entrepreneurial skills and bpos
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Entrepreneurship activities, Idea formulation and screening, BPOs and Govt. Support to BPO.TRANSCRIPT
An
entrepreneurial
Process
Rahul Pratap Singh KauravAsst. Professor,
Prestige Institute of Management, Gwalior
Entrepreneurship and the Entrepreneurial Process
Entrepreneurship
• The process of starting and running one’s own business
Entrepreneur – Origin of the term
ENTREPRENDRE (19TH C. FRENCH WORD):
means ‘somebody who undertakes’.
Entrepreneur
• An entrepreneur is an individual who undertakes the risk associated with creating, organizing, and owning a business
Steps in the Entrepreneurial Process
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting
Steps in the Entrepreneurial Process
1. Discovery: The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market
Innovation
Opportunity
Discovery
Consider your hobbies or skills
Consider consumer needs and wants
Conduct Surveys and questionnaires – test the
market Study demographics
We thrive in an environment of academic excellence where students are prepared to meet and exceed their future challenges. We recognize each student's worth and develop life-long learners who make positive contributions to our changing society.
Steps in the Entrepreneurial Process
2. Concept Development: – Develop a business plan: a
detailed proposal describing the business idea
Executive summary
Code of ethics
Mission Statement
Concept Development
– Choose business location– Will a patent or trademark be required?
Steps in the Entrepreneurial Process
3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc
Start-up resources
Resourcing
Identify potential investors
Hire employees
Apply for loans, grants and assistance
Steps in the Entrepreneurial Process
4. Actualization: The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals/objectives.
@# Grand Opening #@
Day-to-Day Operations
Steps in the Entrepreneurial Process
5. Harvesting: The stage in which the entrepreneur decides on venture’s future growth, development, or demise
What is your 5-year or 10-year plan?
Consider adding locations or providing different products/services
Will you go public?
EMERGING TRENDS IN BUSINESS
Emerging Trends in Business
• Business and technology have fused into one system, one conversation, and one strategy, for one world.
• The formation and networking of knowledge would be the true asset of the 21st century.
• The analysis of customer information about product/service- needs, wants, desires, demand.
Emerging Trends in Business
• The integration of customer touch points across all channels is essential to future success.
• The capacity of an organization to understand the key trends that will shape the future of technology, customers, society and the marketplace will determine the survival of the enterprise.
• Human capital, the value of talent will be the most valuable resource in the 21st century.
Growing and Managing
a Small Business
An Entrepreneurial Perspective
THE NEW VENTURE CREATION PROCESS
• The environment is the most comprehensive component in the venture creation process.
• It includes all the factors that affect the decision to start a business, for example, government regulation, competitiveness, and life cycle stage.
• Within specific industries and in specific geographic regions, environmental variables and the degree of their impact will differ.
• The new venture process begins with an idea for a product, service, or business.
Feasibility Analysis • The entrepreneur develops an idea into a business
opportunity or business concept that is then tested in the market through a process of feasibility analysis.
• Feasibility analysis is used to inform the entrepreneur about the conditions required to move forward and develop the business. This may involve market research.
• Once the entrepreneur has determined that the
concept is feasible, a business plan is developed to detail how the company will be structured and to describe its operation
Viability• Testing the business concept in the real world is
what actually determines if the business has viability. Thus, the business must actually be launched and operated in the environment to determine viability.
• In a business, the term viability is the point
when the company is able to generate sufficient cash flows to allow the business to survive on its own without cash infusions from outside sources such as the entrepreneur's own resources, investors, or a bank loan.
The Five Stages of a Business’s Life Cycle
• Pre Start-up• Start-up• Growth• Maturity• Rebirth or Decline
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Figure 3.1 The Life Cycle of the Company
LAUNCHING A NEW BUSINESS
Three key issues in the pre-start-up phase:
1) Testing concept feasibility 2) Developing a business plan 3) Acquiring resources ($$$ and personnel)
Three key issues in the start-up phase:
1) Finding customers2) Building a structure3) Generating positive cash flows
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Opportunity Creation
Developing a product, service, process, or niche that has not existed before. Opportunity recognition requires high levels of creativity.
