The relevance of entrepreneurship in pharmaceutical services.

The relevance of entrepreneurship in pharmaceutical services.

coverageExplain requirements for entry into self-employmentIdentify roles of entrepreneur in pharmaceutical businessIdentify business opportunities in pharmacy practiceExplain product/service demand assessmentDescribe Government measures on small scale enterprisesDescribe the evaluation of business environment

requirements for entry into self-employment

Definition: Self-employmentis the act of generating one's income directly from customers through working, clients or other organizations as opposed to being an employee of a business (or person).

Self-employment is one way that people are meeting the challenges of company downsizings.

Millions of people are opting to work for themselves

requirementsAt a minimum one should fulfill the followings;1. Identify Business and Business StructureDetermine whether your business will operate as a sole proprietorship or partnership Corporations are owned by shareholders and managed by senior board members.2. Registration of business3. Licenses and PermitsContact the local or state government and apply for licenses and permits required to operate your business.

Roles of entrepreneur in pharmaceutical businessA vision for pharmacy practice as articulated in the Joint Commission of Pharmacy PractitionersPharmacists will be the healthcare professionals responsible for providing patient care that ensure optimal medication therapy outcomesThe mission of the profession of pharmacy is to improve public health through ensuring safe, effective and appropriate use of medications.

Pharmacy Practice Paradigm A paradigm shift is occurring in pharmacy practice.Over past 40 years, the pharmacists role was that of a compounder and dispenser.But currently the pharmacist is regarded as the drug therapy manager. This involves responsibilities to ensure that wherever medicines are provided and used, quality products are selected, procured, stored, distributed, dispensed and administered so that they contribute to the health of patients, and not to their harm.

However the scope of pharmacy practice now includes patient-centred care with all the cognitive functions of counselling, providing drug information and monitoring drug therapy, as well as technical aspects of pharmaceutical services, including medicines supply management. It is in the additional role of managing drug therapy that pharmacists can now make a vital contribution to patient care.

Dispensing is, and must remain, a responsibility of the pharmacy profession. Good Pharmacy Education Practice must cover these roles: Caregiver Decision-makerCommunicatorManagerLife-long learnerTeacher and Leader

Areas of work in a paradigm shiftEntrepreneurial drive and motives are required to invest in the new areas of the pharmacy practice paradigm as necessary for development of services in such areas.Such areas include;Pharmaceutical careEvidence based PharmacyMeeting patients needsChronic patient careSelf medication Quality Assurance of Pharmaceutical care servicesClinical PharmacyPharmacovigilance.

Simply entrepreneurship motive is required to for Increasing pharmaceutical services availabilityImprovement of quality of servicesReaching the unreached areasMeeting the unmet health related needsOptimizing the costs of health services particularly for medicines etcProviding a room for self employment of pharmacy personnel.

IDENTIFYING BUSINESS OPPORTUNITIES.11

Ideas

It begins with an idea....The word idea is an ancient Greek word meaning specific thought, which arises in the mind.In the business context, ideas form the basis of many business opportunities.Most people at some point in time have had a good idea, yet very few people actually chose to act on it.An entrepreneur, on the other hand, is constantly looking for new ideas, because ideas are the tools that entrepreneurs use to create business ventures12

Ideas contdIdeas may be based on common needs, the expertise and experience of the entrepreneur, solutions to everyday and, or existing problems. Coming up with the idea is just the beginning. Before anything can be done with an idea, the entrepreneur must first evaluate whether the idea presents a viable opportunity or not.13

Ideas contd

You need to evaluate the following:-Durability: The product / service will be around long enough for you to capitalize on the opportunity fully.Time: The product / service is offered at the right time for meeting the needs of the market.Added value: The product / service must create value for the end user / customerAttractiveness: The end user must want to buy it14

Ideas contdHowever, you must relate your idea to your own context: does it match your talents and interests? As an entrepreneur you need to make sure that the idea / concept is going to make you money!This session will show you how to identify opportunities within your own context and evaluate them in terms of who you are and where you will be operating15

Identifying OpportunitiesWhen you are looking for ideas for a new venture, the rule is that there are no rules you look at your situation and create as many ideas as you can think of.List ideas forsolving problems, offering better ways of doing things or just meeting unmet needs in your community. Dont try and decide whether or not they will work initially, just write as many of them down as possible16

Identifying opportunities contdOnce you have listed them down, then you can go back and decide whether they will work or not.The rule for deciding whether an idea offers an opportunity or not lies in the answer to the following questions:Is there a large enough market for it?Do you have the skills/resources to provide it?Have you done proper market research?17

Identifying opportunities contd

Do you have a good team/support behind you?Does your product/service have a sustainable competitive advantage?Is the market feasible Will you make a profit from the product/service you will be offering? 18

The concept of window of opportunity Every opportunity offers you, the entrepreneur the so called window of opportunityIt is the time that is available to the entrepreneur to create a new venture. You need to be able to;see that window, find it, measure it, open it and then close it again so that you can capitalize on the opportunities it presents.

