1. The document discusses various concepts related to entrepreneurship including defining entrepreneurship as strategic risk-taking that results in new opportunities, and entrepreneurs as risk-taking individuals who pursue opportunities others may not see. 2. It also summarizes the process of entrepreneurship as involving creativity, innovation, and launching one's own venture which requires assuming risks to earn rewards. 3. The role of entrepreneurship in society is outlined as generating employment, contributing to GDP, improving economic efficiency, increasing the scope of economic activities, and impacting local communities through regional development and industrialization.

1. Managing New Ventures and
Entrepreneurship
Unit 12

2. Concept of Entrepreneurship

3.  Entrepreneurship
 Strategic thinking and risk-taking behavior that results in the
creation of new opportunities for individuals and/or
organizations.
 Entrepreneurship is the process of
creating new ventures (business)with new ideas.
 Entrepreneurship means being able to start
and manage your own business
 Entrepreneurs
– Risk-taking individuals who take actions to pursue
opportunities and situations others may fail to recognize
or may view as problems or threats.
Concept of Entrepreneurship

4.  Entrepreneurship is the process of creating new
venture. It involves creativity, innovation and
launching of one’s own venture. It requires
assumption of risks for reaping of rewards. It brings
together resources. It provides self employment to an
individual. It creates employment opportunity for
others.
 Entrepreneurship is the process of identifying
opportunities in the market place, arranging the
resources required to pursue these opportunities,
using these resources to exploit the opportunities
for better gains assuming risk.

6. 1.High level of confidence
2.Innovator
3.Risk bearer
4.Proactive
5.Desire for independence
6.Good manger
7.Understand failure is a part of game
8.Passionate about his or her business
9.Expert at networking

7. 1. Identify and evaluate opportunity
2. Concept development( develop a business plan)
3. Set-up the venture(Start-up)
4. Resourcing
5. Implement business plan
•

14. 1. Support law and professional code(follow the rules and
regulations of government and professional association)
2. Follow the business ethics( what is right and what is
wrong for the human being and society)
3. Create employment(not sending the job overseas)
4. Lead by example (try to be market leader and guide
others)
5. Establish a code of conduct
6. Stakeholder’s interest (but not at the expense of social,
environmental and moral considerations)

15. 7. Promote green business(pollution control)
8. Ethical publicity(not engage in unhealthy marketing)
9. Value the human resources(QWL)
10.Focus on consumer satisfaction(think of suitable
marketing mix-4Ps: Product, Price, Place and Promotion)

16.  Starting and promoting a business venture requires various resources and
facilities. For this, institutional support for the entrepreneurs is of great
importance.
 Institutional supports refers to the assistance provided to the entrepreneurs by
different types of institutions(Government and non-government
institutions). These institutions can promote entrepreneurship by formulate
policies, regulating and facilitating various activities to develop manufacturing
and service enterprises.
 The government, financial institutions, insurance companies, micro finance
companies, development banks and other private and non-governmental
organizations can help promote entrepreneurship in Nepal. Public and private
partnership(PPP) model will be instrumental to develop entrepreneurship in
this regard.
 The institutional support can be in the form of facilities, incentives and
policies.

18. 1.Easy access to capital
For small enterprise, it is difficult get loan financial institutions due to collateral
and high interest rate. In such situation, different intuitions provide loads in
favorable terms and conditions.
2. Development of competency
Competency includes managerial and other skills needed to operate
entrepreneurial venture. Various governmental and non-
governmental organizational lunch such type of campaign.
3.Access to infrastructure: Institutional support is needed to develop
infrastructural facilities such as transportation, communication, energy etc.
4.Supply of raw materials: New ventures, mainly those based on new
technology, required raw materials from global market. Such type of import based
industries need financial resources to get the raw materials in their factory
premises.

19. 5. Access to marketing
Marketing requires resources and information which are provided by
different institutions.
6. Create awareness
Awareness is very important to conduct entrepreneurial venture. The
clear distinction between being an entrepreneur and job seekers should
be clearly communicated to the general people. Government and non-
governmental agencies may play significant role in this regard.
7. Government policies
Government is the final author of the country.All sorts of entrepreneurial
ventures in a greater extent depends on the existing rules and regulations
imposed by the government.

20. Role of Entrepreneurship in Society
1. Generation of Employment :
An entrepreneur generates employment in the
economy and helps in reducing unemployment
as well as in improving the standard of living
of the people.
This is because more jobs mean more income
for the people and more revenue in the
economy.

21. Cont………..
2. Contribution to GDP (gross-total, domestic-
within a boundary of a country, Product-
output):
• Entrepreneurship contributes greatly to the GDP of
the country as entrepreneurship primarily involves
production and supply of goods and services with
a profit motive in mind.
• This is especially important in a country like
Nepal which has a huge unemployed population.
• This helps the overall growth of the country.
• Entrepreneurship is a cause and economic
development is effect.

22. 3.Improvement in Economic Efficiency
• Entrepreneurs make effective utilization of
resources which leads to increase in
production and productivity.
which
and
increase
use new technology
in production
• They also
facilitates
productivity.

23. 4. Increasing the Spectrum (range)
and Scope of Economic Activities
Development of entrepreneurship increases the
production of verities of goods and services in a
county.
This increases the range and scope of economic
activities.

24. 5.Impact on Local Communities
Entrepreneurs start new ventures in various
parts of the country.
Incentives and facilities granted by the
government serve as an attraction for starting
business in backward regions.
This promotes balance regional development.
 Local resources also get utilized.

