital, they fund their businesses via friends/family or small business loans.
Scalable Startup entrepreneurship (Ex: Ola, uber)
attract investment from venture capitalists
Large Company Entrepreneurship
Changes in customer tastes, new technologies, legislation, new competitors
entirely new products sold into new customers in new market
Social Entrepreneurship
Creating products and services that solve social needs and problems
Goal is to make the world a better place, not to take market share or to create to wealth for the founders<br>
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Challenges 1. Developing the Vision and Business Idea:
Developing the Vision and Business Idea:
The ability to see what others cannot see
While others see problems, an entrepreneur must see opportunities
Identifying a problem
Seeing an opportunity in the problem
Coming up with a solution
Forging the opportunity into a business idea
Integrating the solution into a business plan<br>
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Challenges 2. Poor market research
Before you invest a single penny in your new business, you need to conduct market research
Identify potential customers,
Set realistic targets,
develop suitable strategies
A common problem for new businesses is that they overestimate the size of their potential market.<br>
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Challenges 3. Detailed business plan.
Business plan helps us to focus on the mission and scope of your business.
Figure out exactly how the business will run
Realistically project how much money the business will make<br>
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Challenges 4. Raising Capital for Startup
After developing an idea, the next challenge that the entrepreneurs are going to face when starting a business from scratch is that of raising capital.
An entrepreneur is the only one that knows business idea to the core. Trying to convince investors about something that doesn’t exist is definitely a challenge.
To overcome the challenge of raising capital, an entrepreneur must develop the ability to sell their idea and vision to potential investors<br>
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Challenges 5. Developing a Business Team
Most brilliant ideas and products never get funded because the entrepreneur is trying to raise capital as an individual.
A business team is a vital, yet often ignored key to raising venture capital successfully.
As an entrepreneur bound to have strengths and weaknesses.
That is the more reason an entrepreneur needs a business team to cover up or compliment their weaknesses.<br>
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Challenges 6. Unforeseen Challenges
An entrepreneur must be prepared for whatever comes.
Unexpected challenges can come in the form of: Unexpected law suits, Inconsistent government policy, Not being able to make payroll Unpaid bills and taxes ,Unexpected resignation of staff from sensitive office Bad debts from customers, Loss of market share, unforeseen increase in business expenses,Inadequate stock or inventory
These business challenges, if not handled properly can ruin the plan to build a successful business<br>
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Challenges 7. Competition
Competition is a benchmark for creativity, the main engine that stimulates innovation and production of quality products at great prices.
Without competition, there will be no innovation and without innovation, the world will be stagnant.<br>
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Challenges 8. Keeping Up With Industrial Changes and Trends
Change in trends is a challenge an entrepreneur must be prepared for when starting a small business.
Trends have made and broken lot of businesses. profitable businesses that have been wiped out by slight industrial changes and trends.
The only thing constant is change
Today, information keeps changing. New facts and data keeps emerging and replacing old beliefs and trends.
Due to this information overload, it gets difficult to find effective solutions. It becomes a challenge for a new business to sort through this data and come up with good decisions.
However, one easy solution is to look for the authenticity of the data<br>
