Group 6 entrepreneourconcept

8/7/2019 Group 6 entrepreneourconcept

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Concept of Entrepreneur



Definition

y ³A entrepreneur is one who is one who is capable of

inspiring confidence in people, and has the ability to

motivate them to work with him in fulfilling the

economic goals set by him´

� ------ STEPHEN COVEY



Basics of an E ntrepreneur

Urge

Vision

Innov a

tion

Sk ill

Risk

Manag

ement





Types of E ntrepreneurs

y Business entrepreneur

y Trading entrepreneur Stock, real estate, etc

y Industrial entrepreneur

Large, medium, small, tiny

y A gricultural entrepreneur

Plantation, floriculture, dairy , poultry



Types of E ntrepreneurs

y Retail entrepreneur

y Service entrepreneur Repair, Beauty parlours

y Health entrepreneur

y Social entrepreneur



Myths of Entrepreneur

y Myth 1: Entrepreneurs A re Doers, Not Think ers

y Myth 2: Entrepreneurs A re Born, Not Made

y Myth 3: Entrepreneurs A re A lw ay s Inventors



y Myth 4: A ll Entrepreneurs Need Is Money

y Myth 5: A ll Entrepreneurs Need Is Luck

y Myth 6: Entrepreneurs A re Extreme Risk Tak ers



Entrepreneurship

y Definition: by Peter Drucker

Entrepreneurship is defined as µa sy stematic

innov ation, which consists in the purposeful andorganized search for changes, and it is thesy stematic analy sis of the opportunities suchchanges might offer for economic and social

innov ation



Entrpreneur

y Dynamic process of vision, change, and creation

y Requires an application of energy

y Passion towards the creation and implementation of new ideas and creative solutions

y Willingness to take calculated risks- in terms of time,equity, or career

y Ability to formulate an effective venture team

y

Fundamental skills of building a solid business plany Finally, the vision to recognize opportunity where

others see chaos, contradiction, and confusion.



Enterprise

y Entrepreneur is a person who starts an enterprise

y Process of creation is called entrepreneurship

y Entrepreneur is the actor and entrepreneurship is

the act

y The outcome of the actor and the act is called theenterprise

y Enterprise is the business organization that is formed and which provides goods and services, creates jobs, contributes to national income, exports and over all economic development



A dv antages of Entrepreneur

y Excitement:

Enjoy s the freedom of decision mak ing

Enjoy s much excitement beginning from the planning stage of

the business up to development and realization

y Salary Potential:

Entrepreneurs earn money that is commensurate to their

efforts



A dv antages contd

y Flexibility:

Have control of work schedules, commitments

Mak es the life of these entrepreneurs enviable

A ble to tak e v acations anytime Spend much quality time with their f amilies

y Independence:

People who love the idea of not being answerable to anyone

else but themselves Mak e decisions without the pressure of getting fired



Difficulties of Entrepreneur

y No Regular Salary:

Entrepreneurs experience lean months when all financialresources are being tak en up by the new business

Work Schedule: Situations that require them to work longer hours

Unlik e regular employees who are not worried too much aboutthe status of the business, entrepreneurs must mak e sure thateverything is going well



Difficulties of Entrepreneur

y Administration:

Responsibility of handling the business is quite difficult

Every decision directly affects the future of their businesses

and avoiding costly mistak

es is imperative



FUNCTIONS OF ENTREPRENEUR S

� Idea Generation

� Determination of objectives

� R aising of funds

� Production planning

� Mark et research

� Determination of form of enterprise

�

Recruitment of manpower� Implementation of the project



Gender Issues inEntrepreneurship



Major causes and their results

y Inadequate motiv ation

y Lack of social acceptance

y Shift from joint f amily to nuclear f amily

y Lack of training

y Fear of f ailure

y Inability to tak e risk

y Lack of self confidence



Examples of successful women entrepreneurs

y Lijjat papad

y Priy a Paul

y Indira Gawda



Small Scale Industries & their Role inEconomy



History of SME

y Pre liberalization ± License R aj

y Post liberalization of Indian economy; need fordevelopment of Small scale industries w as felt

y Decision mak ers understood that developing smallscale sector would also result in decentralizedindustrial expansion, better distribution of wealthand to encourage investment and entrepreunial

talent.



Post Liberalization

y Policies lik e investment ceiling for the SSI sector andpriority lending.

y The adv ancement in computer andtelecommunication technology , increase in ecommerce, opening up of mark ets due to W TO, mergers and acquisitions, improved infrastructure

and outsourcing noncore area of business have allcontributed to the growth of SSI



Governmental Measures for developing the SmallScale Sector

y Reserv ation of certain items to be manuf actured only by the small scale sector.

y Other measures include promoting exports, access to

technology , and entrepreneurship development, fiscal, financial and infrastructural support.

y In 1999, the government established the Ministry of Small Scale Industries and A gro and Rural industries to

mak e policy decisions for the development and wellbeing of the small scale industries.



Role of SME in the Economy

y SMEs in India constitute more than 80 percent of thetotal number of industrial enterprises

y Currently contributes 17% of GDPy They form the back bone of industrial development

y Nearly 3 million SMEs in Indiay They contribute almost 50 per cent of the gross industrial

v alue added and 45 per cent of the total exports (directand indirect exports) from India.

y 2nd largest employers of human resources, after

agriculturey Generate more number of employment opportunities per

unit of capital invested compared to large industries.



Objectives of SME

y A special role for SMEs were earmark ed in the Indianeconomy with the advent of planned economy and thesubsequent industrial policy

1. High contribution to domestic production2. Significant export earnings3. Low investment requirements4. Operational flexibility 5. Low intensive imports6. Capacity to develop appropriate indigenous technology

7. Import substitution8. Technology -oriented industries9. Competitiveness in domestic and export mark ets





Ease of setup of SME¶s

y Small industries produce simple products usingsimple technologies and depend on locally av ailableresources both material and labour can be set up

anywhere in the country.y Since they can be widely spread without any

locational constraints, the benefits of industrialisation can be reaped by every region.

They , thus, contribute significantly to the balanceddevelopment of the country



Challenges f aced by SME¶s

y Lack of mentoring

y Lesser avenues for fund raising

y A bsence of a good track record

y Lack of collateraly Higher Interest rates ± Higher cost of raising funds

y Credit crunch

y Shortage of sk illed labour

y Lack of experiencey Entry Barriers

y Low levels of R&D



The W ay Forw ard

y SME Exchanges ± Relaxations made by SEBI

y Policy change with regards to SMEs by the Centre

y Subsidies & export promotion

y

Tax/Duty Relief s

y Financial A dvisory



THA NK YOU

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Group 6 entrepreneourconcept

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