Module 1 the entrepreneurial perspective


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Module 1 the entrepreneurial perspective

  1. 1. MODULE - ONE
  2. 2. Learning Objectives…. <ul><li>Nature and importance of Entrepreneurs </li></ul><ul><li>Entrepreneurships – schools of thought </li></ul><ul><li>Entrepreneurial decision process </li></ul><ul><li>New venture creation – types of start ups </li></ul><ul><li>Role of Entrepreneurship in Economic Development </li></ul><ul><li>Intrapreneurship </li></ul><ul><li>Future of Entrepreneurship </li></ul>
  3. 3. Decoding Entrepreneurship…… <ul><li>Entrepreneurship —a way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach, and leadership balanced </li></ul>
  4. 4. Entrepreneurship Results <ul><li>Value: </li></ul><ul><ul><li>Creation </li></ul></ul><ul><ul><li>Enhancement </li></ul></ul><ul><ul><li>Realization </li></ul></ul><ul><ul><li>Renewal </li></ul></ul><ul><li>For: </li></ul><ul><ul><li>Owners </li></ul></ul><ul><ul><li>Stakeholders </li></ul></ul><ul><ul><li>All Participants </li></ul></ul>
  5. 5. Entrepreneurial Requirements <ul><li>Willingness to take risks </li></ul><ul><ul><li>Personal </li></ul></ul><ul><ul><li>Financial </li></ul></ul><ul><ul><li>Calculated </li></ul></ul><ul><li>Shift the odds of success </li></ul><ul><li>Balancing risks with rewards </li></ul>
  6. 6. Entrepreneurship is NOT just “Start-Ups Only” <ul><li>It includes companies and organizations </li></ul><ul><ul><li>All types </li></ul></ul><ul><ul><li>At all stages </li></ul></ul><ul><li>Can occur and fail to occur </li></ul><ul><ul><li>In old and new firms </li></ul></ul><ul><ul><li>Small and large firms </li></ul></ul><ul><ul><li>Fast and slow growing firms </li></ul></ul><ul><ul><li>Private, not-for-profit, and public sectors </li></ul></ul><ul><ul><li>All geographic points </li></ul></ul><ul><ul><li>All stages of a nation’s development </li></ul></ul>
  7. 7. Metaphors for Entrepreneurship <ul><li>Improvisational </li></ul><ul><li>Quick </li></ul><ul><li>Clever </li></ul><ul><li>Creative </li></ul><ul><li>Resourceful </li></ul><ul><li>Inventive </li></ul><ul><li>Complex – compare to music (jazz or symphony conductor), sports (golf), chess </li></ul>
  8. 9. Paradoxes of Entrepreneurship <ul><li>An opportunity with no or very low potential can be an enormously big opportunity. </li></ul><ul><li>To make money you have to first lose money. </li></ul><ul><li>To create and build wealth, one must relinquish wealth. </li></ul><ul><li>To succeed, one first has to experience failure </li></ul><ul><li>Entrepreneurship requires considerable thought, preparation, and planning, yet is basically an unplannable event. </li></ul>
  9. 10. <ul><li>For creativity and innovativeness to prosper, rigor and discipline must accompany the process. </li></ul><ul><li>Entrepreneurship requires a bias toward action and a sense of urgency, but also demands patience and perseverance. </li></ul><ul><li>The greater the organization, orderliness, discipline, and control, the less you will control your ultimate destiny. </li></ul>
  10. 11. <ul><li>Adhering to management best practice (especially staying close to the customer that created industry leaders in the 1980s), became a seed of self-destruction and loss of leadership to upstart competitors. </li></ul><ul><li>To realize the long-term equity value, you have to forgo the temptations of short-term profitability </li></ul>
  11. 12. The Entrepreneurial Process <ul><li>It is opportunity driven </li></ul><ul><li>It is driven by a lead entrepreneur and an entrepreneurial team </li></ul><ul><li>It is resource parsimonious and creative </li></ul><ul><li>It depends on the fit and balance among these </li></ul><ul><li>It is integrated and holistic </li></ul>
  12. 13. The Entrepreneurial Nexus……
  13. 14. Definitions – Three schools of thought <ul><li>1.Entrepreneur as an Innovator </li></ul><ul><li>According to Hagen “ the entrepreneur is an economic man, who tries to maximize his profits by innovations. Innovations involve problem solving and the entrepreneur gets satisfaction using capabilities in attacking problems”. </li></ul><ul><li>According to Joseph Schumpeter: “an entrepreneur basically is an innovator who carries out new combinations to initiate and accelerate the process of economic development”. </li></ul><ul><li>Innovations of an entrepreneur are in 5 forms ??????? </li></ul>
  14. 15. <ul><li>2. Entrepreneurship as a risk bearer – </li></ul><ul><li>Richard Cantillon “a person who buys factor services at certain prices to sell it at uncertain prices”. </li></ul><ul><li>F.H Knight “entrepreneurs are a specialized group of persons who bear risk and deal with uncertainty”. </li></ul>
  15. 16. <ul><li>3. Entrepreneurship as an organizer – </li></ul><ul><li>J.B Say “is the economic agent who unites all means of production, the labour force of one, the capital or land of others and who finds in the value of products which results from their employment, the reconstitution of the entire capital that he utilizes and the value of the wages, the interest and the rent which he pays as well as profit belonging to himself” </li></ul>
  16. 17. Drucker’s thoughts….. <ul><li>Peter Drucker “an entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity”. </li></ul><ul><li>Further he says, </li></ul><ul><li>- an entrepreneur should try to be clever in design or execution otherwise he is bound to fail. </li></ul><ul><li>- he should innovate for the present and not for the future </li></ul><ul><li>- innovation should be simple otherwise it would not work </li></ul>
  17. 18. <ul><li>- innovation requires knowledge, ingenuity, diligence, persistence and commitment </li></ul><ul><li>- an entrepreneur must be an innovator as well as a leader </li></ul><ul><li>- must be capable of analyzing the opportunities and exploit them successfully. </li></ul>
  19. 20. RELATIONSHIP BETWEEN ENTREPRENEUR AND ENTREPRENEURSHIP <ul><li>ENTREPRENEUR </li></ul><ul><li>PERSON </li></ul><ul><li>ORGANISER </li></ul><ul><li>INNOVATOR </li></ul><ul><li>RISK BEARER </li></ul><ul><li>MOTIVATOR </li></ul><ul><li>CREATOR </li></ul><ul><li>VISUALISER </li></ul><ul><li>LEADER </li></ul><ul><li>IMITATOR </li></ul><ul><li>ENTREPRENEURSHIP </li></ul><ul><li>PROCESS </li></ul><ul><li>ORGANISATION </li></ul><ul><li>INNOVATION </li></ul><ul><li>RISK BEARING </li></ul><ul><li>MOTIVATION </li></ul><ul><li>CREATION </li></ul><ul><li>VISION </li></ul><ul><li>LEADERSHIP </li></ul><ul><li>IMITATION </li></ul>
  20. 21. Conclusion…… <ul><li>&quot;When you reach an obstacle, turn it into an opportunity. You have the choice. You can overcome and be a winner, or you can allow it to overcome you and be a loser. The choice is yours and yours alone. Refuse to throw in the towel. Go that extra mile that failures refuse to travel. It is far better to be exhausted from success than to be rested from failure.&quot; </li></ul><ul><li>Mary Kay Ash, founder of Mary Kay Cosmetics </li></ul>