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better understanding about entrepreneurship and entrepreneurship phases.

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  1. 1. Entrepreneurship + Incubation = Innovation + Wealth Creation
  2. 2. <ul><li>Three Central Questions </li></ul><ul><li>Can Entrepreneurship be taught/studied? </li></ul><ul><li>What is Entrepreneurship? </li></ul><ul><li>Who is an Entrepreneur? </li></ul>Entrepreneurship
  3. 3. Entrepreneurship is the practice of starting new business enterprises What is Entrepreneurship
  4. 4. What is Entrepreneurship <ul><li>An Approach to management that starts with opportunity </li></ul><ul><li>Not just small companies </li></ul><ul><li>Not just start ups </li></ul><ul><li>Not simply promoters </li></ul>
  5. 5. Entrepreneurship is <ul><li>A process </li></ul><ul><li>Not a person </li></ul><ul><li>About BIG companies that happen to be small </li></ul><ul><li>Not about small business </li></ul><ul><li>Important to BIG business </li></ul>
  6. 6. Entrepreneurial Process Identify Opportunity Acquire Resources Need Solution Advantage Technology rights People Money
  7. 7. Entrepreneurship Bridges the Gap Technology / Opportunity Entrepreneurship Value
  8. 8. The Entrepreneurship Task <ul><li>Key Resources </li></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Money </li></ul></ul><ul><ul><li>People </li></ul></ul>
  9. 9. The Entrepreneurial venture Cash Flow FOUR PERIODS of DEVELOPMENT Time I II III IV Pure Entrepreneurship
  10. 10. The Entrepreneurial venture Period I: “Pure Entrepreneurship” <ul><li>Defining the concept of the business </li></ul><ul><li>Gathering financial resources </li></ul><ul><li>Assembling the startup team </li></ul><ul><li>Identifying customers </li></ul><ul><li>Analyzing the competition </li></ul><ul><li>Building the prototype </li></ul><ul><li>Getting your first ‘customer’ </li></ul>
  11. 11. The Entrepreneurial venture Cash Flow FOUR PERIODS of DEVELOPMENT Time I II III IV Strategic focus
  12. 12. The Entrepreneurial venture Period II: “Strategic Focus” <ul><li>What business aren’t we in? </li></ul><ul><li>IMPLEMENTING the business we are in </li></ul><ul><li>Knowing better than ANYONE else: </li></ul><ul><ul><li>What will people pay </li></ul></ul><ul><ul><li>How many will they buy </li></ul></ul><ul><ul><li>How to distribute </li></ul></ul><ul><ul><li>How to service the customer </li></ul></ul><ul><li>Identifying strategic partners </li></ul><ul><li>Developing relations with suppliers </li></ul><ul><li>Going beyond the prototype to a truly scale able product </li></ul><ul><li>Recruiting a complete team </li></ul><ul><li>Raising ‘institutional money’ </li></ul>
  13. 13. The Entrepreneurial venture Cash Flow FOUR PERIODS of DEVELOPMENT Time I II III IV “ System Building”
  14. 14. The Entrepreneurial venture Period III: “System Building” <ul><li>Financial control </li></ul><ul><li>Stable division of labor </li></ul><ul><li>Reporting relationship and authorities </li></ul><ul><li>Developing systems of internal control </li></ul><ul><li>Formalizing the terms of a sale </li></ul><ul><li>Operational systems </li></ul><ul><ul><li>Production, outsourcing </li></ul></ul><ul><ul><li>Distribution, sales </li></ul></ul><ul><ul><li>Service, warranties </li></ul></ul>
  15. 15. The Entrepreneurial venture Cash Flow FOUR PERIODS of DEVELOPMENT Time I II III IV “ Corporate management”
  16. 16. The Entrepreneurial venture Period IV: “Corporate Management” <ul><li>Hiring “outsiders” </li></ul><ul><li>Going public </li></ul><ul><li>Adding the follow-on product[s] </li></ul><ul><li>Shedding those who can’t keep up </li></ul><ul><li>Formalizing the culture </li></ul><ul><li>Rationalizing the strategy </li></ul>
  17. 17. Who is the Professional Entrepreneur Cash Flow Zone of collaboration Zone of competition Time I II III IV Visioning the Future in the present
  18. 18. Who is the Professional Entrepreneur Personal Entrepreneurship Style <ul><li>Entrepreneurship is a Team sport </li></ul><ul><ul><li>Many can play – even if they are not ‘born’ entrepreneurs </li></ul></ul><ul><li>Three modes </li></ul><ul><ul><li>Lead </li></ul></ul><ul><ul><li>Follow </li></ul></ul><ul><ul><li>Execute </li></ul></ul><ul><li>Three Functions </li></ul><ul><ul><li>Create </li></ul></ul><ul><ul><li>Manage </li></ul></ul><ul><ul><li>Innovate </li></ul></ul><ul><li>Which role is right for you? </li></ul>
