A

Presentation on

CONSTRUCTION
MANAGEMENT&
ENTREPRENEURSHIP(BCV501)

by
K.V. Mahesh Chandra
Assistant Professor
Department of Civil Engineering
Bangalore Institute of Technology
Bengaluru-560 004
MODULE 5- INRODUCTION TO
ENTREPRENEURSHIP &
BUSINESS PLANNING
PROCESS
 Entrepreneurship is the ability and readiness to develop,
organize and run a business enterprise, along with any of
its uncertainties in order to make a profit.
 Entrepreneurship is the process of starting and running
a business, or the mindset and lifestyle of an
entrepreneur.
 Entrepreneurship is the process of creating, developing,
and managing a new business venture to generate profit.
It involves innovation, risk-taking, and the ability to
identify and seize opportunities.
 The entrepreneur is defined as someone who has the
ability and desire to establish, administer and succeed in
a startup venture along with risk entitled to it, to make
profits.
 An entrepreneur is someone who organizes, manages, and
assumes the risks of a business or enterprise.
 An entrepreneur is an individual who starts and runs a
business with limited resources by taking calculated
risks to drive innovation, create value, and contribute to
economic development.
 History of Entrepreneurship
 The word ‘entrepreneur’ is derived from French word
‘Entreprendre’ which was used to designate an organizer
of musical or other entertainments. Later in 16th century
it was used for army leaders.

 It was extended to cover civil engineering activities

such as construction in 17th century.

 Richard Canutillo, an Irishman living in France who first

used the term entrepreneur to refer to economic
activities. According to Cantillon “An entrepreneur is a
person who buys factor services at certain prices with a
view to selling its product at uncertain prices”.
Difference b/w Entrepreneur &
Entrepreneurship
 Characteristics of Entrepreneur
Not all entrepreneurs are successful; there are definite
characteristics that make entrepreneurship successful.
A few of them are mentioned below
• Ability to take a risk- Starting any new venture involves
a considerable amount of failure risk. Therefore, an
entrepreneur needs to be courageous and able to evaluate
and take risks, which is an essential part of being an
entrepreneur.
• Innovation - It should be highly innovative to generate
new ideas, start a company and earn profits out of it.
Change can be the launching of a new product that is new to
the market or a process that does the same thing but in a
more efficient and economical way.
 Characteristics of Entrepreneur
• Visionary and Leadership quality- To be successful, the
entrepreneur should have a clear vision of his new venture.
However, to turn the idea into reality, a lot of resources and
employees are required. Here, leadership quality is paramount
because leaders impart and guide their employees towards the
right path of success.
• Open-Minded- In a business, every circumstance can be an
opportunity and used for the benefit of a company. For example,
Paytm recognized the gravity of demonetization and
acknowledged the need for online transactions would be more, so
it utilized the situation and expanded massively during this time.
 Characteristics of Entrepreneur
• Flexible- An entrepreneur should be flexible and open to
change according to the situation. To be on the top, a
businessperson should be equipped to embrace change in a
product and service, as and when needed.
• Know your Product-A company owner should know the
product offerings and also be aware of the latest trend in
the market. It is essential to know if the available product
or service meets the demands of the current market, or
whether it is time to tweak it a little. Being able to be
accountable and then alter as needed is a vital part of
entrepreneurship.
 Importance of Entrepreneurship
 Creation of Employment- Entrepreneurship generates
employment. It provides an entry-level job, required for gaining
experience and training for unskilled workers.

 Innovation- It is the hub of innovation that provides new product

ventures, market, technology and quality of goods, etc., and increase
the standard of living of people.

