Post on 26-Jun-2015
transcript
Changing the meaning of Innovation
ENTREPRENEURSHIP
DISCUSSION/AGENDA
• Entrepreneurship
• Introduction
• Historical Background
• Role in Economic Development
• Models/Theories of Entrepreneurship
• Entrepreneurship in Pakistan
• Examples of Some Successful Entrepreneurs
INTRODUCTION • The act of being an entrepreneur, which can be
defined as "one who undertakes innovations,
finance and business acumen in an effort to
transform innovations into economic goods“
• The capacity and willingness to undertake
conception, organization, and management of a
productive venture with all attendant risks, while
seeking profit as a reward.
HISTORICAL BACKGROUND
• Origins are centuries old
• Marco Polo- the first modern entrepreneur
• Industrial Revolution in 17th and 18th century saw
many successful entrepreneurs
• 20th century saw the evolution of
entrepreneurial history developing its most
recent form
ROLE IN ECONOMIC DEVELOPMENT
• Dominant role in Economy
• Employment to masses
• Contribution toward research and development
• Creates wealth for nation
• Entrepreneurship provides self sufficiency
MODELS/THEORIES OF
ENTREPRENEURSHIP
Opportunity (2) Resources (4)
Team (3)
Communication
Ambiguity
Creativity
Uncertainty
Leadership Exogenous Forces
Capital Market Context
Founder
(1)
Timmons Model
KEY FACTORS OF TIMMONS MODEL
1) Entrepreneur(Founder)
2) Opportunity
3) Team
4) Resources
THEORIES OF ENTREPRENEURSHIP
• Economic Theory
• Sociological Theory
• Psychological Theory
• Innovation Theory
• Achievement Motivation Theory
ECONOMIC THEORY
• Favorable economic conditions
• Economic incentives as motivators
• Incentives include taxation policy, industrial
policy, sources of finance and raw material,
infrastructure availability, investment and
marketing opportunities, technology etc.
SOCIOLOGICAL THEORY
• Society’s values
• Customs & traditions
• Religious beliefs
• Social changes
• Influence the behavior of individuals in a society.
PSYCHOLOGICAL THEORY
• Necessary psychological characteristics
Vision
Foresight
Ability to face opposition
Need for high achievement
Self-Reliance
ACHIEVEMENT MOTIVATION THEORY
• People with high achievement orientation are more likely to become entrepreneurs
• Not influenced by money or external incentives
• Consider profit to be a measure of success and competency
ENTREPRENEURSHIP IN
PAKISTAN
ENTREPRENEURSHIP IN PAKISTAN
• Current State in Pakistan
• Factors for poor business environment
• Conclusions and Recommendations
CURRENT STATE OF ENTREPRENEURSHIP
• Inequality between large and small enterprises
• Crippled Innovation
• Rent Seeking and Land Development
• Non-commercial cities
CURRENT STATE OF ENTREPRENEURSHIP
• 22 families control:
• 66% industrial assets
• 70% of the insurance
• 80% banking interests
• Enterprise survey by The world bank:
• Only 17.01% of the 965 firms have ISO certification
Factors for Poor
Business Environment
Attraction of Rents
Costs of Corruption
Lack of Research
and Development
Poor Legal Framework
Financial Constraints
Lack of Trust and Social
Capital
Factors for Poor
Business
Environment in
Pakistan
FACTORS FOR POOR BUSINESS ENVIRONMENT
• Corruption:
• Government departments (15-20) visit enterprises with
various threats and extort small sums
• They collect from 0.2% to 5% of annual sales
• Businesses dedicate 1 -3 people for dealing with
extortion
• Lack of Innovation:
• Only 0.57% capital is spent on R&D.
0
5
10
15
20
25
30
35
40
45
50
Top 10 Constraints to Firm Investments in Pakistan
Rec
omm
enda
tions
Reinventing the Role of Government
Building Growth Cities
Releasing the Energy of the Domestic sector
Brand Development and Management
A New Growth Strategy
Promotion of Guarantees, Warrantees and Returns
Recommendations
CONCLUSION
• Pakistan has a large market of 180 million
people waiting to be exploited
• Move from current focus of Government
planning to a more market and commerce
based approach.
Innovation distinguishes between a
leader and a follower
FAMOUS
ENTREPRENEURS
Now we will discuss some famous inventors and
entrepreneurs like:
• Thomas Edison
• Michael Dell
• Bill Gates
• Steve Jobs
Famous Entrepreneurs
THOMAS EDISON
• Born in 1847.
• Most famous for inventing electric bulb, but his
first commercial success was actually the
phonograph.
• Introduction of DC power.
• In 1887 there were 121 Edison generating plants
in the U.S.
MICHAEL DELL
• Dell is Chairman and CEO of Dell computers. His
company worth of about $30 billion.
• Born in February 1965.
• In 1984 with just $1,000 and an idea to provide
affordable personal computers to college students.
• Michael Dell revolutionized the personal computer
industry by skipping the middle man and selling directly
to the customer.
STEVE JOBS
• Born in 1955.
• Steve Jobs was the co-founder of Apple
Computers and Pixar Animation Studio. He
became a member of the board of directors of
The Walt Disney Company in 2006.
• In 1984, Steve Jobs founded NeXT computers.
• In 1996, Apple announced that it would buy NeXT for
$429 million. The deal was finalized in late 1996, bringing
Jobs back to the company he co-founded.
• He earned only $1 a year as CEO of Apple,but held
5.426 million Apple shares, as well as 138 million shares
in Disney. Forbes estimated his net wealth at $8.3 billion
in 2010.
• After Steve Jobs return to Apple as CEO in 1997, Apple
Computers has had a renaissance in product
development with the iMac, iPod, iPhone, iPad and more.
BILL GATES
• Bill Gates, founder of Microsoft, was born on October
28, 1955.
• From an early age he had an interest in computers and
started programming them at age 13. He went to study
at Harvard, but dropped.
• He and Paul Allen adapted the BASIC programming
language for use on the Altair 8800 - the first
successful personal computer.
• He ranks as the richest person in the world.
According to 2006 estimate the net worth of his
company was about $50 billion.
• Bill Gates is perhaps the most famous
entrepreneur of this era. He had the vision to
predict the evolving importance of the personal
computer.
REFERENCES • http://www.brighthub.com/office/entrepreneurs/articles/73336.aspx
• http://www.innovationventures.sg
• http://www.wikipedia.org/
• http://www.internationalentrepreneurship.com/asia/pakistan/
• http://pakistan.wikia.com/wiki/Entrepreneurship