ENTREPRENEURSHIP INTRODUCTION

What does Entrepreneur mean? (ntrprnr) [French= one who undertakes]

WHAT IS AN ENTREPRENEUR?

A person who assumes the organization, management, and risks of a business enterprise.

Problem Solver

Richard Cantillon characterized an entrepreneur as an individual who engages in business without an assurance of the profits he will derive from his enterprise.

Adam Smith described an entrepreneur as an individual who forms an organization for commercial purpose. He is a proprietary capitalist as well as supplier of capital and a manager.
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Joseph Schumpeter said an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation.

Peter Drucker said an entrepreneur is one who searches for change , responds to it and exploits it as an opportunity.
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Carl Menger saw an entrepreneur as an astute individual who could envision the transformation and create the means to implement it.

CONCEPT OF ENTREPRENEUR
A Person

With Dreams, Originality & Daring Who decides how to run Commercial Organization. Who co-ordinates all Activities. Who anticipates future trends of Demand & Prices Who Invents/ Introduces New Ideas and Products/Processes Essential element for generating investment opportunities in an Economy Visionary with outstanding leadership qualities.

CHARACTERISTICS OF ENTREPRENEURS

Self Reliant Possess drive, persistence, ability to complete tasks, and willing to work hard. Passion Self Confidence
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ENTREPRENEUR SKILLS

Ability

to plan Skills

Communication Marketing

Skills Skills Skills

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Management Interpersonal

Leadership Skills
Team Building Skills Creative problem solving Negotiating Networking
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ENTREPRENEURIAL ATTRIBUTES

Achievement orientation and ambition Self confidence and self esteem Perseverance High internal locus of control (autonomy) Action orientation

Preference for learning by doing Hardworking Determination Creativity

ENTREPRENEURIAL BEHAVIORS
Grasping opportunity Taking Initiative Solving Problems Creatively Managing autonomously Taking responsibility for, and ownership of, things

Seeing things through Networking effectively to manage independence Putting things together creatively Using judgment to take calculated risk

Routes for getting started as an entrepreneur

Family business Franchise New Venture Buying, Acquisition

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TYPES OF ENTREPRENEURS
Based on

Type of business Use of technology Motivation Growth Stages of development Others

ENTREPRENEURS ACCORDING TO TYPE OF BUSINESS

Trading entrepreneur Corporate entrepreneur

Industrial entrepreneur
Large Medium Small Tiny

Retail entrepreneur Service entrepreneur

Agricultural entrepreneur
Plantation Horticulture Dairy Forestry

ENTREPRENEURS ACCORDING TO USE OF TECHNOLOGY

Technical entrepreneur Non-technical entrepreneur Professional entrepreneur

ENTREPRENEURS ACCORDING TO MOTIVATION

Pure Entrepreneurs Induced Entrepreneurs Motivated Entrepreneurs

Spontaneous Entrepreneurs

ENTREPRENEURS ACCORDING TO GROWTH

Growth Entrepreneurs Super-growth entrepreneurs

ENTREPRENEURS ACCORDING TO STAGES OF DEVELOPMENT

First Generation Entrepreneurs Modern Entrepreneurs Classical Entrepreneurs

OTHERS

Innovating Entrepreneurs Imitative Entrepreneurs

FUNCTIONS OF AN ENTREPRENEUR

Assumption of Risk Business Decisions Managerial functions like

Raising funds Planning production Purchasing raw material innovation Earning profits Deciding project

Motivational reasons to become Entrepreneurs

Ambition
To make money Gain social prestige Self employment /independence

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Compelling reasons
Unemployment /dissatisfaction with present job Use technical knowledge and skills Put idle funds to use

ENTREPRENEURSHIP

Robert Ronstand called entrepreneurship a dynamic process of creating incremental wealth.

