Entrepreneurship

ENTREPRENEURSHIP

t

Life is about

• Creating value• Taking calculated risks• Listening to your heart• Realizing your aspirations

So is …….

Entrepreneurship

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Are entrepreneurs unique?

Some defined their lives

Some changed the world

Some are still in schoolAnshul SamarAge: 13

Does homework regularlyPlays Computer gamesFights with his sister

Also an entrepreneur ……..

CEO Elementeo www.elementeo.com

Anshul invented a board game called Elementeo, to teach kids about chemistry.

http://www.elementeo.com/

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Some are in collegeMark Zuckerberg

Age: 22

Hangs out with friendsLives in a rented apartmentDrives a bicycle

Also an entrepreneur ……….

CEO Facebook www.facebook.com

http://www.facebook.com/

Some sold garbage(still became millionaire)

Tom ZsakyAge: 27

Coolest entrepreneur of the year (acc. to Inc.com)

CEO TerraCycle www.terracycle.net

makes fertilizer using worms Revenue 5 million dollar

http://www.terracycle.net/

Some started at homeJared IsaacmanAge: 23

CEO United Bank Card

Transaction processing company. Manages 45.000 clients daily

Revenue 58 million dollar

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Some save livesElizabeth HolmesAge: 21

CEO Theranos (www.theranos.com)

Deals with nanotech & micro fluids. Saves lives from adverse drug reactions

http://www.theranos.com/

Some teach at Varna Economic University

Fred WestenbergAge: 47

Nominated for Entrepreneur of the Year Harderwijk, Holland 2009

Westenberg Holding (since 1993)Main Activity: Engineering, Real Estate

BGHold (since 1998)Main Activity: IT, Real Estate

TOP INDIAN ENTREPENEURS

By-Vijay Kamboj Ph-9466500020

Lakshmi N Mittal

Lakshmi N mittal• Lakshmi N mittal:- steel tycoon lakshmi niwas mittal is the

richest indian in the world, with an estimated wealth of $25 billion. He resides in london, has his company registered in the Netherlands, but still holds an indian passport. L N Mittal left India in the mid 1970’s to start his career. He was send to Indonesia by his father to shut down the family’s ailling steel plant and sell the land. Instead, young lakshami mittal saw an opportunity and turned the plant around. Mittal acquire a 1.3 million tonne, Iscot Steel plant in Trinidad & Tobago , which was loosing $100,000 a day. One year of mittal style management and it was making profits. That move helped him to get into America. He is the chairman and chief executive officer of ArcelorMittal

http://en.wikipedia.org/wiki/Chief_executive_officer

http://en.wikipedia.org/wiki/ArcelorMittal

Lakshmi N mittal• The mexican government seeing the success that

mittal made of Iscot, asked him to take over their ailling steel plants in 1992. But it was not all the smooth. In 1994 mittal had differences with his brother and father, and went on to form his own company. The following year Mittal entered the European market, acquiring the 5 million tonne Kazakh steel plant, Karmet. In 2005 Mittal steel become the world’s largest steel maker when he took over the US’s largest steel producer-the international steel group.

Nandan Nilekani

Nandan Nilekani Nilekani

• Nandan Nilekani is the CEO and managing director of Infosys Technologies. He, along with N R Narayana Murthy and five others, co-founded India's IT jewel, Infosys. Born in Bangalore to Durga and Mohan Rao Nilekani, he graduated from the Indian Institute of Technology, Bombay. He became the chief executive officer of Infosys in March 2002. He now leads the company with Narayana Murthy having retired in August 2006. After graduation, he met Narayana Murthy, who then led Patni Computer Systems's software group, seeking a job. Murthy hired the young engineer. That was the beginning of a relationship that was to create Indian corporate history.

Nandan Nilekani

In 2006, he was awarded the Padma Bhushan by the Government of India. He is regarded by Time magazine as one of the 100 most influential people in the world in its issue of May 2006.

Azim Hashim Premji

Azim Hashim Premji• Azim Hashim Premji, the chairman of Wipro

Technologies, is one of the richest Indians. He is an icon among Indian businessmen, especially in the software industry. Born on July 24, 1945, Premji was studying Electrical Engineering at Stanford University, USA when due to the sudden demise of his father, he was called upon to handle the family business at the age of 21. Wipro was then Western Indian Vegetable Products, a small cooking oil company.

Azim Hashim Premji• Premji diversified into bakery fats, ethnic ingredient

based toiletries, hair care soaps, baby toiletries, lighting products and hydraulic cylinders. And then shifted focus from soaps to software. He transformed Wipro into one of India's most successful IT companies. Under Azim Premji's stewardship, Wipro has grown from a fledgling Rs 70 million oil company into an IT giant with a turnover of $2.4 billion and an employee strength of 57,000.

