Introductory Entrepreneurship

INTRODUCTORY
ENTREPRENEURSHIP
Subject: Entrepreneurship and
Enterprise Development
Dhruba Nepal

• The BOSS !!!!
• The Business Owner
• The Risk Taker
• One Who Starts A
New Business
• The Resourceful Guy
BBS Fourth Year, Koteshwar Multiple
Campus

French Word Origin
Campus

Entrepreneurship
According to George Glider –
From “The Spirit of the Enterprise”
“It is making the World forever NEW.
It is taking AGGRESSIVE Actions.”
According to Joseph Schumpeter
“It is destroying the old order
and creating new ones.”
Campus

The Entrepreneurial Mindset
Opportunity Seizing
Opportunity Screening
Opportunity Seeking
Campus

-In a Business Sense,
it is an Idea that has
Commercial
Potential.
-Something you can make money with,
develop a business around it,
or create value with it.
Campus

• Mastery Of Self1
• Mastery of Opportunity2
• Mastery of The
Enterprise3
MASTERIES FOR AN ENTREPRENEUR
Campus

Traits of An Entrepreneur: D’s
• Dream
• Determined
• Details
• Dollar
(Rupees/Money)
• Decision
• Doer
• Distribute
• Destiny
• Devotion
• Dedication
Campus

Traits of An Entrepreneur: F’s
• Founder
• Faith
• Focused
• Frugal
• Fast
• Fun
• Flexible
• Forever Improving
Campus

FORMS OF
ENTREPRENEURSHIP
Social Entrepreneurship
Business Entrepreneurship
Techno Entrepreneurship
Campus

Compelling Reasons Why Do We
Need Entrepreneurs???
• 90% of the World’s Jobs are Created By
Entrepreneurs.
• Problem Solvers
• Source of New Products and Innovation.
• It’s the Entrepreneurs- not the Central Bank
- that keeps the ECONOMY moving.
Campus

THREE COMPETENCIES OF THE COMPLETE
ENTREPRENEUR
Originator
Operator OrganizerIMPLEMENTER
Campus

Entrepreneur's roles and
responsibilities
Towards :
 Customers : quality products at fair price;
Society/community : job creation and
environmental conservation/protection.
Suppliers : paying in time as agreed.
Staff : promote welfare of staffs.
Competitors : Observe business ethics with
competitors.
Country: pay taxes in time and correct amount.
Campus

Entrepreneurial process
Process of creating and managing a new
enterprise.
Steps
1. Identify and evaluate opportunity.
Opportunity is favorable condition.
- Should have significant market size.
- Real and perceived value should be high
- Suitable in terms of risk and return
- Match personal capacity (knowledge and skill)
and goals,
- Should have competitive advantage.
Campus

Entrepreneurial process
2. Develop business plan
Business plan is future direction and it
comprises all aspects of business.
3. Determine and obtain resource requirement
4. Manage the enterprise
Campus

Importance of entrepreneurship
How?
1. Formation of capital/resource mobilization
2. Fulfilling people’s needs
3. Employment generation
4. Balanced regional development
5. Promotion of export
6. Substituting import
7. Contributing to national economy
8. Distribution of wealth
9. Contribution to government by paying taxes
You may add more ….
Campus

Entrepreneurial venture
Mainly three types by nature:
1. Salary substitute firm– Just to do anything
because an entrepreneur does not have
salary-paying job. Not much innovative.
2. Life-style firm – Largely based on habits or
hobbies.
3. Entrepreneurial firm – Produce and serve
new product or service, e.g. Google,
Facebook, e-Midas, Chandragiri Ropeway
Campus

Types of Entrepreneurs
A. Based on innovation
i) Innovating :Introducing new product or new
methods or new methods of production.
ii) Imitating or adaptive: Imitate other’s
success in business.
iii) Fabian: Display great caution and doubt in
experimenting something. When something
becomes successful, then only adopt.
Campus

B. Based on behavior
i) Solo-entrepreneur : Do the business alone, if
needed with few staff.
ii) Active and sleeping : Like active and sleeping
partner.
iii) Inventor : Likes to start new idea in business.
iv) Challenger: Likes to do business only there is
challenge.
v) Buyer : Buy business which is already doing well.
vi) Life timer : Always gets engaged in business.
Campus

C. Based on background
i) Woman entrepreneur
ii) Minority : Minority people run the business.
Govt has decided ethnic groups having less
than 0.5 percent population are minority for
election purpose. The are 98 groups in Nepal.
iii) Immigrant : Entreprenur who comes from other
country or place and start.
Campus

