THE ENTREPRENEURSHIP PERSPECTIVES

GROUP MEMBERS
Hemant Adhikari Rushikesh Bhoir Ashish Bodani Rahul Iyer Shweta Kanabar Akshay Naik Sonal Patil Neha Phadke Aishwariya Pillai Nikhil Ray Shobita Lakshmanan 1001 1003 1004 1013 1016 1024 1031 1033 1034 1041 1051

FLOW OF PRESENTATION
1.1 Concept of Entrepreneur, Entrepreneurship and Enterprise Advantages of Entrepreneurship 1.2 Nature & Development of Entrepreneurships 1.3 Personality of Entrepreneurs/Intrapreneurs 1.4 Innovation & Entrepreneurship 1.5 Women & Entrepreneurship 1.6 Entrepreneurship in Rural Areas

ENTREPRENEUR
The word entrepreneur is derived from the French verb enterprendre. It means to undertake. Francis A. Walter observes that the true entrepreneur is one who is endowed with more than average capabilities in the risk of organizing & co-ordinating the various other factors of production. The New Encyclopaedia Britannica considers an entrepreneur as an individual who bears the risk of operating a business in the face of uncertainty about the future conditions.

INDIAN ENTREPRENEUR
KENT CARS Name Age Education Work experience Initial Investment Track Record No. of Employees Work Style Management Philosophy Hobbies Chandan Sumaya 34 years B.Com,H.R. College, Bombay, 1981 Helped his uncle operate a car rental service Rs 30,000 Turnover has grown from zero in 1985 to Rs 4.50 crore in 1994-95 252 Hands-on Never say no to a client Working out, swimming, watching Amitabh Bachchan movies

QUALITIES OF A ENTREPRENEUR
Desire for responsibility Moderate Risk Confidence in their ability to suceed High level of energy Future Orientation Skills at organising High degree of commitment Tolerance for Ambiguity/ Flexibility

ENTREPRENEUR AGE STUDY

AGE < 20 % age of Entreprenuers 1%

20-24
25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64

8%
17% 21% 18% 15% 9% 7% 3% 1% 80%

REASONS FOR FAILURE

FACTORS %

Economic Factors
Financial Troubles Inexperience Owner Neglect Other Disasters & fraud

47.7%
38.4% 7.1% 3.4% 3.7%

Other Problems are: Uncertainty of Income Risk of loosing your entire life saving Low Quality of Life Pressure builds up Health affected

DEFINITIONS OF ENTREPRENEURSHIP
According to Peter P Drucker, Entrepreneurship is neither a science nor an art. It is a practice. It has a knowledge base. Knowledge in entrepreneurship is a means to an end; that is, by practice. According to William Diamond, Entrepreneurship involves the willingness to assume risks in undertaking an economic activity particularly a new one. It may involve an innovation but not necessarily so.It always involves risk taking & decision- making, although neither risk nor decision making may be of great significance.

DEFINITION OF ENTERPRISE
A project or undertaking, especially one that requires boldness or effort. Readiness to embark on new ventures; boldness and energy.

ADVANTAGES OF ENTREPRENEURSHIP
Employment Generation Distribution of Economic power Optimum Utilization of regional resources Meeting the demand gap by seizing the opportunity Export potential Regional Development

1.2 NATURE & DEVELOPMENT OF ENTREPRENEURSHIP

NATURE OF ENTREPRENEURSHIP Entrepreneurship collectively has the power to change the destiny of family, city, state or the country as a whole. Eg.The rate of economic growth in Punjab & Haryana has been very high. Had all the states fared well as these two states, India could have become one of the strongest economic powers. Punjab & Haryana have built-up a very strong entrepreneurial base whereas other states have not been able to do so.

DEVELOPMENT OF ENTREPRENEURSHIP
Earlier restricted to certain communities like Marwaris, Baniyas, etc. Recently, SIDC and SSI institutes have made some efforts to train entrepreneurs. Also, they conducted short term courses to develop entrepreneurial capabilities in selected trainees. But there seems to be something wrong with these projects.

REASONS FOR LIMITED SUCCESS IN NURTURING ENTREPRENEURSHIP

General lack of entrepreneurs in the country, Governments effort notwithstanding. In rural India, people prefer jobs for self-employment. Need for research and re-strategizing these development schemes. Problems in selection process itself. The candidates selected for such courses are those who have failed to get jobs and hence have nowhere else to go. Also, the widespread value system within the country, where the first preference for any qualified man is to get job, preferably a government job.