25. 6. Industrialization
• Entrepreneurial activities are the prime source of
industrialization in developing countries.
• Such activities provide employment
opportunities.
• People learn new skills and earn more income.
• Unemployed people in agriculture sector move to
industries.
• New products are invented and marketed.
• New technology develops.

26. 7. Equitable Distribution
• Entrepreneurship develops equitable distribution
of wealth, income and political power.
• By starting risky new ventures and running
them successfully, they help reduce
concentration of wealth, income and political
power in the hands of big houses and global
enterprises.
• Self-employment increases.
• Local ownership and control is ensured.

27. 8. Capital formation
• Capital formation is addition made to the
stock of physical and human capital.
• Capital is an important factor for economic
development.
• Entrepreneurs stimulates investment interest
in new ventures to mobilize idle saving of
public.
• They fuel economic growth.

28. Structure of Entrepreneurial
Organizations
An organization is a collection of people working
together in a coordinated and structured fashion to
achieve one or more goals.
All Organizations have a management structure
that determines the relationships between functions
and positions and subdivides and delegates roles,
responsibilities and authority to carry out defined
tasks.
An organizational structure is the typically
hierarchical arrangement of lines of authority,
communications, rights and duties of an
organization

29. Forms of Organization
1. Sole proprietorship/ individual enterprise
(Business organization):
It is a type of enterprise/business owned and
run by one person and in which there is no
legal distinction between the owner and the
business entity.
Sole trader receives all profits and has
unlimited responsibility for all losses and
debts.

30. Cont..
Advantages
 easy to establish and desolve
 Quick decision
 Economy
 Independent
 Qualitative product
 Relation with consumers
 Secrecy
 Low cost of production
 Easy to advance loan
Disadvantages
Unlimited liability
Lack of capital
Uncertain life
Lack of competition
Lack of division of
labor
Low profit
Small scale business
Lack of credit facility

31. Cont..
2. Partnership organization:
A partnership is a business structure made up
of 2 or more people who distribute income
and losses between themselves
Advantages
 Adequate capital
 Easy to establish and dissolve
 Facility of advancing loan
 Quick and prompt decision
 Utilization of joint skills
 Sprit of cooperation
 Advantages of large scale production
 Better management
 Specializaion of work
Disadvantages
 Unlimited liability
 Lack of team sprit
 Lack of secrecy
 Lack of quick decision
 Difficult to transfer ownership
 Selfish manner

32. CONT..
3. Joint stock company:
it is a business organization that is owned
jointly by all its shareholders.
All the shareholders own a certain amount of
stock in the company, which is represented by
their shares.
 A joint stock company is a voluntary association
of individuals for profit having a capital divided
into transferable shares, the ownership of which is
the condition of its memberships.

33. Cont..
Features:
 Joint ownership:
 Transferable ownership
 Limited liability
 Permanent life
 Democratic form
 Legal personality
 Formal registration
 Official seal
 Indirect participation of owner
 Liquidation by law.

34. Features of Good Organizational
Structure
Simplicity: Every person in the organization should
be clear about with whom he has to consult in a
particular matter.
Flexibility and Continuity: The organizer should
build the structure not for today or tomorrow.
Clear Line of Authority: There should be clear lines
of authority running from top to bottom or in
horizontal directions.
 Application of Ultimate Authority: Although a
superior manager assigns some of the work to his
subordinates, he is ultimately responsible for the
accomplishment of the total work.

35. Cont..
 Proper Delegation of Authority: The concept of ultimate
authority will be effective only when there is proper
delegation of authority at various levels of the organization.
 Proper Emphasis on Staff: Line functions should be
separated from staff functions and adequate emphasis
should be placed on important staff activities. for example,
production activities in a manufacturing concern.
 Provision for Top Management: In the company form of
organization, the shareholders are generally indifferent to
the day-to-day affairs of the company.
 Minimum Possible Managerial Levels: As far as
possible, there should be minimum managerial levels,
Greater the number of managerial levels,

36. Types of Organizational Structure
1. LineAnd Staff Organizational structure:
 Line organization is one in which all managers have direct
authority over their respective subordinates, through the
chain of command.
Advantages
 Simple
 SpeedAction
 Proper discipline
 Fixation of responsibility
 Flexibility
 Executive Development
 Unified Control
 Economical

37. Cont..
Disadvantages
 Overloading
Lack of specialization
 Difficulty in coordination
Autocratic Leadership
Inefficiency
Lack of stability
 Unsuitable for large enterprise

38. Line and staff organizational
structure of Vegetable Agribusiness

39. 2. Functional Organizational
Structure
In a functional organizational structure, the
organization is set up split into departments
specializing in a specific area of expertise.
Each department has its own guidelines,
standard operating procedures (SOPs), targets
and requirements.
They hire employees based on specific skills
and qualifications relevant to roles and
hierarchical layout within that department.

40. Cont..
Every department is led by a leader (could be a
manager, senior manager, director,
etc. depending on the size of the company).
So, depending on how it functions, there may
be other sub-hierarchical structures developed
within them.

41. Cont..

42. Cont..
3.Matrix Organizational Structure: A matrix
organizational structure is a company structure in
which the reporting relationships are set up as a
grid, or matrix.
4. Geographical organizational structure
5. Customer based organizational structure
6. Team based organizational structure