Entrepreneurship

Overview

What is an entrepreneur?
Characteristics of an entrepreneur
Planning to be an entrepreneur
Growth pressures, managing a
family business

What is an Entrepreneur?
An Entrepreneur takes on the risk of
starting their own enterprise or
investing in other start-ups.
Entrepreneur is an innovative person
who maximizes his profits by
following new strategies or venturing
into new products or services.

Who is an Entrepreneur............

Entrepreneurial Characteristics

Being an entrepreneur requires specific characteristics and

skills that are often achieved through education, hard work, and
planning.
Risk Taker
Businesses face risk. Entrepreneurs minimize risk through
research, planning, and skill development.
Perceptive
Entrepreneurs view problems as opportunities and challenges.
Curious
Entrepreneurs like to know how things work. They take the time
and initiative to pursue the unknown.
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Entrepreneurial Characteristics

Imaginative
Entrepreneurs are creative. They imagine solutions to problems that
encourage them to create new products and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make mistakes, receive
criticism, and deal with money, family, or stress problems. But they
still stick to their dreams of seeing the venture succeed.
Goal-setting
Entrepreneurs are motivated by the excitement of staring a new
business. Once achieved, they seek out new goals or ventures to
try.
Hardworking
Entrepreneurs need a great deal of energy to see a venture start
and succeed. Yet they are not deterred by the long hours to achieve
their goal.
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Entrepreneurial Characteristics

Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes
care of any doubts they may have.
Flexible
Entrepreneurs must be flexible in order to adapt to changing
trends, markets, technologies, rules, and economic environments.
Independent
An entrepreneurs desire for control and the ability to make
decisions often makes it difficult for them to work in a controlled
environment.

Key Personal Attributes

Entrepreneurs are Made, Not Born!

Need for Achievement
Desire for Independence
Self-Confidence/ Self-esteem
Self-Sacrifice

Questions To Keep In Mind

What are my motivations for owning a business?

Should I start or buy a business?

What and where is the market for what I want to

sell?

How much will all this cost me?

Should my company be domestic or global?

The Market???

Planning & Research essential

Extensive market surveys (family,
friends, neighbours)
Magazines and Polls offer some
information on the market

SKILLS REQUIRED

Management Skill
Marketing Management
Financial Management
Operation Management
Product Development
Technical Skill

Employee Satisfaction
Satisfaction Percentage

Employee Satisfaction
50

44

40

31

30

28

less than
50
50-999

20
1000+

10
0
less than 50

50-999

Number of Employees

1000+

Formation and Growth

Formal and legal procedures of

formation- memoranda and articles
of association
Sole proprietorship
Partnership
Private limited
Public listing
Cooperative
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Entrepreneurship: Growth Pressures

Entrepreneurial and Formal Organizations differ
in
six business dimensions:

Strategic orientation
Commitment to opportunity
Commitment to resources
Control of resources
Management structure
Compensation policy

Entrepreneurship: Managing a Family

Business
Six steps to help lead you to a successful Family Business:

Clear job responsibilities

Clear hiring criteria
Clear plan for management transition
Agreement on whether and when to sell business
Commitment to resolving conflicts quickly
Outside advisors are used to mediate conflicts.
Clarity is key. but NO GUARANTEE.

Entrepreneurship: Managing a Family

Business

Over 50% of the India Gross Domestic Product (GDP) is

generated from family business.

12% of CEOs on the Inc. 500 list describe their company

as a family business.

So, why not dream up a plan

and go into business with your
family or friends?

Advantages of a Small
Business

Greater
Opportunity to
get rich through
stock options
Feel more
important
Feel more secure
Comfort Level

Entrepreneurship is a challenging and

rewarding profession
Need to concentrate on market analysis,
financial resources, and technology
management
Cannot compete directly with the big
guys, so need to be ingenious and
innovative in all entrepreneurial
functions
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