INTRODUCTION

TO

ENTREPRENEURSHIP

CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS

PASSIONATELY SEEK NEW OPPORTUNITIES

PURSUE OPPORTUNITIES WITH ENORMOUS DISCIPLINE

PURSUE ONLY THE BEST OPPORTUNITIES

ADAPTIVE EXECUTION

SYNERGY IN ENERGY

EntrepreneurEntrepreneur

Entre + PrendreEntre + Prendre

An entrepreneur is a person who habitually creates and innovates to build something of recognized value around perceived opportunities

Entrepreneur Process DiagramEntrepreneur Process Diagram

Motivation to make a difference

Spotting & Exploiting

Opportunities

Finding the required

resources

Using networks

extensively

Overcoming Obstacles

Controlling the

Business

Financial, Social,

Aesthetic Capital

Showing determination in the face of

adversity

Managing Risk

Entrepreneurship ProcessEntrepreneurship Process

The Idea Realizing the opportunity

Engaging the idea &

opportunity

Exploiting the opportunity

to build something of

value

The Inventor

The Opportunity Spotter The Project Champion

Napoleon's First PrincipleNapoleon's First Principle

The first principle of a The first principle of a general-in-chief is to general-in-chief is to calculate what he must calculate what he must do, to see if he has the do, to see if he has the means to surmount the means to surmount the obstacles with which obstacles with which the enemy can oppose the enemy can oppose him and, when he has him and, when he has made his decision, to do made his decision, to do everything to overcome everything to overcome themthem

Intel moved over from Memory Chips to Integrated Chips

Napoleon's Second PrincipleNapoleon's Second Principle

A plan of campaign should A plan of campaign should anticipate everything which anticipate everything which an enemy can do, and an enemy can do, and contain within itself the contain within itself the means of thwarting him. means of thwarting him. Plans of campaign may be Plans of campaign may be infinitely modified infinitely modified according to the according to the circumstances, the genius circumstances, the genius of the commander, the of the commander, the quality of the troops, and quality of the troops, and the topography of the the topography of the theater of wartheater of war

Bill Gates staved off competition from Sun Microsystems, IBM, Netscape, Linux and a host of other competitors

Napoleon's Third PrincipleNapoleon's Third Principle

Read over and over again the Read over and over again the campaigns of Alexander, campaigns of Alexander, Hannibal, Caesar, Gustavus, Hannibal, Caesar, Gustavus, Turenne, Eugene,and Frederic. Turenne, Eugene,and Frederic. Make them your models. This is Make them your models. This is the only way to become a great the only way to become a great general and to master the general and to master the secrets of the art of war. With secrets of the art of war. With your own genius enlightened by your own genius enlightened by this study, you will reject all this study, you will reject all maxims opposed to those of maxims opposed to those of these great commandersthese great commanders

Sam Walton used to regularly visit Kmart, Woolco and other retail chains and learn best practices from them

Napoleon's Fourth PrincipleNapoleon's Fourth Principle

When you have it in When you have it in contemplation to give contemplation to give battle, it is a general rule to battle, it is a general rule to collect all your strength collect all your strength and to leave none and to leave none unemployed. One battalion unemployed. One battalion sometimes decides the issue sometimes decides the issue of the dayof the day

Dhirubhai Ambani concentrated all his resources to beat the bears that tried to pull down the Reliance Stock

Napoleon's Fifth PrincipleNapoleon's Fifth Principle

The first qualification of a The first qualification of a general-in-chief is to general-in-chief is to possess a cool head, so that possess a cool head, so that things may appear to him things may appear to him in their true proportions in their true proportions and as they really areand as they really are . .

