Drone entrepreneurs: These are characterized by refusal to adopt opportunities to make changes in production formulate even at the view,

view, refer to money. However, in economics, capital resources represent machines, buildings, and other physical
cost of severely reduced returns relate to other like producers. Such entrepreneurs may even suffer from losses but they are not ready to productive resources. Entrepreneurs have initiative and self-confidence in accumulating and mobilizing capital resources
make changes in their existing production methods. for new business or business expansion.
4) Introduce new technologies: Aside from being innovators and reasonable risk-takers, entrepreneurs take advantage of business
four business explorations methods.:For seeking the best business opportunity, the following explorations may be useful.
opportunities, and transform these into profits. So, they introduce something new or something different. Such
a) Environment exploration –This means the study of different environmental factors. The study of demographic environment includes
entrepreneurial spirit has greatly contributed to the modernization of economies. Every year, there are new technologies
the in-depth study of growth rate of population, age-composition, sex-composition, occupational- pattern, and income-
and new products. All of these are intended to satisfy human needs in a more convenient and pleasant way.
composition etc. E.g. Low infant mortality rate and high birth rate ensures the increasing demand for baby-soap, baby hair
5) Create Employment: The biggest employer is the private business sector. Millions of jobs are provided by the factories, service
oil, gripe-water, toys and kids wear etc. Socio-economic conditions, culture, basic features of resources etc. are also
industries, agricultural enterprises, and the numerous small-scale businesses.
studied.
Problems of women entrepreneurs:
b) Present business exploration – This relates to the study of present pattern of business activities, the study of the consumption pattern,
Women entrepreneurs encounter two sets of problem, viz., general problems of entrepreneurs and problems specific to Women
the study of emerging trends in the pattern of trading and consumption and the pattern of demand.
entrepreneurs. The basic problem of a woman entrepreneur is that she is a woman. These are summarized as follows.
c) Technology exploration – It is the study of new business opportunities created by change in technology For example, in case of
1) Shortage of Finance: Owing to lack of confidence in women’s ability by others.
printing industry, traditional system of printing has gone and computer based multi-colour printing opportunities have
2) Shortage of Raw Material: Women entrepreneurs find it difficult to procure material and other necessary inputs. The prices of many
emerged.
raw materials are quite high.
d) Idea exploration – Business ideas are related to different factors. The exploration of idea may relate to
3) Inadequate Marketing Facilities: Most of the women entrepreneurs depend on intermediaries for marketing their products. It is very
- Growth related ideas – e.g. change in age-composition of population and lifestyles gives an impetus to fashion-industry, mobile and
difficult for the women entrepreneurs to explore the market and to make their product popular
bike industry etc.
4) Keen Competition: Women entrepreneurs face tough competition from male entrepreneurs and also from organized industries.
- Resource -related ideas – e. g. agro-based industry (i.e. pickle-making, ketchup, sauce, jams, mineral based industry (i.e. water,
5) High Cost of Production: High prices of material, low productivity. Under utilisation of capacity etc. account for high cost of
pharma) marine-based industry (i.e. Fishery)
production.
- Import-export related ideas – i.e. export of mushrooms, strawberries, jewellery in foreign markets.
6) Family Responsibilities: Management of family may be more complicated than the management of the business. Hence she cannot
- Service-sector related ideas –for example repairs, maintenance of cars and automobiles. Nowadays, housekeeping (i.e. cleaning the big
put her full involvement in the business. Occupational backgrounds of the family and education level of husband has a
premises) has been emerging as an industry.
direct impact on the development of women entrepreneurship.
7) Low Mobility: One of the biggest handicaps for women entrepreneur is her inability to travel from one place to another for business
purposes.
.
methods of franchising as seen in entrepreneurship 1. The Single Unit Franchise: This is the most common method of franchising, 8) Lack of Education: Lack of knowledge and experience creates further problems in the setting up and operation of business.
and the one most people think of when they hear the word “franchise.” In this method, a franchisee purchases a franchise from a 9) Low Capacity to Bear Risks: Women lead a protected life dominated by the family members. She is not economically independent.
franchisor and is assigned a specific territory. The franchisee then runs the franchise independently but with the franchisor’s assistance She may not have confidence to bear the risk alone. If she cannot bear risks, she can never be an entrepreneur.
within his or her given area. 10) Social Attitudes: Women do not get equal treatment in a male dominated society. Wherever she goes, she faces
discrimination.
