What is entrepreneurship? In political economics, entrepreneurship is the quality of being an entrepreneur, i.e. one who "undertakes an enterprise. The term puts emphasis on the risk and effort taken by individuals who both own and manage a business, and on the innovations resulting from their pursuit of economic success. "Entrepreneurship" in this sense may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as startup company); in recent years, the term has been extended to include social and political forms of entrepreneurial activity".When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations. According to Paul Reynolds, an "entrepreneurship scholar" and creator of the Global Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the United States probably have a period of selfemployment of one or more years; one in four may have engaged in selfemployment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers. And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. "As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983) Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20– 30% and more, as well as extensive involvement in the business.Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as
conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have emerged. Since 2008, an annual "Global Entrepreneurship Week" has been announced, with the aim of "exposing people to the benefits of entrepreneurship" and getting them to "participate in entrepreneurial-related activities".
Definition of entrepreneurship by famous person: Schumpeter According to Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the construction of a drinking straw. For Schumpeter, entrepreneurship resulted in new industries but also in new combinations of currently existing inputs. Schumpeter's initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. In this case the innovation, the car, was transformational but did not require the development of a new technology, merely the application of existing technologies in a novel manner. It did not immediately replace the horsedrawn carriage, but in time, incremental improvements which reduced the cost and improved the technology led to the complete practical replacement of beast drawn vehicles in modern transportation. Despite Schumpeter's early 20th-century contributions, traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks (instead assuming that resources would find each other through a price system). In this treatment the entrepreneur was an implied but unspecified actor, but it is consistent with the concept of the entrepreneur being the agent of x-efficiency.
Different scholars have described entrepreneurs as, among other things, bearing risk. For Schumpeter, the entrepreneur did not bear risk: the capitalist did.
Knight and Drucker For Frank H. Knight(1921) and Peter Drucker (1970) entrepreneurship is about taking risk. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture. Knight classified three types of uncertainty.
Risk, which is measurable statistically (such as the probability of drawing a red color ball from a jar containing 5 red balls and 5 white balls). Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing 5 red balls but with an unknown number of white balls). True Uncertainty or Knightian Uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose number of red balls is unknown as well as the number of other colored balls
Ambassador-at-Large for Global Women's Issues Melanne Verveer greets participants in the African Women's Entrepreneurship Program at the Department of State in Washington, D.C.
The acts of entrepreneurship are often associated with true uncertainty, particularly when it involves bringing something really novel to the world, whose market never exists. However, even if a market already exists, there is no guarantee that a market exists for a particular new player in the cola category. The place of the disharmony-creating and idiosyncratic entrepreneur in traditional economic theory (which describes many efficiency-based ratios assuming uniform outputs) presents theoretic quandaries. William Baumol has added greatly to this area of economic theory and was recently honored for it at the 2006 annual meeting of the American Economic Association.
“Entrepreneurship is defined as the ability of an individual to master the new trending business options which have an outcome ―. This paper deals with the challenges which are faced by Indian Entrepreneurs in starting up financing of new emerging trends. Growing up in terms of business in case of any developing nations is a quite difficult task where they face a financial stop at some point or the other. There are various barriers that are a major cause which stops the growth of the Indian entrepreneurs they are Terrorism, Corruption etc. The Indian entrepreneurs will develop only when there a equal growth throughout without any fall outs.. Due to liberalization, now, the challenge for every Indian entrepreneur is increased and it is the individual thought to how to take advantage of it efficiently. The new technology that has been evolved not only improves the business but also raise the standard of any Indian entrepreneur. The workforce is another thing through which the India had gone through an unexpected change where the involvement of the educated personnel both men and women breaking all the barriers work hard in each of the sector in an organization make a remarkable change. Marketing is another challenge which should be taken care of otherwise the business turn out to be in another way which will give a great fall in the business. Marketing in India is done through various media such as the television, radio etc. Finance is the heart of any business. Managing the financial sector of one‘s business will make it more successful. The entrepreneur should handle the financial criteria in a way that it is balanced with fixed and capital deposits correctly. The Indian Entrepreneurs have a great challenge in the production of a product. They should be very keen in replacing the old machineries by adding new machineries. They should also concentrate on producing a good quality product which is checked up by the quality control management. Distribution is another challenge which every entrepreneur face while growing up. The Stability should be continued in any companies‘ growth and the one of the most important barrier was the cultural attitude that creates a drawback in the growth of young entrepreneurs. The main barrier for the young entrepreneur is that the lack of system that robust. The other barrier is that to find the right funding. Apart from these challenges the entrepreneur also faces a different barrier of an individual‘s personal characters, behaviors. The other challenge is the inability to take risk by the worker or having other personal risks, financial risks of the entrepreneur also will let the fall down of the business. Corruption is one of the reasons for the slow growth in the business. Indian Entrepreneurs have to improve in all the sectors of business using the new trends that will help in maintaining the financial, production, marketing.
The term was first defined by the Irish-French economist Richard Cantillon as the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise. It first appeared in the French Dictionary "Dictionnaire Universel de Commerce" of Jacques des Bruslons published in 1723. Here is a chronological list of definitions:
1734: Richard Cantillon: Entrepreneurs are non-fixed income earners who pay known costs of production but earn uncertain incomes 1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield. 1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services. 1961: David McClelland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker. 1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. 1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies. 1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.
1975: Howard Stevenson: Entrepreneurship is "the pursuit of opportunity without regard to resources currently controlled."
Importance of entrepreneurship
Entrepreneurship is a key driver of our economy. Wealth and a high majority of jobs are created by small businesses started by entrepreneurially minded individuals, many of whom go on to create big businesses. People exposed to entrepreneurship frequently express that they have more opportunity to exercise creative freedoms, higher self esteem, and an overall greater sense of control over their own lives. As a result, many experienced business people political leaders, economists, and educators believe that fostering a robust entrepreneurial culture will maximize individual and collective economic and social success on a local, national, and global scale. It is with this in mind that the National Standards for Entrepreneurship Education were developed: to prepare youth and adults to succeed in an entrepreneurial economy. Entrepreneurship education is a lifelong learning process, starting as early as elementary school and progressing through all levels of education, including adult education. The Standards and their supporting Performance Indicators are a framework for teachers to use in building appropriate objectives, learning activities, and assessments for their target audience. Using this framework, students will have: progressively more challenging educational activities; experiences that will enable them to develop the insight needed to discover and create entrepreneurial opportunities; and the expertise to successfully start and manage their own businesses to take advantage of these opportunities.
Importance and features Entrepreneurship is the tendency of a person to organize the business of his own and to run it profitably, using all the qualities of leadership, decisions making and managerial caliber etc. The term ―entrepreneur‖ is often used interchangeably with ―entrepreneurship‖. But conceptually they are different. In a way, entrepreneur precedes entrepreneurship. It is concerned with the development and co-ordination of entrepreneurial functions. Entrepreneurship is an abstraction and entrepreneurs are tangible persons. Well designed and controlled research studies on entrepreneurship are very few. If we view entrepreneurship as opposed to management, it becomes still more difficult to define entrepreneurship.
Entrepreneurship is a role played by or the task performed by the entrepreneur. The central task of the entrepreneur is to take moderate risk and invest money to earn profits by exploiting an opportunity. For this he must posses farsightedness to perceive an opportunity so that he can exploit it well in time. Although an entrepreneur has to perform diverse functions yet he must manifest many qualities in himself to be a good entrepreneur. Entrepreneurship can be defined as the propensity of mind to take calculated risks with confidence to achieve a pre-determined business or industrial objective. That points out the risk taking ability coupled with decision making. The word 'entrepreneurship' typically means to undertake. It owes its origin to the western societies. But even in the west, it has undergone changes from time to time. In the early 16th century, the term was used to denote army leaders. In the 18lh century, it was used to denote a dealer who buys and cells goods at uncertain prices. Towards 1961, Schumpeter, used the term innovator, for an entrepreneur. Two centuries before, the concept of entrepreneurship was shady. It is only in the recent years that entrepreneurship has been recognized widely all over the world like in USA, Germany, Japan and in the developing countries like ours. Gunnar Myrdal rightly pointed out that Asian societies lack entrepreneurship not because they lack money or raw materials but because of their attitudes. Till recently, in the west, the entrepreneurship is mainly an attribute of an efficient manager. But the success achieved by entrepreneurs in developing countries demolishes the contention that entrepreneur is a rare animal and an elusive character. In India, the definition of 'an entrepreneur being the one who undertakes to organize, own and run a business' has been accepted in a National Seminar on Entrepreneurship organized in Delhi in 1975. Still there has been no consensus on the definition of entrepreneurship and qualities of entrepreneurship. Entrepreneurship being an intangible factor is the moving force and development is the consequence. It has an important role in the context of a developing nation like India which is confronted with major socio-economic problems. Entrepreneurship can play an important role not only in the industrial sector of a country but in the farm and service sectors also. India is being attacked by baffling problems of over population, unemployment, under-employment, poverty and the like. Entrepreneurship is consistently equated with the establishment and management of small business enterprises and setting up these units is the solution to these baffling problems. Concentration of economic power, regional imbalances, exploitation by monopolists, and many other giant problems find their solutions in the development of small scale industry which is another name of entrepreneurship
in the developing countries. Mahatma Gandhi also asserted the same, entrepreneur ship has not grown much in India but it is gaining importance fast. The factors which retard the success of entrepreneurship in India are inadequate infrastructural facilities, shortage of capital, technical knowledge, and transport, absence of cheap and good quality raw material and shortage of power etc. The government has been taking significant steps to encourage entrepreneurship as entrepreneurship is the only solution to various problems of developing countries. Entrepreneurship caught strong waves during the last three decades and became a worldwide movement spreading across countries, regardless of their level of development. Even in Europe and United States, revival of small business has been seen for more than a decade. Constant change and innovations are simply a necessity of entrepreneurship and is becoming essential to survive in a global economy. An American magazine 'The Economist' (1999) recently put it, "Innovation has become the industrial religion of the late 20th Century." It is being increasingly realized that' day's managers and businessmen need not only managerial skills but entrepreneurial skills as well. Entrepreneurship needs to be demystified and transformed into a skill by teaching and practicing. Skill of entrepreneurship knows how to turn an ordinary corporation, managed in a routine manner, into an entrepreneurial organization. People within the organization can be trained to : (i) detect the opportunities (ii) Pursue the opportunities and rewarded (iii) to lesson the consequences of failing.
