The document discusses various topics related to entrepreneurship in the pharmaceutical sector and small business development. It begins by outlining the roles of an entrepreneur in the pharmaceutical business, which include managing drug therapy and ensuring safe and effective medication use. It then identifies business opportunities in areas like pharmaceutical care and clinical pharmacy. The document also describes government measures to support small enterprises in Tanzania, such as establishing policies and institutions to address challenges faced by small and medium enterprises. Finally, it discusses conducting a SWOT analysis to identify business strengths, weaknesses, opportunities, and threats when evaluating potential opportunities.

1. The relevance of
entrepreneurship
in pharmaceutical
services.

2. coverage
a) Explain requirements for entry into self-employment
a) Identify roles of entrepreneur in pharmaceutical business
a) Identify business opportunities in pharmacy practice
a) Explain product/service demand assessment
a) Describe Government measures on small scale enterprises
a) Describe the evaluation of business environment

3. requirements for entry into self-
employment
 Definition:
 Self-employment is the act of generating one's income
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

4. requirements
 At a minimum one should fulfill the followings;
 1. Identify Business and Business Structure
 Determine 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 business
 3. Licenses and Permits
 Contact the local or state government and apply for licenses and
permits required to operate your business.

5. Roles of entrepreneur in
pharmaceutical business
 A vision for pharmacy practice as articulated in
the Joint Commission of Pharmacy Practitioners’
“Pharmacists will be the healthcare professionals
responsible for providing patient care that ensure
optimal medication therapy outcomes”
 The mission of the profession of pharmacy is to
improve public health through ensuring safe,
effective and appropriate use of medications.

6. Pharmacy Practice Paradigm
 A paradigm shift is occurring in pharmacy practice.
 Over past 40 years, the pharmacist’s 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.

7.  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.

8.  Dispensing is, and must remain, a responsibility of the pharmacy
profession.
 Good Pharmacy Education Practice must cover these roles:
 Caregiver
 Decision-maker
 Communicator
 Manager
 Life-long learner
 Teacher and
 Leader

9. Areas of work in a paradigm shift
 Entrepreneurial 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 care
 Evidence based Pharmacy
 Meeting patient’s needs
 Chronic patient care
 Self medication
 Quality Assurance of Pharmaceutical care services
 Clinical Pharmacy
 Pharmacovigilance.

10.  Simply entrepreneurship motive is required to for
 Increasing pharmaceutical services availability
 Improvement of quality of services
 Reaching the unreached areas
 Meeting the unmet health related needs
 Optimizing the costs of health services particularly for medicines etc
 Providing a room for self employment of pharmacy personnel.

11. IDENTIFYING
BUSINESS
OPPORTUNITIES
.
11

12. 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 ventures
12

13. Ideas cont’d
 Ideas 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

14. Ideas cont’d
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 / customer
 Attractiveness: The end user must want to buy it
14

15. Ideas cont’d
 However, 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 operating
15

16. Identifying Opportunities
 When 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 for
 solving problems,
 offering better ways of doing things or
 just meeting unmet needs in your community.
 Don’t try and decide whether or not they will work initially, just write as
many of them down as possible
16

17. Identifying opportunities cont’d
 Once 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

18. Identifying opportunities cont’d
 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

19. The concept of window of opportunity
Every opportunity offers you, the entrepreneur the so called“windowof
opportunity”
It 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.
19

20. 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
the environment for these changes and generating ideas
capitalise on the opportunities that these changes present.
20

21. Window of opportunity cont’d
Find the window
 The window is somewhere within a solid wall
competitors.
 Even the most established competitors have
gaps in the market.
 Finding those gaps, finding those areas
customer’s needs have not been completely
becomes an entrepreneurs opportunity
21

22. Window of opportunity cont’d
Measure the size of the window
 This is where you need to do your homework – you
research your competition, research the size of the
make sure it has the potential to become a viable
and to make a profit for you.
 Part of the process involves evaluating your
you would do this using a SWOT analysis;
Compare your offering to your competitor’s products
services on offer – you must include
products
22

23. Window of opportunity cont’d
 Look at the following:
 The quality/price/performance/delivery etc. –all the things that
make the product/service attractive to your customer.
 Your competitor’s value add.
 Evaluate your competition in terms of meeting customer needs
 How active is your competition? Are they
sluggish/asleep/nonresponsive to their customer’s needs or
changes in the environment?
23

24. Window of opportunity cont’d
 Review your competitor’s finance: their resources, costs and
profitability
 Look 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

25. Window of opportunity cont’d
 This 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.
25

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

27. Window of opportunity cont’d
 The 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.
27

28. 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
28

29. SWOT analysis
Examples:
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

30. 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
30

31. 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 operates
31

32. SWOT analysis
 Examples:
 Few and weak competitors
 Increasing demand for the product
 Income of target group increases
Once you have identified opportunities around you, look at ways
to maximise and build on them.
32

33. SWOT analysis
 T – Threats: (External factors)
 These are negative factors that are out of the entrepreneurs control as
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
from affecting our business in a negative way.
Examples: Cost of raw material increase, Natural disasters, Too much
Threats are detrimental to your business plan and you need to find ways to
them.
33

34. Government measures on small
scale enterprises
 Entrepreneurial 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 activity
 ‘’It is entrepreneurial-friendly environment that will allow any
individual or business—regardless of size, location or
mission—to 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.

