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S.K SOMAIYA COLLEGE OF ARTS,

SCIENCE AND COMMERCE
2015-2016
ROLL NO. 134
MUKESH BARI
SYBMS FINANCE
SEMESTER 1V
BACHELOR OF MANAGEMENT
STUDIES.
SUBJECT:- BUSINESS PLANNING AND
ENTERPRENUSHIP MANAGEMENT
TOPIC:-PROFESSIONAL VS FAMILY ENTERPRENEUR IN
INDIA AND DISCUSS ENTERPRENEUAL CULTURE
MRS. APARNA JAIN

INDEX

SR
NO
1.

CONTENT
INTRODUCTION

PAGE
NO
3

2.

Professionalism and family

entrepreneurs

3.

PROFESSIOANLISM VS. FAMILY

ENTREPRENEURS

4.

ENTREPRENEURIAL CULTURE

5.

CONCLUSION

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6.

BIBLIOGRAPHY

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INTRODUCTION
Entrepreneur is an individual who, rather than working as an employee, runs a small
business and assumes all the risk and reward of a given business venture, idea, or
good or service offered for sale. The entrepreneur is commonly seen as a business
leader and innovator of new ideas and business processes.
Entrepreneurs play a key role in any economy. These are the people who have the
skills and initiative necessary to take good new ideas to market and make the right
decisions to make the idea profitable. The reward for the risks taken is the
potential economic profits the entrepreneur could earn.

Entrepreneurship
Entrepreneurship is the process of designing a new business, i.e. a startup
company offering a product, process or service.[1] The entrepreneur perceives a new
business opportunity and often exhibits biases in their perception and subsequent decision to
exploit the opportunity.]The exploitation of entrepreneurial opportunities may include design
actions such as to develop a business plan, acquire the human, financial and other required
resources, and to be responsible for its success or failure. [3] Entrepreneurship may operate
within an entrepreneurship ecosystem which includes government programs and services
that promote entrepreneurs, entrepreneurship resources (e.g., business incubators andseed
accelerators), entrepreneurship education, training and financing (e.g., loans, venture capital
financing, and grants).
In recent years, "entrepreneurship" has been extended from its origins in for-profit
businesses to include social entrepreneurship and the concept of the political entrepreneur.
Entrepreneurship within an existing firm or large organization has been referred to
as intrapreneurship and may include corporate ventures where large entities spin off
subsidiary organizations. Entrepreneurs are leaders willing to take risk and exercise initiative,
taking advantage of market opportunities by planning, organizing, and employing resources,
[6]

often by innovating new or improving existing products. More recently, the term

entrepreneurship has been extended to include a specific mindset resulting in

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entrepreneurial initiatives, e.g. in the form ofsocial entrepreneurship, political
entrepreneurship, or knowledge entrepreneurship.
According to Paul Reynolds, founder 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 self-employment 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." [8] In recent years,
entrepreneurship has been claimed as a major driver of economic growth in both the United
States and Western Europe.
Entrepreneurial activities differ substantially depending on the type of organization and
creativity involved. Entrepreneurship ranges in scale from solo, part-time projects to largescale undertakings that create many jobs. Many "high value" entrepreneurial ventures
seek venture capital or angel funding (seed money) in order to raise capital for building the
business. Many organizations exist to support would-be entrepreneurs, including specialized
government agencies,business incubators, science parks, and some NGOs.
Beginning in 2008, an annual "Global Entrepreneurship Week" event aimed at "exposing
people to the benefits of entrepreneurship" and getting them to "participate in
entrepreneurial-related activities"

Entrepreneurial Decision
The entrepreneur is commonly seen as an innovator a designer of new ideas and
business processes. Management skill and strong team building abilities are often
perceived as essential leadership attributes for successful entrepreneurs. Political
economist Robert Reich considers leadership, management ability, and teambuilding to be essential qualities of an entrepreneur.

Risk-taking
Theorists Frank Knight and Peter Drucker defined entrepreneurship in terms of risktaking. The entrepreneur is willing to put his or her career and financial security on the

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line and take risks in the name of an idea, spending 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.

Entrepreneurship is often associated with true uncertainty, particularly

when it involves something truly novel, such as a market that did not
previously exist.

