Entrepreneurship & Small Business Enterprises

Prof. Om Prakash CMRIMS

March 19, 2011

Entrepreneurship

1

Module 1
‡ Entrepreneurship Perspective:
Nature and Importance of Entrepreneurship Entrepreneurial decision making process Role of entrepreneurship in economic development Entrepreneurial and Intrapreneurial Mind The Individual Entrepreneurial Dimensions Entrepreneurship feelings, background and characteristics, motivation, role models and support systems ± International Entrepreneurship
± ± ± ± ± ±
March 19, 2011 Entrepreneurship 2

Module 2
‡ Creating and starting the new venture:
± Creativity & Business Idea, Creative Problem Solving, Product Planning & Development, Legal Issues for Entrepreneurs, Patents, Trademarks, Copyrights, Licensing, Product Safety & Liability, Insurance, Contracts, Business Plan, Using and Implementing Business Plan, Failure of Business Plan, Marketing Plan, Financial Plan, Organizational Plan, Services Venture
March 19, 2011 Entrepreneurship 3

2011 Entrepreneurship 4 . Liquidation March 19. Grants. Risk Capital & Venture Capital. Bootstrap. Reorganizing Strategy. Internal Vs External Funds. Managing. Private Placement. Growing & Ending the New Venture: ± Sources of Capital. Expansion Strategy & Innovation. Ending the Venture. Exit Strategy.Module 3 ‡ Financing. Managing early growth. Going Public. Preparing for Launch-early management Decisions. Turnaround.

Strategic Management in Small Business Financial Management Production Management Marketing Management HR Management in Small Business March 19.Module 4 ‡ Small & Medium Enterprises: ± Identifying Business Opportunity. role and growth and problems Institutions supporting Small Business Enterprises . 2011 Entrepreneurship 5 .SSI s in India Nature.

R & D in SME's. Government Support for SME's. Industrial Clusters. 2011 Entrepreneurship 6 .Module 5 ‡ SME's in India: ± Women Entrepreneurs. Problems of SME's. Sickness & Turnaround Strategies. Family Businesses. NTBF & OTBF March 19.

Entrepreneurship Development & Small Business Enterprises.Peters. David Holt New venture Creation -.Books 1. Hargrems. Pearson Education March 19. Poornima M Charantimath. Mcgraw-Hill 2. Richard L. Prentice Hall India 4. Hisrich and Michael P. Starting a business Heineman Publishers 5. Robert D. 2011 Entrepreneurship 7 . Entreprenuership. ENTREPRENEURSHIP .A contemprorary approach Donald Roratko & Richard Hodgetts 3.

2011 Entrepreneurship 8 . Creating something new of Value ‡ Devoting time & effort ‡ Financial. Social Risk ‡ Monetary Rewards.Entrepreneurship ‡ Process of creating something new and assuming the risks and rewards ‡ Innovating. Psychic. Personal Satisfaction & Independence March 19.

‡ Entrepreneurial Decision ± Deciding to become an entrepreneur by leaving present activity ‡ Intrapreneurship ± Entrepreneurship within an organization ± Eg: Tata Ace March 19. 2011 Entrepreneurship 9 .

Technological. Breakthrough Innovation March 19. 2011 Entrepreneurship 10 .Entrepreneurship & Economic Development ‡ Increased Per Capita Output & Income ‡ Initiate & constitute change in structure of business & society ‡ More wealth divided to masses ‡ Innovation-develops new products/services & stimulates investment in new ventures ‡ Investment-expands capacity (Supply side) & Spending (Demand side) ‡ Product-evolution Process-Need/Initiation/iterative Synthesis/Development/Commercialization ‡ Ordinary.

Flat structure. Informal networks March 19. resources as needed basis ‡ Management Structure ± Independence.Entrepreneur Vs Manager ‡ Strategic Orientation ± Perception of Opportunity having diminishing returns ‡ Commitment to opportunity ± Quick Action & Short Time span ‡ Commitment of Resources ± Maximize resource utilization ‡ Control of Resources ± Rent. 2011 Entrepreneurship 11 .