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Opportunity Creation
• Typically, opportunity creation involves an invention process that is characterized by four activities:
• connection, • discovery, • invention, and • application
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Opportunity Creation• Connection occurs when two ideas are
brought together that normally are not juxtaposed, such as nature and machines, which produced the field of nanotechnology or microscopic machines that copy nature in the way that they operate.
• Discovery happens once a connection has been made. It is actually the result of the connection in the form of an idea.
• Inventions are the product of turning an idea into a product or service.
• Application comes about when the inventor is able to apply the invention to a number of different uses or applications in a variety of industries and situations.
Opportunity Recognition
The process of using creative skills to identify a new innovation --- (a product, service, process, or marketing
method) ---which is often based on something already existing in the marketplace.
Getty Images
How to recognize a business opportunity
• List all the ideas in no particular order.
• Eliminate those ideas that can’t generate a profit and don’t fit the business model very well.
• Review the remaining ideas and choose
the one that inspires the most passion and enthusiasm
The Initial Business Concept:
There are four essential elements required to test whether or not a potential business idea is feasible:
• What is the product and/or service that is the basis for the business?
• Who is the customer likely to be?
• What is the benefit of your product/service to the customer?
• How will the benefit be delivered?
Feasibility AnalysisThe business concept (which is essentially a specific product or service) is tested through a process of feasibility analysis that answers three fundamental questions:
1. Are there customers and a market of sufficient size to make the concept feasible?
2. Do the capital requirements to start, based on estimates of sales and expenses, make sense?
3. Can an appropriate start-up team be put together to make it happen?
Five Forces Analysis
Goals of Market Research
To find out:
• Who is most likely to purchase the product or service at market introduction?
• What do these customers typically buy, how do they buy it, and how do they hear about it?
• What is their buying pattern? How often do they buy?
• What are the customers’ needs and how can the new venture meet those needs?
The Best Founders
Founders of successful companies have many things in common. They are:
– A common vision– Passion and a willingness to dedicate
themselves– Experience in the industry– Contacts for capital– Experience in basic business functions– Excellent credit ratings
Bootstrappers • Bootstrappers are
start-up entrepreneurs who have no financial resources beyond their own savings.
• They realize that to get what they need to start their businesses—location, equipment, money, and perhaps employees—they must possess a double dose of ingenuity and supreme self-assuredness.
START-UP RESOURCES
Putting together sufficient resources to start a business requires enormous creativity and persistence, with the ultimate reward being a company that is able to reach critical mass and take advantage of significantly more choices for growth capital.
Government Support to BPO in
India
What is BPO?
“the contracting out of companies in house functions to a preferred vendor
with high quality level in particular Task area”
There are 2 parties involved:• Client company• Vendor
Business process outsourcing
• BPO– Processes,
framework inherited from client
– One time fixed cost reduction for client
– Set up to cater specific client
– Fixed price model– Targeted at CIO
Benefits of BPO
• Focus on key functions• Reduction in Cost• Less investment• Specialization• Convenience• Freedom of choice• Economic progress
Out sourcing different type of services
• Financial services• Advertising services• Courier services• Customer support services
Why to Out source?
It is good to out source because it will cost organization to do following and increase expenses.• Expertise• Costs• Services • Upgrades
Government support to
BPO in India
• Setting ready to start, software IT parks for running BPO by government.
• Providing Income tax exemptions to– Back office operations– Call centres– Medical transcription– Insurance Claim processing– Data processing– Web site services– Support centres
• Import duty free hardware under Export promotion of capital goods scheme (EPCG scheme)
• reduction of procedural bottlenecks by the government/reduction of red-tapism by creating single window system
• FDI upto 100% allowed