ed_2010

8/7/2019 ed_2010

http://slidepdf.com/reader/full/ed2010 1/55

SAURABH GARG

Distinction between

Entrepreneur and Manager

Point of distinction

Venture Risk bearing Reward Continuity Innovation Status role Prerequisites

8/7/2019 ed_2010


SAURABH GARG

Entrepreneurship and

Intrapreneurship

Basis of difference

Dependence

Capital

Risk

Operates

8/7/2019 ed_2010


SAURABH GARG

Entrepreneur Entrepreneurship refers

to refers to

Visualiser Vision

Organizer Organisation

Initiator Initiative

Innovator Innovation

Motivator Motivation

Planner Planning

Imitator Imitation

Decision maker Decision-making

Risk bearer Risk bearing

8/7/2019 ed_2010


SAURABH GARG

Barriers

Lack of technical knowledge

Lack of market knowledge

Lack of seed capital

Lack of business knowledge Social stigma

Time pressures and distraction

Legal and bureaucratical constraints

Patent inhibitions

Political instability Non cooperative attitude of banks and other

institutions

8/7/2019 ed_2010


SAURABH GARG

Problems of Women Entrepreneurs

Lack of need achievement,economic independence and autonomy

Absence of risk bearing capacity

Lack of education skill Male dominating society Lack of business information and

experience Heavily involved in family problems Lack of viable concept Social stigma attached to certain

vocations

8/7/2019 ed_2010


SAURABH GARG

Entrepreneurial Competencies or Traits

Capacity and willingness to assume risk Willingness to hard work and be always tenacious Vision and foresightedness

Creative and imaginative thinking

High need achievement Innovativeness and willingness to adapt to change Ability to organize resources

Total commitment,determination and perseverance High degree of ambition

Initiation , watching for opportunities,persistence,information seeker,quality conscious,commitment to work,persuation,concern for employees,eff icient monitoring.

8/7/2019 ed_2010


SAURABH GARG

Why should you become an

entrepreneur

You will have the chance to put your ideasinto practice

You will make money for yourself rather

than for someone else You will be your own boss and boss to

other people and make decisions that are crucial to the business¶s success or failure

You will have the chance to work in a f ield

or area that you really enjoy You will have the personal satisfaction of

creating and running a successful business.

8/7/2019 ed_2010


SAURABH GARG

Types of Entrepreneurs

Innovative Entrepreneurs: An innovative entrepreneur is one who launches new products, discovers

new markets, establishes new methods of production and restructures the enterprise. Innovative Entrepreneurs can workonly when def inite level of progress

has been previously accomplished. They focus on revolutionalisation and development.

8/7/2019 ed_2010


SAURABH GARG


Imitative Entrepreneurs: Imitative Entrepreneurs adopt victoriousinnovations launched by the

innovative entrepreneurs. They duplicate the technology and techniques innovated by others and they are suitable for underdeveloped countries.

8/7/2019 ed_2010


SAURABH GARG


Fabian Entrepreneurs: Fabian entrepreneurs are exemplif ied by great caution and skepticism in

experimenting any change in the organization. They imitate only in situations where it becomesnecessary to do so.

8/7/2019 ed_2010


SAURABH GARG


Drone Entrepreneurs: Drone Entrepreneurs suffer losses, as they refuse to make any modif ications in

the existing production methods.

8/7/2019 ed_2010


SAURABH GARG


Some of the behavioral scientistshave classif ied entrepreneurs as

follows Solo operators

These entrepreneurs basically workalone and if required may recruit few

people.

8/7/2019 ed_2010


SAURABH GARG


Active Partners

These entrepreneurs set up an enterprise as a joint venture and they actively take

part in the activities of the organization.

Simply partners

These entrepreneurs contribute funds, but are not involved in the operations of the

enterprise.

8/7/2019 ed_2010


SAURABH GARG


Inventors

These entrepreneurs are involved in

the research and development and innovative activities.