C. Based on background
iii) Part-time entrepreneur
iv) Home-based
iii) Family business : Chaudhary, Khetan, Hulas
etc.
iv) Corpreneur – Couple (husband and wife)
runs the business.
v) Intrapreneur/corporate entrepreneur
Campus

D. Scale of business
i) Small scale
ii) Medium scale
iii) Large scale
See Industrial Enterprise Act 2073
Campus

Types of Entrepreneur
E. Based on nature of output
i) Industrial
ii) Service
iii) Trade
iv) Social service (not-for-profit)
Campus

Why to become an entrepreneur ?
a. To be own boss
- Those who have trouble accepting other’s
authority.
- To benefit from own idea and hard work to
oneself.
b. To pursue own idea
- If own idea is unheard in a big company.
- Hobby, leisure activity encourage to take initiative.
c. To pursue financial rewards
Campus

Myths of Entrepreneurs
Myth 1 : Entrepreneurs are born, not made.
Truth: Entrepreneurs can be developed by study, coaching,
counseling and providing conducive environment.
Myth 2 : Entrepreneurs are doers, not thinkers.
Truth: It is combination of thinking and doing.
Myth 3
Entrepreneurs are always inventors.
Truth: Not necessarily. Entrepreneur may turn invention into
a good business package.
Campus

Myth 4 : Entrepreneurs are academic and social
misfit.
Truth: Entrepreneur is considered a hero – socially,
economically and academically. No longer a
misfit, but viewed as a professional role model.
Myth 5 : Entrepreneurs must fit the profile.
Truth: Compiling standard entrepreneurial profile
is difficult. However, in India contemporary
studies show different entrepreneurs:
business, social, educational, technical etc.
Campus

Myth 6 : All entrepreneurs need is money.
Truth: For entrepreneurs with innovative idea
can mobilize resources .
Myth 7 : All entrepreneurs need a luck.
Truth: Luck happens when preparation meets
opportunity. Luck strikes only when
preparation, determination, desire,
knowledge and innovativeness.
Campus

Myth 8 : Entrepreneurship is unstructured and chaotic.
Truth: As many activities are to be done, an
entrepreneur is messy. But, a successful and busy
person does things planned and organized manner.
Myth 9 : Most entrepreneurial initiatives fail.
Truth: As per Kirchoff’s study, 50% of new ventures
failed, but entrepreneurs learned something from
failure and became stronger next time. Learning
from failure is ‘Corridor Principle’.
Campus

Myth 10 : Entrepreneurs are extreme risk
takers … the gamblers.
Truth: Entrepreneurs take gambling, but
calculated risk. Most successful
entrepreneurs work hard through planning
and preparation – to minimize the risk
involved and better control the destiny of
their vision.
Campus

Difference between Manager and Entrepreneur
Basis Manager Entrepreneur
Motive Provide service to already
established enterprise.
Start or develop own venture.
Status Employee Owner
Risk bearing Does not bear risk Bears risk
Role Implementer of the
innovation of the
enterprise
Innovator – exploitation of
opportunities
Reward Salary, bonus Profit
Qualification Academic degree and
experience
Risk taker, innovator, organizer
Emphasis Internal environment
management
External environment
Campus

Difference between Entrepreneur and Owner
Basis Entrepreneur Owner
Meaning Organizes and manages an
enterprise
Invests money in enterprise.
Risk Take risks Does not take much risks.
Status quo Does not prefer status quo. May prefer status quo until
profit is assured.
Experimentati
on
Prefers experimentation. Does not prefer
experimentation
Nature of
business
Normally wishes to run
large business
Normally carries small
business
Expansion Always expand business
prone to expand.
Not very prone to expand
business.
Campus

Small Business vs Entrepreneurship
Basis Small Business Entrepreneurship
Dealing Deal with established
products and services
Provides innovating offering
Aim Slow growth, low
productivity
Rapid growth with high
productivity.
Nature of risk Take normally known/low
risk
Deal with high and unknown
risks.
Focus Limited area Large area
Ability Lack analytical and
predictive ability
Have analytical and predictive
ability.
Reward Less profit, reward High profit, reward.
Campus

Functions of Entrepreneurs
Can be categorized in four categories.
1. Managerial functions
2. Entrepreneurial functions
3. Promotional functions
4. Commercial functions.
Campus

1. Entrepreneurial functions
i) Risk bearing –
Uncertainty in different aspects cause risk.
Entrepreneur takes risk.
ii) Organizing/coordinating – Organizing
people, land, capital – different resources.
iii) Innovating –
Introducing new product, opening to new
market, discovering new source of supply of
raw materials, new form of organization.
Campus

