Introduction to Entrepreneurship (BOCS,BOET-505D).pdf

1. Innovation
and Entrepreneurship
CS-505D
By- Dr. Shikha Tayal Aeron
CSE Dept.

3. • Creativity the ability to use the imagination to
generate new ideas.
• Innovation is a process of making things better and more
effective
• Entrepreneurship is a commercial activity where an individual
takes financial risks in the hope of profit

4. What is creativity?
•Creativity is the ability to think about a task or
a problem in a new or different way

5. The Role of Creative Thinking
• Creativity
• The generation of ideas that result in the improved
efficiency or effectiveness of a system.
• Two important aspects of creativity exist:
• Process
• The process is goal oriented; it is designed to attain a
solution to a problem.
• People
• The resources that determine the solution.

6. What is Innovation?
• Innovation comes from the words “new” and “in”
meaning to renew or bring something new into an
existing situation.
• it needs to be NEW,
and it needs to create VALUE.

8. What is Entrepreneurship?
It’s a JOURNEY
of converting an IDEA
into a
BUSINESS
for a purpose to make
MONEY

9. 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.

10. An Integrated Definition
• Entrepreneurship
• A dynamic process of vision, change, and creation.
• Requires an application of energy and passion towards the
creation and implementation of new ideas and creative
solutions.
• Essential ingredients include:
• The willingness to take calculated risks—in terms of time,
equity, or career.
• The ability to formulate an effective venture team; the
creative skill to marshal needed resources.
• The fundamental skills of building a solid business plan.
• The vision to recognize opportunity where others see chaos,
contradiction, and confusion.

11. A Summary Description
of Entrepreneurship
• Entrepreneurship (Robert C. Ronstadt)
• The dynamic process of creating incremental wealth.
• This wealth is created by individuals who assume major
risks in terms of equity, time, and/or career commitment
of providing value for a product or service.
• The product or service itself may or may not be new or
unique but the entrepreneur must somehow infuse value
by securing and allocating the necessary skills and
resources.

12. Entrepreneurship: A
Mindset
• Entrepreneurship is more than the mere creation of
business:
• Seeking opportunities
• Taking risks beyond security
• Having the firmness to push an idea through to reality
• Entrepreneurship is an integrated concept that permeates an
individual’s business in an innovative manner.

13. Entrepreneurship Education is
Important - Economic
• Majority of new jobs are created by entrepreneurs and
small businesses
• Small high growth companies account for 70% of economic
growth over last decade
• Entrepreneurship drives economic competitiveness at the
local – state – and global levels
• Over 1/3 of difference in national economic growth may be
due to difference in entrepreneurial activity
• Entrepreneurship has a unique position in the “New
Economy”
• Entrepreneurship accounts for at least 2/3 of all
technological innovation

14. Entrepreneurship Education is
Important - Personal
•7 of 10 high school students want to start
their own business
•More opportunities to exercise creative
freedoms
•Higher self-esteem
•Greater sense of control over your life and
future.

15. Entrepreneurship Education is
Important – Global
Many experienced business people, political leaders,
economists, and educators believe that fostering a robust
entrepreneurial culture will maximize individual and
collective economic and social success on a local,
national, and global scale.

16. MANAGER VERSUS LEADER
Manager
Characteristics
• Administers
• A copy
• Maintain
• Focus and systems and structure
• Relies on control
• Short-range view
• Asks how and when
• Eye on the bottomline
• Imitates
• Accepts the status quo
• Classic good soldier
• Does things right
Leader
Characteristics
• Innovates
• An original
• Develops
• Focuses on people
• Inspires trust
• Long-range perspective
• Asks what and why
• Eye on the horizon
• Originates
• Challenges the status quo
• Own person
• Does the right thing

17. Entrepreneur Vs Businessman

19. • Entrepreneurship is often associated
with the early stages of creating a
business or project, while
•business operations focus on running
and managing the established entity.

