IMPORTANCE OF ENTERPRENEURS FIRST LECTURE • Entepreneur Entrepreneurship Enterprise
• Person Process or Action Outcome
• Business man having an idea to start a new business • Knowledge skill, ability, hard work, through which he generate employment ,revenue for society and for himself • Enterprise ids the resultant factor of his efforts Meaning • The ability to bear risk of establishing a new enterprise ,its direction, controlling, bring changes and innovation , creativity , taking corrective action , can be called an entrepreneurship. • Definitions • Entrepreneurship is the combination of three basic elements • Invention • Innovation • adaptation • Entrepreneurship can be defined as creative and innovative response to the environment CHARACTERISTICS OF ENTERPRENEURSHIP 1. ABILITY TO INNOVATE 2. ECONOMIC ACTIVITY 3. RISK BEARING CAPACITY 4. IN SEARCH OF OPPURTUNITIES 5. ORGANIZATION CREATION 6. RESULTS OF HIGH ACHIVEMENTS 7. BASED ON PRINCIPLE NOT ON INTUITION 8. PROFESSIONAL ACTIVITY 9. RESULTS OF CHANGES 10. ENTREPRENEURSHIP IS THE BEHAVIOR NOT A PERSONLITY TRAIT 11. ESSENTIAL IN ALL TYPES OF BUSINESS 12. IT IS GLOBAL PHENOMENA 13. INDEPENDENT LIFE STYLE IMPORTANCE OF ENTREPRENEURSHIP
1. BASIS OF ECONOMIC DEVELOPMENT
2. HELPS IN ESTABLISHING NEW ENTERPRISE 3. CONTRIBUTE AND DEVELOPING AND EXPANSION OF EXSISTING ENTERPRISES 4. HELPS IN DEVELOPING NEW PRODUCTS AND TECHNIQUES 5. OPPURTUNITY TO EXPLOIT FULL HUMAN POTENTIAL 6. CREATION OF EMPLOYMENT OPPURTUNITIES 7. PROMOTES CAPITAL FORMATION 8. BALANCED ECONOMIC DEVELOPMENT 9. HELPS IN EXECUTION OF GOVERNMENTAL POLICIES AND PLANS 10. HELPS IN SOCIAL CHANGE 11. ENCOURAGE RESEARCH AND INVESTIGATION INTRAPRENEURSHIP • Definition: An Intrapreneurship is the system wherein the principles of entrepreneurship are practiced within the boundaries of the firm. An intrapreneur is a person who takes on the responsibility to innovate new ideas, products and processes or any new invention within the organization. • An intrapreneur is the individual who thinks out of the box and possesses the leadership skills and does not fear from risk. Thus, an intrapreneur possesses the same traits as that of an entrepreneur. • The concept of an Intrapreneurship can be well understood in contrast to the entrepreneurship. Following are the points of distinction between these two terms: • Intrapreneurship is restorative in nature, i.e. an organization encourages the employees to practice the entrepreneurial principles to counter stagnation within the firm or transform the slow growth of the company into a high-growth. Whereas the entrepreneurship is developmental in nature, i.e. an individual creates something that has never existed before, such as a new product, process or a new venture itself. • In intrapreneurship, the major challenge that individual faces are from the company’s culture itself. Sometimes, the corporate relationships and the mindsets of employees acts as a hurdle in the path of an intrapreneur. Whereas, in the case of entrepreneurship, the market is the only enemy. An entrepreneur has to scrutinize the market conditions thoroughly to cross the hurdles coming in his way. • An intrapreneur has an access to firm’s resources such as funds, manufacturing setups, marketing facilities, and other supporting activities to give shape to his dreams. Whereas an entrepreneur has to arrange his own resources such as own funds or the borrowed funds, manufacturing facilities, marketing facilities, etc. • An intrapreneur does not have the ownership of a new venture and is not even independent to take decisions, whereas an entrepreneur is the whole sole owner of the new venture established by him. Also, he is independent to take any decisions with respect to his setup. • Entrepreneurs • Managers • Motive: To start a venture by • To render his services in an setting up an enterprise enterprise already set by someone else • Status: Owner of the enterprise • Servant in the enterpriseo risk involve in the enterprise • Risk Bearing Take on risk in • No risk involve in the enterprise the running enterprise • Fixed salary • Rewards Unpredictable profit • Simply executing the plan • Innovation Thinks over what prepared by entrepreneurs to do i-e change agents • Entrepreneurial Process • Definition: The Entrepreneur is a change agent that acts as an industrialist and undertakes the risk associated with forming the business for commercial use. An entrepreneur has an unusual foresight to identify the potential demand for the goods and services. • The entrepreneurship is a continuous process that needs to be followed by an entrepreneur to plan and launch the new ventures more efficiently. • Discovery: An entrepreneurial process begins with the idea generation, wherein the entrepreneur identifies and evaluates the business opportunities. The identification and the evaluation of opportunities is a difficult task; an entrepreneur seeks inputs from all the persons including employees, consumers, channel partners, technical people, etc. to reach to an optimum business opportunity. Once the opportunity has been decided upon, the next step is to evaluate it. • An entrepreneur can evaluate the efficiency of an opportunity by continuously asking certain questions to himself, such as, whether the opportunity is worth investing in, is it sufficiently attractive, are the proposed solutions feasible, is there any competitive advantage, what are the risk associated with it. Above all, an entrepreneur must analyze his personal skills and hobbies, whether these coincides with the entrepreneurial goals or not. • Developing a Business Plan: Once the opportunity is identified, an entrepreneur needs to create a comprehensive business plan. A business plan is critical to the success of any new venture since it acts as a benchmark and the evaluation criteria to see if the organization is moving towards its set goals. • An entrepreneur must dedicate his sufficient time towards its creation, the major components of a business plan are mission and vision statement, goals and objectives, capital requirement, a description of products and services, etc. • Resourcing: The third step in the entrepreneurial process is resourcing, wherein the entrepreneur identifies the sources from