Entrepreneurship
Transcript of Entrepreneurship
INTRODUCTION
TO
ENTREPRENEURSHIP
CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
PASSIONATELY SEEK NEW OPPORTUNITIES
PURSUE OPPORTUNITIES WITH ENORMOUS DISCIPLINE
PURSUE ONLY THE BEST OPPORTUNITIES
ADAPTIVE EXECUTION
SYNERGY IN ENERGY
EntrepreneurEntrepreneur
Entre + PrendreEntre + Prendre
An entrepreneur is a person who habitually creates and innovates to build something of recognized value around perceived opportunities
Entrepreneur Process DiagramEntrepreneur Process Diagram
Motivation to make a difference
Spotting & Exploiting
Opportunities
Finding the required
resources
Using networks
extensively
Overcoming Obstacles
Controlling the
Business
Financial, Social,
Aesthetic Capital
Showing determination in the face of
adversity
Managing Risk
Entrepreneurship ProcessEntrepreneurship Process
The Idea Realizing the opportunity
Engaging the idea &
opportunity
Exploiting the opportunity
to build something of
value
The Inventor
The Opportunity Spotter The Project Champion
Napoleon's First PrincipleNapoleon's First Principle
The first principle of a The first principle of a general-in-chief is to general-in-chief is to calculate what he must calculate what he must do, to see if he has the do, to see if he has the means to surmount the means to surmount the obstacles with which obstacles with which the enemy can oppose the enemy can oppose him and, when he has him and, when he has made his decision, to do made his decision, to do everything to overcome everything to overcome themthem
Intel moved over from Memory Chips to Integrated Chips
Napoleon's Second PrincipleNapoleon's Second Principle
A plan of campaign should A plan of campaign should anticipate everything which anticipate everything which an enemy can do, and an enemy can do, and contain within itself the contain within itself the means of thwarting him. means of thwarting him. Plans of campaign may be Plans of campaign may be infinitely modified infinitely modified according to the according to the circumstances, the genius circumstances, the genius of the commander, the of the commander, the quality of the troops, and quality of the troops, and the topography of the the topography of the theater of wartheater of war
Bill Gates staved off competition from Sun Microsystems, IBM, Netscape, Linux and a host of other competitors
Napoleon's Third PrincipleNapoleon's Third Principle
Read over and over again the Read over and over again the campaigns of Alexander, campaigns of Alexander, Hannibal, Caesar, Gustavus, Hannibal, Caesar, Gustavus, Turenne, Eugene,and Frederic. Turenne, Eugene,and Frederic. Make them your models. This is Make them your models. This is the only way to become a great the only way to become a great general and to master the general and to master the secrets of the art of war. With secrets of the art of war. With your own genius enlightened by your own genius enlightened by this study, you will reject all this study, you will reject all maxims opposed to those of maxims opposed to those of these great commandersthese great commanders
Sam Walton used to regularly visit Kmart, Woolco and other retail chains and learn best practices from them
Napoleon's Fourth PrincipleNapoleon's Fourth Principle
When you have it in When you have it in contemplation to give contemplation to give battle, it is a general rule to battle, it is a general rule to collect all your strength collect all your strength and to leave none and to leave none unemployed. One battalion unemployed. One battalion sometimes decides the issue sometimes decides the issue of the dayof the day
Dhirubhai Ambani concentrated all his resources to beat the bears that tried to pull down the Reliance Stock
Napoleon's Fifth PrincipleNapoleon's Fifth Principle
The first qualification of a The first qualification of a general-in-chief is to general-in-chief is to possess a cool head, so that possess a cool head, so that things may appear to him things may appear to him in their true proportions in their true proportions and as they really areand as they really are . .
