1. entrepreneurial perspective


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1. entrepreneurial perspective

  2. 2. Entrepreneurship Management Subject Code : 4.3 Total Marks : 100 External : 60 Marks Internal : 40 Marks Inclusion & Considerations Attendance : Not less than 75% Class Test : Better 2 out of 3 Case Study : Presentation Discipline : Sincerity & Obedience Participation : Effective
  3. 3. Who is an entrepreneur ? Dictionary : One who recognizes and manages only enterprise specially involving high risk. Economist : One who brings resources, labour, raw materials and other assets into combinations that increase their value from before and also one who introduces changes, innovations and a new order. Psychologists : One who is typically driven by some forces, which create a desire to obtain or attain something. Sociologists : One whose actions would determine his social status and who contributes to the development of society. Management : One who has a vision and generates an action plan to achieve it. The word “Entrepreneur” has been derived from the French word ‘Entrependre’ which refers individuals who are ‘undertakers’ (i.e. those who ‘undertook’ the
  4. 4. Entrepreneur Vs Entrepreneurship Entrepreneur Entrepreneurship Refers to a person Refers to a process Visualizer Vision Creator Creation Organizer Organization Innovator Innovation Technician Technology Initiator Initiative Decision Maker Decision Planner Planning Leader Leadership Motivator Motivation Programmer Action Risk Taker Risk Taking Communicator Communication Administrator Administration
  5. 5. Entrepreneur Vs Manager Parameter Entrepreneur Manager Primary Motive Independence, Creative opportunity & economic Profit Promotion and other traditional corporate rewards such as increments, perks, power and control over team Activity Direct involvement in all areas of management & business Delegates & Supervises rather gets directly involved. Does not consider aspects of the business or management that are outside his job definition Attitude towards Failure and Mistakes Takes full responsibility and tries to correct mistakes and overcome failures Tries to avoid mistakes and failures. May be cautious to the point of inaction if the risk is too high Risk Taking Character Moderate to high risk taker. More risk More profit. Low risk taker.
  6. 6. Entrepreneur Vs Manager Parameter Entrepreneur Manager Decision making capabilities Takes all decision to follow his dream Agrees with company’s policies and those above in the corporate hierarchy Family Background Comes from a with a history of entrepreneurs or small business May even come from farming background. Comes from a family whose members generally work for large corporations or the government Relationship with others Basis of relationship with others is transactions and deal making; To define his own hierarchy. Relates to others within the existing hierarchy. Relationship with each other Must have managerial skills. Management is a subset of entrepreneurship Manager cannot be an entrepreneur Age In males it is generally 25 to 35 and among females it is between 35 to 45. Depends upon qualification, experience and performance.
  7. 7. Entrepreneur Vs Entrepreneurship Entrepreneur Entrepreneurship Entrepreneurs are people with vision who recognize and pursue opportunity, create and establish business or new ventures, take into account the risk involved, have control over the present and future and have the flexibility to change and adapt with the changing times. Entrepreneurship is the pursuit of a discontinuous opportunity involving the creation of an organization (or sub- organization) with the expectation of value creation to the participants. An entrepreneur is a person who visualize a particular business venture and then goes on to create it. Basically, the person is the originator of a new business venture and a new organization for that venture. Entrepreneurship is the means by which new organizations are formed with their resultant job and wealth creation. The necessary condition that the organization created, actually provides goods and/or services to society, not merely to internal consumption. The entrepreneur is that individual (or team) which identifies the opportunity, gathers the necessary resources, creates and is ultimately responsible for the performance of the organization. Entrepreneurship is the process of creating value by bringing together a unique package of resources to exploit an opportunity.
  8. 8. Importance of Entrepreneurship ► It helps in overcoming the problems of population, unemployment, underemployment and hidden unemployment. ► It is the key to economic development. ► It helps in harnessing youth vigour. ► It provides greater and varied employment opportunities. ► Entrepreneur is a business leader who plays a pivotal role in fostering economic growth and development. ► The paves the way for industrial development. ► Entrepreneurship helps in solving the problems of monopoly and balanced regional development. ► It helps in increasing the per capita income and hence the life style. ► It helps in higher individual savings and hence more purchasing power. ► It provides more revenue for the government in the form of income tax, sales tax, export duties, import duties etc. ► It guides the direction for national economics, industries and markets. ► It introduces quantum leaps in technology and more productive use of resources. ► It guides innovations, creativity and wealth creation.