So, these institutes could take a few initiatives such as:

Entrepreneurship should be made a compulsory subject in all management schools. In addition, cases on successful entrepreneurs should be developed and run in these management courses. Project work related to a proposed entrepreneurial venture should be introduced. At Asian Institute of Management, Manila, the student does not pass unless he submits a Xerox copy of the cheque issued by the bank approving the feasibility report prepared by him.

 Regular talks by successful entrepreneurs should be organized at these institutes. Successful entrepreneur-alumni will be more impactful in nurturing entrepreneurship in management students. These institutes should start Entrepreneurship Centers to do research on the subject and recommend policy measures to strengthen entrepreneurship in management students. Such a center has been established at one of the Indian Institute of technology to convert engineers into entrepreneurs.

FACTORS INFLUENCING ENTREPRENEURSHIP

Individ ual

Environ ment

Entreprene urship

Sociocultural factors

Support systems

FACTORS INFLUENCING ENTREPRENEURSHIP CONTD

The Individual: Individuals who initiate, establish, maintain & expand new enterprises generate entrepreneurship in a society. Environment: This factors is constituted by the sociopolitical & economic policies of the government & financial institutions & the opportunities available in society as a result of such policies.

FACTORS INFLUENCING ENTREPRENEURSHIP CONTD

Socio-cultural factors: Entrepreneurs grow in the traditions of families & societies & internalize certain values & norms from these sources. The contribution from these socio-cultural factors, in the process of transmission, gets filtered through the individual whom it seeks to influence. Support systems: It include financial & commercial institutions, research, training, extension &consultancy services, as also large industrial units interested in developing ancillary industries.

DEVELOPMENTAL THEORY OF ENTREPRENEURSHIP

Process of Occupational Choice Theory put forwarded by Ginzberg, Axelrad, Herma and Ginsberg. As per them, Occupational Choice has 3 periods: 1. Fantasy Period 2. Tentative Period 3. Final Period of Realistic Choice

A general process of Occupational Process can be shown as follows:

Fantasy Period Free expression of a wish without any consideration of expediency. Tentative Decisionmaking Period Interest: includes all vocations which appeal to the individual. Preference: involves comparison of relative attractiveness to the subject of several vocations. Stage of Exploration & preparation for implementing the decision Crystallised choice very close to the decision.

 In case of entrepreneurship, one visualises the beginning of another cycle. This cycle is shown as follows: Trial Stage Commitment & Stability Stage

In case of failure in trial stage, An individual goes back to exploration stage & makes preparation for implementing a new decision may be for taking up a job.

Model for Entrepreneurship Development:

First Cycle
N-achieve stories in text books Fantasy Stage Entrepreneur Familys Support Stage of exploration to implement the decision Trial Stage

Second Cycle
Organizational Development Consultancy Commitment & Stability Stage

Tentative decision making

N-achievement stories through mass media

Entrepreneur Journals/ Institutions providing information about entrepreneurial opportunities

Support systems of the Government

Organizational Development Consultancy

First Cycle

Second Cycle

Model for Entrepreneurship Development

Developmental Theory of Entrepreneurship consists of

following 5 stages:
1. Fantasy Stage

2. Tentative Decision-making Stage

3. Stage of exploration to implement the decision

4. Trial Stage
5. Commitment and Stability

1.3 PERSONALITY OF ENTREPRENEURS/ INTRAPRENEURS

AN ENTREPRENEURS PROFILE The Psychologists View Schumpters entrepreneur possesses three Qualities. 1. An institutional capacity to see things in a way which afterwards proves to be true. 2. A kind of effort of will & mind to overcome fixed habits of thinking 3. The capacity to surmount social opposition against doing something new.

AN ENTREPRENEURS PROFILE CONTD

The Managerial Point of view Kilby has envisages that the entrepreneur himself might have to perform the following activities 1. Perception of market opportunities 2. Gaining command over scarce resources 3. Purchasing Inputs 4. Dealing with the public bureaucracy (concessions, licenses, taxes) 5. Management of human relations within the firm 6. Management of customer & supplier relations 7. Introduction of new products

INTRAPRENEUR
An Intrapreneur is defined as any of the dreamers who do. Those who take hand on responsibility for creating innovation of any kind within the organisation.