20. Famous Entrepreneurs

21. Journey of Amazon

24. Where can I fail?
No right answers
Only trade offs

25. Entrepreneurs
Challenging the Unknown
Entrepreneurs
• Recognize opportunities where others see
chaos or confusion
• Are aggressive catalysts for change within
the marketplace
• Challenge the unknown and continuously
create the future

26. CHARACTERISTICS OF AN
ENTREPRENEUR
1. Calculated Risk-taker
2. Innovator
3. Organiser
4. Creative
5. Achievement Motivated
6. Technically Competent
7. Self-confident
8. Socially Responsible
9. Optimistic
10. Equipped with Capability to drive

27. 11. Blessed with Mental Ability
12. Human Relations Ability
13. Communication Ability
14. Decision-Making
15. Business Planning
16. A venture Capitalist
17. Visionary
18. Entrepreneur make significant differences
19. Ability to Spot and Exploit Opportunities
20. Courage to Face Adversities
21. Leadership---An essential trait of the entrepreneur

28. Common Characteristics of
Entrepreneurs
• Commitment,
determination, and
perseverance
• Drive to achieve
• Opportunity orientation
• Initiative and
responsibility
• Persistent problem
solving
• Seeking feedback
• Internal locus of control
• Tolerance for ambiguity
• Calculated risk taking
• Tolerance for failure
• High energy level
• Creativity and
Innovativeness
• Vision
• Self-confidence and
optimism
• Independence
• Team building

29. Characteristics & Personality Traits
Great Entrepreneurs Share
Discipline
Creativity
Self-Awareness
Resourceful
Process-Oriented
Empathetic
Communicative
Self motivated
Confident
Flexible
Risk-Taker
Resilient

30. Discipline

31. Creativity

32. Self-Awareness
• "Self-awareness at its nest is accepting your
shortcomings and accentuating your strengths."

33. Resourceful

34. Process-Oriented

35. Empathetic

36. Communicative

37. Self motivated

38. Confident

39. Flexible

40. Risk-Taker

41. Resilient

43. WORKING PROFILE OF
ENTREPRENEUR
Characteristics
• Self-confidence
• Drive
• Task-result oriented
• Risk-taker
• Mental Ability
• Leadership
• Human Relations Ability
• Originality
• Communication Ability
Traits
• Confidence, Independence, Optimism, Individuality.
• Responsibility, Vigour, Initiative, persistence, Ambition.
• Need for achievement, Profit-oriented, Energy.
• Risk-taking ability, Likes challenges.
• Overall intelligence(IQ), Creative thinking, Analytical
thinking ability.
• Leadership behavior, Getting along with others,
Responsive to situations and criticism.
• Emotional stability, Healthy personal relations, Sociability,
Tactfulness, and Consideration.
• Innovative, Creative, Resourceful, knowledge.
• Perceptive, Foresight, Future-oriented.

44. Entrepreneurial Intensions
• Entrepreneurial intention (EI) is defined
as “the conscious state of mind that
precedes action and directs attention
toward entrepreneurial behaviors such as
starting a new business and becoming an
entrepreneur”

45. • entrepreneurial intention is a psychological
state that guides our attention toward
specific business goals in order to achieve
entrepreneurial results. It is also a
recognition that individuals take actions to
develop new businesses or create new values
in existing enterprises.

46. characteristics of entrepreneurial
intentions
• Internal locus of control,
• need for achievement,
• risk tolerance, and
• entrepreneurial alertness
are dimensions of personality traits which
lead a person to develop the entrepreneurial
intention.

