Entreprenuership: An Overview

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Entreprenuership: An Overview

  1. 1. 1
  2. 2. LEARNING OBJECTIVES Entrepreneur Vs. Businessman Entrepreneurship Factors Motivating Entrepreneurship Entrepreneurship Process Availability of Resources Contribution towards Economy Education, Innovation and Entrepreneurship Problems of an Entrepreneur 21st Century Trend in Entrepreneurship Research Why Become an Entrepreneur ? 2 Some Cases
  3. 3. THE EVOLUTION OF ENTREPRENEURSHIP Entrepreneur is derived from the French entreprendre, meaning “to undertake.”  The entrepreneur is one who undertakes to organize, manage, and assume the risks of a business.  Although no single definition of entrepreneur exists and no one profile can represent today‟s entrepreneur, research is providing an increasingly sharper focus on the subject. 3
  4. 4. ENTREPRENEUR“The initiative and voluntary act of managing risk and assuming responsibility in transforming creativity and innovation to unique product for the purpose of providing effective and efficient solutions to consumers, while achieving long-term profitability and contributing growth to the economy as a 4 whole. ”
  5. 5. QUALITIES Initiative Voluntarism Risk Management and Responsibility Creativity and Innovation Passion to win Providing Effective Consumer Solution Long Term Profitability Contributing Growth To Economy 5
  6. 6. ENTREPRENEUR VS. BUSINESSMAN 6
  7. 7. ENTREPRENEURS VS MANAGERS High Inventor EntrepreneurCreativity andInnovation Promoter Manager, administrator Low General management skills, business know-how, networks High
  8. 8. ENTREPRENEURSHIP“Entrepreneurship is an act of being an entrepreneur which can be precisely defined as "one who undertakes innovation, finance and business acumen in an order to transform innovations into economic goods”It is a mind set that is: Opportunity focused Innovative Growth oriented 8
  9. 9. FACTORS MOTIVATING ENTREPRENEURSHIP Personal attributes:-1. Higher internal locus of control2. Desire for financial success3. Desire to achieve self-realization4. Joy of innovation5. Risk Tolerance 9
  10. 10.  Environmental Factors:-1. Local, Regional, or National attitudes towards entrepreneurship2. Social and cultural pressures for or against risk taking and entrepreneurship3. Access to entrepreneurial role models4. Responsibilities to family and community5. General Govt. facilities 10
  11. 11. ENTREPRENEURIAL PROCESS:- Identifying opportunity Assess and acquire necessary resources Execution -producing the product or service -Marketing -designing and building a company -responding to the environment 11
  12. 12. AVAILABILITY OF EARLY STAGE FINANCE Self financing -own saving -family business -borrowed from family and friends Bank finance Angel investor Venture capital Private equity 12
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  14. 14. BANK FINANCE Traditional bank financing- Adequate collateral to judge credit-worthiness. Difficult at the start-up stage Comparatively easy at the growth stage. 14
  15. 15. ANGEL INVESTOR Angel investors are typically high-net-worth individuals (HNIs) who have often been successful entrepreneurs themselves. Institutional seed funds They invest in new-idea enterprises and help to bring these ideas to market take significant risks 15
  16. 16. VENTURE CAPITAL Venture capital funding provides funds for early stage companies once they have passed the seed stage and report some returns. developing, launching and expanding new products or services. lesser degrees of risk invest more money. 16
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  18. 18. PRIVATE EQUITY Private Equity (PE) funds are among the largest sources of funding for enterprises. Requiring significantly large funds for expansion and growth. 18
