Entrepreneurship

“Why is it so easy (for small companies) to

compete against giant corporations ? Because
while they (the giants) are studying consequences,
entrepreneurs are changing the world”

…….Howard Stevenson, Havard Business School

• Three years ago, Eastman Kodak, which brought photography to the
masses shut down. With over hundred years of history behind them,
they were the one to spark the passion of millions of photographers
around the globe with their instamatic camera and film rolls. They
created the first digital camera capturing black and white images at
the resolution of 0.1 megapixels on a toaster sized sensor. Despite
owing a large number of patents in photography, they could not
keep up with the changing market, and had to fall.
• Few brands, let alone a public sector one, has ever dominated an
Indian product market quite like HMT. The company became India’s
first indigenous watchmaker, albeit with some help from
Japan’s Citizen, in 1961. For the next three decades HMT reigned
over the Indian watch industry, sometimes with a market share of as
much as 90%.
• ALL empires contain the seeds of their
own destruction. The ideas on which they
were founded cannot adapt to changing
times. Their wealth creates bureaucracy
and complacency. Meritocracy gives way
to an introverted oligarchy that wastes its
talents vying for position within the
imperial court, rather than expanding the
empire's borders.
 The Age of the Entrepreneur
• A new business is born in the U.S. every
11 seconds.
• Study of influential Americans: THE
defining trend of the 21st century:
Entrepreneurship!
• One of every 25 adults is actively engaged
in trying to start a new business.
This is definitely a key trend for our generation," says Anirudh Suri, an
MBA from The Wharton School (University of Pennsylvania) class of 2012,
who currently runs an early-stage venture capital fund, The India Internet
Group.
Who is an entrepreneur ?
Both

– who starts the business….

– The one who runs the business ( survive ,
prosper and grow)
Do I have it me……………….
Dr. Manmohan Singh, once said: “No force
in world can stop an idea whose time has
come.”
• Says Vinay Goel, head of products at
Google India, “It is a conscious decision at
Google to hire people who possess an
entrepreneurial bent of character.
 Why Entrepreneurship is on
BOOM?.....
• Entrepreneurs as heroes
• Entrepreneurial Education
• Demographics and economics
• Shift to service economy
• Technological advancements
• Independent lifestyle
• E-commerce
• International opportunities
Jamsetji Nusserwanji Tata 3 March 1839 – 19 May 1904)
was an Indian pioneer industrialist, who founded the Tata
Group, India's biggest conglomerate company.
He devoted his life to four goals: setting up an iron and steel
company, a world-class learning institution, a unique hotel and a
hydro-electric plant.

(1904-07-29)29 July 1904

Born
Paris, France
29 November 1993(1993-
Died 11-29) (aged 89)
Geneva, Switzerland
Nationality Indian
Ethnicity Parsi
Former Chairman of Tata
Occupation
Group
Founder of TCS
Founder of Tata Motors
Known for Founder of Titan Industries
Founder of Tata Tea
Founder of Voltas
 Trends today…..
• Young Entrepreneurs
• Women Entrepreneurs
• Immigrant Entrepreneurs
• Minority Enterprises
• Part time Entrepreneurs
• Home based Entrepreneurs
• Family business
• Copreneurs
• Corporate castoffs
• Corporate droupouts
 Woman Entrepreneurs
The suicide of a close friend motivated the 19-year-old Shahnaz Husain
to start a business in ayurvedic cosmetic products and beauty training.
“While I was studying in London, this friend, who was also a successful
model, suffered burns on her body after using a sun tan lotion with
chemical base. The girl was so mentally traumatised that she committed
suicide soon after. That was when I decided, I’d work towards creating
cosmetics out of plants and herbs,” Ms Husain says.

Having majored in cosmetic chemistry, it was quite an effort for Ms

Husain to “unlearn” all that she had learnt from Helena Rubinstein and
Schwarzkopf. “I trashed salon treatment methods and products of those
times and offered a natural alternative based on the good health of the
skin and hair,” Ms Husain adds. Ms Husain started her venture in a very
small way, on the verandah of her home in Delhi. “I borrowed Rs 35,000
from my father to start the business. Subsequently, I expanded it on the
franchisee system,” adds Ms Husain.
At an age when her peers are looking at work opportunities or further studies, 20-year-
old Princy Goyal is already a CEO.

