What is an Entrepreneur? • An Entrepreneur (ahn’tra pra nur) is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur. • Are individuals acting independently or as Are individuals acting independently or as part of an organization part of an organization • Create a new venture or develop an Create a new venture or develop an innovation & take risks entering them into innovation & take risks entering them into the marketplace the marketplace • Can be independent individuals Can be independent individuals • Can surface in an organization at any level Can surface in an organization at any level • Ent =Creation of a new company
Transcript
What is an Entrepreneur?• An Entrepreneur (ahn’tra pra nur) is a person who
organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur.
• Are individuals acting independently or as part of an Are individuals acting independently or as part of an organizationorganization
• Create a new venture or develop an innovation & Create a new venture or develop an innovation & take risks entering them into the marketplacetake risks entering them into the marketplace
• Can be independent individuals Can be independent individuals
• Can surface in an organization at any levelCan surface in an organization at any level• Ent =Creation of a new company
An individual or a group in an organization creates a new venture or develops an innovation
Corporate Entrepreneurship
Creating or developing a new product or processInvention
Creating a commercial product from an inventionInnovation
Adoption of innovation by a population of similar firmsImitation
Ent. actions based on a strategic perspective
Strategic Entrepreneurship:- Ent. actions based on a strategic perspective
• The Entrepreneurial Process involves all the functions, activities and actions associated with perceiving opportunities and creating organizations to pursue them
• The Nature of EntrepreneurshipEntrepreneur Someone who engages in entrepreneurship.
Entrepreneurship The process of planning, organizing, operating, and assuming the risk of a business
venture.
• 3 M’s of ENTREPRENEURSHIP Management Money Marketing
InnovationInnovation
Innovation is the process of creating a commercial Innovation is the process of creating a commercial product from an inventionproduct from an invention
• Invention brings something new into beingInvention brings something new into being
• Innovation brings something new into useInnovation brings something new into use
Innovation is a key outcome firms seek through Innovation is a key outcome firms seek through entrepreneurship and is often the source of competitive entrepreneurship and is often the source of competitive successsuccess
Innovations produced in large established firms Innovations produced in large established firms are often referred to as corporate are often referred to as corporate entrepreneurshipentrepreneurship
Definition of International Entrepreneurship
•International entrepreneurship is a combination of innovative, proactive and risk-seeking behaviour that crosses national borders and is intended to create value in organizations (McDougall and Oviatt, 2000).
•Entrepreneurship can:Entrepreneurship can:– Fuel economic growthFuel economic growth– Create employmentCreate employment– Generate prosperity for citizensGenerate prosperity for citizens
There’s a strong positive relationship between rates of entrepreneurial activity & There’s a strong positive relationship between rates of entrepreneurial activity & economic development in a nationeconomic development in a nation
•There must be a balance (in the culture) betweenSuccessful entrepreneurial firms–Provide appropriate autonomy–Incentives for individual initiative –Promote cooperation and group ownership of an innovation
The Role of Entrepreneurship in SocietyCapital formationGeneration of employment Increase in Per capita incomeReduce concentration of wealthBalanced regional development Resource mobilization
The Entrepreneur IndicatorThe Talent ChainInner-Outer Ego BalanceThe Talent-Temperament RelationshipThe Strength of TeamThe Presence (or otherwise) of Social
A MODEL OF THE ENTREPRENEURIAL PROCESSPersonal Personal Sociological Personal Organizational Achievement Risk taking Networks Entrepreneur Team Locus of control Job Teams Leader Strategy Ambiguity dissatisfaction Parents Manager Structure tolerance Job loss Family Commitment Culture Risk taking Education Role models Vision Products Personal values Age Education Commitment Experience Innovation Triggering event Implementation Growth Environment Environment Environment Opportunities Competition Competitors Role models Resources Customers Creativity Incubator Suppliers Government policy Investors Bankers Lawyers Resources
WHAT MAKES AN ENTREPRENEUR?
The Ten D’s (1)Dream
– Entrepreneurs have a vision of what the future could be like for them and their business. And, more importantly, they have the ability to implement their dreams.
Decisiveness– They don't procrastinate. They make decisions swiftly. Their swiftness is a key
factor in their success.Doers
– Once they decide on a course of action, they implement it as quickly as possible.
Determination– They implement their ventures with total commitment. They seldom give up,
even when confronted by obstacles that seem insurmountable. Dedication
– They are totally dedicated to their business, sometimes at considerable cost to their relationships with their friends and families. They work tirelessly. Twelve-hour days, and seven-day work weeks are not uncommon when an entrepreneur is striving to get a business off the ground.
The Ten D’s (2)Devotion
– Entrepreneurs love what they do. It is that love that sustains them when the going gets tough. And it is love of their product or service that makes them so effective at selling it.
Details– It is said that the devil resides in the details. That is never more true than in
starting and growing a business. The entrepreneur must be on top of the critical details.
Destiny – They want to be in charge of their own destiny rather than dependent on an
employer.D-Marks
– Getting rich is not the prime motivator of entrepreneurs. Money is more a measure of their success. They assume that if they are successful they will be rewarded.
Distribute– Entrepreneurs distribute the ownership of their business with key employees
who are critical to the success of the business.
INGREDIENTS FOR A SUCCESSFUL NEW BUSINESS
The Ten F’s
Founders:Every startup company must have a first-class entrepreneur.
Focused:Entrepreneurial companies focus on niche markets. They specialize.
Fast :They make decisions quickly and implement them swiftly.
Flexible:They keep an open mind. They respond to change.
Forever-innovating :They are tireless innovators.
Flat:Entrepreneurial organizations have as few layers of management as possible.
Attributes of Entrepreneurial failure• Pride/Ego• ‘Wrong Decisions’: business partner• Financial problems• Lack of Expertise• Too many people involved• Conflicts• Not understanding the business fully• Lack of Devotion to the business rather than its outcome
The entrepreneurial orientation (Miller, 1983)• Innovation • Proactive• Risk Taking
Agri-Entrepreneurs Example
Fishing Guide
Three Aspects of Entrepreneurship1. The identification/recognition of market
opportunity and the generation of a business idea (product or service) to address the opportunity.
2. The marshalling and commitment of resources in the face of risk to pursue the opportunity
3. The creation of an operating business organization to implement the opportunity-motivated business
Successful EntrepreneursAccording to the Small Business Administration, successful
entrepreneurs have five characteristics:1. Drive, which is defined as the most important attribute. Entrepreneurs
can expect long hours, high stress and endless problems, as they launch a new business.
2. Thinking Ability, or the characteristic that encompasses creativity, critical thinking, analytical abilities and originality.
3. Aptitude for Human Relations. This characteristic recognizes the importance of the ability to motivate employees, sell customers, negotiate with suppliers and convince lenders. Personality plays a big part in success in this area.
4. Communication Skills, or the ability to make yourself understood.5. Technical Ability speaks to the need of the entrepreneur to know their
product and their market. They must consider the long- and short-term implications of their decisions, their strengths and weaknesses, and their competition. In short, they need strategic management skills.
Innovation Types:Innovation Types:
Most innovations are incrementalMost innovations are incrementalBuilds on existing knowledge basesBuilds on existing knowledge basesProvides small improvements in the current Provides small improvements in the current
• Creates new knowledgeCreates new knowledge• Is rare because of difficulty and riskIs rare because of difficulty and risk
RadicalRadicalinnovationinnovation
• Requires substantial creativityRequires substantial creativity• Radical innovations are often best Radical innovations are often best
developed in separate units that start developed in separate units that start internal venturesinternal ventures
Creating Value through Internal Innovation Creating Value through Internal Innovation ProcessProcess
Entrepreneurial mind set
Cross-functional product development teams
Creating value through innovation
Facilitating integration and innovation • Shared values • Entrepreneurial leadership
EntrepreneurshipSome advantages
– You are your own boss– Enjoy the profits from you efforts– Sense of pride in your business– Flexibility in your work schedule
Some disadvantages– Will need to put in long hours– Need money to start– Have to keep up with government rules and regulations– May have to mark hard decisions (hiring, firing, etc.) – May lose money
The field of Entrepreneurship“The scholarly examination of how, by whom, and with what
effects opportunities to create future goods and services are discovered, evaluated and exploited.
Consequently the field involves the study of sources of opportunities; the process of discovery, evaluation and exploitation of opportunities; and the set of individuals who discover, evaluate and exploit them”
Competition has a new meaningCompetition as positioning (outside-in)Competition as dominating (inside-out)Competition as innovating
The entrepreneurial continuumPromoter Trustee
Strategic Orientation Driven by perception ofopportunities
Driven by controlledresources
Commitment to Opportunities Revolutionary Evolutionary
Commitment of Resources Many stages Single stage
Control of Resources Episodic use or rent Ownership and employment
Management Structure Flat Hierarchical
(Stevenson & Gumpert, 1985)
Promoter Vs Trustee in Strategic Orientation
Where is the opportunity?What resources do I need to capitalize on it?What structure is appropriate?
What resources do I control?What structure determines our organization’s relationship to its mkt?What opportunity is appropriate?
'Cultural' family tendency towards 'natural' products
Tension to grow in the mail-order sale of
goods
‘Direct tension’ determinants
‘Diffused tension’ determinants
Availability offinancial resources
1 2
3
4
5
External context/Environment
Content.Entrepreneurial behavior:
Organizational context
Behavioral context/Past experiences
Strategic context
Growth orientation
Organizational and Governance
StructureAttitude towards resource/knowledge
combinations.Pursuit of entrepreneurial opportunities, regardless of internal resources currently
controlled
External resources/competencies
Internal resources/competencies
The role of knowledge
Entrepreneurship CultureWhy an Why an entrepreneurship entrepreneurship culture?culture?
What constitutes an What constitutes an entrepreneurship culture?entrepreneurship culture?
What do citizens What do citizens want? want?
E = relationship with economic growth & building social capital
Best form of job creation for yourself and others in times of ‘jobless’ growth
Entrepreneurship lasts longer than any functional aspect of business
The way we live creatively with change
Growth in concentration of firms, networks & linkages
Higher levels of education, skills & learning
Growth in intermediary organisations to whom some tasks are delegated, & in different forms of entrepreneurship – new firms, social entrepreneurship, entrepreneurial culture
Direct influence of internationalisation – technology, human resources, capital & information flows
A safer society
A clean green environment
More spending on health & education
Caring communities
A well-performing economy & growth in business sectors
Style, design, culture
What Information are Entrepreneurs Missing?
Research has identified four areas where entrepreneurial information is typically incomplete:
1. Risk in the form of financial return to investors2. Complexity -- the number of inputs with which a business must
deal 3. Ignorance -- what the entrepreneur doesn’t know that he
doesn’t know4. Indeterminism – not knowing how an entrepreneur’s actions
will affect the outcome
FFA and Entrepreneurship
During the past decade the Kauffman Foundation has supported a new FFA initiative to support entrepreneurship activities– Awards program (and money)– Video “You’re the Boss”– Materials
The following requirements are to be complied with by an industrial undertaking to be graded as Small Scale Industrial undertaking w.e.f. 21.12.1999
An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million.
(Subject to the condition that the unit is not owned, controlled or subsidiary of any other industrial undertaking)
(Subject to the condition that the unit is not owned, controlled or subsidiary of any other industrial undertaking)
Ancillary Industrial Undertakings The following requirements are to be complied with by an
industrial undertaking for being regarded as ancillary industrial undertaking: -
An industrial undertaking which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates, or the rendering of services and the undertaking supplies or renders or proposes to supply or render not less than 50 per cent of its production or services, as the case may be, to one or more other industrial undertakings and whose investment in fixed assets in plant and machinery whether held on ownership terms or on lease or on hire-purchase, does not exceed Rs 10 million.
Tiny Enterprises& Women Entrepreneurs
Tiny Enterprises:Investment limit in plant and machinery in respect of tiny enterprises is Rs 2.5 million irrespective of location of the unit.
Women Entrepreneurs:A Small Scale Industrial Unit/ Industry related service or business enterprise, managed by one or more women entrepreneurs in proprietary concerns, or in which she/ they individually or jointly have a share capital of not less than 51% as Partners/ Shareholders/ Directors of Private Limits Company/ Members of Cooperative Society.
List of Items Reserved for Exclusive Manufacture
– Food And Allied Industries – Textile Products Including Hosiery – Art Silk/Man-Made Fibre Hosiery – Wood And Wood Products – Paper Products – Leather And Leather Products Including Footwear – Rubber Products – Plastic Products – Injection Moulding Thermo Plastic Products (1) – Injection Moulding Thermo Plastic Products (2) – Chemicals And Chemical Products Laboratory Chemicals And
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