Orientation to Entrepreneurship

8/13/2019 Orientation to Entrepreneurship

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Orientation

To

ENTREPRENEURSHIP

Yogesh Misra, Faculty of Engineering & Technology

Mody Institute of Technology & Science (Deemed University)Laxmangarh [Raj.]

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Contents

(1) Occupation

(2) Businessman / Business vs Entrepreneur / Entrepreneurship

(3) Characteristics of entrepreneur

(4) How to start a business?

(5) Steps in writing a business plan(6) Do,s and Dont dos

(7) Facts based on A Study by National Knowledge Commission

(8) Some success stories

(9) Some exiting careers(10) Role of government

(11) Role of academic institutions

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Occupation(An activity through

which we get income to

run our family)

Entrepreneur

A professional is person who is paid to

undertake a highly skilled task.

Examples : medicine, nursing, law and

engineering

Professional

EmployeeA person in the service of another under

any contract

BusinessA businessperson is someone

involved in a activity for the

purpose of generating revenue

An entrepreneur is an owner

manager of a business enterprise

who makes money through

innovation

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ENTREPRENEURSHIP4

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Characteristics of entrepreneur

Information seeking

Learning nature

Goal setting

Commitment to work Systematic planning and monitoring

Moderate risk takers

Most important : INNOVATIVE IN NATURE

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Some advantages Somedisadvantages

You are your own boss.

Enjoy the profits from yourefforts

Sense of pride in your business.

Flexibility in your workschedule.

Will need to put in long hours.

Need money to start.

Have to keep up with

government rules andregulations.

May lose money.

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Businessman / Business Entrepreneur /

Entrepreneurship

1 Own an enterprise or venture Own an enterprise or venture

2 Usually a profit oriented Usually a customer oriented

3 Usually plays safe Bold and ambitious

4 May be purchased, donated or inherited Creates his own idea and realize it as abusiness

5 Generally traditional Generally innovator

6 Usually dont have time for their

families and love ones

Shares enough time with their families and

love ones

7 Usually distressed and experiences

sleepless nights

Always a happy and enthusiastic

businessman

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ENTREPRENEURSHIP IN INDIA

Rapid growth in past 20 years

Entrepreneurship Environment - Economic libralization, end of licenseraj and easily accessible of finance.

Survey by the Deloitte group - India ranks 2ndglobally

India - Leading economies by 2050.

A democratic open society, a strong technology base, an increasinglyyouthful population (50% of India is 25 years and younger), a sizeablemarket of a large number of customers.

In this situation, India enjoys enormous potential for the creation of

wealth through knowledge.

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Building a successful venture

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How to Start aBusiness

Step 1: Get Inspired

Step 2: Do Your ResearchAnswer these questions in your market research :

1.Is there a need for your products/services?

2.Who needs it?

3.Are there other companies offering similar products/services now?

4.What is the competition like?

5.How will your business fit into the market?

Step 3: Make a Plan

whofails to plan, plans to failIt gives clarity about what we want to achieve and how.

It helps in seeking financial support from an investor or financial institution

Step 4: Plan Your Finances

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(1) EXECUTIVE SUMMARY

(2) COMPANY DESCRIPTION

(3) PRODUCTS / SERVICES

(4) MARKET ANALYSIS

(5) MARKET STRATEGY

(6) MANAGEMENT SUMMARY

(7) FINANCIAL ANALYSIS

STEPS IN WRITING A BUSINESS PLAN

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(2) COMPANY DESCRIPTION

(The company description outlines vital details about your company, such as where you

are located, how large the company is, what you do and what you hope to accomplish)

Company name(use Ministry of Corporate Affairs www.mca.gov.in)

Ownership/management team

Location

Company history

Mission statement

Products/services and target market

Objectives

Vision statement

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MISSIONA clear statement that represents the purpose of your company.

Why are you starting this business?

VISIONWhat are you creating?

What will your business look like in one year, three years, and five years?

