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ENTREPRENEURSHIP Emerging Opportunities & Challenges DR. M. A. ZAHIR CHAIRMAN, SYNETIC BUSINESS SCHOOL, LUDHIANA ENTREPRENEURSHIP ENTREPRENEURSHIP AND SELF EMPLOYMENT  VERY IMPORTANT : INDIA’S ADVANTAGE  Industrialization, Economic Development and Entrepreneurship go together  TO BE DISCUSSED IN RIGHT PERSPECTIVE INDIA’S SOCIO-ECONOMIC SCENARIO: 4 ASPECTS  GROWTH: 7-9% (5.5% on an average for next 4 decades…..)  FULL EMPLOYMENT: Quite a large number through SELF-EMPLOYMENT and Entrepreneurship – throughout the value chain: Suppliers, Logistics, Distribution, Trading, Services……  RISING MIDDLE CLASS: With disposable income – New Needs, New demands, New Markets…..  DEMOGRAPHIC FEATURES (POPULATION): 70% 35 years or less. Required : Education & Skill Developments ENTREPRENEURSHIP & BUSINESS DEVELOPMENT SMEs & ENTREPRENEURSHIP GO TOGETHER THERE ARE 5 ASPECTS:  RISK: There is no such thing as risk less strategy or business. RISK – RETURNS…Achievement Motivation  CAPITAL : FINANCE SIZE OF OPERATIONS….  TECHNOLOGY : Latest OR Appropriate Conti… ENTREPRENEURSHIP & BUSINESS DEVELOPMENT: 4. MANAGEMENT:  Planning & Control  Cost  Product Development  Marketing  Working Capital Management. Conti… ENTREPRENEURSHIP & BUSINESS DEVELOPMENT 5. INNOVATION : An Idea Economy “Entrepreneurship is essentially a creative activity” ….Joseph A. Schumpeter  Something New & Different [Research & Development]  Recombination; New Linkages  Examples: Condensed Milk, Neva Quilt, Nirma, Noodles (Maggi), Sachet (Affordability) Conti… ENTREPRENEURSHIP & BUSINESS DEVELOPMENT: INNOVATION  ENTRY BARRIERS  Patent or IPR  Complex Technology / Know-how  Large Investment  Secret Formula / Process  Branding GROWTH VECTOR  DIRECTION OF GROWTH : 1. Market Penetration 2. Product Development 3. Market Development 4. Diversification Concentric Conglomerate BLUE OCEAN STRATEGY [W. ChanKim & Renee Mauborgne] “….Creating Uncontested Market Space and Making the Competition Irrelevant: - Eg. NANO CAR  New Emerging Segments/ Needs  Niche Market : High End/ Low End  Bottom of the Pyramid – Opportunities  Outsourcing: Leveraging Brand Equity  OEM – Ancilliarisation ENTREPRENEURSHIP & FAMILY BUSINESS  Family Values  Professionalisation  Succession Planning