Focused. full of energy. improve their products/services 4. highly motivated 7. Up to Date with latest & ready to change 5. Search for New Ideas & Innovation ± Passionate Desire to do better.7 Key Qualities of a Successful Entrepreneur 1. Competitive by Nature ± Thrive on Competition. Openness to Change ± If not working-Change. Highly Motivated & Energetic ± Always on the move. 2011 Readjust to constructive criticism. Inner Drive to Succeed ± See bigger picture. Determined. compete with other successful Businesses 6. Accept Constructive Criticism ± March 19. Massive goals for themselves 2. Flamboyant 3. disregard pessimism Entrepreneurship 12 . Strong belief in Themselves ± Strong & Assertive personality.

New Business Area. 2011 Entrepreneurship 13 . Modest growth ‡ Foundation Companies ± Created from R&D. Rapid growth. Gazelles March 19. Private Investor ‡ High-potential Ventures ± Greatest Investment interest & Publicity.Start-up Types ‡ Lifestyle firms ± Privately held.

2011 .Differences ‡ Managers Vs Entrepreneurs Vs Intrapreneurs ± ± ± ± ± ± ± ± ± ± Primary Motives Time Orientation Activity Risk Status Failure & Mistakes Decisions Who serves Family History Relationship with others Entrepreneurship 14 March 19.

Benefits of Entrepreneurship ‡ Opportunity to ± create your own destiny ± Make a difference ± Reach your full potential ± Reap impressive Profits ± Contribute to society & be recognized ± Do what U enjoy & have fun at it March 19. 2011 Entrepreneurship 15 .

Drawbacks of Entrepreneurship ‡ Potential drawbacks ± Uncertainity of Income ± Risk of losing your entire investment ± Long hours & Hard work ± Lower quality of life until the Business is established ± High levels of stress ± Complete responsibility ± Discouragement March 19. 2011 Entrepreneurship 16 .

Boom in Entrepreneurship ‡ What s feeding the Entrepreneurial Fire? ± Entrepreneurs as Heros ± Shift to Service Economy ± Technological Advancements ± Independent Lifestyle ± E-Commerce & WWW ± International Opportunities March 19. 2011 Entrepreneurship 17 .

2011 Entrepreneurship 18 .Cultural Diversity of Entrepreneurship ± Young Entrepreneurs ± Women Entrepreneurs ± Minority Enterprises ± Immigrant Entrepreneurs ± Part-time Entrepreneurs ± Home based Businesses ± Family Businesses ± Copreneurs ± Corporate Castoffs & Dropouts March 19.

economic marketing effort ± Failure to develop a Strategic Plan Create competitive edge ± Uncontrolled Growth Planned & Controlled Growth ± Poor Location Sales not availability ± Inventory Control Stock outs. 2011 Entrepreneurship 19 . underpriced. People skills. Visualize ± Poor Financial Control Shoestring Budget. Cash flow. creative. Wrong invemtory ± Incorrect Pricing Overpriced. competitor s price ± Entrepreneurial Transition Different Management styles March 19.10 Mistakes of Entrepreneurs ± Management mistakes -Good judgment at top ± Lack of Experience Technical. debt control ± Weak Marketing Sustained. Excess.

Cash. Retain ± Keep in tune with Yourself Time. Passion March 19. growth ± Understanding Financial Statements Mirror ± Manage People effectively Trained & Motivated. Stress. Profit. 2011 Entrepreneurship 20 .How should Entrepreneurs avoid Pitfalls ± Know your Business in Depth-Knowledge Sponges ± Develop Solid Business Plan Answer crucial questions ± Manage Financial Resources Startup Capital. Attract.

Interpersonal. Persistent. Accounting. Human Relations. Innovative.Must Skills for Entrepreneur ‡ Technical Skills ± Writing. Organizing. Computer. Decision Making. Controlling. 2011 Entrepreneurship 21 . Risk Taking. Networking. Team Building ‡ Business Management Skills ± Planning & Goal Setting. Marketing. Negotiating. Change oriented. Finance. Listening. Coaching. Oral. Visionary March 19. Managing Growth ‡ Personal Entrepreneurial Skills ± Personal Discipline.

Competitors. 2011 Entrepreneurship 22 .Ethics & Social Responsibility of Entrepreneurs ‡ Daily Stressful situations. Community Norms ‡ Balance between Ethical economic social responsibility ‡ Morally correct Business Practices March 19. Pressures from Society.

