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Entrepreneurship & Small
Business ManagementProf. Maulik Thaker
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Scope
Who is entrepreneur? Is entrepreneur an inventor?
All commercialized ideas/items came from
entrepreneurs!
What is Entrepreneurship?
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What is an Entrepreneur?
An Entrepreneur (ahntra pra nur) is a person who organizes and
manages a business undertaking, assuming the risk for the sake ofprofit. Any person (any age) who starts and operates a business isan entrepreneur.
Our defination: Individual who leads the undertaking venture withinnovative idea or activities for sake of profit making or socialbenefit.
Our defination: Individual
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Entrepreneur who? He is a person who develops and owns his own enterprise
He is a moderate risk taker and works under uncertainty for achieving the goal.
He is innovative
He peruses the deviant pursuits
Reflects strong urge to be independent.
Persistently tries to do something better.
Dissatisfied with routine activities.
Prepared to withstand the hard life.
Determined but patient
Exhibits sense of leadership
Also exhibits sense of competitiveness
Takes personals responsibility
Oriented towards the future.
Tends to persist in the face to adversity
Convert a situation into opportune
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Academic Definition:
An Entrepreneur (ahntra
pra nur) is a personwho organizes and manages a businessundertaking, assuming the risk for the sake of
profit. Any person (any age) who starts andoperates a business is an entrepreneur.
Our Definition:
An entrepreneur is enterprise, moderate risk-taker, innovative, CEO/MD, Opportunist,
Independent, hardworking, good manager,honest, discovery of market, sake of making
profit,
An Entrepreneur who starts and/or run an enterprise
with innovative way, vision & leadership and a motiveof earning profit by taking moderate risk
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Entrepreneur vs. Inventor
Thomas Edison Vs. Albert Einstein
Great ideas are a dime a dozen.Action is what differentiates
an entrepreneur from an inventor.
Being an entrepreneur has more to do with a state of mind
than a state of employment.
Entrepreneurs spend more time on business plans than just
about anything else. But business plans are often useless,
even counterproductive; the old adage that "planning is
everything; plans are nothing
The important thing is theprocess of planning but youalso have to be willing to throw out that plan. The single
biggest advantage you have as a start-up versus an
established business is your ability to be nimble, to act, to
change. If you're beholden to your ideas or to your business
plan, you will fail.
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Type of Entrepreneurs
1. Adviser: Some entrepreneurs are
paid for giving advice, such as lawyers,accountants, and financial advisers.
2. Administrator/Organizer: Like
organizing? You can plan weddings,
oversee projects, or take care of
accounts, databases, and order
fulfilment.
3. Builders/Creators: Artists, bakers,
carpenters, and designers are
examples of entrepreneurs driven to
create something tangible where it did
not exist before. 4. Caretaker: People with a helping
personality find opportunities taking
care of people, plants or property.
5. Communicator/Trainer: If you can
transmit information or communicate in
different languages you might find
6. Entertainer/Host: If you thrive on
being with people, you may find anentrepreneurial opening in the
hospitality industry or service industries
such as hairdressing. Or you may be
an entertainer, actor, musician, or
singer.
7. Investor/Owner: If you have money
to invest you can put your capital to
work for you investing in stocks, real
estate or businesses.
8. Seller: This covers salespeople and
brokers in our purchases, from realestate to insurance to art.
9. Technologist/Engineer: If you love
figuring out computers, autos and
engines, you may want to explore
entrepreneurial opportunities in
software development, engineering ortechnolo .
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Entrepreneurship
1.
A theory of evolution of economic activities.2. A continuous process of economic development.
3. An ingredient to economic development.
4. Essentially a creative activity or an innovative
function.5. A risk taking factor which is responsible for an end
result.
6. Usually understood with reference to individual
business.7. The name given to the factor of production, which
performs the functions of enterprise.
8. Creates awareness among people about economic
activity.
