Entrepreneurship

Session-2

Ratan Tata

Every Tata has his legacy and Ratan Tata, the man with a rare mix of grace, composure and steely nerves, has created his own by winning the Corus .

Battle against odds just as he steered the people's car project at Singur in West Bengal.

True Entrepreneur Ratan Tata was named the Ernst

& Young Entrepreneur of The Year 2003.

The Tata Trusts are the unsung heroes of an extraordinary saga of philanthropy that has enriched the country and its citizens in more ways than can be quantified

Reason for venturing: Tata and Corus will become the world’s

fifth-largest steelmaking firm . Ensuring global presence. Low-cost country with raw material

availability . Strong and growing economy. Indigenous raw materials . Rising consumer demand and

infrastructure needs

Simple Definitions Entrepreneurs…people who create

and grow enterprises Entrepreneurship…the process

through which entrepreneurs create and grow enterprises.

Entrepreneurship development… the infrastructure of public and private policies and practices that foster and support entrepreneurship.

What is Entrepreneurship?

Entrepreneurship is a dynamic form of social and economic behavior in which people respond to environmental signals about the availability of opportunities and the resources with which they can be exploited.

Rae and Carswell

Entrepreneur: What's In a Definition? "Entrepreneurship is the

recognition and pursuit of opportunity without regard to the resources you currently control, with confidence that you can succeed, with the flexibility to change course as necessary, and with the will to rebound from setbacks."

What do we mean by entrepreneurship contd….

There is only one definition of ”entrepreneur”

An entrepreneur is someone who gets something new done.” Peter

Drucker

What is Entrepreneurship?

An entrepreneur is a person who sees opportunity, sizes up its value, and finds the resources to make the most of it.

Jim NelsonUniversity of Idaho

The American Heritage Dictionary defines an entrepreneur to be

"a person who organizes, operates, and assumes the risk for business ventures."

The art of entrepreneurship is the art of modern leadership. Ability to discover an investment

opportunity and to organize an enterprise.

Taking risk and making the necessary investments under conditions of uncertainty.

The art of entrepreneurship is the art of modern leadership. Ability to bring together and put

to use other factors of production

capital, labour, land

Entrepreneurship:

Creation of corporate wealth by leveraging sweat equity,innovation and brilliant vision,a well thought out strategy and flawless execution.

What is critical factor ?

Over population ? Food Shortage ? National resources shortage ? Energy Shortage ? Lack of Technology? Then what's the critical

factor????

The factor…. Unique aptitude of innovation. Urge for change. Ability to utilize present day

technology.

There is dire shortage of appropriate economic innovator and implementer….

The psychology of successful entreprenuers

Shared vision: A marketable idea: A sound strategy and

implementable plan: A layer of competent

management: A shared value system: Professionalism:

The psychology of successful entreprenuers

Spirit of sacrifice: Pride in creation of wealth: Leadership by example:

A general admiration for the entrepreneur

a general admiration for the entrepreneur who has a skill and bravely jumps into the middle of the fire hoping not to get burned.

Characteristics of Entrepreneurs

Entrepreneurs have: A passion for what they do. The creativity and ability to innovate. A sense of independence and self-

reliance. (Usually) a high level of self

confidence. A willingness and capability (though

not necessarily capacity or preference) for taking risks.

Characteristics of Entrepreneurs Versatile knowledge. Energetic and Diligent. Responsive to suggestions. Responsive to critism. Dynamic Leader. Resourceful and preserving

Accepting challenges for growth

Entrepreneurship

OrganizationDecision Making

Skilful ManagementRisk taking

Making the enterprise successInnovation/Improvement

Characteristics of Entrepreneurs

Entrepreneurs do not (usually) have: A tolerance for organizational

bureaucracies A penchant for following rules A structured approach to developing

and implementing ideas The foresight to plan a course of

action once the idea is implemented and established

Specific entrepreneurship areas

Business ideas and development Products or services Marketing Management Financial management

Entrepreneurs vs. managers Management skills include:

Technical production skills Knowledge of marketing skills Organizational and human resource

skills Financial skills Ability to develop simple tasks to

solve complicated problems Ability to find complete and efficient

solutions to problems

ENTREPRENUER

Innovation

Administrative Ability

Organization Skills

Intelligence

Creativity

Clear Objective

Business Secrecy

Sound Knowledge/Technical Knowledge

Emotional Stability

Public Relation

Effective Communication

The People

Who are the “people?” The men and women starting and

running the business Also includes outside parties who

provide key services or resources•Accountants•Lawyers•Suppliers

The Opportunity

Is the market: Large? Rapidly growing? Both?

Is the industry now, or can it become, structurally attractive?