IBM Chief Lou Gerstner understood that IBM was losing money in the product business and moved over to services

Napoleon's Sixth PrincipleNapoleon's Sixth Principle

An irresolute general who An irresolute general who acts without principles and acts without principles and without plan, even though without plan, even though he lead an army he lead an army numerically superior to numerically superior to that of the enemy, almost that of the enemy, almost always finds himself always finds himself inferior to the latter on the inferior to the latter on the field of battlefield of battle

In the 60s, Kmart had 700 retail stores when Walmart had 7.Today Kmart has disappeared while Walmart is the market leader.

In the 90s, Daewoo was a fast growing company while Samsung had a shoddy doddy image. Today, Daewoo has gone bankrupt, Samsung is the market leader in consumer durables.

Napoleon's Seventh PrincipleNapoleon's Seventh Principle

The effect of discussions, The effect of discussions, making a show of talent making a show of talent and calling councils of war and calling councils of war will be what the effect of will be what the effect of those things has been in those things has been in every age: they will end in every age: they will end in the adoption of the most the adoption of the most pusillanimous or the pusillanimous or the most prudent measures, most prudent measures, which in war are almost which in war are almost uniformly the worst that uniformly the worst that can be adopted. True can be adopted. True wisdom, so far as a general wisdom, so far as a general is concerned, consists in is concerned, consists in energetic determinationenergetic determination

GE & Coca Cola weathered through all crisis in 100 years because their core competence is strong.

Infosys & Wipro survived the Dotcom Crash because of their strong resolution.

Napoleon's Eighth PrincipleNapoleon's Eighth Principle

It is exceptional and It is exceptional and difficult to find all the difficult to find all the qualities of a great qualities of a great general combined in one general combined in one man. What is most man. What is most desirable and desirable and distinguishes the distinguishes the exceptional man, is the exceptional man, is the balance of intelligence balance of intelligence and ability with and ability with

character or courage.character or courage.

Infosys & Indus League has grown because it has been set up by a team of entrepreneurs.

Napoleon's Ninth PrincipleNapoleon's Ninth Principle

Nothing is more Nothing is more important in war than important in war than unity in command. unity in command. When, therefore, you When, therefore, you are carrying on are carrying on hostilities against a hostilities against a single power only, you single power only, you should have but one should have but one army acting on one line army acting on one line and led by one and led by one commandercommander

Indiainfo could not grow as their promoters could not agree on any issue.

Rediff grew phenomenally under the command of Ajit Balakrishnan

Napoleon's Tenth PrincipleNapoleon's Tenth Principle

The camps of the same The camps of the same army should always be army should always be so placed as to be able so placed as to be able to sustain each other.to sustain each other.

When Tata Motors was in trouble, Tata Finance bailed them out and vice versa.

The problems with tringtring.com lead to the collapse at Aptech

Napoleon's Eleventh PrincipleNapoleon's Eleventh PrincipleIt is not by harangues at the It is not by harangues at the moment of engaging that moment of engaging that soldiers are rendered brave. soldiers are rendered brave. Veterans hardly listen to Veterans hardly listen to them and recruits forget them and recruits forget them at the first discharge of them at the first discharge of a cannon. If speeches and a cannon. If speeches and arguments are at any time arguments are at any time useful, it is during the course useful, it is during the course of the campaign by of the campaign by counteracting false reports counteracting false reports and causes of discontent, and causes of discontent, maintaining a proper spirit in maintaining a proper spirit in the camp, and furnishing the camp, and furnishing subjects of conversation in subjects of conversation in the bivouacs.the bivouacs. NIIT has a portal that allows the

employees to interact with each other and also at the top level

Napoleon's Twelfth PrincipleNapoleon's Twelfth Principle

You should by all means You should by all means encourage the soldiers to encourage the soldiers to continue in the service. continue in the service. This you can easily do by This you can easily do by testifying great esteem for testifying great esteem for old soldiers. The pay old soldiers. The pay should also be increased in should also be increased in proportion to the years of proportion to the years of service. There is great service. There is great injustice in giving no injustice in giving no higher pay to a veteran higher pay to a veteran than to a recruitthan to a recruit GE has grown every year

because they manage to retain the top talent.