2. The Sequential Franchise: Sequential franchising is an outgrowth of single unit franchising. Sequential franchising occurs when a 11) Low Need for Achievement: Generally, a woman will not have strong need for achievement. Every women suffers from the painful
feeling that she is forced to depend on others in her life. Her pre-conceived notions about her role in life inhibit
successful franchisee decides to purchase a second franchise location from the same franchisor in another territory. There is theoretically
achievement and independence.
no limit to how many locations a franchisee may own in sequential franchising, but usually each new location is purchased one-at-a- 12) Lack of Training: A women entrepreneur from middle class starts her first entrepreneurial venture in her late thirties or early forties
time, both to give the franchisee enough time to focus on establishing the new location and to prove to the franchisor that the franchisee due to her commitments towards children. Her biggest problem is the lack of sufficient business training.
is capable of running multiple businesses. 13) Lack of Information: Women entrepreneurs sometimes are not aware of technological developments and other information on
subsidies and concessions available to them. They may not know how to get loans, industrial estates, raw materials etc
3. The Area Franchise: The area franchise is similar to the sequential franchise, except the arrangement is understood at the outset. results of the market survey can be vitiated by:
Rather than buying a single location, the franchisee purchases the rights to an entire area. It is then up to the franchisee to establish Non representativeness of the sample
locations within that area. Under some contracts, the number of franchises is left to the franchisee’s discretion, but under others the Imprecision and inadequacies in the questions
franchisee might be expected to establish a given number of locations in a set time. Failure to the respondents to comprehend the questions
Deliberate distortions in the answers given by the respondents
4. The Sub franchise: Sub franchising occurs when a franchisor selects a franchisee to act as a franchisor for a given area. In other Inept handling of the interviews by the investigators
words, the franchisee takes on the responsibilities of a franchisor, finding franchisees, training them, and providing Cheating on the part of the investigators
ongoing support in a given area. The franchisee acts as a sort of manager on the franchisor’s behalf, managing all Slip-shod scrutiny of data
franchises in a given area while answering to the initial franchisor. Incorrect and inappropriate analysis and interpretation of data

Phases of Project Management

1. Project Identification: It refers to identification of business/investment opportunities. It involves scanning of the environment
.
nature and characteristics of ‘Personal Selling’ Personal Selling: It is the best means of oral and face-to-face communication and to find out investment opportunities.
presentation with the prospect for the purpose of making sales. There may be one prospect or number of prospect in the 2. Project Formulation: It is the translation of the idea into concrete project with scrutiny of its important preliminary aspects.
personal conversion. It occurs through personal communication in an exchange situation. 3. Project Appraisal: It involves searching, scrutiny, analysis and evaluation of market, technical, financial and economic
Nature of Personal Selling variables. It examines the viability of the project.
Gives marketers: 4. Project Selection: It is the process of choosing a project rationally in the light of objectives and inherent constraints on the
The greatest freedom to adjust a message to satisfy customers informational needs, dynamic. basis of appraisal.
Most precision, enabling marketers to focus on most promising leads. vs. advertising, publicity and sales promotion 5. Project Implementation: It is the stage of birth of an enterprise. At the end of this stage, the idea becomes a reality.
Give more information 6. Project Follow Up and Evaluation: It is the process of assessing the performance of the project after it started functioning.
Two way flow of information, interactivity.
Discover the strengths and weaknesses of new products and pass this information on to the marketing department. Objectives of project management
Highest cost. Businesses spend more on personal selling than on any other form of promotional mix. 1. To achieve maximum productivity at minimum cost
Goals range from Project management ensures that work is well planned, coordinated, and controlled so that tasks are completed efficiently. This
Finding prospects helps produce the desired results using the least possible cost, time, and effort without compromising quality.
Convincing prospects to buy 2. To maximize income and return
Keeping customers satisfied--help them pass the word along. By completing projects on time, within budget, and according to specifications, project management helps organizations gain
higher profits and better returns on investment. Efficient project execution reduces losses and increases financial benefits.
Extra notes to look into 3. To minimize risk and uncertainty
Contributions of Entrepreneurs Project management identifies potential risks early and puts measures in place to control or reduce their impact. This helps in
1) Develop new markets: Under the modern concept of marketing, markets are people who are willing and able to satisfy their needs. In avoiding unexpected problems and ensures smoother project execution.
Economics, this is called effective demand. Entrepreneurs are resourceful and creative. They can create customers or 4. To eliminate waste and improve efficiency
buyers. This makes entrepreneurs different from ordinary businessmen who only perform traditional functions of Through proper planning and monitoring, project management reduces wastage of materials, time, and effort. It improves
management like planning, organization, and coordination. efficiency by ensuring that every activity adds value to the project.
2) Discover New Sources Of Materials: Entrepreneurs are never satisfied with traditional or existing sources of materials. Due to their 5. To make the most efficient and effective use of resources
innovative nature, they persist on discovering new sources of materials to improve their enterprises. In business, those who Project management allocates and utilizes resources such as manpower, money, materials, and technology in the best possible
can develop new sources of materials enjoy a comparative advantage in terms of supply, cost and quality. way. This ensures resources are neither underused nor wasted, leading to successful project completion.
3) Mobilize Capital Resources: Entrepreneurs are the organizers and coordinators of the major factors of production, such as land, labor 6. To ensure timely completion of the project
and capital. They properly mix these factors of production to create goods and service. Capital resources, from a layman's
 Project management sets clear schedules and monitors progress to ensure that activities are completed within the planned time. Licensing: it is a contractual agreement giving rights to others to use intellectual property in return for a royalty or fee.
This helps avoid delays and ensures that project goals are achieved as scheduled. Contracts: it is a legally binding agreement between two parties.
Managerial Competence: These are the personnel skills, motives and attitudes necessary for a job. Some of them are,Creative problem
Methods of pricing solving (aptitude),Mobilization of resources, Search for better performance towards results,Relationship to others,Dynamic
perspective,Team work and Customer focus.
1. Psychological Pricing: Many consumers use price as an indicator of quality. Image pricing is especially effective with ego-sensitive
products such as perfumes and expensive cars. A $100 bottle of perfume might contain $10 worth of scent, but gift givers pay $100 to Distinguish an Entrepreneur to a manager
communicate their high regard for the receiver. Similarly, price and quality perceptions of cars interact: Higher-priced cars are
perceived to possess high quality; higher-quality cars are likewise perceived to be higher priced than they actually are. In general, when Status: An entrepreneur is the owner of the enterprise.A manager is the servant in the enterprise owned by the entrepreneur
information about true quality is unavailable, price acts as a signal of quality Risk bearing: An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in running the enterprise.A
2. Discriminatory Pricing: Companies often adjust their basic price to accommodate differences in customers, products, locations, and manager as a servant does not bear any risk involved in the enterprise
so on. Discriminatory pricing occurs when a company sells a product or service at two or more prices that do not reflect a proportional Motive: The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal
difference in costs. Discriminatory pricing takes several forms: [Link], the main motive of a manager is to render his services in an enterprise already set up by someone else.
Customer-segment pricing: Different customer groups pay different prices for the same good or service. For example, museums often Rewards: The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain.A manager gets
charge a lower admission fee to students and senior citizens. salary as reward for the services render by him in the enterprise. Salary of a manager is certain and fix
3. New Product Pricing Strategies
Pricing strategies usually change as the product passes through its life cycle. Companies can choose between two strategies: Types of Export Business
Market-Skimming Pricing: Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing Export Management Company (EMC): An EMC handles export operations for a domestic company that wants to sell its product
to pay higher price; the company makes fewer but more profitable sales. But it makes sense only if: the product’s quality supports its overseas but doesn't know how (and perhaps doesn't want to know how).
high price, the costs of producing a smaller volume is not so high that they cancel the advantage of charging more and competitors Export Trading Company (ETC): While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC attacks the
should not be able to enter the market easily. other side of the trading coin. It identifies what foreign buyers want to spend their money on and then hunts down domestic sources
Market-Penetration Pricing: Setting a low price for a new product in order to attract a large number of buyers and market share. So the willing to export.
companies set a low initial price to penetrate the market. [Link] Mix Pricing Strategies: When the product is a part of product-mix, Import/Export Merchant: This international entrepreneur is a sort of free agent. He has no specific client base, and he does not specialize
there are five kinds of strategies involved: in any one industry or line of products. Instead, he purchases goods directly from a domestic or foreign manufacturer and then packs,
Product Line Pricing: ships and resells the goods on his own.
Optional-Product Pricing: The pricing of optional or accessory products along with the main product. For example, a car buyer may Manufacturer cum Exporter: This entrepreneur manufactures his products and sells it to the clients or customers by exporting it.
choose to order a CD changer as an optional product.
Captive-Product Pricing: Setting a price for products which must be used along with the main product. For example, HP makes printers Sources of business ideas
and cartridges. It makes very low margins on its printer (the main product) but very high margins on cartridges . The business idea could emerge from one or more of the following sources.
By-Product Pricing: Setting a price for the by-products. Like in processing meats, petroleum Product Bundle Pricing: Combining several a. Success stories of friends, relatives and other entrepreneurs.
products and offering the bundle at a reduced price. For example, fast food restaurants bundle a burger, French fires and soft drink at a b. Increasing demand for certain products in home market and foreign markets where price advantage could be obtained.
combo price. c. Experience of others in manufacture or sale of a product
d. Chances of producing a substitute of an article imported for which there is a good demand in home country.
e. Visit to trade fairs and exhibitions
Kunkel’s Theory of Social Behaviour: Kunkel’s theory deals with social behaviour in the context of entrepreneurship supply. f. Study on demand supply imbalance
According to Kunkel, supply of entrepreneurs is a function of social, political and economic structure. Individuals are performing g. Government’s industrial, import-export policies and the policies for development of backward area
various activities in a society of these activities some are accepted by the society and those activities are rewarded. The reward acts as a h. Survey reports, books, periodicals, news papers
stimulating factor for the repeated behaviour of an individual. This pattern of social behaviour is nothing but entrepreneurial behaviour. i. Invention of new production process or product development
The supply of entrepreneurship depends upon following four structures found in a society. j. Availability of a particular raw material and skilled personnel
a) Limitation structure: The society limits specific activities. This limitation structure affects not only the entrepreneurs but also all other k. Potential demand for ancillary products for well-established big industries
members of a society. l. Consultation with business advisor and experienced person
b) Demand Structure: The individuals demand rewards for their acts. The demand structure motivates individual towards
entrepreneurship. Components of financial plan
c) Opportunity Structure: Opportunity structure comprises of the availability of capital, management, technological skills and Projected financial statement for the next three or five years or as available
information about production methods, labour and market. Favourable opportunity structure increases the supply of entrepreneurship. Income statements
d) Labour Structure: It is related with the supply of competent and willing labour. The supply of labour depends on a number of factors Balance sheets
like alternative means of livelihood, traditionalism and expectations of life. Entrepreneurship supply increases when the labour structure Cash flow statements
is favourable. Cash budgets
Break even analysis of profit and cash flows
Characteristics of small scale industry: Planned source of financing
A small scale industry is beautiful because of the following important characteristics: 1. Projected financial statements
They are generally organized and run by individual entrepreneurs. They estimate future financial performance for the next three or five years to aid planning and decision-making.
They require less capital. 2. Income statements
They are fundamentally labour-intensive units facilitating greater utilization of man power. They show expected income, expenses, and profit or loss for a given period.
They involve the use of simple technology, intensive utilization of individual skill leading to professional specialization. 3. Balance sheets
They cater the individual tastes and fashions and render personalized service to consumers. They show projected assets, liabilities, and equity to assess financial position.
They are highly localized industries. Using local resources SMEs are decentralized and dispersed to rural areas. 4. Cash flow statements
They are flexible to a large extent. They are more susceptible to change and highly reactive and receptive to socio-economic conditions. They show expected cash inflows and outflows to ensure liquidity.
They are free from red-tape and bureaucratic handicaps. 5. Cash budgets
Compared to large units, a SME has a lesser gestation period. They plan and control cash receipts and payments over a period.
6. Break-even analysis
Objectives of small scale industries It shows the sales level at which costs equal revenue and no profit or loss is made.
To generate immediate and large scale employment opportunities with relatively low investment. 7. Planned source of financing
To eradicate unemployment problem from the country. It identifies where project funds will come from, such as savings or loans.
To encourage dispersal of industries to all over country covering small towns, villages and economically lagging regions.
To bring backward areas too in the mainstream of national development. Phases of Project Life Cycle
To promote balanced regional development in the whole country. 1. Pre-Investment Phase: It is concerned with formulation of objectives, demand forecasting, evaluation of input characteristics,
To ensure more equitable distribution of national income. selection of strategy, projections of financial profile, cost benefit analysis and finally pre-investment appraisal. Some expenditure has to
To encourage effective mobilization of country’s untapped resources. be incurred in the form of conducting surveys, feasibility studies etc.
To improve the level of living of people in the country. 2. Construction Phase: This stage consumes maximum expenditure. Construction phase consists of developing the infrastructure for the
project. The capital requirement includes cost on land, buildings, civil works, machinery equipment, ancillaries etc.
