Entrepreneurship

Block I

Entrepreneurship
means to create something new, organizing and coordinating and bearing risk with economic uncertainty.

What is Entrepreneurship
Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk taking appropriate to the opportunity and through the communicative and management skills to mobilize human, financial and material resources necessary to bring a project to fruition.

PROFILING ENTERPRENEURSHIP
Entrepreneurship involves creative/ innovative response to the environment. it is generally associated with business / economic activities It involves understanding and satisfying the needs of others and in that process generating income / wealth for the entrepreneur. While doing so the entrepreneur is also expected to carry out his activities with a sense of social responsibility.

Thus, Entrepreneurship can be understood as process of understanding and satisfying the needs of others by adopting creative/ innovative methods and generating income / wealth for oneself with a sense of social responsibility.

 An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them. The basic objective of entrepreneurship development should be to develop competencies required to initiate, manage, and expand the entrepreneurial activity. The major factor for entrepreneurship is the achievement motivation

 Planning ahead increases the probability of a successful outcome In agricultural businesses, planning is even more vital because of the inherent uncertainty associated with agricultural production. Some important sources of uncertainty include production risk, price risk, financial (or interest rate) risk, and changes in government programs.

What is a Business Plan

A document that describes what you plan to do and how you plan to do it.

Why do we need a business plan

To have a concrete plan before we plunge into a project To convince all those who may have a stake For compliance with various support system agencies It serves as a tool for monitoring and control

What makes a successful business plan?

A well thought out idea Clear and concise writing A clear and logical structure Illustrates managements ability to make the business a success Shows profitability

Four major aspects of a business plan

Introduction

Of promoter Of the activity

Marketing aspect Technical aspect Economic aspect

Types of Plans

Mini Plan

business concept, financing needs, marketing plan and financial statements, especially cash flow, income projection and balance sheet. a tool to be used to operate the business for showing to bankers, investors and

The Working Plan

Presentation Plan

CASH MANAGEMENT

CASH

is one of the current assets of the business needed at all times to keep the business going is the most unproductive of all the assets itself does not produce goods or services

Firms have to maintain a critical level of cash

Problems of Cash Management

1. Controlling level of cash 2. Control inflow of cash 3. Controlling outflow of cash, and 4. Optimal investment of surplus cash.

Cash planning

is forecasting the cash needs well in advance for a given period with a view to maintain adequate cash balance in hand includes forecasting of cash inflows and cash outflows

Tools for Cash Control

Cash Budget report Cash flow statement Ratio analysis

QUESTION S

THANK YOU