Entrepreneurship Management

Entrepreneurship Management - Syllabus

• Entrepreneurship, Meaning, Entrepreneurship awareness, Need

for Entrepreneurship and self employment, qualities to become an
entrepreneur, building your own enterprise, Government and
Entrepreneurship Development Programmes

• Business opportunities, Importance of creativity in

Entrepreneurship, bringing out creative ideas, Managing
resources of enterprise (6 Ms of Management), risk factor in self
employment, preparation of project for small scale unit, starting a
venture

• Legal considerations for opening a new unit, forms of

ownership, sole proprietary, partnership, elements of contract law
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• Planning for small scale business, location of business, financial

management, Human resource management, production
management, marketing management, cost controlling, accounting of
business, developing, expansion and ending the venture

• Quick start methods, a new approach to selling products and

services, franchisees, turnkey or packaged business, buying an
existing business

• Entrepreneurship in Banking and Insurance sectors, opportunities

available after privatisation of these sectors

• Entrepreneurship development Centers, training to entrepreneurs,

training centers in India

• Case studies
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Who is an entrepreneur?

• Entrepreneur is the person responsible for setting up a business or an

enterprise.

• He takes the initiative, is innovative, and looks for high achievements.

• He is a change agent who puts up new projects that create wealth, open
up employment opportunities and leads to the growth of the sector.

• One who creates a new business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying opportunities and
assembling the necessary resources to capitalize on them.
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Definitions
• The entrepreneur is an individual who introduces something new in the
economy- a new production method, a new product, a new source of raw
material, a new market etc.
- Joseph Schumpeter.

• An entrepreneur is the one who always searches for change, responds to it

and exploits it as an opportunity. Innovation is a specific tool by which he
exploits change as an opportunity, for a business or service.
- Peter Drucker

• A true entrepreneur is the one who is endowed with more than average
capacity in the task of organising and coordinating the various other
factors of production.
– Francis Walker
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Characteristics/Attributes of
Entrepreneurs
• Desire for responsibility

• Preference for moderate risk

• Confidence in their ability to succeed

• Desire for immediate feedback

• High level of energy

• Future orientation

• Skilled at organizing

• Value achievement over money

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The ‘Type E’ Personality

Common Traits of Entrepreneurs:

• Aggressively pursues goals; pushes self and others

• Seeks autonomy, independence and freedom from boundaries
• Sends consistent messages; very focused
• Acts quickly, often without deliberating
• Keeps distance and maintains objectivity
• Pursues simple, practical solutions
• Willing to take risks; comfortable with uncertainty
• Exhibits clear opinions and values; has high expectations
• Impatient; “just do it” mentality
• Positive, upbeat, optimistic; communicates confidence
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What is entrepreneurship?

• It is the propensity of mind to take calculated risks with confidence to

achieve a pre determined business or industrial objective

Entrepreneur Entrepreneurship Enterprise

Person Process of action Object

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Entrepreneurship and developing

countries
• The potential of economic development remains dormant because of
undeveloped or underdeveloped human resources.

• In fact, man is much more crucial to development than any other

economic factors. The sufficiency of other resources alone, does not lead
us anywhere.

• Resources to be developed may exist in plenty but if development-linked

human minds are absent, hardly any economic development will take
place.

• While human skills include manufacturing, technical, supervisory,

managerial, administrative and entrepreneurial competence, it is the
entrepreneurial quality, which is a key ingredient.