Enterprise Creation & Development Enterprise Creation & Development

Challenge of Challenge of EntrepreneurshipEntrepreneurship

CHALLENGE OF CHALLENGE OF ENTREPRENEURSHIPENTREPRENEURSHIP

Entrepreneurship in KBEEntrepreneurship in KBE Who is the Entrepreneur?Who is the Entrepreneur? What is the Entrepreneurial Process?What is the Entrepreneurial Process? Social ResponsibilitiesSocial Responsibilities Why be an Entrepreneur?Why be an Entrepreneur? Entrepreneurial AttributesEntrepreneurial Attributes Why businesses fail?Why businesses fail? Myths of EntrepreneurshipMyths of Entrepreneurship Checklist for Aspiring EntrepreneursChecklist for Aspiring Entrepreneurs

Recommended ReadingRecommended Reading Donald F Kuratko and Richard M Hodgetts, Donald F Kuratko and Richard M Hodgetts,

ENTREPRENEURSHIP – THEORY, PROCESS ENTREPRENEURSHIP – THEORY, PROCESS AND PRACTICE, 6th Edition, 2003, Thomson AND PRACTICE, 6th Edition, 2003, Thomson South-Western, Chapters 1, 2, 3, 4 and 6.South-Western, Chapters 1, 2, 3, 4 and 6.

Jeffry A Timmons and Stephen Spinelli, NEW Jeffry A Timmons and Stephen Spinelli, NEW VENTURE CREATION – ENTREPRENEURSHIP VENTURE CREATION – ENTREPRENEURSHIP FOR THE 21ST CENTURY, 6TH Edition, 2003, FOR THE 21ST CENTURY, 6TH Edition, 2003, McGraw-Hill, Chapters 1, 2, 7, 8 and 10.McGraw-Hill, Chapters 1, 2, 7, 8 and 10.

Megginson, Byrd, Megginson - Small Business Megginson, Byrd, Megginson - Small Business Management, an entrepreneurs guidebook, 5Management, an entrepreneurs guidebook, 5 thth edition, Chapter 1edition, Chapter 1

ENTREPRENEURSHIP : ENTREPRENEURSHIP : AN EVOLVING CONCEPTAN EVOLVING CONCEPT

““Most of what you hear about entrepreneurship Most of what you hear about entrepreneurship is all wrong. It’s not magic; it’s not mysterious; is all wrong. It’s not magic; it’s not mysterious; and it has nothing to do with genes. It’s a and it has nothing to do with genes. It’s a discipline and, like any discipline, it can be discipline and, like any discipline, it can be learned.”learned.”

Peter F. DruckerPeter F. Drucker

Innovation and Innovation and EntrepreneurshipEntrepreneurship

“What does Bill Gates own ? No land, no gold, no oil, no buildings, no machines. What he does is that he controls knowledge, which makes him the wealthiest person in the world.”

Lester Thurow

KNOWLEDGE-BASED ECONOMY

The Entrepreneurial Process involves ____, ________, and _________ an opportunity by overcoming the strong forces that resist the creation of something new.

.

Entrepreneur

Resources

Opportunity

Organisation

1. Identify and evaluate the opportunity

3. Determine andattract resourcesrequired

4. Lead and manage resulting enterprise

2. Develop Business Plan

Entrepreneurial Venture vs Small Entrepreneurial Venture vs Small BusinessBusiness

Entrepreneurial Venture : __________ and Entrepreneurial Venture : __________ and ____________

Small Business : ____________ owned and Small Business : ____________ owned and operated, is not dominant in its field, and operated, is not dominant in its field, and doesn’t engage in new or innovative doesn’t engage in new or innovative practices.practices.

The Pyramid of Social ResponsibilityThe Pyramid of Social ResponsibilityThe Pyramid of Social ResponsibilityThe Pyramid of Social Responsibility

ECONOMIC ResponsibilityBe profitable

The foundation upon which all other levels rest.