Features of Entrepreneurship : Entrepreneurship is the tendency of a person to organize the business of his own and to run it profitably, using various traits like leadership, decision making, innovation, managerial caliber etc. Entrepreneurship is a set of activities performed by an entrepreneur In a way, entrepreneur precedes entrepreneurship. The main features of entrepreneurship are as follows : (i) Economic Activity : Although classical economists like Adam Smith and Richard Cantillon and many others didn't recognize entrepreneurship as an economic activity but since last few decades entrepreneurship is catching up and is primarily becoming an economic function because it involves creation and operation of an enterprise.
Schumpeter's argument was that all important changes in the economy are set off by an entrepreneur and then these changes slowly work themselves through economic system, in the form of a business cycle. (ii) Innovative Activity : According to Schumpeter, entrepreneurship is essentially a creative and an innovative activity. There are five ways of being innovative. (a) The introduction of a new good ; (b} The introduction of a new method of production ; (c) Opening of a new market ; (d) The conquest of a new source of supply of raw-material ; (e) The creation of a new organization of an industry. Schumpeter's entrepreneur combines already existing materials and thereby produces something novel and innovative. It is only at that very moment when some one actually puts together such a combination that he is engaged in entrepreneurship. He suggests that it is very useful to study the constitutive parts of entrepreneurship, different motives that drive the entrepreneur and the main types of innovative behavior that entrepreneurship may result in. Entrepreneurs tend to tackle the unknown; they do things in new and different ways' they weave old ideas into new patterns; they offer more solutions than exercises. However, just to be innovative is not enough unless that innovation is carried into production to benefit consumers. (iii) A Function of High Achievement : McClelland identified two features of entrepreneurship, (a) doing things in a different and better way; (b) decision making under uncertainty. People having high need for achievement are more likely to succeed as entrepreneurs. Psychological theories assert that people's capacity for entrepreneurship is decisively influenced by the way they are socialized as children. David McClelland stressed that entrepreneurs are highly motivated by challenging and competitive work situations. (iv) Creative and Purposeful Activity : Entrepreneurship is virtually a creative, and purposeful activity. Entrepreneurship is a creative response to the changing environment. Earning profit may not be the sole objective but introduction of something creative and new is the purpose of entrepreneurship. The benefit of this creativity must be enjoyed by people at large.
(v) Entrepreneurship : An Organizing Function : As J.B. Say says : The entrepreneurs function is to combine the productive factors, to bring them together. According to him, an entrepreneur is one, who combines the land of one, the labour of another, and capital of yet another, and thus, produces a product. By selling the product in the market, he pays interest on capital, rent on land, wages to labourers and what remains is his profit. Thus, J.B. Say clearly distinguishes between the role of a capitalist as a financer and the entrepreneur as an organiser. Marshall also advocated the significance of organisation among the services of special class of business undertakers. (vi) Entrepreneurship : A function of Risk-Bearing : Richard Cantillon, an Irishman living in France, defined entrepreneur who buys factors of production with a view to sell it at uncertain prices in future. Cantillon concerned of an entrepreneur as a bearer of non-insurable risk. Thus, Cantillon introduces elements of direction and speculation into the function of entrepreneurship. Entrepreneurship is a dynamic and multi-dimensional concept. It is both an art as well science. It is more an art than science. In short, Entrepreneurship is what entrepreneurs do
Influences and characteristics of entrepreneurial behavior The entrepreneur is commonly seen as an innovator — a generator of new ideas, and business processes.Management skill and strong team building abilities are often perceived as essential leadership attributes for successful entrepreneurs. Robert B. Reich considers leadership, management ability, and team-building to be essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en Général (1755) and Jean-Baptiste Say in his Treatise on Political Economy. Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. A growing body of work shows that entrepreneurial behavior is dependent on social and economic factors. For example, countries with healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunity-driven rather than necessity-driven women entrepreneurs. Empirical studies suggest that male entrepreneurs possess strong negotiating skills and consensus-forming abilities. Research studies that explore the characteristics and personality traits of, and influences on, the entrepreneur have come to differing conclusions. Most, however, agree on certain consistent entrepreneurial traits and environmental influences. Although certain entrepreneurial traits are required, entrepreneurial behaviours are also dynamic and influenced by environmental factors. In their cornerstone for contemporary entrepreneurship research paper, Shane and Venkataraman (2000) argue that the entrepreneur is solely concerned with opportunity recognition and exploitation, although the opportunity that is recognised depends on the type of entrepreneur; while Ucbasaran et al. (2001) argue there are many different types contingent upon environmental and personal circumstances. Jesper Sørensen has argued that some of the most significant influences on an individual's decision to become an entrepreneur are workplace peers and the social composition of the workplace. In researching the likelihood of becoming an entrepreneur based upon working with former entrepreneurs, Sørensen discovered a correlation between working with former entrepreneurs and how often these individuals become entrepreneurs themselves, compared to those who did not work with entrepreneurs. The social composition of the workplace can influence entrepreneurism in workplace peers by proving a possibility for success, causing a ―He can do it, why can‘t I?‖ attitude. As Sørensen stated, ―When you meet others who have gone out on their own, it doesn‘t seem that crazy.‖
Perception of entrepreneurs The ability of entrepreneurs to innovate is thought to relate to innate traits such as extroversion and a proclivity for risk-taking. According to Schumpeter, the capabilities of innovating, introducing new technologies, increasing efficiency and productivity, or generating new products or services, are characteristic qualities of entrepreneurs. Entrepreneurs are catalysts for economic change, and researchers argue that entrepreneurs are highly creative individuals with a tendency to imagine new solutions by finding opportunities for profit or reward. Largely due to the influence of Schumpeter's heroic conceptions of entrepreneurs, it is widely maintained that entrepreneurs are unusual individuals. In line with this view, there is an emerging research tradition investigating the genetic factors that are perceived to make entrepreneurs so distinctive (Shane and Nicolaou, 2013). However, there are also critical perspectives that attribute these research attitudes to oversimplified methodological and/or philosophical assumptions (Gartner, 2001). For example, it has been argued that entrepreneurs are not that distinctive, but that it is in essence unrealistic preconceptions about "nonentrepreneurs" that maintain laudatory portraits of "entrepreneurs" (Ramoglou, 2013). Theory-based typologies Recent advances indicate that the differences in entrepreneurs and the heterogeneity in their behaviors and actions can be traced back to their founder's identity. For instance, Fauchart and Gruber (2011) have recently utilized social identity theory to illustrate that entrepreneurs can be distinguished in three main types: Darwinians, Communitarians and Missionaries. These types of founders not only diverge in fundamental ways in terms of their self-views and their social motivations in entrepreneurship, but also engage fairly differently in new firm creation.
8 Well Known Entrepreneurs Who Made A Quick Million Dollars By Joel on December 4, 2012
People often say that being an entrepreneur and starting a home business is difficult. That it often takes incredibly hard work, a little start-up capital, long hours, and heroic levels of courage and self-reliance. That may be true for 99% of entrepreneurs, but every once in a while someone completely bucks the trend and achieves success overnight seemingly effortlessly. One thing they do have however, is a very good idea, filling a gap in the market that their customers were crying out for. These people achieved success lightning quick, making a fortune in their first month of trading. Many with a home business, without much start-up capital, or support. Some of them took longer than a month to set-up their business, but from the moment they started trading, or attempted to monetize their business, they made over a million dollars in their first month.
8 well-known entrepreneurs who made a million dollars in their first month of business
Heard of Tumblr? There can‘t be many people left on the planet who hasn‘t. David started Tumblr with his own hard earned savings, without any investment in 2007. It has been a long road to get to this point, but up until now Tumblr has still not been monetized. However, there are a number of well-known brands such as MTV set to sign up for Tumblr advertisements. In real terms though, David Karp made millions instantly, as his net worth was in the millions as soon as Tumblr took off. Not bad for a 26 year old who started a home business from his own means.
While many of the tech entrepreneurs around are theoretical millionaires who have so far just had funding rather than actual revenue, this guy really is the real deal. Ben Lerer founded Thrillist, an amazingly simple concept that sounds like someone really should have thought of it earlier, but the very best ideas
often do share this trait. It‘s simply an online newsletter that allows advertisers to connect to people in a specific city. It has millions of subscribers, and plenty of companies willing to pay to reach them. It initially earned $50k per annum, and took off almost instantly, netting Ben his first million within a month of trading.
Okay, I know, his story has been done to death. There‘s even a Hollywood movie about it. But you cannot make a list about people earning a million fast and not include Mark Zuckerberg. Especially since he‘s now worth tens of billions of dollars, even after the disastrous Facebook IPO. As soon as Facebook started monetizing, mark made a million instantly. As with many tech starts ups of this kind, Mark Zuckerberg was a millionaire the very moment he had a great idea and put it on the web.
Although Victor‘s company had been around for awhile before it developed it‘s first commercial game, as soon as the game launched he became a millionaire. The game in question was Massive Assault for the PC. In 2010 Victor Kislyi launched World of Tanks, which has gone on to be a huge success, making him a multi millionaire. He was so flush with cash, that
he decided to fund a dig to excavate British RAF Spitfires that were buried during WW2.
Matthew Corrin’s story is quite extraordinary, in that the hype he managed to create around his fresh produce was almost too much. When Matthew opened Freshii, a company that sells fresh, healthy fast food, he had queues around the block, and sold out of produce before lunch. Within his first month of opening he was one healthy millionaire.
Ben Kaufman launched Quirky when he was barely in his twenties, he couldn‘t have imagined it would take off so quickly. His idea to get readers to vote on whether or not an upcoming product was a good idea was revolutionary. As with most millionaires of this type, as soon as his website went live he was instantly worth millions.
The second games developer on our list, ‗Markus Persson‗ made the amazingly simple, but fiendishly addictive game Minecraft. Minecraft had a passionate following even before it‘s official launch due to a very popular tech demo. As soon as it did, Marcus became an instant millionaire. He‘s currently estimated to be worth around $15 million dollars. Not bad for a home business run by one man until very recently.
Junaid Shams & Ahmed Khattak
These two are listed together because they shared the same brilliant idea. GSM Nation. With around $150,000 dollars of start-up capital, and some investment from Yale Entrepreneurial Institute, they came up with a way to offer their customers phones without getting locked down into a contract. It made Junaid & Ahmed millions in revenue almost instantly.
