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Concept of Entrepreneurship

Entrepreneur Entrepreneurship Enterprise


Person Process of Action Object

Innovation Principle:-
Do’s
• Systematic Innovation begins with an analysis of opportunity
• To have effective innovation it should be simple and focused
• Innovation starts small
• A successful innovation aims at leadership

Donts
• Do not Diversify
• Innovate for present not for future

Activities of Entrepreneur
• Perceiving the need and analyzing own self in relation to ones life goal
• Scanning the environment for opportunities
• Identification of Product/Project
• Conducting Market Survey
• Identification of Technology, Plant and Equipment
• Determination of Source of Finance
• Preparation of Project Report business Plan
• Arranging finance, infrastructure and Utilities
• Project Implementation
• Marketing and Sales Management
• Management of Enterprise

Is being an Entrepreneur is so Simple than why People are not?

Entry Barrier
• Industrial Specific Data
• Insufficient Market Information
• Limited Infrastructure
• Unorganised Capital Market
• Un Sympathetic and Cumbersome Government Attitude
• Holistic Environment
• Limited Access to Technology
Exit Barrier
• Emotional Commitment of the Person to Venture
• Specialised assets
• Increasing Demand for Managerial Skills
• Limited scope of Operation and limited funds outside Business
• Fear of Failure

Motivation refers to the way in which urges, drives,desire, aspiration, striving or needs
direct, control or explain the behavior of human being.

Qualities of a Successful entrepreneur


1. Vision
2. Innovation
3. Organizing
4. Abilities
5. Motivation
6. Pride
7. Risk Taking
8. Dynamism
9. Aptitude
10. For Change
11. Adaptability
12. Flexibility
13. Determination
14. Will power
15. Creativity
16. Tactfulness
17. Self Confidence
18. Intelligence
19. Knowledge
20. Inbuilt Values
21. Commitment
22. Dreamer
23. Family Closeness
24. Instinct

Windows of change:-

Corridor principle
Experience, expertise in segment to spot the window in that segment
Widow is that segmenet or opportunity evolved.. Being positioned in similar work or
having had experience with related venture so that when a window opens it is easy
got them to move quickly into New Venture.
Window is a time horizon during which an opportunity exist before something happens
to eliminate them

Classification of Entrepreneur
Use of
Type Of Business Technology According to Motivation According to Growth
Pure entrepreneur ( Psychological Growth ( Predictable, Linear
Business Technical , Economic Rewards) sustainable Growth)
Trading Non Technical Induced ( Due to Circumstance) Super Growth
Motivated ( Desire for Self
Industrial Professional Fulfillment)
Corporate High Tech spontaneous (Natural)
Agriculture Low Tech
Retail
Services

According to Stages of Development Gender/Age


1St Generation Entrepreneur Male/Female
Modern Entrepreneur( No History , Background, by own Young/Old
Classical Entrepreneur ( Explore and exploit)
Unit 2:-
Unit II: Creating and Starting the Venture
• Sources of new Ideas,
• Methods of generating ideas,
• creating problem solving,
• Product planning and development process.

Power of Imagination
Which factors help you to create the power of Imagination?
• Intense Desire
• Relentless Focus
• Flawless Execution

Let’s Dream, and Learn to Compete


Let’s Compete and Learn to Achieve
Let’s Achieve and Learn to Lead……..

What is an Opportunity?
The success of efforts provides us with an understanding of how to transform the
Problem of the poor to the opportunity of a Mass Market

Opportunity Martix:-
Project Identification:-
Concern with collection, compilation and analysis of economic data for the eventual
purpose of locating possible opportunities for investment and with the development of
characteristics of such opportunity.

Additive, complementary and breakthrough

Sources of Information
• Pure Observation
• Trade and Professional Magazine
• Latest development in his own field of specialization
• Horizontal or Vertically linked development
• Technical and Professional Literature
• Research Bulletin

Choosing an Idea
• Good For Market
• Good for Project
• Profitable, Viable and Socially Good
• Manageable without much dependence on others

Source and Suggestion can come from:-


• Customers
• Competitions
• R&D
• Company Employee
Business Ideas can be Generated through Internal and External Sources:-

Internal Sources refers to the Storehouse of Knowledge built by a person over the Years.
• Analysis of concepts in the light of existing problem and their solution
• Search from memory to identity similarities and elements related to the concept
• Recombining the available elements in new and better ways
• Personal interests an hobbies of the individual
• Thinking on Novel Use of Existing Product
• Conceiving improvement in existing Products
• Knowledge of the potential customer Needs

External Sources
• List of Items reserved by Government for exclusive production in small sector
• Professional Journals, Trade Journals
• Success Stories of Friends and Relatives
• Trade Fairs and Exhibitions Displaying new Products
• Government agencies like SIDO, NSIC etc
• Market Survey to now trends in fashion
• Technical and management Consultants
• Project Profile from Various Industries

Generating Business Ideas or Opportunities is also known as “ Opportunity Scanning and