Legal Issues in setting up the Organisation: 3. Normalization Phase: The primary objective of this stage is to produce the goods and services for which the project was established.
Patents: Grants holder protection from others making, using, or selling similar ideas that have originated with you. The expenditure has to be incurred on raw materials, fuel, utilities, and administration and operation maintenance. Etc.
Trade mark: A distinguishing word, name, or symbol used to identify a product.
Copy right: Right given to prevent others from printing, copying, or publishing any original works of authorship. Importance of Business Planning
Trade secrets: Protection against others revealing or disclosing information that could be damaging to business.
To clarify direction: The primary purpose of a business plan is to define what the business is or what it intends to be over time. Inner Drive to Succeed: Entrepreneurs are driven to succeed and expand their business. They see the bigger picture and are often very
Clarifying the purpose and direction of your business allows you to understand what needs to be done for forward movement. Clarifying ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in
can consist of a simple description of your business and its products or services, or it can specify the exact product lines and services the way.
you'll offer, as well as a detailed description of your ideal customer. Strong Belief in themselves: Successful entrepreneurs have a healthy opinion of themselves and often have a strong and assertive
To have future vision: Businesses evolve and adapt over time, and factoring future growth and direction into the business plan can be an personality. They are focused and determined to achieve their goals and believe completely in their ability to achieve them. Their self-
effective way to plan for changes in the market, growing or slowing trends, and new innovations or directions to take as the company optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focused to spend too much time
grows. Although clarifying direction in the business plan lets you know where you're starting, future vision allows you to have goals to thinking about un-constructive criticism.
reach for. Search for New Ideas and Innovation: All entrepreneurs have a passionate desire to do things better and to improve their products or
To attract financing: The Small Business Administration states that "The development of a comprehensive business plan shows whether service. They are constantly looking for ways to improve. They're creative, innovative and resourceful.
or not a business has the potential to make a profit." By putting statistics, facts, figures and detailed plans in writing, a new business has Openness to Change: If something is not working for them they simply change. Entrepreneurs know the importance of keeping on top
a better chance of attracting investors to provide the capital needed for getting started. of their industry and the only way to being number one is to evolve and change with the times. They're up to date with the latest
To attract team members: Business plans can be designed as a sale tool to attract partners, secure supplier accounts and attract executive technology or service techniques and are always ready to change if they see a new opportunity arise.
level employees into the new venture. Business plans can be shared with the executive candidates or desired partners to help convince Competitive by Nature: Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self-
them of the potential for the business, and persuade them to join the team. imposed high standards is to compete with other successful businesses.
To manage company: A business plan conveys the organizational structure of your business, including titles of directors or officers and Highly Motivated and Energetic: Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to
their individual duties. It also acts as a management tool that can be referred to regularly to ensure the business is on course with succeed and have an abundance of self-motivation. The high standards and ambition of many entrepreneurs demand that they have to be
meeting goals, sales targets or operational milestones. motivated!
Accepting of Constructive Criticism and Rejection: Innovative entrepreneurs are often at the forefront of their industry so they hear
the words "it can't be done" quite a bit. They readjust their path if the criticism is constructive and useful to their overall plan, otherwise
Four major components of cost of production they will simply disregard the comments as pessimism. Also, the best entrepreneurs know that rejection and obstacles are a part of any
Cost of production: Given the estimated production, the cost of production may be worked out. The major components of cost of leading business and they deal with them appropriately. True entrepreneurs are resourceful, passionate and driven to succeed and
production are: improve. They're pioneers and are comfortable fighting on the frontline The great ones are ready to be laughed at and criticized in the
Material cost beginning because they can see their path ahead and are too busy working towards their dream.
Utilities cost
Labour cost mergers in business
Factory overhead cost Merger: It is alegal consolidation of two entities into one entity.
1. Material cost: The most important element of cost, the material cost comprises the cost of raw materials, chemicals, components, and Types of merger
consumable stores required for production. It is a function of the quantities in which these materials are required and the prices payable Horizontal merger: This merger involves the combining of two companies that are direct competition with one another. In other words,
for them. they are trying to sell the same product to customers who are in a common market.
2. Utilities Cost: Utilities consist of power, water, and fuel. The requirements of power, water, and fuel may be determined on the basis Vertical merger: This type of merger involves a customer and a company or a supplier and a company merging. Imagine a baseball bat
of the norms specified by the collaborators, consultants, etc. or the consumption standards in the industry, whichever is higher. company. This would be an example of the supplier merging with the producer and is the essence of vertical merger.
