1st Chapter Entrepreneurship Development

By Venkatesh.N Koshys Institute of Management Studies

What is an Entrepreneur?

An Entrepreneur…

… takes on the risk of starting their own enterprise or investing in other start-ups.

Successful entrepreneurs are known for…

… Finding innovation and market gaps for new products and services.

What is an Entrepreneur?

The World of the Entrepreneur

• A study by the Global Entrepreneurship Monitor (GEM) found 11.3 percent of the adult population in the United States is working to start a business. North America, South America and Latin America lead the world in entrepreneurial activity.

What is an Entrepreneur

 An entrepreneur is one who creates a new business in the face of risk and uncertainty for achieving profit and growth opportunities and assembles the necessary resources to capitalize on those opportunities

Entrepreneurial Profile

• High level of energy• Flexibility• Desire for responsibility• Future orientation• Tolerance for uncertainty • Preference for moderate risk• Skill at organizing• Confidence in their ability to succeed• Value of achievement over money• Desire for immediate feedback• High degree of commitment

Women Entrepreneur

Women Entrepreneur

Introduction

The educated women do not want to limit their lives in the four walls of the house. They demand equal respect from their partners. However, Indian women have to go a long way to achieve equal rights and position because traditions are deep rooted in Indian society where the sociological set up has been a male dominated one.

• Women are considered as weaker sex and always made to depend on men folk in their family and outside, throughout their life. The Indian culture made them only subordinates and executors of the decisions made by other male members, in the basic family structure.

Concept of women entrepreneurWhile at least half the brainpower on earth belongs to women,

women remain perhaps the world‘s most underutilized resource. Despite all the social hurdles, India is brimming with the success stories of women.

• Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise.

• Women entrepreneurs engaged in business due to push and pull factors which encourage women to have an independent occupation and stands on their on legs.

• The Government of India has defined women entrepreneurs as ―an enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women‖.

Intrapreneurship• Intrapreneurship is the act of behaving like an entrepreneur

 while working within a large organization.

• An inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities.

• Intrapreneurs are usually employees within a company who are assigned a special idea or project, and are instructed to develop the project like an entrepreneur would.

• Being your Own Boss– Self-management is the motivation that drives many

entrepreneurs.• Financial Success

– Entrepreneurs are wealth (capital) creators. • Job Security

– Over the past ten years, large companies have eliminated more jobs than they have created.

• Quality of Life– Starting a business gives the founder some choice over

when, where, and how to work.

Why Entrepreneurship?

Entrepreneurs as possessing these (characters)

• Desire for responsibility• Preference for moderate risk (risk eliminators)• Confidence in their ability to succeed• Desire for immediate feedback• High level of energy• Future orientation (serial entrepreneurs)•  Skill in organization•  Value of achievement over money•  Other characteristics of entrepreneurs include:

 High degree of commitment

Willingness to accept risk, work hard and take action

Flexibility

Characteristics of Entrepreneurs

Entrepreneurial Characteristics

• Vision - entrepreneurs begin with an overall idea for how to make their business idea a success

• High Energy Level - a willingness to work hard

• Need to Achieve - entrepreneurs work hard because they want to shine

• Self-Confidence - fearlessness in the face of difficult chances

• Tolerance for Failure - entrepreneurs are not easily discouraged

• Creativity - entrepreneurs devise innovative ways to overcome difficult problems and situations

• Internal Locus of Control - entrepreneurs believe they can control their own luck

The Benefits of Entrepreneurship 

The primary benefits entrepreneurs enjoy include the opportunity to:

• Create their own destiny• Make a difference• Reach their full potential• Generate impressive profits• Contribute to society and be recognized for their efforts•  Do what they enjoy and have fun at it!

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Behind the Boom: What’s Feeding the Entrepreneurial Fire? 

• The rapid increase in entrepreneurs has been a result of:-• Considering entrepreneurs as heroes•  Entrepreneurial education•  Demographic and economic factors•  move to a service economy•  Technological advancements•  Independent lifestyles•  business and the Internet•  Additional international opportunities

The Ten Deadly Mistakes of Entrepreneurship

• Studies have indicated that there are common reasons for new business ventures to fail. These causes of small business failure may include.

• Management mistakes•   Lack of experience•   Poor financial control•   Weak marketing efforts•  Failure to develop a strategic plan• Uncontrolled growth•  Poor location•  Improper supply control• Incorrect pricing• Inability to make the “entrepreneurial transition”

Putting Failure into Perspective

• Entrepreneurs don’t fail—the venture fails.•  There are no such things as failures, only results.•  Always look to turn a negative situation into a positive

opportunity.•  Have no fear of failure and be sure to have a emergency plan.•  The only people who never fail are those who never do

anything or never attempt anything new.• The successful entrepreneur understands the meaning of these

problems and knows how to deal with danger in a proactive and positive

How to Avoid the Pitfalls

These same studies have indicated that entrepreneurs can increase their changes for success if they.

1. Know their business in depth.

2. Develop a solid business plan in writing.

3. Manage financial resources.

4. Understand financial statements.

5. Learn to manage people effectively.

6. Keep in tune with who they are.

. What are the major benefits of business ownership

Major benefits of business ownership include the:•  Opportunity to gain control over your own destiny•  Opportunity to make a difference•  Opportunity to reach your full potential•  Opportunity to pick unlimited profits•  Opportunity to contribute to society and be recognized for

your efforts•  Opportunity to do what you enjoy

What is a small business? What contributions do they make to our economy? 

A small business is “One which is independently owned and operated and not dominant in its field of operation.”

Small business economic contributions include:

• Employing of more than 50% of the nation’s private sector workforce —

• almost 90% of all businesses employ less than 20 workers.• Creating 66% of all new jobs since the early 1970s.• Producing 48% of the nation’s GDP and account for 53% of

all sales.• Growing by 800,000 to 900,000 new ventures each year.

Entrepreneurial Characteristics

The following are typical character and behavior entrepreneurs need to run and operate a successful business:

• constant• Creative• Responsible• questioning• Goal-Oriented• Independent• Self-Demanding

• Self-Confident

• Risk-Taking

• Restless

• Action-Oriented

• Enthusiastic

Entrepreneurial Skills

The following are foundational skills entrepreneurs need to run and operate a successful business:

• Communication Skills– Writing, Speaking & Listening

• Human Relations Skills• Managing skills • Problem Solving & Decision Making Skills• Technical Skills• Basic Business Skills

Personal Goals and Capabilities

In order to be a successful entrepreneur you must have an interest in being an entrepreneur and have a strong commitment to a business and a lot of energy.

Make your goals practical and easily achievable.

Financial goals should specify how much money you will earn and how quickly you will pay off debts.

Non-financial goals could be to own your own business or personal satisfaction.

Do You Have the Potential to be a Successful Entrepreneur?

Everyone has the potential to become an entrepreneur. But, if you do not feel you have the potential, and you have the desire, you can strengthen your characteristics and skills if you:

• Read articles and books about entrepreneurs• Write about individuals who overcame obstacles to achieve

success• Watch films about business people, athletes, or others who are

achievement-oriented• Practice case studies that involve goal-oriented behavior,

creativity, and moderate risk-taking

Assess ROI objectives

Return on Investment (ROI)

Investment: What it costs to make and market a product

Identify the percentage return you want from the investment

The profitable objective involves pricing products to obtain a certain % return on investment

Your goal might be 20% ROI

Capital

Capital:

The buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items.

Businesses can have cash flow problems if they start off with too little capital

If your cash flow is insufficient, you may want to obtain more capital for your business

Thank you All