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ENTREPRENEURSHIP MANAGEMENT
From-
Asst. Prof. Parul Bhagat
SAS Institute of Management

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DEFINITION

Entrepreneurship is defined as the act of starting and running your own business or
a tendency to be creative and wish to work for yourself in your own ventures. An
example of entrepreneurship is a person who is running his own business.

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WHO IS AN ENTREPRENEUR?

An entrepreneur is an individual who creates a new business, bearing most of the

risks and enjoying most of the rewards. The process of setting up a business is
known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a
source of new ideas, goods, services, and business/or procedures.

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WHAT IS AN ENTERPRISE?

Enterprise is another word for a for-profit business or company, but it is most often
associated with entrepreneurial ventures. ... Sole proprietorship – A company run by
a single individual, typically for their benefit, with unlimited liability for any damages
that occur as a result of the business' operations.

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FEW FAMOUS ENTREPRENEUR

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Dilip Shanghvi Ghanshyam Das Birla

Sun Pharmaceuticals Birla Group

Mark Zuckerberg
Facebook

Nagavara Ramarao
Narayana Murthy
Jamsetji Nusserwanji Infosys
Tata
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NATURE OF ENTREPRENEURSHIP

• Creation Of Enterprise
• Economic Activity
• Innovation And Creativity
• Risk Bearing
• Profit
• Gap Filling
• Organizing Function

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ADVANTAGES OF ENTREPRENEURSHIP

• Personal Freedom
• Personal Satisfaction
• Increased self- esteem
• Increased Income
• Set own work schedule
• Make own decisions
• Financial Rewards

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DISADVANTAGES OF ENTREPRENEURSHIP
• Less Glory
• Owners often kooks with suspicion
• Cost of experiments are not always honored
• Profit go to the company
• No prompt recognition, incentives and promotions
• Discredit for failures

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DEVELOPMENT OF AN ENTREPRENEUR

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ENTREPRENEURSHIP
DEVELOPMENT
Entrepreneurship Development Programmes
Entrepreneurship development programme may be defined as a programme
designed to help a person in strengthening his entrepreneurial motive, and in
acquiring skills and capabilities necessary for playing his entrepreneurial role
effectively.
Entrepreneurship development programme is designed to identify person who have
entrepreneurial spirits and capabilities. These programmes provide immense
information to the potential entrepreneurial regarding new business ideas, how to set-
up a new venture, how to prepare project report, how to fulfill legal formalities,
sources of raising finance etc.
A programme which seeks to do all this shall qualify to be called an entrepreneurship
development programme.

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OBJECTIVES

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NEED OF EDP
• Balance Regional Development
• Increase national Income
• Bringing changes in Structure of Business society
• Better standard of living
• New Product, New Services, New business
• Creating Innovation
• Enhancing Welfare Amenities

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PROBLEMS FACED BY
ENTREPRENEURSHIP DEVELOPMENT
PROGRAMMES
• No specific policy at national level
• Non availability of infrastructural facilities
• Duration of Entrepreneurship development programmes
• Lack of commitment
• Selection of wrong trainees
• Improper methodology
• Luke warm attitude of financial institutions
• Less availability of competent staff

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INSTITUTIONS SET UP BY CENTRAL

GOVERNMENT
• Sido(small industries development organizatio)
• MDI(Management Development Institute)
• EDPII (Entrepreneurship development institute of India)
• SSIB( small scale industries board)
• NISIET( National institute of small industries extension training)

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WOMEN ENTREPRENEURS

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Women Entrepreneur It may be defined as a woman or group of women who initiate,

organise and run a business enterprise.

Government of India has defined women entrepreneurs as owning and controlling an

enterprise with a woman having a minimum financial interest of 51% of the capital and
giving atleast 51% of the employment generated in the enterprise to women.

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RUMA DEVI

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QUALITIES OF WOMEN
ENTREPRENEURS
Accept
Ambitious Hard work Patience
challenges

Motivator Conscious Educated

Adventurous

Intelligent

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PROBLEMS OF WOMEN
ENTREPRENEURS
General problems

Problem of raw material

Problem of finance

Infrastructure problem

Marketing problem

Stiff competition

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CONTN….

Entrepreneur Male dominated society

Low risk taking ability

Lack of business information

Lack of education

Family problems

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REMEDIES TO SOLVE THE

PROBLEMS
• Finance cells
• Marketing co-opratives
• Supply of raw material
• Education and awareness
• Training facility

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STEPS TAKEN BY GOVT.

