Entrepreneurship development assignment


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Entrepreneurship development assignment

  1. 1. Entrepreneurship DevelopmentINTRODUCTION:An entrepreneur is one of the important segments of economic growth. Basicallyhe/she is a person responsible for setting up a business or an enterprise. In fact he/sheis one who has the initiative, skill for innovation and who looks for highachievements. He/she is a catalytic agent of change and works for the good of people.He/she puts up new green field projects that create wealth, open up many employmentopportunities and leads to the growth of other sectors.The word „entrepreneur‟ is derived from the French verb “entreprendre”. It means “toundertake”. In the early 16th century, the Frenchmen who organized and led militaryexpeditions were referred to as “entrepreneurs”, around 1700 A.D., the term was usedfor architects and contractors of public works.The term “entrepreneur” was applied to business initially by the French economist,Caltillon, in the 18th century; designate a dealer who purchases the means ofproduction for combining them into marketable products. Another Frenchman J.B.Say, expanded Cantillon‟s ideas and conceptualized the entrepreneur as an organizerof a business firm, central to its distributive and production functions. Beyondstressing the entrepreneur‟s importance to the business, Say did little with hisentrepreneurial analysis.New Concept of Entrepreneur – The term “entrepreneur” has been defined as one whodetects and evaluates a new situation in his environment and directs the making ofsuch adjustments in the economic system as he/she deems necessary. He/sheconceives of an industrial enterprise for the purpose, displays considerable initiative,grit and determination in bringing his project to fruition and in this process, performsone or more of him/her following.• Perceives opportunities for profitable investment• Explores the prospects of starting such a manufacturing enterprise• Obtains necessary industrial licenses• Arranges initial capital• Provides personal guarantees to the financial institutions• Promises to meet the shortfalls in the capital and• Supplies technical know-how.Prepared by: Milan Padariya Page 1
  2. 2. Entrepreneurship DevelopmentCHARACTERISTICS OF AN ENTREPRENEUR: A successful entrepreneur must be a person with technical competence,initiative, good judgement, intelligence, leadership qualities, self confidence, energy,attitude, creativeness, fairness, honesty, tactfulness and emotional stability.Mental ability: Mental ability consists of intelligence and creative thinking. Anentrepreneur must be reasonably intelligent and should have creative thinking andmust be able to engage in the analysis of various problems and situations in order todeal with them. The entrepreneur should anticipate changes and must be able to studythe various situation under which decision have to be made.Clear objectives: An entrepreneur should have a clear objectives as to the exactnature of the goods to be produced and subsidiary activitie to be undertaken. Asuccessful entrepreneur may also have the objective to establish the products, to makeprofit or to render social service.Business secrecy: An entrepreneur must be able to guard business secrets. Leakage ofbusiness secrets to trade competitors is a serious matter which should be carefullyguarded against by an entrepreneur. An entrepreneur should be able to make a properselection of his assistants.Human relations ability: The most important personality traits contributing to thesuccess of an entrepreneur are emotional stability, personal relations, considerationand tactfulness. An entrepreneur must maintain good relations with his customers ifhe is to establish relations that will encourage them to continue to patronize hisbusiness. He must also maintain good relations with his employees if he is to motivatethem to perform their jobs at a high level of efficiency. An entrepreneur whomaintains good human relations with customers, employees, suppliers, creditors andthe community is much more likely to succeed in his business than the individual whodoes not practice good human relations. Human relations ability can also be referredto as tactfulness.Communication ability: Communication ability is the ability to communicateeffectively. Good communication also means that both the sender and the receiverunderstand each other and are being understood. An entrepreneur who can effectivelycommunicate with customers, employees, suppliers and creditors will be more likelyto succeed than the entrepreneur who does not.Technical knowledge: An entrepreneur must have a reasonable level of technicalknowledge. Technical knowledge is the one ability that most people are able toacquire if they try hard enough.An entrepreneur who has a high level of administrative ability, mental ability, humanrelation ability, communication ability and technical knowledge stands a much betterchance of success than his counterpart who possesses low levels of these basicqualities.Prepared by: Milan Padariya Page 2
