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    Ent matealri Ent matealri Document Transcript

    • Entrepreneurship is the act of being an entrepreneur, which can be defined as "one whoundertakes innovations, finance and business acumen in an effort to transform innovations intoeconomic goods".For Frank H. Knight and Peter Drucker , entrepreneurship is about taking risk. The behavior of theentrepreneur reflects a kind of person willing to put his or her career and financial security on theline and take risks in the name of an idea, spending much time as well as capital on an uncertainventure.Concept of entrepreneurship:Entrepreneurs play a significant role in the development of the economy. An entrepreneur affectsthe lives of many people as it creates new job, provides the product, develops the technology, andprovides feasible solutions to the existing social and environmental problems. Entrepreneurshipcreates wealth for the person and for the country. It is the most powerful force of the economy.Today, the business environment and technological advancements present complex challenges toan individual’s entrepreneurial drive and determination. Most entrepreneurs prefer to outsourceprojects to save on operating cost. They even outsource the most critical process of theirmanufacturing or business operationsRole of entrepreneurship in economic development.Entrepreneur: An entrepreneur can be regarded as a person who has the initiative skill andmotivation to set up a business or enterprise of his own and who always look for highachievements. He is the catalyst for social change and works for the common good. They looks foropportunities, identifies them and seizes them mainly for economic gains. An action orientedentrepreneur is a highly calculative individual who is always willing to to undertake risks in orderto achieve their goals.***Need for Entrepreneurship Development : Economic development essentially means a processof upward change whereby the real pr capita income of a country increases over a period of time.Entrepreneurship has an important role to play in the development of a country. It is one of themost important inputs in economic development. The number and competense of entrepreneursaffect the economic growth of the country.The economic history of the presently advanced countries like USA, Russia and japan supports thefact that economic development is the outcome for which entrepreneurship is an inevitable cause.The crucial and significant role played by the entrepreneurs in the economic development ofadvanced countries has made the people of developing and under developed countries consciousof the importance of entrepreneurship for economic development. It is now a widely acceptedfact that active and enthusiastic entrepreneurs can only explore the potentials of the countriesavailability of resources such as labour, capital and technology. 1SSV/GSTC bhaskar
    • The role of entrepreneurs is not identical in the various economies. Depending on the materialresources, industry climate and responsiveness of the political system, it varies from economy toeconomy. The contribution of entrepreneurs may be more in favourable opportunity conditionsthan in economies with relatively less favourable opportunity conditions.Entrepreneurship and Economic Development : Entrepreneurship helps in the process ofeconomic development in the following ways :1) Employment Generation :Growing unemployment particularly educated unemployment is theproblem of the nation. The available employment opportunities can cater only 5 to 10 % of theunemployed. Entrepreneurs generate employment both directly and indirectly..2) National Income :National Income consist of the goods and services produced in the countryand imported. The goods and services produced are for consumption within the country as well asto meet the demand of exports. The domestic demand increases with increase in population andincrease in standard of living. The export demand also increases to meet the needs of growingimports due to various reasons.3) Balanced Regional Development :The growth of Industry and business leads to a lot of Publicbenefits like transport facilities, health, education, entertainment etc. This helps in thedevelopment of backward regions.4) Dispersal of economic power :Industrial development normally may lead to concentration ofeconomic powers in a few hands. This concentration of power in a few hands has its own evils inthe form of monopolies. Developing a large number of entrepreneurs helps in dispersing theeconomic power amongst the population. Thus it helps in weakening the harmful effects ofmonopoly.5) Better standards of living : Entrepreneurs play a vital role in achieving a higher rate of economicgrowth. Entrepreneurs are able to produce goods at lower cost and supply quality goods at lowerprice to the community according to their requirements. When the price of of the commoditiesdecreases the consumers get the power to buy more goods for their satisfaction. In this way theycan increase the standard of living of the people.6) Creating innovation : An entrepreneur is a person who always look for changes. apart fromcombining the factors of production, he also introduces new ideas and new combination offactors. He always try to introduce newer and newer technique of production of goods andservices. An entrepreneur brings economic development through innovation. 2SSV/GSTC bhaskar
