1.MMS IMCOST(RANJAN)EntrepreneurialPerspective

8/12/2019 1.MMS IMCOST(RANJAN)EntrepreneurialPerspective

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Entrepreneurship ManagementSubject Code : 4.3

Total Marks : 100External : 60 Marks

Internal : 40 Marks

Inclusion & ConsiderationsAttendance : Not less than 75%

Class Test : Better 2 out of 3

Case Study : Presentation

Group Presentation : Subject Related

Discipline : Sincerity & Obedience

Partici ation : Effective


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Entrepreneurship Management

Course Content

Unit 1 [Entrepreneurial Perspective]

Concept of Entrepreneur, Entrepreneurship and

Enterprise, Advantages Entrepreneur

Nature and Development of Entrepreneurship;

Gender issues in Entrepreneurship.

The dynamic role of Small Business / Industryin Economic Development

Personality of an Entrepreneur / Entrepreneur

Innovation and Entrepreneurship


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Course Content

Unit

2 [The Entrepreneurial Environment]Policy Perspectives in India to promote

Entrepreneurship

Analysis of Business Opportunities in differentsectors of economy at National and Global levels.

Quick - start Routes to establish an Enterprises

(Franchising, Anciiliarising & Acquisitioning)

Support Organizations for an Entrepreneur and

their Role

Legal framework for starting a Business / Industry

in India.


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Course Content

Unit

3 [TheEnterprise Launching]Product / Project identification

Developing a Project Report / Business Plan

Business Financing including venture Capital

Finance

Managing early growth of a Business,incubation Program.

New Venture expansion - strategies and issues.


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Reference Textbook

Beyond Entrepreneurship- By James C. Collins, William C. Lazier


- By P. N. Singh, By J. C. SabooDynamics of Entrepreneurial

- By Vasant Desai

Entrepreneurship Development in India

- By Bishwanath Ghosh

Literature Published by Support Institutions, viz

i) SIICOM ii) SIDBI iii) MSSIDC iv) NSIC


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Why Study Entrepreneurship Management

Entrepreneurial success is central for

enhancing the economic opportunity of nations

and organizations

Entrepreneurs create and exploit change

It encourages innovation and have the ability of

invention

It mobilizes optimum utilization of resources to

create value by invention

It paves for the improvement of existing

products or services

A direct relationship between ownership,

lannin and control


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Who is an entrepreneur ?Dictionary : One who recognizes and manages only enterprise specially

involving high risk.

Economist : One who brings resources, labour, raw materials and other

assets into combinations that increase their value from before

and also one who introduces changes, innovations and a new

order.

Psychologists : One who is typically driven by some forces, which create a

desire to obtain or attain something.

Sociologists : One whose actions would determine his social status and who

contributes to the development of society.

Management : One who has a vision and generates an action plan to achieve

it.

The word Entrepreneurhas been derived from the French word Entrependre

which refers individuals who are undertakers(i.e. those who undertookthe

risk of new enterprise.


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Entrepreneur Vs EntrepreneurshipEntrepreneur Entrepreneurship

Refers to a person Refers to a process

Visualizer Vision

Creator Creation

Organizer Organization

Innovator Innovation

Technician TechnologyInitiator Initiative

Decision Maker Decision

Planner Planning

Leader Leadership

Motivator Motivation

Programmer Action

Risk Taker Risk Taking

Communicator Communication

Administrator Administration


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Entrepreneur Vs Manager

Parameter Entrepreneur Manager

Primary Motive Independence, Creative

opportunity & economicProfit

Promotion and other

traditional corporaterewards such as

increments, perks, power

and control over team

Activity Direct involvement in all

areas of management &business

Delegates & Supervises

rather gets directlyinvolved. Does not

consider aspects of the

business or management

that are outside his job

definition

Attitude towards Failureand Mistakes

Takes full responsibilityand tries to correct

mistakes and overcome

failures

Tries to avoid mistakesand failures. May be

cautious to the point of

inaction if the risk is too

high

Risk Taking Character Moderate to high risk taker.More risk More profit.

Low risk taker.


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Entrepreneur Vs Manager

Parameter Entrepreneur Manager

Decision making

capabilities

Takes all decision to follow

his dream

Agrees with companys

policies and those above inthe corporate hierarchy

Family Background Comes from a with a

history of entrepreneurs or

small business May even

come from farmingbackground.

Comes from a family

whose members generally

work for large corporations

or the government

Relationship with others Basis of relationship with

others is transactions and

deal making; To define his

own hierarchy.

Relates to others within the

existing hierarchy.

Relationship with each

other

Must have managerial

skills. Management is a

subset of entrepreneurship

Manager cannot be an

entrepreneur

Age In males it is generally 25

to 35 and among females it

is between 35 to 45.

Depends upon

qualification, experience

and performance.


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Entrepreneur Vs EntrepreneurshipEntrepreneur Entrepreneurship

Entrepreneurs are people with vision who

recognize and pursue opportunity, create

and establish business or new ventures,

take into account the risk involved, have

control over the present and future and

have the flexibility to change and adapt

with the changing times.

Entrepreneurship is the pursuit of a

discontinuous opportunity involving the

creation of an organization (or sub-

organization) with the expectation of

value creation to the participants.

An entrepreneur is a person whovisualize a particular business venture

and then goes on to create it. Basically,

the person is the originator of a new

business venture and a new organization

for that venture.

