MANAGERIAL PROCESS SKILLS

Introduction

What is Entrepreneurship?
Eship can be described as a creative and innovative response to the environment. Such responses can take place in any field of social endeavour business, agriculture, education, social work and the like. Doing new things or doing things that are already being done in a new way is Eship. Joseph Schumpeter says Eship is a process requiring innovation.

Importance of Eship
Wealth creation Economic Development Self Development Employment including Self employment Nation Building Social Eship

Characteristics of Eship
Need for achievement Desire for responsibility Preference for moderate risks Perception of probability of success Stimulation by feedback

Energetic activity Future orientation Skill in Organizing Attitude towards money

Nature and Development of Eship

Factors influencing Eship

The Individual Environment Socio-cultural factors Support systems

The Individual
3 main factors which influence individuals behavior: Entrepreneurial motivation Personal involvement Coping capability

Environment
Economic and political environment Awareness of financial & commercial institutions Should know which industries are encouraged for small entrepreneurs Should know what raw materials are available & where. Should be well aware of the infrastructure, transportation facilities, power, market in proposed locations of his enterprise

Socio-cultural factors
Family background & norms & values of immediate social circle contribute to Eship development. Following aspects of normative behavior relevant 4 Eship: - Family expectations & pressures - Familys role in small business

Risk taking Independence Willingness to work Socialization.

Support Systems
Govt support Banks & other financial institutions

Women Entrepreneurship

Introduction
Main reasons for slow economic growth absence of women in mainstream economic activities Not many women in corporate world Increasing slowly in corporate world..

Eship a favourable career for Women

Provides flexibility High elasticity: Never overcrowded and No quota, no reservation for entry Excellent in managing finance Can easily beat men..

Qualities that make them successful

Endurance among women: More hard worker, Have the responsibility of work as well as family Responsibility: Responsibility at an early age.. Managerial acumen: Inborn, Manage household people & managerial skill Financial skills: Responsibility of running a household, Proper use of ltd resources, Good finance manager.. Communication skills..

Weakness of women entrepreneurs

Lack of assertiveness Ltd understanding of legal issues Emotional in business decisions Lack of exposures..

Govts efforts to encourage women Eship

Eship Development Programmes (EDP), Run by District Industries Centres (DIC) Indian govt with UN providing substantial financial help for training rural women..

Examples
Shehnaz Hussein Ekta Kapoor Vandana Luthra VLCC Shri Mahila Udyog Lijjat Papad Kiran Mazumdar Shaw Biocon Ltd

Innovation

Introduction
Intense competition Fast changing markets Technologies
Innovation acquired Importance

What is Innovation?
Its not a technical term, neither science or technology Its an economic & social term Is investing of resources 2 create new wealth or Investing of wealth 2 create new resources Always mkt focused as measured by assessing its impact on environment

Requires disciplined work force I = f (E) Not restricted to a large enterprise but includes any kind of activity

Innovation is an effort to create purposeful focused change in an enterprises economic or social potential..

What is Innovative Strategy?

Wht is our business & wht should it be? Assumptions regarding future which is different from ongoing business. Strategy of ongoing business: OPTIMIZE WHAT ALREADY EXISTS..

Ruling assumption of Innovative strategy: WHATEVER EXISTS IS AGING Is on the premise that existing pdts & services, mkts, distribution channels sooner or later go down..

Motto of strategy of Ongoing business BETTER & MORE Innovation NEW & DIFFERENT Innovative strategy is planned out by systematically getting rid of old & obsolete..

One needs innovation: To face competition To stand out in clutter To survive To solve problems..

Innovations & Profit

Profits reward for performing innovation Innovation has 2 categories: Reduce cost of production Increase demand for the product

Reduce cost of Production

Change in production function (HOW??) Intro of new machinery New & cheaper technique Exploit new source of R.M New & better method of organizing the firm..

Increase demand for the product

Change demand or utility function (HOW) Intro new pdt New variety or design of the pdt New & superior method of advertising Discover new mkts..

Instilling attitude for Innovation

Encourage creative conflict Big ideas come from small teams Learning happens away from desk Understand the pdts user Live in future Failure sometimes produces innovation..

Understand the pdt ( also competitors) Visualise by making lot of prototypes Evaluate & Re-evaluate Implement Team need leaders & mentors, not bosses Fresh ideas occur faster in a fun workplace

Rural Entrepreneurship

Define Rural Eship

We could define rural entrepreneurship more broadly as the enthusiastic willingness of a villager to organize his or her economic activity, whatever it may be (a business, a job, an investment etc) with the help of appropriate technology and practices conceived for a sustainable living.

Barriers to Entrepreneurship
Eship fail due to several barriers & problems: Lack of viable concept Lack of market knowledge Lack of technical knowledge

Lack of seed capital Lack of business know-how Competency-lack of motivation Legal constraints & regulations

Types of Entrepreneurs
Innovating Entrepreneurs: they are creative, aggressive on experimentation, cleverly put attractive possibilities into practice, helpful for the country, transformation in lifestyle, commonly found in developed countries. Imitative Entrepreneurs: readiness to adopt innovation, imitate technology, suitable for underdeveloped countries.

Fabian Entrepreneurs: traditionally bounded, Very cautious skeptical while practicing any change, shy and lazy, follow footsteps of their predecessors, use old techniques of production, Dealings determined by customs, religion, tradition & past practices

Drone Entrepreneurs: conservative or orthodox in outlook, Refusal to adopt & use opportunities to make changes in production, May even suffer loses, Laggards as they continue in tradition methods, When their pdt loses marketability they are pushed out of mkt

Intrapreneurship

Definition
Intrapreneur is an entrepreneur within an already existing (established) organisation. It is an entrepreneurial behaviour displayed by people within large organisations.

Characteristics of an Intrapreneur
Creates new ventures Innovates products/services Innovates processes Proactive Risk-taking Renews organisation Competitively aggressive

Global Vision for an Entrepreneur

Concept of International Eship

Is the process of an entrepreneur conducting business activities across national boundaries Future commercial strength of any country depends on the ability of entrepreneurs To take advantage of the markets outside the country borders

Push & Pull factors

Pull Factors: Proactive factors Pull entrepreneurs to expand the business Motivated because of the attractiveness of the international market..

Push factors: Reactive reasons Global expansion as a compulsion due to competition & rigidity in the domestic market

Reasons why go global

To expand Sales Minimize competitive risk Profit advantage Domestic market constraints Govt Policies & regulations Improves the image Strategic Vision

Foreign market entry modes

Exporting Licensing Joint venture Direct investment Mergers & Acquisitions

Restrictions on International trade

Tariff Barriers: Tax levied on goods traded internationally When imposed on goods entering into the country is referred to import duty To increase the demand of domestic pdts Quota: Limit on the no. of units that can be imported

Technical Barriers Exchange controls Direct & Indirect Restrictions on Foreign Investment Transportation cost

Developing a Business Plan

Key Ingredients of a Business Plan

The Executive Summary General info regarding the business Project Description The Market & Competitors The Marketing Plan Capital cost & Sources of Finance The Operation Plan Benefits of the Business to the Community