Entrepreneurship & Small Business Management

Prof. Maulik Thaker

Scope

Who is entrepreneur? Is entrepreneur an inventor? All commercialized ideas/items came from entrepreneurs! What is Entrepreneurship?

What is an Entrepreneur?

An Entrepreneur (ahntra pra nur) is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur. Our defination: Individual who leads the undertaking venture with innovative idea or activities for sake of profit making or social benefit.

Our

defination: Individual

Entrepreneur who?
He is a person who develops and owns his own enterprise He is a moderate risk taker and works under uncertainty for achieving the goal. He is innovative He peruses the deviant pursuits Reflects strong urge to be independent. Persistently tries to do something better. Dissatisfied with routine activities.

Prepared to withstand the hard life.

Determined but patient Exhibits sense of leadership Also exhibits sense of competitiveness Takes personals responsibility

Oriented towards the future.

Tends to persist in the face to adversity Convert a situation into opportune

Academic Definition:

Our Definition:

An Entrepreneur (ahntra pra nur) is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur.

An entrepreneur is enterprise, moderate riskAn Entrepreneur who starts and/or run an enterprise taker, innovative, CEO/MD, Opportunist, with innovative way, vision & leadership and a motive Independent, hardworking, good manager, of honest, earning profit by taking moderate risk discovery of market, sake of making profit,

Entrepreneur vs. Inventor

Thomas Edison Vs. Albert Einstein Great ideas are a dime a dozen. Action is what differentiates an entrepreneur from an inventor. Being an entrepreneur has more to do with a state of mind than a state of employment. Entrepreneurs spend more time on business plans than just about anything else. But business plans are often useless, even counterproductive; the old adage that "planning is everything; plans are nothing The important thing is the process of planning but you also have to be willing to throw out that plan. The single biggest advantage you have as a start-up versus an established business is your ability to be nimble, to act, to change. If you're beholden to your ideas or to your business plan, you will fail.

Type of Entrepreneurs

1. Adviser: Some entrepreneurs are 6. Entertainer/Host: If you thrive on paid for giving advice, such as lawyers, being with people, you may find an accountants, and financial advisers. entrepreneurial opening in the hospitality industry or service industries 2. Administrator/Organizer: Like such as hairdressing. Or you may be organizing? You can plan weddings, an entertainer, actor, musician, or oversee projects, or take care of singer. accounts, databases, and order fulfilment.

3. Builders/Creators: Artists, bakers, carpenters, and designers are examples of entrepreneurs driven to create something tangible where it did not exist before. 4. Caretaker: People with a helping personality find opportunities taking care of people, plants or property. 5. Communicator/Trainer: If you can transmit information or communicate in different languages you might find

7. Investor/Owner: If you have money to invest you can put your capital to work for you investing in stocks, real estate or businesses. 8. Seller: This covers salespeople and brokers in our purchases, from real estate to insurance to art. 9. Technologist/Engineer: If you love figuring out computers, autos and engines, you may want to explore entrepreneurial opportunities in software development, engineering or technology.

Entrepreneurship
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A theory of evolution of economic activities. A continuous process of economic development. An ingredient to economic development. Essentially a creative activity or an innovative function. A risk taking factor which is responsible for an end result. Usually understood with reference to individual business. The name given to the factor of production, which performs the functions of enterprise. Creates awareness among people about economic activity.

Three Aspects of Entrepreneurship

1. The identification/recognition of market opportunity and the generation of a business idea (product or service) to address the opportunity

Three Aspects of Entrepreneurship

2. The marshalling and commitment of resources in the face of risk to pursue the opportunity

Three Aspects of Entrepreneurship

3. The creation of an operating business organization to implement the opportunity-motivated business idea

Aspect of Entrepreneurship (2nd thought)

We would first have productive entrepreneurship. This would include those activities identified by Schumpeter with the possible addition of a few additional types of combinations. Then we might think of unproductive entrepreneurship. Firms can base their profits on a special relationship to government or a special provision of the law that favors them. Think of "crony capitalism." Some people term this type of activity, "rentseeking." You might even think of corruption as fitting in here. If the formal institutions of a country worked well, none of these type of activities could exist. What is also clear is that the opportunities for unproductive entrepreneurship could pull some individuals away from productive entrepreneurship. There is less risk. If we can have unproductive entrepreneurship, might there not be destructive entrepreneurship? We might even call the people who engage in this type of entrepreneurship criminals. Is crime a matter of passion, or just a matter of work? Think of drug dealers.

Entrepreneurship
Some
You

advantages

are your own boss Enjoy the profits from you efforts Sense of pride in your business Flexibility in your work schedule

Entrepreneurship
Some

disadvantages

Will need to put in long hours Need money to start Have to keep up with government rules and regulations May have to mark hard decisions (hiring, firing, etc.) May lose money

What motivate entrepreneurs?

Corporate Entrepreneurship

Type of Entrepreneurship
1. Small Business Entrepreneurship There are 5.7 million small businesses in the U.S. They make up 99.7% of all companies and employ 50% of all nongovernmental workers. In India 41% in Urban India are Self-Employed. 2. Scalable Startup Entrepreneurship are variants around their core products. Changes in customer tastes, new technologies, legislation, new competitors, etc. can create pressure for moredisruptive innovation requiring large companies to create entirely new products sold into new customers in new markets. Existing companies do this by either acquiring innovative companies or attempting to build a disruptive product inside. Ironically, large company size and culture make disruptive innovation extremely difficult to execute.

