Enterp. unit 1

ENTREPRENEURSHIENTREPRENEURSHIPP

VANDANA INDORIAVANDANA INDORIA

MEANING MEANING :-:-

The word entrepreneur originates from french word enterprendre, which means “to init iate or undertake.”

Entrepreneur is one who always searches for change, responds to it & exploit i t as an opportunity – Peter Drucker.

Entrepreneur is an innovator, who introduce something new in the economy – Schumpeter. VANDANA INDORIAVANDANA INDORIA

Check Your Progress

Match the entrepreneur and his enterprise from the following words, which are all jumbled up

Wipro, Ambani, Patel, Azimji Premji, credit card, Reliance, Nirma, HDFC.


ENTREPRENEUR ENTREPRENEURSHIP ENTERPRISE

The OutcomeThe ProcessThe Person


EMERGENCE OF ENTREPRENEURSHIP

Entrepreneurial growth- after launch of Entrepreneurial growth- after launch of economic planning in 1952.economic planning in 1952.

Since then no. of Entrepreneurs have Since then no. of Entrepreneurs have increased manifold.increased manifold.

Entrepreneurs like Tata, Birla, Ambani, Entrepreneurs like Tata, Birla, Ambani, Dalmia etc. grew beyond the expected Dalmia etc. grew beyond the expected size & also established new frontiers in size & also established new frontiers in business in India & Abroad.business in India & Abroad.


Up to 19Up to 19 thth century, century, entrepreneurs included those entrepreneurs included those persons who earned profits from taking risks of persons who earned profits from taking risks of forming a new venture & the class was forming a new venture & the class was differentiated from those people who earned differentiated from those people who earned profits by supplying capitalprofits by supplying capital..

During 20During 20 thth century, century, they not only risk of creating they not only risk of creating a new venture but also innovate new useful a new venture but also innovate new useful products, technologies, markets, etc.products, technologies, markets, etc.

Another classAnother class of entrepreneurs is emerging of entrepreneurs is emerging since since 1980’s1980’s which is called which is called “intrapreneurs” or “intrapreneurs” or “corporate entrepreneurs”.“corporate entrepreneurs”.



CHARACTERISTICSCHARACTERISTICS


CHARACTERISTICSCHARACTERISTICS

VisionVision KnowledgeKnowledge Desire to succeedDesire to succeed IndependenceIndependence OptimismOptimism Value additionValue addition InnovationInnovation

Risk-TakingRisk-Taking Decision-MakingDecision-Making LeadershipLeadership Business PlanningBusiness Planning Organization BuildingOrganization Building Self confidenceSelf confidence Hard workingHard working


eBay

Case

Omidayar, the founder of eBay saw an opportunity to create a marketplace where people could find each other online, he risked his career by quitting his job to work on eBay full time, and he worked hard to build a profitable company that delivers a creative and useful service to its customers.


Why Become an Entrepreneur?Why Become an Entrepreneur?

The three primary reasons that people become entrepreneurs and start their own firms

Desire to be their own boss

Desire to pursue theirown ideas

Financial rewards


Knowledge & Skills Knowledge & Skills RequirementRequirement

Technical skills

Writing Oral Listening Coaching Ability to

organize Interpersonal Being a team

player

Business Management Skills Planning & Goal setting Decision - Making H.R. Marketing Finance Accounting Management

Personal Entrepreneur -ial Skills

Inner control / Disciplined Risk-Taker Innovative Change- Oriented Ability to Manage Change


““Intrapreneurship”Intrapreneurship” is is entrepreneurship within an existing entrepreneurship within an existing

business structure.business structure.

The process begins by establishing The process begins by establishing anan

an an intrapreneurialintrapreneurial culture. This refers culture. This refersto insti l l ing the entrepreneurial spir it to insti l l ing the entrepreneurial spir it

in an existing organization in order to in an existing organization in order to innovate and grow.innovate and grow.


Characterist ics of an Characterist ics of an IntrapreneurIntrapreneur

1 Often operates on the frontiers of Often operates on the frontiers of technology so understands mult iple technology so understands mult iple aspects of the environment.aspects of the environment.

2 Has a vision.Has a vision.3 Possesses flexibil i ty, problem Possesses flexibil i ty, problem

solving skil ls and uses a solving skil ls and uses a multi-disciplinary approach.multi-disciplinary approach.