LEGAL ObligationsObey the law.

Law is society’s codification of right and wrong.Play by the rules of the game.

ETHICAL ResponsibilityBe ethical.

Obligation to do what is right, just,and fair. Avoid harm.

PHILANTHROPIC Goodwill

Be a good corporate citizen.

Contribute resourcesto the community:

improve qualityof life.

““To be able to contribute to To be able to contribute to society and to help those in need society and to help those in need

to build a better life, that is the to build a better life, that is the ultimate meaning in life. I would ultimate meaning in life. I would

gladly consider this to be my life’s gladly consider this to be my life’s work.”work.”

Dr Li Ka ShingDr Li Ka Shing

Social EntrepreneurSocial Entrepreneur

A pragmatic visionary who achieves large scale, A pragmatic visionary who achieves large scale, systemic and sustainable social change through a systemic and sustainable social change through a new invention, a different approach, a more new invention, a different approach, a more rigorous application of known technologies or rigorous application of known technologies or strategies, or a combination of these. strategies, or a combination of these.

Combines the characteristics represented by Combines the characteristics represented by Richard Branson and Mother Teresa. Richard Branson and Mother Teresa.

For more info : For more info : www.schwabfound.orgwww.schwabfound.org

72%

10% 10% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Independence Satisfaction

Best things aboutowning a business

Control Others

Survey by Padgett Business Services USA Inc. (Adopted from Small Business Management, 5th edn, Megginson, Byrd, Megginson

46%

29%

63%

27%

0%

10%

20%

30%

40%

50%

60%

70%

% of very satisfied

GreatBritain

UnitedStates

Self Employed

Working for Others

Achieve Achieve ________________________

Obtain Additional Obtain Additional ______________

Help Their FamiliesHelp Their Families Provide Products Not Provide Products Not

Available ElsewhereAvailable Elsewhere

ManagersManagers

Managers of large companies tend to seek :Managers of large companies tend to seek : ________________

____________

______________

__________________

“one who shifts economic resources out of an area of lower and into an area of higher productivity and greater yield “

Peter Drucker, guru on management theory

“..human, creative act that builds something of value…pursuit of opportunity…..requires a vision and passion and commitment…..calculated risks…”

Jeffrey Timmons, author of the entrepreneurial mind

Key Elements in Entrepreneur’s BackgroundKey Elements in Entrepreneur’s Background

Bill Gates

Supportive childhood family Supportive childhood family environment.environment.

Having a father who is self-Having a father who is self-employed helps.employed helps.

Education is important.Education is important. Aged 22-45 when starting Aged 22-45 when starting

venture.venture. Work history: dissatisfied Work history: dissatisfied

with company job but has with company job but has technical knowledge.technical knowledge.

Successful EntrepreneursSuccessful Entrepreneurs

While in the Ph.D While in the Ph.D program in computer program in computer science at Stanford science at Stanford University, he met University, he met Sergey Brin and together Sergey Brin and together they developed and ran “ they developed and ran “ ? ”, which began ? ”, which began operating in 1998 and operating in 1998 and currently employing more currently employing more than 1900 employees.than 1900 employees.

•Age : 34, Net Worth : US$90 million.

•Son of Michigan State University computer science professor

•While following in his father's footsteps in academics, he became an honors graduate from the University of Michigan, where he earned a bachelor of science degree in engineering, with a concentration on computer engineering ?

Successful EntrepreneursSuccessful Entrepreneurs

Age : 45, self madeAge : 45, self made

Value of company : S$270 Value of company : S$270 mil.mil.

Adopted at birth by an Adopted at birth by an elderly woman, never elderly woman, never knew her biological knew her biological parentsparents

Hometown : Kampar, a Hometown : Kampar, a poor Malaysian mining poor Malaysian mining towntown

Worked her way through Worked her way through college and graduated college and graduated with a B.Science (Hons) with a B.Science (Hons) from NUS.from NUS.

