Entrepreneurship & New Venture Creation-(3.1)-Module-1
Entrepreneurship & New Venture Creation-(3.1)<br />BU-MBA-Semister-3<br />
Entrepreneur<br /><ul><li>The term entrepreneur is derived from the French word ‘entreprendre’ which means ‘to undertake’.
It means the person who undertakes the risk of the new enterprise
In the 16th century the Frenchman who organized and led military expeditions were referred as Entrepreneurs</li></li></ul><li>According to Richard Cotillion<br /><ul><li>An entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain price (un- expected price)</li></ul>According to International Labor Organization (ILO)<br /><ul><li>Entrepreneurs as those people who have the ability to see and evaluate business opportunities, together with the necessary resources to take advantage of them and to initiate appropriate action to ensure success</li></ul>According to Peter F.Drucker<br /><ul><li>An entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, that means by which they exploit change as an opportunity for a different business or service</li></li></ul><li>Importance of Entrepreneurs<br />Nature/Characteristics of Entrepreneur<br />The importance of any entrepreneur is as follows:-<br /><ul><li>Develop new markets
Entrepreneur is a key player in economic progress
Entrepreneurs introduce new things in the economy
They are considered as the business leader and not as simple owner of capital.</li></li></ul><li>Finally to become successful entrepreneur one should have the following characteristics:-<br /><ul><li>Need to achieve (goals should achieve)
Business ethics refers to the application of ethics to business
Business ethics is a specialized study of moral right or wrong. It concentrates on moral standards as they apply to business policies, institutions and behavior</li></li></ul><li>Principles of Entrepreneurs Ethics<br /><ul><li>An Entrepreneur will think of themselves as a part of community not just ‘profit maker’
An Entrepreneur will treat the environment as a silent ‘stakeholder’, a party to which they are wholly accountable
An Entrepreneur will protect the privacy rights of the suppliers, customers and employees
An Entrepreneur will deliver what they promises, and promise what they can deliver</li></li></ul><li>Misconceptions about Entrepreneurs<br /><ul><li>Entrepreneurs are born and Entrepreneurship is Hereditary
Entrepreneurs are profit Hungry and Exploit(hard work done by Labor)
Entrepreneurship is monopoly (a market in which there are many buyers but only one seller )of certain communities</li></li></ul><li>Entrepreneurship<br /><ul><li>The Entrepreneurship was defined as ,” Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk taking appropriate to the opportunity and through the communicative and management skills to mobilize human, financial and material resources necessary to bring a project to successful”
According to A.H.Cole,” Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or maximize wealth, profit by production or distribution of economic goods and services
Production Evolution Process</li></li></ul><li>Product/Service Evolution Process<br /><ul><li>Before starting a product or service an Entrepreneur should follow the evolution steps in order to produce a product or provide a service</li></ul>Exploration <br />Screening<br />Business Analysis (risk/return/features/recommendations/creativity)<br />Development<br />Testing<br />Commercialization (full scale production )<br />
Problems of Entrepreneurship<br /><ul><li>Wrong surveys
Government Economic Policy (Assistance from Government)
Vision to Leave a Long Lasting Mark (Zeal to Innovate new product/Service)</li></li></ul><li>Indian Entrepreneurs<br />
Creating Indian Entrepreneurs <br /><ul><li>A recent Mckinsey & Company-Nasscom report estimates that India needs at least 8,000 new businesses to achieve its target of building a US$87 billion IT sector by 2008.
Similarly, in the next 10 years, 110-130 million Indian citizens will be searching for jobs, including 80-100 million looking for their first jobs.
This does not include disguised unemployment of over 50% among the 230 million employed in rural India.
Since traditional large employers- including the government and the old economy player-may find it difficult to sustain this level of employment in future, it is entrepreneurs who will create these new jobs and opportunities.</li></li></ul><li><ul><li>Today’s knowledge based economy is fertile ground for entrepreneurs, in India.
It is rightly believed that India has an extraordinary talent pool with virtually limitless potential to become entrepreneurs.
Therefore, it is important to get committed to creating the right environment to develop successful entrepreneurs.
To achieve this, India must focus on Four areas as follows……………….</li></li></ul><li>The Four Areas<br />Create the Right Environment for Success<br />Ensure that Entrepreneurs have access to the Right Skill<br />Ensure that Entrepreneurs have access to ‘Smart Capital’<br />Enable Networking and Exchange<br />
The Future of Entrepreneurship<br /><ul><li>Both the Central Government and various State Governments are taking increased interest in promoting the growth of entrepreneurship.
Individuals are being encouraged to form new businesses and are being provided such government support as tax incentives, buildings, roads, and a communication system to facilitate this creation process.
The encouragement by the central and state governments should continue in future as more lawmakers are realizing that new enterprises create jobs and increase the economic output of the region.
Every state government should develop its own innovative industrial strategies for fostering entrepreneurial activity and timely development of the technology of the area.
The states should have their own state-sponsored venture funds, where a percentage of the funds has to invested in the ventures in the states. </li></li></ul><li><ul><li>Society’s support of entrepreneurship should also continue.
This support is critical in providing both motivation and public support.
A major factor in the development of this societal approval is the media.
The media should play a powerful and constructive role by reporting on the general entrepreneurial spirit in the country highlighting specific success cases of this spirit in operation. </li>