4 Encourages open discussion and Encourages open discussion and teamwork. teamwork.

5.5. Builds a coalit ion of supportersBuilds a coalit ion of supporters ..VANDANA INDORIAVANDANA INDORIA

To establish intrapreneurship To establish intrapreneurship in an organization:in an organization:

1)1) Secure commitment by top, upper Secure commitment by top, upper and middle management.and middle management.

2)2) Identify ideas and general interest Identify ideas and general interest areas. areas.

3)3) Use technology for greater Use technology for greater f lexibil i ty.f lexibil i ty.

4)4) Use a group of interested Use a group of interested managers.managers.

5)5) Get close to the customers.Get close to the customers.VANDANA INDORIAVANDANA INDORIA

Role of Entrepreneurship in Role of Entrepreneurship in Economic DevelopmentEconomic Development

Optimum uti l izat ion of Optimum uti l izat ion of resources.resources.

Employment Employment opportunit ies.opportunit ies.

Std. of l iving.Std. of l iving. Increase in GDP.Increase in GDP. Generates Foreign Generates Foreign

Exchange.Exchange. Economy-strong & Economy-strong &

stable.stable.

Adequate distribution Adequate distribution of wealth.of wealth.

Uplif tment of region.Uplif tment of region. FDI’sFDI’s Govt. benefited Govt. benefited

(taxes)(taxes) Tourism industry Tourism industry

develops.develops. SSI’sSSI’s



DIFFERENCE BETWEEN DIFFERENCE BETWEEN MANAGERS & ENTREPRENEURMANAGERS & ENTREPRENEUR

FEATURESFEATURES ENTREPRENEUENTREPRENEURR

MANAGERMANAGER

Decisions Strategic Day to dayOrg. Flat Hierarchical Time span Long-term Short or mediumImp. Role Start-up Implementation Failures & mistakes

Deals with them as learning exp.

Strives to avoid them

Risk Like moderate risk

Careful / avoidVANDANA INDORIAVANDANA INDORIA

ENTREPRENEURIALENTREPRENEURIAL PROCESSPROCESS

IDENTIFY AN OPPORTUNITY

ESTABLISH VISION

PERSUADE OTHERS

GATHER RESOURCES

CREATE NEW VENTURE,PRODUCT OR MARKET

CHANGE/ADAPT WITH TIMEVANDANA INDORIAVANDANA INDORIA

Types of EntrepreneurTypes of Entrepreneur

Innovating Entrepreneurs

Adoptive or Imitative Entrepreneurs

Fabian Entrepreneurs Drone Entrepreneurs



FACTORS RESPONSIBLE FOR FACTORS RESPONSIBLE FOR EMERGENCE OF EMERGENCE OF

ENTREPRENEURSHIPENTREPRENEURSHIP

1. Background factors

2. Rewards

Social statusRecognition

Education, training & exp.

Family & other support

Financial condit ion


Personal Business

Need for achievement

3. MOTIVATIONAL FACTORS


4. Economic factors

Govt. policies

Financial assistance

Factors of prod

Ancil lary support


Key Elements in Key Elements in Entrepreneur’s BackgroundEntrepreneur’s Background

Supportive childhood family Supportive childhood family environment.environment.

Having a father who is self-Having a father who is self-employed helps.employed helps.

Education is important.Education is important. Aged 22-45 when starting Aged 22-45 when starting

venture.venture. Work history: dissatisfied with Work history: dissatisfied with

company job but has technical company job but has technical knowledge.knowledge.VANDANA INDORIAVANDANA INDORIA


BARRIERS TO BARRIERS TO ENTREPRENEURSHIPENTREPRENEURSHIP

SOCIETAL BARRIER

PERSONAL BARRIER

ENVIRONMENTAL BARRIERS

BARRIERS TO ENTREPRENEURSHIP


ENVIRONMENTAL BARRIERS

Raw-Material Labour Machinery Land & Building Financial Barriers Other Infrastructure Requirements


PERSONAL BARRIER

Lack of Confidence Lack of Motivation Lack of Patience Inability to Dream Lack of Dependability on Others


SOCIETAL BARRIER

External pressures need to be External pressures need to be overcome.overcome.

Graduates prefer to “get a real job”Graduates prefer to “get a real job”

Need to raise awareness of the Need to raise awareness of the option of starting a business.option of starting a business.

Peer group case studies can be Peer group case studies can be particularly effective.particularly effective.



Documents

Enterp. unit 1