INTRODUCTION TO ENTREPRENEUR & ENTREPRENEURSHIP

Entrepreneurship process consists of the following steps- IDENTIFY AN OPPORTUNITY

ESTABLISH VISION / AIM

PERSUADE OTHERS GATHER RESOURCES

Cont
1. FINANCIAL The usual options would be-

- PERSONAL SAVINGS - FAMILY FRIENDS - PARTNERSHIPS - BANKS - FLOATING PUBLIC ISSUES.

2. OPERATING RESOURCES Two Types Tangible & Intangible

Tangible Operating Resources consists- PREMISES - TRANSPORT - PRODUCTION EQUIPMENTS - RAW MATERIALS - OFFICE EQUIPMENTS. etc

- Intangible Operating resources would include- LINKAGE WITH SUPPLIERS - OPERATING PROCEDURES (Total Quality Mgt. approaches) - MANAGEMENT - COMPANYS IMAGE.

3. HUMAN RESOURCES - What staff are required ?

- Will they be full time, part time or contracted. - How will they be recruited ? - How the staff will be retained ? - How the staff will be rewarded ? - What are the legal issues for employing people ? - Will we need to develop their knowledge & skills through training or education?

Cont
CREATE NEW VENTURE - CHANGE/ADAPT WITH TIME

IMPORTANCE & SCOPE OF ENTREPRENEURSHIP

- IMPORTANT FOR A COUNTRY LIKE INDIA WITH PROBLEMS OF POPULATION, UNEMPLOYMENT & UNDEREMPLOYMENT. - NUMEROUS OPPORTUNITIES FOR GROWTH & SELF DEVELOPMENT. - REMOVES MONOPOLY & BALANCE REGIONAL DEVELOPMENT. - MONETRAY REWARDS ARE GREATER. - ENTREPRENEUR ENJOYS POWER OF DECISION MAKING.

Cont.
OPPORTUNITIES FOR SELF EXPRESSION & REALIZATION OF ONES PASSION FOR DOING SOMETHING NEW & DIFFERENT.

CHARACTERISTICS/TRAITS OF AN ENTREPRENEUR
SELF CONFIDENCE & OPTIMISTIC HARD WORKING RISK TAKING- Able to take calculated risk Financial Risk - Career Risk Psychological Risk INNOVATIVE COMMUNICATION SKILLS GOOD ORGANIZER FORESIGHT DYNAMIC LEADER

cont
FLEXIBLE & ABLE TO ADAPT RESPONSIVE TO SUGGESTIONS ENERGETIC & EFFICIENT VERSATILE KNOWLEDGE ABLE TO GET ALONG WITH OTHERS. RESPONDS POSITIVELY TO CHALLENGE CLARITY OF OBJECTIVES.

Cont.
Knowledgeable of Markets. Dynamic Leader. Total commitment towards work. Technical Knowledge. Initiative approach. Perceptive with foresight.

CLASSIFICATION OF ENTREPRENEURS
BASED ON OWNERSHIP- FOUNDER OR PURE ENTREPRENEURS. - SECOND GENERATION OPERATORS OF FAMILY OWNDE BUSINESSES - OWNER-MANAGERS.

 BASED ON PERSONALITY TRAITS & THE STYLE OF RUNNING THEIR BUSINESS- PERSONAL ACHIEVER - INDUCED ENTREPRENEUR - EXPERT IDEA GENERATOR BASED ON TYPE OF BUSINESS - BUSINESS ENTREPRENEURS - TRADING ENTREPRENEURS

- INDUSTRIAL ENTREPRENEUR AGRICULTURAL ENTREPRENEUR BASED ON USE OF TECHNOLOGY- TECHNICAL ENTREPRENEUR. - NON-TECHNICAL ENTREPRENEUR. BASED ON MOTIVATION- PURE ENTREPRENEUR - INDUCED ENTREPRENEUR

- SPONTANEOUS ENTREPRENEUR. OTHER KINDS OF ENTREPRENEUR- MODERN ENTREPRENEUR - CLASSICAL ENTREPRENEUR - INNOVATIVE ENTREPRENEUR - IMITATIVE ENTREPRENEUR - FABIAN ENTREPRENEUR

BARRIERS TO ENTREPRENEURSHIP
NON-AVAILABILITY OF RAW MATERIALS NON-AVAILABILITY OF REQUIRED HUMAN RESOURCES. MACHINERY. LAND & BUILDING. OTHER INFRASTRUCTURE REQUIRED FINANCIAL BARRIERS PERSONAL BARRIERS - LACK OF CONFIDENCE

- LACK OF DEPENDABILITY ON OTHERS. - LACK OF MOTIVATION. - LACK OF PATIENCE. - INABILITY TO DREAM/SET AIM/TARGET. - SENSE OF PRIDE OR EMBARRASSMENT.