• Mahila Vikas Nidhi
• District industries centre
• Rashtriya Mahila Kosh
• Training Programs

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DALIT ENTREPRENEURS

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RAJA NAYAK

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SOCIAL ENTREPRENEURSHIP

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SOCIAL ENTREPRENEURSHIP
• Social Entrepreneurship is the process of recognizing and resourcefully pursuing
opportunities to create social value.
• Social Entrepreneurship is the use of techniques by start up companies and other
entrepreneurs to develop, fund and implement solutions to social, cultural or
environmental issues.
• Spectrum of Entrepreneurship : It draws best of both worlds – Not For Profit as well
as For Profit Not For Profit For Profit

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WHO IS SOCIAL
ENTREPRENEUR?
• Social Entrepreneurs are individuals with innovative solutions to Society’s most
pressing problems. They are ambitious and persistent, tackling major social issues
and offering new ideas for wide-scale change.
• Social Entrepreneur is a person who establishes an enterprise with the aim of
solving social problems or effecting social change.

Examples of Social Entrepreneurs: Acharya Vinoba Bhave (India) Land Gift

Movement Muhammad Yunus (Bangladesh) Grameen Bank Dr. Maria Montessori
(Italy) Chidhood Educaction approach

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FUNCTIONS OF SOCIAL
ENTREPRENEURS
• To address social issues inadequately addressed by Government
• To provide urgent but sustainable solutions to the most difficult social problems
• To create long term systems & frameworks for NGOs, CSR & Philanthropy etc.
• Bring professionalism & innovation in Social Sector.

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ANSHU GUPTA
GOONJ

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JEROO BILLMORIA

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DIFFERENCE BETWEEN MANAGER

AND ENTREPRENEUR…

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CREATIVITY, INNOVATION AND

ENTREPRENEURS

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Creativity + Innovation = Entrepreneurs

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WHAT IS CREATIVITY?
Ability to come up with new ideas and to identify new and different ways of looking at
a problem and opportunities.
A process of assembling ideas by recombining elements already known but wrongly
assumed to be unrelated to each other.

This definition has several key elements that are worth considering:
• Process: Creativity is also a process (implying, among other things, that it is more
like a skill than an attitude, and that you can get better at it with practice).
• Ideas: Creativity results in ideas that have potential value.
• Recombining: The creative process is one of putting things together in unexpected
ways.

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WHAT IS INNOVATION?
Innovation is the implementation of new ideas at the individual, group or organizational level.
A process of intentional change made to create value by meeting opportunity and seeking
advantage.
• Process: Innovation is a process (implying, among other things, that it can be learned and
managed).
• Intentional: That process is carried out on purpose. • Change: It results in some kind of
change.
• Value: The whole point of the change is to create value in our economy, society and/or
individual lives.
• Opportunity: Entrepreneurial individuals enable tomorrow's value creation by exploring for it
today: having ideas, turning ideas into marketable insights and seeking ways to
meet opportunities.
• Advantage: At the same time, they also create value by exploiting the opportunities they have
at hand.
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TYPES OF INNOVATIONS
There are four distinct types of innovation, these are as follows:

• Invention - Described as the creation of a new product, service or process. Something that
has not been tried before.
• Extension - The expansion of an existing product, service or process. This would mean that
the entrepreneur takes an existing idea and applies it differently.
• Duplication - Copying (replicating) an existing product or service and then adding the
entrepreneurs own creative touch. In order to improve it.
• Synthesis - A combination of more than one existing products or services in to a new
product. or service. This means that several different ideas are combined in to
one new product or service.

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CREATIVITY, INNOVATION AND

ENTREPRENEURS
Creativity is thinking new things, and innovation is doing new things.

Creativity is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.

Innovation is the ability to apply creative solutions to those problems and

opportunities in order to enhance people’s lives or to enrich society.

Entrepreneurs = Creativity + Innovation

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• Entrepreneurship is the result of a disciplined, systematic process of applying

creativity and innovation to needs and opportunities in the marketplace.

• Entrepreneurs are those who marry their creative ideas with the purposeful action
and structure of a business. Researchers believe that entrepreneurs succeed by
thinking and doing new things or old things in new ways.

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QUICK-START ROUTES TO ESTABLISH A

BUSINESS
• Franchising
• Ancillarising
• Acquisition
• Merger

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FRANCHISING

A franchise (or franchising) is a method of distributing products or services involving

a franchisor, who establishes the brand's trademark or trade name and a business
system, and a franchisee, who pays a royalty and often an initial fee for the right to do
business under the franchisor's name and system.

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PROS OF FRANCHISING
• Probability of success Proven line of business
• Pre-qualification of franchisee
• Overall lower failure rates
• Operating benefits
• Location feasibility study
• Marketing assistance
• Quick start-up time
• Training Franchisor- provided Financial assistance Loans & loan guarantees

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ANCILLARISING

• An ancillary unit is defined as an Industrial undertaking having investment in fixed

assets, in plant & machinery whether held on ownership or on hire purchase not
exceeding Rs. 100 crore & engaged in: Manufacturer of parts & components, sub-
assemblies, tooling or intermediates.

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PROS OF ANCILLARISING

• Cost reduction
• Higher quality
• Higher productivity and efficiency
• Technology transfer
• Risk mitigation

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MERGER

A merger is an agreement that unites two existing companies into one new
company. There are several types of mergers and also several reasons why companies
complete mergers. Mergers and acquisitions are commonly done to expand a company's
reach, expand into new segments, or gain market share.

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ADVANTAGES OF MERGERS
• International competition
• Greater investment in R&D
• Greater Efficiency
• Economies of scale
technical economies
bulk buying
financial
organisational

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ACQUISITIONS

An acquisition is when one company purchases most or all of another company's

shares to gain control of that company. ... Acquisitions, which are very common in
business, may occur with the target company's approval, or in spite of its disapproval.

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ADVANTAGES OF ACQUISITION
• Reduce cost and over heads
• Combining organization cultures
• Excite the shareholders
• Gain experience and assets
• Assets acquisition

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ROLE OF SUPPORT ORGANISATIONS

FOR AN ENTREPRENEUR
• Financial assistance
• Technical assistance
• Promotional activities
• Marketing assistance

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LEGAL FRAMEWORK FOR STARTING A

BUSINESS IN INDIA
• Additional Legal Requirements for some businesses:
• Permits, Certifications or Licenses:
• an official document giving someone authorization to run their business under the extension of
the direction of the Local, State and Federal Laws.
• Contracts:
• a written or spoken agreement, especially one concerning employment, sales, or tenancy,
that is intended to be enforceable by law.
• Zoning Laws:
• specify the areas in which residential, industrial, recreational or commercial activities may take
place.
• Taxes:
• a enforced contribution of funds to state revenue, levied by the government on workers'
income and business profits or added to the cost of some goods, services, and transactions

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BUSINESS IN INDIA
Types of business Entities
• Sole Proprietorship
• Partnership
• Joint stock company
• Cooperative organisation

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THE MAKE IN INDIA CAMPAIGN, THE

DIGITAL INDIA CAMPAIGN AND THE
OPPORTUNITIES FOR START UPS IN
INDIA

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DIGITAL INDIA

Digital India is a campaign launched by the Government of India to ensure that

Government services are made available to citizens electronically by improved online
infrastructure and by increasing Internet connectivity or by making the country digitally
empowered in the field of technology.

• It was launched on 2 July 2015 by Prime Minister Narendra Modi. The initiative
includes plans to connect rural areas with high-speed internet networks

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VISION OF DIGITAL INDIA

Empowerment

Governance

Infrastructure

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BENEFITS OF DIGITAL INDIA

• Reducing paper work It will help in decreasing documentation and reducing paper
work.
• Cashless Transaction Digital india mission us away for cashless transaction.
• Expansion It can help small businesses. People can use online tools to
expand their business.
• Growth in GDP It can play a key role in GDP growth.
• Reducing Corruption E-Governance will help in reducing corruption and getting things
done quickly.
• More transparency There would be more transparency as all the data would be made
online and would be accessible to citizens of the country.

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NINE PILLARS

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MAKE IN INDIA

A type of Swadeshi movement covering 25 sectors of the economy, was launched by

the Prime Minister of India Mr. Narendra Modi on 25 September 2014 to encourage
companies to manufacture their products in India and enthuse with dedicated
investments into manufacturing.

As a strategy it is the road map to respond to glocal (global + local) challenges

through preparations for a World class manufacturing status & knowledge
infrastructure that should create further knowledge for stepping on to global
competitiveness.

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WHY MAKE IN INDIA?

Ultimate objective is to make India a renowned manufacturing hub for key sectors. • Companies
across the globe would be invited to make investment and set up factories and expand their
facilities in India.

Using India’s highly talented and skilled manpower to create world class zero defect products.

