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Program on Educational Entrepreneurship

Module 1: Entrepreneurship-Setting The stage

What Motivates Entrepreneurs?
The Making Of An Entrepreneur- Paradigm Shift
Paradigm Busters

Management Consultant, Trainer and Visiting Professor
(0)9811030273, jm.pant@gmail.com

A presentation by J.M.Pant
What Motivates You?

A presentation by J.M.Pant
Brief Overview of Motivation
 The process of motivation

Inner state of
Disequilibria- Desired Goal
Gap in need, behaviour Accomplished
Desire or

Hygiene factors and motivators-

Awards, recognition, more
Responsibility, Power,
Achievement, Affiliation

A presentation by J.M.Pant
Brief Overview of Motivation

Entrepreneurial Leader

Energy Execution Cutting edge

Self Development, Self motivation

(Passion, Interest)

A presentation by J.M.Pant
Brief Overview of Motivation

Self fulfilment needs

Esteem Needs
Social Needs

Safety Needs

Physiological Needs

Motivational Needs (Maslow Hierarchy)

A presentation by J.M.Pant
Brief Overview of Motivation
• Achievement Motivation
• Desire for excellence, sets high
standards, prefers challenge.
• Likes to take moderate risks.
• Tends to persist in the face of adversity.
Uses failures as a learning experience.
• Self driven, takes initiative
• Enjoys autonomy and flexibility
• Hunger for more.
• Not satisfied, once goals are
achieved, sets higher goals.
• Wants feedback and learns from

A presentation by J.M.Pant
Brief Overview of Motivation

 Power Motivation
 Enjoys being in charge
 Strives to have influence over
 Prefers to be placed in competitive
and control oriented situations
 Tends to be more concerned with
prestige and gaining influence
over others than with effective

A presentation by J.M.Pant
Brief Overview of Motivation

 Affiliation Motivation
 Strives for friendship
 Prefers cooperative
situations rather than
competitive ones Kanwarias
 Desires relationships
with a high degree of
mutual understanding
Kumbh mela

A presentation by J.M.Pant
What Motivates An Entrepreneur?

 Goals
 Goals motivate people to
achieve them.
 A certain amount of stretch
and stress is motivating
 Absence of work, confused
goals and ‘no targets to
achieve’ is demotivating to
most people.

A presentation by J.M.Pant
What Motivates An Entrepreneur?
 Autonomy
 Making Money, Financial
 Opportunity to think innovatively,
desire to create something new,
most times from scratch
 Achievement, including achievement
of personal objectives
 Action, Doing something
 Not wanting to work for anyone else
 Desire to be one’s own boss
 Job satisfaction
 More opportunities
 Flexibility in work timings, choice of

A presentation by J.M.Pant
What Motivates An Entrepreneur?
 Thrill – excitement of
 Intellectual and physical challenge
 Contribution to society, nation,
 Outcome is not known and that
adds to excitement
 Entrepreneurship motivates just
like a person is motivated to play
sports or a game:
 Physical activity

 Creativity

 Social grouping

 Tension, unexpected results

A presentation by J.M.Pant
What Motivates An Entrepreneur?

 Locus of control
 An attribute indicating the sense of control a
person has over life
 Concern of entrepreneur
 Whether he or she will have the drive and energy
to overcome inertia in forming something new
 Energy to mange the new enterprise
 Are you internally or externally driven?
 Most successful entrepreneurs are internally
A presentation by J.M.Pant
What Motivates An Entrepreneur?
 Childhood family environment
 First born child receives special attention and develops more self
 Entrepreneurs tend to have self employed or entrepreneurial parents
 Entrepreneurs Family environment- supportive and encouraging
independence, achievement and responsibility
 Education
 Education is critical but not a formal, ‘degree’ focused education
 Entrepreneurs like to learn, explore, research, study what is interests
them and is useful for their enterprise.
 Personal Values
 Superior product quality
 Quality service to customers
 Flexibility
 Adapt to change
 High caliber leadership
 Ethics

A presentation by J.M.Pant
What Motivates An Entrepreneur?

 Age
 Age is not a factor for starting entrepreneurship
 What is important is energy, passion and drive
 Most entrepreneurs initiate entrepreneurial careers
between 22 to 45.
 Every five years or so, many people get an urge to become
an entrepreneur
 Experience
 Experience in similar area and relevant to business like
sales, finance, technology is beneficial
 Years not important, Quality of experience is
 Entrepreneurial experience- the best venture is generally
not the first one

A presentation by J.M.Pant
What Motivates An Entrepreneur?

 Role Models
 Individuals influencing entrepreneur’s career
choice and style
 Role models could be
 Successful entrepreneurs in India and globally
 Successful entrepreneurs from one’s community,
region, school, college/university
 Parents, in-laws
 Brothers or sisters
 Other relatives

A presentation by J.M.Pant
What Motivates An Entrepreneur?
 In your own business, you are all alone. It is lonely at the top.
 Need to establish support groups to keep the entrepreneur going
 Professional support network
 Individuals who help the entrepreneurs in business activities
 Mentors- coach, sounding board-for sharing problems and
 Business associates- suppliers, consultants, professionals,
customers, self employed individuals
 Trade associations
 Personal affiliations-clubs, alumni, sporting events, shared hobbies,
social networking sites
 Moral support network
 Having an understanding cheering crowd gives encouragement to
entrepreneur to persist through difficulties and problems
 Individuals who give psychological support to entrepreneurs
 Family and friends-a cheering crowd
 Spouse, friends, children, parents, uncles

A presentation by J.M.Pant
Negative Motivators
 Positive and Negative Motivators
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A presentation by J.M.Pant
Negative Motivators