OBJECTIVES (Set goals for the business)Goal should be:

Specific & Measurable

With in reach

Time-based

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(3) PRODUCTS / SERVICES

(The products or services section of your business plan should clearly describe what

products and/or services you're selling with emphasis on the value you're providing

to your customers or clients)

This section can be broken down into following parts:

i. Brief comparison to similar products or services in the market

ii. List of your price points

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(4) MARKET ANALYSIS

This section should include following parts:

Industry Description :

Detailed statistics that define the industry size, growth rate and trends.

Target Market:Who is your ideal customer? Age, gender, income level and lifestyle of target

customers.

How you intend to reach the market.

Competitive Analysis:

Who is in your competition?

What are the strengths and weaknesses of the competition?

What are the potential roadblocks preventing you from entering the market?

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(5) MARKET STRATEGY :

(This section can be used as a blueprint for all of your marketing activities)

(I) Product:(i) Brand name

(ii) Packaging

(iii) Quality and Warranty

(II) Promotion:

(i) Advertising and Marketing budget

(ii) Promotional strategy, Publicity and public relations

(iii) Sales force and Sales promotion

(III) Price:

(i) Pricing flexibility Pricing strategy

(ii) Retail price, Seasonal Price and Wholesale (volume) price

(IV) Place:

(i) Distribution centers and Distribution channels

(ii) Order processing and Transportation

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(6) MANAGEMENT SUMMARY

(This section demonstrates expertise of the team and resources behind your company)


(I) Business Structure

(II) Management Team

(III) Other Personnel

(IV) Personnel Growth Plan : What are the salaries of each person to be involved with

the company for the next three years?

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(7) FINANCIAL ANALYSIS

(This section should contain the data for financing your business now, what will be

needed for future growth, and an estimation of your operating expenses)


(I)Balance Sheet:

(II) Profit and Loss Analysis

(III) Personnel Expense Forecast

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(1) EXECUTIVE SUMMARY

(The executive summary is the first section of your small business plan that is typically

written last. It provides an overview of all of the other sections in the business plan)

I. Executive summary should highlight at least one important statement from each of the

other sections in your business plan.

II. If the reader only reads the executive summary, he or she should have a very clear

idea about your business, your goals and your strategic plan for accomplishing your

goals.

III. The executive summary should also include basic information about your business

such as your business name and location, description of your business and its

products and/or services, your management team and mission statement.

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Enthus iasm wi thout knowledge is not good; a person who moves

too qu ick ly may go the wrong way.

Dos DON'TS

Start saving money for operating

your business.

Learn your business by working for

someone else in the same business

first.

Consider the advantages of

operating a family business.

measure your skills and training

against potential competition.

Test market your product or service

before starting or expanding.

Make "for" and "against" list

describing the business you are in or

considering.

Talk to lots of people for advice.

Make a comparative analysis of all

opportunities you are considering.

Quit your job before you have

completed start-up plans.

Consider operating a business in a

field you do not enjoy.

Risk all the family assets. Limit your

liabilities to a predetermined amount.

Be in a hurry to select a business.

Select a business that is too high a

risk

Neglect to learn the negative aspects

of an intended business.

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QUESTIONS

(Q) What motivates a person to become an entreprenuer?

(Q) Does motivation to become an entreprenuer is different in male and female?

(Q) Does motivation to become an entreprenuer vary with the age?

(Q) Does motivation to become an entreprenuer vary with the experience?

(Q) Which one is most suited finance option for entreprenuers?

(Q) What is the importance of education for an an entreprenuer?

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Some Facts Based on a Study

by

National Knowledge Commission

(2008)

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Level 1:Agriculture and other activities: Crop production, Plantation, Forestry, Fishing,Mining, etc.

Level 2:Trading services: Wholesale and retail trade.Level 3:Old economy or traditional sectors: Manufacturing.Level 4:Emerging sectors :IT, Finance, Insurance and Business services, Construction,Transport-Storage-Communications etc.

