Professional Documents
Culture Documents
Santanu Mukherjee
Module 1
entrepreneurship?
Classifications Role
of entrepreneurs.
of government to promote
entrepreneurship.
Entrepreneur Entrepreneur
The
concept was first established in the 1700s - the meaning has evolved ever since; Entrepreneur is a French word and commonly used to define a person, who organizes and operates a business or businesses; To some economists, the entrepreneur is
One who is willing to bear the risk of a new venture if there is a significant chance for profit; Others emphasize the entrepreneurs role as an innovator who markets his/her innovation; Some other economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being supplied.
is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence (Bowen and Hisrich, 1986).
an entrepreneur and creating a new business venture is analogous to raising children it takes more time and effort than you ever imagine and it is extremely difficult and painful to get out of the situation. Thank goodness you cant easily divorce yourself from either situation. When people ask me if I like being in business, I usually respond: On days when there are more sales than problems, I love it; on days where there are more problems than sales, I wonder why I do it. Basically, I am in business because it gives me a good feeling about myself. You learn a lot about your capabilities by putting yourself on the line. Running a successful business is not only a financial risk, it is an emotional risk as well. I get a lot of satisfaction from having dared it- done it-and been successful.
Successful
Come in various ages, income levels, gender, and race; They differ in education and experience; Research indicates that most successful entrepreneurs share certain personal attributes, including:
Creativity, Dedication, Determination, Passion; Self-confidence, and Smartness. Flexibility, Leadership,
is the spark
Drives the development of new products or services or ways to do business Its the push for innovation and improvement Its continuous learning, questioning, and thinking outside of prescribed formulas
Dedication
Work hard - 12 hours a day or more, even seven days a week, especially in the beginning, to get the endeavor off the ground Planning and ideas must accompany hard work for success
Flexibility
Ability to move quickly in response to changing market needs; It is being true to a dream while also being mindful of market realities.
Ability to create rules and to set goals; Its the capacity to follow through to see that rules are followed and goals are accomplished.
Passion
Gets entrepreneurs started and keeps them there; Provides the ability to convince others to believe in the vision; It helps to stay focused and to get others to look at the plans.
Self-confidence
Comes from thorough planning, reduces uncertainty and the level of risk; Self-confidence gives the entrepreneur the ability to listen without being easily swayed or intimidated.
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Common sense coupled with knowledge or experience in a related business or endeavor; The former gives a person good instincts, the latter, expertise; Many people have smartness they dont recognize; Employment, education, and real life experiences all contribute to smarts.
Factors
External
Factors
Strong desire to do something new; To be independent in Life; Make maximum use of technical / professional knowledge; Occupational experience background; Passionate about particular activity; Dissatisfaction with present job; Self-satisfaction.
Government grants & subsidiaries; To continue ancestor business; Financial assistance from Institutions; Availability of resources; Encouragement from big business houses; Availability of sick units on easy financial terms; Encouragement from family members role model in the family
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a person has been laid off once or more; Sometimes a person is frustrated with his or her current job and doesnt see any better career prospects on the horizon; Some people are actually repulsed by the idea of working for someone else.
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Innovative entrepreneur
This category of entrepreneur is characterized by smell of innovativeness; They sense the opportunities for introduction of new ideas, new technology, discovering of new markets and creating new organizations; Can work only when certain level of development is already achieved and people look forward to change and improvement; Very much helpful for their country because they bring about a transformation in life style; Example: Steve Jobs the founder of iPod, Michael Dell, founder of Dell Computers.
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or imitative entrepreneur:
Imitate the existing entrepreneur and set their enterprise in the same manner; Instead of innovation, may just adopt the technology and methods innovated by others; Suitable for under-developed countries for imitating the new combination of production already available in developed countries; Example: Walton BD. has introduced its motorbikes, refrigerators, televisions and other electronic appliances in Bangladesh not being the original inventor of those products.
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Customs; Religions; Traditions; Past habits; Being shy and lazy, they are very cautious to accept changes and they view changes with suspicion; They imitate only when it becomes perfectly clear that failure to do so would not result in a loss of the relative position in the enterprises; Example: Kodak, a company that happened to be the market leaders in producing analog cameras but they did not realize the change and the introduction of the Digicam.
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entrepreneurs:
Such entrepreneurs are conservative or orthodox in outlook; They always feel comfortable with their old fashioned technology of production even though technologies have changed; They never like to get rid of their traditional business, traditional machineries and traditional system of business even at the cost of reduced returns; Example: Citycell Telecom Bangladesh, in spite of having knowledge about there market fall they have not yet changed there business policy.
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entrepreneurs
Solo-operator:
The shopkeepers are like the solo-operators; They operate there business without recruiting any men power and supply the capital alone.
Active partners:
The active partners are different partnership firms; The partners actively participate in the raising of funds as well as with the operation of the internal management.
Inventors:
The software developers are also an entrepreneur as they invent new products for the solution of the new problems.
Challengers:
The challengers always seek for the new opportunities in the market to invest.
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Entrepreneurs
Buyers:
The buyers can also be the entrepreneurs; They find out an established institution and they buy the maximum share of that particular institution; On 20 October 2006 the board of directors of Anglo-Dutch steelmaker Corus accepted a $7.6 billion takeover bid from Tata Steel, the Indian steel company, at 455 pence per share of Corus.
Life timers:
The life timers are those who operate the business developed by one and is operated by generation to generation.
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Intrapreneurship Intrapreneurship
A
person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation; Intrapreneurship is now known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques, that are more traditionally thought of as being the province of entrepreneurship.
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Intraprenuer
Intraprener is employee Depends on the organization to implement his ideas. Does not bear all the risk.
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Attractive salary, promotion & incentives are the reward. Should have some professional or technical qualification.
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Facilitate investments
Recognition and promotion of early-stage investments, and; Angel investors, venture and seed funds, and impact investors through development of appropriate policy measures and fiscal incentives.
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entrepreneurial activity
Governments at all levels (central, state, and local) - reduce transaction time & costs through measures i.e. single-window clearance and access to well developed industrial clusters
Software Technology Parks of India (STPI) model could be emulated The STPI scheme provides various benefits to the registered units i.e. 100% foreign equity, tax incentives, duty free import, duty free indigenous procurement etc. Easy
Policy framework for easier exits to encourage early stage investments by Angels and others
Provide appropriate fiscal incentive on capital gains to Angels and other early stage investors
Source: Government of India Planning Commission, New Delhi, 2012
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Easy access to equity capital and debt Remove regulatory hurdles that inhibit domestic fund raising
Permit pension funds, insurance funds and provident funds to invest in earlystage venture funds could significantly improve capital flows; Special incentives i.e. tax credits could be provided to HNIs, corporate and institutions that invest in early stage venture funds or to incubators and to angel investors; Banks must also be encouraged to invest in early-stage venture capital funds.
Source: Government of India Planning Commission, New Delhi, 2012
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Government could establish a fund-of-funds (FOF) to seed other early stage venture funds
Capital from other sources (domestic and foreign) can be raised thereby creating a multiplier effect Develop and scale-up debt offerings A debt is created when a creditor agrees to lend a sum of assets to a debtor; Usually granted with expected repayment; in modern society, in most cases, this includes repayment of the original sum, plus interest; Critical to meeting working capital requirements; Early stage ventures cannot meet lender requirements.
Source: Government of India Planning Commission, New Delhi, 2012
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Industry bodies and chambers of commerce could drive greater collaboration between established and emerging businesses
Strategic collaboration to source collaboration and technology; Develop solutions and products tailored for emerging firms.
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A vibrant entrepreneurial ecosystem needs forums, virtual or physical, where all stakeholders can come together to share experience, expertise and develop symbiotic relationships
Develop online portals to
Provide comprehensive information to a new entrepreneur is highly valuable; Provide information on government policies and regulations; Provide means for virtual mentorship support.
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