LOCUS OF CONTROLLocus of control is an extent to which individuals believe that they can control events that affect them.
• Individuals with a high internal locus of control believe that events in their life derive primarily from their own actions;• for example, if a person with an internal locus of control does not perform as well as they wanted to on a test, they would blame it on lack of preparedness on their part.• If they performed well on a test, they would attribute this to ability to study.• If a person with a high external locus of control does poorly on a test, they might attribute this to the difficulty of the test questions.• If they performed well on a test, they might think the teacher was lenient or that they were lucky
Do you think someone else is pulling your strings?
“ I do not believe in destiny – the word “fail” does not exist in my dictionary. I never fail, because I never stopped trying. I life, you get what you negotiate. Any women has the capacity to do what I did- it does not matter what you want, what matters is how badly you want it.” - Shahnaz Hussain The emotional driving force behind the self-employed person is a desire for greater control over his or her life, career, and destiny.
Checklist for Feelings about Control1. Do you think it is important for everyone to like you?2. Do you believe that you can stop yourself from catching a cold?3. Are some people just born lucky?4. My plans hardly ever work out, so planning makes me unhappy.5. Do you know that if you decide to do something, you will do it and nothing can stop you.6. I do not have enough control over the direction my life is taking.7. Peoples misfortunes result from the mistakes they make8. When I get up in front of a group, myself-control flies out the window9. Do you believe that when bad things are going to happen, they just are going to happen no matter what you try to do to stop them?10. Even though it is scary to try something new, are you kind who tries it?
• Answer YES to the questions 2, 5,7 & 10 indicates that you possess the internal control aspect of being an entrepreneur• Answer YES to the questions 1,3,4,6,8 & 9 indicates that you are more geared towards external controls, which may inhibit your entrepreneurial tendencies.
Risk - Taking The risk of walking away from secure career path to createsomething new. The risk of taking yourself and your family into an unfamiliar stormof stress and uncertainty.The risk that youve miscalculated an opportunity, or your owninternal resources as you plunge into a new venture“In this business, by the time you realize youre in trouble,its too late to save yourself. Unless youre running scared allthe time, youre gone” - Bill Gates
A common misperception about entrepreneurs is that entrepreneurs are wild risk-takers. Entrepreneurs do take risks, but only calculated ones. Those who are afraid to take risks, live a very conservative life, and retire not much better off than when they began. Those who take bad risks and suffer the consequences. Those who plan well, take calculated risks, and win. “The person who risks nothing, does nothing, has nothing, is nothing and becomes nothing. He may avoid suffering and sorrow but he simply cannot learn and feel and change and grow and love and live” - Leo. F. Buscaglia
Need for Independence Being one’s own boss An entrepreneur must be able to work and thinkindependently He doesnt need to be told what and when to do. He possess the self-discipline and independence toreach conclusions on his own and act on them.
Checklist for feeling about Independence1. I hate to go for shopping alone2. If my friends won’t go to a movie I want to see, I will go alone3. I am afraid to be different4. I often need to ask other peoples opinion before I decide on important things5. I never tend to copy when my teacher is not around6. I can finish my work perfectly without any deadline
Answer YES to the questions 1,3 & 4 indicates that you do not have strong need for Independence Answer YES to the questions 2,5 & 6 indicates that you have in you a strong need for Independence.
Need for AchievementMcClelland says that People motivated by achievement• The capacity to set high but obtainable goals• They are not gamblers. The prefer to work on the problem rather than leave the outcome to chance• They get bigger “kick” out of winning or solving a difficult problem than they get from any money or praise they receive.• They desire for job – relevant feedback ( How am I doing? ) rather than for attitudinal feedback (How well do you like me?)
• Challenge of originality - A good entrepreneur feels the incentive to offer a new service/product that no one else has offered before. That’s the same challenge an artist feels on every new canvas, or every musician feels when composing a new work.• High level of excitement - Entrepreneurs love the continuous challenges of a start-up, and the satisfaction of solving them. Some are so high on this life, that they hate the fact that they have to "waste" part of their life in sleep!