IBM Chief Lou Gerstner understood that IBM was losing money in the product business and moved over to services
Napoleon's Sixth PrincipleNapoleon's Sixth Principle
An irresolute general who An irresolute general who acts without principles and acts without principles and without plan, even though without plan, even though he lead an army he lead an army numerically superior to numerically superior to that of the enemy, almost that of the enemy, almost always finds himself always finds himself inferior to the latter on the inferior to the latter on the field of battlefield of battle
In the 60s, Kmart had 700 retail stores when Walmart had 7.Today Kmart has disappeared while Walmart is the market leader.
In the 90s, Daewoo was a fast growing company while Samsung had a shoddy doddy image. Today, Daewoo has gone bankrupt, Samsung is the market leader in consumer durables.
Napoleon's Seventh PrincipleNapoleon's Seventh Principle
The effect of discussions, The effect of discussions, making a show of talent making a show of talent and calling councils of war and calling councils of war will be what the effect of will be what the effect of those things has been in those things has been in every age: they will end in every age: they will end in the adoption of the most the adoption of the most pusillanimous or the pusillanimous or the most prudent measures, most prudent measures, which in war are almost which in war are almost uniformly the worst that uniformly the worst that can be adopted. True can be adopted. True wisdom, so far as a general wisdom, so far as a general is concerned, consists in is concerned, consists in energetic determinationenergetic determination
GE & Coca Cola weathered through all crisis in 100 years because their core competence is strong.
Infosys & Wipro survived the Dotcom Crash because of their strong resolution.
Napoleon's Eighth PrincipleNapoleon's Eighth Principle
It is exceptional and It is exceptional and difficult to find all the difficult to find all the qualities of a great qualities of a great general combined in one general combined in one man. What is most man. What is most desirable and desirable and distinguishes the distinguishes the exceptional man, is the exceptional man, is the balance of intelligence balance of intelligence and ability with and ability with
character or courage.character or courage.
Infosys & Indus League has grown because it has been set up by a team of entrepreneurs.
Napoleon's Ninth PrincipleNapoleon's Ninth Principle
Nothing is more Nothing is more important in war than important in war than unity in command. unity in command. When, therefore, you When, therefore, you are carrying on are carrying on hostilities against a hostilities against a single power only, you single power only, you should have but one should have but one army acting on one line army acting on one line and led by one and led by one commandercommander
Indiainfo could not grow as their promoters could not agree on any issue.
Rediff grew phenomenally under the command of Ajit Balakrishnan
Napoleon's Tenth PrincipleNapoleon's Tenth Principle
The camps of the same The camps of the same army should always be army should always be so placed as to be able so placed as to be able to sustain each other.to sustain each other.
When Tata Motors was in trouble, Tata Finance bailed them out and vice versa.
The problems with tringtring.com lead to the collapse at Aptech
Napoleon's Eleventh PrincipleNapoleon's Eleventh PrincipleIt is not by harangues at the It is not by harangues at the moment of engaging that moment of engaging that soldiers are rendered brave. soldiers are rendered brave. Veterans hardly listen to Veterans hardly listen to them and recruits forget them and recruits forget them at the first discharge of them at the first discharge of a cannon. If speeches and a cannon. If speeches and arguments are at any time arguments are at any time useful, it is during the course useful, it is during the course of the campaign by of the campaign by counteracting false reports counteracting false reports and causes of discontent, and causes of discontent, maintaining a proper spirit in maintaining a proper spirit in the camp, and furnishing the camp, and furnishing subjects of conversation in subjects of conversation in the bivouacs.the bivouacs. NIIT has a portal that allows the
employees to interact with each other and also at the top level
Napoleon's Twelfth PrincipleNapoleon's Twelfth Principle
You should by all means You should by all means encourage the soldiers to encourage the soldiers to continue in the service. continue in the service. This you can easily do by This you can easily do by testifying great esteem for testifying great esteem for old soldiers. The pay old soldiers. The pay should also be increased in should also be increased in proportion to the years of proportion to the years of service. There is great service. There is great injustice in giving no injustice in giving no higher pay to a veteran higher pay to a veteran than to a recruitthan to a recruit GE has grown every year
because they manage to retain the top talent.
Enterprise Creation & Development Enterprise Creation & Development
Challenge of Challenge of EntrepreneurshipEntrepreneurship
CHALLENGE OF CHALLENGE OF ENTREPRENEURSHIPENTREPRENEURSHIP
Entrepreneurship in KBEEntrepreneurship in KBE Who is the Entrepreneur?Who is the Entrepreneur? What is the Entrepreneurial Process?What is the Entrepreneurial Process? Social ResponsibilitiesSocial Responsibilities Why be an Entrepreneur?Why be an Entrepreneur? Entrepreneurial AttributesEntrepreneurial Attributes Why businesses fail?Why businesses fail? Myths of EntrepreneurshipMyths of Entrepreneurship Checklist for Aspiring EntrepreneursChecklist for Aspiring Entrepreneurs
Recommended ReadingRecommended Reading Donald F Kuratko and Richard M Hodgetts, Donald F Kuratko and Richard M Hodgetts,
ENTREPRENEURSHIP – THEORY, PROCESS ENTREPRENEURSHIP – THEORY, PROCESS AND PRACTICE, 6th Edition, 2003, Thomson AND PRACTICE, 6th Edition, 2003, Thomson South-Western, Chapters 1, 2, 3, 4 and 6.South-Western, Chapters 1, 2, 3, 4 and 6.
Jeffry A Timmons and Stephen Spinelli, NEW Jeffry A Timmons and Stephen Spinelli, NEW VENTURE CREATION – ENTREPRENEURSHIP VENTURE CREATION – ENTREPRENEURSHIP FOR THE 21ST CENTURY, 6TH Edition, 2003, FOR THE 21ST CENTURY, 6TH Edition, 2003, McGraw-Hill, Chapters 1, 2, 7, 8 and 10.McGraw-Hill, Chapters 1, 2, 7, 8 and 10.
Megginson, Byrd, Megginson - Small Business Megginson, Byrd, Megginson - Small Business Management, an entrepreneurs guidebook, 5Management, an entrepreneurs guidebook, 5 thth edition, Chapter 1edition, Chapter 1
ENTREPRENEURSHIP : ENTREPRENEURSHIP : AN EVOLVING CONCEPTAN EVOLVING CONCEPT
““Most of what you hear about entrepreneurship Most of what you hear about entrepreneurship is all wrong. It’s not magic; it’s not mysterious; is all wrong. It’s not magic; it’s not mysterious; and it has nothing to do with genes. It’s a and it has nothing to do with genes. It’s a discipline and, like any discipline, it can be discipline and, like any discipline, it can be learned.”learned.”
Peter F. DruckerPeter F. Drucker
Innovation and Innovation and EntrepreneurshipEntrepreneurship
“What does Bill Gates own ? No land, no gold, no oil, no buildings, no machines. What he does is that he controls knowledge, which makes him the wealthiest person in the world.”
Lester Thurow
KNOWLEDGE-BASED ECONOMY
The Entrepreneurial Process involves ____, ________, and _________ an opportunity by overcoming the strong forces that resist the creation of something new.
.
Entrepreneur
Resources
Opportunity
Organisation
1. Identify and evaluate the opportunity
3. Determine andattract resourcesrequired
4. Lead and manage resulting enterprise
2. Develop Business Plan
Entrepreneurial Venture vs Small Entrepreneurial Venture vs Small BusinessBusiness
Entrepreneurial Venture : __________ and Entrepreneurial Venture : __________ and ____________
Small Business : ____________ owned and Small Business : ____________ owned and operated, is not dominant in its field, and operated, is not dominant in its field, and doesn’t engage in new or innovative doesn’t engage in new or innovative practices.practices.
The Pyramid of Social ResponsibilityThe Pyramid of Social ResponsibilityThe Pyramid of Social ResponsibilityThe Pyramid of Social Responsibility
ECONOMIC ResponsibilityBe profitable
The foundation upon which all other levels rest.
