Entrepreneurship

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Entrepreneurship

  1. 1. Entrepreneurship
  2. 2. Sole Proprietorship • A business owned by a single individual that is not incorporated. • The life of the organization is limited to the life of the individual who started it.
  3. 3. Partnership • A partnership exists when two or more persons associate to conduct a non-corporate business. • Partnerships may operate under different degrees of formality ranging from informal (oral understandings) to formal agreements.
  4. 4. Entrepreneur • One who starts his own, new and small business • Person who undertakes an enterprise with chances of profit or loss. • Entrepreneur is a person who undertakes a business activity of which he/she has no background and faces considerable risks in the process. • If either of the two elements, i.e., “no background” or “considerable risk” is missing in the venture, it is no entrepreneurship.
  5. 5. • Peter F. Drucker defines an entrepreneur as one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. Entrepreneur
  6. 6. Famous Entrepreneurs in the World Donald Trump Bill Gates Larry Page Pierre Omidyar Mark Zuckerberg
  7. 7. Who am I? What’s my Company? •Manhattan Real Estate Developer •Owns 3 Casinos, 6 Golf Courses •Star of TV Show, “The Apprentice” Famous Entrepreneurs Donald Trump Owner, The Trump Organization •Manhattan Real Estate Developer •Owns 3 Casinos, 6 Golf Courses •Star of TV Show, “The Apprentice”
  8. 8. Who am I? What’s my Company? •58 years old, Harvard University (not!) •Started his company at 20 years of age Famous Entrepreneurs Bill Gates Founder & Chairman, Microsoft • 58 years old, Harvard University (not!) • One of the richest person in America • Started his company at 20 years of age
  9. 9. Who am I? What’s my Company? •40 years old, University of Michigan •Started his company at 28 years of age Famous Entrepreneurs Larry Page Founder & President, Google •40 years old, University of Michigan •Owner of top one web search engine •Started his company at 28 years of age
  10. 10. Who am I? What’s my Company? •46 years old, graduated Tufts University •Started his company at 28 years of age Famous Entrepreneurs Pierre Omidyar Founder & Chairman, eBay •46 years old, Tufts University •Started his company at 28 years of age
  11. 11. Who am I? What’s my Company? •28 years old, Harvard University •Youngest billionaire ever •Started his company at 16 years of age Famous Entrepreneurs Mark Zuckerberg Founder & CEO, Facebook •28 years old, Harvard University •Youngest billionaire ever •Started his company at 16 years of age
  12. 12. Entrepreneurship • It is a philosophy or process through which an entrepreneur seeks innovation and employment. • It is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.
  13. 13. Concept of Entrepreneur • Entrepreneur as risk bearer • Entrepreneur as an organizer • Entrepreneur as an innovator – Introduction of new product in the market. – Use of new method of production, which is not yet tested. – Opening of new market. – Discovery of new source of raw materials. – Bringing out of new form of organisation.
  14. 14. Inventor and Innovator • An inventor is one who discovers new methods and new materials. • An innovator utilizes inventions and discovers in order to make new combinations.
  15. 15. Inspirational Stories of Successful Entrepreneurs Source: www.entrepreneur-inspiration.com
  16. 16. Sam Walton (1918 – 1992) • He is the founder of Wal-Mart (the largest public corporation according to the Forbes Global 2000) and Sam’s Club. • Inspirational story: When he opened his first store, his store always stayed open later than the most other stores, especially during Christmas season.
  17. 17. Colonel Sanders (1890 – 1980) • He is the founder of Kentucky Fried Chicken (KFC) which is one of the largest fast food corporation in the world. • Inspirational story: In the age of 65 years old he tried to franchise his fried chicken receipt to restaurant owners, he went door to door by driving car. He got 1009 “No” answers before getting his first “Yes” answers from a restaurant owner who wanted to sell his fried chicken.
  18. 18. Thomas Alva Edison (1847 – 1931) • He is a famous inventor of light bulb, scientist, and businessman. • Inspirational story: He was failed more than thousand times in experiments while inventing light bulb.
  19. 19. Henry Ford (1863 – 1947) • He is the founder of the Ford Motor company. As owner of the Ford Motor Company, he became one of the richest and best-known people in the world. • Inspirational story: At 15 years old, he worked as a watch repairman. In 1891 he started his career as an engineer and he built a company in 1899 which was not successful. Finally Ford Motor Company was built in 1903.
  20. 20. Warren Buffett (1930 – Present) • He is one of most successful investor in the world. He is also one of the world’s richest person. • Inspirational story: When he was a child, he went door to door selling weekly magazines, Coca Cola, and gum.