The Intrapreneur may be creator or inventor but he is always a dreamer who finds out how to turn an idea into a profitable reality

ADVANTAGES OF INTRAPRENEURSHIP
Intrapreneurial ideas offer a way to build onto or improve the corporate business. Capital for the idea is easy to come from internal sources within a corporate identity The established corporate image helps to boost the chances of success of an intrapreneurial idea Corporates offer continuing access to organizations proprietary technology to stay competitive Corporates offer economies of scale in marketing, distribution & service

AN INTRAPRENEURS PROFILE
Vision Motivation Bias to Act Skills Locus To Control Locus To Risk Locus To Status Failure & mistakes Goal- setting

CREATING INTRAPRENEURIAL ENVIRONMENT

Research & Development Funding Creating a climate Training Reward System Multi-Disciplinary Team Commitment

COMPARISON
Parameters Intrapreneurial characteristics Entrepreneurial Characteristics

Primary Motives

Freedom & access to corporate resources

Wants freedom. Goal oriented, self, reliant & self motivated

Depending on venture 5-10 yrs. Looks for incremental investments Knows business very well & can put together resources. Macro- environment & micro environment relevance. Assembled & acquired from the factor markets for resources. Learns from mistakes. Pays for own errors. All errors public & visible

Time Orientation Depending on venture, 5-10yrs. Looks for incremental investments Skills & experience Environment Much like the Entrepreneur, but doesnt get discouraged by hierarchy. Same as entrepreneur. Must deal with corporate environment. Derived primarily from slack within the organization Sensitive to corporate attitudes. May attempt to hide errors. Will learn from mistakes

Resources

Failures & mistakes

COMPARISON CONTD
Parameters Intrapreneurial Characteristics Entrepreneurial Characteristics Decisions Needs to get others to share vision. More willing to accept compromise. Dislikes the system but has learned to live with & manipulate it. Follows own vision & makes own decisions. May not compromise.

Attitude to bureaucracy

May have done well in the system, but grew impatient & left to start own venture. Accepts moderate risk. Has money, reputation in jeopardy. Willing to accept long period of low status

Risk Preference Attitude to status

Accepts moderate risk. Puts career & job on the line Considers corporate symbols demeaning & worthless

1.4 INNOVATION & ENTREPRENEURSHIP

Innovation is the process of doing new things. Ideas have a little value until they are converted into products services or process. Innovations, therefore, is the process of transformation of creative ideas into useful applications. It is the means by which entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential creating wealth

INNOVATIONS & PROFITS: JOSEPH SCHUMPETERS THEORY OF PROFITS

Innovations can be divided into two categories 1.Reduce the cost of production 2.Increase the demand for the product

Role of an Innovator Role of Profits Breaking of the circular flow

INSTILLING ATTITUDE FOR INNOVATION

Encourage Creative Conflict Big Ideas come from small teams Learning happens away from the desk Understand the Products User Live in the future Failure sometimes produces Innovation Joint Prototyping to brainstorming for fast-track Innovations Results

MEMORIZE THE PROJECT LEADERS MANTRA

Understand Observe Visualise Evaluate Implement Teams Need Leaders & Mentors. They dont need bossess Fresh ideas occur faster in a fun workpace

SOURCES OF INNOVATION:PETER F.DRUCKER

Opportunity exist within a company in the form of the following 1. Unexpected occurrences 2. Incongruities 3. Process needs 4. Industry & market changes Outside the company 1. Demographic changes 2. Changes in perception 3. New knowledge

1.5 WOMEN ENTREPRENEUR

Government of India, "An Enterprise owned & controlled by a woman having a minimum financial interest of 51 % of the employment generated by the enterprise to women. Kamal Singh, A woman entrepreneur can be defined as a confident, innovative & creative woman capable of achieving self economic independence individually or in collaboration, generates employment opportunities for other through initiating, establishing & running the enterprise by keeping pace with her personal, family & social life.

TYPE OF WOMEN ENTREPRENEURS

Chance entrepreneur Forced Entrepreneur Created Entrepreneur

PHILIPPINES MODEL
In this model, they are able to develop Entrepreneur Couples. Two classmates would get married in the final year. The husband will work & the wife starting a small stores. The income of the husband was utilized for managing the household & educating children. The income from the stores was reinvested to expand the business, when the store become big departmental stores, the husband would usually resign the job & join the store as President of the company, the wife becoming its treasurer.

