introduction unit i

8/4/2019 Introduction Unit i

1/26

Unit I

Entrepreneurial Development


2/26

Entrepreneur Evolution: The word entrepreneur has been taken from the French

language where it cradled and originally meant todesignate an organizer of musical or otherentertainments.

Oxford English Dictionery (in 1897) also defined anentrepreneur in similar ways as the director or amanager of a public musical institution, one who getsup entertainment, especially musical performance. In the early 16th century, it was applied to those who

were engaged in military expedition.

It was extended to cover civil engineering activities suchas construction and fortification in the 17th century. It was only in the beginning of the 18th century that the

word was used to refer to economic aspects.


3/26

Views of Entrepreneur As a Risk-Bearer

As an Organizer

As an Innovator


4/26

Characteristics of an

Entrepreneur Hard Work

Desire for High Achievement

Highly Optimistic

Independence Foresight

Good Organizer

Innovative


5/26

Functions of an Entrepreneur Idea Generation and scanning of the best suitable

idea.

Determination of the business objective

Product analysis and market research Determination of form of ownership/ organization

Completion of promotion formalities

Raising necessary funds

Procuring machine and material

Recruitment of men

Undertaking the business operations


6/26

Types of Entrepreneur Innovative Imitative

Fabian

Drone

Solo operator

Active Partner

Inventor

Challenger Buyers

Lifetimers


7/26

Entrepreneurship Entrepreneurship is the attempt to create value

through recognition of business opportunity, themanagement of risk-taking appropriate to theopportunity, and through the communicative and

management skills to mobilize human, financial andmaterial resources necessary to bring a project tocompletion.

Thus, entrepreneurship refers to the functions

performed by an entrepreneur in establishing anenterprise.

Just as management is regarded as what managersdo, entrepreneurship may be regarded as whatentrepreneurs do.


8/26

Factors affecting EntrepreneurialGrowth

Economic Factors

Capital

Labour

Raw Materials

Market

Non Economic Factors

Sociological Factors Legitimacy of Entrepreneurship

Social Mobility

Marginality

Security

Psychological Factors Need Achievement

Withdrawal of Status Respect

Government Actions


9/26

Entrepreneurship & EconomicDevelopment An increase in the number of entrepreneurs leads to an increasein economic growth.

This effect is a result of the concrete expression of their skills,and more precisely, their propensity to innovate.

Schumpeter has already described this innovative activity, thecarrying out of new combinations, by distinguishing five cases. The introduction of a new good that is one with which

consumers are not yet familiar or of a new quality of a good. The introduction of a new method of production. The opening of a new market. The conquest of a new source of supply of raw materials or half-

manufactured goods.

The carrying out of the new organisation of any industry: likecreation of monopoly or breaking up of monopoly.

These opportunities can result from productivity increases, inwhich case, their relationship to economic growth appears quiteclearly.


10/26

Entrepreneurship & EconomicDevelopment The important role that entrepreneurship plays in the economicdevelopment of an economy is as follows:

Entrepreneurship promotes capital formation by mobilizing theidle savings of the public.

It provides immediate large-scale employment. Thus, it helpsreduce the unemployment problem in the country i.e., the root of

all socio-economic problems. It promotes balanced regional development. It helps reduce the concentration of economic power. It stimulates the equitable redistribution of wealth, income and

even political power in the interest of the country. It encourages effective resource mobilization of capital and skill

which might otherwise remain unutilized and idle. It also induces backward and forward linkages which stimulatethe process of economic development in the country.

Last but not the least, it also promotes countrys export trade i.e.,an important ingredient to economic development.


11/26

Theory of Achievement

Motivation David McClelland pioneered workplace

motivational thinking, developing achievement-based motivational theory and models, andpromoted improvements in employee assessment

methods, advocating competency-basedassessments and tests, arguing them to be betterthan traditional IQ and personality-based tests.

David McClelland is most noted for describingthree types of motivational need, which heidentified in his 1961 book, The AchievingSociety: achievement motivation (n-ach)

authority/power motivation (n-pow)

affiliation motivation (n-affil)


12/26

The need for achievement (n-ach) The n-ach person is 'achievement motivated' and

therefore seeks achievement, attainment ofrealistic but challenging goals, and advancementin the job. There is a strong need for feedback as

to achievement and progress, and a need for asense of accomplishment.


13/26

the need for authority and power(n-pow)

The n-pow person is 'authority motivated'. Thisdriver produces a need to be influential, effectiveand to make an impact. There is a strong need tolead and for their ideas to prevail. There is also

motivation and need towards increasing personalstatus and prestige.


14/26

the need for affiliation (n-affil) The n-affil person is 'affiliation motivated', and has

a need for friendly relationships and is motivatedtowards interaction with other people. Theaffiliation driver produces motivation and need to

be liked and held in popular regard. These peopleare team players.


15/26

Explanation of the Theory McClelland said that most people possess and exhibit acombination of these characteristics.

Some people exhibit a strong bias to a particular motivationalneed, and this motivational or needs 'mix' consequently affectstheir behaviour and working/managing style.

Mcclelland suggested that a strong n-affil 'affiliation-motivation'

undermines a manager's objectivity, because of their need to beliked, and that this affects a manager's decision-makingcapability.

A strong n-pow 'authority-motivation' will produce a determinedwork ethic and commitment to the organisation, and while n-powpeople are attracted to the leadership role, they may not possess

the required flexibility and people-centred skills. McClelland argues that n-ach people with strong 'achievement

motivation' make the best leaders, although there can be atendency to demand too much of their staff in the belief that theyare all similarly and highly achievement-focused and resultsdriven, which of course most people are not.