  21. 21. Michael Dell (1965 – Present) • He is the founder of Dell Inc. and one of the wealthiest people in the world. • Inspirational story: He started his business idea in 1984 with just $1000 by providing affordable personal computers to college students.
  22. 22. Ingvar Kamprad (1926 – Present) • He is the founder of IKEA (the world’s largest furniture retailer) and one of the world’s richest men. • Inspirational story: He founded IKEA at age 17, he got the capital from a reward that he received from his father for doing well in school.
  23. 23. Importance • Provides Self Employment for the entrepreneur • Entrepreneur can offer employment • Innovation and creativity • Unlimited income / higher retained income (Bill Gates, Tata, Ambani, etc.) • Results in wider distribution of wealth • Supports to economic growth of the country • Optimum utilization of resources • Research and development • Regional imbalances • Exploitation by monopolists
  24. 24. Characteristics Core competencies Entrepreneurial activities Initiative Does things before asked for or forced to by events and acts to extend the business to new areas, products or services. Perceiving opportunities Identifies business opportunities and mobilizes necessary resources to make good an opportunity. Information gathering Consults experts for business and technical advice. Seeks information of client or supplier’s needs. Personally undertakes market research and make use of personal contacts or information networks to obtain useful information. Contd…
  25. 25. Core competencies Entrepreneurial activities Persistence Takes repeated or different actions to overcome obstacles. Concern for quality work States desire to produce or sell a better quality product or service. Compares his performance favorably with that of others. Commitment to contractual obligations Makes a personal sacrifice or expands extraordinary effort to complete a job, accepts full responsibility in completing a job contract on schedule, pitches in with workers or work in their place to get the job done and shows utmost concern to satisfy the customer. Contd… Characteristics
  26. 26. Core competencies Entrepreneurial activities Efficiency orientation Finds ways and means to do things faster, better and economically. Planning Various inter-related jobs are synchronized according to plan. Problem solving Conceives new ideas and finds innovative solutions. Self-confidence Makes decisions on his own and sticks to it in spite of initial setbacks. Experience Possesses technical expertise in areas of business, finance, marketing, etc. Contd… Characteristics
  27. 27. Core competencies Entrepreneurial activities Self-critical Aware of personal limitations but tries to improve upon by learning from his past mistakes or experiences of others and is never complacent with success. Use of influence strategies Develops business contacts, retains influential people as agents and restricts dissemination of information in his possession. Monitoring Develops a reporting system to ensure that work is completed and quality norms. Credibility Demonstrates honesty in dealing with employees, suppliers and customers even if it means a loss of business. Characteristics Contd…
  28. 28. Core competencies Entrepreneurial activities Concern for employee welfare Expresses concern for employees by responding promptly to their grievances. Impersonal relationship Places long-term goodwill over short-term gain in a business relationship. Expansion of capital base Reinvests a greater portion of profits to expand capital of the firm. Building product image Concerned about the image of his products among consumers and does everything possible to establish a niche for his products in the market. Characteristics
  29. 29. Differences between Entrepreneur and Manager
  30. 30. • Need for Achievement • Risk taking • Organizing Skills • Perseverance • Hard Working • Self Confidence Qualities of Entrepreneurship • Disciplined • Open Minded • Self Starter • Competitive • Creativity • Determination • Strong work ethic • Passion
  31. 31. Role of Entrepreneurship • Entrepreneurship promotes capital formation by mobilizing the idle saving of the public. • It provides immediate large-scale employment. Thus it helps to reduce unemployment in the country. • It provides balanced regional development. • It helps reduce the concentration of economic power.
  32. 32. Role of Entrepreneurship • It stimulates the equitable redistribution of wealth, income and even political power in the interest of the country. • It encourages effective resources mobilization of capital and skill which might otherwise remain unutilized and idle. • It also induces backward and forward linkages which stimulated the process of economic development in the country. • It promotes country’s export trade i.e. an important ingredient for economic development.

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