Leader by Example• They not only lead themselves through self- motivation but they are also skilled at leading others.• They know the importance of teamwork and they understand the need to appreciate others, support them and reward them accordingly.Grateful• Being grateful for what we have opens us to receive morePassionate about learning• They are quick to learn from their mistakes.
Beat the competition and discover yourself• Competition drives innovation, and innovation drives competition. The cycle never stops.• But the best part is that ultimately entrepreneurship isn’t a race against others but an opportunity to discover one’s potential• Video – Parthasarathy of Mind Tree
Childhood Family Environment• Birth Order - Firstborn effectPersonality traits that are common in first-borns:• Confident• Born Leader• Organized• Eager to Please• Likes to Avoid Trouble
Did you know...• That almost all of the U.S. Presidents were either the first-born child or the first-born son in their families?
• Parents Occupations – Self employed or entrepreneurial parents“ My father was so consumed by the venture he started and provided such a strong example, it never occurred to me to go to work for anyone else”.
• Relationship with parents – Parents of entrepreneurs need to be supportive and encourage independence, achievement and responsibility.• This supportive relationship of the parents (Particularly the father) appears to be the most important for female entrepreneurs.• They tend to grow up in middle-to upper- class environments, where families are likely to be child centered and tend to be similar to their fathers in personality.
Education• Although a formal education is not necessary for starting a new business – as is reflected in the success of such high school dropouts as Henry Ford, Dhirubhai Ambani – it does provide a good background, particularly when it is related to the field of the venture.• The ability to communicate clearly with both the written and the spoken word is important in any entrepreneurial activity.• http://smiileyfacexo.hubpages.com/question/179350/is-it-a-good-idea-to-drop- out-of-university-to-focus-on-being-an-entrepreneur
Age• Entrepreneurial age is the age of the entrepreneur reflected in the experience. Entrepreneurial experience is one of the best predictors of success.• In chronological age, most entrepreneurs start their careers between ages 22 and 55.• Earlier starts in an entrepreneurial career seem to be better than later ones.• Generally, male entrepreneurs start their first venture in their early 30s, while women tend to do so in their middle 30s
Work History• Dissatisfaction with ones job often motivates the launching of a new venture.• Previous technical and industry experience is also important once the decision to start a business is made.• Experience in the following areas is particularly important: financing; product or service development; manufacturing; development of distribution channels; and preparation of a marketing plan.• As the venture becomes established, managerial experience and skills become more important.• Entrepreneurial experience becomes increasingly important as the complexity of the venture increases
Motivation• What causes an entrepreneur to take all risk and launch a new venture?• Solving a problem you are so passionate about that even if the solution doesn’t result in wealth, you are still thrilled you “solved” it. A fun surprise? If you really do solve a big problem, wealth will almost always follow anyway.
“ I’ll be the first to admit that money was often a motivator for me. However, it was never the primary motivator. I did not lay awake at night thinking about money. I laid awake at night thinking about mycustomers, my employees, and – most importantly – how to make my product or service that much better. I wanted everyone to try my product or service, and I wanted them to love it as I did.” - Richard Branson.
Role Models According to a recent survey by AskMen, Who do todays men look up to as role models? its entrepreneurs! Out of over 2,000 surveyed men, more then a third (35%) identified famous entrepreneurs as their role models. The article explains the trend with two main things: men consider wealth and freedom key to happiness. Entrepreneurship can offer both, especially if you succeed. Mens eagerness to start companies has been trending upward since 2001.
Support Systems• Moral- support network – Individuals who give psychological support to an entrepreneur.• Professional – Support Network – Individuals who help the entrepreneur in business activities.• In addition to encouragement, the entrepreneur needs advice and counsel throughout the establishment of the new venture.• This can be obtained from mentor, Trade associations, experts such as consultants, accountants, Lawyers, etc.• Affiliations developed with individuals through shared hobbies, clubs, school alumni are excellent source of referrals.