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Window of opportunity

See the window:Opportunities arise out of environmental changes (demographics etc.), new knowledge (technology), unexpected events, competitor weaknesses, process needs (a need to improve a process), changing needs and perceptions.That is why as an entrepreneur, you need to be constantly scanning the environment for these changes and generating ideas to capitalise on the opportunities that these changes present.20

Window of opportunity contd Find the windowThe window is somewhere within a solid wall of competitors. Even the most established competitors have left gaps in the market.Finding those gaps, finding those areas where the customers needs have not been completely met, becomes an entrepreneurs opportunity21

Window of opportunity contd

Measure the size of the windowThis is where you need to do your homework you need to research your competition, research the size of the market to make sure it has the potential to become a viable business and to make a profit for you.Part of the process involves evaluating your competition, and you would do this using a SWOT analysis; Compare your offering to your competitors products and services on offer you must include substitute/alternative products22

Window of opportunity contdLook at the following:The quality/price/performance/delivery etc. all the things that make the product/service attractive to your customer.Your competitors value add.Evaluate your competition in terms of meeting customer needsHow active is your competition? Are they sluggish/asleep/nonresponsive to their customers needs or changes in the environment?23

Window of opportunity contdReview your competitors finance: their resources, costs and profitabilityLook at who are the service/pricing/performance/cost/quality leaders out there?Select the four market leaders and evaluate why their customers buy from them.Once you know your competition, you now need to evaluate your own competitive advantage against the possible size of the market.24

Window of opportunity contdThis is how you measure the size of your window. Is it worthwhile opening?

Open the window: Start and grow a business by creating a new or better product to meet the needs of the customers. The important thing now is to ensure that as an entrepreneur you keep growing.

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Window of opportunity contd Close the windowThis is the added value that you bring to the market, the sustainable competitive advantage that makes it difficult for other entrepreneurs to enter your window. The longer the window is left open-the longer you take to establish your competitive advantage-the more competitors can enter and dilute your market.The following factors will all contribute to your competitive advantage and therefore ensure the window is closed until you have had the chance to benefit from the opportunity.26

Window of opportunity contdThe price/value of your offering remember that price alone will not give you a sustainable competitive advantage.Customer convenience this will give you a major competitive advantage it includes improved lead times, quicker response times.Customer experience if they leave with a WOW feeling, then they will come back.Notable product attributes- if you have a unique product, you must protect it.Unique service features look at new ways of meeting your customers needs.

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Conducting a SWOT analysis

Identifying your business opportunities and the associated risks and potential problems can be done through a SWOT analysis.SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

S Strength: (Internal factors)These are things that are within our control and they happen at the present.These strengths need to be used to counteract (overcome) any weaknesses

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SWOT analysisExamples: Cheap raw materials, Comparatively cheap product price, Good packaging, Good relationship with customers. Once you have identified your strengths, you need to find ways to capitalise on them. In other words, you need to find ways to use them to your advantage.29

SWOT analysis W Weaknesses: (Internal factors)Things within our control, and they happen at present.Things we are missing or lack in our plan.Weaknesses need to be eliminated as much as possible.E.g. Weak selling effort, High price of products, Lack of promotion.After finding out your weaknesses, you need to look at ways to address them, to prevent them from causing unnecessary problems

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SWOT Analysis O Opportunities (External factors)These are positive things in the environment, that the entrepreneur must make use of.These are things which are beyond the control of the entrepreneur.This is different from strengths because, strengths are positive things that happen in the business. Opportunities are positive things that happen in the environment in which the business operates31

SWOT analysisExamples:Few and weak competitorsIncreasing demand for the productIncome of target group increases Once you have identified opportunities around you, look at ways to maximise and build on them.32

SWOT analysis

T Threats: (External factors)These are negative factors that are out of the entrepreneurs control as they happen in the environment.They can affect the business negatively if they are not eliminated.The reason why we have to look at threats is so that we are able to prevent them from affecting our business in a negative way. Examples: Cost of raw material increase, Natural disasters, Too much competition.Threats are detrimental to your business plan and you need to find ways to minimise them.33

Government measures on small scale enterprisesEntrepreneurial activity leads to economic growth and helps to reduce poverty, create a middle class, and foster stability. It is in the interest of all governments to implement policies to foster entrepreneurship and reap the benefits of its activityIt is entrepreneurial-friendly environment that will allow any individual or businessregardless of size, location or missionto expand and to thrive Says Thomas A Garrett(Economist).Among the most successful strategies for encouraging entrepreneurship and small business are changes in ;tax policy, regulatory policy, access to capital, and the legal protection of property rights also creation of a business culture.