    • Entrepreneurial Process - A FrameworkThere are many ways to organize the effort of planning, launching and building a venture. Butthere are a set of fundamentals that must be covered in any approach. We offer the following as away to break down the basic activities necessary.It is useful to break the entrepreneurial process into five phases: idea generation, opportunityevaluation, planning, company formation/launch and growth. These phases are summarized in thistable, and the Opportunity Evaluation and Planning steps are expanded in greater detail below.1. Idea Generation: every new venture begins with an idea. In our context, we take an idea to be adescription of a need or problem of some constituency coupled with a concept of a possiblesolution.2. Opportunity Evaluation: this is the step where you ask the question of whether there is anopportunity worth investing in. Investment is principally capital, whether from individuals in thecompany or from outside investors, and the time and energy of a set of people.3. Planning: Once you have decided that an opportunity, you need a plan for how to capitalize onthat opportunity. A plan begins as a fairly simple set of ideas, and then becomes more complex asthe business takes shape. In the planning phase you will need to create two things: strategy andoperating plan.4. Company formation/launch: Once there is a sufficiently compelling opportunity and a plan, theentrepreneurial team will go through the process of choosing the right form of corporate entityand actually creating the venture as a legal entity.5. Growth: After launch, the company works toward creating its product or service, generatingrevenue and moving toward sustainable performance. The emphasis shifts from planning toexecution. At this point, you continue to ask questions but spend more of your time carrying outyour plans.Intrapreneurship : refers to employee initiatives in organizations to undertake something new,without being asked to do so."An intrapreneur is a person who has an entrepreneur skill set but works within an organization,enterprise, or venture. This could be within an organization that seeks the dynamism of forwardthinking employees or incubation companies.Hence, the intrapreneur focuses on innovation andcreativity, and transforms an idea into a profitable venture, while operating within theorganizational environment.Thus, intrapreneurs are Inside entrepreneurs who follow the goal of the organization.Intrapreneurship is an example of motivation through job design, either formally or informally. 3SSV/GSTC bhaskar
    • Employees, such as marketing executives or perhaps those engaged in a special project within alarger firm, are encouraged to behave as entrepreneurs, even though they have the resources,capabilities and security of the larger firm to draw upon.***Intrapreneurship describes the process of developing new products, services, and lines ofbusiness within an existing company. It is perhaps best understood as a form of internalentrepreneurship that takes place with the encouragement and support of management. Anemployee who takes responsibility for developing an innovative idea into a marketable product isknown as an intrapreneurEg : Emily Hwengere wrote in the Financial Gazette. "Without intrapreneurs who can identify andexploit new opportunities, organizations will naturally die." One of the most commonly citedintrapreneurship success stories is 3M Corporation, which has a policy that allows employees tospend 15 percent of their working hours developing their own business or product ideas. Thispolicy led to the creation of Post-It-Notes and other successful products by 3M employees. *** UNIT-2Who is an entrepreneur?An entrepreneur is a person who develops a new idea and takes the risk of setting up anenterprise to produce a product or service which satisfies customer needs.“All entrepreneurs are business persons, but not all business persons are entrepreneurs”Characteristics of entrepreneur:1.InitiativeAn entrepreneur takes actions that goes beyond job requirements or the demand of the situation2.Opportunity seekingAn entrepreneur is quick to see and seize opportunities. He/she does things before he/she is askedto work by people or forced by situation.3.PersistenceAn entrepreneur is not discouraged by difficulties and problems that come up in the business orhis/her personal life. Once she sets a goal she is committed to the goal and will becomecompletely absorbed in it. 4SSV/GSTC bhaskar
    • 4.Information seekingAn entrepreneur undertakes personal research on how to satisfy customers and solve problems.He/she knows that different people have different capabilities that can be of help to them. He/sheseeks relevant information from his/her clients, suppliers, competitors and others. He/she alwayswants to learn things which will help the business to grow.5.Demand for quality and efficiencyAn entrepreneur is always competing with others to do things better, faster, and at less costhe/she strives to achieve excellence.6.Risk takingAre you afraid of uncertainties? Then you cannot be an entrepreneur. Entrepreneurs are not highrisk takers. They are also not gamblers; they calculate their risks before taking action. They placethemselves in situations involving moderate risk so they are moderate risk takers.7.Goal settingAn entrepreneur sets meaningful and challenging goals for him/herself. An entrepreneur does notjust dream. Him/she thinks and plans what he/she does. He/she is certain or has hope about thefuture.8.Commitment to workAn entrepreneur will work long hours after into the night just to be able to keep his/her promiseto his/her client. He/she does the work together with his/her workers to get a job done. He/sheknows how to make people happy to work for him/her due his/her dynamic leadership.9.Systematic planning and monitoringAn entrepreneur plans for whatever he/she expects in the business. He/she does not leave thingsto luck. He/she plans by breaking large tasks down into small once and puts time limits againstthem. Since and entrepreneur knows what to expect at anytime he/she is able to change plansand strategies to achieve what he/she aims at.10.Persuasion and networkingAn entrepreneur acts to develop and maintain business contacts by establishing good workingrelationship. Uses deliberate strategies to influence others.Indian Entrepreneurs- role modelsDhirubhai AmbaniA proud son of this glorious state of Gujarat, and a man with long ties with this wonderful city ofAhmedabad, was the greatest example of this spirit of entrepreneurship! 5SSV/GSTC bhaskar
    • In a short span of less than 25 years, and without even the benefit of a formal education,Dhirubhai Ambani built Reliance, a first generation enterprise, into one of the world’s 200 mostprofitable companies!He started out in life, working as a mere petrol pump attendant in Aden, Yemen. He had notechnical knowledge, of any of the businesses he wished to create in India.He had just five hundred rupees in his pocket, a vision of what he wanted to achieve, an intrinsicfaith in the latent demand potential of the Indian markets, a belief in the capabilities of Indianpeople, and a burning desire to succeed!The end result? He created Reliance, a Rs. 75,000 crore enterprise, in a single lifetime!Azim H. PremjiIn a world where integrity purportedly counts for naught, Azim Hasham Premji symbolizes justthat. The 55-year-old Wipro chairman made international waves in 2000 ever since his groupbecame a Rs 3,500-crore empire with a market capitalization exceeding Rs 500,000 million! If anystargazer had been foolish enough to predict in 1966 that a 21-year-old Indian at StanfordUniversity would one day achieve all this, hed have been laughed out of business. At thatjuncture, Premji was forced to discontinue his engineering studies in the States due to theuntimely death of his father. Returning to India to take charge of a cooking oil company, the youthinfused new life into the familys traditional mindset and trade.Despite all the success, the media-shy Premji maintained a low profile, letting his work do all thetalking. Until early last year the media broke the story that Azim Premji had become the second-richest man in the world… In spite of his billions, however, he still travels economy class and staysin budget hotels. N.R.Narayana MurthyAn Indian IT chief whos really made it big without dropping his ethical precepts by the wayside isNagawara Ramarao Narayana Murthy, Chairman of Infosys. Born in 1946, Murthys father was aschoolteacher in Kolar district, Karnataka, India. A bright student, Murthy went on to acquire adegree in Electrical Engineering from Mysore University and later studied Computer Science at theIIT, Kanpur, India.The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company,along with six friends. There was a minor hitch, though-he didnt have any seed money. Luckily,like many Indian women who save secretly without their husbands knowledge, his wife Sudha-then an engineer with Tatas-had saved Rs 10,000. This was Murthys first big break.The decade until 1991 was a tough period when the couple lived in a one-room house. The secondbreak came in 1991 when Indian doors to liberalization were flung open… Murthy grabbed theopportunity with both hands and has never looked back ever since. Today, Infosys is the firstIndian company to be listed on the US NASDAQ.Simplicity, humility and maintaining a low profile are the hallmarks of this super-rich Bangalorean.And the man is principled to a fault. Murthys unprecedented wealth has catapulted him into thepublic glare. 6SSV/GSTC bhaskar
    • Entrepreneur vs InventorAn entrepreneur and an inventor both have their own financial rewards. Being an inventor takes alot of creativity and innovation to be able to come up with an idea that no one has thought of yet;a unique idea for a product or service that has never been introduced in the market; an idea thatcould be the next big thing. #An entrepreneur, meanwhile, is a business-minded person that can use existing products andservices and customize them according to the specific needs of target market of his business. Theentrepreneur will put his own brand onto the product or service and make it uniquely his own.*Being an inventor, your ideas could be of use to consumers in the commercial market.Companies would be willing to buy that idea and make it their own for reproduction. Ideas can belicensed or be rented by many companies. When you come up with novel idea, protection for theidea can then be filed in the right government agency. You can then look for a company that willbe interested in your idea and will greatly benefit from it.# Being an entrepreneur can also be very lucrative. An inventor can decide to market his own ideaif he has the resources to do so. Turning that idea into a reality and a business can be certainly achallenge. For the first time entrepreneur, a simple idea might be a good way to start because thiswould not cost that much money to create.# An entrepreneur is in control of all his ideas and the way in which he brings those ideas to lifeand markets them. An inventor, however, surrenders much of the control of the idea when it isunder license to a company. Running your own business requires complete control. You are incharge of every aspect of the product, from production, marketing to distribution. There arefinancial risks involved in venturing into a business. There is little risk in the licensing of an idea.One can only gain from it. There is no big investment required in being an inventor.It is really up to you if you will consider being an inventor or an entrepreneur. You have to weighall the advantages and disadvantages before you decide on the path to take. What is important isthat you will be able to convert your idea into something useful and at the same time reapfinancial rewards for it.Domestic Vs International Entrepreneurship:International entrepreneurship is defined in this study as the development of international newventures or start-ups that, from their inception, engage in international business, thus viewingtheir operating domain as international from the initial stages of the firms operation.*One hundred and eighty-eight new venture firms in the computer and communicationsequipment manufacturing industries are classified according to the percentage of their sales in the 7SSV/GSTC bhaskar
    • international market. Ventures with no sales derived from international activities are considered“domestic” new ventures, and ventures with sales from international activities comprising greaterthan 5% of total sales are considered “international” new ventures.*Whereas both the domestics and the internationals characterize domestic competition as beingrelatively intense, the international new ventures compete in industries with higher levels ofinternational competition. It is not clear from this research whether the new venture selects anindustry with a high degree of international competition and therefore responds with aninternational orientation or, because the new venture has an international orientation, itperceives or recognizes a higher degree of international competition.* Domestic new ventures are distinguished by their emphasis on a production expansion strategyand customer specialization strategy. The production specialization strategy consists of focusingon limited geographical markets, maintaining excess capacity, and pursuing forward integration.The customer specialization strategy incorporates the production of a specialty product that ispurchased infrequently. Thus, for both of the domestic strategies, a consistent “closeness”between the producer and consumer is implied. This may be an important basis underlining thenew ventures decision to compete in an exclusive domestic context. *** Unit-3Sources of new ideas for EntrepreneursEntrepreneurs frequently use the following sources of ideas:1. Consumers– the potential consumer should be the final focal point of ideas for theentrepreneurs. The attention to inputs from potential consumers can take the form of informallymonitoring potential ideas or needs or formally arranging for consumers to have an opportunity toexpress their concerns. Care needs to be taken to ensure that the new idea or the needsrepresents a large enough market to support a new venture.2. Existing Companies– with the help of an established formal methods potential entrepreneursand intrapreneurs can evaluate competitive products & services on the market which may result innew and more market appealing products and services.3. Distribution channels– members of the distribution channels are familiar with the needs of themarket and hence can prove to be excellent sources of new ideas. Not only do the channel 8SSV/GSTC bhaskar
    • members help in finding out unmet or partially met demands leading to new products andservices, they also help in marketing the offerings so developed.4. Government– it can be a source of new product ideas in two ways firstly, the patent office filescontain numerous product possibilities that can assist entrepreneurs in obtaining specific productinformation, and secondly, response to government regulations can come in the form of newproduct ideas.5. Research & development– Entrepreneur’s own R&D is the largest source of new idea. A formaland well-equipped research and development department enables the entrepreneur to conceiveand develop successful new product ideasCreative problem solving is the mental process of creating a solution to a problem. It is a specialform of problem solving in which the solution is independently created rather than learned withassistance.Creative problem solving always involves creativity.To qualify as creative problem solving the solution must either have value, clearly solve the statedproblem, or be appreciated by someone for whom the situation improves.The following formalized and well-known methods and processes combine various creativity andcreative-problem-solving techniques:  TRIZ, which is also known as Theory of Inventive Problem Solving (TIPS), was developed by Genrich Altshuller and his colleagues based on examining more than 200,000 patents. This method is designed to foster the creation and development of patentable inventions, but is also useful for creating non-product solutions.  Mind mapping is a creativity technique that both reframes the situation and fosters creativity.  Brainstorming is a group activity designed to increase the quantity of fresh ideas. Getting other people involved can help increase knowledge and understanding of the problem and help participants reframe the problem.  Edward de Bono has published numerous books that promote an approach to creative problem solving and creative thinking called lateral thinking.  The Creative Problem Solving Process (CPS) is a six-step method developed by Alex Osborn and Sid Parnes that alternates convergent and divergent thinking phases.The product development process 1. Idea Generation ; o Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, companys R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. 9SSV/GSTC bhaskar
    • o Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step). 2. Idea Screening o The object is to eliminate unsound concepts prior to devoting resources to them. o The screeners should ask several questions:  Will the customer in the target market benefit from the product?  What is the size and growth forecasts of the market segment/target market?  What is the current or expected competitive pressure for the product idea? 3. Concept Development and Testing o Develop the marketing and engineering details  Investigate intellectual property issues and search patent data bases  Who is the target market and who is the decision maker in the purchasing process?  What product features must the product incorporate?  What benefits will the product provide?  How will consumers react to the product?  How will the product be produced most cost effectively?  Prove feasibility through virtual computer aided rendering, and rapid prototyping  What will it cost to produce it? o Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling. 4. Business Analysis o Estimate likely selling price based upon competition and customer feedback o Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation o Estimate profitability and break-even point 5. Beta Testing and Market Testing o Produce a physical prototype or mock-up o Test the product (and its packaging) in typical usage situations o Conduct focus group customer interviews or introduce at trade show o Make adjustments where necessary o Produce an initial run of the product and sell it in a test market area to determine customer acceptance 6. Commercialization (often considered post-NPD) o Launch the product o Produce and place advertisements and other promotions o Fill the distribution pipeline with product o Critical path analysis is most useful at this stage *** UNIT-4A business plan is a formal statement of a set of business goals, the reasons why they are believedattainable, and the plan for reaching those goals. It may also contain background informationabout the organization or team attempting to reach those goals.. 10SSV/GSTC bhaskar
    • A business plan is a written description of your businesss future. Thats all there is to it--adocument that describes what you plan to do and how you plan to do it. If you jot down aparagraph on the back of an envelope describing your business strategy, youve written a plan, orat least the germ of a plan.Business plans can help perform a number of tasks for those who write and read them. Theyreused by investment-seeking entrepreneurs to convey their vision to potential investors. They mayalso be used by firms that are trying to attract key employees, prospect for new business, dealwith suppliers or simply to understand how to manage their companies better.So whats included in a business plan, and how do you put one together? Simply stated, a businessplan conveys your business goals, the strategies youll use to meet them, potential problems thatmay confront your business and ways to solve them, the organizational structure of your business(including titles and responsibilities), and finally, the amount of capital required to finance yourventure and keep it going until it breaks even.Sound impressive? It can be, if put together properly. A good business plan follows generallyaccepted guidelines for both form and content. There are three primary parts to a business plan: The first is the business concept, where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success. The second is the marketplace section, in which you describe and analyze potential customers: who and where they are, what makes them buy and so on. Here, you also describe the competition and how youll position yourself to beat it. Finally, the financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analyses. This part may require help from your accountant and a good spreadsheet software programThough business plans have many different presentation formats, business plans typically coverfive major content areas: Background information A marketing plan An operational plan A financial plan A discussion of the decision making criteria that should be used to approve the plan.Some of these content areas may be more or less important depending on the kind of businessplan. There is no fixed content for a business plan. Rather the content and format of the businessplan is determined by the goals and audience. A business plan should contain whateverinformation is needed to decide whether or not to pursue a goal. 11SSV/GSTC bhaskar
    • organizational plan: Process of identifying an organizations immediate and long-term objectives,and formulating and monitoring specific strategies to achieve them. It also entails staffing andresource allocation, and is one of the most important responsibilities of a management teamAn organizational plan is basically a “to do” list for an organization. It lists out the plan of work,programs, and organizational growth over a period of time - six months, a year, a five years. Theycan be pretty simple to create and use. Writing a plan can just mean getting a clear list of thetypes of work that need to be done, the tasks involved, who is responsible for them, and whenthey’ll be done. Below is an outline of the steps for creating an organizational plan.  Set Goals: make sure the goals for your work in each category are clear. Ask yourselves, “Where do we want to be with this work in a year?”.  Set Tasks: Next, discuss each goal and talk about all the tasks that need to be done to achieve that goal. At this point, they don’t have to be in order. Some will be more specific than others; the more specific the better, in general. You may not know how to reach some goals, yet; it’s fine to have a task list that looks like “Get fundraising training. Create fundraising plan and schedule. Carry out plan.”  Plan a Schedule: When all the tasks are listed, number them to show a general order— what comes first, what should happen at the same time, what comes last? Then draft a schedule for the tasks—either when they will be completed, or (for ongoing tasks) when they will begin. The goal is to set a schedule that is challenging but realistic.  Choose Responsibilities: Assign responsibilities by asking people to volunteer to be responsible for goals or tasks. A person’s name next to a task doesn’t mean that they’ll do it—just that they take responsibility for making sure it gets done  Support: Brainstorm other individuals and organizations that can provide support, assistance or advice in helping you carry out particular tasks or achieve general goals.  Follow through: Come up with a plan to check in, support and encourage people as they carry out their tasks. This may mean choosing one person to regularly check on the status of different tasks, or it may be part of reporting back at meetings.  Plan Evaluation: Finally, set a time to revisit the whole plan as a group to evaluate how things are going and revise assignments and schedules. This may be a few months or half a year in the futureA marketing plan may be part of an overall business plan.Solid marketing strategy is the foundation of a well-written marketing plan. While a marketingplan contains a list of actions, a marketing plan without a sound strategic foundation is of littleuse.The marketing objectives must usually be based, above all, on the organizations financialobjectives; converting these financial measurements into the related marketing measurements.Hewent on to explain his view of the role of "policies," with which strategy is most often confused:"Policies are rules or guidelines that express the limits within which action shouldoccur."Simplifying somewhat, marketing strategies can be seen as the means, or "game plan," bywhich marketing objectives will be achieved and, in the framework that we have chosen to use,are generally concerned with the 8 Ps. Examples are: 1. Price — The amount of money needed to buy products 12SSV/GSTC bhaskar
