l3 on entrepreneurial development with evironment scanning and spotting

entrepreneurial development with environment scanning and spotting

1. ENTREPRENEURSHIP DEVELOPMENT AND BUSINESS MANAGEMENT 3(2+1) ENVIRONMENT SCANNING AND OPPORTUNITY IDENTIFICATION EXE-123(Ho)

2. ENVIRONMENT SCANNING Environment scanning refers to the process of collecting and analyzing information about external and internal factors that can affect entrepreneurial ventures. NEED FOR ENVIRONMENT SCANNING 1. Identifying Business Opportunities Helps entrepreneurs spot emerging demands and unmet needs in the market. Enables the discovery of profitable business and potential products or services. Example : A rising trend in urban home gardening can be an opportunity for starting a nursery or online plant delivery service. 2. Reducing Uncertainty and Risk Scanning helps minimize business risks by understanding market conditions. It allows the entrepreneur to be proactive rather than reactive to changes. Example : Knowing upcoming policy bans on chemical pesticides can help shift to organic practices early.

3. 3. Planning and Strategic Decision-Making Helps entrepreneurs formulate realistic business plans . Guides decisions related to production, marketing, pricing, and investment . 4. Adapting to Technological Changes Keeps the entrepreneur updated on new technologies, tools, and innovations in the field. Helps adopt cost-effective and sustainable practices. Example : Adoption of drip irrigation, polyhouse farming, or hydroponics.

4. TYPES OF ENVIRONMENT TO SCAN 1. Economic Environment Factors: Inflation, interest rate, subsidies, market demand. Example : Rising income in urban areas → Higher demand for exotic fruits or ornamental plants. 2. Political and Legal Environment Factors: Government policies, tax laws, business regulations, subsidies, trade policies. Example : Launch of horticulture-based schemes like MIDH (Mission for Integrated Development of Horticulture) supports new agribusiness ideas.

5. 3. Technological Environment Factors: Innovations in farming tools, post-harvest technology, automation, ICT tools. Example : Use of mobile apps for farm-to-home vegetable delivery, hydroponics systems, or solar dryers. 4. Natural/Environmental Factors Factors: Climate change, soil fertility, rainfall, water availability, pest outbreaks. Example : Water scarcity → Opportunity for drought-tolerant crops or rainwater harvesting solutions.

6. SPOTTING OF OPPORTUNITIES Opportunity spotting refers to the process of recognizing and identifying business ideas that can be turned into successful ventures. Sources of Business Opportunities Market Gaps – Unfulfilled needs or insufficient supply in the market. Example : Lack of fresh organic vegetables in urban areas. Changing Consumer Preferences – Lifestyle or health-driven changes. Example : Demand for sugar-free fruit jams or herbal teas. Technological Advancements – New farming techniques, processing methods. Example : Use of hydroponics or solar dryers in horticulture

7. Government Policies and Schemes – Agri-startup grants, subsidies, or support programs. Example : Using NABARD schemes to start a fruit-processing unit. Social or Environmental Needs – Solving problems like waste management or employment generation. Example : Starting a business that recycles banana waste into fiber products. Export Potential – Tapping into foreign demand for Indian horticultural produce. Example : Exporting mango pulp or floriculture products.

8. IDENTIFICATION OF PRODUCT OR SERVICE IN ENTREPRENEURSHIP Once the environment is scanned and opportunities are spotted , the next step is to select a specific product or service to build a business around. This decision must be strategic and based on several key factors. 1. Market Demand What it means : Understanding what people need or want, and whether they are willing to pay for it. How to assess : Conduct market surveys Study local consumption trends Analyze competitors Use online tools like Google Trends or Agri-market reports Example in Horticulture : If people in your city are demanding organic vegetables, you can start a kitchen garden or organic veggie box delivery business.

9. 2. Availability of Resources (Land, Labor, Capital) What it means : You must assess whether the necessary inputs are available to start and run the business . Resources include : Land : for cultivation, nurseries, etc. Labor : skilled/unskilled workers for farming, packaging, marketing Capital : money for infrastructure, seeds, equipment, marketing Example : You want to start a polyhouse for high-value flowers, but if you don’t have access to land or funds for the setup, you’ll need to rethink or scale down.

10. 3. Skills and Expertise How to build skills : Attend EDPs (Entrepreneurship Development Programs) Take short-term training in horticulture, marketing, processing, etc. Consult with experts or mentors Example : If you plan to process fruits into jams or juices, knowledge of food safety, packaging, and FSSAI norms is essential. 4. Profitability and Sustainability Profitability : Can you earn more than you spend? Sustainability : Is it environmentally friendly? Can it run long-term without heavy losses? Can it adapt to changing trends? Example : Starting a vermicompost unit using waste from a fruit market may be low-cost, eco-friendly, and profitable – making it a sustainable venture.

11. Starting a Project in Entrepreneurship Development Once an entrepreneur has: Scanned the environment, Spotted an opportunity, and Identified a suitable product or service, The next crucial step is to START THE PROJECT and bring the IDEA INTO ACTION.

12. 1. Prepare a Business Plan A business plan is a written document that outlines: The nature of the business Objectives Market analysis Product details Operations plan Financial projections Marketing strategy Example : For a cold-pressed juice unit, the business plan will detail: Target audience (health-conscious urban customers) Types of juices (beetroot, carrot, mixed fruit) Expected monthly revenue Cost of machinery and packaging Break-even point

13. 2. Arrange Finance (Loans, Grants, Subsidies) Finance is needed for: Purchasing equipment Infrastructure setup Working capital (for raw materials, salaries, etc.) Sources of Finance : Bank loans (NABARD, SBI agri -loans) Government schemes (Agri-Clinics and Agri-Business Centers scheme) Self-funding

14. 3. Acquire Land, Inputs, and Equipment Depending on the type of business, you need: A place for production (farm, shed, processing unit) Raw materials (fruits, packaging materials, ingredients) Equipment (juicer machines, refrigerators, sealing machines) Example : You lease a small building, purchase fruits from local farmers, and buy cold press machines, sterilizers, and bottles for packaging. 4. Register the Business Steps include : Getting licenses (FSSAI license for food businesses, GST registration, MSME/Udyam registration) Example : You register your brand " Fresh-Fit Juices " under MSME and get FSSAI approval to legally produce and sell juice.

15. 5. Begin Production/Operations What is it? Now that everything is set: Start production Launch marketing Sell your product or service Monitor quality and customer feedback Example : You start producing and bottling cold-pressed juices, market them through local shops and social media, and get your first batch of sales.

16. FACTORS INFLUENCING OPPORTUNITY SENSING IN ENTREPRENEURSHIP 1. Knowledge and Experience Entrepreneurs who have subject-specific knowledge (e.g., horticulture, food processing) or practical experience are better able to recognize viable opportunities. 2. Awareness of Trends Keeping up with current trends in the market, consumer behavior, technology, or lifestyle . Trends indicate changing demands. 3. Networking with Stakeholders Building connections with farmers, traders, customers, mentors, industry experts, and government officials .

17. 4. Risk-taking Capacity The willingness and ability to take calculated risks , including financial or operational risks, for potential rewards. 5. Creativity and Innovation The ability to think differently, solve problems creatively , and come up with unique products or services . 6. Use of ICT Tools and Media Using information and communication technology such as mobile apps, internet platforms, social media, and online data for business planning.