Primary Motivation for Starting a business is: A. Be Famous 2. Hard Work D. All 3. Money B. Managers C. Money C. 2011 Entrepreneurship 23 .Do you have the characteristics to be an entrepreneur? 1. Venture Capitalists D. Job security D. you need: E. To be successful in business. Luck C. Planners B. Doers March 19. Good Idea E. Be Independent B. Entrepreneurs are best as: A. be Powerful A.

Money C. Money C. Primary Motivation for Starting a business is: A. Money C. Be Famous 7. be Powerful A. Job security D. Primary Motivation for Starting a business is: E. be Powerful March 19. Be Independent B. Be Famous 24 . Be Independent B. Job security D. Job security D. 2011 Entrepreneurship E. be Powerful A. Be Famous 6. Primary Motivation for Starting a business is: E. Money C. Be Independent B. Primary Motivation for Starting a business is: E.4. Be Famous 5. be Powerful A. Job security D. Be Independent B.

quick new products March 19. 2011 Entrepreneurship 25 .Corporate Vs Intrapreneurial Culture ‡ Environment of particular Organization-CC ‡ Environment of an entrepreneurial-oriented org-IC ‡ Entrepreneurs are threatening Corporations ‡ They are Smaller. aggressive.

Ownership & Risk taking ± Hierarchical Structure. Mentors.Rigid lines of authority ‡ Intrapreneurship Culture ± Develop Visions. trust March 19. Try & experiment ± Take responsibility & ownership ± Flat Structure with Teamwork. 2011 Entrepreneurship 26 . reward conservative decision making ± Risky decisions postponed/consultants hired ± Many approvals make no one responsible ± Not conducive for Creativity. Goals. Action Plans ± Be rewarded. Flexibility.‡ Corporate Culture ± Climate.

Trial & Error Encouraged Failures allowed Resources made available & accessible Long time Horizon Volunteer program Reward system Sponsors & Champions available Support of Top Management Entrepreneurship 27 March 19. 2011 .Intrapreneurship Climate ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Operate on frontiers of technology New ideas.

2011 Entrepreneurship 28 . Open discussion Builds coalition of supporters Persists March 19.Intrapreneurial Leadership Characteristics ‡ ‡ ‡ ‡ ‡ ‡ Creative. Visionary & Flexible Understands Environment Creates management options Encourages Teamwork.

Band Baaja Baraat Video Case Study 1. Vision ± Style of Working. What Business? ± Why? Reasons for choosing? ± Experience? ± Market Survey? Feasibility Study? ± Vision? Long Term Plan? 2. Differences between 2 partners ± Reason for entering business. Strengths. 2011 Entrepreneurship 29 . Weaknesses March 19.

Band Baaja Baraat Video Case Study 3. Marketing Skills? ± Initial Contract? ± Convincing Skills ± Pricing? Profits? ± Networking. 2011 Entrepreneurship 30 . Sales Promotion 4. Advertising. Setting up Office ± Considerations ± Location ± Office Layout & Interiors March 19.

2011 Entrepreneurship 31 .Quality ± Managing Vendors 6. Support ± Specialists ± Vendors . Work life Balance ± Enthusiasm.Band Baaja Baraat Video Case Study 5. Energy Levels ± Working Hours March 19.

Long term View ± Relationship & Partnership 8. Partnership ± Advantages ± Problems ± Clarity in partnership. Managing Growth ± Big Leap ± Organizational Changes ± Egos & Problems March 19. 2011 Entrepreneurship 32 .Band Baaja Baraat Video Case Study 7.

Finances ± Profitability ± Sources of Income / Expense ± Distribution of Profits ± Documentation March 19. 2011 Entrepreneurship 33 .Band Baaja Baraat Video Case Study 9.

‡ Personal Values & Ethics ‡ Age and Work environment ‡ Role Models & Support Systems ± Moral & Professional Support Network March 19...Entrepreneur Background & Characteristics ‡ Childhood Family Environment ± Tata/Birla Vs SC/ST/OBC ± Parental Support & encouragement ‡ Education ± Communication.. Finance. 2011 Entrepreneurship 34 . Marketing.

Male Vs Female Entrepreneurs ‡ Differ in Motivation. Business Skills. Occupational background March 19. 2011 Entrepreneurship 35 .

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