1. Introduction to Entrepreneurshipand Business OpportunitiesContributed by:Dr Gayatri Saberwal, Faculty Scientist,Institute of Bioinformatics and AppliedBio Technology (IBAB),Bangalore, India

2. An introduction to entrepreneurship(a) Business opportunities(b) xxxxxxxxxxxxxxxxxx(c) xxxxxxxxxxxxxxxxxx 3. What is entrepreneurship ? 4. What does entrepreneurship involve? Wealth Creation New Venture Management Innovation Creativity Risk Taking 5. What is entrepreneurship ?It is the process ofcreating something newby devoting...by assuming certain ... risksand receiving some ... rewards 6. What is entrepreneurship ?It is the process of creating something new, with value, by devoting thenecessary time and effortassuming the accompanying financial, psychic, and social risks,and receiving rewards of monetary and personal satisfaction andindependenceHisrich and Peters, Entrepreneurship, pg 10 7. What is entrepreneurship ?It is the process of creating something new, with value, by devoting thenecessary time and effortassuming the accompanying financial, psychic, and social risks,and receiving rewards of monetary and personal satisfaction andindependenceHisrich and Peters, Entrepreneurship, pg 10 CREATING VALUE 8. What is value ?Lets list the value that has been created by IBAB to-date. 9. What is entrepreneurship ?Delivering Value to Customers who arewilling to Pay an amount which covers your Costs 10. When does a person become an entrepreneur?Lets list some of these conditions or events. 11. What is Entrepreneurship ?A pursuit of the opportunities regardless of the resources.Harvard Business School 12. What is Entrepreneurship ?A pursuit of the opportunities regardless of the resources.Harvard Business School THE OPPORTUNITY 13. What is Entrepreneurship ?A pursuit of the opportunities regardless of the resources.Harvard Business School LEVERAGING RESOURCES 14. What is Entrepreneurship ?A pursuit of the opportunities regardless of the resourcesHarvard Business SchoolAn entrepreneur is opportunity-obsessedwith the goal of creating value without regard to resources currently controlled.Stanford University 15. What is Entrepreneurship ?Opportunity identificationLeveraging resources Value creation 16. What is Entrepreneurship ? Opportunity identification Leveraging resourcesValue creation 17. How to spot an opportunity ?Solving a problemmany entrepreneurs 18. How to spot an opportunity ? Solving a problem many entrepreneurs Vinod Khoslas clip (30 sec.)http://edcorner.stanford.edu/authorMaterialInfo.html?mid=26 19. A different kind of entrepreneurshipSatyajit Sadanand and football in Baroda 20. Sources of Business Opportunities 21. Sources of Business Opportunities Change as a source of business opportunities 22. The big companyversusThe start-up22 23. The big company vs. the start-upEstablished companies (incumbent players) have products or services smooth operations established business models loyal set of customers functional teams 23 24. The big company vs. the start-upStart-ups have passion hunger to grow lower costs lack of hierarchy flexibility eligibility for certain funding schemes...24 25. The big company vs. the start-upEstablished companies (incumbent players) they have products or services, smooth operations, established business models, loyal set of customers, functional teams Start-ups have passion, hunger to grow, lower costs, lack of hierarchy and flexibility, eligibility for certain funding schemes...25 26. Change as a Source of OpportunityStatus-quo is good for incumbent playersChange brings in disruption that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance 26 27. Change as a Source of OpportunityStatus-quo is good for incumbent playersChange brings in disruption that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of financeChange produces a level-playing field which is actually loaded in favour of a new player because of its flexibility, adaptiveness 27 28. Examples of Entrepreneurs Exploiting ChangeChaudhry Raghavendra Singh21 colonies includingGreater Kailash, South Extension and Hauz Khas28 http://in.rediff.com/money/2006/apr/08forbes.htm 29. Broad Categories of ChangeDemographicEconomic 29 30. Broad Categories of ChangeDemographicEconomicSocio-culturalTechnologicalPoliticalLegal and Regulatory30 31. Demographic Changes Medianage Workingpopulationas31th 32. Economic ChangesGross Domestic Product and Per Capita IncomeAvailability of credit at all levelsSize of the middle classLevel of exports and importsInflation and interest ratesVarious growth rates industrial growth, productivity growth, exports growthLevel of unemployment32 33. Socio-Cultural ChangesValue systems globalization and local assertionsAccepted norms of behaviourRole of religion and spiritualityPursuit of expertise, knowledge, wealth, possessionsMeasure of time attention span, priorities, conveniences33 34. Technological ChangesAvailability and wide-spread assimilation