Professionalism and family entrepreneurs

PROFESSIONALISM :
PROFESSIONALISM is actually the process by which given occupation become
professions in the sense of attaining professional status. OR The expertness
characteristic of a professional person.
ELEMENTS OF PROFESSIONALISM :

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ELEMENTS OF PROFESSIONALISM
ALTRUISTIC
ACCOUNTABILITY
EXELLENCE
HONESTY/INTEGRITY
DUTIFUL
RESPECT TO OTHER
1.ALTRUISTIC: Showing unselfish concern for the welfare of others 2.
ACCOUNTABILITY Responsibility and Reliability
3.EXELLENCE Knowledgeable Skilful Competency to retrieve and handle
information Appropriate decision making skills Competency in skills of
communication
4. Honesty/ Integrity The quality of being honest Moral soundness Undivided or
Unbroken
5. Dutiful Appreciation of the role Aptitude for personal development
6. Respect to others

Professionalism in Business :
Professionalism in Business Health and Hygiene Personal Image-First
Impressions REALLY Count! Appearance and Dress Etiquette and Manners
Always use the magic words: PLEASE and THANK YOU Be on time Keep your
promises Respect people and be courteous Follow up with thank-you notes
Return all phone calls Call ahead to confirm appointments

FAMILY ENTREPRENEUR :
A family entrepreneurship is defined in terms of:
Ownership control by members of a family
Strategic influence of a family in the management of the firm
Concern for family relationship
The dream of continuity across generation

PROFESSIOANLISM VS. FAMILY ENTREPRENEURS

PROFESSIOANLISM VS. FAMILY ENTREPRENEURS
1. DEGREE OF OPEN MINDEDNESS:

Professional are open minded, receptive to new ideas, ready to

experiment.

While family entrepreneurs generally lack this.

2. NEW PRACTICES:
Include Quality certification, Participative Mgmt., Change in working style,
financing pattern.

Professional are always leaders in adopting them, experimenting with

them.

While there is lack of this attitude in family entrepreneurs

3. IMPARTIAL HRM:

Professionals do not show partiality towards any particular gender.

But family business houses employ their relative or friends or people

belonging to same social caste in responsible position.

4. ORGANIZATION ORIENTED FINANCIAL MANAGEMENT:

Professionals tend to make financial decision in the way which is best for
the organization.

But family entrepreneurial firms give first priority to their familiar concern &
interests.

5. DECISION MAKING STYLE:

The decision making process in professional run organization tends to be

qualitative better & vision to be broader. It is mostly participative.

While in family run businesses is more autocratic in nature. Here it is

mostly owner entrepreneur himself or herself who makes the decision
sometimes with the help of his family members or friends.

ENTREPRENEURIAL CULTURE

An entrepreneurial culture is an environment where someone is motivated

to innovate, create and take risks. In a business, an entrepreneurial culture
means that employees are encouraged to brainstorm new ideas or
products. When work time is dedicated to these activities, it is called
intrapreneurship.
The concept of "culture" is very complex and is used with various meanings. Under
a pragmatic definition one can say that any group of human beings whose thinking
and acting differs from that of other groups has a "culture" .

The six key elements of entrepreneurship

Motivation & Commitment:
Its important to get the basic ingredients of start-up right.
People who are lending money look at the person first and
foremost, so motivation is the most critical. You need to
convince your bank manger you can make your business work
because youve researched your market, youve costed out the
business and you know where you want the business to be in 5
or 10 years time.
A means of showing your commitment to the business would
be to save and invest money.

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Abilities & skill:
The second element is one of ability and skills. The individual
has to have skills appropriate to the kind of business theyre
proposing to run. And if they dont have them, they should have
a reliable person who can.
It could be that one person knows how to run a business from
an operational and management perspective, whereas another
person has the technical skills to develop the product or
service.
Resources:
The third element is resources. Thats not purely about money
and equipment; its also about intellectual capability. (The
ability to persuade others is important. Many entrepreneurs
have been able to negotiate very favourable deals against the
odds, when establishing their business).
Strategy & vision:
The fourth element is strategy and vision in terms of thinking
four or five years ahead and having some idea of where that
business might be in the future and putting in place a plan to
achieve that goal.
Planning & organisation:
The fifth element is planning and organisation. Without
planning, organisation, coordination and administration, the
product wont get to market nor will it satisfactorily meet
demand. You need to think about systems, job roles, and

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quality issues, which if handed effectively, will ensure you, can
satisfy the market by delivering on time and to the right place.

The idea in relation to the market:

The sixth element is the idea and more specifically, the idea in
relation to the market place. What we are trying to do is to
make certain that we are customer focussed, ensuring that the
individual is satisfied in their requirements.
When we look at the six elements it becomes evident that you
can have a bad product with a highly motivated individual,
which will produce an acceptable business. But what you
cannot have is a really good product with a de-motivated
individual. The business will not succeed because the product
will not reach the market at the right time, at the right place, or
at the right price.

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