LEGAL ObligationsObey the law.
Law is society’s codification of right and wrong.Play by the rules of the game.
ETHICAL ResponsibilityBe ethical.
Obligation to do what is right, just,and fair. Avoid harm.
PHILANTHROPIC Goodwill
Be a good corporate citizen.
Contribute resourcesto the community:
improve qualityof life.
““To be able to contribute to To be able to contribute to society and to help those in need society and to help those in need
to build a better life, that is the to build a better life, that is the ultimate meaning in life. I would ultimate meaning in life. I would
gladly consider this to be my life’s gladly consider this to be my life’s work.”work.”
Dr Li Ka ShingDr Li Ka Shing
Social EntrepreneurSocial Entrepreneur
A pragmatic visionary who achieves large scale, A pragmatic visionary who achieves large scale, systemic and sustainable social change through a systemic and sustainable social change through a new invention, a different approach, a more new invention, a different approach, a more rigorous application of known technologies or rigorous application of known technologies or strategies, or a combination of these. strategies, or a combination of these.
Combines the characteristics represented by Combines the characteristics represented by Richard Branson and Mother Teresa. Richard Branson and Mother Teresa.
For more info : For more info : www.schwabfound.orgwww.schwabfound.org
72%
10% 10% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Independence Satisfaction
Best things aboutowning a business
Control Others
Survey by Padgett Business Services USA Inc. (Adopted from Small Business Management, 5th edn, Megginson, Byrd, Megginson
46%
29%
63%
27%
0%
10%
20%
30%
40%
50%
60%
70%
% of very satisfied
GreatBritain
UnitedStates
Self Employed
Working for Others
Achieve Achieve ________________________
Obtain Additional Obtain Additional ______________
Help Their FamiliesHelp Their Families Provide Products Not Provide Products Not
Available ElsewhereAvailable Elsewhere
ManagersManagers
Managers of large companies tend to seek :Managers of large companies tend to seek : ________________
____________
______________
__________________
“one who shifts economic resources out of an area of lower and into an area of higher productivity and greater yield “
Peter Drucker, guru on management theory
“..human, creative act that builds something of value…pursuit of opportunity…..requires a vision and passion and commitment…..calculated risks…”
Jeffrey Timmons, author of the entrepreneurial mind
Key Elements in Entrepreneur’s BackgroundKey Elements in Entrepreneur’s Background
Bill Gates
Supportive childhood family Supportive childhood family environment.environment.
Having a father who is self-Having a father who is self-employed helps.employed helps.
Education is important.Education is important. Aged 22-45 when starting Aged 22-45 when starting
venture.venture. Work history: dissatisfied Work history: dissatisfied
with company job but has with company job but has technical knowledge.technical knowledge.
Successful EntrepreneursSuccessful Entrepreneurs
While in the Ph.D While in the Ph.D program in computer program in computer science at Stanford science at Stanford University, he met University, he met Sergey Brin and together Sergey Brin and together they developed and ran “ they developed and ran “ ? ”, which began ? ”, which began operating in 1998 and operating in 1998 and currently employing more currently employing more than 1900 employees.than 1900 employees.
•Age : 34, Net Worth : US$90 million.
•Son of Michigan State University computer science professor
•While following in his father's footsteps in academics, he became an honors graduate from the University of Michigan, where he earned a bachelor of science degree in engineering, with a concentration on computer engineering ?
Successful EntrepreneursSuccessful Entrepreneurs
Age : 45, self madeAge : 45, self made
Value of company : S$270 Value of company : S$270 mil.mil.
Adopted at birth by an Adopted at birth by an elderly woman, never elderly woman, never knew her biological knew her biological parentsparents
Hometown : Kampar, a Hometown : Kampar, a poor Malaysian mining poor Malaysian mining towntown
Worked her way through Worked her way through college and graduated college and graduated with a B.Science (Hons) with a B.Science (Hons) from NUS.from NUS.