where the finance and the human resource can be arranged. Here, the entrepreneur finds the investors for its new venture and the personnel to carry out the business activities. •. • Managing the company: Once the funds are raised and the employees are hired, the next step is to initiate the business operations to achieve the set goals. First of all, an entrepreneur must decide the management structure or the hierarchy that is required to solve the operational problems when they arise. • Harvesting: The final step in the entrepreneurial process is harvesting wherein, an entrepreneur decides on the future prospects of the business, i.e. its growth and development. Here, the actual growth is compared against the planned growth and then the decision regarding the stability or the expansion of business operations is undertaken accordingly, by an entrepreneur. • The entrepreneurial process is to be followed, again and again, whenever any new venture is taken up by an entrepreneur, therefore, its an ever ending process Outline of a Business Plan • I. Introductory Page A. Name and address of business B. Name(s) and address(es) of principal(s) C. Nature of business D. Statement of financing needed E. Statement of confidentiality of report II. Executive Summary—Two to three pages summarizing the complete business plan III. Industry Analysis A. Future outlook and trends B. Analysis of competitors C. Market segmentation D. Industry and market forecasts • IV. Description of Venture A. Product(s) B. Service(s) C. Size of business D. Office equipment and personnel E. Background of entrepreneur(s) V. Production Plan A. Manufacturing process (amount subcontracted) B. Physical plant C. Machinery and equipment D. Names of suppliers of raw materials VI. Operations Plan A. Description of company’s operation B. Flow of orders for goods and/or services C. Technology utilization • VII. Marketing Plan A. Pricing B. Distribution C. Promotion D. Product forecasts E. Controls VIII. Organizational Plan A. Form of ownership B. Identification of partners or principal shareholders C. Authority of principals D. Management team background E. Roles and responsibilities of members of organization • IX. Assessment of Risk A. Evaluate weakness(es) of business B. New technologies C. Contingency plans X. Financial Plan A. Assumptions B. Pro forma income statement C. Cash flow projections D. Pro forma balance sheet E. Break-even analysis F. Sources and applications of funds XI. Appendix (contains backup material) A. Letters B. Market research data C. Leases or contracts D. Price lists from suppliers Critical Issues for Environmental and Industry Analysis • What are the major economic, technological, legal, and political trends on a nationals and an international level? 2. What are total industry sales over the past five years? 3. What is anticipated growth in this industry? 4. How many new firms have entered this industry in the past three years? 5. What new products have been recently introduced in this industry? 6. Who are the nearest competitors? 7. How will your business operation be better than this? 8. Are the sales of each of your major competitors growing, declining, or steady? 9. What are the strengths and weaknesses of each of your competitors? 10. What trends are occurring in your specific market area? 11. What is the profile of your customers? 12. How does your customer profile differ from that of your competition? Describing the Venture
1What is the mission of the new venture?
2. What are your reasons for going into business? 3. Why will you be successful in this venture? 4. What development work has been completed to date? 5. What is your product(s) and/or service(s)? 6. Describe the product(s) and/or service(s), including patent, copyright, or trademark status. 7. Where will the business be located? 8. Is your building new? old? in need of renovations? (If renovation is needed, state costs.) 9. Is the building leased or owned? (State the terms.) 10. Why is this building and location right for your business? 11. What office equipment will be needed? 12. Will equipment be purchased or leased? 13. What experience do you have and/or will you need to successfully implement the business plan • Production Plan Will you be responsible for all or part of the manufacturing operation? 2. If some manufacturing is subcontracted, who will be the subcontractors? (Give names and addresses.) 3. Why were these subcontractors selected? 4. What are the costs of the subcontracted manufacturing? (Include copies of any written contracts.) 5. What will be the layout of the production process? (Illustrate steps if possible.) 6. What equipment will be needed immediately for manufacturing? 7. What raw materials will be needed for manufacturing? 8. Who are the suppliers of new materials and what are the appropriate costs? 9. What are the costs of manufacturing the product? 10. What are the future capital equipment needs of the venture? • If a Retail Operation or Service: 1. From whom will merchandise be purchased? 2. How will the inventory control system operate? 3. What are the storage needs of the venture and how will they be promoted? 4. How will the goods flow to the customer? 5. Chronologically, what are the steps involved in a business transaction? 6. What are the technology utilization requirements to service customers effectively? • Organization Structure What is the form of ownership of the organization? 2. If a partnership, who are the partners and what are the terms of agreement? 3. If incorporated, who are the principal shareholders and how much stock do they own? 4. How many shares of voting or nonvoting stock have been issued and what type? 5. Who are the members of the board of directors? (Give names, addresses, and resumes.) 6. Who has check-signing authority or control? 7. Who are the members of the management team and what are their backgrounds? 8. What are the roles and responsibilities of each member of the management team? 9. What are the salaries, bonuses, or other forms of payment for each member of the management team?
Examining The Impact of Diversity Management On Employee Engagement in Terms of The Mediating Role of Organizational Trust Among Employees at Mashhad College of Medical Sciences