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8/22/2019 Ent Mgt Lect 1- Introduction
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CONCEPTOF ENTREPRENEUR,
ENTREPRENEURSHIPAND ENTERPRISE;
ADVANTAGES
ENTREPRENEUR
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EVOLUTIONOFENTREPRENEUR
Entrepreneur French language to designate an
organizer of musical entertainments.
Oxford English dictionaryDirector or manager of a
public musical institution, who gets up entertainment.
In 16th Century people engaged in military activities.
In 17th century extended to cover construction
activities.
In 18th century this referred to economic aspects.
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Riskbearer
Organizer
Innovator
The entrepreneur, by definition,
shifts resources from areas of
low productivity and yield to
areas of higher productivity and
yield. Of course, there is a risk
the entrepreneur may not
succeed.Innovation has to be market driven.
(Drucker,
85)
The entrepreneur is a person with
a high need for achievement.
This need for achievement is
directly related to the process of
entrepreneurship.David McClelland
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Francis Walker says :: Entrepreneurs should be pioneer,
captain of the ship, must have huge capabilities , a good
knowledge of managerial functions.
Qualities of aGood
Leader
Qualities of
GoodManage
r
Operational
Excellence
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WHICH IS THE BEST AGE TO BECOME AN
ENTREPRENEUR ????
Global Entrepreneurship Monitor Report :::
Average age of Entrepreneurs at start up is 32 years.
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DEFINITION OF ENTREPRENEUR
Entrepreneurship is derived from the French verb
ENTERPRENDRE.According to Oxford Dictionary : One who undertakes an
enterprise, especially a contractor acting as intermediary
between capital and labour
Joseph a. Schumpeter defines entrepreneur for an advanced
economy as:
The creation of a new good or a new quality; The creation of a
new method of production; The opening of a new market; The
capture of a new source of supply; The creation of a new
organization or industry In case of a developing economy :: One who starts an industry
old or new, undertakes risk, Uncertainties, performs
managerial functions.
Innovation, Risk Takin , Vision, Or anisin skills.
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Latest concept on entrepreneur
Perceives opportunities for profitable investments.
Arranges capital. Provides personal guarantees.
Supplies technical know how.
Warren Bennis, a noted writer on leadership, says: "To choosea direction, an entrepreneur must have developed a mental
image of the possible and desirable future state of the
organization. This image is vision. The vision is something
like a dream which an entrepreneur keeps in his/her heart
24 hours a day, 365 days a year. The vision reflects theheights where an entrepreneur wants his/her venture to
reach
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CHARACTERISTICSOFENTREPRENEUR
Drive
Perseverance
Ambition
Leader
Competitive
Interpersonal skills
Innovative skills
Ability to bounce back
Vision
Motivation
Self-confidence
Self Satisfaction
Extrovert
Results orientated
Committed
Risk taker
Sociable
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Characteristic Entrepreneur Manager
Behavior Characterized by Desire for Control Delegation of Authority
Management Style One-Man Show Management Team
Driving Force Creativity - Innovation Establish and Preserve the
Status Quo
Organizational Growth Rapid Reaction Strategic Planning
Organization Structure Informal, Flexible Organized
Decision-Making Intuitive Collect Information and
Seek Advice
Definition of Aims In terms of "Vision" In Commercial Terms
Attitude to Money A By-Product Measure of Success
Attitude to Risk Calculated Risks Avoidance of Risks
Organizational Culture "Entrepreneurial Culture" "Management Culture"
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ENTREPRENEURV/S MANAGER
Characteristics Entrepreneur Manager
Behavioural Differences Wants to "be in control" of his life, his
business and especially of his
employees.
Enters a company which needs
to delegate authority.
Management Style Is very demanding, leaving very little
room for error? In most cases the
business is a "one man show", even
if there are other employees.
He must be tolerant of failure
(and see it as a basis for
learning) and develop an
administrative team.
The Moving Force This is characterized by concepts
such as "entrepreneurship",
"creativity", "innovation", and so on,
indicators of the desire to create
"something from nothing".
This is characterized by
concepts such as "order",
"organization", "procedures",
and so on, indicating the desire
to organize and maintain what
exists.
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GrowthHas ability to react quickly and effectively
to new business opportunities. Is the
foundation for rapid growth of the
company!
Professional management is
noted for medium and long term
strategic planning, which leads to
controlled growth of the company
during the process of
establishment.
Organizational
StructureThe entrepreneurial organization is
characterized by its informal, flexible structure,
which allows it to adapt to changes required
by its rapid growth.
Professional management requires
a formal and fairly rigid structure,
which leaves no room for rapid
reactions to business opportunities,but protects the organization from
sudden collapse.
Decision-Making They usually makes decisions, even those ofcritical importance for his business, on the
basis of his own personal intuition and "gut
feelings".
They makes decisions after
collecting detailed information and
reaching operative conclusions,
while relying on experts both from
within and outside the organization.
D fi iti f Ai H d ib hi i ti i t H d ib th
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Definition of Aims He describes his organization in termsof "vision", "dream" and "mission"
and manages to give his employees
the feeling that they are working for a
higher aim than just marketing a
product and/or service.
He describes the company
aims in terms of market
segments, yield per worker
and profitability.
Attitude to Money Myth: They are driven by the desire forpower and money, but they are driven by
the desire for success rather than power.Driven by Financial returns.
