Ent Mgt Lect 1- Introduction

8/22/2019 Ent Mgt Lect 1- Introduction

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CONCEPTOF ENTREPRENEUR,

ENTREPRENEURSHIPAND ENTERPRISE;

ADVANTAGES

ENTREPRENEUR


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EVOLUTIONOFENTREPRENEUR

Entrepreneur French language to designate an

organizer of musical entertainments.

Oxford English dictionaryDirector or manager of a

public musical institution, who gets up entertainment.

In 16th Century people engaged in military activities.

In 17th century extended to cover construction

activities.

In 18th century this referred to economic aspects.


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Riskbearer

Organizer

Innovator

The entrepreneur, by definition,

shifts resources from areas of

low productivity and yield to

areas of higher productivity and

yield. Of course, there is a risk

the entrepreneur may not

succeed.Innovation has to be market driven.

(Drucker,

85)

The entrepreneur is a person with

a high need for achievement.

This need for achievement is

directly related to the process of

entrepreneurship.David McClelland


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Francis Walker says :: Entrepreneurs should be pioneer,

captain of the ship, must have huge capabilities , a good

knowledge of managerial functions.

Qualities of aGood

Leader

Qualities of

GoodManage

r

Operational

Excellence


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WHICH IS THE BEST AGE TO BECOME AN

ENTREPRENEUR ????

Global Entrepreneurship Monitor Report :::

Average age of Entrepreneurs at start up is 32 years.


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DEFINITION OF ENTREPRENEUR

Entrepreneurship is derived from the French verb

ENTERPRENDRE.According to Oxford Dictionary : One who undertakes an

enterprise, especially a contractor acting as intermediary

between capital and labour

Joseph a. Schumpeter defines entrepreneur for an advanced

economy as:

The creation of a new good or a new quality; The creation of a

new method of production; The opening of a new market; The

capture of a new source of supply; The creation of a new

organization or industry In case of a developing economy :: One who starts an industry

old or new, undertakes risk, Uncertainties, performs

managerial functions.

Innovation, Risk Takin , Vision, Or anisin skills.


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Latest concept on entrepreneur

Perceives opportunities for profitable investments.

Arranges capital. Provides personal guarantees.

Supplies technical know how.

Warren Bennis, a noted writer on leadership, says: "To choosea direction, an entrepreneur must have developed a mental

image of the possible and desirable future state of the

organization. This image is vision. The vision is something

like a dream which an entrepreneur keeps in his/her heart

24 hours a day, 365 days a year. The vision reflects theheights where an entrepreneur wants his/her venture to

reach


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CHARACTERISTICSOFENTREPRENEUR

Drive

Perseverance

Ambition

Leader

Competitive

Interpersonal skills

Innovative skills

Ability to bounce back

Vision

Motivation

Self-confidence

Self Satisfaction

Extrovert

Results orientated

Committed

Risk taker

Sociable


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Characteristic Entrepreneur Manager

Behavior Characterized by Desire for Control Delegation of Authority

Management Style One-Man Show Management Team

Driving Force Creativity - Innovation Establish and Preserve the

Status Quo

Organizational Growth Rapid Reaction Strategic Planning

Organization Structure Informal, Flexible Organized

Decision-Making Intuitive Collect Information and

Seek Advice

Definition of Aims In terms of "Vision" In Commercial Terms

Attitude to Money A By-Product Measure of Success

Attitude to Risk Calculated Risks Avoidance of Risks

Organizational Culture "Entrepreneurial Culture" "Management Culture"


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ENTREPRENEURV/S MANAGER

Characteristics Entrepreneur Manager

Behavioural Differences Wants to "be in control" of his life, his

business and especially of his

employees.

Enters a company which needs

to delegate authority.

Management Style Is very demanding, leaving very little

room for error? In most cases the

business is a "one man show", even

if there are other employees.

He must be tolerant of failure

(and see it as a basis for

learning) and develop an

administrative team.

The Moving Force This is characterized by concepts

such as "entrepreneurship",

"creativity", "innovation", and so on,

indicators of the desire to create

"something from nothing".

This is characterized by

concepts such as "order",

"organization", "procedures",

and so on, indicating the desire

to organize and maintain what

exists.


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GrowthHas ability to react quickly and effectively

to new business opportunities. Is the

foundation for rapid growth of the

company!

Professional management is

noted for medium and long term

strategic planning, which leads to

controlled growth of the company

during the process of

establishment.

Organizational

StructureThe entrepreneurial organization is

characterized by its informal, flexible structure,

which allows it to adapt to changes required

by its rapid growth.

Professional management requires

a formal and fairly rigid structure,

which leaves no room for rapid

reactions to business opportunities,but protects the organization from

sudden collapse.

Decision-Making They usually makes decisions, even those ofcritical importance for his business, on the

basis of his own personal intuition and "gut

feelings".

They makes decisions after

collecting detailed information and

reaching operative conclusions,

while relying on experts both from

within and outside the organization.

D fi iti f Ai H d ib hi i ti i t H d ib th


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Definition of Aims He describes his organization in termsof "vision", "dream" and "mission"

and manages to give his employees

the feeling that they are working for a

higher aim than just marketing a

product and/or service.

He describes the company

aims in terms of market

segments, yield per worker

and profitability.

Attitude to Money Myth: They are driven by the desire forpower and money, but they are driven by

the desire for success rather than power.Driven by Financial returns.

