Personality & Innovation of an entrepreneur

ENTREPRENEURSHIP MANAGEMENT

PERSONALITY & INNOVATION OF AN ENTREPRENEUR

PRESENTED BY –

Bidyadhar Nayak (04)Prachi Jadhav (09)Rashmi Vaishya (14)Asha Rawat (19)

INTRODUCTIONEntrepreneur operates in an open

world whereas an intrapreneur operates within an organization.

He fights with the bureaucratic hurdles & inertia which normally sets in an organization to keep the entrepreneur spirit alive

AN ENTREPRENEUR’S PROFILE

Psychologist View

•Institutional capacity•Adaptive•Surmount social opposition

Sociologist View

•Collective approach•Keen towards social and cultural factors•studies entrepreneurship as a phenomenon of society

Economist View

•Focus as a mechanism, process, function, small business management and ownership•equilibrium between demand and supply and open competition environment

THEORIES

Sociological Theory 

Max Weber• Approached entrepreneurship

through the Lutheran work ethics which advocates work and sense of responsibility as valuable things

David C. McClelland’s •Needs for Achievements•Helps to stimulates through training programs

Edward Hagen•Withdrawal of status respect •Punjabi & Sindhi entrepreneur relocated to India from Pakistan

Anne Kovalainen's •Psychological model•To the context of the developing working life

Kari Vesala’s•Locus of control•which factors control his/her behaviour

Psychology Theories

WHAT IS INNOVATION?Innovation is investing of resources to create new wealth or investing of wealth to create new resources. It is measured by assessing its impact on environment, and therefore innovation should always be market focused.

INNOVATION & ENTREPRENEURSHIP- LINKInnovation is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth.

INNOVATIVE STRATEGY

The motto of a strategy for the on going business is Better and More, however motto of a strategy for innovation is New and Different.Why does one need to innovate?• To face competition• To stand out in a clutter• To survive recession• To solve certain problems

Innovation & profit: joseph Schumpeter’s theory

Innovation can be divided into 2 categories:- Reduce the cost of productionBy introducing new machinery, new technique, new method of organizing the firm

Increase the demand for the productBy introducing new product, new design, new method of advertisement

INSTILLING ATTITUDE FOR INNOVATIONTop management has to start treating the innovation initiative as a critical one in which every level of employees must participate. Following are the ideas:- Encourage creative conflict Big ideas come from small teams Learning happens away from desk Failure sometimes produces innovation Understand the product’s user

SOURCES OF INNOVATION

Most innovations results from a conscious, purposeful search for Innovative opportunities, which are found only in a few situations.

Within a company or industry, areas of opportunities can exist in the form:-

Unexpected occurrences Incongruities Process needs

UNEXPECTED OCCURRENCES

Example:-

Bajaj launched Sunny for rural and semi-urban markets to upgrade over Mopeds using modern technology(no gear)

INCONGRUITIES & DISAGREEMENTS

An incongruity within the logic can give rise to Innovation opportunities.

Example:-70% of two-wheelers were bought on finance provided by banks and FI.Bajaj started- “Bajaj Auto Finance” which provided finance to dealers.An incongruity between economic realities can also lead to innovations.

OUTSIDE THE COMPANY Demographic changes Changes in perception

DEMOGRAPHIC CHANGESInnovation opportunities possible due to changes in the no. of people, their age distribution, education, geographical location etc.In 80’s, primary target of bike zi7Man aged25-40, income 5000pmIn 90’s New audienceBoy aged17-21, pocket money 5000pm

CHANGES IN PERCEPTION

The glass is half-empty and half full are descriptions of the same phenomenon but have vastly different

meanings.Changing a manager’s perception from half-empty

to half-full opens big innovation opportunities.

Thank You..!