Started company 15 Started company 15 yrs ago, at age 28, yrs ago, at age 28, with $20,000 savings.with $20,000 savings.

Nominated MP and Nominated MP and Her World Magazine Her World Magazine “Woman of the Year “Woman of the Year 2002”2002”..

?

 

Entrepreneurship – Theory, Process, Practice Chap 4 pg 114-121

Types of Skills Required in EntrepreneurshipTypes of Skills Required in Entrepreneurship

TechnicalTechnical Business Business ManagementManagement

PersonalPersonal

WritingWriting PlanningPlanning Inner ControlInner Control

Oral Oral CommunicationCommunication

LeadershipLeadership Risk TakingRisk Taking

Monitoring theMonitoring the

EnvironmentEnvironmentInterpersonalInterpersonal InnovativeInnovative

Using Using TechnologyTechnology

Marketing Marketing (Selling)(Selling)

Change-orientedChange-oriented

visionaryvisionary

T h e C au ses o f B u sin ess F ailu res A re M any an d C om p lex

T h e C au ses o f B u sin ess F ailu res T h e C au ses o f B u sin ess F ailu res A re M any an d C om p lexA re M any an d C om p lex

E co n o m ic , F in an ce

N eg lect

In exp erien ce

O th er

O th er

Insu ffic ien tC ap ita l

H eavy O pera tin gE xpenses

B u rden som eD ebt

Insu ffic ien tP ro fits

IndustryW eakness

Techniques taught in EntrepreneurshipTechniques taught in Entrepreneurship

Generate Generate opportunitiopportunitieses

Identify your Identify your marketmarket

Raise $$$Raise $$$

Assess Assess opportunitiopportunitieses

Entry Entry strategiesstrategies

Keep Keep business business afloatafloat

Analyse Analyse business business environmenenvironmentt

Reach your Reach your customerscustomers

Put vision Put vision on a Planon a Plan

Exit Exit StrategiesStrategies

Protect your Protect your business business ideasideas

BudgetingBudgeting

MYTHS OF MYTHS OF ENTREPRENEURSHIPENTREPRENEURSHIP

Entrepreneurs are doers, not thinkers

Entrepreneurs are _____, not made

Entrepreneurs are always inventors

Entrepreneurs are academic and social _______“Entrepreneurship, Theory, Process and Practice” Chapter 2

“Entrepreneurship, Theory, Process and Practice, Chapter 2”

MYTHS (continuation)MYTHS (continuation)

Entrepreneurs must fit the “profile”Entrepreneurs must fit the “profile” All you need is ______ to be an entrepreneurAll you need is ______ to be an entrepreneur All you need is _____ to be an entrepreneurAll you need is _____ to be an entrepreneur Ignorance is bliss for an entrepreneurIgnorance is bliss for an entrepreneur Entrepreneurs seek success but experience Entrepreneurs seek success but experience

high failure rateshigh failure rates Entrepreneurs are extreme risk takers Entrepreneurs are extreme risk takers

(gamblers)(gamblers)

Checklist for Aspiring Checklist for Aspiring EntrepreneursEntrepreneurs

Do it for passion not moneyDo it for passion not money Do something you know aboutDo something you know about Don’t give up too earlyDon’t give up too early Have a mentorHave a mentor Have appropriate fundingHave appropriate funding Be a good cash managerBe a good cash manager Build sales firstBuild sales first Don’t try to rushDon’t try to rush Be wary of bad advice or suppliersBe wary of bad advice or suppliers

SummarySummary

Entrepreneurial ProcessEntrepreneurial Process Different Entrepreneurial AttributesDifferent Entrepreneurial Attributes Causes of Business Failures Causes of Business Failures Checklist for EntrepreneursChecklist for Entrepreneurs Video Screening – The Makings of an Video Screening – The Makings of an

EntrepreneurEntrepreneur