Entrepreneurship Development: Unit No. 1

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• "When you reach an obstacle, turn it into an opportunity. You have the choice. You can overcome and be a winner, or you can allow it to overcome you and be a loser. The choice is yours and yours alone. Refuse to throw in the towel. Go that extra mile that failures refuse to travel. It is far better to be exhausted from success than to be rested from failure.

• - Mary Kay Ash, founder of Mary Kay Cosmetics

• Fortunately, right now 'entrepreneurship' is one of the business world's biggest buzz words and so many young people in our country are looking up to this new generation of CEO's as their modern day rock stars. Whenever you have that effect, it makes the job of promoting entrepreneurship much easier.

• Daymond John

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Entrepreneurship DevelopmentEntrepreneurship Development

LEARNING OBJECTIVES

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• To understand the basics of entrepreneurship

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News Article

• Young entrepreneurs quitting corporate jobs to solve real world problems in rural India.

(Article from Economic times 16th Aug 2013, Emerging Businesses)

News

Some Facts about new businesses

• There are about 4200 venture funded start up in India.

• India has jumped 12 places in Ease of business index and currently at 130th position

• It takes around 29 days to start a new business in India while in New Zealand it takes only half an day

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• When it comes to complete filing process it takes around 4.3 years while in Singapore its only 0.8 years

• In terms of payment of tax, India ranks a low 157 owning to a complicated tax structure and number of declaration made every year.

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Flipkart• A quick glance at Flipkart's timeline

shows it was to start as a price comparison platform, but there weren't enough e-commerce sites to compare. So, both the Bansals, who were colleagues at IIT-Delhi, and then at Amazon.com, thought, “why not start an e-commerce site?” 

• From a start-up with an investment of just four lakhs rupees, From 2011 to 2014, Flipkart grew its sales from $10 million to an annualized $2 billion, an over 100 times growth in three years.

Entreprendre

(derived from French word)

which means to initiate or undertake

The word entrepreneur is approx. 180 years old, having come into English from French in 1828

ENTREPRENEURSHIP may defined in various ways, but the four key elements involved in it are:

i. Innovation.ii.Risk-taking.iii.Vision.iv.Organising skill.

Entrepreneur

An entrepreneur is an individual that identifies the opportunity, gather the necessary resources, creates and ultimately responsible for the performance of the organization.

LEARNING OBJECTIVES

• To get a clarity on characteristics of the entrepreneurs.

"Focus on simplicity, listen to your customers and iterate if you fail.“-Jan Koum

"Focus on simplicity, listen to your customers and iterate if you fail.“-Jan Koum

• “Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody. Nothing else mattered to us.”

• The company employs 55 people and sold to Facebook for US$19 billion. As of 22 April 2014, WhatsApp had over 500 million monthly active users, 700 million photos and 100 million videos are shared each day, and the messaging system handles more than 10 billion messages each day

Who is Entrepreneur?

At least a Person

Who is a Person

Any Human Being (but human are unique and critical)

Has own i) thinking,

ii) working style and iii) reaction after receiving

(may be right or wrong in one’s view)

Entrepreneur is a ‘Person’, who is IPS

I - Ability to initiate and Innovate

P - Can generate Profit and

S - Work is dedicated to Society

Organization

Skills

Urge

Enterprise

Risk

Innovation

Management

Growth

Vision

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Why Entrepreneurship

YOU

Your Family

SOCIETY

Country

Why to become ‘Entrepreneur’?

For You

own organization work for yourself total satisfactionhigh motivation secured future charm for life

family business support to family social attribute

For Society

employment opportunities in Indiadevelop the entrepreneurial culture among the business community

augment national GDP and improve BOPmigration of qualified people to other country for employment.

Prevent people to indulge in anti social activities and thereby lead to crime.

THINK ABOUT

YOU

Your Family

SOCIETY

Country

MOTIVATION

Employee

PromotionIncrement

Facility

Entrepreneur

SuccessCharm

Self Actualization

Reality

Dream

What is Entrepreneurship?

It refers to a process of action an entrepreneur undertakes

to establish his enterprise.

It is a creative and innovative response to the environment

It is a process; how he works?