Government measures on small scale enterprises: In TzFollowing recognition of importance of SMEs the government established measures to reinforce such sector;A policy guiding such sector was formulated in the year 2003 under the ministry of Industry and Trade SMALL AND MEDIUM ENTERPRISE DEVELOPMENT POLICYMission of the policy; The mission of this Policy is to stimulate development and growth of SME activities through improved infrastructure, enhanced service provision and creation of conducive legal and institutional framework so as to achieve competitiveness.

Government measures on small scale enterprisesThe government efforts to empower such sector includes;Development of different policies in which the SMEs are addressed; for example;The Tanzania Development Vision 2025, The NSEGRP, The Sustainable Industrial Development Policy - SIDP(1996 - 2020), The National Micro Finance Policy .Establishment and empowerment of institutions in support of SMEs eg.Small Industries Development Organisation SIDO , Addressing the Constraints faced by SMEs in Tanzania and setting some strategies against them.

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR In this policy, problems are identified, Government statements are articulated and appropriate strategies are specified. 1. Legal and Regulatory FrameworkPolicy statement; The Government will enhance implementation of programs aimed at simplification and rationalization of procedures and regulations so as to encourage compliance and minimize transaction cost. Strategies aimed at improving the legal and regulatory framework include: i. Simplify business registration and licensing procedures. ii. Simplify tax system and introduce tax incentives to nurse SMEs. iii. Review Government Procurement procedures to facilitate SMEs participation. iv. Establish a window within the commercial court for handling SME business disputes. v. Train and sensitise SMEs on intellectual property rights. Government measures on small scale enterprises cont,,,

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR cont,,,

2. Physical InfrastructurePolicy statement The Government will continue to improve the physical infrastructures and provision of utilities in collaboration with Local Authorities, private sector and development partners. The following strategies are designed to address infrustructual requirements in respect to SMEs: i. Local Authorities to allocate and develop land for SMEs ii. Develop industrial clusters and trade centres iii. Identify and allocate underutilized public buildings to SMEs.

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR cont,,,

3. Business Development Servicesa. Entrepreneurship DevelopmentPolicy Statement: The Government will promote entrepreneurship development through facilitating improved access of SMEs to financial and non-financial services In order to overcome this situation, the following measures will be undertaken: i. Inculcate through education, training and other programmes values and attitudes that are conducive to development of entrepreneurship. ii. Review school curricula to accommodate entrepreneurship development. iii. Introduce entrepreneurial programmes in vocational and technical training. iv. Facilitate entrepreneurship development programmes for selected target groups/sectors e.g school leavers

3. Business Development Services cont,,,b. Business trainingPolicy Statement: The Government will enhance the capacity of institutions providing business training to SMEs. In order to improve the business skills of SME operators, the following strategies will be pursued: i. Embark on capacity building of business training institutions aimed at improving quality of services provided ii. Facilitate tailor-made business training programmes for start-ups and for strengthening existing businesses.

3. Business Development Services cont,,, c. InformationPolicy Statement: The Government will facilitate and support programs aimed at increased access of information pertinent to the development of SMEs.The measures to be undertaken include: i. Set up of business centres so as to ensure that SME operators at all levels have access to information at affordable costs. ii. Support training on information technology e.g. E-commerce . iii. Establish a data bank for the SMEs including a national web-site for SMEs and a directory of service providers. iv. Conduct a census for SMEs

3. Business Development Services cont,,,D. Technology Policy Statement: The Government will facilitate acquisition and adaptation of technologies as well as enhance networking between R&D Institutions and SMEs in a bid to upgrade technologies so as to raise the productivity and competitiveness of the sector. The following strategies have been designed to handle technological aspect of SMEs. i. Establish mechanism for enhancing networking between SMEs and technology providers. ii. Facilitate joint ventures aimed at enhancing technology upgrading and transfer. iii. Facilitate capacity building of Industrial Support Organizations (ISOs) and other service providers. iv. Facilitate establishment of incubators.

