Entrepreneurship Development and Management PDF

# Entrepreneurship Development and Management ## Chapter No. 2 Market Survey and Opportunity Identification/Ideation **Vijender kumar** **G.P Ambala City** ## Scanning of the Business Environment: Scanning of the business environment refers to the process of systematically gathering, analyzing, a...

# Entrepreneurship Development and Management ## Chapter No. 2 Market Survey and Opportunity Identification/Ideation **Vijender kumar** **G.P Ambala City** ## Scanning of the Business Environment: Scanning of the business environment refers to the process of systematically gathering, analyzing, and interpreting information about factors external to an organization that can affect its performance and operations. ## Need and Importance: 1. Systematic analysis of external factors. 2. Identifying market trends, competitor actions, regulations, and technological advancements. 3. Monitoring trends and competitive intelligence. 4. Keeping up with regulatory changes and technological shifts. 5. Analyzing economic conditions and identifying risks. 6. Recognizing new opportunities. 7. Facilitating informed decision-making for strategic adaptation. ## Factors affecting the business environment are: - Economic conditions (e.g., GDP growth, inflation, interest rates). - Technological advancements. - Regulatory changes and government policies. - Market trends and consumer behavior. - Competitor actions. - Environmental sustainability concerns - Global events and geopolitical risks - Supply chain disruptions - Legal and ethical considerations ## SALIENT FEATURES OF NATIONAL AND HARYANA STATE INDUSTRIAL POLICIES: National industrial policies are government plans to help businesses grow and compete better. ## Objectives: 1. To maintain and enhance sustainable growth in productivity. 2. To enhance employment in nation. 3. To transform India into a empowering nation in the global industrial world. ## Industrial policies in India: 1. **The Industrial Policy 1948**: The first industrial policy of independent India was introduced on 6th April 1948 by Dr. Shyama prasad mukherjee. The main objective of this policy was to increase the industrial development by introducing mixed economy public and private sector was accepted as important factor in the development of the economy. 2. **The Industrial Policy 1956**: The Industrial Policy of 1956 was a plan by the Indian government to shape the country's industries. - **Government Role**: Gave importance to government control in key industries like machinery and defense. - **Private Sector**: Allowed private companies to operate in certain areas. - **Regulation**: Put rules in place to prevent one company from dominating a sector. - **Small Industries**: Encouraged the growth of small businesses to create jobs and support local communities. - **Less Dependence**: Tried to reduce reliance on goods from other countries by making more things within India. 3. **The Industrial Policy 1977**: In December 1977, government announced its new industrial policy In parliament. In this policy, small sector was classified in three groups- cottage, household and small scale industries. The main area of policy was: - Promotion of cottage and small-scale industries presents in rural areas and small towns. 4. **The Industrial Policy 1991**: Implemented by the Government of India in response to economic crises. - **Objective**: Shifted from a controlled economy to a liberalized and market-oriented one. - **Liberalization**: Reduced government control and allowed more freedom for businesses to operate. - **Globalization**: Opened up the Indian economy to foreign investment and trade. - **Privatization**: Encouraged privatization of state-owned enterprises to improve efficiency and competitiveness. - **Technology Upgradation**: Emphasized technology upgradation and innovation to enhance productivity and competitiveness. ## Its Impact: Led to significant economic reforms, rapid industrial growth, and integration with the global economy. ## Haryana State Industrial Policy: The Haryana State Industrial Policy is a plan by the government to help businesses grow in the state. It offers incentives and support to attract investments, create jobs, improve infrastructure, and encourage entrepreneurship. The goal is to make Haryana a favorable place for industries to thrive. ## Haryana Labour Policy: The Haryana Labour Policy sets rules and standards for labor practices in the state. It covers wages, working hours, safety, and welfare measures to ensure fair treatment of workers and promote industrial harmony. ## Haryana Land Acquisition Policy: The Haryana Land Acquisition Policy governs the process of acquiring land for development projects. It outlines procedures for fair compensation and resettlement of affected communities, ensuring balanced and transparent land acquisition practices. ## Type and Conduct of Market Survey: Survey research is a way to gather information by asking questions to a group of people. It helps understand opinions, attitudes, or behaviors on specific topics. ## Type of surveys: Broadly classified into two: 1. **According to instrumentation**: Questionnaire, schedules, and the interview. 