The recent BMS graduate from NM College is the founder of Kontor Space, a co-
working space that provides an ‘ecosystem’ which nurtures growth and provides
incubation for startups. Taking note of her passion and drive at such a young age, Goyal
was felicitated with the youngest woman entrepreneur award by Union Minister Nitin
Gadkari at the Maharashtra Gaurav Puraskar ..
 FRAMEWORK
FOR
ENTREPRENEURSHIP
NOT in a rush…………..
 10 DEADLY MISTAKES OF
ENTRPRENEURSHIP
1. Management Mistakes
2. Lack of experience
3. Poor Financial Control
4. Weak marketing efforts
5. Failure to develop strategic plans
6. Uncontrolled Growth
7. Poor location
8. Improper Inventory control
9. Incorrect pricing
10. Inability to make the Entrepreneurial transition
 Misconceptions About
Entrepreneurship

1. Successful entrepreneurship needs

only a great idea
2. Entrepreneurship is easy
3. Entrepreneurship is a risky gamble
4. Entrepreneurship is found only in small
businesses
5. Entrepreneurial ventures and small
businesses are the same thing
Why many DO NOT want to
go for it……..
 POTENTIAL DRAWBACKS OF
ENTREPRENEURSHIP
• Uncertainty of Income
• Risk of losing your entire Investment
• Long hour and Hard work
• Work-Life Balance
• High level of Stress
• Complete responsibility
• Discouragement
 ENTRPRENEURSHIP

…the creation of an innovative economIc

organization for the purpose of gain or
profit under conditions of risk and
uncertainty.
 What is Entrepreneurship?
• Entrepreneurship
– The process whereby an individual or group
of individuals use organized efforts to pursue
opportunities
– To create value and grow by fulfilling wants
and needs through innovation and
uniqueness
• regardless of personal resource situation.
 ENTREPRENEUR
…one who creates a new business in the
face of risk and uncertainty for the purpose
of achieving profit and growth by
identifying significant opportunities and
assembling the necessary resources to
capitalize on them.
 Types of Entrepreneurs
• Novice Entrepreneur
– Has no prior business ownership experiences as a
business founder, inheritor, or purchaser
• Habitual Entrepreneur
– Has prior business ownership experience
• Nascent Entrepreneur
– In the process of starting a new business
– Can be either a novice or a habitual entrepreneur
 Types of Entrepreneurs (cont’d)
• Serial Entrepreneur
– Has sold or closed an original business and
establishes another new business
– Continues the cycle of selling/closing and
establishing
• Portfolio Entrepreneur
– Retains an original business and builds a portfolio
of additional businesses
• Through inheriting, establishing, and purchasing the
businesses
Some traits
 Demographic Profile of
Entrepreneurs
• Family birth order and gender
– Tend to be “first born” and men more likely to
start businesses than women
• Work experience
– Prior entrepreneurial experience positively
correlated to being an entrepreneur
• Education
– Having a high school diploma sharply raises
odds of trying to start a business
• Entrepreneurial family
– Tend to have parents who were entrepreneurial
 Personality Profile of
Entrepreneurs
• Personality Characteristics Include:
– High level of motivation
– Abundance of self-confidence
– Ability to be involved for the long term
– High energy level
– Persistent problem solver
– High degree of initiative
– Ability to set goals
– Moderate risk taker

VIDEO LESSONS*****
 What Entrepreneurs Do
1. Initially, an entrepreneur is engaged in
assessing the potential for the entrepreneurial
venture,
– Then dealing with start-up issues
2. Once the entrepreneurial venture is up and
running,
– The entrepreneur’s attention switches to managing
the venture
Process for Entepreneurship
IDENTIFICATION AND EVALUATION OF THE OPPUTUNITY

DEVELOPMENT OF BUSINESS PLAN

DETERMINATION OF THE REQUIRED RESOURCES

MANAGEMENT OF THE RESULTING ENTERPRISE

 IDENTIFICATION AND EVALUATION OF THE
OPPORTUNITY

• Creation and length of opportunity

• Real and perceived value of opportunity
• Risk and returns of opportunity
• Opportunity Vs personal skills and goals
• Competitive situation
 Develop the Business Plan – Main Contents

• Description of Business
• Description of Industry
• Marketing Plan
• Financial Plan
• Production Plan
• Organizational Plan
 Determine the Resources Required

• Existing resources of entrepreneur

• Resource gaps and available supplies
• Access to needed resources
 Manage the enterprise

• Management Style
• Key variables for success
• Identification of problems and potential
Problems
• Implementation of control Systems
The Rewards and Challenges of Being an Entrepreneur