Entrepreneurship is the means by whichnew organizations are formed with their

resultant job and wealth creation. The

necessary condition that the organization

created, actually provides goods and/or

services to society, not merely to internal

consumption.The entrepreneur is that individual (or

team) which identifies the opportunity,

gathers the necessary resources, creates

and is ultimately responsible for the

performance of the organization.

Entrepreneurship is the process of

creating value by bringing together a

unique package of resources to exploit an

opportunity.


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Importance of Entrepreneurship

It helps in overcoming the problems of population, unemployment,underemployment and hidden unemployment.

It is the key to economic development.

It helps in harnessing youth vigour.

It provides greater and varied employment opportunities.

Entrepreneur is a business leader who plays a pivotal role in fosteringeconomic growth

It paves the way for industrial development.

Entrepreneurship helps in solving the problems of monopoly andbalanced regional development.

It helps in increasing the per capita income and hence the life style.

It helps in higher individual savings and hence more purchasing power.

It provides more revenue for the government in the form of income tax,sales tax, export duties, import duties etc.

It guides the direction for national economics, industries and markets.

It introduces quantum leaps in technology and more productive use ofresources.

It guides innovations, creativity and wealth creation.


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Advantages / Benefits of an EntrepreneurYour own boss and boss to others.

Your decision will guide the success or failure of the enterprise

You will have the chance to put your ideas into practice.

You will make money for yourself rather than for somebodyelse

You have to participate in every aspect of the enterprise thus

to learn and gain practical experience in varied businessdiscipline

You will work in the area of your choice and thus enjoy your job

You will get personal satisfaction of running a business and to

develop self confidence.You will contribute in providing job for others.

You develop your own action plan for execution.

You will work directly with your customers and do projections.

You will contribute in raising the life style and radical change inthe socio economic structure.


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Disadvantages / Risk of an Entrepreneur

Alone performer

Solitary decision maker

All may be a loser at the end.

Work may not be satisfying.

Not able to change job frequently.

Long working hours.

Lack of success will hamper enthusiasm.To remain in business can be difficult.

May disturb family and social life.

Risk of career, finance and more uncertainty.


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Reason for growth of Entrepreneurship

Industrial Structure

New Technologies

Deregulation & Privatization

Formation of Business Communities

Increasing demand for variety / Changing choice

Growth and need of the service sector

Government Subsidies and Incentives

Increasing flow of Information

Easy access to resources

Entrepreneurial education

Quick return on Innovation

Entrepreneur regarded as a hero

High regard for self employment

Rising dissatisfaction at job

Acceptance of ex-entrepreneur in job market

Ch t i ti / P lit f


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Characteristics / Personality of an

EntrepreneurAlways takes initiative

Translates opportunity into reality

Determined to face the situation / Optimistic

Information seeking from all corners / Realistic

Demand for quality and efficiency / Value Product

Risk takingFinancial, Social, Psychological

Goal setting

Commitment to work / Long working hours

Systematic planning and monitoring / Organized

Self belief, Persuasion and networking

Independent & self confidence but not over confident


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Respect for work

Always innovative

Perception of economic opportunity

Imagination and creativity

Believe in business environment quick adaptability

Enjoy freedom of expression and action

Gain satisfaction from completion of work

More motive to achieve than mere competitiveness

Readily takes feedback

Invite and respect constructive criticismReports a good relationship with father

Makes the economy more competitive

Does not particularly stand out in crowd

R l i E i D l t


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Role in Economic Development Generation of more employment

Economic reforms Delicensing of industries

Lowering of interest rates

Formulation of outsourcing culture

In balancing regional development

Optimum utilization of natural resources

In capturing market opportunities

In overall economic development

Lowering the load of job market

Providing options for job seekers

Further encouraging intrapreneurs


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Entrepreneurs Vs Intrapreneurs

Entrepreneurs Intrapreneurs

Owner / Operator An Employee

Implements own or others ideas Shares own ideas, seeks approval

Expects always financial profits Remuneration / Recognition / Reward

Takes extreme risks Calculated risk

Profit goes to the entrepreneur Profit for the organization

Needs to encourage intrapreneur Way to improve company performance

Education and experience less concern More concern or a must

Inclined more towards consumer sales More inclined towards B 2 B products

Generally at age between 3040 Most often after 40

Involvement in all business areas Major areas and the delegated areas

Full responsible of failure / success Tries not to take failure

Correct mistakes and tries to overcome Avoids risky projects as much possibleGenerally from entrepreneur or

business family or background

Mostly salaried and rarely entrepreneur

family background

Generally defines his own hierarchy Depends on the existing hierarchy

E i f I


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Environment for an Intrapreneur To operate on the frontiers of technology

To encourages new ideas To encourage trial and error

To allow failures

Not to try to place any parameters & opportunities

To make resources available to all

To have a multidisciplinary team based approach

To have a long time horizon for product development

To have an appropriate reward system

To provide sponsorship and mentorship

The top management needs to support the efforts of

an intrapreneur

R d d Ch f E t


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Recommended Change for Entrepreneur

To translate career ambition into specific business

goalsTo use people management skills to motivate and

inspire their workforce

To capitalize on skills to manage the financialaspect of the venture

To turn aggression into a risk taking approach

To observe functional expertise while selecting the

line of business

To develop leadership qualities before starting

their own venture

A character to lead from the front

Documents

1.MMS IMCOST(RANJAN)EntrepreneurialPerspective