ENTREPRENEURIAL PERSONALITY

Prof. P. S. Francis SFIMAR

Objectives

. To understand the process of motivation.

. Differentiation between affiliation, power and achievement motives.

. Distinction between achievement motivation

and entrepreneurial motivation.

. Qualities of an entrepreneur.

Achievement motivation

An urge to excel Desire to achieve success in competition with self

(previous performances) Desire to achieve success in competition with

others( role models) Long term goals and long term achievement

(consistent efforts) Unique accomplishment Perfection and excellence (McClelland his famous book’ The achieving society’

defines achievement motivation as a desire to do well’ not so muchfor the sake of social recognition but to achieve an inner feeling of personal accompleshment.

Other motives identified by McClelland

Affiliation Motive (N Aff personality) Power Motive (N Pow personality) N stands for intense need. An individual with high need for Affiliation is

concerned with maintaining an effective relationship with others.

Individual with high power motive have a strong desire to exert dominance, authority and control over situations and people- leadership and control

Individual with a high need for achievement are innovative and creative trend setters. They strive hard to achieve standards of excellence in performance and related situations.

First stage : Behavior is caused (Need arousal) Second stage: Behavior is motivated(Motive) Third stage : Behavior is goal- oriented (process) Inner state of disequilibrium needs Behavior or goals Incentive or goals and

feed back.

The process of motivation

Achievement planning

All members of the group must participate. Be creative. The more ideas, the better.

No idea should be blocked. All ideas will be respected and not evaluated. Do

not criticise or judge. All ideas are equally valid at this point.

Ideas already mentioned must be avoided. The ideas should not be detailed. Keep ideas

brief, do not tell stories

Qualities of an entrepreneur

The Macro Screening is a very important step positioned between the project idea generation and the final decision about the most promising business idea.

Macro Screening helps to do a first selection; it’s like pouring all these ideas into a funnel.

Micro screening

The Micro Screening links the macro screening with the SWOT Analysis (strengths, weaknesses, opportunities, threats), hence being the crucial nexus between these two.

It adds quality to the selection process by adding different parameters related to economic judgements (market, skill availability, technology, etc.).

Micro Screening Table

PROJECTgood or service

Solventdemand

Availability of

qualified personnel

Availability of

technology /

equipment

Availability of raw material

TOTAL Competitors

CorrectedTOTAL

Critical success factors

( + ) ( + ) ( + ) ( + ) ( = ) ( - ) ( = )

Scoring system: 5 – extremely high ; 4 –high ; 3 – average ; 2 – fair; 1 – poor; 0 – absentCritical success factors: write text

SWOT analysis

The SWOT Analysis (strengths, weaknesses, opportunities, threats) is based on these concrete project ideas.

It is quite a simple but very powerful tool which enables the participants to do a proper comparison of the last three projects remaining after the micro screening process.

Innovation Life Cycle Process

Ideation

Concept development

Evaluation (business and technical)

Commercialization

Improvement innovation

Business plan based on

Entrepreneurship The business idea Business areas

What is outline of your business plan?

Please divided in the working groups and find the standard outline of a business plan – 5 min.

For preparing a Business Plan we must answer a following questions:

1. WHAT is a Business Plan?2. WHO needs a Business Plan?3. HOW to prepare a Business Plan?

1. What is a business plan?

Business planning is about results. A business plan is any plan that works for a

business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.

Businesses need plans to optimize growth and development according to priorities.

A business plan is like a map and a compass for a business.

prezentationplan

workingplan

mini-plan

Business plan

The Different Types of Business Plans

Business plans are also called:- strategic plans- investment plans - expansion plans- operational plans- annual plans- internal plans- growth plans- product plans- feasibility plans and many other names.

2. Who needs a business plan?

You need a business plan if you’re running a business;

You need a business plan if you’re applying for a business loan;

You need a business plan if you’re looking for business investment, new products or new services;

You need a business plan to communicate with a management team.

3. How prepare a business plan?

Is There a Standard Business Plan?

A normal business plan, includes a standard set of element. Plan formats and outlines vary, but generally a plan will include components such as descriptions of the company, product or service, market, forecasts, management team, and financial analysis.

Your plan will depend on your specific situation.

Executive summary

Business description: products and services offered

Market strategies

Competitive analysisand positioning

Operations andmanagement plan

Outline of a business plan

Financial components

- condensed informationon each

of the chapters bellow- type of business;- products and services

offered;- ownership of the business

and its legal structure;- profitability consideration.

