New Venture Creation

Need For the Course:

HEC directed the Universities that to
include New Venture Creation Or
Entrepreneurship as a Compulsory
Course for Management Sciences
Students

New Venture Creation

Main Reason:
Despite being the fact that very little
population has access to Higher Education
but yet our economy is unable to create job
opportunities for the graduates
So this course is just to create a
Viable Alternative for the graduates
Moreover it is interesting to note that
-70 % Business fail in first year
-90% fail in second /third year

New Venture Creation

Entrepreneur: A person who sets up a
business or businesses taking on financial
risks in the hope of profit
Venture:New Activity usually in business
that involves risk or Uncertainty
Entrepreneurship: the process of turning
anewidea or technology into a business
that can succeed and will attract investors:
Potential entrepreneurs trying to identify a
possible business idea, pay attention to
everything in the media that relates
toventure creation

Advantages
Entrepreneur is a discipline and Discipline can be learnt
its not inherited
Even if someone doesnt intends to start entrepreneurial
activities yet studying and learning this course enable
you
In the process of decision making and problem-solving
skills
Critical Thinking
Business skills and a financial literacy
Research and testing skills (e.g. available markets,
suppliers, customers and the competition)
A creative toolbox
Management skills the ability to set goals, manage
time, money and people (both oneself and others)

 -Communication skills the ability to sell

ideas and persuade others
-Team working skills the ability to work
both as part of a team and independently
-Project planning skills the ability to plan,
coordinate and organize effectively
decision making
-Networking skills
-Self-advocacy and conflict resolution skills
-A great community to be part of you will
never be alone!

New Venture Creation

Furthermore, you will learn how to:
Draw up a business plan for a new
venture
Market and sell a new product or idea
Do financials (budgets and forecasts)

New Venture Creation

As a leader Entrepreneur plays two
roles
-Catalyst initiating and driving the
process
-Ring master managing the process
through all the changes

New Venture Creation

The entrepreneurial process provides
many benefits to the society,
Main benefits are
-economic growth
-New Industry Formation
-& Job Creation

New Venture Creation

Seven Types of Ventures
Sole Proprietorship:-One of the most popular
business type, because its one of the simplest and
only requires an individual .Its owned by a single
person and there isnt a legal or financial distinction
between the business and the business owner
Partnership: Two heads are better than one if thats
the philosophy behind your business structure,in
this type responsibilities including financial & legal
are shared by all partners
Limited Partnership: One partner is active and the
other just invest

New Venture Creation

Corporation: Fully Independent business made up of multiple
share holders
Limited Liability Company(LLC) Its a newer type of business
that is a blend between Sole proprietorship & Corporation
Instead of shareholders the LLC owners are referred as
members who takes care of Daily Business operation LLC is
not taxed like corporation instead all profits and losses are
moved to members
Non Profit Organization
Co-operative Its a business thats fully owned and operated
for the benefit of the members of the organization that use
its services.the earnings are shelled out to the members and
arent required to be paid out to any external stake holders

New Venture Creation

Entrepreneurial Process is affected by
3 major categories
The individual entrepreneur & what
he/she brings to the process
The Environment ,consists of all variables
that affect the process such as Industry, Suppliers
& markets
The Organization, consists of strategic aspects
such as Focus, Resources & Strategic partnerships

New Venture Creation

3 Categories of Economically Developing
Countries
Factor-Driven Economies ,unskilled
labour,extration of resources,business created out of
necessity

Efficiency Driven

Economies,Growing,in need of
improving production processes & quality of goods
produced

Innovation Driven

Economies,most advanced
businesses compete based on innovation
&enterpreneurship

New Venture Creation

Entrepreneurial Ventures have 3 Primary
Characteristics
Innovative, brings something new to the Market place
whether it is new product or service. they serve the unserved
need, they have vision, Theyhavgoals( regional,national,global )
Innovative & Replicative entrepreneur by Kauffman

Value Creating,value addition is focused

Growth Oriented, very much personal decision
Internet,Social Media,Mass Mingling

New Venture Creation

Entrepreneurship is a personal
journey that begins in the mind of
nascent entrepreneur because
business is fundamentally about
people, how they interact, make
decisions plan for future deal with
conflict and so on

New Venture Creation

Steps in creating a New Venture
-Finding a market need or pain
-Assembling a Right Team
-Sources of funds
-How large to grow the business
-Decision of When & how to exit is very
personal