Entrepreneurship Pyramid in India

(in terms of sectors and numbers of people engaged)

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Registration of new companies according to nature of economic activity

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Motivation to become an entrepreneur

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Motivation Variations according to gender


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Motivation Variations according to gender

For female entrepreneurs the most important motivating triggers are:

Independence = 25% & Identification of a marketable idea = 25%

For male entrepreneurs the most important motivating triggers are:

family background = 24% & Independence = 21%

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Motivation Variations according to age

For entrepreneurs less than 35 years age the most important motivating triggers are:

Market opportunity = 27% & Independence & Family background = 22%

For entrepreneurs greater than 35 years age the most important motivating triggers are:

Independence & Family background = 23% & Idea driven = 22%

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Start-Up Phase Finance

Sources of self-finance

An angel investor is an rich individual who provides capital for a business start-up, usually in exchange of ownership equity.

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Bank Finance at different stages of business

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Importance of Education for Entrepreneurship

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Some

Innovations35WWW.PPTMART.COM


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Bhagwan Singh Dangi (Reaper windrower machine) Madhya Pradesh

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N Sakthimainthan (Hand operated water lifting pump) Tamil Nadu

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Radhey Shyam Sharma (Bullock operated sprayer) Madhya Pradesh

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M. Nagarajan (Lemon cutter) Tamil Nadu

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Swayambhoo Sharma, Madanlal Kumawat, Chandan Agarwal

(Modified hand pump with tap and attachment for filling animal trough) Rajasthan/Delhi

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CA Vincent (Floating soap) Kerala

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Brahmam, Ajmeri(gas-operated iron)

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Remya Jose(Washing-cum-exercise machine) Kerala

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Some

Success

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Infosys

(1) Started in 1981 by seven people

(2) Start-up investment US$ 250

(3) 65 offices and 59 development centers in India, China, Australia, , Poland,

UK, Canada and Japan

(5) Total employees 127,779 employees as on December 31, 2010.

Mr. Narayan Murthy

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Lizat Papad

(1) The organisation started of with a sum of Rs.80.

(2) Founded by 7 sisters in Mumbai.

(3) Now 73 Branches and 27 Divisionsin different states all

over India.

(4) Sales of over Rs.650 croreswith exports itself exceeding

Rs. 29 crores.

(5) Over 42,000sisters working in organisation .47WWW.PPTMART.COM


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DabbabalaOriginated by Mr. Mahadeo Havaji Bachche with about 100 men.

Started in 1890

Total area coverage: 60 Kms to 70 Kms

Employee Strength: 5000

Number of Tiffin's: 2,00,000 Tiffin Boxes i.e 4,00,000 transactions every day.

Time taken: 3 hrs 48WWW.PPTMART.COM


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Bansal Classes Pvt. Ltd.

1. Started by Mr. V K Bansal in 1981 with one enrolled student

2. Bansal Classes has produced more than 12000 IITians

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(1) Finished his B.Sc. in Chemistry at age 21 and worked

as a lab technician.

(2) In 1969 set up Nirma .

(3) Total employee 14,000 (in 2004).

(4) Turn-over Rs. 2500 crore.

Founded By: Mr.Karsanbhai Patel

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Started on 18 August, 1973

Mansukhbhai conceived an idea of presenting a substitute of Pan

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Shahnaz Husain

(1) Started in1977 from her house.

(2) Start-up investment of Rs

35000.

(3) Presence in over 100 countries

650 salons around the world

(in 2002).

(4) Employing about 4200 people.

(5) The net worth of the Group

was $100 million.

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Kiran Mazumdar-Shaw

(1) Started M/s Biocon Ltd. in1978 from

her garage.

(2) Start-up investment of Rs 10,000.

(3) 7th largest biotech employer in the

world

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Subroto Roy

(1) Founded SAHARA group 1978

started with three workers

(2) Small deposit para-banking business.

(3) Today having presence in housing,

entertainment, media and aviation.

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Sunil Mittal

(1) In 1970s, he set up a small bicycle

business in Ludhiana.

