Entrepreneurship is a purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandise profit by production or distribution of economic goods.
2. Entrepreneurship
Entrepreneurship is a purposeful activity
of an individual or a group of associated
individuals, undertaken to initiate,
maintain or aggrandise profit by
production or distribution of economic
goods.
3. Entrepreneurial Individual
Has concept, vision, dream
Adapts concept to reflect realities in environment,
scans environment
Assesses risks versus rewards
Mobilizes resources
Able to convert dream into products and people within
an organizational context
Able to champion the concept to a wide range of
publics and partners
Persevere in overcoming obstacles
Optimizes profits
4. An Integrative Model of Entrepreneurial Inputs and Outcomes
Inputs Outcomes
Environmental
Opportunities
Entrepreneurial
individuals
An organizational
context
Unique business
concepts
Resources
The entrepreneurial
Process
• Identify opportunity
• Assess and acquire
necessary
resources
• Implementation
• A going venture
• Value
• New products,
services
• Processes
• Profits and/or
personal
benefit
• Technologies
• Employment,
asset, and
revenue
growth
Entrepreneurial
creation Intensity (EI)
Number of events (and)
degree of
entrepreneurship
Innovation Risk
taking
Proactive
ness
Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship: An Input-Output
Perspective,”, SAM advanced Management Journal 59, no.1 (Winter 1994): 21-31
5. Entrepreneurial Personality-
Psychological
1. Motivation – driven by range of factors
Necessity (survival)
Opportunity (proactivity)
Dissatisfaction (can’t stand job)
Curiosity (What if…?)
Material gain (We could make a killing…)
Achievement oriented more than anything else
Driven by the task, challenge, opportunity
Money as a by-product, but scorecard
2. Strong belief in themselves- believe they can change their
environments
6. …Personality
3. Calculated risk-takers (financial, career, family &
social, psychic)
Attempt to estimate likelihood and magnitude of key risk
factors and manage or mitigate them through good planning
or decisions
4. High tolerance of ambiguity
Process can be loose, messy, shift directions
Prize their independence – self-motivated, self-reliant,
prefer autonomy, have perseverance
7. Situation-based Characteristics
Willingness and ability to assume and manage
risks
More critical with new-to-the-world products
Political skills important in large corporate
settings
Adaptability and tenacity are bigger factors in
turbulent environments
8. Dark Side Traits
Excessive need for control
Tendency to micromanage
Suspicion – others will steal my idea
Impatience
Need for applause
Defensive attitude
9. Entrepreneurial Risks
Sinking the Boat Risk
Missing the Boat Risk
TR=f (SBR, MBR)
Missing the boat risk
curve
Total Risk
Planning Time
Sinking the boat risk curve
10. Risks at Startup
Risk in Opportunity Identification
Risk in Commercial Viability
Risk in Investment
Risk in Financing
11. Rewards of Entrepreneurship
Financial
A successful business has the potential to make good profits
and provide substantial wealth for the entrepreneur.
Social and Emotional
There is seldom a higher reward than making a positive
difference to another person's life.
The successful business provides jobs, pride and financial
security for its employees.
Independence
Financial success increases the independence and potential of
Growth Rewards.
15. CONSTRAINTS TO EMERGENCE
OF
INDIGENOUS ENTREPRENEURS
o Socio-cultural factors – job orientation?
o Low motivation and confidence
o Inadequate information on procedures,
fundraising
o Inadequate knowledge on:
- Market Assessment
- Enterprise Management
17. ENTREPRENEURSHIP
DEVELOPMENT PROCESS
• Identify, select, train, counsel and support potential
entrepreneurs for creating new enterprises
• Facilitate growth of existing entrepreneurs and groom
successors
• Contribute towards developing entrepreneurial culture
• Facilitate creation of a conducive environment for
emergence and growth of enterprises
• Intervene for developing enterprises- technology and
management (market, quality, finance, human resources)
19. (1) Early socialization
Creating literature
Short duration vacation camps
Visits to industries
Interactions with entrepreneurs/
achievers from different fields
Competitions, debates
Success stories, Projection of
Business Role Models
20. (2) Emergence (Start-up)
Entrepreneurship education
Entrepreneurship training
Business Plan teaching/ training
Entrepreneurship orientation
Technical Training
Management Skills Development
Technology Demonstrations
Trade Fairs
Incubation
21. (3) Survival
Accounting systems
Marketing and product promotion
Managing Human resources
Seminars and workshops on
technology, quality, operations,
machine safety
Systems development
ICT and MIS
22. (4) Growth
Export marketing
R&D, Innovation, Value Addition
Diversification
Cluster development
Finance- IPO
Corporatization
Internationalization
Brand building
Succession planning