 Impact on Society and Community Development- A society

becomes greater if the employment base is large and diversified. It
brings about changes in society and promotes facilities like higher
expenditure on education, better sanitation, fewer slums, a higher
level of homeownership. Therefore, entrepreneurship assists the
organisation towards a more stable and high quality of community
life.
 Importance of Entrepreneurship
• Increase Standard of Living- Entrepreneurship helps to
improve the standard of living of a person by increasing the income.
The standard of living means, increase in the consumption of various
goods and services by a household for a particular period.
• Supports research and development- New products and services
need to be researched and tested before launching in the market.
Therefore, an entrepreneur also dispenses finance for research and
development with research institutions and universities. This
promotes research, general construction, and development in the
economy.
 Types of Entrepreneurship
1. Small Business Entrepreneurship- These businesses are
a hairdresser, grocery store, travel agent, consultant,
carpenter, plumber, electrician, etc. These people run or
own their own business and hire family members or local
employee. For them, the profit would be able to feed their
family and not making 100 million business or taking over an
industry. They fund their business by taking small business
loans or loans from friends and family.
 Types of Entrepreneurship
2. Scalable Startup Entrepreneurship- This start-up
entrepreneur starts a business knowing that their vision can
change the world. They attract investors who think and
encourage people who think out of the box. The research
focuses on a scalable business and experimental models, so,
they hire the best and the brightest employees. They
require more venture capital to fuel and back their project
or business.
 Types of Entrepreneurship
3. Large Company Entrepreneurship-These huge
companies have defined life-cycle. Most of these
companies grow and sustain by offering new and innovative
products that revolve around their main products. The
change in technology, customer preferences, new
competition, etc., build pressure for large companies to
create an innovative product and sell it to the new set of
customers in the new market. To cope with the rapid
technological changes, the existing organizations either
buy innovation enterprises or attempt to construct the
product internally.
 Types of Entrepreneurship
4.Social Entrepreneurship-This type of entrepreneurship
focuses on producing product and services that resolve
social needs and problems. Their only motto and goal is to
work for society and not make any profits.
 Entrepreneurial Styles
1.An innovative entrepreneur is someone who is continually
coming up with new ideas and inventions. They often aim to
change the way people think or live. These people are
motivated, passionate, and obsessive. The thing that makes
innovators stand out is the originality of their ideas.
2. A hustler entrepreneur is continuously working towards
the bigger picture. They often start small and work hard to
solve problems with their own resources rather than raise
capital and pool resources creatively to meet their needs.
 Entrepreneurial Styles
3. A social entrepreneur is someone who wants to solve social
problems with their products or services. Their goal is to drive
positive change in the world rather than achieve big profits of
wealth. These entrepreneurs tend to start Not-for-Profit
organizations or charitable companies and dedicate themselves to
social good.
4. An imitator entrepreneur uses existing business ideas and
aims to improve them. Their purpose is to make sure products
and services are better and more profitable. This entrepreneur
is a combination of innovator and hustler. They are ultimately
solving problems with a prototype that already exists. Imitators
are self-confident, determined, and learn from other's mistakes.
 Entrepreneurial Styles
5. An intrapreneur fosters an entrepreneur’s
characteristics for a large-scale organization to create and
lead improvements to increase profitability. This person has
the security of a salary, the backing of an established
brand, and the freedom to innovate services or products.
 Personal Traits of Entrepreneurship
1. Disciplined: Those who are able to create and execute plans
even without external factors holding them accountable have
a competitive edge in business. When an entrepreneur has
self-discipline they are able to manage the urge to
procrastinate and can take decisive action when needed.
2. Creativity : Though creativity is often associated with
artistic output, it is an important trait for all entrepreneurs
to have. Creativity doesn’t only apply to visual elements or
branding. Entrepreneurs who are able to creatively solve
problems and think outside of the box when facing everyday
business challenges, they are able to quickly pivot and
implement necessary solutions that lead to business growth.
 Personal Traits of Entrepreneurship
3. Self-awareness: Entrepreneurs who have a sense of
self-awareness that they are able to apply professionally to
achieve business success. When an entrepreneur is self-
aware they are able to own up to their strengths and
weaknesses related to running their business.
4. Resourcefulness : Many entrepreneurs are faced with
tasks and challenges they have never faced before. The
ability to be resourceful is a mindset that helps
entrepreneurs reach lofty goals without a clear way to
achieve them.
 Personal Traits of Entrepreneurship
5. Process Oriented: Having solid processes in place is
essential for any successful entrepreneur. In the world of
business, a process is a repeatable series of steps that help
those working within a business to complete necessary
tasks. Implementing processes in various areas of the
business can prevent waste, allowing business owners to
scale and grow their businesses.
6. Empathy : Empathy is an essential trait for entrepreneurs.
Whether a business owner manages a large team of employees or
works directly with their customers as a high-performing
solopreneur, they must be able to connect with others on a
genuine level.
 Personal Traits of Entrepreneurship
7. Communicative: According to research, the top three
communication skills for leaders are effective listening,
getting a message across clearly and vividly, and providing
feedback in a supportive manner. These skills can put
entrepreneurs at a competitive advantage.
8. Self-motivated Entrepreneurs must be able to work
through creative ruts and points of feeling uninspired to
keep their businesses going. This starts with knowing what
drives you to keep going and drawing upon necessary
inspiration when motivation is low.
 Personal Traits of Entrepreneurship
9. Confident: If you have an idea you want to bring to life
and share with others, you have to have the confidence to
see it through.
10. Flexible : To have a sustainable business and see long-
term success, entrepreneurs must be willing to pivot when
necessary. When an entrepreneur is flexible in their
approach, they are able to take advantage of new
opportunities as they come which can pay off in the long
run.
11. Risk-Taker : The ability to take a calculated risk is
one of the most valuable skills an entrepreneur can have.
 5M MODEL
 5M model is a business management method according to
5 elements Material - Machine - Man - Method -
Measurement.
 The 5M model is widely applied in business fields of
enterprises and brings outstanding efficiency.
 5M MODEL
Specifically, the 5M model is expressed through 5
elements
• Material: The materials and components used in the
product manufacturing process.
• Machine: Types of machines and equipment to support the
product production process.
• Man: The role of people in operating equipment and using
materials to manufacture products.
• Method: The method used to create the product.
• Measurement: Check the quality of the product after it is
completed.
 5M MODEL
1. MAN
 Human resources are considered an important factor for
success in the management process. If a business has
good products and raw materials, but without quality
human resources, it is also useless. To make those
materials become perfect products, enterprises must
possess an elite workforce.
 The Manpower factor is considered the most important
M in the 5M management model. This is an irreplaceable
element and plays the role of connecting the remaining 4
elements together.
 5M MODEL
2. MEASUREMENT
 In the 5M model, the Measurement element plays an
important role to evaluate the efficiency of the production
process or provide services to customers. This element
ensures that all products or services are strictly measured
and controlled to ensure the quality of the product or service
meets the specified standards.
 Measurement also enables businesses to collect and analyze
data to make more accurate business decisions. This factor
plays an important role in improving the quality of products
and services, ensuring consistency and standardization of
production processes, thereby benefiting both the
organization and the customer.
 5M MODEL
3. MACHINERY & EQUIPMENT
 Machinery and equipment determine the quality, time and
quantity of products created. Therefore, managers need to
continuously improve equipment and machinery to meet the
production needs of enterprises.
 In addition, to ensure that machinery and equipment are
always in the best condition, enterprises need to take the
following measures:
• Regularly check and evaluate the condition and accuracy of
machines and equipment during product production
• Develop standards for inspecting machinery and equipment
• Monitor and check the maintenance process regularly to ensure
the production process is continuous and efficient.
 5M MODEL
4. MATERIALS
 Raw materials are an important factor, required in any
production process. If there is any error in the material
preparation process, the quality and features of the
product will be changed.
 In addition, raw materials are also a factor affecting the
assembly of equipment and the processing of goods. If
the wrong materials are used, the production line will be
affected and cause serious product defects. This can
also add to costs due to unsatisfactory finished
products.
 5M MODEL
4. MATERIALS
 Some specific requirements for materials such as:
• Enterprises need to carefully inspect and monitor the
quantity, type and quality of raw materials. To do this,
businesses should develop their own rules and standards
appropriate to the field in which they are doing business.
• When a product has a material defect, the enterprise should
conduct testing to find the cause of the defect. If the fault
comes from the supplier, the business needs to work again and
quickly improve the quality of the materials.
• If a serious defect occurs, the supplier must take back the
substandard material and compensate.
 5M MODEL
5. METHODS
 Good implementation methods will help the production
process to take place most efficiently and optimally.
Besides, with a good implementation method, the
manufacturer will not exceed the standards and
production processes set out. Since then, productivity as
well as quantity and quality of goods have been
significantly improved.
 At present, almost all enterprises have their own
standard set of implementation methods.
COMMUNICATION SKILL FOR ENTREPRENEURS
COMMUNICATION SKILL FOR ENTREPRENEURS
COMMUNICATION SKILL FOR ENTREPRENEURS
COMMUNICATION SKILL FOR ENTREPRENEURS
COMMUNICATION SKILL FOR ENTREPRENEURS
COMMUNICATION SKILL FOR ENTREPRENEURS
1. Verbal Communication.
This is the ability to communicate clearly and effectively
through spoken words. It is important to be able to express
yourself clearly when communicating with others, especially
when trying to persuade or influence them.
2. Nonverbal Communication.
This is the ability to communicate through body language,
facial expressions, and other nonverbal cues. It is just as
important as verbal communication, because it can often
convey more meaning than words alone.
3. Written Communication.
This is the ability to communicate clearly and effectively
through writing. It is important to be able to write clearly
and concisely when communicating with others, especially
when trying to persuade or influence them.
COMMUNICATION SKILL FOR ENTREPRENEURS
4. Interpersonal Communication
This is the ability to communicate effectively with others.
It is important to be able to build relationships and
understand others communication styles in order to be an
effective communicator.
5. Presentation Skills
This is the ability to communicate effectively through
presentations. It is important to be able to engage your
audience and deliver a clear and concise message when
presenting.
6. Public Speaking
This is the ability to communicate effectively in front of an
audience. It is important to be able to engage your audience
and deliver a clear and concise message when speaking in
public.
COMMUNICATION SKILL FOR ENTREPRENEURS
7. Listening Skills
This is the ability to listen attentively and understand what
others are saying. It is just as important as speaking,
because it allows you to truly understand the needs and
wants of others.
8. Negotiation Skills
This is the ability to negotiate effectively in order to reach
a mutually beneficial agreement. It is important to be able
to understand the needs and wants of both parties involved
in a negotiation in order to reach a fair agreement.
 Business plan is a written document prepared by
entrepreneur that describes all the relevant external and
internal elements involved in starting new venture. It is an
integration of functional plans such as marketing, finance,
manufacturing and human resource plan.
A business plan is a blue print of step-by-step process
that would be followed to convert business idea into
successful business venture.
 OBJECTIVE OR IMPORTANCE OF BUSINESS PLAN

 To give direction to the vision formulated by the

entrepreneur.

 To monitor the progress after implementing business

plan.

 To persuade others to join business.

 To seek loans from financial institutions.

 To visualize concept in terms of market availability,

organizational, operational, and financial feasibility.

 To guide entrepreneur in actual implementation of plan.

 To identify actual strength and weakness of plan.

 OBJECTIVE OR IMPORTANCE OF BUSINESS PLAN

 To identify challenges in terms of opportunities and

threats from the external markets.

 To clarify ideas and identify gaps in management

information about their business, competitors and
market.

 To identify the resources that would be required to

implement the plan

 To document ownership arrangements, future prospectus

and projected growth of the business venture.
BUSINESS PLANNING PROCESS
BUSINESS PLANNING PROCESS
 Idea generation: is the first step in the business
planning process. This step differentiates entrepreneur
from usual business. An entrepreneur may come up with
new business idea or may bring in value addition to
existing product in the market. Sources of new idea for
entrepreneurs are :

o Consumers/ customers

o Existing companies

o Research and development

o Employees

o Dealers, retailers
BUSINESS PLANNING PROCESS
 Environmental scanning: once the entrepreneur is
through the idea generation stage, next entrepreneur is
required to conduct environmental scanning which
includes analyzing external and internal environment that
affects business idea.

External environment comprises of:

 Socio cultural appraisal: it gives brief overview about

the culture and tradition existing in society. It is
comprised of values and beliefs of people which
determine the acceptance of product by customer in the
market.
 BUSINESS PLANNING PROCESS
External environment comprises of:

 Technological appraisal: it assesses various

technological options available to convert an idea to
product. It also provides a brief overview about
technological updating.