  19. 19. ENCOURAGING ENTREPRENEURSHIP IN INDIA A transparent rating system for SMEs formed, where the cost of credit is linked to the credit rating of the enterprise. Credit Information Bureau (India) Limited (CIBIL), Dun & Bradstreet Information Services India Private Limited (D&B), SIDBI, and a few other banks have together set up SMERA (SME Rating Agency) Banks have also reported reduction in interest rate by 25 to 100 basis points for „SMERA rated companies. 19
  20. 20. MICRO SMALL AND MEDIUM ENTERPRISESDEVELOPMENT ACT (MSME ACT): Key aim is to facilitate access to finance and incentivize efficient use of funds by entrepreneurs. Bring about greater growth in numbers and overall competitiveness. 20
  21. 21. MUTUAL CREDIT GUARANTEE First MGAs appeared in Europe in the 1940s In India, the Indian Institute of Rural Development (IIRD), with support from UNIDO, launched the Mutual Credit Guarantee Fund Scheme (MCGFS) in 2000. To help hand block printing textile clusters & overcome the difficulty in accessing credit arising from the inability to offer traditional forms of collateral. ALEAP Credit Guarantee Association (ACGA) agreement with Andhra Bank and CGTSI for implementation of MCGS in the state of Andhra Pradesh . 21
  22. 22. CONTRIBUTION TOWARDS ECONOMY New combination of means of production, New industry formation, Increasing opportunities for employment, Additional wealth creation, Introduction and dissemination of new methods & technology, Overall economic growth. 22
  23. 23. The Entrepreneurial EcosystemFacilitators IdeaGovernment Risk DeliverablesFamily aptitude Jobs Skills EntrepreneursEducation Wealth FinanceFinancecommunity Space 23
  24. 24. FIGURE 1.2: ENTREPRENEURSHIP ANDTECHNOLOGICAL CHANGE 24
  25. 25. AN INTEGRATIVE MODEL OF ENTREPRENEURIALINPUTS AND OUTCOMES 25
  26. 26. Education, Innovation and Entrepreneurship Education is indispensable for skill development and fundamental to Entrepreneurship and innovation. Innovation catalyzes Entrepreneurship by providing ideas that can be converted into wealth (through goods and services). An entrepreneurial culture drives creation of wealth from knowledge and generates impetus for further innovation. 26
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  28. 28. EDUCATION--SKILL DEVELOPMENT & F.E--CREATING INNOVATION Higher and Professional Education Vocational Education & Training- (Skill Development)  96% in Korea  75% in Germany  80% in Japan  68% in United Kingdom  05% in India 28
  29. 29. PROBLEM OF AN ENTREPRENEUR Infrastructure Legal system Labour laws Corruptions Information Taxation Licensing 29
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  32. 32. 21ST CENTURY TRENDS IN ENTREPRENEURSHIP Venture Financing Corporate Social Entrepreneurship Entrepreneurship Trends in Entrepreneurial Women Cognition Entrepreneurship Entrepreneurs Research Global Entrepreneurial Entrepreneurial Education Movement Family Businesses 32
  33. 33. You will be an entrepreneur.. orWork for an entrepreneur…..? 33
  34. 34. WHY BECOME ENTREPRENEUR……..? Be your own Boss. To create jobs than search for a job To get financial reward To involve in total process of the business Prestige 34
  35. 35. STEVE JOBS  Founded Apple Computers- 1976  Former Chairman-cum-CEO  Pioneer of the PC Revolution  Product- i pod, i phone, i pad, PCs 35
  36. 36. BABA RAMDEV Founder- Divya Yoga Trust & Patanjali yoga trust Product- Daily consumer products Ayurvedic Medicines Brand- Patanjali, Divya 36
  37. 37. DR. ACHYUTA SAMANTA Founder- KIIT & KIIS KIIT- Established 1992 Awarded- Deemed university status in 2004 Awards-Nominated for UK-India Business Awards-2009-Asia‟s Best Social Entrepreneur - 2010 by the World HRD Congress-The Times of India Orissa Icon 2011 Awards (Social Service) 37
  38. 38. SHAHRUKH KHAN AS AN ENTREPRENEURo Founded RED CHILLIES ENTERTAINMENT in 2002 .o Now the turn over of this company in 2011-12 financial year is 150+ croreo Successful movies made under this banner are:- Chalte chalte(2003) Main hoon na(2004) Paheli (2005) Om Shanti Om (2007) Ra.one(2011) 38
  39. 39. BIBLIOGRAFY www.google.com National Knowledge Commission Survey Entrepreneur Magazine 39
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