3. Business Development Services cont,,,E. MarketingPolicy Statement: The Government is committed to facilitating support programs aimed at improving SMEs access to market.

On marketing, the following strategies will be undertaken: i. Promote business linkages between large and small enterprises. ii. Strengthen marketing agencies and institutions that support SMEs. iii. Create SMEs bulk provision systems through a cooperative mechanism. iv. Facilitate SMEs participation in local and international markets through trade fairs and missions. v. Establish SMEs exhibition centres. vi. Facilitate SMEs to meet standards vii. Facilitate training on trade issues i.e multilateral trading systems and regional trading arrangements viii. Facilitate SMEs benefit from government procurement needs and activities.

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR cont,,,4. Access to financePolicy Statement: The Government will enhance financial reforms aimed at further liberalization of the financial sector and the creation of financial intermediaries to cater for SMEs.To take care of this concern the following strategies will be implemented:- i. Promote transferring lessons and good practices from traditional financing mechanisms into suitable financial products for financing SMEs ii. Facilitate opening up of SME windows in financial Institutions. iii. Promote innovative financial products for SMEs such as hire purchase scheme, leasing, inventory financing, venture capital SMEs and, Saving and Credit Schemes. iv. Promote improving access of SMEs to bank financing through simplification of procedures v. Mobilise resources and promote development of new financial institutions for financing SMEs.

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR cont,,,5 Institutional Framework for SMEs Development Policy Statement: The Government will facilitate strengthening of institutions and associations supporting the SME sector. Strategies designed to improve the institutional framework include: i. Support establishment and strengthening of Associations of SMEs ii. Establish a forum for SMEs iii. Facilitate strengthening and networking of service providers of SMEs iv. Strengthen Government capacity to coordinate monitor and evaluation of the Policy v. Enhance the knowledge and skills of relevant government officials at all levels on SMEs development.

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR cont,,,6 Rural Industrialization: Policy Statement: The Government will facilitate the establishment of manufacturing enterprises in rural areas so as to add value to agro products.This policy has the following strategies to facilitate rural industrialisation include: - i. Strengthen extension services aimed at promoting industrialisation through SMEs. ii. Facilitate the establishment of industrial clusters/business centres at regional, district and ward levels iii. Facilitate the transfer of technology to rural areas, including upgrading of existing technologies. iv. Support establishment of rural industrial cooperatives

Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME SECTOR cont,,,7 Cross Cutting Issues:A. Environmental Considerations:Policy Statement: The Government will ensure that environmental considerations are given due emphasis in all SME development interventions.Environment at the moment is a major consideration in all aspects of development. To facilitate environmentally friendly SME development, the following strategies are designed:- i. Facilitate creation of awareness on environmental issues to SMEs and their service providers. ii. Facilitate simplification of environmental impact assessment procedures. iii. Encourage proper waste management including recycling techniques. iv. Facilitate production of technologies which apply renewable energy.

7 Cross Cutting Issues:Gender and the Disadvantaged GroupsPolicy Statement: Government will ensure that gender mainstreaming is enhanced in all initiatives pertaining to SME development This policy focuses at encouraging women and other disadvantaged groups participation in SME activities through the following strategies: i. Facilitate SME service providers to design special programs for women and disadvantaged groups. ii. Identify factors inhibiting women and other disadvantaged groups from going into business and design programs which will address those factors.

evaluation of business environment

BUSINESS DECISIONS

INTERNAL ENVIRONMENTEXTERNALENVIRONMENT

INTERNAL ENVIRONMENTRegarded as controllable factors: companies have control over them

Internal economy: some internal factors contribute increase in productivity

DETERMINANTS OF INTERNAL ENVIRONMENT OF AN ORGANISATIONMission & vision of the organisationManagement strategyCorporate culture & valuesLine & staff relationsQuality control systemTeam spirit among employeesWork culture Compensation systemCareer progression of employees

POLLUTANTS OF INTERNAL ENVIRONMENTConflict b/w different owner groupsConflicts b/w workers & managersInter departmental conflictsUnhealthy competition & conflict among employeesOffice politicsDiscrimination at work placeAbsenteeism

EXTERNAL FACTORSRegarded as uncontrollable factors: by and large beyond the control of company.

External economy: some external factors contribute to the growth of the company.

EXTERNAL ENVIRONMENTSuppliersCustomersCompetitorsFinanciers Society

SYMBIOTIC RELATIONSHIP b/w BUSINESS & ITS ENVIRONMENT

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