59. 11 Challenges Entrepreneurs Face
and How To Overcome Them
1. Selecting a service or product
2. Developing a sales strategy
3. Establishing starting funds
4. Maintaining a budget
5. Sustaining revenue
6. Staffing the organization
7. Managing employees
8. Expanding the business
9. Managing time
10. Maintaining confidence
11. Collaborating with partners

60. 1. Selecting a service or product
Challenge- deciding what to sell.
Solution –
• Identify a demand in their community they could meet.
• A marketing firm or freelance researcher may help them
conduct market research
• discover what needs there are and which ones they have the
resources to address.
• Example- the people in the community drive out of
town to get massages, so they know there is a local
demand for a spa that they could fill.

61. 2. Developing a sales strategy
Challenge- deciding a sales strategy
Solution-
• may hire a professional to create a marketing plan
• they can assess who their target audience and
• what strategy might best reach them.
Example- if an entrepreneur opens a business in a rural
community where they know many people listen to the
radio, they may develop a digital ad to broadcast locally.

62. 3. Establishing starting funds.
Establishing starting funds
Challenge- how to get funds for a startup?
Solution-
• begin with a traditional bank loan or a federal small
business loan.
• If they plan to provide a product or service that they
know has significant demand already, they might start a
fundraising campaign.
• they may start by targeting a small audience and slowly
building to serve larger client bases.

63. 4. Maintaining a budget
Challenge- carefully maintaining a budget
Solution-
by prioritizing efficient marketing strategies and allocating
the rest according to their unique needs.
Assessing which expenses are necessary
example- they may observe that there is a more
affordable manufacturer they can use and reallocate those
savings to address higher utility costs.

64. 5. Sustaining revenue
Challenge- how to manage their organization's money
carefully to account for any potential delay in invoice
payments.
Solution-
• entrepreneurs may charge a down payment to ensure
they can afford expenses until they receive full
payment.
• By sending invoices as early as possible and
• requesting payment as soon as they complete
projects,
entrepreneurs can secure funding to keep operations
running efficiently.

65. 6. Staffing the organization
Challenge- How To make sure that they hire people who
care about their organization's mission and will work
hard
Solution-
• They may publish highly detailed listings to attract
candidates whose qualifications match the organization's
specific needs.
• Before interviewing anyone, they can develop questions to
assess if the candidate might be a good fit for their
organization and if the role can help them in their career
goals.

66. 7. Managing employees
Challenge- how to guide employees to best carry out the
organization's goals.
Solutions-
They can achieve this by developing clear, detailed instructions
for each role.
When an entrepreneur effectively communicates the goals of
the organization, employees may better understand what they
expect and what they're working toward.
Example- if the founder of a clean water initiative tells
employees the story of why they started the company, they may
feel more inspired to work toward the common goal of
providing clean water.

67. 8. Expanding the business
Challenge- how to expand business.
Solution-
• figuring out a way to address greater demand,
researching new partners and reassessing their role in
the company.
• revise existing processes to better meet the company's
needs.
Example- if a consulting firm uses software built for a
smaller client list, they may upgrade to one that betters
suits a wider client base.

68. 9. Managing time
Challenge- How to manage periodic tasks
Solution-
may create deadlines to help with prioritizing
their obligations.
May create goals for themselves and others in
the organization.
They may assess which tasks are absolutely
necessary and which they can delegate.

69. 10. Maintaining confidence
Challenge-
• It can take a lot of confidence to start a company and
just as much to run one. It's important for
entrepreneurs to maintain confidence so they can lead
effectively and make appropriate business decisions.
Entrepreneurs may set long- and short-term goals to
track and reflect on their success. Keeping a
community of supportive leadership and employees
may also help. When an entrepreneur is more
confident, they may feel more prepared to address
challenges.

70. 11. Collaborating with partners
• For entrepreneurs whose organization is doing well,
they may consider partnering with other professionals
or businesses. Though this may help them allocate
leadership responsibilities and increase funding, there
are many considerations. First, entrepreneurs can
assess areas of improvement, whether a partnership
might help and also how their skills and personalities
might combine to benefit the organization. It's
important to establish the terms of the partnership with
a lawyer to protect all parties' interests.