    • 2. Product — The actual product 3. Promotion (advertising)- Getting the product known 4. Placement — Where the product is sold 5. People — Represent the business 6. Physical environment — The ambiance, mood, or tone of the environment 7. Process — The Value-added services that differentiate the product from the competition (e.g. after-sales service, warranties) 8. Packaging — How the product will be protected *** UNIT-5Sources Of Finance/Capital:Most entrepreneurs find money through banks, private investors (friends, family and businessassociates), suppliers, customers or professional angel investors. The source you choosedetermines how you raise the money as well as how you pay it back. Heres a breakdown of youroptions: Banks are a straightforward source of funds. Many offer small-business loans if youve already started your business. Youll need a business plan and perhaps a personal guarantee. The funds are a loan, so you must generate enough cash to cover loan payments. Entrepreneurs often raise funds from friends and family. Treat these investors as real business relationships, however. Demonstrate how you will use the money and how you will repay it. Will you pay with interest over time? Will you issue stock and return the investment through an IPO or acquisition? Issuing stock is complicated--you may need a prospectus and SEC registrations, depending on how much youre raising. Finding friends and family who will invest in your start-up is straightforward: Start calling. Youre after high-net-worth investors who take personal referrals seriously. The best way to find them is through personal networking. Suppliers and customers may also back you. If your product complements a suppliers, they might invest--for example, if you distribute its music, a record label might want to invest. Be careful, though: Taking money from a supplier may prevent you from using that suppliers competitors. Strategic investors get their return in many forms: increased sales of their own products, stock sale of your company, advertising through your distribution channels, etc. These arrangements are rarely made just for a cash return, so the payback can take many forms. 13SSV/GSTC bhaskar
    • Private angel investors invest much like professional VC firms. You pitch them with a business plan and financing pitch. They invest for equity and expect a return--IPO, acquisition or stock buy-back--in three to seven years. Angels can be found through professional services like Garage.com, through angel groups like Common Angels.comor via networking. They often meet professional angels while working with their client companiesVenture capital (VC ) is financial capital provided to early-stage, high-potential, high risk, growthstartup companies. The venture capital fund makes money by owning equity in the companies itinvests in, which usually have a novel technology or business model in high technology industries,such as biotechnology, IT, software, etc. The typical venture capital investment occurs after theseed funding round as growth funding round (also referred to as Series A round) in the interest ofgenerating a return through an eventual realization event, such as an IPO or trade sale of thecompany. Venture capital is a subset of private equity. Therefore, all venture capital is privateequity, but not all private equity is venture capital.[1]In addition to angel investing and other seed funding options, venture capital is attractive for newcompanies with limited operating history that are too small to raise capital in the public marketsand have not reached the point where they are able to secure a bank loan or complete a debtoffering. In exchange for the high risk that venture capitalists assume by investing in smaller andless mature companies, venture capitalists usually get significant control over company decisions,in addition to a significant portion of the companys ownership .Scope Of Entrepreneurship Development In India  In India there is a dearth of quality people in industry, which demands high level of entrepreneurship development programme through out the country for the growth of Indian economy. The scope of entrepreneurship development in country like India is tremendous. Especially since there is widespread concern that the acceleration in GDP growth in the post reforms period has not been accompanied by a commensurate expansion in employment  We have all the requisite technical and knowledge base to take up the entrepreneurial challenge. The success of Indian entrepreneurs in Silicon Valley is evident as proof.  The only thing that is lacking is confidence and mental preparation. We are more of a reactive kind of a people. We need to get out of this and become more proactive What is more important than the skill and knowledge base is the courage to take the plunge. Ourproblem is we do not stretch ourselves. However, it is appreciative that the current generations ofyouth do not have hang-ups about the previous legacy and are willing to experiment. 14SSV/GSTC bhaskar