8/7/2019 ed_2010


SAURABH GARG

Problems of Entrepreneurship

External Which result from factors beyond the

control of entrepreneur

InternalThese are not influenced by external forces

they relate to organisation,structure,production channel

distribution channel,tecnical know how,training,industrial relations and inadequacy of management etc

8/7/2019 ed_2010


SAURABH GARG

Internal Problems

Choice of an idea

Feeble structure

Faulty planning

Poor project implementation

Poor management

Poor production poor quality

Poor quality

Marketing

Financial crunch

8/7/2019 ed_2010


SAURABH GARG

Labour problems

Capacity utilization

Lack of vision Lack of motivation

Inadequate training in skills

8/7/2019 ed_2010


SAURABH GARG

External Problems

Infrastructure

LocationPower

WaterCommunication

Financial Long term funds

RecoveryMarketingTaxation

8/7/2019 ed_2010


SAURABH GARG

Raw material

Industrial and f inancial regulations

Technology Competitive and volatile

environment

Government policy

Administrative hurdles Rampant corruption

8/7/2019 ed_2010


Since the time of independence, the small-scale sector in India has been a major contributor to country¶s Gross Domestic

Product (GDP). This traditional sector in India is considered to have huge growth

prospect with its wide range of products. With 40 percent share in total industrial output and 35 percent share in exports, the small-scale industrial sector in India is

acting as Engine of Growth in the new

millennium.

SAURABH GARG

8/7/2019 ed_2010


The def inition for small-scale industrial undertakingshas changed over time. Initially they were classif ied into two categories- those using power with lessthan 50 employees and those not using power with the employee strength being more than 50 but lessthan 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale

industries. An industrial unit can be categorized as a small- scale unit if it fulf ils the capital investment limit f ixed by the Government of India for the small-scale sector.

SAURABH GARG

8/7/2019 ed_2010


As per the latest def inition which iseffective since December 21, 1999, for any industrial unit to be regarded as Small

Scale Industrial unit the following condition is to be satisf ied: -

Investment in f ixed assets like plants and equipments either held on ownership terms

on lease or on hire purchase should not be more than Rs 10 million.

SAURABH GARG

8/7/2019 ed_2010


The traditional small-scale industries clearly differ from their modern counterparts in many respects. The traditional units are

highly labor consuming with their age-old machineries and conventional techniques of production resulting in poor productivity rate whereas the modern small-scale unitsare much more productive with lessmanpower and more sophisticated

equipments.

SAURABH GARG

8/7/2019 ed_2010


Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal are some of the traditional small-scale industries in India.

The modern small industries offer a wide range of products starting from simple items

like hosiery products, garments, leather products, f ishing hook etc to more sophisticated items like television sets, electronics control system, various

engineering products especially as ancillaries

to large industrial undertakings.

SAURABH GARG

8/7/2019 ed_2010


Nowadays Indian small-scale industries (SSIs) are mostly modern small-scale industries. Modernization has widened the list of products offered by thisindustry. The items manufactured in modern Small-scale service & Business enterprises in India now include rubber products, plastic products, chemical products, glass and ceramics, mechanical engineering items, hardware, electrical items, transport equipment, electronic components and

equipments, automobile parts, bicycle parts, instruments, sports goods, stationery items and clocks and watches.

SAURABH GARG

8/7/2019 ed_2010


Since independence the Government of India has nurtured this sector with special care with the following aims: -

To develop this sector as a major source of employmentTo encourage decentralized industrial expansion

To ensure equitable distribution of income.To mobilize capital investment and

entrepreneurship skills

SAURABH GARG

8/7/2019 ed_2010


Tiny Enterprises

Investment limit in plant and machinery in respect of tiny enterprises is Rs 2.5 million irrespective of location of the unit.

SAURABH GARG

8/7/2019 ed_2010


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

SAURABH GARG

8/7/2019 ed_2010


SAURABH GARG

Setting up a small scale industry

Small scale industries play a key role in industrialization of a developing country.

This is because they provide immediate large scale employment and comparatively higher labour/capital ratio, and moreover they need a shorter gestation period.

8/7/2019 ed_2010


SAURABH GARG

Sources of finance

Long term ± More than 5 years

Medium term ± 1 to 5 years

Short Term ± Less than 1 year

8/7/2019 ed_2010


SAURABH GARG

Long Term Sources

Equity Share

Preference Share

Debentures Loans from f inancial Institutions

Lease f inancing

Ploughing back of prof its

8/7/2019 ed_2010


SAURABH GARG

Medium Term

Loans from f inancial institutions

Public deposits

8/7/2019 ed_2010


SAURABH GARG

Short Term

Bank sourcesCash creditOverdraft

Term loanDiscounting of bills

Non Bank sourcesTrade credit

Advances from customersAccrued Expenses

8/7/2019 ed_2010


SAURABH GARG

Financial and developmental

institutions

1. All India f inancial institutions

IFCI , IDBI , ICICI , HDFC , EXIM BANK , SIDBI , NSIC:National small industries corporation