of technologyInformation Technology and it pervasivenessCosts and disposable incomesPerformance, variety, ease of acquisitionCross applications interdisciplinary developmentsComfort level of technology usageExamples: CD ROM drives and mobile phones 34 35. Political and Regulatory Changes Transition from centrally planned to market economy (India, 1991) Transition from communism to market socialism (China, 1978-80) IPR laws Labour reforms35 36. Entrepreneur as a Visionary must Anticipate Analyze all the changes that are happening in the target market Estimate the time constants of change fast or slow Worry about the fickleness of customer tastes (esp. fashions, movies) Make reasonable guesses Validate your hypotheses at each stage as new field data arises Study human psychology or consumer behaviourAB36 37. Entrepreneur as a Visionary must Anticipate Analyze all the changes that are happening in the target market Estimate the time constants of change fast or slow Worry about the fickleness of customer tastes (esp. fashions, movies) Make reasonable guesses Validate your hypotheses at each stage as new field data arises Study human psychology or consumer behaviourAJeff Hawkins clip 3.50 min http://edcorner.stanford.edu/authorMaterialInfo.hB37 38. Examples of Entrepreneurs Exploiting Change Teds mind is always 5 to 10 years down the road. Right now hesprobably living in 1995 Ted Turner, founder of CNN, about whom this was said in 1985. 38 39. Entrepreneurship in IndiaDr. Jagannath Raju, CEOSystemantics, BangaloreTalk in 2004 40. Entrepreneurship in IndiaDiscovery (1994 96)No support system for development phase Access to off-the-shelf components(no change) Access to integrated circuits (much better now) Access to tools and workshops for prototyping(no change) 41. Entrepreneurship in IndiaDiscovery (1994 96)No support system for development phase Access to off-the-shelf components (no change) Access to integrated circuits(much better now) Access to tools and workshops for prototyping (no change)Incomprehensible paperwork Excise, customs, sales tax, income tax(very significantimprovement) 42. Entrepreneurship in IndiaDiscovery (1994 96)No support system for development phase Access to off-the-shelf components (no change) Access to integrated circuits(much better now) Access to tools and workshops for prototyping (no change)Incomprehensible paperwork Excise, customs, sales tax, income tax(very significantimprovement)Immature financial system R&D funding (minor change) Foreign exchange(no longer a problem)Government is the primary customer for high-end technical work (no change) 43. What is entrepreneurship ?What are the stages from an idea onwards? 44. An introduction to entrepreneurshipIdea > Prototype > Development > Scale-up 45. An introduction to entrepreneurshipFunctional areas: ???? 46. An introduction to entrepreneurship Functional areasService/technology developmentHRFinanceStrategyMarketing 47. Function-timeframe matrix Service/TechnologyHR MktgStrategyFinance Idea Prototype Development Scale-up Liquidity 48. What is entrepreneurship?The entrepreneurial process will create a better world.Its not just about new companies, capital and job formation, norinnovation, nor creativity, nor breakthroughs.It is also about fostering an ingenious human spirit and improvinghumankind.Jeffry A Timmons, Franklin W. Olin Distinguished Professor ofEntrepreneurship, Babson College 49. Assignment:Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of todays class planning what you are going to do withthis money. 49 50. Assignment:Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of todays class planning what you are going to do withthis money.Friday afternoon is allocated for you to make your sales. IBAB commitsto issuing receipts in case that is required for your customers. 50 51. Assignment:Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of todays class planning what you are going to do withthis money.Friday afternoon is allocated for you to make your sales. IBAB commitsto issuing receipts in case that is required for your customers.Saturday morning: come and tell us what you did and how much youearned. You can keep the extra money that you made. 51 52. Assignment:Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of todays class planning what you are going to do withthis money.Friday afternoon is allocated for you to make your sales. IBAB willissue receipts in case that is required for your customers.Saturday morning: come and tell us what you did and how much youearned. You can keep the extra money that you made.In case you didnt try to make money, you must return the Rs. 50/-. 52 53. An introduction to entrepreneurshipCreditsProf. R. K. Lagu (formerly, IIT Mumbai) http://www.it.iitb.ac.in/~mg647Entrepreneurship, 5th Edition, 2002 D. Hisrich and M. P. PetersStanford Technologies Venture Program (STVP)NEN-STVP Faculty Development Workshop,Mumbai 21-23 June 06