1 Anil Kumar RathJitendra Sahoo

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LEARNING OBJECTIVES Entrepreneur Vs. Businessman Entrepreneurship Factors Motivating Entrepreneurship Entrepreneurship Process Availability of Resources Contribution towards Economy Education, Innovation and Entrepreneurship Problems of an Entrepreneur 21st Century Trend in Entrepreneurship Research Why Become an Entrepreneur ? Some Cases

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THE EVOLUTION OF ENTREPRENEURSHIP

Entrepreneur is derived from the French entreprendre, meaning “to undertake.” The entrepreneur is one who undertakes to

organize, manage, and assume the risks of a business.

Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject.

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ENTREPRENEUR

“The initiative and voluntary act of managing risk and assuming responsibility in transforming creativity and innovation to unique product for the purpose of providing effective and efficient solutions to consumers, while achieving long-term profitability and contributing growth to the economy as a whole. ”

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QUALITIES

Initiative

Voluntarism

Risk Management and Responsibility

Creativity and Innovation

Passion to win

Providing Effective Consumer Solution

Long Term Profitability

Contributing Growth To Economy

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ENTREPRENEUR VS. BUSINESSMAN

ENTREPRENEURS VS MANAGERS

High

 

 

Inventor   

 

Entrepreneur

 Promoter

  

 Manager,

administrator

  

Creativity and Innovation     

General management skills, business know-how, networks High

Low

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ENTREPRENEURSHIP

“Entrepreneurship is an act of being an entrepreneur which can be precisely defined as "one who undertakes innovation, finance and business acumen in an order to transform innovations into economic goods”

It is a mind set that is: Opportunity focused Innovative Growth oriented

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FACTORS MOTIVATING ENTREPRENEURSHIP

Personal attributes:-

1. Higher internal locus of control

2. Desire for financial success

3. Desire to achieve self-realization

4. Joy of innovation

5. Risk Tolerance

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Environmental Factors:-

1. Local, Regional, or National attitudes towards

entrepreneurship

2. Social and cultural pressures for or against risk

taking and entrepreneurship

3. Access to entrepreneurial role models

4. Responsibilities to family and community

5. General Govt. facilities

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ENTREPRENEURIAL PROCESS:-

Identifying opportunity

Assess and acquire necessary resources

Execution

-producing the product or service

-Marketing

-designing and building a company

-responding to the environment

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AVAILABILITY OF EARLY STAGE FINANCE

Self financing

-own saving

-family business

-borrowed from family and friends

Bank finance

Angel investor

Venture capital

Private equity

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BANK FINANCE

Traditional bank financing- Adequate collateral to judge credit-worthiness.

Difficult at the start-up stage Comparatively easy at the growth stage.

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ANGEL INVESTOR

Angel investors are typically high-net-worth individuals (HNIs) who have often been successful entrepreneurs themselves.

Institutional seed funds They invest in new-idea enterprises and help

to bring these ideas to market take significant risks

VENTURE CAPITAL Venture capital funding provides funds for early

stage companies once they have passed the seed stage and report some returns.

developing, launching and expanding new products or services.

lesser degrees of risk invest more money.

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PRIVATE EQUITY

Private Equity (PE) funds are among the largest sources of funding for enterprises.

Requiring significantly large funds for expansion and growth.

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ENCOURAGING ENTREPRENEURSHIP IN INDIA

A transparent rating system for SMEs formed, where the cost of credit is linked to the credit rating of the enterprise.

Credit Information Bureau (India) Limited (CIBIL), Dun & Bradstreet Information Services India Private Limited (D&B), SIDBI, and a few other banks have together set up SMERA (SME Rating Agency)

Banks have also reported reduction in interest rate by 25 to 100 basis points for ‘SMERA rated companies.

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MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT (MSME ACT):

Key aim is to facilitate access to finance and incentivize efficient use of funds by entrepreneurs.

Bring about greater growth in numbers and overall competitiveness.

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MUTUAL CREDIT GUARANTEE

First MGAs appeared in Europe in the 1940s In India, the Indian Institute of Rural

Development (IIRD), with support from UNIDO, launched the Mutual Credit Guarantee Fund Scheme (MCGFS) in 2000.

To help hand block printing textile clusters & overcome the difficulty in accessing credit arising from the inability to offer traditional forms of collateral.

ALEAP Credit Guarantee Association (ACGA) agreement with Andhra Bank and CGTSI for implementation of MCGS in the state of Andhra Pradesh .

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CONTRIBUTION TOWARDS ECONOMY

New combination of means of production,

New industry formation,

Increasing opportunities for employment,

Additional wealth creation,

Introduction and dissemination of new

methods & technology,

Overall economic growth.

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Government

Family

Education

Finance community

Idea Risk aptitude

Skills

Finance

Space

JobsWealthEntrepreneurs

The Entrepreneurial Ecosystem

Facilitators

Deliverables

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FIGURE 1.2: ENTREPRENEURSHIP AND TECHNOLOGICAL CHANGE

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AN INTEGRATIVE MODEL OF ENTREPRENEURIAL INPUTS AND OUTCOMES

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Education is indispensable for skill development

and fundamental to Entrepreneurship and

innovation.

Innovation catalyzes Entrepreneurship by

providing ideas that can be converted into wealth

(through goods and services).

An entrepreneurial culture drives creation of

wealth from knowledge and generates impetus

for further innovation.

Education, Innovation and Entrepreneurship

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EDUCATION--SKILL DEVELOPMENT & F.E--CREATING INNOVATION

Higher and Professional Education

Vocational Education & Training- (Skill

Development) 96% in Korea 75% in Germany 80% in Japan 68% in United Kingdom

05% in India

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PROBLEM OF AN ENTREPRENEUR

Infrastructure Legal system Labour laws Corruptions Information Taxation Licensing

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21ST CENTURY TRENDS IN ENTREPRENEURSHIP

Venture Financing

Social Entrepreneurshi

p

Corporate Entrepreneurshi

p

Trends in Entrepreneurship

Research

Entrepreneurial Cognition

Global Entrepreneurial

Movement Family

Businesses

Women Entrepreneurs

Entrepreneurial Education

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You will be an entrepreneur.. or

Work for an entrepreneur…..?

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WHY BECOME ENTREPRENEUR……..?

Be your own Boss.

To create jobs than search for a job

To get financial reward

To involve in total process of the business

Prestige

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STEVE JOBS Founded Apple Computers- 1976

Former Chairman-cum-CEO Pioneer of the PC Revolution Product- i pod, i phone, i pad,

PCs

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BABA RAMDEV Founder- Divya Yoga Trust & Patanjali yoga trust Product- Daily consumer

products Ayurvedic Medicines Brand- Patanjali, Divya

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DR. ACHYUTA SAMANTA

Founder- KIIT & KIIS KIIT- Established 1992 Awarded- Deemed university status in 2004 Awards -Nominated for UK-India Business Awards-2009-Asia’s Best Social Entrepreneur - 2010 by the World

HRD Congress-The Times of India Orissa Icon 2011 Awards (Social

Service)

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SHAHRUKH KHAN AS AN ENTREPRENEUR

o Founded RED CHILLIES ENTERTAINMENT in 2002 .

o Now the turn over of this company in 2011-12 financial year is 150+ crore

o Successful movies made under this banner are:-

Chalte chalte(2003) Main hoon na(2004) Paheli (2005) Om Shanti Om (2007) Ra.one(2011)

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BIBLIOGRAFY

www.google.com National Knowledge Commission Survey Entrepreneur Magazine

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