Entrepreneurship

Unit – 02
Dr. L.R.S. Mani
Characteristics
 Vision
of an Entrepreneur
 Knowledge
 Desire to succeed
 Independence
 Optimism
 Value Addition
 Leadership
 Hardworking
 Desire to have control over their own fate
 Risk-Taking Ability
Qualities of Successful Entrepreneurs
1. Good health
2. Self control
3. Goal setting
4. Self confidence
5. Sense of urgency
6. Comprehensive awareness
7. Realistic
8. Conceptual ability
9. Interpersonal relationship
10. Common sense
11. Specialized knowledge of particular field
Qualities of Successful Entrepreneurs
12. Emotional stability
13. Opportunity sensing capability
14. Clarity of vision
15. Commitment
16. Leadership skills
17. Flexibility and adaptation
18. Risk taking capacity
19. Uncertainty handling ability
20. Ability to get things done
21. Creativity
22. Self reliance
Entrepreneur’s competency

• Time, effort and skills

• Passion, conviction and commitment
• Market savviness
• Resource generation and management
Skills Required by Entrepreneurs
• Technical skills

• Business management skills

• Personal entrepreneurial skills

Technical Skills
• Written communication
• Oral communication
• Monitoring environment
• Technology
• Ability to organize
• Network building
• Management style
• Coaching
• Being a team player
Business Management Skills
• Planning and goal setting
• Decision making
• Human relations
• Marketing
• Finance
• Accounting
• Negotiation
• Venture launch
• Managing growth
Personal Entrepreneurial Skills