WOMEN ENTREPRENEURS IN INDIA

A majority of women Entrepreneurs are married Unmarried women face difficulties in getting financial support in order to launch their enterprise. Most of the women entrepreneurs lack vocational training Gender discrimination Women entrepreneurs are security-oriented rather than growth-oriented

BARRIERS TO WOMEN ENTREPRENEURSHIP

Level Individual Barriers

Household/F amily

Business
Less income= less property= no security= no loan

Community/ Government
In some countries, signature of husband required for loan

Financial

Women look for Men decide security about expenses

Economical

Women get less education

Women lack support for household work

Lack of management know-how

Women discriminated in terms of access to economic resources In male dominated industries, women entrepreneurs are not accepted

Socio-Cultural

Independent thinking is not allowed to women

Violence against women by husband

Limited mobility problems with the marketing, transportation & selling of goods

BARRIERS TO WOMEN ENTREPRENEURSHIP

Level Barriers Political-Legal
Women act privately, not politically Women have got less influence and negotiation power in the family Less means to exert power/less protection by the state for women entrepreneurs Lack of knowledge about women Entrepreneurs to be able to develop appropriate policies

Individual

Household/ Family

Business

Community/Go vernment

PsychologicalPhilosophical

Low selfWomen are esteem, do not divided dare to demand rights

Women are afraid to be more successful than men/husbands

State views men as the ones who publicly represent the family

PROGRAMMES FOR PROMOTING WOMEN ENTREPRENEURSHIP

Small industries Development Bank of India(SIBDI)Subsidiary of IDBI Provides schemes 1. Organizing EDPs for women 2. Providing seed capitalA woman entrepreneur has to bring in a margin money only at 10 % percent of the project cost, SIDBI provides 15% as margin money at low interest& arranges a term loan of 75% to start the project

PROGRAMMES FOR PROMOTING WOMEN ENTREPRENEURSHIP CONTD

Mahila Arthik vikas Mandal (MAVIM) In Maharashtra, this is the agency promoted by state government which looks after entrepreneurial development. Women Associations Such as WIMA-Women Industrialists & Entrepreneurs of Maharashtra Association of women Entrepreneurs of Karnataka (AWEK)

PRIYA PAUL
Priya Paul (born 1967), is a prominent woman entrepreneur of India, and currently the Chairperson of Appeejay The Park Hotels chain of boutique hotels. She joined the company, after finishing herstudies in Economics at the Wellesley College (US) working under her father, as Marketing Manager at the Park Hotel, Delhi, at the age of 22. After the death of Surrendra Paul, she succeeded him in 1990 as the Chairperson of the Hospitality Division of the Apeejay Surendra Group.

PRIYA PAUL CONTD

She has received several awards and citations, including the following: The Federation of Hotels and Restaurants Association of India conferred on her Young Entrepreneur of the Year award (19992000) She was nominated for The Economic Times Awards as the Businessperson of the year (20022003), and UKs Tatler magazine rated The Park (Bangalore, India), a part of her Group, as one of the 101 Best Hotel Worldwide in 2003.

1.6 ENTREPRENEURSHIP IN RURAL AREAS

70 % of our population is in rural areas Around 7,00,000 villages in the country where the population is less than 10,000. Majority of people do agriculture which is seasonal occupation. Thus leaves a large number with no work & abject poverty. Rural population with no education & skills migrates to urban centres & take up menial jobs, stay in slums. The solution to above problem is to encourage the rural entrepreneurship

RURAL DEVELOPMENT
Better distribution of farm produce resulting in the rural prosperity Entrepreneurial occupation for rural youth resulting in reduction of disguised employment & alternative occupations for rural youth Formations of big cooperatives like Amul for optimum Utilization of farm produce. Optimum utilization of local resource in entrepreneurial ventures by rural youth.

PROFILE OF A RURAL ENTREPRENEUR

He should not be an individualist. He should have a group orientation. He should consider the rural society nota as his market but as his own large family. He should practice a management style where the concern for people is the highest. He should have strong commitment for rural development He wont be interested in usual perks & entertainment allowance

AMUL MODEL
This Initiative was started by Dr.Kurien The Gujarat Experiment was started more than 30 years ago. Starting from small complex of eight societies which collected only a few hundred litres of milk it has grown into a huge complex collecting nearly 7 lakh litres of milk per day from 2,40,000 members organized into 840 village societies. Today 90% of the processed butter & cheese market of the organised sector in the country is controlled by AMUL.

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