4. challenges encountered by entrepreneurs in provision of pharmaceutical services

4. challenges encountered by entrepreneurs in provision of pharmaceutical services

• 1.
  Challenges encountered by entrepreneursin provision of pharmaceutical services
• 2.
  Coverage a) Explain politicaland legal climate in relation to pharmacy business b) Explain innovation and creativity (changing tastes and attitudes) in pharmacy business c) Explain knowledge of product market d) Explain entrepreneurial attitudes and sustainable drive e) Explain skilled labour retention in pharmacy business f) Describe strategies for capacity building in pharmacy business
• 3.
  Challenges Faced byEntrepreneurs These include; Analysing problems and risks One of the critical skills needed by an entrepreneur is the ability to identify and evaluate the risks associated with the new venture idea and to react to them by developing strategies to overcome or manage them. Some of the risks associated with a new venture could include:- 3
• 4.
  Challenges  Technical: Thetechnology capable of doing what you need it to do may be very expensive/ or you may not be able to access it locally.  You also may have a problem sourcing the technical skills.  Performance risks: Performance risks can be twofold- they could relate to the performance of your employees or the performance of your business. Employee performance is always a risk, and a challenge to an entrepreneur. 4
• 5.
  Challenges  People needto be managed very closely in terms of their performance, otherwise they can cost you a lot of money and impact hugely on the success of your venture.  If your business does not perform as anticipated, you could run into all sorts of problems with your cash flow and operating capital.  As an entrepreneur you need to have identified this risk and have a contingency plan in place. 5
• 6.
  Challenges  Timing: Thetiming of your venture is vital – the time needs to be right for the market to accept your offering.  You need to consider the life cycle of the product offering, the state of the economy, the season if it is relevant. Sometimes your lead times can be a risk to your business. This is especially a problem if you purchase from overseas say your raw materials and /or technology 6
• 7.
  Challenges  Community andcultural risks: Products and services that address anticipated needs in the community may backfire. Products that are not aligned with the local culture will always be a challenge and pursuing them will carry a high level of risk.  Environmental risks: Any changes in the external environment of your business could create risk for your business. From the risk of natural disasters to the risk of fluctuating exchange rates and interest rates. 7
• 8.
  Challenges  A successfulentrepreneur needs to have evaluated the possibility and the repercussions of this risk, and have contingency plans in place to manage them.  Any business venture will face its fair share of problems throughout its lifespan. It is how proactively you deal with the problems that make the difference to your success as an entrepreneur. 8
• 9.
  Challenges  The problemsof entrepreneurs may be divided into two groups:  External problems and  Internal problems. External problems are those which result from factors beyond the control of the entrepreneurs while Internal problems are those which are not influenced by external factors. 9
• 10.
  Challenges Internal problems include:- 1.Planning – technical feasibility (inadequate technical know how, location disadvantage, outdated production process), -Economic viability (High cost of inputs, choice of idea, Break- even point too high). 2. Implementation – cost over-runs resulting from delays in getting licenses, sanctions, inadequate mobilization of finances etc. 3. Production – Inadequate production management, labour management, financial management, administrative management 10
• 11.
  Challenges  External problemsinclude:- 1. Infrastructural (location, Power, Water, Communication etc.) 2. Financial (Capital, working capital, Long –term funds) 3. Marketing 4. Taxation 5. Raw material 6. Inspections 7. Technology 8. Government policy etc. 11
• 12.
  Capacity building forEntrepreneurship  Entrepreneurship has its own rewards.  An entrepreneur is his own boss, can set his own hours, can own his business with investments – partly his own and partly from banks, is his own master and can plan the growth of his enterprise the way he wants.  Below are some tried steps for capacity building for prospective entrepreneurs.  Positive attitude – Success is 90% attitude and 10% aptitude. A positive attitude is bound to lead to success. 12
• 13.
  Capacity building  Learnto handle money intelligently – For success as an entrepreneur, it is absolutely necessary to become an efficient money manager.  Expect “no”- Realize that no’s are not personal. Every “no” gets you closer to a “yes”. Put your best foot forward and you will get a “yes”.  Be involved – Be a part of what is going on and network with others in your field. 13
• 14.
  Capacity building  Rememberthe magic word – In business the magic word is “Ask”. Never expect the business to come to you. You create your business by asking for it.  Be a goal setter – Set your goal, write it down, set a target for achieving the goal and mobilise all your energies and resources to accomplish the same each day, each week, and each month. Little can ever be accomplished without definite goals. 14
• 15.
  Capacity building  Beorganised – Each evening, list all the things you want to get done the following day. That gives you an organised approach to each day. As each task is finished, mark it off your list.  Be enthusiastic: Enthusiasm is the “fuel” that entrepreneurs run on. Enthusiasm generates its own energy. Energy and good health are synonymous with busy, happy people and people who are achievers. 15