 Economic appraisal: it assesses the status of the

society in terms of economic development, per capita
income, national income, consumption pattern in the
business.
 BUSINESS PLANNING PROCESS
External environment comprises of:

 Demographic appraisal: it assesses the population

pattern of given geographic area. This includes sex, age
profile, distribution etc.

 Government appraisal: it assesses the various

legislation, policies, incentives formulated for particular
industry. Flexibility of these rues determine ease for
entrepreneur in terms of opening venture in particular
area.
 BUSINESS PLANNING PROCESS
 Internal environment comprises of :

 Raw material: it refers to in terms of availability of raw material

required for the process of production. If the material availability
is at distance place and is very expensive then entrepreneur should
give second thought to the same.

 Production/ operation: it assesses the availability of various

machineries, equipment's, tools and techniques that would be
required for production.

 Finance: it studies total requirement of finance in terms of start up

expenses, fixed expenses, running expenses etc.

 Market: refers to study on potential customer and target

customers in market.
 BUSINESS PLANNING PROCESS
 Internal environment comprises of :

 Human resource: refers to demand and supply of required human

resource in market and estimation of expenses to be incurred on
human resource.

 Feasibility analysis: refers to conducting detailed analysis in

relation to every aspect relevant to business and determining
credibility of business.

 Market analysis: is conducted to estimate the demand and market

share for proposed product and service in future. Demand and
market analysis is based on factors like consumption pattern,
availability of substitute goods and services etc.
 BUSINESS PLANNING PROCESS
 Internal environment comprises of :

 Technical and operational analysis: is to assess operational ability

of proposed business enterprise. Technical or operational analysis
collects data on following parameters :
 Material availability
 Material requirement planning Plant
location
 Plant capacity
 Machinery and equipment.

 Marketing plan: lays down the strategies of marketing which can

lead to success of business plan. Strategies are in terms of
marketing mix which includes (product, price, place, promotion)
which determines the potential demand of customers for product in
the market.
 BUSINESS PLANNING PROCESS
 Internal environment comprises of :

 Production plan / operational plan: production plan is drafted for

manufacturing sector where as operation plan is designed for
business into service sector. It comprises of strategies on
parameters such as location layout, cost, availability of material,
human resource etc.

 Organizational plan: defines type of ownership pattern in company,

sole trading concern, family business, private or public limited
company etc.

 Financial plan: financial plan indicates the requirement of proposed

business enterprise. Which includes fund flow, cash flow statement,
breakeven point, projected ratio, and projected balance sheet?
 BUSINESS PLANNING PROCESS
 Internal environment comprises of :

 Project report preparation: project report is a written document

that describes step by step strategies involved in starting and
running business.

 Evaluation, control and review: as company operates in dynamic

environment company has to monitor and review strategies and
policies to stay in line with competition existing in market.
MARKETING PLAN
Market plan refers to plan that describes market condition
and strategy related to how products and services will be
distributed, priced and promoted in market.
INDUSTRY ANALYSIS: prior to preparation of market plan
entrepreneur are required to conduct industry analysis
section of the business plan. Industry analysis provides
information about national and local market that affection
marketing operation of company.
Industry analysis also involves collecting information about
competitors which is available in form of secondary data by
news papers, article, websites, catalogs, promotions,
interview with distributors, customers etc.
MARKETING PLAN
Characteristics/Importance of Market Plan
 It should provide strategy for accomplishing the
company mission and goal.
 It must provide for the use of existing resources and
allocation of all equipment, financial resources, and
human resources in company.
 It should provide for continuity so that each annual
marketing plan can successfully meet long term goals
and objectives of company.
 It should be simple and specific in nature so as to
provide appropriate road may in terms of planning
market strategy for company.
 It should focus on criteria to be evaluated to assess
market success of the company.
MARKETING PLAN
MARKETING PLAN
STEPS IN PREPARING MARKET PLAN
1. Defining business situation refers to understand past and
present business achievements of new venture. It gives
basic insight about scenario persisting in market, response
of customers to new venture in market, and helps in
predicting customer acceptance of company product in
market.
2. Defining target market: target market refers to group of
potential customers towards which venture aims its market
plan. Knowledge of target market will provide basis for
determining appropriate market action strategy to meet
needs of customers. Target market also includes market
segmentation which involves process of dividing market into
definable and measurable groups for purpose of targeting
market strategy.
MARKETING PLAN
STEPS IN PREPARING MARKET PLAN

