ENTREPRENEURSHIP- The Learning Points of this Lesson

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What is Entrepreneurship and who is an Entrepreneur? Traits of an Entrepreneur Entrepreneurial Motivation Entrepreneurial Competencies Entrepreneurial Myths

ENTREPRENEURSHIP


It is the process of starting, establishing and expanding an enterprise that produces and markets goods and/ or services. It is creative act --- finds opportunities and derive benefits. Process by which opportunities to create future goods and services are discovered, evaluated and exploited.

Spirit of an Entrepreneur: Takes moderate risk for executing an opportunity, have the tenacity to push an idea through.

Ten Commandments for Entrepreneurial Success

         

Honing of Business Skills Acquiring New Technology and Processes Ingraining Shock Proofing Elements Understanding and Inspiring People Building up Strategic relationships Team-Building Reward Sharing Evaluation of Opportunities Global Operations Infinite Learning

Entrepreneur- definition


A Psychologist defines him as a person who is typically driven by some forces, which create a desire to obtain or attain something. A sociologist defines him as a person whose actions would determine his social status and who contributes to the development of the society.

Entrepreneur- definition


An economist defines him as one who brings resources, labor, material and other assets in to combinations that make their value greater than before and also one who introduces changes, innovation and a new order.

Entrepreneur- definition


Management experts define entrepreneur as a person who has vision and generates an action plan for it. Edward De Bono says that INNOVATION distinguishes Entrepreneur from others.

Entrepreneur- definition


Peter Drucker says, Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learnt, capable of being practiced .

Types of entrepreneurs- on the basis of ownership

All active owner managers are entrepreneurs - Madhurimalal.  Pure Entrepreneurs- they are the founders of business by conceptualizing and implementing business planAmbani, Ratan Tata etc  Second generation entrepreneurs- Anil Ambani, Mukesh Ambani.

Types of entrepreneurs on the basis of ownership- cont



Franchisee entrepreneur- a method of doing business wherein the parent owner licenses his trade marks and methods of doing business to a franchisee for monetary consideration. Ex- NIIT franchising its courses. Owner- manager entrepreneurs- They buy the business from the founder. Ex Bill Gates acquiring Hot Mail of Sabeer.

Types of entrepreneurs on the basis of personality traits



The Achiever personal drive to excel, self motivated, dare to dream and fulfillexample- Narayana Murthy. The Induced Entrepreneur- They plunge into business due to external stimuli for example, favorable government policies The Idea Generator- Highly creative with ability to sense demand much ahead of time. They enjoy First Mover advantage. Ex- Bill Gates, Steve Jobs of Apple etc.

Types of entrepreneurs on the basis of personality traits- cont



Real Achievers- who look for achievement of their own goals and also of employees,suppliers&distributors Real Managers- They run the business by analyzing external and internal situations, present and future, opportunities and threats and believe in incremental

Types of entrepreneurs on the basis of type of business



Industrial entrepreneurs- they manufacture need-based industrial products. Trading entrepreneurs- they stimulate demand and do the trading business. Corporate entrepreneurs- They demonstrate innovative skills in organizing and managing corporate undertakings.

Types of entrepreneurs on the basis of type of business- cont



Agripreneurs business related to agriculture in innovative ways.

Entrepreneurs-Miscellaneous
  

Innovative entrepreneurs Imitative entrepreneurs Fabian entrepreneurs- highly cautious and averse in introducing new changes. Drone entrepreneurs- They prefer loses to introducing changes in the present processes, equipments and policiesexample- Premier Padmini.

Entrepreneurs-Miscellaneous
   

   

Women entrepreneurs Dalit entrepreneurs Insupreneurs Copreneurs- both wife and husband starting a business venture. Ecopreneurs. Edupreneurs. Intrapreneurs. Social Entrepreneurs.

The Myths of Entrepreneurship

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Entrepreneurs are doers, not thinkers Entrepreneurs are born, not made Entrepreneurs are always inventors Entrepreneurs are academic and social misfits Entrepreneurs must fit the profile All entrepreneurs need is money All entrepreneurs need is luck Ignorance is bliss for entrepreneurs Entrepreneurs seek success but experience high failure rates Entrepreneurs are extreme risk takers (Gamblers)

Charms of being an Entrepreneur



Feel: creating something new, job creation, wealth maximization, and personal satisfaction. Charm: independence, money, adulation, media coverage, and power.

Entrepreneurial Motivation
Reasons that motivate a person to become entrepreneur  If Maslow s Need Hierarchy is taken, they fall under the category of sociological needs, esteem needs and self actualization needs.

Entrepreneurial Motivationcont


 

If Mc Cllenad s Theory of Needs are considered, they can be for achievement, moderate need for power and low need for affiliation. Desire to become one s own boss Dissatisfaction with employer and status quo etc.

Entrepreneurial Competencies
Background: Formal education, previous business experience, understanding of marketing, a possible role model, and financial resources. Competencies: Technical skills, business Management skills, personal skills, and an ethical mind set.

Entrepreneurial Competencies


Technical skills: Writing, Oral communication, Monitoring environment, Technology, Interpersonal, Listening, Ability to organize, Network building, Management style, Coaching, and Being a team player.

Entrepreneurial Competenciescont


Business Management Skills: Planning and goal setting, Decision making, Human relations, Marketing, Finance, Accounting, Management, Control, Negotiation, Venture launch, and Managing growth. Personal skills/Entrepreneurial: Self-control, Discipline, Risk-taker, Innovative, Change oriented, Persistent, Visionary, and Ability to manage change. Others: Risk taking, Desire to dominate own destiny, optimism, value addition, desire to excel etc.

Entrepreneurial Competenciescont
Other competencies include
            

Commitment, determination and perseverance Drive to achieve Opportunity orientation Initiative and responsibility Persistent problem solving Quick learners Tolerance for ambiguity Calculated risk taking Tolerance for failure High levels of energy Creativity & Innovativeness Tolerance to failure Vision

Risks and Stress



Risk: Financial Risk, Career Risk, Psychic(self) Risk, Family and Social Risk Stress: Urgency, Deadline, Excessive Responsibility (only I am capable), Workaholic attitude, and emotional reasons

Advantages of Entrepreneurship


Some advantages
You are your own boss  Enjoy the profits from you efforts  Sense of pride in your business  Flexibility in your work schedule


Disadvantages/ dark side of Entrepreneurship



Some disadvantages
  

Will need to put in long hours Need money to start Have to keep up with government rules and regulations May have to mark hard decisions (hiring, firing, etc.) May lose money

Disadvantages/ dark side of Entrepreneurship

    

Financial Risk Career Risk Family and Social Risk Psychic Risks All leading to Entrepreneurial Stress

Three Aspects of Entrepreneurship.



1. The identification/recognition of market opportunity and the generation of a business idea (product or service) to address the opportunity 2. The marshalling and commitment of resources in the face of risk to pursue the opportunity 3. The creation of an operating business organization to implement the opportunitymotivated business idea

Class Discussion


Make a Swot analysis of your Entrepreneurial traits What excites you about being an Entrepreneur? What are your major concerns? Identify 5 entrepreneurs in India and explain how and why you liked them?