3. Labour Cost: Labour cost is the cost of all the manpower employed in the factory. Labour cost naturally is a function of the number Market extension merger: This involves the combination of two companies that sell the same products in different markets. As market
of employees and the rate of remuneration. The requirement of workers depends on the number of operators/helpers required for extension merger allows for the market that can be reached to become larger and is the basis for the name of the merger.
operating various machines and manning various services. The number of supervisory personnel and administrative staff may be Product extension merger: This merger is between two companies that sell different but somewhat related products in a common market.
calculated on the basis of the general norms prevailing in the industry. In estimating remuneration rates, the prevailing rates in the This allows the new larger company to pool their products and sell them with greater success to the already common market the two
industry/area should be taken into account. The remuneration should include, besides basic pay, dearness allowance, house rent separate companies shared.
allowance, conveyance allowance, medical reimbursement, leave travel concession, provident fund contribution, gratuity contribution, Diversified activity merger: It is a combination of at least two totally unrelated firms.
and bonus payments. In addition, account should be taken of vacations, overtime work, night work, work on holidays, etc.
4. Factory Overheads Cost: The expenses on repairs and maintenance, rent, taxes, insurance on factory assets, and so on are collectively Functions of ZDA
referred to as factory overheads. Repairs and maintenance expense depends on the state of the machinery-this expense tends to be lower •Make detailed impact analysis on select sectors of the economy such as textiles, agriculture, mining, tourism, education, skills
in the initial years and higher in the later years. Rent, taxes, insurance, etc. may be calculated at the existing rates. A provision should training, communication, transport, infrastructures development, automobiles, information technology, chemicals and steel
be made for meeting miscellaneous factory expenses. In addition, a contingency margin may be provided on the items of factory engineering goods, through a multi-disciplinary team;
overheads. •Establish a database of facilities, human resource and their skills, sources of finance, technology, raw materials, machinery,
equipment and supplies with the view to promoting accessibility of these industry;
Pricing Objectives •Develop entrepreneurship skills and the business culture in the citizens of Zambia;
Market penetration: market penetration may be a very important objective, particularly for the new entrepreneurs. •Promote and facilitate the development of micro and small business enterprises;
Market share: the price may be manipulated to increase the market share. •Formulate investment promotion strategies;
Market skimming: this is often the case with innovative products. The product is introduced with a high initial price to skim the cream •Promote and coordinate government policies on, and facilitate, investment in Zambia;
of the market. The price may be subsequently reduced to achieve greater market penetration. •Assist in the security from any state institution any permission, exemption, authorization, licence, bonded status, land and any
Profit maximization: in many cases, the primary pricing objective is maximization of profit. other thing required for the purposes of establishment of operating a business enterprise;
Return on investment: achieving the target rate of return is the most important pricing objective in a number of cases. •Undertake economic and sector studies and market surveys so as to identify investment opportunities
Shorten pay-back period: when the market is uncertain and risky because of factors like swift technological changes, short product life
cycles, political reasons, and threat of potential competition etc., recouping the investment as early as possible would be an important
objective.

FACTORS AFFECTING PRICES:

The prices that a firm can fir its products are subject to many influences. The various factors economic and non-economic impinge upon
the prices of the products.
Product characteristics: by product characteristics, we mean numerous factors, i.e., the product life cycle, the product perishability, the
product substitution and demand postponability or the magnitude of the resistance.
Product cost: the second factors, the most important in determining price, are the cost of the product itself. While making marketing
strategy, the decision
Demand: This has a large impact on pricing. Since demand is affected by such factors as the number and size of competitors, what they
are charging for similar products, the prospective buyers, their capacity and willingness to pay and their preferences, these factors have
to be taken into consideration while fixing prices.
Competition: Knowledge of what prices the competitors are charging for a similar product and what possible lie ahead for raising or
lowering prices also affects pricing.
Government regulations: The regulatory pressure and anti price rise and control measures effectively discourage companies form
cornering too large a share of the market or controlling prices.

Qualities of a Successful Entrepreneur:

Being an entrepreneur is about more than just starting a business or two, it is about having attitude and the drive to succeed in business.
All successful Entrepreneurs have a similar way of thinking and possess several key personal qualities that make them so successful in
business. All successful entrepreneurs have the following qualities: