Disability workshop

How do I build my Business?Some Ideas and Approaches

K. KumarIndian Institute of Management BangaloreEmpowering Women and People with Disabilities through Entrepreneurship Education

Australia Award Fellowship Program

University of Sydney30 November2015(C) K. Kumar 2015Successful Entrepreneurship (Stevenson and Spence, 2007)Customer Needs

Personal Satisfaction

Economic Feasibility

SuccessfulEntrepreneurship(C) K. Kumar 20152Venture FormulaIdea = anything + you

Opportunity = idea + action

Action = f(Interaction) on Money, Product, Partners

Viable Venture = Opportunity + Commitment (C) K. Kumar 20153Causal and Effectual Logic(C) K. Kumar 2015

Effectual Logic helps in dealing with uncertainty surrounding new ventures4Principles of Effectuation*Patchwork quiltversus jigsaw puzzleAffordable lossversus expected returnBird-in-handversus opportunity cost analysis; or competitive analysesLemonadeversus avoiding contingencies, but leveraging themPilot-in-the-planeNon-predictive control(C) K. Kumar 2015*Source: Saras Sarasvathy5What is learnable in entrepreneurship?(C) K. Kumar 2015Study the Expert Entrepreneurs helped identify 5 principlesBird in Hand Principle - Start with your means.Don't wait for the perfect opportunity. Start taking action, based on what you have readily available: who you are, what you know, and who you know.Affordable Loss Principle - Set affordable lossEvaluate opportunities based on whether the downside is acceptable, rather than on the attractiveness of the predicted upside.Lemonade Principle - Leverage contingenciesEmbrace surprises that arise from uncertain situations, remaining flexible rather than tethered to existing goals.Crazy-Quilt Principle - Form partnershipsForm partnerships with people and organizations willing to make a real commitment to jointly creating the future--product, firm, market--with you. Don't worry so much about competitive analyses and strategic planning.Pilot in the Plane Control vs PredictionIf you can control something, you dont need to predict what the future would look like.

6Causal vs EffectualView of future

Future can be reliably predicted Future cannot be reliably predicted because of uncertainty(C) K. Kumar 20157Causal vs EffectualWhere to startWith given goals and readily available meansSubject to resource constraints (WWW)

(C) K. Kumar 20158Causal vs EffectualBasis for taking actionFocus on optimal scenariosDo the doable (and then start pushing it)Seek feedback and learn from mistakes. Iterate. (C) K. Kumar 20159Causal vs EffectualAttitude towards riskExpected returnAffordable loss (where failure is survivable)(C) K. Kumar 201510Causal vs EffectualAttitude towards othersCompetitive or transactionalCo-creational (with customers, suppliers, or competitors)(C) K. Kumar 201511Causal vs EffectualAttitude towards unexpected Avoid surprisesLeverage surprises as sources of new opportunities and innovation(C) K. Kumar 201512Causal vs EffectualUnderlying logicTo the extent we can predict the future we can control itTo the extent we can control the future we need not predict it(C) K. Kumar 201513Managerial Questions for Facing UncertaintyRisky SituationUncertain SituationManagerial Question1. Where to start?Set a goalAssess your meansHave you made an inventory of your means?2. Basis for actionShould Can Have you played around with possibilities?3. Attitude towards risk, return and resourcesCalculate expected returnSet affordable lossHave you come to grips with worst case scenario(C) K. Kumar 2015Managerial Questions for Facing UncertaintyRisky SituationUncertain SituationManagerial Question4. Attitude toward othersPerform competitive analysisForm partnershipsWho can and who wants to help you create the opportunity?5. Attitude toward the unexpectedAvoidsurprisesLeverage surprisesAre you creating corridors for positive surprises?6. Attitude towards futurePredictiveEffectualIs your environment stable enough so that you can rely on past data to formulate future actions? How will you know ? Measure?(C) K. Kumar 2015References(C) K. Kumar 2015ReferencesSarasvathy, S (2009). What makes entrepreneurs entrepreneurial? University of Virginia Note (UVA-ENT-0065)Slides Courtesy- Saras Sarasvathy, Suresh Bhagavatula and B.S. Sachidananda(C) K. Kumar 2015