  19. 19. Personal Entrepreneurship Styles: Modes: Leads or Follow <ul><li>High Performance entrepreneurial teams are: </li></ul><ul><ul><li>Self organizing </li></ul></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><li>Self disciplined </li></ul></ul><ul><ul><li>Common goal </li></ul></ul><ul><ul><li>Common priorities </li></ul></ul><ul><ul><li>Common values </li></ul></ul><ul><ul><li>Enabled by shared ownership </li></ul></ul><ul><li>Same people may play different roles on different teams within the same company </li></ul>Lead Execute Follow
  20. 20. Personal Entrepreneurship Styles: Functions: Creates or Manage <ul><li>Innovation requires a combination of creativity and management – brought by a team </li></ul><ul><ul><li>Creation requires the greatest technical competency </li></ul></ul><ul><ul><li>Management requires technical affinity </li></ul></ul><ul><ul><li>Different functions are best suited for different people </li></ul></ul><ul><ul><li>Functions rarely are exchanged </li></ul></ul><ul><ul><li>All collaborate in BOTH dimensions </li></ul></ul>Create Innovate Manage
  21. 21. Entrepreneurship is a Team Sport Results are what count <ul><li>High performance technology entrepreneurship </li></ul><ul><li>Is a BLEND of innovation and Execution </li></ul><ul><li>Requires collaboration and discipline </li></ul><ul><li>It is best performed by a team </li></ul><ul><li>Alignment of incentives directly and dramatically related to the outcome </li></ul>Innovation Entrepreneurship Execution
  22. 22. What you can’t Study Or We can’t Teach <ul><li>Entrepreneuriali sm </li></ul><ul><li>The entrepreneurial “attitude” </li></ul><ul><ul><ul><li>Optimism </li></ul></ul></ul><ul><ul><ul><li>Need for achievement </li></ul></ul></ul><ul><ul><ul><li>Risk tolerance </li></ul></ul></ul><ul><ul><ul><li>Creativity </li></ul></ul></ul><ul><li>Entrepreneurship as a social status </li></ul><ul><li>Success as a requirement </li></ul>
  23. 23. Role of Technology Business Incubator in creating innovation & wealth
  24. 24. Business Incubator Business incubators are organizations that support the entrepreneurial process, helping to increase survival rates for innovative startup companies. Physical Virtual
  26. 26. Incubation Process Discovery Pre-Incubation Incubation Acceleration Business Development Road-map Assessment of business idea feasibility 0…4 months 12…24 months 6..12 months Start-up planning and preparation Creation of a solid business platform for business growth Preparation for acceleration and internationalization Toward Growth Track Business Ramp-Up Business Plan Evaluation Pre-Incubation and Kick-off Services Incubation Contract Feasibility Studies Incubation Services FAST TRACK FAST TRACK
  27. 27. Discovery Pre-Incubation Incubation Acceleration Identification Funding Financial Services Feasibility Studies Mentoring Services / Match Making / Monitoring Facility / Infrastructure Softwares / Business Tools Networking Services / Consulting services Entrepreneurial Training, workshop, Seminars Operation support After Exit support Incubation Services Business Plan Development & Expert Services (Legal, Marketing, IPR etc.) EAC BP Competition
  28. 28. Incubatee Selection Process Application Presentation Agreement
  29. 29. Performance So far SNAPSHOT Total companies incubated 42 Under Incubation 17 Graduated Success 18 Failures 07 Overall success percentage 83% EMPLOYMENT GENERATED <ul><li>~100 employees currently in incubatee companies </li></ul><ul><li>500+ employees in graduated companies and growing </li></ul>ESTIMATED TURNOVER OF COMPANIES <ul><li>~Rs 3.5 Crore within incubator </li></ul><ul><li>~Rs. 100 Crore graduated companies & growing </li></ul>Startup manpower: begin with 1-2 and expands to 7-9 Revenue: start with proof of concept ( 0 revenue) Startup capital: personal savings, family and friends <ul><li>Best Technology Business Incubator Award 2004 </li></ul><ul><li>SEED Fund support to 5 companies (Equity/Soft Loan) </li></ul><ul><li>MSME Funding support to 8 companies </li></ul><ul><li>4 Alumni's Companies </li></ul>
  30. 30. LEVEL 1 Entrepreneurs Statistics So far 49% of the promoters have technical qualification (B.Tech / M.Tech) and 80% are either technically qualified or have an MBA. AGE WISE WORK EXPERIENCE QUALIFICATION More engineers are opting for entrepreneurship sacrificing higher salaries in an employed job
  31. 31. Entrepreneur Citizen Human Who is Next ?
  32. 32. Thank you Contact us : [email_address] Mob: 9818249599