5 Qualities of Successful Entrepreneurs
A decade ago, I helped found a business dedicated to helping entrepreneurs bring their business ideas to fruition. I've mentored and coached hundreds of entrepreneurs since. Many of my students have licensed their ideas to powerful companies or brought them to market themselves through venturing. I've often wondered what differentiates successful entrepreneurs from their peers. Are there certain qualities they share? I think so. But I also think it's important to acknowledge that timing, luck and simply being in the right place at the right time play a part in many success stories. Decades of personal experience and mentoring have taught me that successful entrepreneurs share these five qualities: 1. An unwavering passion. The advice to do what you love has become a bit of a cliché. Everyone says, "Find your passion." But that's easier said than done. Being an entrepreneur demands commitment and dedication -- more than most jobs do, I'd argue. If you're ambivalent or mildly enthused about your product or service, that's not going to sustain you through the highs and lows that will inevitably occur. If you find something you love enough to want to share it with others, that love will fuel and give you purpose. 2. Open-mindedness. The most successful entrepreneurs I know never forget how much they can learn from others. They ask for advice. They're flexible. They soak up the best practices around them like a sponge. Fear of failure can make it easy to grip onto your vision with an iron fist, but rigidity won't serve you. 3. The desire to be an expert. Entrepreneurs like a challenge. If they didn't, they'd probably have chosen another line of work. But as exciting as it is to consider a new field, highachieving entrepreneurs know the benefits of staying in the same industry for a while are immense. When you spend years in the same industry, you learn its history. Knowing what's been done before can help you identify how it can and should move forward. In the meantime, you'll build a network of relationships to support you in future endeavors, especially when times are lean. Those relationships are invaluable.
4. A forward-looking approach. Successful entrepreneurs are always thinking ahead. They may stray from their roadmap, and that's okay, but they have one in mind. Having a clearly established set of goals will keep you from getting stuck. Your goals may be constantly evolving, but if you don't know where you want to go, chances are, you won't get anywhere. 5. A constant flow of ideas. Having one project that's doing well is great. But the successful entrepreneurs I know don't rest on their laurels. Instead, they're constantly asking themselves, "What's next?" They understand that being a successful entrepreneur is a lifestyle choice, not a destination. Embrace these qualities and you will become a better entrepreneur. The author is an Entrepreneur contributor. The opinions expressed are those of the writer.
The Habits of Self-Made Billionaires
Self-made billionaires have one business strategy in common: They took enormous risks. There is no careful, cautious path that leads from humble beginnings to Bloomberg's list of the richest people in the world. Of the 100 richest people in the world right now, 27 inherited their fortune, according to an infographic generated by the startup organization Funders and Founders based on data from Bloomberg Billionaires Index. Thirty-six were born to humble households, if they have a family at all, and 18 have no college degree. Eight entrepreneur billionaires fall into both categories: They were neither born into money nor have a college education. Consider Larry Ellison, the founder of software giant Oracle. He was an orphan, and recently Ellison had estimated net worth valued at $37 billion. And Amancio Ortega, founder of fashion retailer Zara, was the child of a railroad worker and recently he had estimated net worth of $52 billion. What can be learned from such extraordinary journeys? As the infographic (below) shows, these eight entrepreneurs have some similar business strategies. Five of this elite group invested during hard times, four bought companies that were all but ruined at the time of purchase, three had one lucky deal that changed the course of their life, seven were early adopters of trends that had yet to be recognized, and for half of these self-made billionaires, their successful venture was not their first business. Three of these self-made billionaires make a point to eat lunch with their employees.
Larry Ellison, the founder of software giant Oracle and Amancio Ortega, founder of fashion retailer Zara. image credit: NDTV Gadgets | Excite Eight entrepreneur billionaires fall into both categories: They were neither born into money nor have a college education. Consider Larry Ellison, the founder of software giant Oracle. He was an orphan, and recently Ellison had estimated net worth valued at $37 billion. And Amancio Ortega, founder of fashion retailer Zara, was the child of a railroad worker and recently he had estimated net worth of $52 billion. What can be learned from such extraordinary journeys? As the infographic (below) shows, these eight entrepreneurs have some similar business strategies. Five of this elite group invested during hard times, four bought companies that were all but ruined at the time of purchase, three had one lucky deal that changed the course of their life, seven were early adopters of trends that had yet to be recognized, and for half of these self-made billionaires, their successful venture was not their first business. Three of these self-made billionaires make a point to eat lunch with their employees. Related: Behind a Brand Extension: How a Sweatshirt Raised Over $1 Million on Kickstarter Note: Roman Abramovich, the Russian entrepreneur at the helm of the privateinvestment company Millhouse was nearly No. 9 on this list, but he earned a correspondence degree in law. Of these eight underdog billionaires, who do you consider the most inspiring and why? Leave a note below and let us know.
What Craft Beer Can Teach You About Business Growth: Best Advice from Jim Koch of Sam Adams
Boston Beer Founder Jim Koch sits down with food, beverage and hospitality entrepreneurs and gives them advice on how to grow their business.
The Boston-based entrepreneur who created the Sam Adams Lager has long been a master of beer, and he has become an expert in how to grow a business. He has transformed a kitchen-table venture into a 950-employee company which had total revenues of almost $630 million in 2012.
Koch with some of his first cases of Sam Adams beer. Image credit: The Boston Beer Co. In the very early days, Koch was continually turned down by traditional banks when he applied for loans and he struggled to get a distributor interested in his craft brew. To support young entrepreneurs, The Boston Beer Co. launched a program providing microloans and counseling to small food, beverage and hospitality companies considered unbankable by traditional lenders.
The program, Samuel Adams Brewing the American Dream, is expanding this year. This week, Boston Beer announced that it is committed to providing an additional $1 million in microloans to 100 new small-businesses, on top of the $2 million that it has already lent out since the program's inception in 2008. Also this year, the program will solicit donations from draft beer sales at participating bars and will increase its skills coaching for entrepreneurs looking to pitch their food or beverage to large retailers and restaurants. As part of the initiative, Boston Beer hosts speed coaching sessions across the U.S. where approximately 50 entrepreneurs meet at local community centers or restaurants to get advice and support for pain points in their business growth. Specialists from within Boston Beer and expert volunteers meet with smallbusiness owners 20 minutes at a time to talk through problems and solutions. Koch is on hand at the speed coaching sessions, and his area of expertise is growth management. After 29 years at the helm of the brewhouse, Koch has learned a few lessons of how to grow a business sustainably. Here are the three pieces of advice he gives out the most frequently to entrepreneurs. 1. Never forget the product. The larger and more profitable your business becomes, the more focused you should become on the ingredients in and production of your product. "As you grow, you should get better," says Koch. Even as Sam Adams grew into the largest-selling craft brew in the U.S., its primary focus has always been the quality of the beer it brews. Cash-strapped startups may not be able to afford the highest quality ingredients or the best equipment right off the bat, but as you begin to make money, reinvest in your process, he says. "Don't take your eye off the product," says Koch. 2. Hire slowly and cautiously. Fire quickly. Especially in the earliest days of your company, don't bring on a new employee from a place of desperation because you feel overwhelmed and need more hands. "If you are three people and you go to four, that changes the character of your company," Koch says. If a new employee is not working out for your company culture, let them go quickly. The smaller a team is, the less it can afford to carry unproductive employees, he says. To find the right candidate, interviewing employees is not enough. Look beyond a resume. "When we started at Sam Adams, we almost never hired people from the beer business because they have too many bad habits," Koch says. Instead, he was looking for individuals with the behaviors, talents and motivations that would make them trainable.
Koch recommends offering to pay a potential new hire to work alongside you for a day to help you evaluate the candidate's personality and skills. "What we have learned is that if people truly enjoy doing the things that they will need to do well to be successful in a job, they will succeed. If they enjoy those things. If they don't, it is not going to have a good outcome," he says. 3. You are the best salesperson for your business. "Nobody loves your product better than you do. Nobody is more passionate about it. You are going to be -- like it or not -- you are going to be the best salesperson for the product," says Koch. Almost three decades ago, when Koch was getting Sam Adams off the ground, he went from bar to bar with cold beer in his briefcase selling his brew to bartenders. "I had never sold anything in my life, I was scared to death." Koch didn't know how to sell effectively, and he was turned off by the typical salesman role models he knew of, namely used-car salesmen or Willy Loman, the main character of Arthur Miller's "tragedy of the common man," Death of a Salesman. Over time, Koch learned that selling is really about figuring out how your product can solve a customer's problems. With Sam Adams, Koch pitched Bostonian bartenders by telling them that they could sell Sam Adams for 50 cents more than a regular beer but it only cost them 40 cents more to buy. Also, a craft brew on the menu makes a restaurant or bar an attraction for consumers, he told bartenders. "Once you get to the winwin, selling is easy," Koch says.
10 Things Jon Taffer of 'Bar Rescue' Wants You to Know About Running a Business
Who knew that so many business lessons could be learned from running a bar? Award-winning hospitality expert Jon Taffer knew it early on in his career. After revealing his business revamp process on Spike TV's Bar Rescue, the nightlife consultant is divulging his brick-and-mortar business secrets in a new book, Raise the Bar: An Action-Based Method for Maximum Customer Reactions (New Harvest, 2013), out October 8. Though the book is a thorough manual to opening and operating a bar or restaurant, Taffer's business insights don't solely apply to Irish pubs and neighborhood nightlife. "When my company does a good job, we make people happy," says Taffer of best business practices. "They laugh, they smile, they have a good time -- that's what we do for a living. Any business doing that is making a noble effort."
Whether you're starting up a storefront, a social media marketing agency or a software company, here are 10 business lessons from Taffer's upcoming book that you can try:
1. Selling begins once customers "enter" your store. Regardless of whether your selling space is online or offline, customers will only return after a pleasant experience. Every business process of communication must create a positive customer reaction every time, writes Taffer. "That reaction is the product. Any business, no matter what it is, lives or dies by the customer reaction it creates." Don't just create great products, but also present them well – onscreen, in-store, at events, etc. – to beat competitors who sell identical products. 2. Consider the lifetime value of your business. With every bar Taffer revamps on Bar Rescue, he isn't hoping to create a once-in-a-lifetime experience. Rather, he's hoping to create brand loyalty. Taffer explains that the first time customers visit a new eatery, fewer than 50 percent return, because it's still outside their habit cycle. Yet, if they do come back, there is a 50 percent chance they'll return after a second visit and a 70 percent chance after a third. Therefore, don't focus on just giving a great first impression, but also a great third impression. "This is why transactions have to be held to a high standard and remain consistent and, to a great extent, predictable," says Taffer. 3. Find what stimulates your profits. Since everyone is in the business of reactions, Taffer teaches how to manipulate those reactions for your benefit. "Most people fall into one of four personality or motivational buckets: money, pride, ego and fear," he explains. Craft your marketing language to play off of one of these motivators. For example, if your product is a type of insurance policy, outline how your safety net pacifies a fear. If you're selling a new type of personal indulgence, be sure to highlight how good it makes people feel. 4. Treat difficult clients like family. Every entrepreneur entertains those needy, hard-to-please customers, but try to cultivate a new patience by acting as you would with a difficult relative. Taffer attributes all of his success in customer reactions to his late mother, who required everything to be a certain way. "My relationship with her demanded that I learn how to understand, predict and react to her shifting energy and moods accurately in order to get results that were the best for both of us."