• It often sets the limit to the degree of industrial development and the
speed with which it can be achieved in a particular country or region.
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Barriers to entrepreneurship

• Lack of a viable concept

• Lack of market knowledge
• Lack of technical skills
• Lack of seed capital/resources
• Lack of business know how
• Lack of sufficient infrastructure
• Complacency
• Restrictive effects of customs and traditions
• Legal constraints
• Monopoly
• Restrictions due to patents
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Intrapreneur
• He is the one who innovates and turns the idea into a profitable reality,
within the framework of an organization

• It is necessary that an organization has a conducive environment to

encourage intrapreneurs

Characteristics of a conducive intrapreneurial environment are:

• Encouragement to innovation and experimentation

• Freely available resources
• Measurable rewards
• Flexibility to alter plans
• Long time horizon to measure success
• Top management support
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Advantages of Entrepreneurship
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To an Individual

• Self Employment

• Employment for near & dear ones

• Prolonged career for next generations

• Freedom to use own ideas - Innovation and creativity

• Unlimited income / higher retained income

• Independence

• Satisfaction
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To the Nation

• Provides larger employment

• Results in wider distribution of wealth

• Mobilizes local resources, skills and savings

• Accelerates the pace of economic development

• Stimulates innovation & efficiency

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Factors favouring Entrepreneurship

• Growth of education- science, technology & management

• Developed infrastructure facilities

• Financial assistance

• Training facilities

• Protective and promotional policies

• Globalization
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Entrepreneurship and Economic

Development
• Entrepreneurs combine resources, put their time and efforts and
produce goods or services

• What they contribute – productivity, output, value addition,

income and employment

• Entrepreneurship is a “Low Cost Strategy”. Entrepreneurs perform

the crucial role themselves

• The spirit of Entrepreneurship – Drive, achieving higher goals,

creativity, innovative attitude.

• A dynamic society emerges and the spirit spreads like a chain

reaction.
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Entrepreneurship and Management

Students
• Enterprises in protected economy can be mismanaged

• Enterprises in competitive environment are essentially to be

managed

• A Management Graduate is a person trained to manage an

enterprise. Naturally, he will deliver the best results

• A Management Graduate should not be just a Job Seeker. He can

and should take the role of Job Provider

• Experience confirms that more Management Graduates take

Entrepreneurial Role (after some experience) and their income is
higher than their colleagues who are in job
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Entrepreneurial Decision Process

• Pull Factors • Push Factors

– Perception of Advantages – Job Dissatisfaction

– Spotting an Opportunity – Relocation

– Government Policies – Lay-off

– Motivation from Biographies – Retirement

or Success Stories
– Boredom
– Influenced by Culture,
Community, Family
Background, Teachers,
Peers, etc.
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Comparison of Traditional Managers,

Entrepreneurs and Intrapreneurs

Traditional Entrepreneurs Intrapreneurs

Managers

Primary Perks and Self- Creative

motives promotion employment, freedom and
satisfaction and recognition
money
Time Short-term – Short-term – Tend to follow
Orientation meeting quotas business the middle path
and budgets; establishment;
weekly, monthly, Long-term –
quarterly and the growth of
annual planning business
horizon
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Traditional Entrepreneurs Intrapreneurs

Managers

Activity Delegates and Direct Direct

supervises involvement involvement ,
not merely
delegation
Risk Careful Moderate risk Moderate risk
taker taker
Monetary Risk Nil High Nil

Status Concerned about Not concerned Not concerned

status about status about traditional
status
Failure and Tries to avoid Deals with Attempts to hide
mistakes mistakes mistakes and risky projects
failures from view until
ready
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Traditional Entrepreneurs Intrapreneurs

Managers

Decisions Like to take their Follows dream Able to get

own but unable to with decisions others to agree
disagree with to help achieve
superiors their dreams

Serves who? Others Self and Self, customers,

customers and sponsors

Family history Family members Entrepreneurial Entrepreneurial

worked for large small-business, small-business,
organizations professional professional

Relationship Hierarchy as basic Transactions and Transactions

with others relationship deal-making as within hierarchy
basic relationship
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Assignment:

Choose an entrepreneur as a case study.

Understand his qualities/characteristics

Factors that introduced him to entrepreneurship-push/pull
Environment conditions (political, social etc)- favourable/unfavourable
Process of starting a business venture; use of innovation and
creativity
Details of the enterprise, product/service provided
Path to success-overcoming failures, problems faced, major
milestones, takeovers, acquisitions
SWOT of the organization/business in general; recommendations if
any