KIMEP (Kazakhstan Instıtute Management and Economic Research) June 10, 2011 Almaty, Kazakhtstan Entrepreneurship in a Free Society Moderator : Bahattin Karademir
What is entrepreneurship?
Who are the entrepreneurs?
What is the significance of entrepreneurship?
How to nurture entrepreneurship?
What should be the appropriate strategies?
D r. Khanna ‘s current research focuses on understanding the drivers of entrepreneurship worldwide. As part of the Emerging Giants project, he seeks to understand how to build world-class companies from emerging markets worldwide. In 2008 he published a book on entrepreneurship , “ Billions of Entrepreneurs: How China and India are Reshaping their Futures and Yours ”, in which he compares entrepreneurship in China and India (see, http:// hbswk . hbs .edu/ item /5766.html ) Prof. Tarun Khanna Harvard Business School What makes him so hopeful about the future of India?
What is Entrepreneurship?
Process of creating something new;
Devoting the necessary time and effort;
Assuming the financial, psychic and social risks;
Receiving the resulting rewards of monetary and personal satisfaction and independence.
Who are Entrepreneurs?
An entrepreneur may be:
Man or woman
Someone with high income or low income
A technologist or someone lacking technological sophistication
Henry Ford set out to build a car which everyone could afford to buy.
It was slow, ugly and difficult to drive, and was nick named the ‘Tin Lizzie’ by the American people.
The attraction of the Model T Ford was that its price never increased.
Costing $1200 in 1909, the price in 1928 was only $295 .
By 1929 Ford was producing more than one car per minute
1913 – Mother of Karl Albrecht & Theo Albrecht brothers opened a small store 1946 – Brothers took over their mother’s shop and opened one another soon after 1960 - Brothers split the business when they had 300 stores 1970s - Initial internationalization 1993 – Brothers retired 2010 – 8210 stores in 19 countries Karl & Theo Albrecht
Michael Dell is the chairman of the Board of Directors of Dell, the company he founded in ’84 for $1,000.
With an unprecedented idea---build relationships directly with consumers (born in February ‘65).
“ Selling tech products by telephone and then the Internet… Michael broke the paradigm about how to run a computer business; they haven’t been so great at finding the next paradigm.”
Murthy founded Infosys in 1981 in Pune with an initial capital of US $250, most of which was borrowed from his wife Sudha Murthy .
At its inception, he invited six other engineers to join the company.
Infosys is one of the largest IT companies in India with 122,468 employees as of 2010.
It has offices in 33 countries and development centres in India , China , Australia , UK , Canada and Japan .
The Small Business Not Dominant In Its Field Fewer Than 50 Employees Independently Owned and Operated Relatively Small Annual Sales
Ad Van Vugt
The Story of an Entrepreneur
A Vase of Marbles
Economic Roles of Small Businesses Share in Total Output Bovee, C., Thill, J., Mescon, M. (2005), Excellence in Business, 5th edition, pg: 116, Pearson Prentice Hall, United States.
Economic Roles of Small Businesses They Provide New Jobs Bovee, C., Thill, J., Mescon, M. (2005), Excellence in Business, 5th edition, pg: 116, Pearson Prentice Hall, United States.
Economic Roles of Small Businesses Share in Non Farm Employment Bovee, C., Thill, J., Mescon, M. (2005), Excellence in Business, 5th edition, pg: 116, Pearson Prentice Hall, United States.
Economic Roles of Small Businesses They Introduce New Products Bovee, C., Thill, J., Mescon, M. (2005), Excellence in Business, 5th edition, pg: 116, Pearson Prentice Hall, United States.
Economic Roles of Small Businesses Annual Spending Bovee, C., Thill, J., Mescon, M. (2005), Excellence in Business, 5th edition, pg: 116, Pearson Prentice Hall, United States. Small Businesses Big Businesses
Why New Businesses Fail
Lack of Industry Experience
Poor Business Planning
Diminished Customer Base
Poor System of Controls
Lack of Entrepreneurial Skills
How to Nurture Entrepreneurship? What are the appropriate strategies?
Should the government provide cheaper inputs such as raw materials, energy etc?
Should the government provide favorable credits through state owned banks etc?
Should the government protect local market through quotas, import taxes etc?