• Inner control/Discipline
• Risk taker
• Innovative
• Change oriented
• Persistent
• Visionary leader
• Ability to manage change
Skills and Qualities of Successful
Entrepreneurs
1. Assertiveness
• Assertiveness is the ability to express one’s thoughts and views in a manner that
clearly states one’s needs and keeps the lines of communication open. The
entrepreneur is able to confront the issues with others working with him directly
and also reprimand those who fail to perform as expected.
2. Build an organization
• Organization building is one of most critical skill to become a successful
entrepreneur. Though it is the entrepreneur who drives the enterprise, he/she
cannot do everything on their own. They need to identify talents and build a
proper organization that can deliver results.
Skills and Qualities of Successful
Entrepreneurs
3. Creativity
• Creativity is the ability to think out of the box and come forward with different
approaches to solve the same problem. One or two creative ideas by an
entrepreneur can do wonders for them.
4. Communication Skills
• An entrepreneur has to be reasonably good in written communication, spoken
communication and listening skills.
5. Decision making skills
• It is all about analysing a situation, identify and evaluate various options and
finally take optimal decisions.
Skills and Qualities of Successful
Entrepreneurs
6. Human Relations
• Entrepreneurs do depend on people working in their enterprise and hence
develop skills to deal with people, treat them as partners. Only by keeping
employees happy, the customer satisfaction can result. Happy employees
produce happy customers.
7. Initiative
• An entrepreneur takes initiative to go beyond the requirements. They take
initiative to start a new venture or actions required to expand the business to new
areas and products and services.
8. Inner Control
• One important requirement for an entrepreneur to succeed is the inner control
and self-discipline of the entrepreneur.
Skills and Qualities of Successful
Entrepreneurs
9. Justice and Fairness
• To-day, we talk of entrepreneurship and ethics going together. Entrepreneurs should
practice ethical codes to demonstrate Justice and Fairness in all their actions.
10. Killer Instinct
• Entrepreneurs always strike at the right moment and are committed to take the tasks to
conclusion. They have the instinct to ensure no one gives up midway.
11. Leadership Skills
• Successful entrepreneurs are capable of leading people and get work done by them.
They use a combination of various methods such as Effective Planning, Motivation and
Evaluation to lead people working with them. They should give the feeling to the
employees that they are working with the entrepreneur and not for or under an
entrepreneur.
Skills and Qualities of Successful
Entrepreneurs
12. Marketing Skills
• Entrepreneurs have to develop Marketing skills right in the beginning. The
enterprise can survive and grow only if the customers are there. Hence, it is very
important to identify who are the customers and what are their needs.
13. Network Building
• As an entrepreneur, one has to build network of people who can support the
venture in the capacity of Investors, Suppliers, Sub-Contractors and Customers.
14. Opportunity Sensors
• Entrepreneurs constantly look out for opportunities in the external environment
and utilize their strengths to exploit those opportunities.
Skills and Qualities of Successful
Entrepreneurs
15. Problem solving
• All successful entrepreneurs have shown remarkable problem solving skills.
Entrepreneurs need to develop the sense of anticipating future events and be ready with
solutions in advance.
16. Quality Orientation
• One thing all successful entrepreneurs have in common. It is their priority for maintaining
Quality. Those ventures not giving weightage to Quality of their product or service have
survived only in the short term.
17. Risk Taking ability
• Entrepreneurs need to develop the sense of anticipating changes in future and assume
calculated risks based on the same.
Skills and Qualities of Successful
Entrepreneurs
18. Clear Objectives
• An entrepreneur should have clear goals which should be in line with the nature
and goals of the business. A successful entrepreneur should have the main
objectives as establishing the product or service in the market, make profits for
the enterprise and also discharge the social responsibilities.
19. Mental Ability
• An entrepreneur must be intelligent and also possess an analytical bent of mind.
A successful entrepreneur should be able to anticipate changes and make
decisions in different situations.
20. Business Secrecy
• Entrepreneurs should understand the importance of confidentiality and not
disclose such information.
Behavioral Factors
• People with high achievement motivation are pulled towards
entrepreneurship.
• People with high need for achievement prefer personal
responsibility for decisions and are moderate risk takers.
Behavioral Traits of Entrepreneurs
1. Drive, Enthusiasm and Energy
• Most entrepreneurs possess that inner drive, are highly enthusiastic and
display boundless energy to accomplish their mission.
2. Low fear of failure
• Most entrepreneurs are not afraid of failures. If they fail, they try and try again
3. Self confidence
• Most entrepreneurs are people with high degree of self confidence. They believe
in their capabilities and are confident that they will succeed in their ventures.
4. Internal focus of control
• They display a sense of self-motivated behaviour. Their inner urge and taking
control of their activities are common in many entrepreneurs.
Behavioral Traits of Entrepreneurs
5. Dexterity
• An entrepreneur is a person having particular skills and at the
same time providing motivation for others. A successful
entrepreneur tends to possess that special skills which sets
them apart from average people.
6. Action Oriented
• An entrepreneur is both a planner and a doer , dreamer and
achiever. Successful entrepreneurs are always action oriented.
Motives and Drive to take up
Entrepreneurship
• Some entrepreneurs are driven by extrinsic motivation factors such
as getting rich, wielding power and fulfilling parent dreams. Many
entrepreneurs focus on satisfying their internal interests and desires.
The best and successful leaders and entrepreneurs follow their
intrinsic rather than extrinsic motivation.
• Harvard leadership expert and best selling author in his book,
“Discover your True North” puts forward his argument that the
serious and successful entrepreneurs follow their intrinsic rather than
extrinsic motivation. He also emphasizes the value of finding ways
and approaches to align one’s strengths with intrinsic motivations,
which he calls the “Sweet Spot”
Intrinsic Motivators
• Wanting to be different from others and make a difference.
Henry Ford, with his concept of mass production and assembly line, made a huge
difference in U.S. society by offering cars that is affordable by common people in U.S. at
that time. Dr Devi Shetty of Narayana Hrudayalaya made heart surgery affordable by
improving the productivity of doctors and other staff.
• Find personal meaning from building a business
Instead of focusing on making money, they focus on finding specific meaning in what they
undertake. Elon Musk is a classic example of his ventures Space X and Hyperloop.
• Personal satisfaction of doing something what one loves.
Many of the technology start ups in Bangalore fall under this category. Mindtree and
Happiest Minds are some examples of persons working with a software firm coming out and
starting their own ventures.
Intrinsic Motivators
• Achieving happiness by helping others to achieve their goals.
Entrepreneurs believe that in order to achieve their goals, they have to help others to
achieve their goals. Elon Musk has opened up Tesla Car battery patents for use by others,
which will not only benefit others but also benefit his business.
• Sense of freedom and independence
Entrepreneurs do not want to be bogged down by authority relationships and interference.
They want to be their own boss and do things their own way.
• Personal accomplishment
Entrepreneurs have a thirst for knowledge that helps them in their personal growth as well
as the business growth.
• Change the world around through their vision
Through their vision for the future, they want to change the world around them.
Extrinsic Motivators
• Wealth Creation
Entrepreneurs want to build wealth which is not possible in a
traditional corporate career. They want to enjoy an unlimited income.
• Leaving a legacy behind for their children
They want to make money to the extent of leaving a legacy behind for
their children and grand children.
• Power and Leadership
Some entrepreneurs are thrilled when they are recognized as good
leaders and are able to wield power over others.
Extrinsic Motivators
• Support from Government
• Support from Financial Institutions
• Financial supports from NGOs
• Latest technology availability
Careers in Entrepreneurship
• The field of entrepreneurship offers distinct opportunities , pose
difficult challenges and also provide rewarding benefits. A
career in entrepreneurship can be made in virtually any area,
depending on the interests and far – sightedness of the
entrepreneur.
• A career in entrepreneurship spans commercial bankers,
franchise outlets and consultancy. In the last few years ,
opportunities have been growing in IT and other technology
areas.
The Entrepreneurial Decision Process
Decisions for a Potential Entrepreneur