2. Managerial functions
i) Planning
ii) Organizing
iii) Leading
iv) Controlling
Campus

3. Promotional functions
i) Identification and selection of business
idea – opportunity scanning and
identification
ii) Preparation of business plan
iii) Requirement for finance
Campus

4. Commercial functions
i) Production/manufacturing
ii) Marketing – 4 Ps (product, price,
promotion and physical distribution) plus 3
more Ps (packaging, people and process)
iii) Accounting – recording, classifying,
summarizing of transactions, preparing final
accounts, analysing and interpreting results.
Campus

Differences between entrepreneurial
and managerial decision making
Basis Entrepreneurial decision Managerial decision
Strategic
orientation
Driven by opportunity for
the new or existing ventures.
Driven by controlled resources
Nature of
decisions
Revolutionary Evolutionary
Stages of
resource
acquisition
Multiple stages of decisions
with minimal exposure
Single stage of decisions with
complete commitment of
resources.
Speed of
decision
Quick as owner Slow because employee, so go
with process.
Philosophy of
decision
For value creation For smooth operation
Culture Search for opportunities Search for opportunities restricted
by controlled resources.
Campus

Corporate and entrepreneurial
culture
Culture is a dynamic phenomenon
that surrounds us at all times, being
constantly enacted and created by our
interactions with others and shaped by
leadership behavior, and a set of structures,
routines, rules, and norms that guide and
constrain behavior.
- Edgar Schein, Organizational Culture and
Leadership, p. 1
Campus

culture
Corporate culture
Values, norms, beliefs and behavior shared in
common in an organization. It is rooted in
organization’s goals, strategies, structure
and approaches.
Campus

culture
Corporate culture
Characteristics
1. Attempts to turn values into practice.
2. Puts high emphasis on human resources.
3. Emphasizes outcome.
4. Built around teamwork.
Campus

culture
Entrepreneurial/Intrapreneurial culture
Culture that creates entre/intra-preneurial
environment which constantly motivates and
encourages employees to innovate, create and
take risks. It emphasizes pursuing change,
innovation, risk taking and exploring/exploiting
opportunities. It promotes growth,
performance, and success of the business.
Campus

culture
Characteristics
1. New ideas encouraged.
2. Experimentation, trial and error
encouraged.
3. Failures allowed.
4. Resources are available and accessible.
5. Multi-disciplinary teamwork promoted.
Campus

culture
Characteristics
6. Establishment of longtime horizon for evaluating
success of each program or venture.
7. A volunteer program which cannot be forced.
8. Appropriate reward system is built.
9. Availability of sponsorship.
10. Top management support.
Campus

Intrapreneurial leadership
characteristics
1. Understands the environment
2. Visionary
3. Flexible and creates options to management
4. Encourages teamwork
5. Encourages open discussion
6. Builds coalition and supportive environment
7. Persistence
Campus

Actions and behaviors that encourage and
discourage creativity
At organizational level
Inhibitors
• Failure to hire creative people
• Maintaining an organizational culture that
stifles
• Retaining people in the same job for years
• Promoting a mentality suggesting best
solutions are already known.
Campus

At organizational level
Facilitator
• Supporting and highlighting creativity’s
importance in all parts of the firm,
• Overtly rewarding creative idea and works,
• Investing resources to enhance creativity,
• Hiring people with different skills and view
points compared to current employees.
Campus

At individual/supervisory level
Inhibitors
• Being pessimistic, judgmental or critical,
• Punishing people for failed ideas,
• Insisting on precision and certainty early in
creative process,
• Being inattentive, acting distant, and remaining
silent when employees want to discuss new
ideas.
Campus

At individual/supervisory level
Facilitator
• Listening attentively new ideas and supporting it,
• Treating employees as equals in terms of
idea/opinion generation,
• Speculating , being open and building on other’s
ideas,
• Protecting people who make honest mistake and
commit to learning from them.
Campus

Entrepreneurial feeling
- is the awareness factors that motivate a
person towards entrepreneurship.
1. Locus of control : Sense of control that a
person has over life.
Internal – Person believes s/he can make
own destiny and control relevant factors.
External – Person believes external factors
affect destiny and relevant factors are
controlled.
Campus

Entrepreneurial feeling
2. Feeling about independence
- Intense feeling of being own boss.
3. Need for achievement
- Fulfilling own need through own sole effort.
4. Risk taking
Campus

Campus

Introductory Entrepreneurship

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Introductory Entrepreneurship

Similar to Introductory Entrepreneurship (20)

Recently uploaded

Recently uploaded (20)

Introductory Entrepreneurship