Entrepreneurship development and Industrial Consultancy

Module.2 concept and working of entrepreneur

Lesson 12
MANAGING COMPETITION AND ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES

12.1 Introduction

Entrepreneurship Development Programmes (EDPs) are aimed at developing the capabilities of competitive entrepreneurs by providing necessary appropriate training. Based upon some research studies, it has been found that the individuals with high achievement orientations tends to be successful entrepreneurs and a country which have large number of such personnel tends to have higher economic progress.

12.2 Objective of Entrepreneurship Development Programme

1. Inculcate and reinforce the entrepreneur’s capability.

2. Helps in selection of products and formulate project proposal for the same.

3. Provide detail knowledge about setting up of enterprise.

4. Make them familiar with source and financial help and other support for establishing an enterprise.

5. Provide guidance and help in increasing necessary managerial skills to start and run an enterprise.

6. Highlight the advantage and disadvantage of becoming an entrepreneur.

12.2.1 Topics for EDPs

1. Introduction: This should cover aspects about basic general knowledge of Entrepreneurship. For example factors affecting the industries & particularly small and medium scale industries, importance of entrepreneurs in economic progress of the country, support available from government and other sources for establishing an enterprise.
2. Motivation of entrepreneurs: This is very critical aspect as it will ultimately result in establishment of an enterprise by participants.

3. Managerial know how: To start any enterprise it is necessary to have knowledge about management. This imparts basic and specific knowledge regarding important managerial functions like finance, marketing, production etc.

4. External help: Government and some non government organizations tender necessary support to entrepreneurs/small scale industries. The participants of EDPs are given knowledge about obtaining support from such sources.

5. Feasibility report: Knowledge about preparation and analysis of project feasibility report is provided.

6. Enterprise visits: Finally plant/ industrial visits are arranged so as to give a feel of real life situations to establish and run an enterprise.

To expand and to build a strong brand from a small enterprise, entrepreneur should have knowledge about competition, and competitors. In the globalized world competition is coming from all directions. Entrepreneur needs to deal with competitors by a well designed and well executed marketing plan. And to prepare effective marketing strategy, an enterprise must study competitors as well as actual and potential customers. Enterprise needs to identify competitor’s strategies, objectives, strengths and weaknesses. Enterprises closest competitors are those seeking to satisfy the same customer’s needs and making similar offers. An enterprise should also pay attention to latent competitors who may provide new or other ways to satisfy the same need. An enterprise should find out its competitors by adopting marketing and industry based analysis. From competition's view point organizations can be categorized as either market leader, market challenger, market follower or market nicher strategy. Entrepreneur needs to monitor the moves of these organizations. A market leader possess largest market share. In order to remain dominant, market leader searches for ways to expand total market demand, tries to protect its current market share and even tries to increase the market share. A market challenger attacks the market leader and other organization in an aggressive way to capture higher market share by adopting general as well as specific strategies. A market follower is a runner up organization which is interested to maintain its market share. A market nicher caters to small market not served by larger enterprises.