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Entrepreneurship and Business Management

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What is Entrepreneurship?Capability to own and coordinateTotal capacity to take challengesDesire and ability to innovate and broaden

(Stepanek, 1962)

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Who is an entrepreneur?Individual completing own business (Webster)Particular person who sets up organization deals in order to make profits (Collins Cobuild)Organizer of an economical venture, one who owns, organizes, manages, and assumes the challenges of the business (Chandrashekhar)

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Why entrepreneurship?Procedure of making something unique, with value, by devoting necessary time and hard work, by assuming the enclosed financial, psychological, and social challenges, and obtaining the ensuing rewards of monetary and personal total satisfaction (Bowen and Hisrich, 1986).

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Role of the EntrepreneurAn founder who contains technological developments and financial finesses.Important part in creating aggressive products, procedures, and services.Generation of new employmentLocal and regional financial developmentImproved allowance of sources and exchange of technologies

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Entrepreneur as an Economic Pioneer

Introduction of new products and goodsIntroduction of new procedures and techniques of productionOpening up of new marketplacesOpening up of new resources of supplyIndustrial re-organization

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Strategic Importance of the Small-Scale Sector

Significant efforts to national income, employment, and trade earningsValue of output over Rs. 5,70,000 croresOccupation of over 17.5 million (> twice the private sector; almost as much as all open public sector employment)Exports of over Rs. 54,000 crores (> 35 per cent of all exports) (2000-01 figures)

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Entrepreneurship and Small Businesses

Business is especially crucial in little companies because:Important types of competitors for large firms; task their financial powerOffer a number of choice to consumersSources of advancement and creativityGood profession possibilities to work in an unstructured atmosphere of a little company

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Marketing ManagementDemand variables:Market, public, financial, governmental, and competitive aspects in market environmentPsychological, public, and financial styles in customer motivationsAll independent factors

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Marketing ManagementSemi-demand variables:Market segmentationCustomer behaviorOnly partly under the management over the business owner

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Marketing ManagementDecision Variables:Item features and pricingDistribution and individual sellingAdvertising guidelines Mostly under the management of the entrepreneur

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Marketing ManagementThe essential business operate in promotion control is to design an incorporated promotion plan, where the requirement and semi-demand factors of the market are based on the product and choice factors of the company.

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Market ResearchPromotion achievements relies on style of a particular marketing planA small business owner should not try to contend on a product-to-product foundation with huge companies (same products to same clients thru same programs at same costs !!)Instead, try to do “something different”.

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Operations ManagementProcedure for developing and using the actual physical sources of the company to improve the functional abilities of the companyProduct/ service designProcess designJob style Job standards

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Operations ManagementThe entrepreneur’s more compact company usually has to provide specific, few-of-a-kind products and customized services, without the benefits of huge manufacturing and huge distribution

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Financial Management1. Effective make use of the assets- current(short-term) and investment (long-term)2. Supply of resources to back up those assets3. Use of present obligations, advanced loans, and investment debt or equity4. Difficult for more compact companies to contend, in finance, with bigger companies, simply because they absence money.

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Financial ManagementFinancial situation needed for:1. New investment strategies in product development2. Growth and development of markets3. Process developments, etc.4. Conserve money handy by planning specific financial programs, e.g. cash costs, investment investment research, short-term plans

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Financial ManagementFinding additional funds from sources as1. Current liabilities2. Bank loans3. Value investments4. Maintained earnings5. Investment investment proposals6. Angel financing proposals

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Organizational Management and ControlMore compact organizations go thru recognizable levels of growthIncreased areas of expertise in projects of staffIncreased delegation on aspect of founderIncreased systematization and formalization of details confirming and bookkeeping procedures

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Formation and GrowthPurchase of a small company- recognize, screen, assess, settle, and framework paymentsConsolidation of a new company- extreme preservation of cash, company restrictions on costs, constant study of company’s technique.

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ConclusionsBusiness is an overwhelming and fulfilling professionNeed to focus on market research, money, and technology managementCannot contend straight with the “big guys”, so need to be impressive and impressive in all business functions