Entrepreneurship

Session-316/02/07

Lawrence Joseph Ellison

The founder of Oracle is one of the most flamboyant and outspoken businessmen of the century, not to mention one of the richest, with a net worth somewhere north of $50 billion.

Lawrence Joseph Ellison

Ellison's leadership qualities had more to do with his ability to conceive a strategy for his company to survive and grow in the long term and his displaying unshakable determination to make it happen in an increasingly competitive marketplace.

Definition of an entrepreneur

Entrepreneur is someone, who has the ability and willingness to introduce new products or services, that sell, to a market where those products or services were previously either unavailable or not desired.

Difference between managers and entrepreneurs

“Managers manipulate things and information to produce a result that is clearly specifiable in advance.

Entrepreneurs try to create what isn’t by a lot of guesswork, improvisation and learning from mistakes.”

Key Entrepreneurial Capabilities

Passionate with a big idea Innovativeness Managing risk Resource building Creative Observing & identifying changing

customer needs Relevant technical & managerial skills

& knowledge

National Income and Entrepreneurship:

Entrepreneurial life cycle

Attitude Opportunity

Idea Planning

Start - up

Growth

Diversify

Time

Leadership Skills

Management Skills

Finance

Strategy

Planning

Marketing

Sales

Operations

Motivation

Negotiation

Setting Examples

Value Systems

Vision

Inspiration

Entrepreneurs who have inspired me

Henry Ford Bill Gates

Jamshedji Tata Dhirubhai Ambani

Steve Jobs

The business of motivation Factors of motivation: Educational background. Occupational experience. Desire to work independently. Desire to branch out manufacturing. Family background. Assistance from financial

institutions

The business of motivation Availability of technology Other factors-demand of

particular product etc.

Factors:

Internal External

Factors Internal to Entrepreneurs

Strong desire to do something in life.

Technical knowledge/manufacturing experience.

Business experience in the same or related line.

Factors external to entrepreneurs: Financial assistance from

institutional sources. Machinery on hire/purchase. Attitude of the Govt. Encourage from big business. Heavy Demand. Profit Margin.

Seven keys to motivation that may prove helpful Inspiration: Setting goals: Networking: Reward Yourself:

Other Traits:

Self –confidence: Ability in themselves.

Long term involvement: Long term commitment to the projects

High Level Energy: Ability to work long

Entrepreneurial Leadership: Give positive feedback for good

job. Initiate confidence in employees. Be fair and objective, not

vindictive. Practice what is preached,donot

ask for something that employees are not willing to do.

Entrepreneurial Leadership: Down to earth, person to person

approach. Be compassionate and understanding. Create an atmosphere of acceptance

and trust. Classification of priorities. Be available for discussion. Talk openly and give straight answers.

Administrative competence: The leader should understand

his /her job. Understand employees job. Utilizing peoples skill effectively. Be concerned with employees and

work flow. Get tough when necessary. Provide proper human resource for

all levels.

Entrepreneurship

It’s the process of wealth creation not wealth accumulation.

Pure entrepreneurs depend upon innovation

to set up new ventures. Follow up on promises.

Introduction to Creativity

EMPOWER

?CREATIVITY

Convergent vs. Divergent Thinking

EMPOWER

?

1

2 types of Thinking

Convergent Thinking

Divergent Thinking

Convergent Thinking

?

1

2x- 148 = 0, so x is = ?

City 500 km south-west of Ahmedabad

Founder of IIPM

Captain of Indian Cricket Team

Shahrukh’s Last Movie Released

Divergent Thinking

1

What would happen if animals would be

crossed with plants?

What poem could be written with the title Future of the Past?

How many uses are there of a teaspoon?

What would have happened if Vasco da

Gama had not discovered the sea

route to India?

Which one more important?

?

1

Divergent or Convergent ?

Entrepreneurship and Creativity:

The person: Task: Organizational Context: Environment:

Creativity

Ability to work hard and long. It gets developed in individual. Ability to bring some things new

into existence. A new thing that can be useful

for the society.

Creativity

Discovery of something that is novel, but also useful, or relevant, or economical or elegant or valuable .

Innovation :Engine of growth

Innovation=Conception +Tech invention+commercial exploration.

Innovation

Process of doing new things. Innovation transforms creative

ideas into applications. Creativity is prerequisite to

innovation.

Importance of Innovation:

Aerospace: Boeing. Motor cars: Mercedes,BMW. Computer : IBM,Microsoft.

Innovation:

Steam Engine:? Electric Bulb : ? Electromagnetic Dynamo : ?

Types of Innovation:

Product Innovation: Process Innovation: Organizational Innovation: Management Innovation: Production Innovation: Marketing Innovation: Service Innovation:

Characteristics of Creative People:

Conceptual Fluency-Openness. Originality. Less Authoritarian-Independent. Committed and Highly focused.

Types of Entrepreneurs:

Spontaneous Entrepreneurs (pure entrepreneurs):

Motivated by their desire. Natural ,and no external

motivation required. Strength in creative abilities.

Types of Entrepreneurs: Motivated Entrepreneurs: Motivated by their desire to

make use of tech/professional expertise.

They possess-confidence,initiative ,boldness.

Provides new products/service to consumers.

Types of Entrepreneurs:

Innovative business ventures.

Types of Entrepreneurs:

Induced Entrepreneurs:

Induced by policy of government.

Some study details: Managing entrepreneurs :chief motive

is security. Innovative entrepreneurs: primarily

looks for excitement. Controlling entrepreneurs who become

entrepreneurs to fulfill their desire for power.

The Opportunistic type, who was driven by expectations of financial gain,

Some study details: The “Push” type, driven by

“push” reasons for starting a business,

Basically four strategies: Customer partnership

strategy :concentrating on few large customers.

Niche strategy : with highly focused product and market scope.

Cost leader: with high emphasis on cost control.

Investment promotion strategy :which invest heavily in promotion and brand building,

as well as product development.

Entrepreneurial Attitude:

Tendency to take moderate risk: An eye for economic

opportunity: Imaginative: Initiative: Believe,to change environment: Enjoy freedom of expression

Entrepreneurial Attitude:

Analyzing situation and planning action.

Find satisfaction from successful completion of task:

Innovation, Entrepreneurship & Intrapreneurship

Corporate Entrepreneurship

Concerned with innovation that leads to new corporate divisions or subsidiary ventures.

Entrepreneural Businesses

Family businesses Franchises Home based businesses

Commitment to Excellence

Understand the customer. Provide quality products and

services. Knowledge and expertise, esp.

business. Details. Continuous learning. Commit time and effort.