35. Government measures on small
scale enterprises: In Tz
Following 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 POLICY’
POLICY’
Mission of the policy;
The mission of this Policy is to stimulate development and growth
and growth of SME activities through improved infrastructure,
infrastructure, enhanced service provision and creation of
of conducive legal and institutionalframework so as to achieve
achieve competitiveness.

36. Government measures on
small scale enterprises
The 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
SMEs eg.
 Small Industries Development Organisation SIDO ,
 Addressing the Constraints faced by SMEs in Tanzania
setting some strategies against them.

37.  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 Framework
 Policy statement;
 The Government will enhance implementation of programs aimed at simplification
and rationalizationof procedures and regulations so as to encourage compliance and
minimize transactioncost.
 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,,,

38. Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF
THE SME SECTOR cont,,,
 2. Physical Infrastructure
 Policy statement
 The Government will continue to improve the physical
infrastructuresand provision of utilitiesin 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.

39. Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME
SECTOR cont,,,
 3. Business Development Services
a. Entrepreneurship Development
 Policy Statement:
 The Government will promoteentrepreneurship developmentthrough
facilitatingimprovedaccess of SMEs to financial and non-financial services
 In order to overcomethis 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

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

41.  3. Business Development Services cont,,,
 c. Information
 Policy Statement:
 The Government will facilitate and support programs aimed at increased access
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
 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
 directory of service providers.
 iv. Conduct a census for SMEs

42.  3. Business Development Services cont,,,
 D. Technology
 Policy Statement:
 The Government will facilitate acquisition and adaptation of technologies as well
networking between R&D Institutions and SMEs in a bid to upgrade technologies
the productivity and competitiveness of the sector.
 The following strategies have been designed to handle technological aspect of
 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
providers.
 iv. Facilitate establishment of incubators.

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

44.  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.

45. Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF
THE SME SECTOR cont,,,
 4. Access to finance
 Policy Statement:
 The Government will enhance financialreforms 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.

46. Chapter 5: POLICIES AND STRATEGIES FOR DEVELOPMENT OF THE SME
SECTOR cont,,,
 5 Institutional Framework for SMEs Development
 Policy Statement:
 The Government will facilitatestrengthening of institutionsand associations
supporting the SME sector.
 Strategies designed to improve the institutionalframework 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.

47. 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/businesscentres 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

48. 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 properwaste management including recycling techniques.
iv. Facilitateproduction of technologies which apply renewable energy.

49.  7 Cross Cutting Issues:
 Gender and the Disadvantaged Groups
 Policy 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 addressthose factors.

50. evaluation of business environment

51. BUSINESS DECISIONS
INTERNAL
ENVIRONMENT
EXTERNAL
ENVIRONMENT

52. INTERNAL ENVIRONMENT
 Regarded as controllable factors: companies have control over
them
 Internal economy: some internal factors contribute increase in
productivity

53. DETERMINANTS OF INTERNAL
ENVIRONMENT OF AN ORGANISATION
 Mission & vision of the organisation
 Management strategy
 Corporate culture & values
 Line & staff relations
 Quality control system
 Team spirit among employees
 Work culture
 Compensation system
 Career progression of employees

54. POLLUTANTS OF INTERNAL
ENVIRONMENT
 Conflict b/w different owner groups
 Conflicts b/w workers & managers
 Inter departmental conflicts
 Unhealthy competition & conflict among employees
 Office politics
 Discrimination at work place
 Absenteeism

55. EXTERNAL FACTORS
 Regarded as uncontrollable factors: by and large beyond the
control of company.
 External economy: some external factors contribute to the
growth of the company.

56. EXTERNAL ENVIRONMENT
 Suppliers
 Customers
 Competitors
 Financiers
 Society

57. SYMBIOTIC RELATIONSHIP b/w
BUSINESS & ITS ENVIRONMENT
BUSINESS
POLITICAL
LEGAL
ECONOMIC
SOCIAL
CULTURAL
TECHNOLOGICAL
GLOBAL
NATURAL