  9. 9. Advantages / Benefits of an Entrepreneur ☻Your own boss and boss to others. ☻Your decision will guide the success or failure of the enterprise ☻You will have the chance to put your ideas into practice. ☻You will make money for yourself rather than for somebody else ☻ You have to participate in every aspect of the enterprise thus to learn and gain practical experience in varied business discipline ☻You will work in the area of your choice and thus enjoy your job ☻You will get personal satisfaction of running a business and to develop self confidence. ☻You will contribute in providing job for others. ☻You develop your own action plan for execution. ☻You will work directly with your customers and do projections. ☻ You will contribute in raising the life style and radical change
  10. 10. Disadvantages / Risk of an Entrepreneur ► Alone performer ► Solitary decision maker ► All may be a loser at the end. ► Work may not be satisfying. ► Not able to change job frequently. ► Long working hours. ► Lack of success will hamper enthusiasm. ► To remain in business will be difficult. ► May disturb family and social life. ► Risk of career, finance and more uncertainty.
  11. 11. Reason for growth of Entrepreneurship ■ Industrial Structure ■ New Technologies ■ Deregulation & Privatization ■ Formation of Business Communities ■ Increasing demand for variety / Changing choice ■ Growth and need of the service sector ■ Government Subsidies and Incentives ■ Increasing flow of Information ■ Easy access to resources ■ Entrepreneurial education ■ Return on Innovation ■ Entrepreneur regarded as a hero ■ High regard for self employment ■ Rising dissatisfaction at job ■ Acceptance of ex-entrepreneur in job market
  12. 12. Characteristics / Personality of an Entrepreneur ☻ Always takes initiative ☻ Translates opportunity into reality ☻ Determined to face the situation / Optimistic ☻ Information seeking from all corners / Realistic ☻ Demand for quality and efficiency / Value Product ☻ Risk taking – Financial, Social, Psychological ☻ Goal setting ☻ Commitment to work / Long working hours ☻ Systematic planning and monitoring / Organized ☻ Self belief, Persuasion and networking ☻ Independent & self confidence but not over confident
  13. 13. ☻ Respect for work ☻ Always innovative ☻ Perception of economic opportunity ☻ Imagination and creativity ☻ Believe in changing the business environment ☻ Enjoy freedom of expression and action ☻ Gain satisfaction from completion of work ☻ More motive to achieve than mere competitiveness ☻ Readily takes feedback ☻ Invite constructive criticism ☻ Reports a good relationship with father ☻ Makes the economy more competitive ☻ Does not particularly stand out in crowd
  14. 14. Role in Economic Development • Generation of more employment • Economic reforms • Delicensing of industries • Lowering of interest rates • Formulation of outsourcing culture • In balancing regional development • Optimum utilization of natural resources • In capturing market opportunities • In overall economic development • Lowering the load of job market • Providing options for job seekers • Further encouraging intrapreneurs
  15. 15. Entrepreneurs Vs Intrapreneurs Entrepreneurs Intrapreneurs Owner / Operator An Employee Implements own or other’s ideas Shares own ideas, seeks approval Expects always financial profits Remuneration / Recognition / Reward Takes extreme risks Calculated risk Profit goes to the entrepreneur Profit for the organization Needs to encourage intrapreneur Way to improve company performance Education and experience less concern More concern or a must Inclined more towards consumer sales More inclined towards B 2 B products Generally at age between 30 – 40 Most often after 40 Involvement in all business areas Major areas and the delegated areas Full responsible of failure / success Tries not to take failure Correct mistakes and tries to overcome Avoids risky projects as much possible Generally from entrepreneur or business family or background Mostly salaried and rarely entrepreneur Generally defines his own hierarchy Depends on the existing hierarchy
  16. 16. Environment for an Intrapreneur • To operate on the frontiers of technology • To encourages new ideas • To encourage trial and error • To allow failures • Not to try to place any parameters & opportunities • To make resources available to all • To have a multidisciplinary team based approach • To have a long time horizon for product development • To have an appropriate reward system • To provide sponsorship and mentorship • The top management needs to support the efforts of an intrapreneur