(2) In 1986, incorporated Bharti

Telecom Limited (AirTEl)

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Sabeer Bhatia(1) July 4, 1996, first email service by HOTMAIL.

(2) In 1997 Microsoft purchased HOTMAIL in

$400million.

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Some

Exiting

Opportunities59WWW.PPTMART.COM


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Copywriters

(1) Prepare text for advertisements, marketing brochures, press

releases, TV and radio commercials, catalogs and packaging labels,etc.

(2) Writing talent.

(3) High demand, as most business owners do not possess the skills

and time to prepare highly effective copy.

(4) Alliances with advertising agencies, graphic artists and public

relations firms.

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Alcohol Free Club

The benefits include:

Less investment capital required to start and operate the business.

Fewer government regulations, and substantially lower liabilityinsurance premiums.

Less competition within the industry, and a clear definition of the

target market.

Increased choices in terms of operating location.

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Health Taxi

(1) Purchase, lease or rent a suitable mode of transportation.

(2) Contact local doctors.

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Self Defence

(1) Potential customers: Kids, students, single mothers, housewives,

executives traveling overseas, government employees,celebrities, sports figures, politicians, school teachers , security

guards, etc.

(2) Training can be conducted in a group format or on a one-on-onebasis at your school location or the clients locations, including

their homes, businesses, or offices.

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Stress Management

(1) Target customers are individuals seeking to reduce or eliminate

stress from their daily lives.

(2) Corporate clients.

(3) Business placeHome, rental office or client's business or

home location.

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Role of Government

(1) Information source for start-up entrepreneurs.

(2) World-class infrastructure.

(3) Public Fund for new entrepreneurs.

(4) Polices to encourage innovation among smaller

institutions and companies.

(5) Recognition and reward for Entrepreneurship.

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Role of Educational Institutions


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Role of Educational Institutions

(Entrepreneurship is treated as an extra-curricular activity, resulting in a

narrow impact on limited numbers of students)

(1) Integration of subjects on entrepreneurship in the formal education systems

(2) Case studies of real life situations in the curriculum.

(3) Linking vocational education with mainstream education.

(4) Student-led activities related to entrepreneurship in campus.

(5) Business plan contests.

(6) Industry-Institute interaction.

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Name of Institute Place Activities


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National Institute of Small Industry Extension and Training (NISIET) Hyderabad Training, research and consultancy servicesIndian Institute of Entrepreneurship Guwahati Training, research and consultancy services

National Institute of Entrepreneurship and Small Business

Development (NIESBUD) New Delhi Coordinating and overseeing activities of various institutes /agenciesengaged in entrepreneurship developmentIntegrated Training Centre (Industries) Nilokheri Conducts EDP courseInstitute for Design of Electrical Measuring Instruments (IDEMI) Mumbai Render services to the instrumentation industryCentral Institute of Hand Tools Jalandhar Aims at rapid growth of the hand tool sectorHand Tool Design Development and Training Centre Nagaur Assistance for improvement in productivity, betterment in quality,

high value additionCentral Tool Room Ludhiana Provides services in the area of consultancy, tool design and

manufacture and technical trainingCentral Tool Room and Training Centre Kolkata Training, design and manufacture of complicated precision tools for

the telecom industry and other common facility servicesCentral Institute of Tool Design (CITD) Hyderabad Training, CAD/CAM centre to train post-graduate trainees, automatic

process control unit, and so onProduct-cum-Process Development Centre for Sports Goods Meerut Training, process and product development of sports goods, R & D Product-cum-Process Development Centre for Essential Oils Kannauj Modernise and upgrade technology status for the essential oils and

perfumery industryProduct-cum-Process Development Centre Agra Provide better technology to small-scale foundry and forging units,

process and product development, and provision of design for melting

equipment, testing facilitiesElectronic Service and Training Centre Ramnagar Training, technical and consultancy servicesCentre for the improvement of Glass industry Firozabad Development and adoption of new technologies and products

National Small Industries Corporation New Delhi Supply of machinery, marketing assistance, training

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Thanks

Documents

Orientation to Entrepreneurship