View
216
Download
0
Category
Preview:
Citation preview
8/8/2019 Enter Rene Ur Ship
1/30
8/8/2019 Enter Rene Ur Ship
2/30
Entrepreneurship (PEV)
Some Trends in research
The risks and tradeoffs of an entrepreneurial career have beenstudied extensively
Women and minority entrepreneurs have mushroomed
Entrepreneurial efforts have made major contributions to jobcreation and innovation in the world economies
New and small firms that have at least 20 % salesgrowth every year (for five years), starting with a base ofat least $100000 has been termed as a GAZELLE
8/8/2019 Enter Rene Ur Ship
3/30
Entrepreneurship (PEV)
Reasons for growth of Entrepreneurship (students)
8/8/2019 Enter Rene Ur Ship
4/30
Entrepreneurship (PEV)
Reasons for growth of Entrepreneurship
Changing Industry Structure
New Technologies (flexible specialization) Deregulation & Privatization
Increasing demand for variety
Emerging Services Sector(software services sector)
Easier access to resources
Return on Innovation (Strengthening IPR)
Rising dissatisfaction at job
Acceptance of ex-entrepreneurs in the job market
8/8/2019 Enter Rene Ur Ship
5/30
Entrepreneurship (PEV)
Major contributions of Entrepreneurship(students)
8/8/2019 Enter Rene Ur Ship
6/30
Entrepreneurship (PEV)
Major contributions of Entrepreneurship
Job Creation
Economic growth
New Technologies, processes & business models
Serving small markets (Focus)
8/8/2019 Enter Rene Ur Ship
7/30
Entrepreneurship (PEV)
Disadvantages of running your own business(students)
8/8/2019 Enter Rene Ur Ship
8/30
Entrepreneurship (PEV)
Disadvantages of running your own business
You are alone
All decisions are yours
All losses are yours
You will need to put in long hours with no quickresults
Lack of success affects self esteem
Exiting the business is usually difficult
Pressures will affect social and family life
8/8/2019 Enter Rene Ur Ship
9/30
Entrepreneurship (PEV)
Advantages of running your own business(students)
8/8/2019 Enter Rene Ur Ship
10/30
Entrepreneurship (PEV)
Advantages of running your own business
You are the boss
All profits are yours
You will experience a great variety of roles and tasks
Increases self confidence
Immensely satisfying
8/8/2019 Enter Rene Ur Ship
11/30
Entrepreneurship (PEV)
Types of Entrepreneurs (based on timing of venture creation)
Early Starters, (bill gates, Steve jobs)
Experienced (Narayanmurthy)
Mature (CEOs, COOs, Ashok Sutta, Subrato Bagchi)
Types of Entrepreneurs (based on socio cultural variables)
First Generation (Dhirubhai ambani, naryanmurthy)
Entrepreneurs from business families
Minority entrepreneurs
8/8/2019 Enter Rene Ur Ship
12/30
Entrepreneurship (PEV)
Types of Entrepreneurs (based on Entrepreneurial activity)
Novice
Serial Entrepreneur Portfolio Entrepreneur
8/8/2019 Enter Rene Ur Ship
13/30
Entrepreneurship (PEV)
Common Causes of failures
Lack of employees
Lack of knowledge, skills
Limitation of funds
Customer resistance to new ideas
Change in market dynamics
8/8/2019 Enter Rene Ur Ship
14/30
Entrepreneurship (PEV)
Common Causes of failures
Lack of experienced management
Shortage of skilled manpower
Poor financial management (bad receivables, unproductiveinvestments,)
Rapid growth (lack of cash kills)
Lack of business linkages (vendors, customers)
Weak Marketing efforts Weak Market research
Short term outlook
8/8/2019 Enter Rene Ur Ship
15/30
Entrepreneurship Evolution (PEV)
Myths or Facts!
Entrepreneurs are Doers and not Thinkers (clearcut business plans)
Entrepreneurs are born, not made
Entrepreneurs are always Inventors (Innovators yes)
Entrepreneurs are Academic and Social Misfits
8/8/2019 Enter Rene Ur Ship
16/30
Entrepreneurship Evolution (PEV)
All Entrepreneurs need is money to start
Entrepreneurs experience high failure rates(Corridor Principle: With every venture launched, new and unintended opportunitiesarise, 3Ms Post it notes, Sivasankaran)
Entrepreneurs are Extreme Risk Takers (calculatedrisk)
Case 1.1 & Handout 1
8/8/2019 Enter Rene Ur Ship
17/30
Entrepreneurship Evolution
A Theory of entrepreneurship is defined as averifiable and logically coherent formulation of
relationships, or underlying principles that eitherexplain entrepreneurship, predict entrepreneurialactivity or provide normative guidance (prescriberight action in particular circumstances)
8/8/2019 Enter Rene Ur Ship
18/30
Entrepreneurship Evolution
Basic Approaches to Entrepreneurial Schools of thought
Macro view Environmental School of thought
Financial School of thought Displacement School of Thought
Micro View People / Entrepreneurial Trait School of thought
Venture opportunity school of thought Strategic Formulation of thought
8/8/2019 Enter Rene Ur Ship
19/30
Entrepreneurship Evolution
Macro View (based on external factors that relate to success or failure ofventures)
Environmental School Basically factors like institutions, values etc. influence people
in strengthening or weakening the desire to be anentrepreneur
Social environment i.e. influence of friends and relatives, orWork environment will influence
Financial/ Capital School This school focuses on possibilities of success in seekingseed and growth capital
8/8/2019 Enter Rene Ur Ship
20/30
Entrepreneurship Evolution
Macro View (based on factors that relate to success or failure of ventures)
Displacement School (negative connotation) It refers to the system making someone feel out of place and
getting him or her in feeling frustrated
Political displacement (negative connotation)
Cultural displacement (Muslims in Gujarat, minority businesses inUS)
Economic displacement (job losses etc.)
8/8/2019 Enter Rene Ur Ship
21/30
Entrepreneurship Evolution
Micro View (based on factors that are specific to entrepreneurship)
People / Entrepreneurial Trait School of thought This school believes that there are certain characteristics that
are common to successful entrepreneurs and if copied wouldincrease success chances (creativity, determination, technicalknowledge, perseverance etc.)
The Venture Opportunity School Focuses on opportunity aspect of new venture, idea sources,
development of concepts, implementation of opportunities,Creativity & market awareness are the key criterion
Corridor principle: Preparation meeting opportunity equalsluck.
8/8/2019 Enter Rene Ur Ship
22/30
Entrepreneurship Evolution
Micro View (based on factors that are specific to entrepreneurship)
The Strategic Formulation School
Refers to planning process and identifying Unique markets (Mountain v/s Mountain gap strategies indicating majormarkets as well as interstices of larger markets)
Unique People (Great Chef strategies)
Unique Products (Better Widget strategies, innovations that encompassnew or existing markets)
Unique Resources (Water Well strategies, gather or harness specialresources)
HANDOUT 2
8/8/2019 Enter Rene Ur Ship
23/30
Entrepreneurship Evolution
Another way to examine entrepreneurship is through a ProcessApproach
Integrative Approach (HANDOUT 3)
Assessment Approach (HANDOUT 4)
Multidimensional Approach (HANDOUT 5)
Case Study 2.1
8/8/2019 Enter Rene Ur Ship
24/30
Corporate Entrepreneurship
Corporate Entrepreneurship or Intrapreneurship
A process whereby individual/s in an existingorganization create a new org or instigate renewal orinnovation within the organization
Strategic renewal
Innovation Corporate venturing
8/8/2019 Enter Rene Ur Ship
25/30
Corporate Entrepreneurship
Need for Intrapreneurship
8/8/2019 Enter Rene Ur Ship
26/30
Corporate Entrepreneurship
Need for Intrapreneurship
Very high competitive intensity
Losing bright people to self businesses (drivers are venturecapital & respect for entrepreneurship)
Need to improve productivity & efficiency
Downsizing of major corporations
HANDOUT 7
8/8/2019 Enter Rene Ur Ship
27/30
Corporate Entrepreneurship
Corporate venturing obstacles due to traditionalmanagement practices
Handout 6
8/8/2019 Enter Rene Ur Ship
28/30
Corporate Entrepreneurship
Factors prevalent in organizations that aresuccessful innovators (James Quinn)
Atmosphere and Vision Orientation to the market
Small, Flat organizations
Interactive learning
Skunkworks
HANDOUT 9
8/8/2019 Enter Rene Ur Ship
29/30
Corporate Entrepreneurship
Reengineering Corporate thinking
To assess your enterprise on encouragingIntrapreneurship ask the following queries
Does your company encourage self appointed intrapreneurs
Does your company finds ways to retain intrapreneurs
Are people in your company allowed to do the job in theirown way
Has your company quick and informal ways to access theresources to try new ideas
Does your company tolerate mistakes
8/8/2019 Enter Rene Ur Ship
30/30
Corporate Entrepreneurship
Reengineering Corporate thinking
To assess your enterprise on encouragingIntrapreneurship ask the following queries
Are people in your company open to new ideas or theyprotect their turf
Are intrapreneurs in your company forced to use internalskills and resources or can they go outside for help
Are employees allowed to take risks
Handout 8, 10 & 11
Recommended