Sunil B Mittal

Sunil B Mittal

• Sunil B Mittal is chairman and managing director of Bharti group. Bharti is India's largest GSM-based mobile phone service. Son of a politician, he built his Bharti group, along with two siblings, into India's largest mobile phone operator in just ten years. Vodafone and SingTel both own stakes in recently renamed flagship Bharti Airtel. The group also has partnerships with Axa for insurance and with the Rothschild family for exporting fruits and vegetables.

Sunil B Mittal• He plans to go into retailing along with the world's la

The 49-year-old has always been a pioneer. A first generation entrepreneur, he started his first business in 1976 with a capital investment of Rs 20,000. He decided not to be a politician and set up a small bicycle business in Ludhiana. By 1979, Sunil Mittal realised that his ambitions could not be fulfilled in Ludhiana, so he moved out to Mumbai. He initially founded a number of trading concerns, and established the first company to manufacture push button telephones in India.

Kumar Mangalam Birla

Kumar Mangalam Birla• Kumar Mangalam Birla, born on June 14, 1967, is

among the richest persons in India and the eighth youngest billionaire outside India. He is chairman of the Aditya Birla Group, one of India's largest business groups. Some of the AV Birla group's companies are: Grasim, Hindalco, UltraTech Cement, Aditya Birla Nuvo and Idea Cellular. He took over as chairman of the group in 1995, at the age of 28, after the sudden demise of his father, Aditya Birla.

Kumar Mangalam Birla• When he took charge, there were doubts about his

ability to handle the giant business house, but he proved all naysayers wrong. In the 11 years that he has led the group, he has won admiration, recognition and praise for his management acumen and contribution to the industry. Under his leadership, the group has consolidated its position in existing businesses and ventured into cellular telephony, asset management, software and BPO. He is a chartered accountant and also holds an MBA from the London Business School.

Rahul Bajaj

Rahul Bajaj• Rahul Bajaj is the chairman of the Bajaj Group, which

ranks among the top 10 business houses in India. He is one of India's most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. He took over the reins of Bajaj group in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has risen from Rs 72 million to Rs 46.16 billion. The initiation of liberalisation in India posed great challenges for Bajaj Auto.

Rahul Bajaj• Liberalisation brought the threat of cheap imports

and FDI from top companies like Honda. Rahul Bajaj became famous as the head of the Bombay Club, which opposed liberalisation . The scooter sales plummeted as people were more interested in motorcycles and the rival Hero Honda was a pioneer in it. The recession and stock market collapse of 2001 hit the company hard and it was predicted that the days of Bajaj Auto were numbered. However,

Rahul Bajaj• Bajaj Auto re-invented itself, established a

world-class factory in Chakan, invested in R&D and came up with Bajaj Pulsar Motorcycle. Bajaj Pulsar is currently a leader in its segment. Recently, Rahul Bajaj was elected to Rajya Sabha from Maharashtra.

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Who is a Entrepreneur............

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INTRODUCTION

• “ An entrepreneur is one who always searches for changes , responds to it and exploits it as an opportunity” – Peter F.Drucker

• Entrepreneurship is a dynamic activity which helps the entrepreneur to bring changes in the process of production , innovations in business , new ideas and usages of resources , establishing new markets etc.

Meaning and Evolution concept of Entrpreneur

• The word Entrepreneur derived from the French verb “entrprendre” which means to undertake.

• In 16th century , the Frenchmen who organizes and led military expeditions were referred to as “entrepreneurs”

• In early 18th century French economist Richard Cantillon used the word entrepreneur to business.

Cantillon, Joseph Scumpter, Peter Drucker

• According to Joseph Schumpeter “An entrepreneur in an advanced economy is an individual who introduces something new in the economy a method of production not yet tested by experience in the branch of manufacture concerned, a product with which consumers are not yet familiar , a new source of raw materials or of new markets and the life”.

• Cantillon defined entrepreneur as “The agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future”.

