Entrepreneurship and Business Management New

8/3/2019 Entrepreneurship and Business Management New

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Maheep Kumar Yadav

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Entrepreneurship

Entrepreneur

Role of Entrepreneur Marketing Management

Operation management

Financial management

Product Development

Conclusions

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Capacityto take risks

Abilityto own and organize Desire and capabilityto innovate and diversify

(Stepanek, 1962)

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Personconducting own business (Webster)

Person who sets up business deals in order to

make profits (Collins Cobuild) Organizer of an economic venture, one who

owns, organizes, manages, and assumes therisks of the business (Chandrashekhar)

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Process of creating something different, withvalue, by devotingnecessarytime and effort,by assumingthe accompanying financial,psychological, and social risks, and receivingthe resultingrewards of monetary andpersonal satisfaction (Bowen and Hisrich, 1986).

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An innovator who combines technicalinnovations and financial finesses.

Important role in producingcompetitiveproducts, processes, and services.

Generation of new employment

Local and regional economic development Improved allocation of resources and transfer

of technologies

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Introduction of new goods and products

Introduction of new processes and methods ofproduction

Opening up of new markets

Opening up of new sources of supply

Industrial re-organization

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Demand variables:

Demographic, social, economic, political, andcompetitive factors in market environment

Psychological, social, and economic patterns incustomer motivations

All autonomous factors

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Semi-demand variables:

Market segmentation

Customer behavior

Only partially under the control of theentrepreneur

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Decision Variables:

Productcharacteristics and pricing

Distribution and personal selling

Advertising policies

Mostly under the control of the entrepreneur

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Marketing success depends on design of adistinctive marketing plan

A small entrepreneur should nottrytocompete on a product-to-product basis withlarge firms (same goods to same customers

through same channels at same prices !!) Instead, tryto do something different.

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Process of designing and utilizingthe physicalresources of the firm to maximize the

operational capabilities of the company Product/ service design

Process design

Job design

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Effective utilization of the assets-current(short-term) and capital (long-term)

Provision of funds to supportthose assets

Difficult for smaller companies to compete, infinance, with larger firms, simply because theylack money.

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Finances needed for:

1. New investments in product development

2. Expansion of markets

3. Process improvements, etc.

Conserve available funds by preparing detailed

financial plans, e.g. cash budgets, capitalinvestment analysis, short-term plans

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Finding additional funds from sources as

1. Current liabilities

2. Bank loans

3. Equity investments

4. Retained earnings

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Improvements in design of existing product

Inventions of new products

Lack resources for full R&D facility

Must use available capabilities efficiently

Technical feasibility, market feasibility,

developmenttime and cost, manufacturingcapability, and strategic fit

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Entrepreneurship is a challenging andrewarding profession

Need to concentrate on market analysis,financial resources, and technologymanagement

Cannotcompete directly with the bigguys,so need to be ingenious and innovative in allentrepreneurial functions

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Entrepreneurship and Business Management New

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