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A presentation by J.M.Pant
Module 1: Entrepreneurship-Setting The stage
What Motivates Entrepreneurs?
The Making Of An Entrepreneur- Paradigm Shift
Paradigm Busters
J.M.PantManagement Consultant, Trainer and Visiting Professor
(0)9811030273, [email protected]
Program on Educational Entrepreneurship
A presentation by J.M.Pant
What Motivates You?
A presentation by J.M.Pant
Brief Overview of Motivation
The process of motivation
Inner state ofDisequilibria-Gap in need,
Desire orexpectation
Motivation Desired behaviour
GoalAccomplished
Hygiene factors and motivators-Money
Awards, recognition, moreResponsibility, Power,
Achievement, Affiliation
A presentation by J.M.Pant
Self Development, Self motivation(Passion, Interest)
Energisingothers
Energy Execution
Entrepreneurial Leader
Brief Overview of Motivation
Cutting edge
A presentation by J.M.Pant
Brief Overview of Motivation
Self fulfilment needs
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
Motivational Needs (Maslow Hierarchy)
A presentation by J.M.Pant
Brief Overview of Motivation
• Achievement Motivation
• Desire for excellence, sets high standards, prefers challenge.
• Likes to take moderate risks.
• Tends to persist in the face of adversity. Uses failures as a learning experience.
• Self driven, takes initiative
• Enjoys autonomy and flexibility
• Hunger for more.
• Not satisfied, once goals are achieved, sets higher goals.
• Wants feedback and learns from feedback
A presentation by J.M.Pant
Power Motivation
Enjoys being in charge
Strives to have influence over others
Prefers to be placed in competitive and control oriented situations
Tends to be more concerned with prestige and gaining influence over others than with effective performance
Brief Overview of Motivation
A presentation by J.M.Pant
Affiliation Motivation
Strives for friendship
Prefers cooperative
situations rather than
competitive ones
Desires relationships
with a high degree of
mutual understanding
Brief Overview of Motivation
Kumbh mela
Kanwarias
journey
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Goals
Goals motivate people to
achieve them.
A certain amount of stretch
and stress is motivating
Absence of work, confused
goals and ‘no targets to
achieve’ is demotivating to
most people.
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Autonomy
Making Money, Financial Independence
Opportunity to think innovatively, desire to create something new, most times from scratch
Achievement, including achievement of personal objectives
Action, Doing something
Not wanting to work for anyone else
Desire to be one’s own boss
Job satisfaction
More opportunities
Flexibility in work timings, choice of work
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Thrill – excitement of entrepreneurship
Intellectual and physical challenge
Contribution to society, nation, world
Outcome is not known and that adds to excitement
Entrepreneurship motivates just like a person is motivated to play sports or a game:
Physical activity
Creativity
Social grouping
Tension, unexpected results
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Locus of control
An attribute indicating the sense of control a person has over life
Concern of entrepreneur
Whether he or she will have the drive and energy to overcome inertia in forming something new
Energy to mange the new enterprise
Are you internally or externally driven?
Most successful entrepreneurs are internally driven
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Childhood family environment First born child receives special attention and develops more self
confidence
Entrepreneurs tend to have self employed or entrepreneurial parents
Entrepreneurs Family environment- supportive and encouraging independence, achievement and responsibility
Education Education is critical but not a formal, ‘degree’ focused education
Entrepreneurs like to learn, explore, research, study what is interests them and is useful for their enterprise.
Personal Values Superior product quality
Quality service to customers
Flexibility
Adapt to change
High caliber leadership
Ethics
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Age Age is not a factor for starting entrepreneurship
What is important is energy, passion and drive
Most entrepreneurs initiate entrepreneurial careers between 22 to 45.
Every five years or so, many people get an urge to become an entrepreneur
Experience Experience in similar area and relevant to business like
sales, finance, technology is beneficial
Years not important, Quality of experience is
Entrepreneurial experience- the best venture is generally not the first one
A presentation by J.M.Pant
What Motivates An Entrepreneur?
Role Models
Individuals influencing entrepreneur’s career choice and style
Role models could be
Successful entrepreneurs in India and globally
Successful entrepreneurs from one’s community, region, school, college/university
Parents, in-laws
Brothers or sisters
Other relatives
A presentation by J.M.Pant
What Motivates An Entrepreneur?
In your own business, you are all alone. It is lonely at the top.
Need to establish support groups to keep the entrepreneur going Professional support network
Individuals who help the entrepreneurs in business activities
Mentors- coach, sounding board-for sharing problems and successes,
Business associates- suppliers, consultants, professionals, customers, self employed individuals
Trade associations
Personal affiliations-clubs, alumni, sporting events, shared hobbies, social networking sites
Moral support network
Having an understanding cheering crowd gives encouragement to entrepreneur to persist through difficulties and problems
Individuals who give psychological support to entrepreneurs
Family and friends-a cheering crowd
Spouse, friends, children, parents, uncles
A presentation by J.M.Pant
Negative Motivators
Positive and Negative Motivators
Positive
E
x
t
r
i
n
s
i
c
Finish your
homework and Ma
will give you an
Icecream
I enjoy learning this subject.
The homework given by
class teacher is interesting.
It challenges me. I want to
do and will do.
I
n
t
r
i
n
s
i
c
Finish your
homework or teacher
will punish you
I don’t want to do this boring
homework. It will not help in
my learning process. I find
no reason to do it.