3. Considering strength and weakness: strength of

business refers to core areas which company is specialized in
which may be abundance experience of company in similar
area of business and weakness may be in terms of
production capability, or layout which permits limited space
for equipment and operation.

4. Establishing goals and objectives: marketing goals of the

company should be clear and specific in nature as it has to
clearly indicate about nature of product, target customers,
sales promotion, advertising support etc.
MARKETING PLAN
STEPS IN PREPARING MARKET PLAN
5. Defining market strategy and action program: it refers to
specific activities outlined to meet the venture, business plan
objectives and goals.

6. Budgeting marketing strategy: after drafting marketing plan

entrepreneur is required to estimate total expenses to be incurred
in process of implementing market plan. Expense of marketing plan
should be in line with planned expense of entrepreneur.

7. Implementation of market plan: market plan should be

implemented in the company, should be informed to the workforce
involved in marketing activity, it acts as guiding element to direct on
strategies which will make marketing process effective.
MARKETING PLAN
STEPS IN PREPARING MARKET PLAN

8. Marketing progress of marketing actions: marketing of

plan involves tracking specific results of marketing effort.
Sales data of product, data gathered by market survey are
few methods of monitoring progress of market plan.
 FINANCIAL PLAN
It studies total requirement of finance in terms of
start up expenses, fixed expenses, running expenses etc.
Financial plan indicates the requirement of proposed
business enterprise. Which includes fund flow, cash flow
statement, breakeven point, projected ratio, and
projected balance sheet?
FINANCIAL PLAN
 FINANCIAL PLAN
 Operating and capital budget: before developing pro forma income
statement, entrepreneur should prepare operating and capital
budgets. If entrepreneur is running sole trading concern than he is
responsible for budgeting decision and if it is partnership or other
form of legal concern then budgeting decisions are to be taken by
assigned member of business.

 Pro forma of income statement: refers to projected net profit

calculated from projected revenues minus projected costs and
expenses. It should comprise of sales on monthly basis, insight on
operating expenses, salaries and wages should highlight on total
number of employees employed in company.
 FINANCIAL PLAN
 Performa of cash flow: refers to projected cash
available calculated from projected cash accumulation
minus projected cash dismemberment. It is result of
difference between actual cash receipts and cash
payments. Cash flow takes place in company only when
payments are made or received.

 Performa of balance sheet: summarizes the projected

assets, liabilities, and net worth of new venture. Balance
sheet represents the position of the business at end of
year. Assets represent the items that are owned or
available to be used in venture operation.
 FINANCIAL PLAN
 Break even analysis: entrepreneur in initial stage is
required to know when profit may be achieved which will
help him understand financial potential of tart up
business. BEA is useful technique to analyze how many
units have been sold or how much sales order has to be
achieved in order to break even. Break even is volume of
sales where venture neither makes profit nor loss.

 Performa for sources and application of funds:

summarizes projected source of fund available to the
venture and how these funds will be distributed.
 PROJECT REPORT AND FEASIBILITY STUDY
1. Cover page: page of the project report should contain the
title of the project, name, address so that the readers of the
report can easily contact entrepreneur relating to queries of
report.

2. Table of contents: table of content are compiled after the

main body of the project report is finalized. Topics covered in
the project report along with the page number should be
mentioned in the project report.

3. Executive summary: should be written after the completion of

project report as it gives brief gist of project. Length of the
executive summary should not exceed more than two pages.
 PROJECT REPORT AND FEASIBILITY STUDY
4. Company information and industry: here they should explain the
ownership form of the company, which should contain the reason for
venturing into the proposed business plan, how you plan to satisfy the
needs and expectation of the potential customers and existing
competitors in industry. It should also include SWOT analysis of
company.