Form new enterprise

Change from present Desirable
Lifestyle. Cultural
Work environment Sub cultural
Disruption. Family
Teachers
Peers
Possible
Government
Background
Marketing
Financing
Role models
The Entrepreneurial Decision Process
• Change from present lifestyle – wanting to do something new
and different, retired persons, relocated persons, VRS, those
after doing advanced course and not getting promotion.
• Decision to start a new enterprise occurs when an individual
perceives that forming a new enterprise is both desirable and
possible.
• Desirable – results from an individuals’ culture, subculture,
family, teachers, peers etc.
e.g. American culture – Independence , being one’s own boss.
The Entrepreneurial Decision Process
• Possible – Government provides infrastructure to support a new
venture. Background in terms of formal education and previous
business experience. Understanding of markets, how to take
care of Four Ps. Financial resources availability, Savings, Credit
etc. Availability of Risk capital.
The Entrepreneurial Process
1. Identification and evaluation of the opportunity - A
2. Development of the business plan - B
3. Determination of required resources - C
4. Management of resulting enterprises - D
The Entrepreneurial Process

A B C D
•Opportunity •Description of •Determine •Develop
assessment business resources needed management style
•Creation & length •Description of •Determine •Understand key
of opportunity industry existing resources variables for
•Real & perceived •Technology plan •Identify resource success
value of •Marketing plan gaps and •Identify problems
opportunity •Financial plan available and potential
•Risk & returns of suppliers problems
•Production plan
opportunity •Develop access •Implement
•Organization plan to needed control systems
•Opportunity vs
personal skills & •Operational plan resources •Develop growth
goals •Summary strategy
•Competitive
environment
The Entrepreneurial Process
• Identification and Evaluation of the Opportunity -- The process
by which an entrepreneur comes up with the opportunity for a
new venture.

• Development of the Business Plan -- The description of the

future direction of the business
The Entrepreneurial Process
• Determination of required resources – The resources needed
must be determined by first appraising the present resources
and also differentiating the critical resources.

• Management of resulting enterprises – After acquiring the

resources, the entrepreneur uses them to implement the
business plan. A control system must also be established.
The Entrepreneurial Process
Stage 1- Preliminary steps
• Ability to make right decisions affecting the company and searching for a
business opportunity and also collecting information from all available sources.
State 2 – Decision making steps
• Decisions concerning acquiring permission from the relevant authorities
• Decisions regarding acquisition of funds from banks and financial institutions.
• Decisions pertaining to development of Preliminary Project Report (PPR)
• Decisions about arranging all resources such as land and building, machinery ,
materials , labor , fuel , water supply , electrical energy etc.
The Entrepreneurial Process
Stage 3 – Planning steps
• Plans for creating infrastructure
• Approaching authorities for environmental clearance
• Applying for license if required
• Applying for water and electric connection
• Preparing the Detailed Project Report (DPR)
• Planning for machineries and other equipments
The Entrepreneurial Process
Stage 4 – Implementation Steps
• Installing plant and machineries
• Planning and recruiting human resources
• Initiating production and operation process
Stage 5 – Managerial steps
• Policy and strategy formulation
• Pricing policies
• Managing the partners such as suppliers , wholesalers and retailers
• Advertisement and promotion
• Managing warehousing and distribution