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Three Aspects of Entrepreneurship
1. The identification/recognition of market opportunityand the generation of a business idea (product or
service) to address the opportunity
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Three Aspects of Entrepreneurship
2. The marshalling and commitment of resources inthe face of risk to pursue the opportunity
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Three Aspects of Entrepreneurship
3. The creation of an operating businessorganization to implement the opportunity-motivated
business idea
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Aspect of Entrepreneurship (2nd
thought)
We would first have productive entrepreneurship. This would
include those activities identified by Schumpeter with the possible
addition of a few additional types of combinations.
Then we might think ofunproductive entrepreneurship. Firms can
base their profits on a special relationship to government or a special
provision of the law that favors them. Think of "crony
capitalism." Some people term this type of activity, "rent-
seeking." You might even think of corruption as fitting in here. If the
formal institutions of a country worked well, none of these type of
activities could exist. What is also clear is that the opportunities for
unproductive entrepreneurship could pull some individuals away
from productive entrepreneurship. There is less risk.
If we can have unproductive entrepreneurship, might there not
be destructive entrepreneurship? We might even call the people
who engage in this type of entrepreneurship criminals. Is crime a
matter of passion, or just a matter of work? Think of drug dealers.
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Entrepreneurship
Some advantages You are your own boss
Enjoy the profits from you efforts
Sense of pride in your business
Flexibility in your work schedule
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Entrepreneurship
Some disadvantages Will need to put in long hours
Need money to start
Have to keep up with government rules and regulations
May have to mark hard decisions (hiring, firing, etc.)
May lose money
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What motivate entrepreneurs?
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Corporate Entrepreneurship
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Type of Entrepreneurship
1. Small BusinessEntrepreneurship
There are 5.7 million small businessesin the U.S. They make up 99.7% of all
companies and employ 50% of all non-
governmental workers. In India 41% in
Urban India are Self-Employed.
2. Scalable StartupEntrepreneurship
Unlike small businesses, scalable startups
are what Silicon Valley entrepreneurs
and their venture investors do. These
entrepreneurs start a company knowing
from day one that their vision could
change the world. They attract
investment from equally crazy financial
investors venture capitalists.
3. Large CompanyEntrepreneurship
Large companies have finite life cycles.
Most grow through sustaining
innovation, offering new products that
are variants around their core products.
Changes in customer tastes, newtechnologies, legislation, new
competitors, etc. can create pressure
for moredisruptive innovation
requiring large companies to create
entirely new products sold into new
customers in new markets. Existingcompanies do this by either acquiring
innovative companies or attempting to
build a disruptive product inside.
Ironically, large company size and
culture make disruptive innovation
extremely difficult to execute.4. Soc ialEntrepreneurship
Social entrepreneurs are innovators
who focus on creating products and
services that solve social needs and
problems.
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Next session
1-F SCOPE OFENTERPRENEURSHIP Robert,Michele &DeanPage: 1 -57
5%2-S Corporate entrepreneurship
3-S
Individual
entrepreneurship: Part time,
small and medium ventures4-W Profile of an individualentrepreneur: Aptitude,skills, and knowledge set
White paper:History's 10 greatestentrepreneursAssignment: What ittakes to be asuccessfulentrepreneur? (1)
Robert,Michele &DeanPage: 58 -
73
10%5-F6-S Entrepreneurial mindset:Creativity and innovation-S
8-WProfile of every individualstudents in terms ofentrepreneurial traits
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Entrepreneurial mindset: Creativity
and innovation
The Creative Process has six phases1. Inspiration: In which you research and generate
many ideas
2. Clarification: In which you focus on your goals
3. Evaluation: In which you review your work andlearn from it
4. Distillation: In which you decide which of your
ideas to work on
5. Incubation: In which you leave the work alone
6. Perspiration: In which you work determindedly on
your best ideas
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Entrepreneurial creativity 5 action
areas
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25 Common Characteristics of
Successful Entrepreneurs
1. Do what you enjoy: What you get out of your business in the form of
personal satisfaction, financial gain, stability and enjoyment will be the sumof what you put into your business.