    • Initiatives To Develop Entrepreneurship :Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profitInstitute, set up in 1983, is sponsored by apex financial institutions - the IDBI Bank Ltd., IFCI Ltd.,ICICI Bank Ltd. and State Bank of India (SBI). The Government of Gujarat pledged twenty-threeacres of land on which stands the majestic and sprawling EDI campus.To pursue its mission further, EDI has helped set up twelve state-level exclusive entrepreneurshipdevelopment centres and institutes. One of the most satisfying achievements, however, wastaking entrepreneurship to a large number of schools, colleges, science and technologyinstitutions and management schools in several states by including entrepreneurship inputs intheir curricula. In view of EDI’s expertise in Entrepreneurship, the University Grants Commissionappointed the EDI as an expert agency to develop curriculum on Entrepreneurship.EDI’s success led by its strong sense of commitment culminated in recognition of its achievementsby the Government of India and various state governmentsAt present, there are various organizations at the country level & state level offering support toentrepreneurs in various ways. The Govt. of India & various State Govts. have been implementingvarious schemes & programmes aimed at nurturing entrepreneurship over last four decades. Forexample, MCED in Maharashtra provides systematic training, dissemination of the information &data regarding all aspects of entrepreneurship & conducting research in entrepreneurship. Thenthere are various Govt. sponsored scheme for the budding entrepreneurs.Recognizing the importance of the entrepreneur development in economic growth & employmentgeneration, Maharashtra Economic Development Council (MEDC) has identified entrepreneurialdevelopment as the one of the focus area for Council activities two years ago.Various Chambers of Commerce & apex institutions have started organizing seminars & workshopsto promote entrepreneurship. Incidentally, various management colleges have incorporatedentrepreneurship as part of their curriculum. This is indeed a good development. This shows thecommitment of the Govt. & the various organizations towards developing entrepreneurialqualities in the individuals.Promoting EntrepreneurshipIn India, where over 300 million people are living below the poverty line, it is simply impossible forany government to provide means of livelihood to everyone. Such situations surely demand for acontinuous effort from the society, where the people are encouraged to come up with theirentrepreneurial initiative.Encouragement at attitudinal and social levelIn the future, innovation and entrepreneurship needs to be encouraged at Social levels,Governmental levels and Managerial levels. There must be a social attitude that views innovationswith positive attitude and reject an innovation only when it is not acceptable.Encouragement at physical level 15SSV/GSTC bhaskar
    • At this level the encouragement will refer to two aspects necessary for entrepreneurship to thrive,one is the provision of venture capital and the other being infrastructural support. A real exampleis Export Processing Zones which are performing extremely well when given the support.What will be the qualities needed to succeed in this new world?First and foremost, we need the entrepreneurial spirit. Outside India, this spirit has been veryevident in the IT industry. 35% of the start-ups in Silicon Valley are by Indians. We need to havesimilar risk-taking ability within the country as well. Entrepreneurs need more than technical talent, more than business savvy. What they need is theindefatigable energy and incurable optimism that enables them to take the road less travelled andconvert their dreams into reality. It is a force that beckons an individual to pursue countlessopportunities. Entrepreneurs must learn how to overcome the risk of failure, or of vulnerability.The institutions can give them valuable insights and also support them in this.Future Perspective:Entrepreneurship as in the past will determine technical innovations, status of social institutionsand political management systems. On the basis of these factors, we can expect the future to be aplace where basic needs will remain and only the wants will change. India will overcome thebarriers of infrastructure; we will also visualize a strong manufacturing and agricultural sector.Entrepreneurs and not managers will be in demand, as only they will be equipped to find order inchaos. The focus of entrepreneurial energy will shift from achieving volume sales to fulfill a specificrequirement. Governance will become more transparent and will be willing to accept changesnecessary for growth and development. More autonomy will become the basis of all issues.The future will see Entrepreneurship as the key driver of economic development Technologicalobsolescence will become order of the day and there will be more space for leisure. Newbusinesses will be credited with providing variety of new jobs in the economy. New and smallbusiness will also develop more than their share of product and service innovation. At one end wewill see the technological upheavals in quick succession and on the other end there will be socialvalue systems and cultural issues undergoing slow but dynamic transformations@ please read the text for detail information 16SSV/GSTC bhaskar