The purpose of Make in India Campaign-

1. Job Creation
2. Economic Development
3. Global Recognition

Mission of Campaign:-
“Manufacture in India and sell the products worldwide.”
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THE SECTORS THAT ARE PART OF THE 'MAKE

IN INDIA' INITIATIVE ARE:

• Automobiles.
• Automobile components.
• Aviation.
• Biotechnology.
• Chemicals.
• Construction.
• Defence manufacturing.
• Electrical Machinery.

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HOW THIS WOULD BE ACHIEVED?

Skill development programs would be launched especially for people from rural and poor ones
from urban cities.

25 key sectors have been short listed such as telecommunications, power, automobile, tourism,
pharmaceuticals and others.

Individuals aged 15-35 years would get high quality training in the following key areas such as
welding, masonries, painting, nursing to help elder people.

Skill certifications would be given to make training process, a standard. Currently manufacturing in
India suffers due to low productivity rigid laws and poor infrastructure resulting in low quality
products getting manufactured.

Over 1000 training centres would be opened across India in the next 2 years.

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NEW INITIATIVES
Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online
on 24×7 basis through eBiz portal.

Validity of Industrial license extended to three years.

Major components of Defence products’ list excluded from industrial licensing.
Dual use items having military as well as civilian applications deregulated.

Services of all Central Govt. Departments & Ministries will be integrated with the eBiz – a single
window IT platform for services by 31 Dec. 2014.

Process of obtaining environmental clearances made online.

All returns should be filed on-line through a unified form.
A check-list of required compliances should be placed on Ministry’s/Department’s web portal.

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FOREIGN DIRECT INVESTMENT

100% FDI allowed in the telecom sector.
100% FDI in single-brand retail.
FDI in commodity exchanges, stock exchanges & depositories, power exchanges, petroleum
refining by PSUs, courier services under the government route has now been brought under
the automatic route.
Removal of restriction in tea plantation sector.
FDI limit raised to 74% in credit information & 100% in asset reconstruction companies.

FDI limit of 26% in defence sector raised to 49% under Government approval route. Foreign
Portfolio Investment up to 24% permitted under automatic route. FDI beyond 49% is also
allowed on a case to case basis with the approval of Cabinet Committee on Security.

Construction, operation and maintenance of specified activities of Railway sector opened to

100% foreign direct investment under automatic route.
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LAUNCHING ENTERPRISE

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WHY DO BUSINESSES EXIST?

• To produce goods
• To distribute products To make a profit
• To provide a service

• To help others
• To meet the needs of society Not for profit / social
enterprises

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IDEA…..

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SOURCES OF BUSINESS IDEAS

• Personal experience
• Business experience
• Market research
• Eureka moment
• Brain storming

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MARGAPKET

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LOOKING FOR A GAP IN THE

MARKET
IT is important to identify whether or not there is a gap in the market
And
Whether that gap needs filling

Sometimes there is a good reason for something not existing already!

Where might you look?
Trends in the market
Bring in an idea from abroad
Market research
Meeting a personal need

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STEPS IN LAUNCHING AN
ENTERPRISE

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REQUIREMENTS IN LAUNCHING AN
ENTERPRISE
Registration

Formalities

Clearances and permits required

Exercise

Sales tax

Ssi Exemptions

Location and Licensing

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PRODUCT IDENTIFICATION

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PRODUCT IDENTIFICATION
• Which product or service to be developed by the firm.
• Challenge is on the type of product is produced.

Product identification is a broad category of labeling that includes

functions such as product traceability, brand protection, and various information
labels. With a rapidly changing business environment and constant threats from theft
and counterfeit products, product identification labeling is critical.

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PRODUCT IDENTIFICATION

Product identification

Various lables
Traceability

Brand protection

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CRITERIA OF PRODUCT SELECTION

Idea generation

Market evaluation

Business choice

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CRITERIA FOR PRODUCT

IDENTIFICATION

Technical Availability Financial Position of

knowledge of market strength competition

Priority of Seasonal Restriction of Supply of

products stability imports raw material

Availability
Ancillary Location Government
of incentive
Products advantages policies
and subsidy
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BUSINESS PLAN
• Research, research, research,,,..
• Determine the purpose of your plan
• Create a company profile
• Document all aspects of your business
• Have a strategic mrkt plan in place
• Make it adaptable based on your customer
• Explain why you care

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PEST FACTOR

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BUSINESS FINANCE

Money / credit

Purchse
Other
activities

Goods Raw material

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BASIC FUNCTION OF FINANCE

Operations

Marketing

Finance

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TYPES OF VC’S
• Seed capital
• Startup capital
• Early stage capital
• Expansion capital
• Late stage capital
• Bridge financing

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MANAGING EARLY GROWTH OF

BUSINESS

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