Identification” (OSI).
After Generating Idea it is necessary to evaluate them so as to identify the most
appropriate Idea/ Opportunity. This is Called “Zeroing in Process”
Example – form Product category
• Market Potential
• Degree of Competition
• An Innovative idea which has greater profit than an existing product
• Availability of Raw Material and Technology
• Resources and Experience in the line
• Government Policies and Regulation
• Suitability of the Product to market requirement

Entrepreneurial Environment

Political Economical Social Technological Legal Cultural


Political Competition and
Atmosphere Policies Consumer Risk Rules Structure
Quality of Aspirations and
Leadership Labor Labor Efficiency Regulation Value
Trade Attitudes Productivity
Tariffs Opinions Profitability
Incentive Motives
Subsidies

The Adoption Process:-


• Awareness
• Interest
• Evaluation
• Trial
• Adoption

Criteria for selecting a Particular Project


• Investment Size
• Location
• Technology
• Equipment
• Marketing

Analysis of Opportunity and how one can contribute?


Fit with Your Skills and Experience
Fit with the Market
Fit with the Enterprise
What to do when your idea is rejected?
Product Planning and Development Process
There are seven Steps:-
1. New Product Ideas:- 1/60 Commercially Viable Idea
2. Idea Screening:- Promising and Profitable ideas are picked
3. Concept development and Testing
4. Business Analysis:- Market Potential, Capital Investment, ROI etc. It’s a
combination of Marketing Research, Cost Analysis and Assessment of
Competition
5. Product Development Programme: Paper idea needs to be converted in to
Physical Form. It’s a three step process
a. Prototype Development- Visual Image to the Product
b. Consumer testing of the Prototype
c. Branding, Packaging and Labeling
6. Test Marketing- done to know the following issues
a. Is the new product labeled and packaged properly
b. Is the new product liked by the consumer
c. Is the firm justified spending a large sum
d. Has the communication program is right
e. Many more which co wants to analyze
7. Commercialization

UPCOMING Areas
• Healthcare
• Environment
• Education
• Communication
• Artificial Intelligence

Methods of Finding a New Idea.

Even with a wide variety of sources available, coming up with an idea as the basis for a
new venture can still be a difficult problem. The entrepreneur can use several methods to
help generate and test new ideas including focus groups, brainstorming and problem
inventory analysis

. The following are some of the key methods to help generate end test new ideas:

1. Focus Groups – these are the groups of individuals providing information in a


structural format. A moderator leads a group of people through an open, in-depth
discussion rather than simply asking questions to solicit participant response. Such
groups form comments in open-end in-depth discussions for a new product area that can
result in market success. In addition to generating new ideas, the focus group is an
excellent source for initially screening ideas and concept.
2. Brainstorming – it is a group method for obtaining new ideas and solutions. It is based
on the fact that people can be stimulated to greater creativity by meeting with others and
participating in organized group experiences. The characteristics of this method are
keeping criticism away; free wheeling of idea, high quantity of ideas, combinations and
improvements of ideas. Such type of session should be fun with no scope for domination
and inhibition. Brainstorming has a greater probability of success when the effort focuses
on specific product or market area.

3. Problem inventory analysis– it is a method for obtaining new ideas and solutions by
focusing on problems. This analysis uses individuals in a manner that is analogous to
focus groups to generate new product areas. However, instead of generating new ideas,
the consumers are provided with list of problems and then asked to have discussion over
it and it ultimately results in an entirely new product idea. The entrepreneur is not limited
by only the three methods presented in this article.

There are other creative problem solving methods and techniques that are also available

Six Thinking Hats Dr. Edward de Bono

Six distinct states are identified and assigned a color:

• Questions (White) - considering purely what information is available, what are the
facts?
• Emotions (Red) - instinctive gut reaction or statements of emotional feeling (but
not any justification)
• Bad points judgment (Black) - logic applied to identifying flaws or barriers,
seeking mismatch
• Good points judgment (Yellow) - logic applied to identifying benefits, seeking
harmony
• Creativity (Green) - statements of provocation and investigation, seeing where a
thought goes
• Thinking (Blue) - thinking about thinking
Types of hat

White hat – Facts & Information

Red hat – Feelings & Emotions

Black hat – Critical Judgment

Yellow hat – Positive

Green hat – New Ideas

Blue hat – The Big Picture

Initial Ideas - Blue, White, Green, Blue

Choosing between alternatives - Blue, White, (Green), Yellow, Black, Red, Blue

Identifying Solutions - Blue, White, Black, Green, Blue

Quick Feedback - Blue, Black, Green, Blue

Strategic Planning - Blue, Yellow, Black, White, Blue, Green, Blue

Process Improvement - Blue, White, White (Other peoples views), Yellow, Black, Green,
Red, Blue

Solving Problems - Blue, White, Green, Red, Yellow, Black, Green, Blue

Performance Review - Blue, Red, White, Yellow, Black, Green, Red, Blue