  3. 3. Entrepreneurship Development ADMINISTRATI VE ABILITY TECHNICAL ORGANISATIO KNOWLEDGE N SKILL EFFECTIVE INTELLIGENC COMMUNICATI E ON PUBLIC ENTREP CREATIVITY RELATIONS RENEUR EMOTIONAL INNOVATION STABILITY SOUND CLEAR KNOWLEDGE OBJECTIVE BUSINESS SECRECYSome key characteristics of a successful entrepreneur are:Motivator: An entrepreneur must build a team, keep it motivated and provide anenvironment for individual growth and career development.Self confidence: Entrepreneurs must have belief in themselves and the ability toachieve their goals.Long term involvement: An entrepreneur must be committed to the project with atime horizon of five to seven years. No ninety- day wonders are allowed.High energy level: Success of an entrepreneur demands the ability to work longhours for sustained periods of time.Prepared by: Milan Padariya Page 3
  4. 4. Entrepreneurship DevelopmentPersistent problem solver: An entrepreneur must have an intense desire to completea task or solve a problem. Creativity is an essential ingredient.Initiative: An entrepreneur must have initiative accepting personal responsibility foractions and above all make good use of resource.Goal setter: An entrepreneur must be able to set challenging but realistic goals.Modern risk taker: An entrepreneur must be a moderate risk taker and learn fromany failures. These personal traits go a long way in making an entrepreneur a successfulman or woman.CLASSIFICATION: The entrepreneur have been broadly classified according to the types of business,use of professional skill, motivation, growth and stages of development are discussed belowEntrepreneur according to the type of business:  Business entrepreneur: Business entrepreneurs are individuals who conceive an idea for a new product or service and then create a business to materialize their idea into reality.  Trading entrepreneur: Trading entrepreneur is one who undertakes trading activities and is not concerned with the manufacturing work.  Industrial entrepreneur: Industrial entrepreneur is essentially a manufacturer who identifies the potential needs of customers and tailors a product or service to meet the marketing needs.  Corporate entrepreneur: Corporate entrepreneur is a person who demonstrates his innovative skill in organizing and managing corporate undertaking.  Agricultural entrepreneur: Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activities as raising and marketing of crops, fertilizers and other inputs of agriculture.Entrepreneur in technology:Prepared by: Milan Padariya Page 4
  5. 5. Entrepreneurship Development  Technical entrepreneur: A technical entrepreneur is essentially compared to a “craftman”.He concentrates more on production than on marketing. He demonstrates his innovative capabilities in matter of production of goods and rendering of services.  Non- technical entrepreneur: Non- technical entrepreneurs are those who are not concerned with the technical aspects of the product in which they deal. They are concerned only with developing alternative marketing and distribution strategies to promote their business.  Professional entrepreneur: Professional entrepreneur is a person who is interested is establishing a business but does not have interest in managing or operating it once it is established. Such an entrepreneur is dynamic and he conceive new ideas to develop alternative projects.Entrepreneur and Motivation:  Pure Entrepreneur: A pure entrepreneur is an individual who is motivated by psychological and economic rewards.  Induced entrepreneur: Induced entrepreneur is one who is induced to take up an entrepreneurial task due to the policy measures of the government that provides assistance, incentives, concessions and necessary overhead facilities to start a venture.  Motivated entrepreneur: New entrepreneurs are motivated by the desire for self- fulfillment.  Spontaneous entrepreneur: These entrepreneurs start their business by their natural talents.Growth and entrepreneur:  Growth entrepreneur: Growth entrepreneurs are those who necessarily take up a high growth industry which has substantial growth prospects.  Super growth entrepreneur: Super growth entrepreneurs are those who have shown enormous growth of performance in their venture.Prepared by: Milan Padariya Page 5
  6. 6. Entrepreneurship DevelopmentEntrepreneur and stages of development  First generation entrepreneur: A first generation entrepreneur is one who starts an industrial unit by innovative skill. He is essentially an innovator, combining different technologies to produce a marketable product or service.  Classical entrepreneur: A classical entrepreneur is one who is concerned with the customer and marketing needs through the development of a self-supporting venture.This is the basic of Entrepreneurship. Now Problem is Who is the best person forInterview…Generally two types of the Entrepreneur I can select… 1. Local Entrepreneur 2. Very Famous EntrepreneurBut I selected Local Entrepreneur…Why???The entire famous entrepreneurs are first Local Entrepreneur after that they becamevery famous.So Study of Local Entrepreneur is good for me.I Selected 4 Stage of Entrepreneurship and Formed Questions on it. 1. The entrepreneur before starting a venture 2. The Entrepreneur at the time of starting the business 3. The entrepreneur as he or she grew the venture 4. The entrepreneur today and tomorrowBefore that I would like to introduce a youth Entrepreneur Mr. Vipul Yadav…Mr. Vipul Yadav completed his B.Sc. in Information Technology and started his ownbusiness. He initially started with small web solution forum called Depasser InfotechPvt Ltd.Mr. Vipul Yadav has 5 other solution forum powered by Depasser Infotech.Prepared by: Milan Padariya Page 6
  7. 7. Entrepreneurship DevelopmentThese Solutions are as follow… 1. Herd MS 2. Google Funda 3. Edu Edge 4. Financial Virtue 5. Peeping KidMr. Vipul Yadav also started 4 E-Commerce websites including, 1. www.giftpunch.com 2. www.teemper.com 3. www.giftyaar.com 4. www.thedifferentstore.comBefore Discuss Questions and Answer I would like to brief the businesses associatedwith Mr. Vipul Yadav.Depasser Infotech Pvt Ltd.It is related to web solution. Depasser provided web based solution in India.Official Website: http://www.depasserinfotech.com/About Depasser:We are a small but diverse bunch of web developers, graphic designersand creative writers happy to design websites and develop webapplications. We make good conversations too!Prepared by: Milan Padariya Page 7
  8. 8. Entrepreneurship DevelopmentWeb-Design:A good business, needs and equally good face. Check out the faces wevegiven to some businesses. Psst.. We use CSS3, JQuery, HTML5, PHP.Magento, Drupal.Web Application:Managing data and multiple businesses tasks can get difficult. We make iteasy for you to manage them! And yes, we work on PHP, Ruby, Python.Prepared by: Milan Padariya Page 8
  9. 9. Entrepreneurship DevelopmentOn other hand Depasser Infotech powers other 5 web solution/web application 1. Google Funda: Official Website: http://www.googlefunda.com/Prepared by: Milan Padariya Page 9
  10. 10. Entrepreneurship Development 2. Financial VirtueOfficial Website: http://www.financialvirtue.com/Financial VirtueWe are independently spirited, fiercely unconventional people who believe in doingthings differently. We value, "Values & Virtue".FINANCIAL VIRTUE is a Financial Advisory and Distribution firm launched in2003 with the aim of making investing simpler, more understandable and profitable,leading to true Financial Freedom.We at FINANCIAL VIRTUE have well qualified, trained and experienced team ofassociate partners, professionals and staffs from the fields of Accounts & Taxation,Law, Financial Planning, Securities & Capital Market, Banking and Insurance (bothLife and Non Life).We offer personalised advisory services for saving & investment, financial riskmanagement, tax, Law & Financial Planning, to individual investors, corporatehouses, institutional investors, Non-Resident Indians (NRIs) and High NetworthIndividuals, among others. We offer complete range of financial products andservices.We have expertise in analyzing different financial products; we carry out in-depthstudy considering various parameters on a regular basis in order to satisfy and achieveany kind of financial goal and need. We help in identifying & understanding onespersonalised needs and also in developing a portfolio across different asset classesPrepared by: Milan Padariya Page 10
  11. 11. Entrepreneurship Developmentcommensurate to his needs. Our experts will give you a feel on the various assetclasses and explain to you the risk associated with each in a simple and lucid manner.Our advisory services are backed by periodic valuation reports of different asset classand regular relevant information through newsletters, mailers, e-mails, smss, etc.At FINANCIAL VIRTUE our prime concern is to help our client attain peace of mindon the financial front. We follow a philosophy which focuses on doing the right thingsrather than merely doing things right, we also believe that monetary rewards do nottake precedence over an ethical approach to our work.OUR VISIONTo become a credible financial services company, continuously educating our clientand assisting them in creating abundant wealth.OUR MISSIONIn the spirit of fulfilling our Vision we strive to: Serve our client with high ethical standards; Provide quality service, not just restricted to genuine advice but creating value too,hence orchestrating customer delight. Respect each customer by our deeds & not just by words, thereby creatingreputation built on performance. Provide 360o (degree) solutions to each customer to fulfill their todays needs andtomorrows dreams, above all ensuring them a sense of safety, security & trust; Compensate our Partners, Associates and Employees with fair remunerations andmeaningful benefits while providing them with the knowledge & tools needed toencourage personal & professional growth.Prepared by: Milan Padariya Page 11
  12. 12. Entrepreneurship Development 3. Peeping Kid Official Website: http://www.peepingkid.com/Prepared by: Milan Padariya Page 12
  13. 13. Entrepreneurship DevelopmentPrepared by: Milan Padariya Page 13
  14. 14. Entrepreneurship Development 4. Edu EdgeOfficial Website: http://www.eduedgeindia.com/Prepared by: Milan Padariya Page 14
  15. 15. Entrepreneurship Development 5. Herd MS Official Website: http://www.herdms.com/Prepared by: Milan Padariya Page 15
  16. 16. Entrepreneurship Development Also Mr. Vipul Yadav designed own 4 websites… 1. Gift PunchOfficial Website: http://www.giftpunch.com/ 2. Teemper LifestyleOfficial Website: http://www.teemper.com/Prepared by: Milan Padariya Page 16
  17. 17. Entrepreneurship Development 3. The Different StoreOfficial Website: http://www.thedifferentstore.com/Prepared by: Milan Padariya Page 17
  18. 18. Entrepreneurship Development 4. Gift YaarOfficial Website: http://www.giftyaar.com/Prepared by: Milan Padariya Page 18
  19. 19. Entrepreneurship DevelopmentNow discuss the questions and answers. I asked total 24 questions to Mr. Vipul Yadavas per the stage of Entrepreneurship. A. The entrepreneur before starting a venture5 questions were asked under this stage. 1. What is your education background? ANS: I have completed my B.Sc. in Information Technology in 2009 from Mumbai University, Maharashtra. 2. What previous work experience do you have before starting the venture? ANS: Actually I am new in this. No previous Experience I had, but I have idea about the IT sector and Found good Scope in this. And also during my graduation I worked in one mobile shop. My job was to repair damaged mobile. As per my thinking it is not necessary to having such an experience to start own business. Just you have gut feelings and dedication. 3. Did you have any role models when growing up? ANS: If you asking me about very famous personality as a role model then No. I have no any specific role model to follow. But if your meaning is of familiar person as role model then Yes, My Idol my teacher is my role model. 4. Did you do entrepreneurial things as a youth? ANS: I am young today; I am just 26 years old. So whatever I did that are during my youth. Actually I liked mobile phone very much when I was Child and thinking about mobile every time. In fact I want to something different in telecommunication software. 5. When did you know you wanted to be an entrepreneur? ANS: During my graduation. At that time I did not know the term “Entrepreneur”. Only I knew is wanted to become different.Prepared by: Milan Padariya Page 19
  20. 20. Entrepreneurship Development B. The Entrepreneur at the time of starting the business 8 Question were asked in this stage. 1. What was your primary motivation for starting a business? What were the factors that led you to start the venture? ANS: My Primary motivation is my Interest in IT sector. I want to be achieving some different stage in IT sector. Factors are not fixed. If you want to be a good entrepreneur then don‟t depend on some selected factors. At the start of venture I focused on some Factors like: Interest Population of India Mobile Users in India Competitors No of MNCs One thing I want to tell you is about MNCs In Indian market there are thousands of MNCs running this is not good thing about India. One story I want to tell you but I will not declare the name of person and name of company. Minister of Telecommunication in India collaborate with one Indian Company for Land line. Only cost of 150 Rs Company provided phones. At that time someone not earn commission so he withdrawn the contract from Indian Company and gave the contract to Foreign Company. That company charged 650 Rs per one piece. That was not Ethical thing… So I want to produce some cheaper but quality products for India. 2. What were your goals at the time you started the venture? ANS: My primary goal was Cheaper and Quality product. Give the web solution to the companies. And other goal was to start the Affordable and unique E- commerce hub. 3. What sort of beliefs did you have (eg. About employees, partners, banks, etc)?Prepared by: Milan Padariya Page 20
  21. 21. Entrepreneurship Development ANS: About Employees: Self-employment is best in business. But for more production and service employees are required but only thing is dedication. Partner should be trust worthy and hard working. If you climb four steps then your partner should there at fifth step to welcome you. According to me banks are your official partner. If you want to get good loan from bank then your business plan should be perfect and most profitable. My meaning is not that you make fake profitable business plan. 4. Did you establish a lifestyle business, a rapid growth business, or what?, Did your growth orientation change over time? ANS: Yes, I established rapid growth business. Yes of course my growth orientation changes over time. Every business should have this type of philosophy. 