- market and target market;- demand for the product

or service;- promotion;

- dissemination and delivery;

- pricing strategy.

- competition analysis;- identification of

competitive strenght position.

- operations plan;- management team.

- capital requirements and sources;

- balance sheet;- break-even analysis;- income statement;

- cash flow projection.

Annex

Business aspects advise: adresses for financing advise,legal advice, marketing advice

Figures Tables Graphs Other sectors advice: research institutes,

interests groups, administration, other key innovation areas.

Planning is a Process, Not Just a Plan

Successful implementation starts with a good plan

Is the plan simple? Is the plan specific? specific budgets? Is the plan realistic? Is the plan complete?.

Preparing a business plan

Define and fix objectives, and programs to achieve those objectives.

Create regular business review and course correction.

Define a new business. Support a loan application. Define agreements between partners. Set a value on a business for sale or legal

purposes. Evaluate a new product line, promotion, or

expansion.

Keys to Better Business Plans

Use a business plan to set concrete goals, responsibilities, and deadlines to guide your business.

A good business plan assigns tasks to people or departments and sets milestones and deadlines for tracking implementation.

As part of the implementation of a business plan, it should provide a forum for regular review and course corrections.

Good business plans are practical.

Individual GANTT Chart Table (example) Months

Activities2/99 3/99 4/99 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 1/00

Seek legal advice

Choose land and buy

Plan plant layout

Finalise loan

Register

Order machines +++++

+++++

+++++

Prepare plant

Advertise +++++

+++++

+++++

+++++

Recruit personnel

Install machines

Trial production

Open business

Business Plan "Don'ts"

Don't use a business plan to show how much you know about your business.

Nobody reads a long-winded business plan: not bankers, bosses, nor venture capitalists. Years ago, people were favorably impressed by long plans. Today, nobody is interested in a business plan more than 50 pages long.

How Long Should a Business Plan Be?

Page count is not a good way to measure length. A 20-page plan with dense text and no graphics is

much longer than a 35-page plan broken up into readable bullet points, useful illustrations of locations or products, and business charts to illustrate important projections.

A good business plan should leave a reader a good general idea of its main contents even after only a quick skimming, browsing the main points, in 15 minutes.

Format, headings, white space, and illustrations make a big difference. Summaries are very important. Main points should show up in a business plan as quickly as they do in a business presentation.

The right length of the plan depends on the nature and purpose of the plan

Will it include descriptions of the company and management team for outsiders to read;

Does it need an executive summary good enough to stand alone;

Does it include detailed research, plans, drawings, and blueprints;

Is it worded to withstand legal scrutiny as part of an investment proposal.

BUSINESS PLAN

Standard Outline

EXECUTIVE SUMMARY

Brief Description of the Project Brief Profile of the Entrepreneur Project's Contributions to the Economy

Write this last. It's just a page or two of highlights.

Section 1MARKETING PLAN

Description of the Product Comparison of the Product with Its Competitors' Location Market Area Main Customers Total Demand Market Share Selling Price Sales Forecast Promotional Measures Marketing Strategy Marketing Budget

Section 2 PRODUCTION PLAN

Production Process (fixed capital, life of fixed capital)

Planned Capacity - Future Capacity Terms and Conditions of Purchase of Equipment Factory Location and Layout Raw Materials Needed - Cost of Raw Materials -

Raw Materials Availability Labour Cost of Labour Labour Availability - Labour Productivity Factory Overhead Expenses Production Cost

Section 3 ORGANIZATION & MANAGEMENT PLAN

Form of Business Organisational Structure Business Experience and Qualifications of the

Entrepreneur Pre-Operating Activities Pre-Operating Expenses Office Equipment Administrative Expenses

Section 4 FINANCIAL PLAN

Project Cost Financing Plan and Loan Requirement Security for Loan Profit and Loss Statement Cash Flow Statement Balance Sheet Loan Repayment Schedule Break-even Point (BEP) Return on Investment (ROI) Financial Analysis

When a business plan is being worked out, there are too many big questions, the answers of which only the entrepreneur can know, that are far too important to be left to someone else who claims that he can spare the entrepreneur the trouble of preparing his own business plan - no one can do it better than you!

Summary

A proper business plan serves as a map. Use it to establish the points along the route,

indicating why each is important and how it can best be reached.

The plan builds from mission and value to justification, strategies, tactics, actions and expected results.

Comprehensive business planning increases the likelihood of the venture’s success.

Every business need an innovation engine to generate the great ideas that will propel the business forward into the future.

Thank you for attention!