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8/8/2019 ETP Seminar at GIFT - Jan 7, 11
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Entrepreneurship as Career Option
January 7, 2011
By
Muhammad Javed Afzal
Manager Training Services, SMEDA
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Scheme of Presentation
Introduction to Entrepreneurship
Role of Academia in promotingEntrepreneurship
Role of SMEDA in EnterpriseDevelopment
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Introdu
ction toEntrepreneurship
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Introduction to Entrepreneurship
Entrepreneurship is the practice of startingnew organizations or revitalizing mature
organizations, particularly new businesses
generally in response to identified
opportunities.
(Wikipedia)
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Why to Become an Entrepreneur?
Limited Employment Opportunities
Unfulfilled Market Needs
Limited Compensation as an
Employee
One Can Make Own Decision
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If you have a Boss.
Keep praying..
Give me the wisdom to understandGive me the wisdom to understand
my Bossmy Boss
Give me the love to forgive himGive me the love to forgive him
Give me the patience to understandGive me the patience to understand
his deedshis deeds
But Dear God, Dont give me PowerBut Dear God, Dont give me Power
Because if you give me the PowerBecause if you give me the Power
I WILL BREAK HISI WILL BREAK HIS
HEAD .!!!!!!!!!!!HEAD .!!!!!!!!!!!
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Remember Ever-famous 2-Point Universal Rule
for Doing a Job Successfully
Point No. 1 Boss is ALWAYSRIGHT
Point No. 2 If Boss is WRONG, Go to
Point No. 1
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Who are Entrepreneurs?
Prefer for moderate risk Confidence in ability
Creative thinking
Act on needs & opportunities
Ability to interact with people
Desire for feedback
High level of energy
Future orientation
Ability to organize
Values achievement over money
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Potential Limitations of Entrepreneurs
Uncertainty of income
Risk of losing your entire invested capital
Long hours and hard work
Lower quality of life until the business getsestablished
Complete responsibility
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Entrepreneurship Cycle
Decision to become an Entrepreneur
Generation ofIdeas
Validation and Selection of Business
Developing Business Plan
Getting Resources and Start up
Management ofResulting Products/Services
Expanding Business -- Growth
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Process of Entrepreneurship 1/2
1. Sources ofIdea Generation
2. Validation & Selection ofIdea Sources
3. Important Consideration in Validation &
Selection ofIdea
4. Types of Businesses
5. Business Plan
6. Market Analysis
7. Competition Analysis
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Process of Entrepreneurship 2/2
8. Selection of Location
9. Inputs (Raw Material & Services)
10. Technology & Machinery
11. Process Design
12. Human Resource
13. Marketing the Product/Service
14. Selecting the Right Distribution Channel
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Types of Businesses
Manufacturing
Part
Whole
Assembly
Trading
Distribution
Services
Part
Whole
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Business Plan
Executive Summary Profile of Entrepreneur (s)
Project Brief (Capacity, Process Flow, Raw M/t, Project Cost)
Industry Analysis
Produ
ct or
Servi
ce Des
cription
Target Market Analysis
Marketing Plan/Techniques
Strategic Position & Risk Assessment
Technology Plan
Management & Organization 5 Year Financials (IS, C F S, B S, IRR, Payback, NPV)
Graphs and Charts Pre-Configured with Financial Data
Appendices
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Can I Become an Entrepreneur ?
Conduct a Self-SWOT-Analysis
Analyse Yourself with Respect to Your:
Strengths and Weaknesses
So as to:
Identify Opportunities for yourself
and
Avoid potential Threats for yourself
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Role of A
cademia in
Promoting Entrepreneurship
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Gap between Academia & Industry
Mismatch ofHEIs pass-outs & Industry Need
Lack ofcompetency based curriculum development
Supply driven programs
Academias capacity in action oriented research
Lack of On-the-Job Training (OJT)
Industry doesnt realize the use of trained workforce
as a competitive tool Industry not willing to invest in R& D
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Role of Academia In Promoting
Entrepreneurship
Surveys for HRneeds
EDCs, Business Incubators
NetworkingGroups - Shell Livewire, Active Citizens Program
Entrepreneurship Forums
Business Mentoring
R& D (with Industry)
Promote Entrepreneurship Beyond the Classroom
Competitions for Business Plan, BusinessIdeas & Proje
cts et
c.
Compulsory OJT & Internship
Sector SpecificResearch Oriented Projects
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Role ofSMEDA in
Enterprise Development
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Estimated Number: 3.2 million (99% SMEs)
Value Addition in Manufacturing: 35%
Contribution to GDP: 30%
Share in Exports: 25%
Contribution in Employment: 78%
SMEs in Pakistan
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Enterprises by Employment Size
97%
2.50%
0.23%
0.1%
0.09%
0% 20% 40% 60% 80% 100%
1 to 9
10 to 49
50 to 99
100 to 199
200 & above
Source: Census of Establishments
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Major Problems ofSMEs
Technology ~ Low Technology Base
Financing ~ Lack of Access to Finance
Marketing ~ Lack of Market Information
Human Resources ~ Limited HRD Skill Development
Regulatory ~ Govt. Rules Impediments
Low Value Addition
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Operational Strategy
Building a Conducive Environment Proposing and facilitating changes in Policy and Regulatory Environment
Reducing the Cost of Doing Business
Facilitating Government-SME Interface
Developing Clusters and Sectors
Sector Studies, Strategies and Implementation
Cluster Development
Common Facility Centers (CFCs)
Provision and Business Development Services
Investment Facilitation
Technology, Training, Finance, Business Information, Marketing, and Legal Support
Productivity and Competitiveness Improvement
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Enterprise Development Activities
Pre-feasibilities / Business Plans
BDS in Financial, Training, Marketing, Technical etc.
Cluster Development
Sector Development
Industry Support Cell
Legal and Regulatory Support --- Operational matters
Business Matchmaking --- Potential partners
S
MEDA Acc
ounting Pac
kage (S
MAP) Public Sector Development Programs
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Regional Business Offices
04 Provincial Offices
22 RBCs in major cities all over the country.
Functions ofSMEDA RBC
Business Counseling
Project Identification / Implementation
Business Development Services
Business Information
Business Match Making
Assistance in Fund Raising
Legal and regulatory procedures
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SMEDA Publications
Trade SecretsSecrets of E-Commerce
How to Approach Banks
Making a Mark
Looking Good
Creative Expression
A Stitch in Time
Inventing the Future
Trade in Services
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Off-Shoots ofSMEDA
BSF
CSF
PHDEC
TUSDEC
Dairy Pakistan
PGJDC
PASDAC
Furniture Pakistan
AHAN
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Technology Up-gradation
Technology Up-gradation in
Electrical Fittings Cluster,
Sargodha
Help in up-gradation of bakeliteelectrical products manual press
being used by industry
Development of Automatic
Model Press through PrivateConsultant
Awareness Workshop and
Physical Demonstration to
SMEs
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Common Facility Centers (CFCs) 1/2
Computerized Pattern Designing, Sialkot
Artificial Insemination, Burj Attari
CFC for Light Engineering Cluster, Gujranwala
Auto Parts Design & Inspection Center , Lahore
Electrical Fittings Support Center (Bakelite) Sargodha
Wooden Furniture Support Center , Chiniot
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Common Facility Centers (CFCs) 2/2 G
ujranwala Business Centre Agro-Food Processing Facility, Multan
S I D C, Sialkot
Revival of CIP
WBIC, Lahore & Peshawar
HLFC, Hyderabad
GPDMC,Hyderabad
Red Chilies Pro
cessing Center
CFC Matta Mughal Khel
SME Sub-Contracting Exch. Gujranwala
Chromite Beneficiation Plant
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Lending Programs
Power Loom Up-gradation, Faisalabad
Rs.226 million disbursed by PSIC, SME Bank and
Union Bank
150 entrepreneurs benefited
Support Services for Agriculture Credit, Pattoki,
Sheikhupura & Phool Nagar
Rs.77.45 million disbursed
252 farmers got benefit
Cutlery Sector, Wazirabad
40 applications submitted to Bank of Punjab
15 million approved for 20 applicants
Plastic & PVC Pipes Sector, Lahore under Process
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Marketing Services
Website for Gems & Jewelry Sector
Website for Cutlery Cluster, Wazirabad
Website for Mango Cluster, Multan
Indian Consultant for Sportswear Cluster, Sialkotand Plastic Cluster Lahore
Women Entrepreneurs Information Network (WIN),www.win.org.pk
Women Entrepreneurs Association, Multan
Pak German Auto Network
Industrial Information Network (IIN) B2B Portal
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Glimpse ofSMEDATraining
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Concluding Thoughts
Entrepreneurship, as Way Forward forRepositioning Economy
Role of Academia in promotingEntrepreneurship
Role of SMEDA in Enterprise Development
Expectations from the Youth
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12 Steps to Startup
Take a Skills and Interests Inventory
Research and Evaluate Your Idea
Calculate Your Costs
Write Your Business Plan
Identify Source ofStartup Financing Choose a Business Structure & Name Your New Business
WorkThrough the Startup Paperwork Maze
Develop Your Marketing and Customer Service Plan
Court Your First Customers
Develop and Hire Support Team
Execute Your Marketing Plan
Hang Out Your Shingle
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Sources ofIdea Generation
Family & friends
Current employer
Chambers and trade associations
Government institution like SMEDA, TDAP, BOI,PCSIR
Research Institutes and Universities
Industry leaders/unit owners
International development agencies
Seminars, training programs and workshops
Internet
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Personal and Family background
Education background
Attitude
Estimate of market needs and volume
Ability to manufacture or deliver a service
Government policies and incentives
Investment size
Growth opportunity
Location
Availability of inputs
Validation & Selection ofIdea
Important Consideration
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Market Analysis
Does the market exist?
Consumption pattern of similar products
Market Research
Product / Idea testing
I
nternational trade data
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Market Analysis
Market Volume and Characteristics? FBS Data
Current production levels
Population growth
GDP andI
ncome Levels Government Policies Tariff Structure, duties, Subsidies
Focus Group discussions
Trends in Allied Products
Trends in Substitute Products
Distributor Retailer Feedback International Trends
International Trade Regulations
Foreign trade office in Pakistan and Pakistani MissionsAbroad
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Competition Analysis
Number of competitors
Location and Size
Marketing distribution and promotion
Pricing
Consumer loyalty
Comparative advantage
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Selection of Location
Proximity to market Proximity to suppliers of inputs
Government incentive packages
Land price Availability of infrastructure
Law and order situation
Acc
ess to Airport, Dry Port,S
ea Port etc.
Proximity to Established Trade Routes
Location of Competitors
Creditcy
cle in the area