 Bad experiences
 Dissatisfaction with job, boredom and frustration, no
 Loss of job
 Unable to get a job
 Conflict of ethics and values
 Lack of education
 Not having certified ‘degree’ education
 Circumstances forced one to give up on education
 Provocations
 Humiliation by friends, relatives, spouse/girl friend
 Being told you are not fit to do anything

A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
1. Identity Search
 Identity crisis
 Experiences dissatisfaction with present identity
 Discomfort in existing situation
 Could be lack of challenge, frustration and boredom,
less money, fight with boss, loss of job, VRS and so
 Exploration-look for ways of reducing the dissatisfaction
 Transitional stress-experiences conflicts and
apprehensions about the new identity

A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
1. Identity Search
 Search alternatives
 Searches entrepreneurial alternatives
 Uses professional and moral support network
 Deliberation- weighs pros and cons of each
 Choice- makes a tentative choice from amongst
the alternatives

A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur

2. Identity Formation
 Pre-enterprise preparation- makes preparation:
 Acquiring relevant knowledge, skills etc
 Gains relevant experience
 Meets experts
 Enterprise building-takes steps towards
establishment of an enterprise
 New Identity- acquires new identity of an

A presentation by J.M.Pant
Paradigm Shift-Process of Making of
an Entrepreneur
3. Identity Establishment
 Enterprise management- begin to manage the
 Role stress- experiences entrepreneur conflict and
 Identity integration- identifies with other entrepreneurs
 Linkage building- establishes linkages with other
entrepreneurs and support systems for effective

A presentation by J.M.Pant
Paradigm Busters

 Michael Dell, Dell Inc.

 Changed the rules of the PC business by

eliminating intermediaries and pioneering a

low inventory made-to-order model.
 Herb Kelleher, South West Airlines
 Introduced the concept of low cost flying and
served it up with a dash of fun, and warm on-
board service

A presentation by J.M.Pant
Paradigm Busters

 Howard Schultz, Starbucks

 Through a combination of clever marketing
and vision, turned the coffee bar into an
upscale must-have experience
 Jeff Bezos, Amazon.com
 Most successful online retailers in the face of

skepticism about selling on the internet.

A presentation by J.M.Pant
Paradigm Busters
 Sam Walton, Wal Mart
 His relentless focus on low cost leading to ‘every
day low prices’ strategy that’s retailing benchmark
 Ajay Bijli, PVR Mutiplex
 Introduced multiplexes when single screen
cinema halls were the convention.
 Better ambience, advanced sound system, latest
English and Hindi movies, on-line ticketing,
comfortable viewing.
 Even with twice the existing price.

A presentation by J.M.Pant
Paradigm Busters

 C.K.Ranganathan, CavinKare
 Stormed the FMCG sector by constant
innovation in packaging, distribution and
 Launch of Spinz talc in 20g, 50, 100g, 400g in
1997 just after 1996 world cup (spinz from
‘spin’), Spinz deodarants, Nyle creams,
Natural Fairever, Meera herbal shampoo in
8ml, 25 ml and 100 ml, and so forth.
 Satchets and small packings made it
convenient for frequent travellers.
A presentation by J.M.Pant
Paradigm Busters
 Kishore Biyani, Future group -
Pantaloon and Big Bazar
 Started as a trouser manufacturing unit, Pantaloon has
become a big retail company.
 Changed the face of retail business in India.From
fashion to food to furniture to real estate to stationery to
finance – everything under one umbrella.
 K V Kamath, CEO ICICI
 Change the rules of banking making it like FMCG: ATMs,
personal, consumer and auto loans for mass.
 Expanding the model to rural areas.

A presentation by J.M.Pant
Paradigm Busters

 Over time we take paradigm shift for granted.

We forget how business was done before.
 A good start is never enough- innovation has
to be continuous.
 For reigning incumbents will hit back plus
there are copycats.

A presentation by J.M.Pant
Paradigm Busters

 Robert Frost ‘ I took the road less travelled by, and

that has made all the difference’.
 Paradigm shifters are more risk friendly.
 They have a big dream.
 Failures don’t deter them- it makes them hungrier.
For example, Biyani’s initial set of failures (flopped
films, managing Hanse Cronje, initial failures in
Pantaloon and Big Bazar)
 Air Deccan’s inaugural flight-one engine caught fire
 No journey is complete without pitfalls.

A presentation by J.M.Pant
Paradigm Busters
 <Examples>
 Reliance Industries – started in 1966 as a small
textile manufacturer. Now it ranks among one of the
world’s largest oil and gas companies.
 Suzlon energy- Tulsi Tanti started a textile mill in
Gujarat……ran into problems because of erratic
power supplies and rising energy costs.
 Set up two windmills in 1990 with turbines imported
from a German company. Suzlon is now one of the
world’s fastest growing wind energy equipment
 What would have happened if both had continued
with textiles is anyone’s guess.

A presentation by J.M.Pant
Paradigm Busters
 <Examples>
 Business stuck in sunset industries must
radically overhaul their business.
 Wipro- Azim Premji’s initiative transformed a
family run vegetable oil firm into a major IT
services and products supplier.
 Max India- stared as pharma company,
acquired telecom licence, sold telecom
business, entered into insurance and
healthcare segment.

A presentation by J.M.Pant
Making the shift
 Paradigm shift
Company Original Business Current Business
Reliance Textiles Oil, petrochemicals, real
estate, infrastructure-
power, communication
Suzlon Energy Textiles Wind energy generation
Wipro Vegetable Oil IT
Max India Drug manufacturer Insurance and health care
Unitech Construction Real Estate development
GMR Infrastructure Textiles Infrastructure
ICICI Development Banking, insurance, stock
financing trading, financial services

A presentation by J.M.Pant
A presentation by J.M.Pant