Negative
A presentation by J.M.Pant
Negative Motivators
Bad experiences Dissatisfaction with job, boredom and frustration, no
growth/promotion
Loss of job
Unable to get a job
Conflict of ethics and values
Lack of education Not having certified ‘degree’ education
Circumstances forced one to give up on education
Provocations Humiliation by friends, relatives, spouse/girl friend
Being told you are not fit to do anything
A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
1. Identity Search
Identity crisis
Experiences dissatisfaction with present identity
Discomfort in existing situation
Could be lack of challenge, frustration and boredom,
less money, fight with boss, loss of job, VRS and so
forth
Exploration-look for ways of reducing the dissatisfaction
Transitional stress-experiences conflicts and
apprehensions about the new identity
A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
1. Identity Search
Search alternatives
Searches entrepreneurial alternatives
Uses professional and moral support network
Deliberation- weighs pros and cons of each
alternative
Choice- makes a tentative choice from amongst
the alternatives
A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
2. Identity Formation
Pre-enterprise preparation- makes preparation: Acquiring relevant knowledge, skills etc
Gains relevant experience
Meets experts
Enterprise building-takes steps towards establishment of an enterprise
New Identity- acquires new identity of an entrepreneur
A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
3. Identity Establishment
Enterprise management- begin to manage the
enterprise
Role stress- experiences entrepreneur conflict and
stress
Identity integration- identifies with other entrepreneurs
Linkage building- establishes linkages with other
entrepreneurs and support systems for effective
functioning.
A presentation by J.M.Pant
Paradigm Busters
Michael Dell, Dell Inc.
Changed the rules of the PC business by
eliminating intermediaries and pioneering a
low inventory made-to-order model.
Herb Kelleher, South West Airlines
Introduced the concept of low cost flying and
served it up with a dash of fun, and warm on-
board service
A presentation by J.M.Pant
Paradigm Busters
Howard Schultz, Starbucks
Through a combination of clever marketing
and vision, turned the coffee bar into an
upscale must-have experience
Jeff Bezos, Amazon.com
Most successful online retailers in the face of
skepticism about selling on the internet.
A presentation by J.M.Pant
Paradigm Busters
Sam Walton, Wal Mart
His relentless focus on low cost leading to ‘every day low prices’ strategy that’s retailing benchmark today.
Ajay Bijli, PVR Mutiplex
Introduced multiplexes when single screen cinema halls were the convention.
Better ambience, advanced sound system, latest English and Hindi movies, on-line ticketing, comfortable viewing.
Even with twice the existing price.
A presentation by J.M.Pant
Paradigm Busters
C.K.Ranganathan, CavinKare
Stormed the FMCG sector by constant innovation in packaging, distribution and pricing.
Launch of Spinz talc in 20g, 50, 100g, 400g in 1997 just after 1996 world cup (spinz from ‘spin’), Spinz deodarants, Nyle creams, Natural Fairever, Meera herbal shampoo in 8ml, 25 ml and 100 ml, and so forth.
Satchets and small packings made it convenient for frequent travellers.
A presentation by J.M.Pant
Paradigm Busters
Kishore Biyani, Future group -
Pantaloon and Big Bazar Started as a trouser manufacturing unit, Pantaloon has
become a big retail company.
Changed the face of retail business in India.From
fashion to food to furniture to real estate to stationery to
finance – everything under one umbrella.
K V Kamath, CEO ICICI Change the rules of banking making it like FMCG: ATMs,
personal, consumer and auto loans for mass.
Expanding the model to rural areas.
A presentation by J.M.Pant
Paradigm Busters
Over time we take paradigm shift for granted.
We forget how business was done before.
A good start is never enough- innovation has
to be continuous.
For reigning incumbents will hit back plus
there are copycats.
A presentation by J.M.Pant
Paradigm Busters
Robert Frost ‘ I took the road less travelled by, and that has made all the difference’.
Paradigm shifters are more risk friendly.
They have a big dream.
Failures don’t deter them- it makes them hungrier. For example, Biyani’s initial set of failures (flopped films, managing Hanse Cronje, initial failures in Pantaloon and Big Bazar)
Air Deccan’s inaugural flight-one engine caught fire
No journey is complete without pitfalls.
A presentation by J.M.Pant
Paradigm Busters
<Examples>
Reliance Industries – started in 1966 as a small textile manufacturer. Now it ranks among one of the world’s largest oil and gas companies.
Suzlon energy- Tulsi Tanti started a textile mill in Gujarat……ran into problems because of erratic power supplies and rising energy costs.
Set up two windmills in 1990 with turbines imported from a German company. Suzlon is now one of the world’s fastest growing wind energy equipment makers.
What would have happened if both had continued with textiles is anyone’s guess.
A presentation by J.M.Pant
Paradigm Busters
<Examples>
Business stuck in sunset industries must radically overhaul their business.
Wipro- Azim Premji’s initiative transformed a family run vegetable oil firm into a major IT services and products supplier.
Max India- stared as pharma company, acquired telecom licence, sold telecom business, entered into insurance and healthcare segment.
A presentation by J.M.Pant
Making the shift
Paradigm shift
Company Original Business Current Business
Reliance Textiles Oil, petrochemicals, real
estate, infrastructure-
power, communication
Suzlon Energy Textiles Wind energy generation
Wipro Vegetable Oil IT
Max India Drug manufacturer Insurance and health care
Unitech Construction Real Estate development
GMR Infrastructure Textiles Infrastructure
ICICI Development
financing
Banking, insurance, stock
trading, financial services
A presentation by J.M.Pant