Post on 09-Jul-2018
Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
MODULE 7 Skills Associated With Entrepreneurship
ENTREPRENEURIAL
Technical Skills
• Specific Operation Technology
• Communication
• Interpersonal relations
• Organizational ability
• Coordinating Team members
• Environmental Observation
BUSINESS MANAGEMENTSKILLS
SKILLS TECHNICAL SKILLS
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Management Skills
• Planning
• Formulating Goals
• Decision-making
• Motivating
• Marketing
• Accounting
• Negotiation Entrepreneurial Skills
• Inner Discipline
• Risk-seeking
• Innovation
• Change-orientation
• Persistency
• Visionary
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Entrepreneur Vs. Administrator
Opportunity
Commitment
Control
Personal
OPPORTUNITY ADMINISTRATOR ENTREPRENEUR
Crave for Unique
functioning
Action orientation
Risk management
Revolutionary
Short decision windows
Recognize Multiple
groups
Negotiation
Risk reduction
Evolutionary
Long decision windows
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Commitment
Control Entrepreneur Administrator
Administrator Entrepreneur
Knowledge of Lack of predictable resource needs
resource needs Target long-term
Lack of long-term performance control
Single stage Multistage functioning functioning Minimal exposure at Complete
concentration
Risk of Power, status and
financial rewards obsolescence recognized
Coordination Minimal dependency Efficiency in matching
resource life to requirements
Long resource life matched with short term need
Inertia Inflexibility
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Personal Entrepreneur Administrator
Informal communication
Formal communication Preference for simple
business structures Defined authority and responsibility
Preference of known people Specific organizational
culture
Entrepreneurial Personality
Entrepreneurial Personality
Sociological
Characteristics Psychological Characteristics
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Psychological Characteristics
• Highly confident
• Risk Taker
• Motivated reasoning
• Thirsting for the right answer
• Thinking logically
• Being practical Psychological Characteristics
• Inconsistency in Planning
• Blend with the environment
• Cognitive dissonance - Ability to comprehend chaos
• Lateral thinking - Thinking may not be supported rationally Entrepreneurial Influences
• Antecedent influences - the social environment they find themselves in
• The culture of the society- certain cultures encourage entrepreneurial activity, others may discourage it
• The situations they find themselves in such as employment
Antecedent Influences On The Entrepreneur
• Well-educated
• Young or Middle Aged
• Leaves managerial job to start business
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
• Willing to share ownership of business
• Starts business because of positive motivations Societal Influences
• Family business
• Proactive culture
• Social interactions are many
• Fostering independence
• Society is flexible
• Supportive relationships
• Encouragement of achievement and responsibility Situational Influences
• Monetary status
• Childhood environment
• Relationship with parents
• Work environment
• Level / quality of education
• Encounter with a role model Success And Failure Factors
• Hard Work • Perseverance • Motivation
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
• Social Skills • Leadership • Good Management • Integrity • Guts • Good Health • Common Sense
• Luck • Support of Family • Clear Initial Goals • Creativity • Ability to Accept Uncertainty
Intrapreneurship Imbibing a spirit of entrepreneurship within an existing organization as
an employee is called intrapreneurship
Intrapreneurial Culture
• Develop and emphasize on organizational vision, goals and
action plans.
• Rewards for suggestions, experimentation, and fruitful actions.
• Freedom to venture beyond a specific function / area.
• Encouraging responsibility and ownership
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Environment Conducive To Intrapreneurship
• Encouragement of new ideas
• Encouragement of experimentation
• Acceptance of failure
• Providing ample opportunities
• Interdisciplinary approach
• Long term planning
• Encouragement of voluntary activities Environment Conducive To Intrapreneurship
• Rewards in tune with intrapreneurial characteristics
• Moral and professional support systems
• Encouragement of creative activities
• Team work dominated by discussions and openness. Characteristics Of Intrapreneurs
• Independent
• Direct involvement and less of delegation
• Ability to coordinate with team
• Respect for hierarchy
• May not openly encourage risky projects
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Male Vs. Female Entrepreneurs
• The characteristics of male and female entrepreneurs seem to be very
similar
• The backgrounds of male and female entrepreneurs also have been found
to be similar
• However, certain subtle differences in motivation, types of ventures
started etc., have been identified.
Men & Women Entrepreneurs – Motivation
• Achievement –Strive to make things happen
• Personal independence- self-image as it relates to status through their
role in the corporation is unimportant
• Job satisfaction arising from the desire to be in control
• Achievement-accomplishment Independence of a goal Independence - to
do it alone
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Men & Women Entrepreneurs- Reasons For Entering Into Entrepreneurship
• Dissatisfaction with present job
• Sideline in college, sideline to present job, or outgrowth of present job
• Discharge or layoff Opportunity for acquisition
• Job frustration
• Interest in and recognition of opportunity in the area
• Change in personal circumstances
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Men & Women Entrepreneurs-Sources Of Funds
• Personal asset and savings
• Bank financing
• Investors Loans from friends and family
• Personal assets and savings
• Personal loans
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Men & Women Entrepreneurs – Occupational Background
• Experience in line of work
• Recognized specialist or one who has gained a high level of achievement in the field
• Competent in a variety business functions
• Experience in area of business
• Middle-management or administrative-level experience in the field
• Service-related occupational background
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Men & Women Entrepreneurs – Personality
• Optionalated and persuasive
• Goal oriented • Innovative and idealistic
• High Level of self-confidence
• Enthusiastic and energetic
• Must be own boss
• Flexible and tolerant • Goal oriented • Creative and realistic • Medium level of self-confidence Enthusiastic and energetic • Ability to deal with the social and economic environment
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Women Entrepreneurs - Background
n business or
al arts
• Age when starting venture 25-35 Father was self-employed •• College-education-degree i Technical area •
First born child •
• Age when starting venture-:35-45 Father was self-employed •
Col1ege educated-degree in liber•
• First-born child
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Men & Women Entrepreneurs – Support Groups
•
• Close friends
Friends, professional acquaintances (lawyers, accountants) •
• usiness associates B
pouse S
• Spouse
• Family Women's professional groups
• Trade associations
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Management Science II Dr.T.J.Kamalanabhan
Indian Institute of Technology Madras
Men & Women Entrepreneurs – Types Of Business entures Started
onstructor
ducational services, • Consulting or public relation
V
• Manufacturing or C
• Service – related - e
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