Attitude to Risk Are Calculated Risk taker. He is afraid of risks and tries tomaintain the status quo.

Company CultureHe does not usually try to define a

"culture" for the organization he sets up

culture which is characterized by large

doses of charisma and

manipulativeness."

He does try to establish a well-

defined company culture, based

on company values on one hand

and commercial aims on the

other


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ENTREPRENEURIALSKILLS

Individual skills

Functional knowledge, Negotiator, behavioral skills, learning

nature, listening skills etc.

Group Skills

Team spirit.

Business Management Skills

Human relations, Decision making, Goal setting etc.

Enterprise Skills

Setting vision, market sensing skills etc.

Communication Skills -- putting intelligence into words.

Soft skills --- clarity of expressions, Alertness.


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ENTREPRENEURSHIP

It involves not only the process that leads to the setting up of abusiness entity but also the expansion and development of anon going concern.

The study of entrepreneurship is concerned with theentrepreneurial behavior, the dynamics of business set up and

expansion and development. It is a process of innovation and new venture creation.

Process of creating something new and assuming the risks

and rewards.

Enterprise---- Capital, Labor, Entrepreneur, Land.


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MATCHTHEFOLLOWING

Entrepreneurs / Successor

Kiran Mazumdar Shaw

Late. Dhirubhai Ambani

N. R. Narayana Murthy

Dr. Verghese Kurien

Karsanbhai Patel

Azim Premji

Sam Walton

Bill Gates

Shahnaz Husain

Late P. C. Mahalanobis

Venture / Known as.

Wal- Mart Co founder of Microsoft

Father of White Revolution

Nirma brand

Buzz in Biotech Infosys technologies.

Wipro

Indias Quality Guru.

Reliance Group Herbal Usage


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Richard Branson, Virgin

empire

Bill Gates, Microsoft

Steve Jobs, Apple

Thomas Edison,

General Electric

Walt Disney ... ?????

QUALITIES

Thrill, excitement and risk

Highly creative problem

solver

Are impulsive in nature

Are ambitious

Have tons of energy for

things they are interested

in

Love to be the hero in an

emergency


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SUMMARIZE

Drive, as defined in the study, is composed of responsibility,

vigor, initiative, persistence and health. Thinking ability consists of original, creative, critical, and

analytical thinking.

Competency in human relations means emotional stability,

sociability, good personal relations, consideration,

cheerfulness, cooperation. and tactfulness.

Communications skills include verbal comprehension, and

oral and written communications.

Technical knowledge is the manager's comprehension of

the physical process of producing goods or services, and theability to use the information purposefully.


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ENTREPRENEURSHIP QUIZ

1. Are you a self-starter?

Yes, I like to think up ideas and implement them.

If someone helps me get started, I will definitely follow through.Frankly, I would rather follow than lead.

2. How do you feel about taking risks?

I really like the feeling of being on the edge a bit.

Calculated risks are acceptable at times.

I like the tried and true.

3. Are you a leader?

Yes.

Yes, when necessary.

No, not really.


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4. Can you and your family live without a regular paycheck?

Yes, if that is what it takes.

I would rather not, but understand that may be part of the process.

I do not like that idea at all.

5. Could you fire someone who really needed the job your

business provided?

Yes, I may not like it, but that is the way it goes sometimes.

I hope so.

I really can't see myself doing that.

6. Are you willing to work 50 hours a week, or more?

Again, if that is what it takes, yes.

Maybe in the beginning.

I think many other things are more important than work.

7. Are you self-confident?

You bet!

Most of the time.

Unfortunately, that is not one of my strong suits.


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8. Can you live with uncertainty?

Yes.

If I have to, but I don't like it.

No, I like knowing what to expect. 9. Can you stick with it once you have put your mind to

something?

I usually will not let anything get in the way.

Most of the time, if I like what I am doing.

Not always. 10. Are you creative?

Yes, I do get a log of good ideas.

I can be.

No, not really.

11. Are you competitive?To a fault sometimes.

Sure, mostly.

Not really, my nature is more laid-back.


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12. Do you have a lot of willpower and self-discipline?

Yes.

I am disciplined when I need to be.

Not really.

13. Are you individualistic or would you rather go along with the

status quo?

I like to think things through myself and do things my way.

I am sometimes an original.

I think strongly individualistic people are a bit strange.

14. Can you live without structure?

Yes.

Actually, the idea of living without a regular job makes me nervous.

No, I like routine and structure in my life.

15. Do you have many business skills?

Yes I do, and those I don't have, I'll learn.

I have some.

No, not really.


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16. Are you flexible and willing to change course when things

are not going

your way?

Yes.

I like to think so, but others may disagree.

No, I have a fairly rigid personality.

17. Do you have experience in the business you are thinking of

starting?

Yes.

Some.

No.

18. Can you juggle multiple tasks?

Yes.

I think so.

I think not.


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19. Are you willing to really hustle for clients and

customers?

Sure.

If I have to.

I would rather not.

20. How well do you handle pressure?

Quite well.

Its not my strongest trait, but I can do it.

Not well at all.


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Your score:

Scoring:

80 - 100:

You have both the temperament and the skills to become an

entrepreneur..60 - 79:

You are not a natural entrepreneur, but may become one over

time.

Below 60:

You would be wise to think of something else to do besides

self-employment.


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Ent Mgt Lect 1- Introduction

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