Just as you wouldn't lash out at your grandmother during dinnertime, hold your tongue around tough clients to deal with them more effectively. 5. Hire for attitude, not experience. Resumés and LinkedIn profiles may read well, but a candidate with the right attitude will boost your company higher than an experienced misfit. Taffer notes that the key to recruiting is identifying the ideal personality for the job (extroverted, supportive, resourceful), and then creating a descriptive job posting that captures it. "Someone who feels he fits the description will be eager to respond to a job if it ‗sounds like me,'" says Taffer. "Don't understate your case in an ad. Be assertive." 6. Don't coddle your weakest employees. Taffer notes that a common denominator in bad business is that managers view their employees as family, coddling the weakest ones and hoping they one day do better. This is a mistake, he says. Taffer explains that businesses should be run more like sports teams, where winning players are encouraged and weaker players find themselves facing pressure to improve. "Teams work together on clear objectives that force individual members to perform or leave. If a batter strikes out all the time, his team will use various forms of coercion to make him try harder and do better," writes Taffer. "The coach can't afford to keep them around -- the weakest players must be eliminated." 7. Teach -- don't train -- your team. "Training is behavior modification; it takes too long," writes Taffer. "Teaching is showing someone how to carry out specific tasks and then encouraging them to add their personalities in to make their role come alive." This small change in management perspective will not only help entrepreneurs loosen their need to control every aspect of a business, but will also result in a happier workforce. "You might even learn something from your employees when you let them be themselves and contribute ideas," Taffer writes. 8. Trim down your "menu" to ease choice. Ever feel overwhelmed when you walk into a bar with a countless amount of drinks on the menu? The same concept applies to any business --don't overwhelm your customers with options. Taffer advises businesses to simplify the selection, present variations of the same product rather than listing them separately (i.e. – have one entry for chicken wings and show they're available in three flavors rather than three different menu listings of chicken wings), bundle offerings into packages and rotate in new products like limited-edition specials.
Doing so also gives clients incentive to return for promotions, special events or simply to see what's new. 9. Always keep your target demographic in mind. Entrepreneurs should always conduct research on their target audience before opening a business and continue those considerations as their business grows. "More upscale bar customers will not react well to a card or a coupon, but they will react positively to a mailing that looks like a more formal and exclusive invitation -- it's simply a matter of design and delivery," writes Taffer. "The offer and the premise are the same." From daily Tweets and viral Vines to occasional eNewsletters and annual holiday greetings, maintain a tone that appeals to your target customer and preserves your brand. 10. Innovate realistically to serve your audience. Every business wants to be the next Apple or Google, but don't try while losing all your clients. "I do not favor innovation over listening to customers -- I favor innovation while listening," writes Taffer. "It's not that I'm against new ideas, but as a businessman, I need it to protect and maximize investments." Be careful of quirky, weird ideas that isolate part of your client base. Don't get pressured by others in the startup world to deviate too far from the comfort zone that make you successful in the first place. "An innovation that steps far outside of most people's envelope of expectation can reduce or narrow your market when your aim should be to constantly expand your market," Taffer says.
5 Cool American-Made Products
After the deadly collapse of a garment factory building in Bangladesh, more people are asking questions about overseas-made products, including apparel often linked to sweatshops and unsafe working conditions. Despite the growing appetite for domestically-made goods, finding "Made in USA" products can take some effort. Sarah Wagner is passionate about American-made products, and she turned her interest into a successful website, USA Love List. Launched in November 2011, the site is devoted to sourcing and showcasing where to buy domestically-made items, ranging from pet products to apparel. She regularly scans the aisles of big retailers, such as Costco and Target for American-made goods. "I do think people are highly motivated by concerns of product safety and contamination," Wagner said. While it's unrealistic to live only on "Made in USA" goods, a bit of effort can yield a variety of domestically-made choices. "There's clearly a hunger for this sort of information," said Wagner, based in Philadelphia. "Companies have no idea how much Americans want to support American businesses manufacturing at home," she said. See a list of 10 nifty products -- from dog food to dinnerware -- curated by Wagner and the USA Love List team. And of course, all the goods are American-made.
1. Antho, Los Angeles, Calif.
image credit: Antho These organic, vegan, and eco-friendly products for body and home--everything from deodorant to laundry soap--don't just look and smell beautiful. They're a go-to choice for beautiful, thoughtful gifts large and small.
2. Badger, Gilsum, N.H.
image credit: Badger Badger makes a full range of sunscreens for sports, water, babies, family, and even an anti-bug product. Each one offers broad spectrum UV protection, is chemical-free, made of all natural and organic ingredients. The products also smell great.
3. Beardition, Nashville, Tenn.
image credit: Beardition USA Love List 's beauty editor Angie Barnes likesBeardition and she doesn't even have a beard. The company is dedicated to natural men's grooming basics that work well and smells good. Products (made from "cool people in Nashville") range from beard shampoo and conditioner to beard oil. Too metrosexual?
4. Cloud Star, San Luis Obispo, Calif.
image credit: Cloud Star Many pet products are made domestically with lots of choices for pet owners. And Cloud Star features pet treats and grooming products, all made from domestically sourced ingredients. Products include grain-free baked biscuits and a natural dog wash shampoo. Ruff!
5. Fiesta, Newell, W. Va.
image credit: Fiesta The Homer Laughlin China Company still makes its popular Fiesta dinnerware in the same West Virginia factory, where the line started nearly 75 years ago. This colorful, art-deco line of tableware is among the most collected in America and comes with a five-year warranty against chipping. Fiesta collectors have warm stories and memories of this durable dinnerware that's both current and nostalgic.
How an entrepreneur can Use Customer Recommendations to Grow Your Business
At a time when one-click LinkedIn endorsements are stacking up faster than rush-hour traffic, obtaining sincerely worded recommendations is a lot like pulling into the carpool lane. You have to invest upfront in planning, personal contact and collaboration, but the effort is rewarded by access to a less-crowded environment and a quicker route to building credibility and trust. Sit back and collect endorsements LinkedIn endorsements verify what you do (though most of us on LinkedIn have been endorsed for some skill we don't possess), while recommendations detail how you do what you do and the unique value you deliver. LinkedIn endorsements are what social networkers call "lite" recommendations and what Forbes writer Eve Mayer likens to a "Stove Top stuffing version," with less "meatiness than Grandma's homemade stuffing." Endorsements are easy to give and even easier to get. With no input beyond LinkedIn-provided prompts, your LinkedIn contacts simply click endorsement buttons -- at a reported rate of 10 million times daily. And while the endorsements, in the words of detractors, may serve as little more than "eye candy," they require no energy on your part, leaving you free to steer your efforts toward developing thoughtfully worded recommendations instead. Reach out and ask for recommendations Rather than waiting and wishing for customers or associates to put compliments into words, get proactive with your requests. Communication pro and serial entrepreneur Peter Levitan accompanied an email announcing his newest venture with this request: "I'm launching an advertising agency consultation business in February. I'd like to include a few very brief kudos/recommendations from some of my most trusted and super-smart buddies -- people like you. You know: Peter is a really smart guy; really knows the business; knows how to run business development; boy is he going to set you up
for success. ... Would you write one for me? As help, here are a couple of recommendations from LinkedIn. Let me know if you have questions. Thanks ahead. Oh, the deadline … next week." And guess what? People responded, both to help an associate and to enhance their own visibility. Follow Levitan's example by keeping this advice in mind:
Tell the reason you're asking for recommendations and the type of recommendations you're hoping to receive. This puts your request in context and prompts greater response. Explain why you're reaching out to the request recipient. This allows you to share a compliment and conveys that your request is one of a select few and not a mass mailing. Share helpful information. This saves the recipient time and increases your odds of receiving the kind of recommendation you're hoping for. Give your response urgency by stating a reasonable deadline.
Anatomy of a good recommendation The point of endorsements, testimonials, reviews and recommendations is to provide those with little or no awareness of you, your business or your reputation with assurances from those who have high regard for you and your offerings. Obviously, if the words spoken on your behalf sound like they came right out of your marketing department, they miss the mark. Instead, showcase only those recommendations that meet these standards: Genuine opinions: People respond to recommendations that are frank and unscripted. Conversational: Sentences don't have to be editorially perfect. Instead, they need to sound as if a real person actually shared the words. Focused and specific: The best recommendations feature a specific aspect worthy of recognition rather than a general shout-out for overall excellence. For example: "When I said I was in a rush they didn't offer same-day service, they asked if I could give them 45 minutes. Amazing!" Identifiable: People believe people who are willing to put their names behind their words, so request permission to identify recommendations by name. Spread good words spoken on your behalf Once people put their compliments in writing, spread the praise far and wide. Use recommendations in full or in accurately excerpted versions on your website, in social media, and in sales materials, letters and presentations. There's an old line that "it's never crowded on the extra mile" (or in the carpool lane) because most people don't invest the time and energy required to gain an advantageous position. Waiting for one-click endorsements won't give you
access to the brand-building fast lane. Asking for and leveraging helpful recommendations will.
