Enter Pre Nu Ere Ship Dev v.1

8/2/2019 Enter Pre Nu Ere Ship Dev v.1

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Introduction To

Financial Management

Prof. Chinmaya Padhi

Entrepreneurship

Development

The

Entrepreneurship

Development

Perspective


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Who controls our business?


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Who is entrepreneur?

Some inventors have a natural talentfor business, but many more of themhave been people who liked to makeand discover things but did not knowwhat to do when they succeeded.

Capitalists may also be businessexecutives, but their specific functionis to provide the financial resourcesfor an enterprise and many arecontent to do only that.

Managers obviously are in businessbut a manager who takes over anexisting operation is usually verydifferent from a manager who startsone up.

Example: Mr. Narayan Murthy agenius at computers, applied hisknowledge to the founding of InfosysTechnologies Ltd.


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Objectives of industrialization

The greatest social tragedy in a poor country is the loss of will


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Factors affecting industrialization

Government policies.

Natural Resources Mineral resources,

Energy resources

Forest resources

Marine resources Water resources.

Natural Factors: Geographical

Climatic

Technical.

Entrepreneurship. Human Resources.

Finance and Capital.

Market and Infrastructure.


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Classification of Indian industries

Ownership basis: (i) Public sector, (ii) Private

sector

Size basis: (i) Tiny sector, (ii) Small sector, (iii)

Medium sector. (iv) Large sector

Nature of operation basis: (i) Manufacturing,

(ii) Trading, (iii) Distributic (iv) Infrastructure,

(v) Service sectors Jobs done basis: (i) Artists, (ii)Agents, (iii)

Professionals, (iv)Agriculturists, etc.


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Reason for self employment

through entrepreneurship It provides an opportunity to enterinto a process which leads to therealization of individual's passionfor innovation and development.

To find a suitable employment, onehas to knock many doors and soakmany socks and even then, onemay not succeed. But to be anentrepreneur one has to knock onlyone door, that is one's own-self andif the qualities and competenciesare there in whatever small

quantity, the prospects to succeedare there. The shocks are thereentrepreneurship too, but theycan be absorbedifone,hasdecided to be entrepreneur.


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Reason for self employment

through entrepreneurship The Government of India andthe states offers manyfacilities, incentives andschemes to help newentrepreneurs and particularly

qualified individuals, be ittechnical, managerial orotherwise in taking upentrepreneurial career.

As an entrepreneur, one is notonly employed but creates

employment for others, one isnot only realizing the goal inhis life but is also a source oflivelihood for so many.


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Emphasis on entrepreneurship in

India Entrepreneurship is not a matter of heritage, it isentirely a manifestation of such potentialities that anyindividual born in any caste, community and class canhave. There is no need for such a person to begroomed from the very childhood for becoming anentrepreneur.

Industrialization results from the interaction oftechnological change, innovation, entrepreneurial

growth, specialisation and trade. Large industrial unitsand business houses also have an important role toplay in developing and sustaining newentrepreneurship.

Inspite of India having abundant natural and humanresources, we are not a prosperous country because ofENTREPRENEURSHIPbeing still a comparativelyscarce factor, as indeed in all developing countries.

Government economic policies have an importantimpact on the growth of entrepreneurship. Among theprominent economic policies, to developentrepreneurship has been the strategy to stimulatesmall scale sectors (SSI) to use it as a tool foreconomic growth.

small units/enterprises. have made phenomenalprogress during the last five decades and today occupyan important position in the industrial economy of India.Every new Industrial Policy Resolution (IPR) aims atentrepreneurship development through small scaleindustry' sector development.


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Plan outlay for small industry

development


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Qualities and traits required to be a

successful entrepreneur Willingness to make

sacrifices

Leadership Decisiveness

Confidence in the

project

Marketing orientation

Strong ego


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Chapter 2

The Entrepreneur


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Definition

Entrepreneur is an initiator of action,

stimulator of social economic changes,

and a harnesser of resources and factors

of production to create wealth.

Entrepreneurship is neither a science nor

an art.


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Characteristics of an entrepreneur

Technicalcompetence

Initiative

Good judgment

Intelligence

Leadership

Confidence

Energy

Attitude

Creative

Fair

Honest

Tact

Emotionallystable

Motivator Long term

involvement

Persistentproblem solver

Goal setter Moderate risk

taker


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Qualities of an entrepreneur He is an enterprising individual. He is energetic, hard working,

resourceful, alert to new opportunities, able to adjust himself to changing

conditions with ease and willing to assume risks involved in change.

He is interested in advancing technologically and in improving the quality

of his product or service.

He is interested in expanding the scale of his operations by reinvesting

his earnings.

He visualizes change and adapts.

He is a firm believer in planning and systematic work.

He works for the society at large and for the good of his fellow beings.


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Entrepreneurs are born and not

made Since entrepreneurial qualities are to some extent innatei.e., inborn, hence entrepreneurs are born is partiallytrue, however all qualities entirely are not inborn, somecan be enhanced by training and some can be acquired

by experience.

Example:Analytical ability and computational skills canbe enhanced by education at school and university,while practical knowledge and foresight skills can beenhanced by experience. Technical capabilities can bedeveloped and skill can be acquired with practice,patience and perseverance.


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Interpreneur

They are entrepreneurs who catch hold of

a new idea for a product, service or

process work to bring their vision to fruition

within the framework of the organization.


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Types of entrepreneur


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The role of entrepreneur in modern

economic development The entrepreneur co-ordinates the factors of production(selection of the right type of factors, employment ofeach factor in the right quantity, use of the best technicaldevices. division of labor, reduction of waste, etc )

The entrepreneur takes risks

Finally, the entrepreneur innovates. Innovation is

different from invention. Invention the work of scientists.Innovation implies the commercial application of aninvention


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Innovation category by an

entrepreneur The introduction of a new goods or a new quality of

goods

The introduction of a new method of production

The opening of a new market

The conquest of a new source of supply of raw

materials

The carrying out of a new organization of any industry.


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Entrepreneur self check test (>7)

Do you find yourself "selling" others your own ideas?

Do you enjoy working independently?

Can you handle a lot of things at the same time?

Do you often come up with more than one solution to a problem?

Do you consider yourself smarter than your boss?

Are you willing to work long hours?

Do you have skills or interests that others admire?

Are you always willing to learn?

Are you persistent?

Do you feel that most events in your life are determined by you?


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Chapter 3

Entrepreneurial Motivation


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The basic elements of the process

of motivation


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Maslows need hierarchy theory


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McClellands acquired need theory

According to David McClelland, a person acquires three types ofneeds as a result of one': life experience. These three needs are:

Need for Affiliation These refer to needs to establish and maintainfriendly and warn' relations with others.

Need or Power These mean that one's desire to dominate and toinfluence others using physical objects and actions.

Need for Achievement This refers to one's desire to accomplishsomething with owr efforts. This implies one's will to excel in his/herefforts.

McClelland also suggests that these three needs may

simultaneously be acting on an individual. But, in case of anentrepreneur, the high need for achievement is found as thedominating one.


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Motivating Factors

Internal Factors External Factors

Desire to do

something new Educational

background

Occupational

background orexperience.

Government

assistance andsupport

Availability of labor

and raw material

Encouragement frombig business houses

Promising demand

for the product.


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Factors which prompted new entrepreneurs

to enter into entrepreneurship (survey

results)


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Thank You

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