5. Technical plan: in this part of the report, the key aspect analyzed
during the technical feasibility of the report should be highlighted.
The choice of the product and service to be offered should be
justified. Report should be able to explain how the product of the
company is creative and innovative from the existing product in the
market.
 PROJECT REPORT AND FEASIBILITY STUDY
6. Marketing plan: this aspect of the product should focus on the industry
and market feasibility conducted at earlier stage. It should describe about
the pricing policy, findings of market research, how large is the market for
the product to be offered by the company, details about marketing
strategy adopted by the company to promote the product, target
Customers Company is focusing on.

7. Operations plan: it describes about the manufacturing and

service delivery process to be utilized for production of chosen
product and service. It should explain about the innovation brought
in the process of production which makes it better when compared
to existing competitors. It should also focus on the location,
availability of resources required for production.
 PROJECT REPORT AND FEASIBILITY STUDY
8. Organizational plan: it gives information about the management team
who are part of the company. It focuses on the management and technical
skills possessed by the employees in company and how it will prove to be
beneficial for the work process to be carried in the company. It should
highlight as though why even after possessing such efficient skills they
preferred joining your organization.

9. Project timeline: this chapter explain about the network diagram which
explains about the time duration required for the project. Diagram explains
about the various activities in the project, which are sequentially organized
and the time duration required for the execution of the project is arrived
by estimating time required for completion of every activity for the
formation and later process of the company.
 PROJECT REPORT AND FEASIBILITY STUDY
10. Critical risk and assumption: it explain about the various assumption
made during the formation of the company E.g. rather then considering the
previous sales forecast for similar product to be offered by the company, the
organization may have gone in for expert advise, their may be various risks
related to the product and kind of service company is planning to offer in the
market all these details should be highlighted in this part of the report.

11. Social plan : it explains about how company project will benefit the
society. It should highlight how company will generate employment
opportunities, lead to skill development of local
people, provision of goods and services to be provided to the local
people, utilization of local resources etc. It should also include
various help provided by the financial agencies and government to
start small scale industries in country.
 PROJECT REPORT AND FEASIBILITY STUDY
12. Exit strategy : this is the negative aspect of the business but the
company should explain how they would close down the business if the
company is not able to earn the expected profitability, the investors will
be keen to know as though how their investment can be recovered in such
situation.

13. Financial plan: it is important part of the report which will contain
brief content all the sections with numbers in monetary terms. It explain
about the financial composition of the company, various sources through
which company has raised required finance, total expenditure incurred by
the company which will be effectively explained through the means of
break even analysis and ratio analysis in the company financial report.
 PROJECT REPORT AND FEASIBILITY STUDY
14. Conclusion: this summarizes the key aspect of the report in
concise manner. It should end the report on a positive note so that
the readers develop positive image about the report.

15. Appendices: it contains conclusion part of the report and

supplement data which is important part for the report but cannot
be included in the initial topics of the report.
 INTERNATIONAL ENTREPRENEURSHIP
International entrepreneurship is the process of an
entrepreneur conducting business activity across the
national boundaries. It may consist of exporting, licensing,
opening sales office in another country etc.
International entrepreneurship is defined as
development of international new ventures or start ups
that from their inception engage in international business,
thus viewing their operation domain as international from
the initial stages of international operations.
 INTERNATIONAL ENTREPRENEURSHIP
IMPORTANCE OF INTERNATIONAL ENTREPRENEURSHIP

 Entrepreneur can sell their products in foreign market

which have reached the maturity stage of their life

cycle in domestic markets and earn profit by their sales.

 Companies which are incurring high level of fixed costs

can lower their manufacturing costs by spreading these

fixed costs over long number of units by selling their
products in global market.