INTRAPRENEURSHIP
The term Intrapreneur emerged in 70s. THE IDEA & IMPLEMENTATION OF NEW PRODUCTS & SERVICES BY EXECUTIVES INTO THE ORGANIZATION FOR ITS GROWTH & DEVELOPMENT IS INTRAPRENEURSHIP. - COMPANIES PROVIDE ENOUGH OPPORTUNITIES, FINANCIAL & TECHNICAL ASSISTANCE TO INTRAPRENEURS NECESSARY FOR DEVELOPMENT & APPLICATION OF THEIR IDEAS.

THE IDEA & IMPLEMENTATION OF NEW PRODUCTS & SERVICES BY EXECUTIVES INTO THE ORGANIZATION FOR ITS GROWTH & DEVELOPMENT IS INTRAPRENEURSHIP. - COMPANIES PROVIDE ENOUGH OPPORTUNITIES, FINANCIAL & TECHNICAL ASSISTANCE TO INTRAPRENEURS NECESSARY FOR DEVELOPMENT & APPLICATION OF THEIR IDEAS.

CHARACTERISTICS OF INTRAPRENEURS
TAKE NEW IDEAS & TURN THEM INTO PROFITABLE Realities. HAVE VISION & COURAGE TO REALIZE . ABILITY TO IMAGINE BUSINESS REALITIES & FOLLOW FROM THE WAY COUSTOMERS RESPOND TO THEIR INNOVATIONS. ABILITY TO PLAN NECESSARY STEPS FOR ACTUALIZATION OF IDEAS.

Characteristics of Intrapreneurs
ABILITY TO TAKE CALCULATED RISKS & HIGH NEED FOR ACHIEVEMENT. DEDICATED TO WORK & SHUT OUT OTHER CONCERNS INCLUDING FAMILY LIFE.

DISTINCTION B/W ENTREPRENEUR & INTRAPRENEUR

ENTREPRENEUR IS THE OWNER OF THE BUSINESS IS INDEPENDENT RAISES THE REQUISITE CAPITAL HIMSELF BEARS THE FULL RISKS OF BUSINESS CONVERTS THE IDEAS OF INTRAPRENEUR INTRAPRENEUR WORKS FOR THE BUSINESS SEMI-INDEPENDENT DOES NOT RAISE ANY CAPITAL DOES NOT BEAR ANY RISKS OF BUSINESS. CREATES IDEAS

Differentiation contd
ENTREPRENEURS GUARANTEES THE MONEY TO SUPPLIERS IN A TIME PERIOD. ENTREPRENEURS OPERATE FROM OUTSIDE AN ORGANIZATION UNLESS TECHNICALLY QUALIFIED. NO SUCH GUARANTEE CAN BE GIVEN BY INTRAPRENEURS.

INTRAPRENEUR OPERATES FROM WITHIN THE ORGANIZATION.

ENTREPRENEURIAL MOTIVATION
MOTIVATING FACTORS A) FACTORS INTERNAL TO THE ENTREPRENEUR 1) STRONG DESIRE TO DO SOMETHING INDEPENDENT IN LIFE. 2) TECHNICAL KNOWLEDGE/MANUFACTURING EXPERIENCE.

3) BUSINESS EXPERIENCE IN THE SAME/RELATED LINE. B) FACTORS EXTERNAL TO THE ENTREPRENEUR 1) FINANCIAL ASSISTANCE FROM INSTITUTIONAL SOURCES. 2) ATTITUDE OF GOVT.TO HELP NEW UNITS.

Entrepreneurial Motivation contd.

3) FINANCIAL ASSISTANCE FROM NONGOVT.SOURCES. 4) HEAVY DEMAND. 5) PROFIT MARGIN. 6) Encouragement from big business houses. According to B.Murthy,studied and classified motivating factors for entrepreneurs into three types: C) ENTREPRENEURIAL AMBITIONS 1) TO MAKE MONEY.