Started company 15 Started company 15 yrs ago, at age 28, yrs ago, at age 28, with $20,000 savings.with $20,000 savings.
Nominated MP and Nominated MP and Her World Magazine Her World Magazine “Woman of the Year “Woman of the Year 2002”2002”..
?
Entrepreneurship – Theory, Process, Practice Chap 4 pg 114-121
Types of Skills Required in EntrepreneurshipTypes of Skills Required in Entrepreneurship
TechnicalTechnical Business Business ManagementManagement
PersonalPersonal
WritingWriting PlanningPlanning Inner ControlInner Control
Oral Oral CommunicationCommunication
LeadershipLeadership Risk TakingRisk Taking
Monitoring theMonitoring the
EnvironmentEnvironmentInterpersonalInterpersonal InnovativeInnovative
Using Using TechnologyTechnology
Marketing Marketing (Selling)(Selling)
Change-orientedChange-oriented
visionaryvisionary
T h e C au ses o f B u sin ess F ailu res A re M any an d C om p lex
T h e C au ses o f B u sin ess F ailu res T h e C au ses o f B u sin ess F ailu res A re M any an d C om p lexA re M any an d C om p lex
E co n o m ic , F in an ce
N eg lect
In exp erien ce
O th er
O th er
Insu ffic ien tC ap ita l
H eavy O pera tin gE xpenses
B u rden som eD ebt
Insu ffic ien tP ro fits
IndustryW eakness
Techniques taught in EntrepreneurshipTechniques taught in Entrepreneurship
Generate Generate opportunitiopportunitieses
Identify your Identify your marketmarket
Raise $$$Raise $$$
Assess Assess opportunitiopportunitieses
Entry Entry strategiesstrategies
Keep Keep business business afloatafloat
Analyse Analyse business business environmenenvironmentt
Reach your Reach your customerscustomers
Put vision Put vision on a Planon a Plan
Exit Exit StrategiesStrategies
Protect your Protect your business business ideasideas
BudgetingBudgeting
MYTHS OF MYTHS OF ENTREPRENEURSHIPENTREPRENEURSHIP
Entrepreneurs are doers, not thinkers
Entrepreneurs are _____, not made
Entrepreneurs are always inventors
Entrepreneurs are academic and social _______“Entrepreneurship, Theory, Process and Practice” Chapter 2
“Entrepreneurship, Theory, Process and Practice, Chapter 2”
MYTHS (continuation)MYTHS (continuation)
Entrepreneurs must fit the “profile”Entrepreneurs must fit the “profile” All you need is ______ to be an entrepreneurAll you need is ______ to be an entrepreneur All you need is _____ to be an entrepreneurAll you need is _____ to be an entrepreneur Ignorance is bliss for an entrepreneurIgnorance is bliss for an entrepreneur Entrepreneurs seek success but experience Entrepreneurs seek success but experience
high failure rateshigh failure rates Entrepreneurs are extreme risk takers Entrepreneurs are extreme risk takers
(gamblers)(gamblers)
Checklist for Aspiring Checklist for Aspiring EntrepreneursEntrepreneurs
Do it for passion not moneyDo it for passion not money Do something you know aboutDo something you know about Don’t give up too earlyDon’t give up too early Have a mentorHave a mentor Have appropriate fundingHave appropriate funding Be a good cash managerBe a good cash manager Build sales firstBuild sales first Don’t try to rushDon’t try to rush Be wary of bad advice or suppliersBe wary of bad advice or suppliers
SummarySummary
Entrepreneurial ProcessEntrepreneurial Process Different Entrepreneurial AttributesDifferent Entrepreneurial Attributes Causes of Business Failures Causes of Business Failures Checklist for EntrepreneursChecklist for Entrepreneurs Video Screening – The Makings of an Video Screening – The Makings of an
EntrepreneurEntrepreneur