Entrepreneurship

Session-4

Innovation :Engine of growth

Innovation=Conception +Tech invention+commercial exploration.

Other Traits:

Self –confidence: Ability in themselves.

Long term involvement: Long term commitment to the projects

High Level Energy: Ability to work long

Entrepreneurial Leadership: Give positive feedback for good

job. Initiate confidence in employees. Be fair and objective, not

vindictive. Practice what is preached,donot

ask for something that employees are not willing to do.

Entrepreneurial Leadership: Down to earth, person to person

approach. Be compassionate and understanding. Create an atmosphere of acceptance

and trust. Classification of priorities. Be available for discussion. Talk openly and give straight answers.

Administrative competence: The leader should understand

his /her job. Understand employees job. Utilizing peoples skill effectively. Be concerned with employees and

work flow. Get tough when necessary. Provide proper human resource for

all levels.

Entrepreneurship

It’s the process of wealth creation not wealth accumulation.

Pure entrepreneurs depend upon innovation

to set up new ventures. Follow up on promises.

Entrepreneurial Attitude:

Tendency to take moderate risk: An eye for economic

opportunity: Imaginative: Initiative: Believe,to change environment: Enjoy freedom of expression

Entrepreneurial Attitude:

Analyzing situation and planning action.

Find satisfaction from successful completion of task:

Commitment to Excellence

Understand the customer. Provide quality products and

services. Knowledge and expertise, esp.

business. Details. Continuous learning. Commit time and effort.

Innovation Management:

To recognize the importance of innovation.

Role of key individuals. Need to view innovation as a

management process.

Importance of Innovation: To survive innovation is must in

this complex world. The ability to change and adapt

is essential to survive. Its applicable in virtually all the

industries.

Study of innovation: The engine of growth. The view of Schumpeter. General overview of innovation

process.

Interactive model of innovation:

Barriers to Entrepreneurship:

Economic Barriers: Capital Labour Raw Materials

Non Economic Barriers:

Cultural Blocks: Importance of Logic: Respect for Entrepreneurship: Tradition Binding: Emotional Block:

Personal Barriers to Entrepreneurship:

Lack of sustained motivation: Difficulty with ambiguity: Inability to dream and use

subconscious: Impatience in society problem: Impatience in solving problem: Lack of clear perception:

Corporate Entrepreneurship

Concerned with innovation that leads to new corporate divisions or subsidiary ventures.

Corporate Entrepreneurship: New and different forces shaping the

global competitive landscape are: Rapid advancements and changes in

technology The changed business paradigm bought

by World Wide Web Opening of global markets And importantly, increased success of

entrepreneur ventures through out the world

Corporate Entrepreneurship:

Corporate entrepreneurship refers to “the process of creating new business within established firms to improve organizational profitability and enhance a firm's competitive position or the strategic renewal of existing business”,

Extrinsic Environment: The industry scenario competition, technological development,

customers and legal/regulatory framework

Intrinsic Environment : internal affairs; namely the management, culture, encouragement to creativity and co-sharing of profits

Corporate Entrepreneurship:

The Corporate entrepreneurship venture of any corporate is dependent on active elements of it extrinsic/intrinsic environment.

National success in entrepreneurship depends on interaction of local cultures with national policies :

Entrepreneurial Characteristics:

Need to achieve-Desire to be a winner:

Competition by itself can be misleading.

Competition directed to beat others-seed for destruction.

Competition with self-imposed standards-Internalized kind of competition.

Perseverance Quality to Stick to it:

Intense level of determination. Desire to overcome hurdles. Solve problem and complete a

job. Not obstructed by difficult

situations.

Moderate risk takes-Prefer middle of the road:

They are not high risk takers,not gamblers.

Moderate and calculated risk.

Use of feedback-Knowing how to perform:

Concerned about their performance-doing well?

How well or poor working? Feedback helps for the

corrective action to improve.

Facing uncertainty-Tolerance for ambiguity and unfamiliar situation:

Make decisions under uncertainty. Achievement oriented people tend to

optimize even under unfamiliar situation.

They see no reason why they cannot win through their abilities.

They present a picture of boldness.

Stress takers-Possess drive and energy: They have tremendous amount

of personal energy and drive. To cope up with situations and

make right decisions.

Self confidence-Faith in their abilities:

High level of self confidence. They strongly believe in their

capabilities. They are against people who are

overconfident and arrogant.

Initiator :Seeking Responsibility

Independent, Highly self reliant innovator, The champion of free enterprise

economy. They believe in their personal

effort. Takes initiative to solve problem

and fill vacuum.

Positive self concept-Aware of oneself internal locus of control:

Awareness of own strength and weakness.

Uses positive knowledge to support his thinking.

He is rarely negative. Maintains a positive correlation

between belief and hardwork.

Flexibility-Flexible in Decisions:

Weighs equally the pros and cons of a decision.

Tend to change if situation demands.

People with open mind and not rigid.

Analytical ability: Unaffected by personal likes and dislikes.

They are realistic. Specific approach for business

undertakings.

Ability to find and explore:

Quick to see opportunity. They anticipate plan and fulfill

their goals.

Entrepreneurial Network Relationships

Business Relationships: Formal and informal liaisons

with suppliers and wholesalers. Contracts or informal

relationships with subcontractors.

Existing contacts with potential customers or clients.

Business Relationships:

Potential contacts with clients or customers through networks established in prior employment.

Professional Relationships:

Formal or informal relationships with bankers,security analysts,savings and loan managers,investment managers.

Formal and informal laisons with insurance companies,venture capitalists,or private investors.

Contacts with attorneys,consulting organizations,import/export bankers.

Organizational relationships:

Relationships with previous employers and universities.

Formal ties with corporations through new venture units.

Formal or informal ties with government agencies,state agencies,local political organizations.

Social Relationships:

Membership in local,state,or national professional associations.

Membership in or attendance at trade and professional conferences.

Relationship established through local or regional social clubs,athletic clubs and social events.

Other relationships: Family relationships and

friendship networks through family ties.

Ethnic, cultural and religious affiliations.

Trade groups and union membership.

From Idea To Business: Building a business takes four

things: a product or service, a business

model, a team, and money.

A product or service Make sure that your idea fills a real

market need. You don’t always need a new

product category. Microsoft was a late entrant in window systems, spreadsheets, word processors, and presentation software. Yet they virtually own those product categories.

Business Idea :

The business idea to be selected so as to:

1.Enable entrepreneur to utilize the skills+tech+market knowledge.

2.Enable to use of locally available raw materials for product or services.

3.They make products that have demand in market.

Business Idea :

4.Enable the entrepreneur to solve a current problem existing in the market.

There are three initial factors that entrepreneurs must consider

when judging their ideas.

1. Size of opportunity: whether the opportunity is big

enough for them to get an appropriate return on their investment of time, energy, money, etc.

If the opportunity is too small, it’s probably not worth pursuing.

There are three initial factors that entrepreneurs must consider when judging their ideas.

2. Complexity of opportunity: A second question to ask is how

complex the opportunity is. How difficult will it to be to

execute on the opportunity?

There are three initial factors that entrepreneurs must consider when judging their ideas.

3. Amount of funding and resources required:

An opportunity must be judged with regards to how many resources are required to execute it.

If the amount of resources is too much, the entrepreneur may not be able to accumulate the resources and/or the return on investment will be reduced.

Sources of Business Idea:

Discussion with people. Looking through books. Visiting shops and attending

trade shows. Information from research

institutes. Brainstorming