Entrepreneurial Motivation contd.

2) TO CONTINUE FAMILY BUSINESS. 3) TO SECURE SELF EMPLOYMENT/INDEPENDENT LIVING. 4) TO FULFIL DESIRE OF SELF/WIFE/PARENTS. 5) TO GAIN SOCIAL PRESTIGE. 6) OTHER AMBITIONS TO MAKE DECENT LIVING, SELFEMPLOYMENT OF CHILDREN, DESIRE TO DO SOMETHING CREATIVE, PROVIDE EMPLOYMENT TO OTHERS.

2nd Type:
D) COMPLELLING REASONS 1) UNEMPLOYMENT. 2) DISSATISFACTION WITH THE JOB SO FAR HELD. 3) MAKE USE OF IDLE FUNDS. 4) MAKE USE OF TECHNICAL/PROFESSIONAL SKILLS. 5) OTHERS- MAINTENANCE OF LARGE FAMILIES, REVIVAL OF SICK UNIT STARTED BY FAMILY,ETC.

3rd Type
E) FACILITATING FACTORS A) SUCCESS STORIES OF ENTREPRENEURS B) PREVIOUS EXPERIENCE (Experience in the same or other line of activity) C) PROPERTY INHERITED/SELF ACQUIRED. D) ADVICE OR INFLUENCE (Encouragement) OF FAMILY MEMBERS/RELATIVES/FRIENDS.

- To develop & strengthen entrepreneurial quality & motivation. - To select the right project & product. - To formulate the effective & profitable project. - To understand process, procedure , rules & regulation for setting-up the project. - To know the sources of help , incentives & subsidies available from govt. to set-up the project.

FUNCTIONS OF AN ENTREPRENEUR1) PERCEIVING MARKET OPPORTUNITIES. 2) PURCHASING INPUTS & RESOURCES. 3) MARKETING OF PRODUCTS & RESPONDING COMPETITION. 4) DEALING WITH THE PUBLIC BUREAUCRACY (Concessions, licences, Taxes, etc.) 5) MANAGING HUMAN RELATIONS WITHIN THE FIRM.

6) MANAGING CUSTOMER & SUPPLIER RELATIONS. 7) MANAGING FINANCE. 8) MANAGING PRODUCTION (Control by written records, Supervision, coordinating input flows with orders, maintenance ) 9) UPGRADING PROCESS & PRODUCT QUALITY.

10) INTRODUCING NEW PRODUCTION TECHNIQUES & PRODUCTS. 11) SECURING ADEQUATE FINANCIAL RESOURCE, RELATIONS WITH EXISTING & POTENTIAL INVESTORS. 12) DEVISING OF NEW PRODUCTS TO MEET OR ANTICIPATE CONSUMER DEMAND.

13) MAINTENANCE OF GOOD RELATIONS WITH PUBLIC AUTHORITIES . 14) DETERMINATION OF OBJECTIVES/PROCEDURES & CHANGE OF THESE PROCEDURES OR OBJECTIVES AS CONDITIONS REQUIRED OR MADE ADVANTAGEOUS. 15) REQUISITION OF EFFICIENT TECHNOLOGICAL EQUIPMENT & REVISION OF IT AS NEW MACHNERY REQUIRED.

16) DEVELOPMENT OF ORGANIZATION INCLUDING EFFICIENT RELATIONS WITH SUBORDINATES & ALL EMPLOYEES.

ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

- A Programme designed to help a person in strengthening his entrepreneurial skills , enhancing the motivation, knowledge & skills of potential entrepreneurs & assisting them in developing their own ventures. NEED FOR EDPs- Eliminates Poverty & Unemployment. - Balanced Regional Development. - Prevents Industrial Slums.

- Harnessing Locally Available Resources. - Defuses Social Tension. OBJECTIVES OF EDPs- To identify & train potential entrepreneurs. - To impart basic managerial understanding. - To develop develop necessary knowledge & skills among participants.

- To acquire basic managerial skills to run the project effectively. - To know the pros & cons of being an entrepreneur.

WHO REQUIRES EDP ??

1. 2. 3. 4. 5. Business executives Technical and other qualified group Women entrepreneurs Ex-servicemen Weaker sections of the society