It is easier to gain market share from a growing market than from a stagnant one

The entrepreneur is solely The entrepreneur is solely and fully responsible for and fully responsible for

his funds.his funds.

Said differently, you could Said differently, you could conclude that the conclude that the

entrepreneur has to be entrepreneur has to be reasonably sure of the reasonably sure of the success of his ideation.success of his ideation.

Whereas, failure of Whereas, failure of intrapreneurship probably intrapreneurship probably just means the company just means the company has a loss of profit from has a loss of profit from

its other businesses.its other businesses.

EntrepreneurshiEntrepreneurshipp

Pg 1.4Pg 1.4

Is an entrepreneur a Is an entrepreneur a manager?manager?

Yes.Yes.

Is a manager an Is a manager an entrepreneur?entrepreneur?

Not necessarily!Not necessarily!

There are just a few There are just a few essential differencesessential differences

EntrepreneursEntrepreneurshiphip

Pg 1.4Pg 1.4

EntrepreneurshiEntrepreneurshipp EE MM

VentureVenture NewNew ExistingExisting

RiskRisk YesYes NoNo

RewardReward ProfitProfit Salary Salary

StatusStatus Ind. Ind. Not Not Ind.Ind.

Pre-req.Pre-req. No qual.No qual. Qual.Qual.CreativeCreative

Pg 1.4Pg 1.4

Motivation:

Entreprenuer has dignity,self respect,values,sentiments,aspirations.

Economic betterment and social upliftment motivates differentiates them.

They have some basic values and responsibilities.

The business of motivation Factors of motivation: Educational background. Occupational experience. Desire to work independently. Desire to branch out manufacturing. Family background. Assistance from financial

instututions

The business of motivation Availability of technology Other factors-demand of

particular product etc.

Factors:

Internal External

Factors Internal to Entrepreneurs

Strong desire to do something in life.

Technical knowledge/manufacturing experience.

Business experience in the same or related line.

Factors external to entrepreneurs: Financial assistance from

institutional sources. Machinery on hire/purchase. Attitude of the Govt. Encourage from big business. Heavy Demand. Profit Margin.

Seven keys to motivation that may prove helpful Inspiration: Setting goals: Networking: Reward Yourself:

Other Traits:

Self –confidence: Ability in themselves.

Long term involvement: Long term commitment to the projects

High Level Energy: Ability to work long

Entrepreneurial Leadership: Give positive feedback for good

job. Initiate confidence in employees. Be fair and objective, not

vindictive. Practice what is preached,donot

ask for something that employees are not willing to do.

Entrepreneurial Leadership: Down to earth, person to person

approach. Be compassionate and understanding. Create an atmosphere of acceptance

and trust. Classification of priorities. Be available for discussion. Talk openly and give straight answers.

Administrative competence: The leader should understand

his /her job. Understand employees job. Utilizing peoples skill effectively. Be concerned with employees and

work flow. Get tough when necessary. Provide proper human resource for

all levels.

Types of Entrepreneurs:

Spontaneous Entrepreneurs (pure entrepreneurs):

Motivated by their desire. Natural ,and no external

motivation required. Strength in creative abilities.

Types of Entrepreneurs: Motivated Entrepreneurs: Motivated by their desire to

make use of tech/professional expertise.

They possess-confidence,initiative ,boldness.

Provides new products/service to consumers.

Types of Entrepreneurs:

Innovative business ventures.

Types of Entrepreneurs:

Induced Entrepreneurs:

Induced by policy of government.

Some study details: Managing entrepreneurs :chief motive

is security. Innovative entrepreneurs: primarily

looks for excitement. Controlling entrepreneurs who become

entrepreneurs to fulfill their desire for power.

The Opportunistic type, who was driven by expectations of financial gain,

Some study details: The “Push” type, driven by

negative “push” reasons for starting a business,

Basically four strategies: Customer partnership

strategy :concentrating on few large customers.

Niche strategy : with highly focused product and market scope.

Cost leader: with high emphasis on cost control.

Investment promotion strategy :which invest heavily in promotion and brand building,

as well as product development.

Entrepreneurial Attitude:

Tendency to take moderate risk: An eye for economic

opportunity: Imaginative: Initiative: Believe,to change environment: Enjoy freedom of expression

Entrepreneurial Attitude:

Analyzing situation and planning action.

Find satisfaction from successful completion of task:

Innovation, Entrepreneurship & Intrapreneurship

Corporate Entrepreneurship

Concerned with innovation that leads to new corporate divisions or subsidiary ventures.

Entrepreneural Businesses

Family businesses Franchises Home based businesses

Commitment to Excellence

Understand the customer. Provide quality products and

services. Knowledge and expertise, esp.

business. Details. Continuous learning. Commit time and effort.