Opportunity Analysis

The over riding reasons of any individual to think of new enterprise can be summarised in one word and that is OPPORTUNITY. If he can identify an easy way of providing goods and services in the market with sufficient profit, he can easily start a new enterprise.
Most of the individual entrepreneur realize the fact that:

"Small is beautiful".

"Less risky with handsome profit".

Factors affecting development of entrepreneurship

Internal factors affecting development of entrepreurship:

1. Desire to work independently.
2. Entrepreneurial ambition.
3. Forcing or compelling reasons.
4. Faciliating or supporting reasons.

• Occupational or work experience,
• Moral support,
• Imitative encouragement

External factors affecting development of Entrepreurship:

1. Availability of financial help.
2. Availability of infrastructure facilities.
3. Support from government and other agencies.
4. Anciliary support.
5. Entrepreneurial team.
6. Open and meritocratic environment.
7. Product and markets.

Sociocultural theory of entrepreneurship

The emergence of entrepreneurship is from a sociocultural standpoint as done by the sociologists. They plead that entrepreneurship is most likely to emerge under a specific socioculture environment. They hold the view that socciological changes, cultural values and role expectations are responsible for the emergence of entrepreneurship. Main sociologists are:

• Thomas Cocran
• Max Weber
• Everett Hagen
• Randell stokes
• Albert Sheparo

Economic theory of Entrepreneurship

Its the thoeory of economists. They think that entrepreneurship and economic growth will take place in those cases where particular economic conditions take place favourable. Main economists in the theory of G.F. PAPANEK and J.R. HARIS. They hold the view that the economic incentives are the main drive for the entrepreneurial activities. In some cases, individuals, innerdrives have been associated with economic gains. Therefore these incentives and gains are regarded as sufficient condition for the emergence of indutrial entrepreneurship.

Economic Factors:

1. the market incentives which present themselves in the form of new social needs and wants,
2. the existence of sufficient stock of capital to finance new enterprise,
3. the occurence of institutions, such as development banks, so as to direct the capital to those who want to use it for entrepreneurial projects.

Trait theory of Entrepreneurship

The theory holds that entrepreneurship developed because the individuals called entrepreneur possessed certain specific traits or characteristics or competencies which made them capable of generating new ideas and creating new ventures. The major traits responsible for the emergence of entrepreneurship are said to be : creative and innovative skills, propensity to take risks, ability of building on organisation and managing it effectively perseverance, and foreseceability. Different studies have emphasised different traits. However, it may be said that there are opponents of the trait approach. They ask a logical question as to whether those among us who do not choose to be entrepreneur, have similar traits.

Entrepreneurship

Entrepreneurship, till some time back, has been largely ignored and treated in a highly simplied way by business experts. However now it is widely recognised that it promotes the supply of entrepreneurial talent and therefore is likely to be important due to its role that it plays in the field of economic growth, innovation and job creation.
Entrepreneurship is multi-dimensional. Basically it features :

1. Purposeful innovation.


2. Devotion of time and effort.


3. Risk-taking.


4. Rewards.


5. Anxiety & Hard working.

Types of Entrepreneurship

1. Innovative Entrepreneurs
2. Adoptive or Imitative Entrepreneurs
3. Fabian Entrepreneurs
4. Drone Entrepreneurs

Venture capital Market

Venture Capital Market consists of those wealthy individual investors, firms, institutions, and companies who provide venture capital for all stages of financing the entrepreneurial ventures- debt and equity capital.

Venture capital concept was developed in western countries to fulfil the requirement of providing non-conventional, risky finance to new ventures based on innovative entrepreneurship.

"Venture Capital is an alternative form of equity and debt financing made available to ventures initiated by relatively new and professionally or technical

qualified entrepreurs with inadequate funds, having new or untried technology or high risk, and exceptional growth prospects, i.e., a sustainable competitive advantage that helps maintain growth in sales and profitability, which is expected to potentially result in superior returns to the venture capitalist within specified period of time".

Entrepreneur at different places

1. Small scale enterprises:Entrepreneur as innovater: Small scale enterprises include those businessunits which are of small size kess capital and machinery investment, generally managed by its owner in a personalised manner until it grows to a certain level at which assisted certain managers may be added, without sharing in decision making, with its owner at a single risk bearer an claimer of the whole profits. Such enterprises serve a local or regional market rather than a national and international market.

2. Economic development: Economic development essentially means a process of upward change whereby the real per capital income of the country increased over a long period of time through growth and development of business enterprises. It involves initiating and constituting changes in the structure of business and society. These changes are accompanied by growth and increased output, which allows more wealth to be divided by various departments. Innovations play key role in the economic developnent. The economic history of the present developed countries like USA, Russia and Japan, as well as developing countries like India tends to support the fact that economy is the effect and entrepreneurship is the cause.

3. Generation of employment opportunities: Growing unemployment especially in qualified or educated youths is a teasing problem in many countries. The available employment opportunities cater to only a meagre part of the unemployed lot. A more explicit case for encouraging entrpreneurship lies in its employment creation potential. If hundred persons become entrepreneur and form new enterprises, they not only create 10 jobs for themselves but also provide employment to many more individuals, and to still more when their enterprises grow and develop.

Role of Entrepreneur

The term entrepreneur is increasingly being reversed for the type of individuals who are highly determined, confident, creative, and innovative , sales- oriented personalities, well in tune with trends and who are able to translate a vision in to real small business. These individuals are often viewed as undaunted risk-takes, but because they are in tune with trends, they are often visionaries who have a good understanding of things to come about in future, which make their risks more calculated than it may appear.

They drive us as agents of change and do not like the moments when things are running well-at that time, they desire some useful change in product, technology, or materials etc. The entrepreneurs are indispensible assets to the economy of the country.