Attitude to Risk Are Calculated Risk taker. He is afraid of risks and tries tomaintain the status quo.
Company CultureHe does not usually try to define a
"culture" for the organization he sets up
culture which is characterized by large
doses of charisma and
manipulativeness."
He does try to establish a well-
defined company culture, based
on company values on one hand
and commercial aims on the
other
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ENTREPRENEURIALSKILLS
Individual skills
Functional knowledge, Negotiator, behavioral skills, learning
nature, listening skills etc.
Group Skills
Team spirit.
Business Management Skills
Human relations, Decision making, Goal setting etc.
Enterprise Skills
Setting vision, market sensing skills etc.
Communication Skills -- putting intelligence into words.
Soft skills --- clarity of expressions, Alertness.
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ENTREPRENEURSHIP
It involves not only the process that leads to the setting up of abusiness entity but also the expansion and development of anon going concern.
The study of entrepreneurship is concerned with theentrepreneurial behavior, the dynamics of business set up and
expansion and development. It is a process of innovation and new venture creation.
Process of creating something new and assuming the risks
and rewards.
Enterprise---- Capital, Labor, Entrepreneur, Land.
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MATCHTHEFOLLOWING
Entrepreneurs / Successor
Kiran Mazumdar Shaw
Late. Dhirubhai Ambani
N. R. Narayana Murthy
Dr. Verghese Kurien
Karsanbhai Patel
Azim Premji
Sam Walton
Bill Gates
Shahnaz Husain
Late P. C. Mahalanobis
Venture / Known as.
Wal- Mart Co founder of Microsoft
Father of White Revolution
Nirma brand
Buzz in Biotech Infosys technologies.
Wipro
Indias Quality Guru.
Reliance Group Herbal Usage
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Richard Branson, Virgin
empire
Bill Gates, Microsoft
Steve Jobs, Apple
Thomas Edison,
General Electric
Walt Disney ... ?????
QUALITIES
Thrill, excitement and risk
Highly creative problem
solver
Are impulsive in nature
Are ambitious
Have tons of energy for
things they are interested
in
Love to be the hero in an
emergency
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SUMMARIZE
Drive, as defined in the study, is composed of responsibility,
vigor, initiative, persistence and health. Thinking ability consists of original, creative, critical, and
analytical thinking.
Competency in human relations means emotional stability,
sociability, good personal relations, consideration,
cheerfulness, cooperation. and tactfulness.
Communications skills include verbal comprehension, and
oral and written communications.
Technical knowledge is the manager's comprehension of
the physical process of producing goods or services, and theability to use the information purposefully.
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ENTREPRENEURSHIP QUIZ
1. Are you a self-starter?
Yes, I like to think up ideas and implement them.
If someone helps me get started, I will definitely follow through.Frankly, I would rather follow than lead.
2. How do you feel about taking risks?
I really like the feeling of being on the edge a bit.
Calculated risks are acceptable at times.
I like the tried and true.
3. Are you a leader?
Yes.
Yes, when necessary.
No, not really.
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4. Can you and your family live without a regular paycheck?
Yes, if that is what it takes.
I would rather not, but understand that may be part of the process.
I do not like that idea at all.
5. Could you fire someone who really needed the job your
business provided?
Yes, I may not like it, but that is the way it goes sometimes.
I hope so.
I really can't see myself doing that.
6. Are you willing to work 50 hours a week, or more?
Again, if that is what it takes, yes.
Maybe in the beginning.
I think many other things are more important than work.
7. Are you self-confident?
You bet!
Most of the time.
Unfortunately, that is not one of my strong suits.
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8. Can you live with uncertainty?
Yes.
If I have to, but I don't like it.
No, I like knowing what to expect. 9. Can you stick with it once you have put your mind to
something?
I usually will not let anything get in the way.
Most of the time, if I like what I am doing.
Not always. 10. Are you creative?
Yes, I do get a log of good ideas.
I can be.
No, not really.
11. Are you competitive?To a fault sometimes.
Sure, mostly.
Not really, my nature is more laid-back.
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12. Do you have a lot of willpower and self-discipline?
Yes.
I am disciplined when I need to be.
Not really.
13. Are you individualistic or would you rather go along with the
status quo?
I like to think things through myself and do things my way.
I am sometimes an original.
I think strongly individualistic people are a bit strange.
14. Can you live without structure?
Yes.
Actually, the idea of living without a regular job makes me nervous.
No, I like routine and structure in my life.
15. Do you have many business skills?
Yes I do, and those I don't have, I'll learn.
I have some.
No, not really.
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16. Are you flexible and willing to change course when things
are not going
your way?
Yes.
I like to think so, but others may disagree.
No, I have a fairly rigid personality.
17. Do you have experience in the business you are thinking of
starting?
Yes.
Some.
No.
18. Can you juggle multiple tasks?
Yes.
I think so.
I think not.
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19. Are you willing to really hustle for clients and
customers?
Sure.
If I have to.
I would rather not.
20. How well do you handle pressure?
Quite well.
Its not my strongest trait, but I can do it.
Not well at all.
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Your score:
Scoring:
80 - 100:
You have both the temperament and the skills to become an
entrepreneur..60 - 79:
You are not a natural entrepreneur, but may become one over
time.
Below 60:
You would be wise to think of something else to do besides
self-employment.
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