An Entrepreneur can use 4 Ways to Turn Social-Media Fans Into Raving, Loyal Customers
It's nice when companies see fans and customers responding positively to their products and messaging over social media. But figuring out how to convert all that positive energy into an effective sales and marketing strategy can be tough to figure out. With just a little bit of focus and strategizing, businesses of any size can turn one-time customers or casual fans into influential advocates and repeat customers, says Danny Maloney, co-founder and chief executive of Tailwind, a social-media marketing intelligence firm company that builds tools to harness the power of social data. Here, Maloney offers four ways companies can better leverage their socialmedia presence into an effective marketing tool: 1. Use a targeted approach. Fostering wide scale awareness on social media in the same manner as huge brands isn't economically feasible for small- to medium-sized companies. Instead, Maloney says companies with more modest budgets should spend their time and resources on the customers they're most likely to convert. "With the right tools you can monitor keywords and phrases related to your business" and respond to what customers, fans and even detractors are saying in real time, Maloney says. Mention, for example, is a simple program that lets users track mentions of their brands across Facebook, Twitter, RSS and the web at large. Tagboard is a similar program used to monitor hashtags on Twitter, Facebook, Instagram,
Vine and Google+. Based on the query, the software puts together a curated display of content from various social platforms. 2. Let your fans know you're listening. Unlike other mediums -- like print and broadcast -- social media isn't a one-way channel, it's a conversation and brands have an obligation to be responsive. "Brand advocates want to know that you're there and that they're heard," Maloney says. "If they took the time to share a blog post you wrote or to give you a positive review, be listening for it and thank them." Some companies take it a step further by using their strongest brand advocates as a source of ongoing marketing content by asking fans to write testimonials or guest blog posts. "[Customers think] 'this company actually cares, they're listening, I'm going to go tell more people about them,'" Maloney says. 3. Target your special offers. The customers who already sing your praises on Twitter and Facebook sometimes need a just little nudge to keep them coming back. So as you thank them, consider offering them an incentive, such as a discount, to visit your business one more time. It lets customers know you're listening and that they're valued, turning them into an even stronger advocate and a repeat customer. 4. Curate compelling content. One way brands can develop meaningful relationships with their fans and customers on social media is by finding and sharing interesting content around a specific set of topics. Larger brands are expected to publish content on par with quality magazines, but Maloney says companies of any size can develop an effective content-marketing strategy. "You have to build relationships with people, engaging them based on an interest and not just going into a sale right away," Maloney says. "If you're a consumer-facing company, it's more important to share something that's interesting and sharable so your audience will propagate the message." Maloney says it's also important to tailor content for various social networks -- a 140-character tweet won't work so well on image-based Pinterest, for instance -and to speak to fans in that network's language. This can have your fans returning to your social-media channels again and again not only for the content you share but your marketing messages and special offers, too
5 Easy Ways to Connect With Online Influencers
Having even just one relationship with an online influencer can have a significant impact on your business. Online influencers are people who have a dynamic personality that comes across online and they command the respect of other key players in their niche. Relationships with influencers are sought after by business owners because these people help shape consumer decision making by popularizing products and ideas, and promoting things across multiple channels. The good news is that many top influencers also happen to be fairly accessible, even when you think it's impossible to connect with them. Here are five relatively easy ways to connect with powerful influencers who can hopefully help your business get to the next level: 1. Use LinkedIn and Twitter to establish contact. Using social media can often be the fastest and easiest way to connect with online influencers because they are already established platforms for connecting with like-minded individuals. LinkedIn can be a useful place to start as it is the largest online network of professionals. Twitter can be especially useful because the "verified" status feature lets others know that an influencer -- typically celebrities or top industry performers -does indeed have a real following. You can use sites like Twello and Klout to identify the reach and following of users. You can try tweeting your target an invitation to connect. Or you could try quoting the person in a blog post of your own, and tweet at them to let them know that you've quoted them in your article. A little ego stroking can go a long way.
2. Don't just say 'hi.' Offer to interview the person. Over social media, don't just reach out and introduce yourself. Go a step further by offering to interview the person -- either over email or treat him or her to a dinner. This can be framed as an interview that you want to post on your blog or simply an opportunity for you to pick the person's brain. Successful people often enjoy telling their story. The benefit to you? You'll most likely take away at least one tip for success in your chosen field and have the opportunity to explain what it is you do. And there are multiple benefits for the influencer by way of additional exposure and potential access to new business partners. 3. Be engaged and engaging. One effective way to get your name and brand in front of influencers is to blog for other sites. You can find relevant blogs to your industry on sites like Technorati. Instead of going straight for the top blogs in your field, consider reaching out to some smaller blogs first. When you have some pieces published on the smaller blogs you can then take those to the larger sites as examples of your work. When you are seen as someone who actively communicates with new connections it can make other online users want to connect with you. By starting small, you can connect key influencers in your field, because creating content consistently and being involved in forums in your field can alert other influencers that you are committed to your ideas and products. 4. Get connected through someone you know. Whether online or off, when you get introduced to someone new by a mutual friend you are coming with a built-in background check. You will want to make sure that the person you want to meet knows why he or she is meeting you. Make sure your current contact is clear with his or her description of you and what you do. Follow up after you get introduced to thank the person for his or her time. Another way to make yourself memorable is to send a gift -- something thoughtful that was clearly chosen with the recipient in mind. 5. Figure out what you can offer and then offer to do it for free. When you connect with an online influencer, you will need to know what value it is that you are bringing. This could be something as simple as your time, your graphic design skills or your talent for short sales. You should offer to donate your time and skills for free. When you offer enough value and deliver a good product to an influential person you create an opportunity for that person to recommend you to his or her network.
Implement the strategies above to connect with influencers and you should see the number of successful people in your network grow. With so many available resources to you on the internet and otherwise, you may as well use them for something useful -- your own success.
How to Research a Business Opportunity
Protect yourself by learning what a business opportunity really is, how the government regulates them, and the steps you should take to ensure you've found the best opportunity available. Just what is a business opportunity? That question has plagued a great many people trying to decide whether to buy a current independent business, a franchise, or what we'll refer to in this text as a business opportunity. To allay the confusion, we offer a simple analogy. Think back to elementary school when your teacher was explaining the difference between a rectangle and a square. A square is also a rectangle, but a rectangle isn't necessarily a square. The same relationship exists between business opportunities, independent businesses for sale and franchises. All franchises and independent businesses for sale are business opportunities, but not all business opportunities meet the requirement of being a franchise nor are they in the strictest sense of the word independent businesses for sale. Making matters even more confusing is the fact that 26 states have passed laws defining business opportunities and regulating their sales. Often these statutes are drafted so comprehensively that they include franchises as well. Not every state with a business opportunity law defines the term in the same manner. However, most of them use the following general criteria to define one: 1. A business opportunity involves the sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business. 2. The licensor or seller of a business opportunity declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee. 3. The licensor-seller guarantees an income greater than or equal to the price the licensee-buyer pays for the product when it's resold and that there is a market present for the product or service. 4. The initial fee paid to the seller in order to start the business opportunity must range between $400 and $1,000.
5. The licensor-seller promises to buy back any product purchased by the licensee-buyer in the event it cannot be sold to the prospective customers of the business. 6. Any products or services developed by the seller-licensor will be purchased by the licensee-buyer. 7. The licensor-seller of the business opportunity will supply a sales or marketing program for the licensee-buyer that many times will include the use of a trade name or trademark. The laws covering business opportunity ventures usually exclude the sale of an independent business by its owner. Rather, they are meant to cover the multiple sales of distributorships or businesses that do not meet the requirements of a franchise under the Federal Trade Commission (FTC) rule passed in 1979. This act defines business offerings in three formats: package franchises, product franchises and business opportunity ventures. In order to be a business opportunity venture under the FTC rule, four elements must be present: 1. The individual who buys a business opportunity, often referred to as a licensee or franchisee, must distribute or sell goods or services supplied by the licenser or franchisor. 2. The licensor or franchisor must help secure a retail outlet or accounts for the goods and services the licensee is distributing or selling. 3. There must be a cash transaction between the two parties of at least $500 prior to or within six months after the licensee or franchisee starts the business venture. 4. All terms and conditions of the relationship between the licensor and the licensee must be stated in writing. You can readily see that the sale of business opportunities as defined by the FTC rule is quite different from the sale of an independent business. When you're dealing with the sale of an independent business, the buyer has no obligations to the seller. Once the sales transaction is completed, the buyer can subscribe to any business operations system he or she prefers. There is no continued relationship required by the seller. Business opportunity ventures, like franchises, are businesses in which the seller makes a commitment of continuing involvement with the buyer.
2013 Fastest-Growing Franchises
These companies have shown rapid unit expansion over the last two years
If you're one of those who likes things to move fast, who wants a new challenge all of the time, then maybe a fast-growing franchise is for you. Our FastestGrowing Franchises ranking is based on the number of new franchise units added in the U.S. and Canada from July 2011 to July 2012, as verified by Entrepreneur's Franchise 500®. About the Fastest-Growing Franchises
PAST RANKINGS | Top 10 Fastest-Growing Franchises for 2013 RANK FRANCHISE NAME STARTUP COSTS
$85.69K - 262.85K
2 Jan-Pro Franchising Int'l. Inc.
$3.15K - 50.9K Request Info
$30.79K - 1.63M
Vanguard Cleaning Systems
$9.85K - 35.83K
5 Liberty Tax Service
$56.79K - 69.9K Request Info
$4.63K - 348.11K
$4.28K - 76.5K
Jimmy John's Gourmet Sandwich Shops
$300.5K - 489.5K
$294K - 1.51M
Anago Cleaning Systems
$11.18K - 66.84K
Entrepreneur as innovator
Joseph Schumpeter (1883-1950), Austrian-born professor, is famous for focusing on the entrepreneur as the central figure in advancing the wealth of nations and creating dynamic disequilibrium in the global economy. In the process of ―creative destruction‖ (of the market system), entrepreneurs plays a central role by constantly assimilating knowledge not yet in current use and setting up new production forms and functions to produce and market new products. He pointed out that knowledge underlying the innovation need not be newly discovered and may be existing knowledge that has never been utilized in production. Therefore, the entrepreneur need not be an inventor and vice versa. He is the one who turns an invention into commercial exploitation. For Schumpeter, successful innovation requires an act of will, not of intellect. It therefore depends on economic leadership and not mere intelligence. He felt that such a hazardous activity would not be undertaken by ordinary economic agents but only by entrepreneurs with the vision, drive and commitment to survive the uncertainty and turbulence involved. When he succeeds, the entrepreneur will realize exceptional (be it temporary monopoly) profits and he may be able to fundamentally change existing or introduce new market and industry structures. Therefore, Schumpeter‘s theory of ―creative destruction‖ has sometimes also been known as ―heroic entrepreneurship‖. While Schumpeter emphasizes technological innovation and improvement, Ludwig von Mises (1881-1973) declared that changes in consumer demand may require adjustments, which have no reference at all to technological innovations and improvements. He thought that the business of the entrepreneur is not merely to experiment with new technological methods, but to select those, which are best, fit to supply the public in the cheapest way with the things they are asking for most urgently. Whether a new technological procedure is or is not fit for this purpose is provisionally decided by the entrepreneur and finally decided by the conduct of the buying public. For Mises, the activities of the entrepreneur consist in making decisions and while decisions regarding innovation and technological improvement come under his purview, such decisions alone do not constitute an exhaustive set. This echoed the viewpoint of American economist, F.W.Taussig (1859-1940) that although innovation is one of the activities performed by the entrepreneur, it is not the only one, and perhaps not even the most important one. Peter Drucker (1909-2005) notes that entrepreneurship can be defined as changing the yield of resources (seen in supply or production terms) or as changing the value and satisfaction obtained from resources by the consumer (defined in demand terms) and innovation to be the specific instrument of entrepreneurship. Like Taussig and Mises, Drucker asserts that innovation does
not have to be technical and are often social as well. He argued that management (as ‗a useful knowledge‘) is an innovation of the 20th century as it has made possible the emergence of the entrepreneurial economy in America and converted modern society into something brand new: a society of organizations. He therefore prescribed a systematic form of entrepreneurship management, based on systematic innovation: ―Systematic innovation consists in the purposeful and organized search for changes and in the systematic analysis of the opportunities such changes might offer for economic or social innovations‖.