Characteristics of Entrepreneurship

Entrepreneurship

DecisionStrong Desire to Reap BenefitsConstruction Skills

Innovative Urge

Gap-Filing Function

Risk Bearing

Leadership Quality

Dynamic Process

Management skills

Economic Activity

Entrepreneurship Traits/ Compentencies

• Mental Ability

• Clear Objectives

• Business Secrecy

• Human Relation Ability

• Effective Communication

• Technical Knowledge

• Decision Making

• Risk-Bearing

• Self-Confidence

http://www.redbus.in - Phanindra Sama & Charan Padamaraju

• Our culture - Learn, Implement, Grow - and have fun

• Second largest in India, only after IRCTC

• 12 million tickets an year

• Made to the list of top 50 most innovative companies in the world by business magazine ‘Fast Company’

Poochka Corner

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Types of Entrepreneur:Classification on the basis of

ownership• Founder or "Pure Entrepreneurs" : Example : Dhirubhai Ambani of the Reliance Group.

• Second-generation operators of family-owned business.

Example : Like Mukesh Ambani and Anil Ambani

sons of Dhirubhai Ambani of the Reliance Group now split into two: Reliance Industries Limited and Reliance-Anil Dhirubhai Ambani Group.

• Franchisees :

Example : NIIT has given its franchisee operations to local players after thorough scrutiny and proper training.

• Owner-Manager : When a person buys a business from the founder and then invests his time and resources in it he is called the owner-manager.

Types of Entrepreneur:Classification on the basis of

personality traits and style of running the business

• The Achiever : • These types of entrepreneurs have personal desires to excel.

The desire to make a mark in society, the desire to prove their excellence

• The Induced Entrepreneur : • These types of entrepreneurs are induced by some external

factors to start a business.  

• The Idea Generator : • Creative people who are always in search of innovative ideas for

setting up new business ventures.

Types of Entrepreneur:Classification on the basis of personality traits and style of running the business

•The Real Manager : •The real managers run the business in a systematic manner. They analyse business situation, assess the demands of future, both in terms of opportunities and threats and then take actions based on the above assessments.

•The Real Achievers : •The real achievers are full of life. They are looking for the achievement of not even their goals but also of people associated with themselves like employees, suppliers and distributors.

Types of Entrepreneur:Classification on the basis of the type of

business

• Industrial Entrepreneur : Industrial entrepreneur is an entrepreneur who is into

manufacturing of a product. E.g:- CK Ranganathan, Chic Shampoo, CavinKare, other products are Nyle and Spinz

• Trading entrepreneur:One who undertakes trading activities and is not

concerned with the manufacturing of products. E.g .Dhirubhai’s yarn trading

• Corporate Entrepreneur : • Corporate entrepreneur is a person who demonstrates

his innovative skill in organizing and managing a corporate undertaking which is registered under some act that given it a separate legal entity. e.g. Tata’s

• Agricultural Entrepreneur : • Agricultural entrepreneurs are those entrepreneurs

who undertake business related to agricultural activities. Like farm equipments, fertilizers and other inputs of agriculture. E.g. Anand Mahindra

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Types of Entrepreneur:Classification on the basis of the Development

1. First Generation Entrepreneur2. Modern EntrepreneurA modern entrepreneur is one who undertakes business

to satisfy the contemporary demands of the market. They undertake those ventures which suit the current socio-cultural trends.

3. Classical EntrepreneurA classical entrepreneur a stereo-type

entrepreneur is one whose aim is to maximize the economic returns at a level consistent with the survival of the firm, with or without element of growth.

Others

1. Innovative Entrepreneur

2. Imitative Entrepreneur

3. Drone Entrepreneur

4. Copreneur

LEARNING OBJECTIVES

• To discuss challenges faced by Women Entrepreneurs in india

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Head Held High

Sunil Savara, Madan Padaki and Rajesh Bhat,

•"From being absolutely illiterate, they acquired the ability to converse in English, work on computers and essentially, work like any other employee in a high-tech industry, in less than eight months," says Rajesh Bhat, co-founder and chief executive of Head Held High Services, which started operations in October 2012.•Padaki terms the rural youth "rubans". They mirror the urban youth in many ways---talent; entrepreneurship and tech-savviness.

Some Facts

• Women perform 66 percent of the world’s work, produce 50 percent of the food, but earn 10 percent of the income and own 1 percent of the property.

(Women, Business and the Law, World Bank, 2011)• In India, women comprise about 30 percent of

corporate senior management positions, which is notably higher than the global average (24 percent).

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• But in the overall workforce, India is one of the worst countries in the world — 113th out of 135 — when it comes to the gender gap.

• And women entrepreneurs constitute only 10 percent of the total number of entrepreneurs in the country.

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Women Entrepreneurship in India

• Earlier there were 3 Ks• Kitchen• Kids• Knitting

• Then came 3 Ps• Powder• Pappad• Pickles

• At present there are 4 Es• Electricity• Electronics• Energy• Engineering

Some examples• Mahila Grih Udyog

• 7 ladies started in 1959: Lizzat Pappad

• Name: Shahnaz Husain• Founder: Shahnaz Herbals Inc. • Achievements: Prominent

Indian female entrepreneur, who is best known for her herbal cosmetics, particularly skin care products.

The Shahnaz Husain Group has over 400 franchise clinics across the world covering over 138 countries.

Awarded the Padma ShriWorld's Greatest Woman

Entrepreneur by Success Magazine

• Name: Kiran Mazumdar Shaw• Founder and Chairman: Biocon

India (India's largest biopharmaceutical company)

Started Biocon in rented garage space

• Achievements: Awarded the Othmer Gold Medal, for outstanding contributions to the progress of science and chemistry.

Financial Times’ top 50 women in business list

Awarded prestigious Padma Shri (1989) and the Padma Bhushan (2005)

• Name: Ekta Kapoor• Founder and Managing

Director: Balaji Telefilms • Achievements: Produced

numerous soap opera, television series (Kyunki Saas Bhi Kabhi Bahu Thi, Kumkum Bhagya) and movies (Kyaa Kool Hai Hum etc.)

2012 Asia's Social Empowerment Award- Freedom Through Education

• Name: Ritu Kumar• Founder: Ritu (Introduce

the ‘boutique’ culture in India)

• Achievements: Awarded the Padma Shri Award 2013 for exceptional and distinguished service in the field of fashion, textile and craftsmanship.

Outstanding Women Entrepreneur Award by the PHD - Chamber of Commerce

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Challenges of Women Entrepreneurs

• 1. Problem of Finance: In the initial business stages, most women are forced to rely on personal funding, including for meeting working capital requirements

• Lack of collateral and a misogynist mindset are the main stumbling blocks women face in accessing loans

• 2. Scarcity of Raw Material: • 3. Stiff Competition: • 4. Limited Mobility:

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Challenges of Women Entrepreneurs

• 5. Family Ties: • 6. Lack of Education:• 7. Male-Dominated Society:• 8. Low Risk-Bearing Ability:• The country lacks also large-scale women-

oriented venture capital funds or institutions collateral-free loans of up to $100,000 (Rs 63 lakh).

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Problems• Dual role to play at workplace & at home place• Subordinate to men• Just that her being women• Non-awareness of facilities provided by government• Competition with large scale units• Problems related to marketing

Suggestions• Procedure of getting finance should be

simple• Effective propagation of programmes and

yojna• Linkages between product, services and

market centers.• Encouragement to technical and professional

education.75

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LEARNING OBJECTIVES

• To know about the importance of entrepreneurs in economic growth and development their role in it.

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• Trishneet Arora

• Ethical hacker

• TAC Security Solution

• North India’s first cyber Response team

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• Clients Including: Reliance, CBI, Punjab Police & 40% of them are aborad

• Turnover: 2 Crores

• Corporate Office in Ludhiana & Virtual Office in UK and Dubai

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Economic growth

• Economic growth is a process in which all efforts are made to increase national income, national output , per capita income , per capita output and standard of living of people by exploiting all the available resources of country.

• It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources (by education etc.), increase in the quantity of resources & improvements in technology or in another way an increase in the value of goods and services produced by every sector of the economy.

Economic Growth can be measured by an increase in a country's GDP (gross domestic product).

• The position of the entrepreneur in modern production is like that of the director of a play.

Modern economic development is closely linked with production. Modern production is higher complex.

The entrepreneur directs production and he must do whatever is necessary for its success.

Role and Importance of Entrepreneur in Economic Growth

1. The entrepreneur coordinates the factors of production. This involves not only assembling the factors, but also to see that the best combination of factors is made available for the production process.

2. The entrepreneur takes risk. This is an important function of the entrepreneur and the quantum of profit he receives is directly proportionate to risk he takes. Risks are generally based on anticipation of demand.

3. The entrepreneur innovates and he can undertake anyone type of the following five categories of innovation:

a. The introduction of a new good or new quality of good.

b. The introduction of a new method of production.

c. The opening of a new market.

d. The conquest of a new source of supply of raw material.

e. The carrying out of a new organization of any industry.

Economic Development

• Economic development applies in the context of people's sense of morality (right and wrong, good and bad).

• The definition of economic development given by Michael Todaro is an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice

• The economic development of a country to a large extent depends on human resources. But human resource alone will not produce economic development-there must be dynamic entrepreneurs.

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Importance of Entrepreneur in Economic Development

• Employment Generation

• National Income

• Dispersal of Economic Power

• Balance Regional Development

• Economic Independence

• Reducing Unrest and Social Tension Amongst Youth.

• Improvement in Living Standard

• Harnessing Locally Available Resources and Entrepreneurship.

• Innovation in Enterprises

House Joy

• Founders: Arjun Kumar and Sunil Goel

• The idea: On-demand home services (maintenance and home repairs to plumbing, electrical services, home-cleaning and computer repairs, beauty and in-house bridal make-up, laundry and dry cleaning, with pick-up and delivery )

• Market size: $100 billion• Fund-raising: Raised $30

million from Amazon, Vertex Ventures, Qualcomm, Ru-Net and Matrix Partners

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Walt Disney

• Walt Disney is the businessman behind the very successful theme park “Walt Disney World“.  Walt Disney was reportedly fired by a newspaper editor for not having good ideas and no imagination.  Disney World is currently valued at  $35 Billion dollars.

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Thomas Edison

• Before becoming successful, Thomas Edison tried more than 10,000 times to invent the light bulb.   When Asked about his failures, Edison stated that he knew “definitively over 9,000 ways that an electric light bulb will not work.”

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Fred Smith

• Founder of hugely successful company “Fed Ex” Smith’s college professor stated that his concept of Federal Express was “interesting, but not feasible”.

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Steve Jobs• Steve Jobs  was actually fired

from Apple Computers,  the very company that he is responsible for making it the success it is today.  When Jobs was fired from Apple, he was quoted stating “I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.”

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Oprah Winfrey

• Hailed as the “ Queen of Daytime Talk TV” Winfrey was fired from her news reporter gig at a Baltimore news station.  Oprah went on to build a successful following from her daytime talk show “The Oprah Winfrey Show”.  Oprah’s net worth is currently valued at 2.7 billion dollars.

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Steven Spielberg

• Steven Spielberg was rejected from film school 3 times before getting his huge break.  Spielberg is known for directing mega hits that include Jurassic Park and Jaws.

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Bernie Marcus and Arthur Blank

• Founders of the home improvement chain “The Home Depot” Marcus and Blank were fired from Corporate America in 1989.  These savvy businessmen went on to turn their Big Box store into a huge success and currently have over 2,200 retail stores in the United States with revenues exceeding 74.8 billion dollars.

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Colonel Sanders

• Colonel Sanders is the entrepreneur who founded KFC “Kentucky Fried Chicken” when he was 56 years old.  His recipe was reportedly rejected over 1,000 times before a restaurant picked it up.

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Henry Ford

• Ford founded two automotive companies that failed before he was able to gain success with the Ford Motor Company. At his time of death,  Ford’s estimated net worth was $188 billion dollars.

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CHARACTERISTICS OF SUCCESSFUL

ENTREPRENEURSSuccessful entrepreneurs• are independent• are self-confident• have determination • are goal-oriented• have a need to achieve and to set high

standards for themselves• are creative• are able to act quickly Sli

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ASSESS YOUR SUITABILITY FOR ENTREPRENEURSHIP

• Assess your interests• Hobbies and interests• Past experiences

• Assess your aptitude• Assess the advantages of entrepreneurship• Assess the disadvantages of

entrepreneurshipSlide 103

Factors Influencing Entrepreneurship

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Factor Affecting Entrepreneurial Growth

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Social Factors

• Practical Values• Emotional Block• Cultural Barriers• Respect for Entrepreneurs• Traditional Binding• Defective administrative and Compliance

System

Most Corrupt Country in World

Personal Factors

• Lack of Sustained Motivation• Difficulty and Ambiguity• Impatience in solving problems• Inability to dream and use subconscious