Women Entrepreneurship in IndiaEarlier there were 3 Ks• Kitchen• Kids• KnittingThen came 3 Ps• Powder• Pappad• PicklesAt present there are 3 Es• Electronics• Energy• Engineering
Sumati MorarjeeThe First women of Indian Shipping Industry
Sulajja Firodia Motwani – Neelam Dhawan head ofjoint MD of Kinetic Motor Microsoft’s Indian operations
• Sulajja Firodia Motwani - joint MD of Kinetic Motor, which manufactures two-wheelers, various auto components, elevators, escalators and auto parking systems.• Neelam Dhawan - head of Microsoft’s Indian operations.• Kiran Mazumdar Shaw - Biocon.• Priya Paul - president of the Hotel Association of India and leads the Indian team at the World Travel and Tourism Council• Preetha Reddy – Apollo hospitals• Shobana Bhartia (of the famous Birla family) – The Vice President of Hindustan Times• Jyoti Naik - President of Lijjat Papad
Male Vs Female Entrepreneurs Characteristics Male Entrepreneurs Female EntrepreneursDeparture Point Drive to control their own Change in Personal circumstances, destiny Job frustrationSources of funds Bank financing, Loan from Personal assets and savings friends, Family, etc… Back ground Age : 25-35 Age: 35-45Support Groups Lawyers , accountants, Spouses, Close friends, Women’s consultants and Business professional group associationsType of Business Manufacturing , high- Service related- educational technology fields services, consulting Personal Energetic, Goal-oriented Energetic, Goal-oriented and Characteristics and independent independent Men are more confident and less flexible and tolerant than women
Minority Entrepreneurship• Minority - Numerically smaller than the rest of population• Types - Racial or ethnic, Religious, gender (Transgender), Age ( Children and Senior citizens – Economically non-active group), People with disabilities.• Of U.S. business, 5.8% were owned by Hispanic Americans, 4.4% by Asian Americans, 4% by African Americans and about 1% by American Indians.• This 15.8% minority share of U.S. Business is an increase from 6.8% share in 1982, 9.3% in 1987, 12.5% in 1992 and 14.6% share in 1997.
IN INDIA• Entrepreneurial traditions in India finds its root in the trading practices within Vaishya families• Aggarwals and Guptas in the north, Chettiars and Nadars in the south, Parsees, Gujarathees, Jains, Muslim Khojas and Menons in the West.• It is belived that children from such communities are taught the tricks of the trade and business since their childhood.
• Different ethnic groups seem to have a very different bargaining strategy in terms of the final prices they agree upon and prices they offer as the starting point of the negotiation Ethnic groups Average Price they offer Tamilians 4.50 Andhrites 4.72 Marwaries 3.96• Andhra Wholesalers ask for 10% higher upfront payment and Marwaris 5% lesser upfront payment when compared to Tamilians
Kalki: Indias first transgender entrepreneurhttp://www.rediff.com/getahead/slide-show/slide-show-1-achievers-meet-kalki- india-s-first-transgender-entrepreneur/20121030.htm
Entrepreneurs Vs Inventors• An inventor develops a new product or service, but may not bring it to market.• An entrepreneur takes the risk of bringing together resources to bring a good or service to market in hopes of making a profit. The entrepreneur may not have been the inventor• Inventors really enjoy the process of inventing and not implementing.• He measures his achievement by the number of inventions developed and the number of patents granted.• The only ideas that were interesting to him were the ones that he could commercialize. - Thomas Edison• http://www.econedlink.org/lessons/index.php?lid=62&type=student
• Entrepreneur need to define his market, sell, collect, figure out how to scale the production, hire, manage people, fire people, and so on.• Inventors aren’t interested or aren’t very good at building a business, and entrepreneurs aren’t usually good scientists. These people need to find each other, and can jointly make a great team for a new start-up.
• Who invented the airplane?• Did they start an airline for consumers?• Who invented potato chips?• Who brought them to market in other places?
ActivitySoda-Pop• Who was the inventor of soda ?• Was he the inventor of Coca Cola?• Was John Pemberton the one who brought it to market asCoca Cola ? (Browse through Coca Cola history by clicking on the "Heritage Timeline• On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola® syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass