Entrepreneurship Learnings Asst. Prof. Anoop Sharma on EDP Interventions
What is Entrepreneurship? The Process of Bearing Risk of ‘Running a Business’
Who is an Entrepreneur? A person who takes the risk of converting a new idea into reality.A vision-driven individual who assumessignificant personal and financial risk to start or expand a business.
Have a Look@ ‘The Builder of Indian Industry’ :The ‘Iconic Entrepreneur’, we ever had..:Shee Jehangir Ratanji Dadabhoy Tata
Customary Definition of ‘Entrepreneurship’• Entrepreneurship: a way of thinking, reasoning, and acting that is: – Opportunity obsessed – Holistic in approach – and leadership balanced (This definition of entrepreneurship has evolved over the past two decades from research at Babson College and the Harvard Business School and has recently been enhanced by Stephen Spinelli, Jr., and John H. Muller, Jr., Term Chair at Babson College.)
Now Answer this.. Entrepreneurs: Born or Made?Is there inborn talent required?Assume that the answer is ‘YES’:– then we can identify the main characteristics– if we have them, fine - no others need to apply!– we could start spotting talent in kindergarten– we could "stream" these people– we could discourage people without these talents
Who is an Entrepreneur?Situational more than personality Flexibility Ability Age Distribution for Starting Company 20 25 30 35 40 45 Age
Who is an Entrepreneur? (Contd..) Manager’s Opportunities Future Goals Change Status Quo Satisfied Possible Entrepreneur managerPerceivedCapability Frustrated Classic Blocked manager bureaucrat
Requirements to be an entrepreneurInnovation,CreativityRisk TakingOrganization
An Admiring ‘Bitter-Fact’…In India, where over 30 crores people areliving below the poverty line, it is simplyimpossible for any government to providemeans of livelihood to everyone.
Burchs Entrep.Personality Traits1.A desire to achieve Conquer problems, create successful venture1.Hard work Their workload is very hard to match1.Nurturing quality2.Acceptance of responsibility Morally, legally and mentally accountable1.Reward orientation Want be rewarded for their efforts
Contd..6.Optimism Anything is possible6.Orientation to excellence Pride in something first class6.Organization They are wholly "take charge" people6.Profit orientation Profit primarily a gauge of performance
Another Iconic & Benchmarking Entrepreneur of theNation.. Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends.
After doing his matriculation at the age of 16,Dhirubhai moved to Aden, Yemen. He workedthere as a gas-station attendant, and as a clerkin an oil company. He returned to India in1958 with Rs 50,000 and set up a textiletrading company.
Assisted by his two sons, Mukesh and Anil, DhiruBhai Ambani built Indias largest private sectorcompany, Reliance India Limited, from a scratch. Over time his business has diversified into a corespecialisation in petrochemicals with additionalinterests in telecommunications, informationtechnology, energy, power, retail, textiles,infrastructure services, capital markets, and logistics.
Another Iconic & BenchmarkingEntrepreneur of the Nation.. An Indian IT chief whos really made it big without dropping his ethical precepts by the wayside is Nagawara Ramarao Narayana Murthy, Chairman of Infosys. Born in 1946, Murthys father was a schoolteacher in Kolar district, Karnataka, India
A bright student, Murthy went on to acquire a degree in Electrical Engineering from Mysore University and later studied Computer Science at the IIT-Kanpur, India.Narayan Murthy began his career with Patni Computer Systems in Pune.In 1981, Narayana Murthy founded Infosys with six other software professionals.
The Infosys legend beganin 1981 when NarayanaMurthy dreamt of forminghis own company, alongwith six friends. There wasa minor hitch, though-hedidnt have any seed money. Luckly, like many Indianwomen who save secretlywithout their husbandsknowledge, his wife Sudha-then an engineer with Tatas-had saved Rs 10,000. Thiswas Murthys first big break.
AWARDS RECEIVED by Muthy’s Umpire: In June 2000, Asia week magazine featured him in a list of Asias 50 Most Powerful People. In 2001, Narayana Murthy was named by TIME/CNN as one of the 25 most influential global executives. He was the first recipient of the Indo-French Forum Medal (2003) and was voted the World Entrepreneur of the Year - 2003 by Ernst and Young.
CONTD… The Economist ranked Narayana Murthy eighth on the list of the 15 most admired global leaders (2005) and Narayan Murthy also topped the Economic Times Corporate Dossier list of Indias most powerful CEOs for two consecutive years - 2004 and 2005. In December 2005, Narayana Murthy was voted as the 7th most admired CEO/Chairman in the world in a global study conducted by Burson-Marsteller with the Economist Intelligence Unit . The list included 14 others with distinguished names such as Bill Gates, Steve Jobs and Warren Buffett.
CONTD… In 2008, he was awarded the ‘Padma Vibhushan’, a second highest civilian award by India and Légion dhonneur, the highest civilian award awarded by France. Murthy also holds over 26 honorary doctorates from universities across the world.
REASONS FOR SUCCESS OF INVEST IN WELL UNDERSTOOD , PROVEN PRODUCTS AND NOT JUST R&D. WHEN DEALING WITH INVESTORS, ALWAYS UNDER- PROMISE AND OVER-DELIVER. GIVE STAKEHOLDERS BAD NEWS PROACTIVELY AND EARLY. HAS A HEALTHY SENSE OF PARANOIA AND RESPECT FOR THE COMPETITION. SPEED, IMAGINATION AND EXCELLENCE. LEADERS IN THE MAKING.
The Entrepreneurial Process• It is opportunity/market driven• It is driven by a lead entrepreneur and an entrepreneurial team• It is resource parsimonious and creative• It depends on the fit and balance among these• It is integrated and holistic
We Asked Murthy :What is that one moment that made youthink of starting Infosys?It was a Story long back..In 1974, when I was holed up ina small 8 x 8 ft. room in a railway station at Nis, a bordertown between what was the then Yugoslavia (currentlySerbia) and Bulgaria.I realized that the best solution for countries like India tosolve the problem of poverty was entrepreneurship andcapitalism. I realized how communist rule punished itscitizens without reason and just based on biases.
I still remember the words of the guards at the railwaystation who released me after 3.5 days of detention thatI was from a friendly country called India and that waswhy they were letting me go! Then I got on to the train,a goods train, going from Nis to Istanbul. It was a 21-hour journey, and I had not eaten for 5-6 days beforethat.Throughout the journey, I was mulling over thisinjustice, the system of communism, and the problemof poverty in India,that is when I decided to become anentrepreneur and a capitalist.I had read a little about various economic philosophiesby then and realized that the only way countries likeIndia could overcome poverty was through the creationof jobs, which required entrepreneurship.
How did you select your co-founders? And what was each ones role in building Infosys?Ans: My colleagues were very young with hardly a year or two of experience in software engineering. Therefore, I selected people on the basis of compatibility of values Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K Dinesh, and Ashok Arora had a very similar value system.
They were all from the middle class andthey believed in deferred gratification. Theywere ready to run the business honestly andethically; they were ready to work veryhard; and they were satisfied with very lowsalaries in the beginning.Even today, our salaries are the lowest inthe industry. They believed in team spirit.Team spirit is about making sure the otherpersons in the team do not fail.
They brought complementary values. Forexample, Raghavan was the peoplesperson. He looked like he understoodhuman resources.Nandan looked like he was a sales-orientedperson, I thought I knew a bit of strategyand finance, Kris liked technology.Shibulal and Dinesh seemed like goodproject managers. Ashok Arora was a finedesigner.
Who selected the name Infosys and on what basiswas it chosen? Ans: When we decided to start the company on December 29, 1980, I chose Mr. NS Raghavan, Mr. Kris Gopalakrishnan, and Mr. Nandan Nilekani to work with me. I asked them to think of a name. Generally, I am a very impatient person. So, I told them that they had to come back to me with a name in 48 hours else I would choose a name. For some reason, they did not come back with a name. Therefore, I chose the name Infosys because we wanted to be in the business of designing information systems. So, Infosys is an acronym for information systems.
What will be the qualities needed to succeed in this new world? new world?at will be First and foremost, we need the entrepreneurial the qualities needed to succeed in spirit.this new world? has been very evident in Outside India, this spirit the IT industry. 35% of the start-ups in Silicon Valley are by Indians. We need to have similar risk-taking ability within the country as well.
Qualities of an Entrepreneur:1. Common Sense:2. Specialised Knowledge of the Field:3. Self Confidence:4. Ability to Get Things Done:5. Creativity:6. Leadership:
Qualities of an Entrepreneur:7. Communication Skill:8. Willingness to take Risk:9. Willingness to Accept Criticism:10. Self Motivation and11. Determination :