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Entrepreneurship

Helps to solve problems of

Employment generation National production Dispersal of economic power Balance regional development Improve standard of living
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Harnessing youth vigor

Entrepreneur

Entrepreneurship

Enterprise

Person / Being

Process of Action

Object

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ENVIRONMENT FOR ENTREPRENEURSHIP

Socio economic environment Family background Standard of education and technical knowledge Financial stability Political stability and governments policy

Caste and religious affiliation Availability of supporting facilities Achievement motivation Personality and personal skill

Influencers of entrepreneurial development

Scientific/ Technical Research new products and projects Government Policy supportive Training inputs SISI, NIED to encourage new entrepreneurs Focused on capital new ideas, invention, capitalization Conducive Environment Awards
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Factors promoting Entrepreneurship

Internal

Desire to work independently Occupational Experience Technical/Trade Skills & Knowledge

External

Supportive government Availability of finance Ancillary support facilities Infrastructure availability

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Facilitating factor
Use previous knowledge/experience in similar area Influence & encouragement of family and friends Imitation of other successful entrepreneurs

STEP TOWARDS ENTRE

Find the right starting place

Evaluate Opportunities

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THREE ASPECTS TO LOOK OUT

The identification/recognition of market opportunity and the generation of a business idea (product or service) to address the opportunity

The marshalling and commitment of resources in the face of risk to pursue the opportunity

The creation of an operating business organization to implement the opportunity-motivated business idea

GENERAL QUESTIONS ABOUT OPPORTUNITIES

a potentially successful product idea for that opportunity? What about chance of success and risk? What about existing competitors if any? costs of pursuing this opportunity? Profits? Expenses? How to do enough sale to cover costs and keep a business running successfully? enough information to determine if you should pursue the opportunity

Attitudes related to Entrepreneurship

Tendency to take moderate risk

An eye for economic opportunity

Imaginative ,Initiative work Believe one can change the environment Analyze situation and plan action Satisfaction in successful task completion
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Features of Entrepreneurship with Examples

High Achievement - Ambani,Birlas, NarayanMurthy

Innovation - Sabeer Bhatia

Organization Building - Amul, Nirma, Reliance Group Level Activities - Lijjat Managerial Skills - Ranbaxy, Ambanis Gap Filling - Amul (Operation Flood)
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Criteria for success in entrepreneurship

Shared

vision Marketable idea Sound strategy to implement action plan Layer of competent management Shared value system Professionalism Spirit of sacrifice Pride in national wealth creation Bread & butter stream and R&D Leadership
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Barriers to Entrepreneurship
Economic

like capital, labour and raw material Non economic like social, cultural (traditional values, social status) Personal like sustained motivation, inability to dream Impatience, lack of clear perception Difficulty to deal with ambiguity and emotional (fear of failure).
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NEW TRENDS

Social Entrepreneur

Serial Entrepreneur
Knowledge entrepreneurship

INTRAPRENEURSHIP

When entrepreneurship is describing activities within a firm or large organization it is referred to as intrapreneurship .

An intrepreneur is a person who has an entrepreneur skill set but works within an organization.

Intrapreneur is a "A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risktaking and innovation".

DISTINCTION BETWEEN ENTREPRENEUR AND INTRAPRENEUR

Semi-independent,
depends on others for finance, No profit from innovations, not real owner, Limited risk, works within organization

ENTREPRENEURSHIP AS A GOOD CAREER

OPTION
Determinants Nature Scope Orientation Serve others Self Saturating Limited Routine Owner Self Generating Unlimited Creative

Status Quo
Avoid problems Dependent Earning Contribution to Wealth Fixed Consumer

Innovative
Solve problems Independent Growing Generator

Entrepreneurship in India

Barter system & currency Caste System Agriculture Education Colonial rule Managing agents Founder Entrepreneurs Trader community SSI development Reforms in 1990s Liberalization India Multinationals and Joint Ventures
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INDIAN ENTREPRENEURS

S.L.Kirloskar G.D.Birla Jamnalal Bajaj R.P.Goenka B.P.Godrej Brijmohan Lal Munjal Narayan Murthy Kiran Muzumdar Shaw

GROWTH OF MR. DHIRUBHAI AMBANI

Petrol Pump assistant Yarn Dealer Weaving Business Textile mill Polyester Yarn manufacture Backward Integration & diversification Refinery Mobiles, Retail outlets Power & Oil Exploration Infrastructure

AMBANI CONTINUED.

Appreciates ordinary investor Knowledge of stock markets Changes in Govt. policies Mega Capacities at competitive costs Projects completed on schedule Adversities-strikes, floods, import duty restrictions,competition