Unlike small businesses, scalable startups are what Silicon Valley entrepreneurs and their venture investors do. These entrepreneurs start a company knowing from day one that their vision could change the world. They attract investment from equally crazy financial 4. Social Entrepreneurship investors venture capitalists. Social entrepreneurs are innovators 3. Large Company Entrepreneurship who focus on creating products and Large companies have finite life cycles. services that solve social needs and Most grow through sustaining problems. innovation, offering new products that

Next session
1-F 2-S 3-S SCOPE OF ENTERPRENEURSHIP Corporate entrepreneurship Individual entrepreneurship: Part time, small and medium ventures
White paper: History's 10 greatest entrepreneurs Assignment: What it takes to be a successful entrepreneur? (1) Robert, Michele & Dean Page: 1 57

5%

4-W Profile of an individual entrepreneur: Aptitude, 5-F skills, and knowledge set 6-S Entrepreneurial mindset: 7-S Creativity and innovation Profile of every individual students in terms of 8-W entrepreneurial traits

Robert, Michele & Dean Page: 58 73

10%

Entrepreneurial mindset: Creativity and innovation

The Creative Process has six phases 1. Inspiration: In which you research and generate many ideas 2. Clarification: In which you focus on your goals 3. Evaluation: In which you review your work and learn from it 4. Distillation: In which you decide which of your ideas to work on 5. Incubation: In which you leave the work alone 6. Perspiration: In which you work determindedly on your best ideas

Entrepreneurial creativity 5 action areas

25 Common Characteristics of Successful Entrepreneurs

1. Do what you enjoy: What you get out of your business in the form of personal satisfaction, financial gain, stability and enjoyment will be the sum of what you put into your business.

2. Take what you do seriously: You cannot expect to be effective and successful in business unless you truly believe in your business and in the goods and services that you sell.
3. Plan everything: Planning every aspect of your home business is not only a must, but also builds habits that every home business owner should develop, implement, and maintain. The act of business planning is so important because it requires you to analyze each business situation, research and compile data, and make conclusions based mainly on the facts as revealed through the research. 4. Manage money wisely: There are two aspects to wise money management.

The money you receive from clients in exchange for your goods and services you provide (income) The money you spend on inventory, supplies, wages and other items required to keep your business operating. (expenses)

5. Ask for the sale: A home business entrepreneur must always remember that marketing, advertising, or promotional activities are completely worthless, regardless of how clever, expensive, or perfectly targeted they are, unless one simple thing is accomplished--ask for the sale. 6. Remember it's all about the customer: 7. Become a shameless self-promoter (without becoming obnoxious): One of the greatest myths about personal or business success is that eventually your business, personal abilities, products or services will get discovered and be embraced by the masses that will beat a path to your door to buy what you are selling. But how can this happen if no one knows who you are, what you sell and why they should be buying? Self-promotion is one of the most beneficial, yet most underutilized, marketing tools that the majority of home business owners have at their immediate disposal. 8. Project a positive business image:

9. Get to know your customers:

10. Level with the technology: 11. Build a top-notch business team: 12. Become known as an expert: 13. Create a competitive advantage: 14. Invest in yourself: Top entrepreneurs buy and read business and marketing books, magazines, reports, journals, newsletters, websites and industry publications, knowing that these resources will improve their understanding of business and marketing functions and skills. They join business associations and clubs, and they network with other skilled business people to learn their secrets of success and help define their own goals and objectives.

15. Be accessible: 16. Build a rock-solid reputation: 17. Sell benefits. 18. Get involved. 19. Grab attention: Small-business owners cannot waste time, money and energy on promotional activities aimed at building awareness solely through long-term, repeated exposure. If you do, chances are you will go broke long before this goal is accomplished. Instead, every promotional activity you engage in, must put money back in your pocket so that you can continue to grab more attention and grow your business. 20. Master the art of negotiations. 21. Design Your workspace for success. 22. Get and stay organized. 23. Take time off. 24. Limit the number of hats you wear. 25. Follow-up constantly.

Reference:
http://www.wherecreativitygoestoschool.com

To check how creative you are!!!

End-sem Presentation
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Jack welch - straight from the gut Icon - Steve jobs - the greatest second How 11 Indians pulled off the impossible-Making breakthrough innovation happen - Porus Munshi Lee Iacocca - autobiography (Chrysler) Sam Walton - Made in America Made in Japan - Akio Morita & Sony Simply Fly - Caption Gopinath (Deccan) Business Legends - Gita Piramal (Birla, Tata, Walchand Hirachand, Kasturbhai Lalbhai) Business Maharajas - Gita Piramal (Ambani, Bajaj, Birla, Goekna, Khaitan, Bharat and Vijay Shah, Tata) Richard Branson Loosing virginity [Taken]

Due-diligence & Valuation Criteria

Financial Risk Cycle

When its Self-finance!!

ISBE-B1-FC3(1) List of concepts

Branding

CBBE Model Brand Equity Brand Positioning Brand Strategy Making Creating a Brand!!! POPs & PODs BCG

BSC Strategy Map Continuous Process Improvement BI Business Intelligence - Gognos AI Artificial Intelligence Market Opportunity Analysis GAP Analysis

Feasibility Study of Launching of New Car

Objective Statement: Twasha To select a car which has adequate demand to create an opportunity of sales for achieving 20% market share (including existing model) in a given segment within a year.