Few Entrepreneurs Are Both Inventors And Innovators -- Which Are You?
Philo Farnsworth created a technology which underlies one of the 20th Century‘s most ubiquitous products, yet he died a man of modest means and is relatively unknown today. Philo was an inventor, not an innovator. He was primarily motivated by the educational potential of his invention, not the wealth it might generate. He freely shared his ideas and technology with others in the hopes that such openness would advance his scientific field of study. Philo‘s fellow researchers were not the only people who benefitted from his discoveries. Numerous innovators capitalized upon them as well, creating dozens of multi-billion-dollar enterprises. Inventor And Innovator Characteristics Some first-time entrepreneurs mistakenly believe that they are not entrepreneurs because they have never invented anything nor have they come up with a novel idea upon which a company could be built. None of the ventures I have been involved with were founded on my ideas, nor have I everinvented anything. However, I am no less of an entrepreneur. Only a small percentage of innovators are also inventors. If necessity is the mother of invention, obsession is the father of innovation. Innovators iterate and combine preexisting ideas until they incrementally modify an invention such that it embodies a marketable value proposition upon which a sustainable company can be created.
If you are solely an inventor, your startup options include: (i) sell the intellectual property underlying your inventions before they are commercialized, which will net you nominal value, (ii) partner with someone who has innovator skills, or (iii) risk losing it all by attempting to play the roles of both inventor and innovator. Few people are successful at both roles because each requires the distinct skills, aptitudes and proclivities noted above. There are notable exceptions – people who are simultaneously successful inventors and innovators. Their rarity is the reason school-age children can name many of them: Thomas Edison, the Wright Brothers, George Eastman, Samuel Colt and Alexander Graham Bell. As such, the option with the highest probability of success is to create a balanced team, comprised of both inventors and innovators. A Small Fortune “There have been many fine scientists desperately trying to become poor businessmen.” – General Georges Doriot, Pioneer Venture Capitalist Harold Evans, author of the seminal account of American entrepreneurship entitled, They Made America, notes that, ―An innovator‘s essential contribution may be to realize the promise of the known.‖ A logical extension of Mr. Evans‘s supposition is that, ―Inventors seek the promise of theunknown, while innovators realize the promise of the known.‖As most scientists will attest, ―realizing the promise‖ is usually more financially rewarding than ―seeking the promise.‖ Inventors often make a small fortune out of a big one, because they focus on discovering breakthroughs without regard for their ultimate financial return. In addition, due to their personalities, they frequently do not have the proper skills or desires to turn novel ideas into self-sustaining enterprises. This leads them to design and create the best technology, without regard for the myriad of
customer-centric, non-product-oriented issues that contribute to a product‘s ultimate success or failure. The individuals highlighted in bold below achieved a moderate level of fame and financial success. However, for many inventors who were not innovators, including Philo Farnsworth, their efforts resulted in little fame and often no personal fortune.
What Did Philo Invent? Philo invented television with the hope that by visually transmitting news and global events into peoples‘ homes, the world would become a harmonious community, thereby reducing man‘s desire to wage war. After a long bout with alcoholism, Philo was understandably bitter in his twilight years. However, after silently watching America‘s astronauts land on the moon on his small black-and-white television, he turned to his wife and said, ―This has made it all worthwhile.‖
Problems faced by SMEs and entrepreneurs in India
India ranks 46th out of 53 countries in aiding SME growth. Though this may not come as a surprise to us, it should atleast make us think. When there is so much talk going on about SME's like this and this why is it that we still rank 46th out of 53 countries. If the case was about rank of Indian SME's among other countries its another issue since we have a long way to go anyway. However, the ranking was based on to what extent the government "supports" the SME's and we have come a meagre 46th in it. The main problems facing the SME sector, which everyone knows, is the problem of capital availability for their growth. However there is another silent problem. The problem of the outdated and archaic labour laws which makes it extremely difficult for entrepreneurs to start businesses and the ones already started, in running them. The body of legislation that shapes the industrial and labour environment in India is huge.For e.g. here is a minuscule sampler: Minimum Wages Act, 1948; Trade Unions Act, 1926; Contract Labour Act, 1970; Weekly Holidays Act, 1942; Beedi and Cigar Workers Act, 1966. These and much more form a crisscrossing network of chaotic and often-contradictory laws that are crying out for overhaul. Lets take an example of a company interested in shutting down its operations. According to the Industrial Disputes Act, 1947, any company which employs more than 100 people and wants to close down, needs to get a permission from the state government and practically such permissions are not given. The issue of closing down a company goes on for years and the entrepreneur or the founder is stuck in a legal mess. Now, does that mean that we need to shift to the hire and fire methodology of employing people?
No, that cannot be the solution. The solution for this problem is not simple. However, there are certain means through which the process can be streamlined. Many representing the SME have been advocating a single window approval agency in India for opening up a company. Though there has been lots of lip service on the same, no concrete efforts have been taken.
A.Indian Entrepreneurship Entrepreneurship in India before 1991, Business was a little successful because of the limited ambition, licenses, contacts with the government organization and understanding the other functions. Decisions were made on connections than on competition. Goals of the business was reflection in the swadeshi movement which promoted to attain the freedom economic way. In this period entrepreneurship was not very much exposed and capitation was limited and India had a few successful stories. In 1991 government of India liberalized the economy. Indians take up their family businesses usually which made the other nationals to defeat the Indian market easily because they had super technologies, financial power and resources. Indian businesses was put up in a situation where they had to change the way in which they outlook the situation. Even later only few Indian families adapted themselves in the new policies which was even tougher for other families to get into this kind of changes. Recently the IT business get into introduce which paved a way for new owners and employers giving up more wealth which probably now India is growing in terms of business economically.Liberalization changed the nature of every family in India. For a large business to be successful the family should make them self flexible to see the competitive environment. IT business was a success because they focused and managed the customer professionally. After liberalization the business in India was better. A number of entrepreneurs were born and started to grow in large numbers such as the realtors, distributing personnel‘s and the developers. Success followed when the efficient capital been allocated and proper execution and knowing the angle in which the customer may think of. Later the businesses started to joint venture with the companies and grow the capital. To maintain a business the Indian entrepreneurs separated the control which operates the business for the benefit of the owners and family succession. Indian businesses should have to make professional managers for the proper development. The management controls should be with the professionals and it should be performed in an efficient way which benefits the employee and the owner who can still provide the vision and connection. As Indian business became very professional the opportunities to get the global business which made the tie ups with the countries abroad increased.
B. Risks to Indian Business Growth The entrepreneurs in India will develop and grow if the economy continues to grow on a sustainable basis. The risk to the India‘s growth is Terrorism, Corruption (Politically) etc. As investment increases foreign businesses can invest in India. 1. Terrorism: Terrorism is attributable to religions and naxals. The terrorism creates uncertainty and delays the investment in any countries. So it‘s necessary to comprehend a country culture, constitution and the response to terrorism. Culture is there in myths, television, religion and history. Indian culture is tolerable and has many differences. To distinguish between the Europe and India Indian has many divergent countries. Whereas Europe has independent countries. The skill in entrepreneurship and flexible to grow in spite of all the challenges. 2. Political risks: India is a country with the lot of complexities and the political parties that are in India is abundant. The parties have involved addressing the needs and they gave the lower groups a way to the national level. The future will characterize with the combining of the politics into business. As the middle class families in India grows the caste Religious differences will fade giving rise to the New economical development positively with the uncertainities in the market place. 3. Economic Reforms Growth needs to continue and India needs another dose of reform, aimed at markets for inputs, from electricity to labor and land. If we are to continue to maintain the growth trajectory, the market for inputs needs to be liberalized. These are difficult political decisions and coalition politics will make the process slower and difficult. It will be easier for the government to address and repair old infrastructure through public private partnerships. India is going through a structural — not a cyclical — change; hence, the process is slow and driven by the political process. We need investments in power, roads, ports and bridges. An important area of reform is the power sector, as no industry can achieve a successful transformation without sufficient power. This is why the
Indian government needs to push through the reforms on power generation, transmission and distribution. It is difficult to dampen the Indian entrepreneurial spirit. It has grown and competed in the global market despite the controls of the Indian II. CHALLENGES FACED BY ENTREPRENEURS A. Globalization Few year before the entrepreneurs in India had to fight the national competition. The thing has changed right now that is it became more complex than it was before. Almost all countries have the economies and the globe became a giant market. Few years back the Indian entrepreneurs had to fight regional and national competition. However, today, the scenario has changed and become much more complex than what it was earlier. Now, almost all countries have opened up their economies, and the world (globe) has become one giant global market. To lead themselves in this globalization the entrepreneurs have to prepare themselves with new innovative business ideas and skills .They have to accept the challenge willingly and try their level best to come up with the best possible place in the global market. Multinational companies abroad have so much power to invest money in all the branches with efficient team of managers and experienced employees. Advantage of have a MNC is that it is very difficult for Indian entrepreneurs to compete. Which put forth a big challenge to the people? Which make the Indian entrepreneurs to have been improved in all the departments of business such as of the productions, finance, and marketing. They have to use the modern technology and new methods in an efficient manner as a motivating factor to the manpower in the competition. B. Liberalization It is the process of giving freedom to do. India started the process of liberalization in case of business, trade for the sake of growth of the organization and economical development of the Indian economy. As an initial thing they granted liberty to have private Entrepreneurs to start any business of their choice and in their domain. Liberalization brought many entrepreneurs and new business arising. Now the challenge is here is how to take the advantage of liberalization into the business in india. However, Indian entrepreneurs can beat the enormous competition by focusing more on the selling high-quality yet unique good and services at a lowest price.
C. Adapting to modern technology Science and Technology have developed in a vast arena. It not only improves the quality but also producing good and best services with the reduction in the cost of production. The reduction in cost increased the process of production.High-Quality commodities, Low cost of productions, faster production and make highly competitive environment. The Indian Entrepreneurs are in need or mandatorily in need for to keep pace with the emerging technologies as much as possible and to adapt to the new technology. Old machines are replaced. This is the challenge for the Indian Entrepreneurs to train the employee very well to make the handle the modern technology in an efficient manner.
D. Workforce in India The workforce has a remarkable change. The stat indicates the male domination is going down as days passes by. A new era of highly qualified educated Indian women have entered to work in any companies besides the culture and barriers faced in the society. Women in India are now as professional managers, efficient employees, more hardworking than men today in the companies. This presence of women in the society has brought new challenges in the Indian entrepreneurs. Now the challenge is that the entrepreneurs should provide the environment in the women can work peacefully for the enrichment of the company. They should provide a better working condition and other facilities. Apart from this the entrepreneurs are also facing greater challenge with the younger generation who are very energetic and ambitious graduates that have very higher dreams to achieve the golden star to accomplish. The managers are eager to work hard. The restless young managers should be made enthusiastic and should be motivated at every instance to make them work hard without knowing the tiring effect. And which will help in engaging them in the challenging tasks that have been put by the companies abroad. The Indian entrepreneur has to face this challenge by training and developing these young minds and motivating them continuously.
E. Marketing is a big challenge Marketing is the next big challenge that has been bothering the Indian entrepreneurs today. The each company has formulated new techniques to market their products for a better economical growth in the company. High pressure salesmanship is used. Advertisement is the one major key factor for the marketing which is used by the entrepreneurs through media such as television, internet, radio , newspapers etc. The entrepreneur has to select the efficient and experienced marketing team. He/She must motivate the team in order to get a greater improvement in the business. He must give training which will develop the team into a better one. Motivating is to give them high salaries, attractive incentive and good commissions. Indian entrepreneur must try his level best to satisfy needs and expectations of his customers. He must use marketing research and produce his product by taking into consideration the consumers likes and preferences. He must sell high-quality goods at lower prices. He must also provide after-saleservices. In short, he must make his business a consumeroriented andservice-oriented one. He must always give his customers full value for their money. If not, they will lose trust in his brand and go to the competitors. F. Managing the finance of business Finance is the life blood of a business. It can either make a business or break it. Under-capitalization and Over- capitalization are very harmful to the business. Managing the finance of his business is a big challenge for an Indian Entrepreneur. He must manage both Fixed and Working capital properly. He must borrow money from the right source. He must manage his Cash Flow properly. He must invest his excess funds correctly. He must create sufficient Reserves and surpluses. He must provide enough depreciation for his fixed assets, so that he can replace them when they become old and outdated. He must provide for repairs and maintenance of machines. He must also take steps to provide for but avoid bad debts. G. Challenges in the field of production The Indian entrepreneurs have to face many challenges in the field of production. They must replace all outdated plants and machineries with new modern ones. They must provide continuous training to their production staff. They must use good quality raw- materials to produce high quality finished goods. They must have a good Inventory Control system. This will avoid Overstocking and Under- stocking.Over-stocking will block the working capital,
and Under-stocking will block the production process. Indian entrepreneurs should use a part of their profits for Research and Development (R & D). They must pay special attention to Quality Control (QC). Now-adays most companies also use Total Quality Management (TQM) to ensure their finished goods are of good quality. H. Balancing economic and social Objectives This is also a big challenge before Indian entrepreneurs. They must balance between earning high profit and doing social-welfare activities. They must use modern machines without causing unemployment and harm to the environment. They must earn a profit without reducing quality of their goods and services. They must earn a profit without charging high prices for their products. They must not cause any type of pollution in the society. They must accept their communal responsibilities and donate a small part of their profit (money) for social causes. They must pay all their taxes and duties.
I. Social Challenges Family challenges are always at the top because that is what matter the most but at times social challenges also are very important. It is happening in terms where you will have lot of challenges to be faced because the improvement in the business will be a quite delay than being an employee but the future growth is very large which patients is very important. On looking the people when the entrepreneur lose the confidence inside him/her then it will be a failure which should be taken care of. J. Technological Challenges Indian education system lags too much from the Job industry as a whole but then it lags even more when it comes to online entrepreneurship. This does makes entrepreneurs life that much more difficult on technology front. K. Financial Challenges Financial challenges are a lot different in India especially for online entrepreneurs. When you are starting out as an entrepreneur you don‘t opt for venture funding but try to go with funding from small to medium business people. Many such non technical business people don‘t understand the online business models as a whole and so getting an initial business funding from them becomes challenging.
L. Teaming Challenges Indians are more inclined towards job in big companies than towards a partnership or even working in smallstart-ups. You can have the hardest time finding the right team of people to get yourself moving. this problem to find the right balance of people to work is very difficult.
M. Motivation and dedication Indian women/men come across several barriers before coming for a working environment it is not only India but all the continents, countries, states, cities. The thing that is more needed for the growth of the organization is that the employees should be treated in a good manner that they work with dedication. The thing to make them do the work with a piece of dedication it is done by appropriate actions taken by the entrepreneur. The entrepreneur should make a more number of activities which motivates them and which makes them self dedicate them self to get into the business. III. ESSENTIALS TO FACE THE CHALLENGES A. Reliable support from honest and efficient government institutions is essential. It is not easy to start a business in India. When asked about the difficulty of starting a business, 46% of Indians say the government makes it hard to start a business, while 26% think the opposite. Little progress has been made on this front. To some degree, widespread corruption might be contributing to the low efficiency and high costs of starting a business in India. Perceptions of a corrupt business community could give business owners incentive to do unscrupulous things, such as paying bribes to get work done, which could exacerbate the lack of respect for entrepreneurs among the Indian public. Less than half (48%) of Indians consider business owners to be good role models for the country's youth, Gallup research shows. B. Indian entrepreneurs need more localized funding at the initial stage. The most helpful factor in becoming an entrepreneur in India is access to funding.
India has attracted the attention of global investors in recent years because of its growth and optimistic expectations for its future. The key problem for entrepreneurs seems to be less about the availability of funding and more about finding the right type of funding. The majority of existing venture capital funds for startups are focused on export- oriented IT or mobile solutions. Few seem to facilitate startups that offer the high-demand products and services in the healthcare or energy sectors in India's massive domestic market. Another potential problem with funding lies in the disconnect between investment funds and local entrepreneurs. Foreign investors could make inaccurate assumptions based on funding arrangements that have worked well in their home countries or other emerging markets and, in turn, ignore that India is unique in its market demands, talent supply, and business culture. C. Indian entrepreneurs need more access to training and mentorship, particularly in rural areas. The best mentorship comes from successful business owners who have personal experience overcoming entrepreneurial challenges. India has some highprofile entrepreneurs who can serve as inspirational icons. India has taken significant steps to promote entrepreneurial education and has established a list of national institutions to provide special training for entrepreneurs. Entrepreneurial education also shares many of the prevalent problems regarding the general education system in India, including a shortage of quality educators and an absence of quality content, which hinder entrepreneurial growth D. Enforcing agreements is necessary to protect trusting business relationships. India has a large youth population, which tends to be more willing to take risks compared to the older population. The lack of judicial infrastructure on enforcement does little to protect the trusting relationship between entrepreneurs and business partners or between entrepreneurs and customers. A lack of trust inhibits collaboration and significantly increases the risk an entrepreneur takes, ultimately slowing the growth of the MSME sector. a.Skilled Manpower: For a great business plan with an excellent business model but for the sustainability of the enterprise and the scalability of the idea, you need people with the required skill-sets at all levels. While manpower may be cheap in India but the quality leaves a lot to be desired. Safety and security of government sector was the driving factor followed by lure of the bucks offered by private sector. So the youth don't just lack the required skills, rather they aren't mentally prepared either to work in a startup.
b.Funding: According to research firm Venture Intelligence, 64 startups companies that are less than three years old have a venture capital funding. According to industry experts there is need for at least 10-foldincrease in early stage risk capital. Given the high interest rates and lengthy process involved; debt, as a source of funding, in not even an option for these startups. Also there is every reason to suggest that the euphoria of the past year and half has made way for a more circumspect ―funding environment‖. c.Uncertainty: India is a developing country and unlike its developed western counterparts, it carries more risk. While an entrepreneur is one who is geared up to take risks and deal with uncertainty but systemic risks may simply be too hot to handle even for them.
IV. WOMEN ENTREPRENEURS
Women entrepreneurs face a series of problems right from the beginning till the enterprise functions. Being a woman itself poses various problems to a woman entrepreneur, The problems of Indian women pertains to her responsibility towards family, society and lion work. The tradition, customs, socio cultural values, ethics, motherhood subordinates to ling husband and men, physically weak, hard work areas, feeling of insecurity, cannot be tough etc are some peculiar problems that the Indian women are coming across while they jump into entrepreneurship. Women in rural areas have to suffer still further. They face tough resistance from men. They are considered as helpers. The attitude of society towards her and constraints in which she has to live and work are not very conducive. Besides the above basic problems the other problems faced by women entrepreneurs are as follows: 1. Family ties: Women in India are very emotionally attached to their families. They are supposed to attend to all the domestic work, to look after the children and other members of the family. They are over burden with family responsibilities like extra attention to husband, children and in laws which take away a lots of their time and energy. In such situation, it will be very difficult to concentrate and run the enterprise successfully. 2. Male dominated society:
Even though our constitution speaks of equality between sexes, male chauvinism is still the order of the day. Women are not treated equal to men. Their entry to business requires the approval of the head of the family. Entrepreneurship has traditionally been seen as a male preserve. All these put a break in the growth of women entrepreneurs.
3. Lack of education: Women in India are lagging far behind in the field of education. Most of the women are illiterate. Those who are educated are provided either less or inadequate education than their male counterpart partly due to early marriage, partly due to son's higher education and partly due to poverty. Due to lack of proper education, women entrepreneurs remain in dark about the development of new technology, new methods of production, marketing and other governmental support which will encourage them to flourish. 4. Social barriers: The traditions and customs prevailed in Indian societies towards women sometimes stand as an obstacle before them to grow and prosper. Castes and religions dominate with one another and hinder women entrepreneurs too. In rural areas, they face more social barriers. They are always seen with suspicious eyes. 5. Shortage of raw materials: Scarcity of raw materials, sometimes , availability of proper and adequate raw materials sounds the death-knell of the enterprises run by women entrepreneurs. Women entrepreneurs really face a tough task in getting the required raw material and other necessary inputs for the enterprises when the prices are very high. 6. Problem of finance: Women entrepreneurs stiffer a lot in raising and meeting the financial needs of the business. Bankers, creditors and financial institutes are not coming forward to provide financial assistance to women borrowers on the ground of their less credit worthiness and more chances of business failure. They also face financial problem due to blockage of funds in raw materials, work-in-progress finished goods and non-receiptof payment from customers in time.