5. What sort of resources (not just financial) did you have when you started the venture? What sort of network did you have? Were there any special creative things you did to come up with the needed resources? ANS: Besides the financial thing I needed some good partner. Which I discussed in earlier question. In this field network is necessary. I have network of family and friend initially. But I also focused on some business enterprises. Yes I came up with some creative thing and you can see creativity from our home page of Depasser Infotech. Also you can see some creative product that we sell under the our E-Commerce website. 6. How concerned were you with control when starting the venture? Explore the entrepreneur’s need for control (of the venture, of people, of decision making) ANS: It is good question. Of Course Control is necessary in any venture or project. First I decided to control my web solution forum alone but after started E-Commerce I just worried about controlling so I was going for searching some employees and Partner. I am very weak in marketing so I really need marketing people for my business even at this time I also need. In E-Commerce hub I needed some people who are very good in Logistic or Transportation. 7. Did you write a business plan? ANS: No, I did not write business plan. In fact I was not aware with some management and finance philosophy. But in my future project and businessPrepared by: Milan Padariya Page 21
  22. 22. Entrepreneurship Development planning I will go through business plan or someone will help me in this. As a management student you can join me and do financial planning for me. 8. How long was a typical work day and work week when you first started your venture? ANS: At the starting of venture I did lots of hard work. Even present days I do hard work. But it is necessary to do hard work at the time of starting. Not just hard work but sustainable hard work. Only thing is believe in believe in hard work.Prepared by: Milan Padariya Page 22
  23. 23. Entrepreneurship Development C. The entrepreneur as he or she grew the venture 6 questions were asked in this stage: 1. How have your goals and values changed since starting the venture? ANS: General Rule in business in you should not change your goal and value in entire life of your business. But I think in different way. You can change your goal as per the generation and scenario changed. You can change values of your business as per societal value changes. 2. Did your risk orientation change as the venture grew? ANS: Yes, I feel more risk now than I felt when I started this journey. This is because of Competition increase in IT sector. And as per my thinking India is the best place for the business because of population. 3. Did the typical work week change as the venture grew? ANS: Yes of course as time changes you should change the pattern of the work and time of work. 4. Did the assumptions you made when you first started the business prove to be wrong? ANS: No, I did hard work behind my project and now I feel that no assumption of mine is wrong. 5. What key mistakes did you make along the way? ANS: I did only one mistake and that is selection of partner. I will tell you my partner is not fraud but he has no faith on me and my work. 6. Were there some critical times when the business nearly failed? ANS: Yes, When no one was with me and when my partner left me. But I did not lose my courage.Prepared by: Milan Padariya Page 23
  24. 24. Entrepreneurship Development D. The entrepreneur today and tomorrow 4 questions were asked. 1. What would you do differently if you had to do it all over again? ANS: Only this is make combination of two mobile and make hybrid from these. Shocked? Just joking. When I was started this venture I thought about that. One thing I want to do is Purchase the hardware from the china and Installed software that I make and form different and quality product which will be different from other products. 2. What key personal characteristics do you see in yourself that were especially important for your success? ANS: Very Interesting question and funny also. Funny in the sense you tell me that praise yourself but in indirect way. Hard working nature Mental Ability Dedication Creativity Interpersonal Skills Knowledge about the business Competitor watch Self Confidence Technical Knowledge And of course Idea Generation 3. What are your plans for the future? ANS: In fact so many plans are running here and there in my mind. One is merging the hardware (Imported) and software (My own) and making unique mobile which will cheaper but with quality. Develop my own software and form E-Commerce hub.Prepared by: Milan Padariya Page 24
  25. 25. Entrepreneurship Development 4. What advice based on your experience would you give to others? ANS: This is very tough question. Advises are: Put all your effort on your own project or business Pay full attention in financial value Make society feel proud Give your full dedication Understand the value of your customer and employees Don‟t Forget Society That‟s it……. Me: Thank you Sir Mr. Vipul Yadav: You are most welcome.Prepared by: Milan Padariya Page 25