2. State level institutionsSFCs , SIDCs , SSIDCCs

8/7/2019 ed_2010


SAURABH GARG

SFCs State f inancial corporation

SIDCs State industrial development

corporation SSIDCs Small state industries

development corporation

District industries centre

8/7/2019 ed_2010


SAURABH GARG

Subsidy

Subsidy means a single lump-sum which is given by a government to

an entrepreneur to cover the cost. Bounty denotes a bonus or f inancial

aid given to an industry to compete

with other units in country or in a

foreign market

8/7/2019 ed_2010


SAURABH GARG

Subsidies in operation

Export/Import subsidies

Subsidies for R & D work

Transport subsidy Interest subsidy

Subsidy for power generations

Subsidies to artisans and traditional

industries including handloom Subsidy/Assistance for technical

consultancy

8/7/2019 ed_2010


SAURABH GARG

Problem of Incentives and Subsidies

Studies reveal that the incentivesand subsidies are being highly misused.

I&S turned out to be ground for dishonesty

They have given scope for favoritism and rampant corruption

They have become the seeds of unethical business practices

8/7/2019 ed_2010


National Bank for

Agriculture and Rural

Development

SAURABH GARG

8/7/2019 ed_2010


National Bank for Agricultureand Rural

Developm

ent (NABAR D) is an apex development bank in India. It has been accredited with "mattersconcerning policy, planning and

operations in the f ield of credit for agriculture and other economic activities in rural areas in India".

SAURABH GARG

8/7/2019 ed_2010


NABARD was established by an act of Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD)

and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Ref inance and Development Corporation (ARDC). It is one of the premiere agencies to provide credit in rural areas.

SAURABH GARG

8/7/2019 ed_2010


ROLE

1.Providing ref inance to lending institutions in rural areas

2.Bringing about or promoting institutional development and

3.Evaluating, monitoring and inspecting the client banks

SAURABH GARG

8/7/2019 ed_2010


Besides this pivotal role, NABARD also:

�Acts as a coordinator in the operations of rural credit institutions

�Extends assistance to the government, the ReserveBank of India and other organizations in mattersrelating to rural development

�Offers training and research facilities for banks, cooperatives and organizations working in the f ield of rural development

�Helps the state governments in reaching their targetsof providing assistance to eligible institutions in agriculture and rural development

SAURABH GARG

8/7/2019 ed_2010


NABAR D's Roles and Functionsare summarized below:

�Credit Functions �Developmental and PromotionalFunctions

�Supervisory Functions

�Institutional and Capacitybuilding

�Role in Training

SAURABH GARG

8/7/2019 ed_2010


CREDIT FUNCTIONS

�Framing policy and guidelines for rural f inancial institutions

�Providing credit facilities to issuing organizations

�Preparation of potential-linked credit plans annually for all districts for identif ication of credit potential

�Monitoring the flow of ground level rural credit

SAURABH GARG

8/7/2019 ed_2010


Functions

Help cooperative banks and Regional Rural Banks to prepare development actions plans for themselves

�Enter into MoU with state governments and cooperative banks specifying their respective obligations to improve the affairs of the banks in a stipulated timeframe

�Help Regional Rural Banks and the sponsor banksto enter into MoUs specifying their respective obligations to improve the affairs of the Regional

Rural Banks in a stipulated timeframe �Monitor implementation of development action

plans of banks and fulf illment of obligations under MoUs

SAURABH GARG

8/7/2019 ed_2010


Supervisory Functions

�Undertakes inspection of Regional Rural Banks (RRBs) and cooperative banks (other than urban/primary cooperative banks) under the provisions of Banking Regulation Act, 1949.

�Undertakes inspection of State Cooperative Agriculture and Rural Development Banks (SCARDBs) and apex non-credit cooperative societies on a voluntary basis

�Undertakes portfolio inspections, systems study,

besides off-site surveillance of cooperative banks and Regional Rural Banks (RRBs)

�Provides recommendations to Reserve Bank of India on opening of new branches by State Cooperative Banks and Regional Rural Banks (RRBs)

SAURABH GARG

8/7/2019 ed_2010


I f I can build a company like Biocon, anyone can«The first step was to dream however big or small«.I f you have a vision, no matter how big or small, aplan, no matter if it is imperfect, but if there is

passion and conviction for it, success is inevitable." 1

- Kiran Mazumdar Shaw, Managing Director,Biocon India Limited.