2. **According to the span of time involved**: Cross-sectional surveys and Longitudinal survey. ## Questionnaire surveys: Questionnaire surveys involve collecting data by asking individuals to respond to a set of written questions. ### Advantages: 1. **Scalability**: Surveys can reach a large number of people efficiently. 2. **Standardization**: Questions are standardized, ensuring consistency in responses. 3. **Anonymity**: Respondents may feel more comfortable providing honest answers due to anonymity. 4. **Cost-Effective**: Compared to other data collection methods, surveys can be relatively inexpensive. ### Disadvantages: 1. **Limited Depth**: Surveys may lack the context and meaning behind a response. 2. **Response Bias**: Respondents may provide inaccurate or biased answers due to misunderstanding of questions. 3. **Low Response Rate**: Getting respondents to complete surveys can be challenging, leading to low response rates. 4. **Question Wording**: Poorly worded questions can lead to misinterpretation of responses. 5. **Sampling Bias**: Surveys may not accurately represent the entire population due to sampling biases. ## Interview Method of Survey: The interview method involves collecting data through direct interaction between the interviewer and the respondent, where questions are asked and answers are recorded. ### Advantages: 1. **Clarity and Understanding**: Interviewers can clarify questions and ensure respondents understand them properly. 2. **Flexibility**: Interviewers can adapt questions based on the respondent's answers or probe for more detailed information. 3. **High Response Rate**: Face-to-face or phone interviews often have higher response rates compared to other methods. 4. **In-depth Responses**: Allows for more detailed responses compared to written surveys. 5. **Non-verbal Cues**: Interviewers can observe non-verbal cues and gestures, providing additional insights beyond verbal responses. ### Disadvantages: 1. **Time-Consuming**: Conducting interviews can be time-consuming, especially for large samples. 2. **Costly**: Interviewer training, travel expenses, and time required make this method more costly compared to other survey methods. 3. **Interviewer Bias**: Interviewer's characteristics or behavior may influence respondents' answers, introducing bias. 4. **Social Desirability Bias**: Respondents may provide socially desirable answers to please the interviewer. 5. **Limited Reach**: Face-to-face interviews may have limited reach and may not be feasible for geographically dispersed populations. ## Scheduled Market Survey: Scheduled market surveys involve collecting data through structured interviews or questionnaires conducted at predetermined times and locations. ### Advantages: 1. **Controlled Environment**: Surveys can be conducted in a controlled environment, ensuring consistency in data collection. 2. **Higher Response Rates**: Scheduled surveys can yield higher response rates compared to other methods due to face-to-face interaction. 3. **Opportunity for Clarification**: Interviewers can clarify questions and ensure respondents understand them properly. 4. **Real-time Feedback**: Provides immediate feedback, allowing for on-the-spot adjustments or follow-up questions. 5. **Personal Interaction**: Allows for personal interaction between the interviewer and respondent, potentially enhancing rapport and trust. ### Disadvantages: 1. **Time-Consuming**: Conducting scheduled surveys can be time-consuming, especially if multiple interviews are required. 2. **Costly**: Requires resources for interviewer training, travel expenses, and time commitment. 3. **Interviewer Bias**: Interviewers' characteristics or behavior may influence respondents' answers, introducing bias. 4. **Limited Reach**: Scheduled surveys may have limited reach and may not be feasible for geographically dispersed populations. 5. **Social Desirability Bias**: Respondents may provide socially desirable answers to please the interviewer, affecting the validity of the data collected.