 Entrepreneur can improve their entrepreneurial

competitiveness and enhance reputation.
 INTERNATIONAL ENTREPRENEURSHIP
IMPORTANCE OF INTERNATIONAL ENTREPRENEURSHIP
 Entrepreneur in process of satisfying foreign customers
have to produce product as per their quality expectation
by which entrepreneur will not only produce quality
product in international market but also in national market.
 Internationalization of business will teach entrepreneurs
how to cultivate habit of customer relation management
(CRM )
 Entrepreneurs can hire motivated, multi lingual employees;
learn constantly about the foreign markets. They will think
globally and start developing an outlook from a global
prospective.
 INTERNATIONAL ENTREPRENEURSHIP
OPPORTUNITIES OF INTERNATIONAL ENTREPRENEURSHIP

1. Growing Emerging Markets: As developing nations approach the

developed world's living standards, they will see the highest economic
development. If you want your company to expand quickly, think about
selling in one of these developing areas. Which marketplaces you should
favour can be influenced by language, financial stability, the local
economic system, and cultural considerations.

2. Demographic Shifts : While the population of many developing

nations is still quite young, the population of the industrialized world is
ageing. Businesses that target wealthy retirees can prosper by
concentrating on industrialised nations, while those that target young
families, moms, and kids can find success in Latin America, Africa, and
the Far East.
 INTERNATIONAL ENTREPRENEURSHIP
OPPORTUNITIES OF INTERNATIONAL ENTREPRENEURSHIP

3. Speed of Innovation : As more new businesses create innovative

new products and enhanced versions of established products,
innovation is accelerating. As more corporations in developing nations
acquire the know-how to innovate successfully, Western companies can
no longer assume that they will always be at the forefront of
technological advancement.

4. More Informed Buyers : With enhanced and accelerated

communication channels, customers worldwide can now purchase
products from any location across the globe and gain access to
information about their desired purchases. As pricing and quality data
become readily accessible across all markets, businesses will
experience a decline in their ability to exert control over pricing,
particularly the power to establish varying prices in different markets.
 INTERNATIONAL ENTREPRENEURSHIP
OPPORTUNITIES OF INTERNATIONAL ENTREPRENEURSHIP

5. Clean Technology : Environmental factors currently exert a

significant influence in Western countries and will increasingly do
so on a global scale. It is imperative for businesses to consider the
environmental consequences of their regular operations. One
strategy they can adopt is promoting environmentally friendly
technologies in the international market. The advantage of
targeting this market lies in its projected faster growth rate
compared to the overall economy.
 INTERNATIONAL ENTREPRENEURSHIP
ENTREPRENEURIAL ENTRY INTO INTERNATIONAL
BUSINESS
The modes of entering an international business in divided
into three categories;
1.Exporting: selling goods made in one country to another
Indirect exporting involves using a foreign purchaser (or
export management firm) in a local market or selling
goods to another country through a person in the
entrepreneur’s home market
Direct exporting uses independent distributors or selling
goods to another country by taking care of the transaction
 INTERNATIONAL ENTREPRENEURSHIP
ENTREPRENEURIAL ENTRY INTO INTERNATIONAL
BUSINESS
2. Non-equity arrangement: Doing international business through an
arrangement that does not involve any investment

 Licensing: Allowing someone else to use something of the

Company’s

 Entrepreneur who is a manufacturer (Licensee) giving a

foreign manufacturer (licensor) the right to use a patent,
trademark, technology, production process or product in
return for the payment of royalty
 INTERNATIONAL ENTREPRENEURSHIP
ENTREPRENEURIAL ENTRY INTO INTERNATIONAL
BUSINESS
2. Non-equity arrangement:
 Turn-Key Projects: Developing and operational zing something
in a foreign country

 Management Contracts: A method for doing a specific

international task

 Management techniques & skills

 acquiring foreign expertise without giving ownership of

resources to foreigner
 INTERNATIONAL ENTREPRENEURSHIP
ENTREPRENEURIAL ENTRY INTO INTERNATIONAL
BUSINESS
The modes of entering an international business in divided
into three categories;
3. Direct Foreign Investment: the percentage of ownership is
related to the amount of money invested, the nature of the
industry, and the rules of the host government.

 Minority interests: Having less than 50% ownership position

 Majority Interest: having more than 50% ownership position.

 Joint Venture: Two companies forming a third company

 Mergers: An entrepreneur can obtain 100% ownership.