Enter Rene Ur Ship

8/8/2019 Enter Rene Ur Ship

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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


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Reasons for growth of Entrepreneurship (students)


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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


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Major contributions of Entrepreneurship(students)


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Major contributions of Entrepreneurship

Job Creation

Economic growth

New Technologies, processes & business models

Serving small markets (Focus)


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Disadvantages of running your own business(students)


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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


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Advantages of running your own business(students)


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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


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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


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Types of Entrepreneurs (based on Entrepreneurial activity)

Novice

Serial Entrepreneur Portfolio Entrepreneur


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Common Causes of failures

Lack of employees

Lack of knowledge, skills

Limitation of funds

Customer resistance to new ideas

Change in market dynamics


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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


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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


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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


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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)


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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


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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


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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.)


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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.


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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


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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


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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


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Need for Intrapreneurship


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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


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Corporate venturing obstacles due to traditionalmanagement practices

Handout 6


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Factors prevalent in organizations that aresuccessful innovators (James Quinn)

Atmosphere and Vision Orientation to the market

Small, Flat organizations

Interactive learning

Skunkworks

HANDOUT 9


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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


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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

Documents

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