7. Tough competition: Usually women entrepreneurs employ low technology in the process of production. In a market where the competition is too high, they have to fight hard to survive in the market against the organized sector and their male counterpart who have vast experience and capacity to adopt advanced technology in managing enterprises
8. High cost of production: Several factors including inefficient management contribute to the high cost of production which stands as a stumbling block before women entrepreneurs. Women entrepreneurs face technology obsolescence due tonon-adoption or slow adoption to changing technology which is a major factor of high cost of production.Figure(2)-shows the profit in each sector by Indian economy 9. Low risk-bearing capacity: Women in India are by nature weak, shy and mild. They cannot bear the amount risk which is essential for running an enterprise. Lack of education, training and financial support from outsides also reduce their ability to bear the risk involved in an enterprises. 10. Limited mobility: Women mobility in India is highly limited and has become a problem due to traditional values and inability to drive vehicles. Moving alone and asking for a room to stay out in the night for business purposes are still looked upon with suspicious eyes. Sometimes, younger women feel uncomfortable in dealing with men who show extra interest in them than work related aspects. 11. Lack of entrepreneurial aptitude: Lack of entrepreneurial aptitude is a matter of concern for women entrepreneurs. They have no entrepreneurial bent of mind. Even after attending various training programmes on entrepreneur ship women entrepreneurs fail to tide over the risks and troubles that may come up in an organizational working.
12. Limited managerial ability: Management has become a specialized job which only efficient managers perform. Women entrepreneurs are not efficient in managerial functions like planning, organizing, controlling, coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited managerial ability of women has become a problem for them to run the enterprise successfully. 13. Legal formalities: Fulfilling the legal formalities required for running an enterprise becomes an upheaval task on the part of an women entrepreneur because of the prevalence of corrupt practices in government offices and procedural delays for various licenses, electricity, water and shed allotments. In such situations women entrepreneurs find it hard to concentrate on the smooth working of the enterprise. 14. Exploitation by middle men: Since women cannot run around for marketing, distribution and money collection, they have to depend on middle men for the above activities. Middle men tend to exploit them in the guise of helping. They add their own profit margin which results in less sales and lesser profit. 15. Lack of self confidence : Women entrepreneurs because of their inherent nature, lack of self-confidence which is essentially a motivating factor in running an enterprise successfully. They have to strive hard to strike a balance between managing a family and managing an enterprise. Sometimes she has to sacrifice her entrepreneurial urge in order to strike a balance between the two.
Shahid Balwa hails from the Chilliyaah Sunni Muslim community, and his forefathers were from Gujarat
Net Worth $1.06 billion
Married, 2 children
Balwa dropped out of college and entered the family's hotel business. His father, Usman, started Balwa's restaurant at Marines Lines and Balwa's Hotel at Mumbai Central. He partnered with billionaire real estate developer Vinod Goenka to form DB Realty in 2006. In a few years, the construction company claimed to have 21,000,000 square feet (2,000,000 m2) of saleable area in ongoing projects and another 40,000,000 square feet (3,700,000 m2) in upcoming projects In 2010, Shahid Balwa, is the youngest Indian to feature on the Forbes List and is amongst the 10 youngest billionaires in the world. He was ranked by Forbes as India's 50th richest man in 2010 His charitable activities are in the field of health and education. They include the Balwas High School and Charitable Medical Institution in Phirozpura, Gujarat. In the next 10 years he is keen to turn this into sizeable educational institution which can take in 20,000 students
Shahid Balwa Biography, wiki, db realty, Billionaire, wiki and College drop out billionaire
Shahid Balwa is the College drop out Gujarati Billionaire Business tycoon. In 2010, Forbes has estimated his net worth US $ 1.0 Billion making him India’s top 50 richest persons. Balwa is the Real Estate Business Tycoon made his fortune from DB realty. His family migrated to Mumbai from Gujarat to start a restaurant business. Moved into hotels, ending up partnering with Vinod Goenka in DB Realty and also in telecom outfit DB Etisalat. Their real estate firm currently has 60 million square feet under development. Projects include Turf Estate, a luxury high-rise, and the 108-story Park Hyatt Hotel in South Mumbai to be completed in 2013. Fitness fanatic, he works out every day. Both he and Vinod are rumored to be politically wellconnected. Personal Life Shahid Balwa is married and has two children and living in Mumbai. Thus, a college drop out has made his fortune from the real estate. This shows that higher educational degrees have nothing to do with your financial well beingness in the future.
Mr. Shahid U. Balwa, B.Com., serves as a Managing Director of BD&P Hotels (India) Pvt. Ltd. Mr. Balwa serves as the Chief Executive Officer, and Managing Director of Dynamix Balwas Infrastructure Pvt. Ltd. Mr. Balwa serves as Vice Chairman and Managing Director of DB Realty Ltd since December 10, 2011. He served as Managing Director of DB Realty Ltd., from January 8, 2007 to February 9, 2011. Mr. Balwa is a hotelier and has over a decade of experience in the construction business. Mr. Balwa has an experience in the hospitality and construction industry, and provides the BD&P Hotels (India) Pvt. Ltd. with valuable insights into the Indian Real Estate. Mr. Balwa has promoted Associated Hotels Limited, which owns and operates a 63 room 5-Star Hotel in Ahmedabad known as Le Meridien and also a 2 Star Hotel known as Hotel Balwas International at Mumbai Central. He serves as a Director of Associated Hotels Limited. He serves as a Director of Goan Hotels And Clubs Private Limited; Gokuldham Real Estate Development Company Private Limited; M K Malls & Developers Private Limited; Milan Theatres Private Limited; Neelkamal Central Apartment Private Limited; Neelkamal Realtors Hotels Private Limited; Neelkamal Realtors Suburban Private Limited; Neelkamal Realtors Tower Private Limited; Neelkamal Shantinagar Properties Private Limited; Nihar Constructions Private Limited; Real Gem Buildtech Private Limited; Saifee Bucket Factory Private Limited; Siddharth Consultancy Services Private Limited; Siddhivinayak Realties Private Limited; Swan
Connect Communications Private Limited; Tiger Trustees Private Limited; V S Erectors & Builders Private Limited; Zenstar Hotels Private Limited, Associated Hotels Private Limited, Allianz Infratech Private Limited, Crossway Realtors Private Limited, Crystal Granite & Marble Private Limited, D B Hospitality Private Limited, D B Properties Private Limited, D B Airport Infra Private Limited, D B Contractors & Builders Private Limited, D B Hi-Class Construction Private Limited, D B Tele Wimax Private Limited, Dynamix Balwas Infrastructure Private Limited, Dynamix Balwas Resorts Private Limited, Dynamix Balwas Telecom Private Limited, Dynamix Building Materials Private Limited, Earthen Agro Infrastructures Private Limited, Esteem Properties Private Limited, Eterna Realty Private Limited, Etisalat-D B Telecom Private Limited, and Falgun Consultants Private Limited. He served as Executive and Non- Independent Director of DB Realty Ltd., from January 8, 2007 to February 9, 2011. Mr. Balwa served as Non-Executive Independent Director of Provogue (India) Ltd. until May 30, 2011. Mr. Balwa is a Graduate in Bachelor of Commerce. Shahid Balwa mingled with his guests and ensured they were taken care of at a dinner following a Firoz Khan play at the NCPA, which was sponsored by D B Realty last month. The 37-year-old managing director of the construction firm, which has stunned the real estate industry because of its meteoric rise in barely five years, seemed least perturbed by the gathering 2G storm. "He is known to take good care of everyone," said a source in the property market. After the party, a retinue of toughlooking men escorted him to his BMW-7 series car and he sped away. Balwa's arrest late Monday night from his Almeida Park residence in Bandra (West) set tongues wagging in Mumbai's cut-throat builders lobby. The boy who grew up in a small family home near the landmark Maratha Mandir cinema at Mumbai Central and studied at Mazgaon's St Mary's School went on to become one of the wealthiest people in the world. The Forbes list has him as India's 66th richest man with a net worth of US $1.06 billion. Hailing from the Chilya Sunni Muslim community, Balwa, who speaks immaculate Gujarati (his forefathers were from that state), dropped out of college and entered the family's hotel business. His father, Usman, started Balwa's restaurant at Marines Lines and Balwa's Hotel at Mumbai Central. In the late 1990s when the Balwas expanded, they sold their Mumbai Central house and bought a bungalow plot in Bandra from a Parsi family for Rs 2 crore. "They migrated to the US, but we are still friends. A similar-sized plot will now cost Rs 70 crore and even a person like me will think twice before buying," Shahid Balwa told TOI recently. The businessman's profile shot to dizzying heights after he tied up with developer Vinod Goenka to form DB Realty in 2006. In a few years, the construction company claimed to have 21 million
square feet of saleable area in ongoing projects and another 40 million square feet in upcoming projects. In corridors of power, D B Realty is widely perceived to be backed by a top state politician. Bureaucrats talk in hush tones about how files of the construction company are speedily approved. Last year, D B Realty won the right to redevelop the 100-acre Bandra (East) government colony along with Ackruti City and the Pune-based Kakade Infrastructure. Other city-based builders allege the government procedure of inviting tenders for the megaproject lacked transparency. Sources said D B Realty is also one of the biggest beneficiaries of a controversial parking policy, in which the government gave additional FSI to builders who constructed public parking lots on a portion of their land.
CONCLUSION Today's promising market conditions have been very encouraging to many young engineering graduates who strongly believe that they have the technical knowledge and skills to attract new customers. These young Indian entrepreneurs are not the typical and conventional business entrepreneur. They are the children of many business professionals. As elite graduates of IITs, National Institutes of Technology, Indian Institute of Science, and the IIMs, this new young breed of worthy entrepreneurs have targeted their efforts on innovative ways to technologically address the genuine needs of millions of people. Whereas some of the limitations are also there in india regarding the entrepreneurship. The qualities of an good entrepreneur is must as to how to remain competitive in this globally competitive market
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