Entrepreneurship

Development

Presented by
Prof.B.Manchanda
"Being the richest man in the
cemetery doesn’t matter to me …
Going to bed at night saying we’ve
done something wonderful … that’s
what matters to me."

............Steve Jobs
“Your work is going to fill a large part of your life,
and the only way to be truly satisfied is to do what
you believe is great work. And the only way to do
great work is to love what you do.

If you haven’t found it yet, keep looking. Don’t settle.

As with all matters of the heart, you’ll know when
you find it."

STEVE JOBS
Learning Outcomes
 Meaning of Entrepreneurship
 Understand what it takes to be an
entrepreneur
 Entrepreneurship
 the motivations
 the risks
 rewards
 impact
Learning Outcomes
 Introduction to Entrepreneurship
 Economist's view
 Calculated Risk
 Entrepreneurial Competencies
 Classification of Entrepreneur
 Economic Development
“I don’t design clothes, I
design dreams.”

- Ralph Lauren

-6-
 BROOKLYN BRIDGE:
THE VISION OF JOHN ROEBLING

Brooklyn Bridge in New York City

stands in all its glory as a tribute
to the triumph of one man's
indomitable spirit and his
determination not to be defeated
by circumstances.

It’s a tribute to the engineers and

their team work, and to their faith
in a man who was considered
mad by half the world.
Case of IPL
 Out of Box “Thinking”

 Able to raise around $2 billion for BCCI

 One of the Most successful Cricket

tournaments

 Satisfied all the stakeholders of the

Cricketing establishment.
Point to Ponder !
 If given an option, what would you choose
in long term and why?
 Working for an Indian Company.

 Working for an MNC.

 Setting up your Own enterprise

 Others…
What is Entrepreneurship?
 Organizing a business venture and assuming the
risk for it.

 “An entrepreneur is a person who is willing and

able to convert a new idea into a successful
venture.”

 Entrepreneurship is a process of converting a

new idea into a successful venture.
Entrepreneurship
 Founding entrepreneur who identifies the
opportunity and moves to exploit it commercially.

 Often it is the founder (or founding team) who

possesses much of the technical and managerial
knowledge that make-up the tangible and
intangible assets of the firm.

 In sum, an Entrepreneur’s expanding knowledge

base and absorptive capacity becomes an
entrepreneurial firm’s competitive advantage”
(Alvarez and Busenitz 2001, p.766).
What is Entrepreneurship?
 Practice of starting new organizations or revitalizing mature

organizations

 Particularly new businesses in response to identified

opportunities.

 Entrepreneurial activities has a vast range

 It ranges in scale from solo projects to major undertakings

creating many job opportunities.

 Entrepreneur is one who organizes, manages and assumes

the risk of a business enterprise.

Who is an Entrepreneur ?
 He who has a vision

 Has the hunger to make something from nothing

 Is Never Finished

 The Risk Factor

 He is having fun!!!
Characteristics of Entrepreneurial
Orientation
 Allow independent action
 Innovativeness
 Risk taking
 Proactiveness
 Competitive aggressiveness
 Foster creativity

7-14
Calculated Risk
 We must estimate the cost and consequences

 Must weigh the cost against benefits

 Must analyze our resources thoroughly and

maneuver them

 Time is of prime importance

 We must estimate & ensure protection against all

odds
The Art of Entrepreneurship
 Most Crucial Resource  PEOPLE

 Leadership

 The Military Concept

 Sun Tzu's The Art of War, Chang Yu says:

"Benevolence and righteousness may be used to govern a state but

cannot be used to administer an army. Expediency and flexibility are used

in administration an army, but cannot be used in governing a state."

 Entrepreneurial Venture – Neither an army nor a state

 Middle of Leadership extremes

 Motivation
Entrepreneurship vs. Wage
Employment
Wage Employment
 Work for Others
 Follow instructions
 Routine job
 Earning is fixed, never
negative
 Can choose from:
 Government Service
 Public sector
 Private sector
Entrepreneurship
 Own boss
 Make own plans
 Creative activity
 Can be negative
sometimes
 Can choose from:
 Trade
 Product or
 Service Enterprise
Entrepreneur vs. Manager
Entrepreneur Manager
 Involved with the  Involved with running
start-up process the business
 Assumes financial,  Does not have to bear
material and risks
psychological risks  Driven by the
 Driven by perception resources he currently
of opportunity possesses
 Initiates change  Follows rules &
 Own boss procedures
 Gets uncertain  Hired employee
rewards  Gets fixed rewards
and salary
Entrepreneurial Competencies
 Initiative  Systematic Planning
 Sees and Acts on  Problem solving
Opportunities  Self-confidence
 Persistence  Assertiveness
 Knowing/Information  Persuasion
 Concern for High  Use of Influence
Quality of Work Strategies
 Commitment to Work  Monitoring
Contract  Concern for Employee
 Efficiency Orientation Welfare
Classification of Entrepreneurs

 Trading Entrepreneur
 Industrial Entrepreneur
 Agricultural Entrepreneur
Economic Development
 Wealth creation

 Creation of jobs

 New technologies

 Improved products & services

 Improved standard of living

 Development of new markets

 Better/Optimal utilization of resources

Famous Fashion Entrepreneurs
 Ralph Lauren – the designer who provided
luxury at all price points.
 He sold the clothes, but he also sold the
fantastic, romanticized lives of the people
who wear the clothes—the look of success.
 Ralph Lauren said “People ask how can a
Jewish kid from the Bronx do preppy
clothes? Does it have to do with class and
money? It has to do with dreams.”
Famous Fashion Entrepreneurs
 Rene Lacoste was the one who bridged the
gap between fashion and sports.

 Rohit Bal is known for his sophisticated

cuts and breathing fabrics. He weaves in
the best for both men and women.
However, there is no one-signature style
that the designer sticks to.
Fashion Entrepreneurship

Fashion entrepreneurship is about

combining design, business, and
manufacturing knowledge
Some things can be outsourced or bought
in…but some things are critical for the
fashion entrepreneur or the management
team.
Ritu Kumar
Ritu Kumar …………….
Ritu began her venture with four hand-block
printers and two tablets; in a small village
near Kolkata in the late 60s was
incidentally the first woman to introduce
the boutique culture in India under the
brand name ‘Ritu’.
Today she has thirty four outlets in all major
cities in India and one outlet in America
Critical Capabilities
Capability 1: Ability to develop a new
symbolic language - a style - that is
experienced as distinctive, consistent, and
new.
Capability 2: Ability to manage the process
of communication on which fashion
depends.
Capabilities
 Ability to understand and manage
strategic, marketing, financial and
branding issues for the fledgling firm.
An Economist’s View
 Economists places emphasis on innovation, such as:
 New products

 New production methods

 New markets

 New forms of organization

 An entrepreneur forces "creative destruction" across

markets and industries.

 Simultaneously creating new products and business

models.
Thank You!