2. Take what you do seriously: You cannot expect to be effective and
successful in business unless you truly believe in your business and in the
goods and services that you sell.
3. Plan everything: Planning every aspect of your home business is not only amust, but also builds habits that every home business owner should
develop, implement, and maintain. The act of business planning is so
important because it requires you to analyze each business situation,
research and compile data, and make conclusions based mainly on the
facts as revealed through the research.
4. Manage money wisely: There are two aspects to wise money management.
The money you receive from clients in exchange for your goods and services
you provide (income)
The money you spend on inventory, supplies, wages and other items
required to keep your business operating. (expenses)
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5. Ask for the sale:A home business entrepreneur must always remember that
marketing, advertising, or promotional activities are completely worthless, regardless
of how clever, expensive, or perfectly targeted they are, unless one simple thing is
accomplished--ask for the sale.
6. Remember it's all about the customer:
7. Become a shameless self-promoter (without becoming obnoxious): One of the
greatest myths about personal or business success is that eventually your business,
personal abilities, products or services will get discovered and be embraced by the
masses that will beat a path to your door to buy what you are selling. But how can this
happen if no one knows who you are, what you sell and why they should be buying?
Self-promotion is one of the most beneficial, yet most underutilized, marketing tools
that the majority of home business owners have at their immediate disposal.8. Project a positive business image:
9. Get to know your customers:
10. Level with the technology:
11. Build a top-notch business team:
12. Become known as an expert:13. Create a competitive advantage:
14. Invest in yourself: Top entrepreneurs buy and read business and marketing books,
magazines, reports, journals, newsletters, websites and industry publications, knowing
that these resources will improve their understanding of business and marketing
functions and skills. They join business associations and clubs, and they network with
other skilled business people to learn their secrets of success and help define theirown goals and objectives.
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15. Be accessible:
16. Build a rock-solid reputation:
17. Sell benefits.
18. Get involved.
19. Grab attention: Small-business owners cannot waste time, money
and energy on promotional activities aimed at building awareness
solely through long-term, repeated exposure. If you do, chances are
you will go broke long before this goal is accomplished. Instead,
every promotional activity you engage in, must put money back in
your pocket so that you can continue to grab more attention and
grow your business.
20. Master the art of negotiations.
21. Design Your workspace for success.22. Get and stay organized.
23. Take time off.
24. Limit the number of hats you wear.
25. Follow-up constantly.
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Reference:
http://www.wherecreativitygoestoschool.com
To check how creative you are!!!
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End-sem Presentation
1. Jack welch - straight from the gut
2. Icon - Steve jobs - the greatest second
3. How 11 Indians pulled off the impossible-Making
breakthrough innovation happen - Porus Munshi
4. Lee Iacocca - autobiography (Chrysler)5. Sam Walton - Made in America
Made in Japan - Akio Morita & Sony
6. Simply Fly - Caption Gopinath (Deccan)
7. Business Legends - Gita Piramal (Birla, Tata, WalchandHirachand, Kasturbhai Lalbhai)
8. Business Maharajas - Gita Piramal (Ambani, Bajaj,
Birla, Goekna, Khaitan, Bharat and Vijay Shah, Tata)
9. Richard Branson Loosing virginity [Taken]
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Due-diligence & Valuation Criteria
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Financial Risk Cycle
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When its Self-finance!!
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ISBE-B1-FC3(1)List of concepts
Branding
CBBE Model Brand Equity
Brand Positioning
Brand Strategy Making Creating a Brand!!!
POPs & PODs
BCG
BSC
Strategy Map
Continuous Process Improvement
BI Business Intelligence - Gognos
AI Artificial Intelligence
Market Opportunity Analysis
GAP Analysis
F ibili S d f L hi f N
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Feasibility Study of Launching of New
Car
Objective Statement:
Twasha To select a car which has adequate
demand to create an opportunity of sales for
achieving 20% market share (including existing
model) in a given segment within a year.
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