SAURABH GARG

8/7/2019 ed_2010


In November 2004, Kiran Mazumdar-Shaw (Kiran), the

Chairperson and Managing Director of Biocon India Limited (Biocon) received the 'Businesswoman of the Year Award,' from 'The Economic Times of India, a leading

Indian business daily. This award was to be given to a person who "was global in nature and would have shareholders' good uppermost in mind. The person should

have followed her heart and vision relentlessly, broken all glass ceilings and pioneered the cause of women in

business.³ It symbolized the increasing importance of the

role of women in the Indian business arena. One of the most successful businesswomen in India, Kiran had received several awards during her career of over 25

years

SAURABH GARG

8/7/2019 ed_2010


She founded Biocon as an enzyme extraction company in

a rented garage in 1978. By 2004, Biocon had emerged asthe #1 biotech company in Asia, and #16 in the world in

terms of revenues and market capitalization. The

company made its initial offer of shares to the public in March 2004. The shareholders earned handsome returnson their investments as the stock, which was offered at Rs

315, touched a high of Rs 780 in early November 2004Reportedly, Kiran had to break through the 'glass ceiling'

effect on several occasions being a woman entrepreneur

in the traditional Indian society

SAURABH GARG

8/7/2019 ed_2010


She believed that Indian women can do well in business

even if they don't belong to a business family or have political influence or immense wealth. Kiran believed that women in India were not meant for only certain kind of

jobs like teacher, nurse or personal secretary, or for running a small or cottage industry at the most. She considered herself a representative of the modern women

who could work shoulder-to-shoulder alongside men and build mega businesses. Expressing a deep desire for equality, she said in her award acceptance speech, "I do

hope that in the not-too-distant future, there will be one award for men and women alike - the Businessperson of the Year Award."

SAURABH GARG

8/7/2019 ed_2010


Kiran was born and brought up in Bangalore in the state

of Karnataka, India. She hailed from a middle-classfamily, which encouraged her to pursue higher education. Following the footsteps of her father, who was chief

brewmaster in United Breweries, she went to Ballarat College in Melbourne, Australia, to specialize in Malting and Brewing Technology to become India's f irst woman

brewmaster. Kiran came back to India in 1975 expecting to get lucrative job offers. However, she did not receive

any. Though she possessed the required technical

qualif ications, her chosen profession was completely male-dominated one. After staying for two years as a consultant in India, Kiran went abroad and found a job in the UK.

SAURABH GARG

8/7/2019 ed_2010


There she met Leslie Auchincloss(Auchincloss), the owner of Biocon Biochemicals Limited, an Ireland-based company. Auchincloss wasplanning to start a business in India. The Irish company wanted to

establish its operations in India to produce simple bio-products from indigenous raw materials.

SAURABH GARG

8/7/2019 ed_2010


The Growth of Biocon

Biocon started with the manufacture and export of Papain, a plant enzyme, and Isinglass, a marine hydrocolloid, which are key products for the brewing industry. Within two years, Biocon established a steady flow of exports to Ireland. As the offtake of the company's products by Ireland grew, Biocon'smanufacturing activity was shifted from the rented garage to a 20-acre site near Bangalore city in 1983.

Kiran was not content with the steady growth in the product offtake by the Irish company. In 1984, she decided to recruit a team to commence research and development (R& D) in new areas of enzyme technology.

SAURABH GARG

8/7/2019 ed_2010


» Describe the role of an entrepreneur and a leader in

creating a start-up and transforming it into a global player and a leader in its industry.

» Study the role of an entrepreneur in the struggle,

survival and success of a company in the initial and subsequent stages in the biotech industry.

» Analyze the leadership qualities of Kiran and identify those characteristics that contributed to the success of Biocon and made it the leading company in the biotech industry.

» Understand the signif icance and impact of a leader on an organization's culture and human resources

SAURABH GARG

Date post:	08-Apr-2018
Category:	Documents
Upload:	gurvinder-singh
View:	214 times
Download:	0 times

ed_2010

Documents