16/26

McClelland's Experiment

McClelland asserted via this experiment that whilemost people do not possess a strong achievement-based motivation, those who do, display a consistentbehaviour in setting goals:

Volunteers were asked to throw rings over pegsrather like the fairground game; no distance wasstipulated, and most people seemed to throw fromarbitrary, random distances, sometimes close,

sometimes farther away. However a small group of volunteers, whom

McClelland suggested were strongly achievement-motivated, took some care to measure and testdistances to produce an ideal challenge - not too

easy, and not impossible.


17/26

contd McClelland contrasted achievement-motivated

people with gamblers, and dispelled a commonpre-conception that n-ach 'achievement-motivated' people are big risk takers.

On the contrary - typically, achievement-motivated individuals set goals which they caninfluence with their effort and ability, and as suchthe goal is considered to be achievable.

This determined results-driven approach is almostinvariably present in the character make-up of allsuccessful business people and entrepreneurs.


18/26

.contd

McClelland suggested other characteristics and attitudes ofachievement-motivated people:

achievement is more important than material or financial reward.

achieving the aim or task gives greater personal satisfaction thanreceiving praise or recognition.

financial reward is regarded as a measurement of success, not an end initself.

security is not prime motivator, nor is status.

feedback is essential, because it enables measurement of success, notfor reasons of praise or recognition (the implication here is that feedback

must be reliable, quantifiable and factual). achievement-motivated people constantly seek improvements and ways

of doing things better.

achievement-motivated people will logically favour jobs andresponsibilities that naturally satisfy their needs, i.e offer flexibility andopportunity to set and achieve goals, e.g., sales and businessmanagement, and entrepreneurial roles.


19/26

Conclusion of the Experiment McClelland firmly believed that achievement-

motivated people are generally the ones whomake things happen and get results, and that thisextends to getting results through the

organisation of other people and resources,although as stated earlier, they often demand toomuch of their staff because they prioritiseachieving the goal above the many varied

interests and needs of their people.


20/26

Top 10 Women Entrepreneurs ofIndia

Dr. Kiran Mzumdar Shaw, Chairman & Managing Director ofBiocon Ltd., who became Indias richest woman in 2004, waseducated at the Bishop Cotton Girls School and Mount CarmelCollege in Bangalore. She founded Biocon India with a capital ofRs.10,000 in her garage in 1978 the initial operation was to extractan enzyme from papaya. Her application for loans were turned downby banks then on three counts biotechnology was then a new

word, the company lacked assets, women entrepreneurs were still ararity. Today, her company is the bigget biopharmaceutical firm in thecountry.

Ekta Kapoor, creative head of Balaji Telefilms, is the daughter ofJeetendra and sister of Tushar Kapoor. She has been synonymous

with the rage of soap operas in Indian TV, after her most famousventure Kyunki Saas Bhi Kabhi Bahu Thi which was aired in 2000on Star plus. Ekta dominates Indian Television. At the 6th Indian TellyAwards 2006, she bagged the Hall Of Fame award for hercontributions.


21/26


Neelam Dhawan, Managing Director, Microsoft India, leadsMicrosoft India. She is a graduate from St. Stephens College in1980,and also passed out from Delhis Faculty Of Managementstudies in 1982. Then she was keen on joining FMCG majors likeHindustan Lever and Asian Paints, both companies rejectedDhawan, as they didnot wish to appoint women for marketingand sales.

Naina Lal Kidwai, was the first Indian woman to graduate fromHarvard Business School. Fortune magazine listed Kidwaiamong the worlds top 50 Corporate Women from 2000 to 2003.According to the Economic times, she is the first woman to headthe operations of a foreign bank in India. ( HSBC)


22/26


Indu Jain, the multi-faceted lady used to be the Chairman of theTimes Group-The most powerful and largest Media house Indiahas known. Indu Jain is known by many different identities suchas that of spiritualist, humanist, entrepreneur, an educationalistbut most prominently she played the role of the Chairman ofTimes Group. Indu Jain is the perfect picture of the successfulIndian Woman entrepreneur.

Priya Paul, she has a bachelors degree specialising inEconomics from Wellesley College, USA. She entered her familybusiness and is currently the Chairperson of Park Hotels.


23/26


Simone Tata, has been instrumental in changing a smallsubsidary of Tata Oil Mills into the largest cosmetic brand inIndia LAKME, synonymous today with Indian Fashion. Shebecame a part of Lakme during 1961 and has been responsiblefor turning the company into one of the biggest brands of fashionin India. At present she is the Chairperson of Trent Limited, asubsidary of Tata Group.

Mallika Srinivasan, currently the Director of TAFE- Tractorsand Farm Equipment, India , was honoured with the title ofBusinesswoman of the Year during 2006 by the Economic Times.She joined the company in 1986 and has since been responsiblefor accelerating turnover from 85 crores to 2900 crores within a

span of 2 decades.


24/26


Preetha Reddy, Managing Director of Apollo Hospitals,Chennai, one of the largest healthcare conglomerates of India, isone of the pioneer businesswoman of India in the segment ofHealth Care Industry.

Ranjana Kumar, currently Vigilance Commissioner in CentralVigilance Commission, after her retirement as the Chairpersonof NABARD- National Bank For Agricultural and RuralDevelopment, is a prominent Indian Banker. When theGovernment of India appointed her as the Chairperson andManaging Director of The Indian Bank, she became the firstwoman to become head of a public sector bank in India. At that

time of her appointment, The Indian Bank was saddled with hugelosses and during her tenure she ensured the turn around of TheIndian Bank.


25/26

Problems of Women

Entrepreneurs Problem of Finance Scarcity of Raw Material

Stiff Competition

Limited Mobility Family Ties

Lack of Education

Male-Dominated Society

Low Risk-Bearing Ability


26/26

THANK YOU

introduction unit i

Documents