• “An entrepreneurship is the person who bears risk, unites various factors of production , to explore the perceived opportunities in order to evoke demand, create wealth and employment”

According to Joseph Schumpter Functions of an Entrepreneur

• Introduction of new product• Introduction of new methods of production• Development of new markets and finding

fresh sources of raw materials and• Making changes

Characteristics of entrepreneur:• Action oriented , highly motivated and ready to

take risk at all levels to achieve the goal.• Should have unwavering determination and

commitment.• Creativeness and result oriented , hard working• Accepts the responsibility with enthusiasm• Self confident , dedicated and self disciplined• Both thinker and doer, planner and worker• Future vision , intelligent , imaginative and self

directed

Qualities of an entrepreneur• Success and achievement• Risk bearer• Opportunity explorer• Planner• Stress taker• Facing uncertainties• Independent• Flexible• Self confident• Motivator

Functions of an EntrepreneurPRIMARY FUNCTION OTHER FUNCTION FUNCTIONS IMPORTANT

FOR DEVELOPING THE COUNTRIES

1.planning 1. Diversification of Production

Management of scarce resources

2.Organising 2. Expansion of the enterprise

Dealing with public

3.Decision Making 3.Maintaining co-ordial employer and employee relations

Engineering

4.Management 4. Talking labour problems 4. New product Development

5. Innovation 5. Co-Ordination with outside agencies

5. Parallel opportunities

6. Risk bearing , Leading , Controlling

6. Marketing , Management , Customer relation

Types Of Entrepreneur

• According to the type of businessi.) Business entrepreneurii.) Trading entrepreneuriii.) Industrial entrepreneuriv.) Corporate entrepreneurv.) Agricultural entrepreneurVi.) Retail entrepreneurvii.) Service entrepreneur

(b) According to the use of technology

• Technical Entrepreneur or non technical entrepreneur

• Professional entrepreneur

• Low tech or high tech entrepreneur

(c)According to Motivation

• Pure entrepreneur• Induced entrepreneur• Motivated entrepreneur• Spontaneous entrepreneur

(d) According to growth

• Growth entrepreneur• Super growth entrepreneur

(e) According to the stages of development• First Generation entrepreneurs• Modern entrepreneur• Classical entrepreneurs

(f)According to the area

• Urban entrepreneur• Rural Entrepreneur

(g) According to age and gender• Young entrepreneur• Old entrepreneur• Male entrepreneur• Female entrepreneur

(h) According to the Scale of Operation

• Small scale entrepreneurship• Medium scale entrepreneurship• Large scale entrepreneurship

(i) Other Type

• Professional and non professional entrepreneur

• Modern entrepreneur• Traditional entrepreneur• Skilled and non – skilled entrepreneur• Forced entrepreneur• Inherited entrepreneur• National or International entrepreneur. etc

Intrapreneur

• Intrapreneurship is the entrepreneurship with in an existing business structure.

• It is used to bridge the gap between science and market place.• Existing business will have financial resources , necessary skills

to carry out business , the marketing and distribution system to commercialise the innovation.

• But many times in bureacratic structure , due to the focus on short – term profits and a highly structured organization , prevent creativity and development of new products

Elements of intrapreneurship

• New business venturing• Innovations• Self – renewal• Proactiveness

Brief comparison of intrapreneurs, entrepreneurs and managers

Point Intrapreneur Entrepreneur Manager

1. Goal Management

Independent ,innovative new ideas

Independent , starts new venture and leads direct involvement

Delegates and supervises more than direct involvement

2. status Not concerned about traditional status , but wants recognition.

Not concerned about status

Concerned about status symbol

3. Risk Owns moderate risk Bears all the risk and uncertainty

Does not bear any risk

4. Rewards Gets fixed rewards for his work. Many gets for his innovations

Since there is risk , he may get profit or loss depending his innovations

Work for salary for his service which is fixed and definite

5. Innovative Innovative Very innovative Need not be innovative. He manages the ideas of top management

6. Decision Making Moderate , limited to his work.

Very much involved in decision making

Delegates the decision of top management

Characteristics of entrepreneurship

• Innovation• Risk-taking• Skillful management• Organisation • Decision Making• Making the enterprise a success

• Early period• Middle ages• 17th century• 18th and 19th Century• 20th century

Development of Entrepreneurship

• The development of entrepreneurship started in the olden days.

• Ancient people invented wheel, fire by robbing stores , spears to hunt animals , new ways and means of cultivation etc.

• Then came the era of boats and ships opening the doors of trade at far places. The invention of steam engine revolutionized sea and land transportation

• Colt who invented fire power for weapons, whitney who invented ‘gin’ which revolutionized spinning of cotton and Morse’s telegraph that changed the life of communication.

• During 20th century foundation of modern industry was laid . America became the leading industrial country. American steel industry was founded by Andrew corregie ,Henry Ford started automobiles in a very big way.

• Contemporary period of entrepreneurship began with innovators such as Mc Cosmic ,who revolutionized mechanical reaper in agriculture ,Alexander Graham Bell who invented telephone , thomas alva Edison who invented electric bulb, Gillet who invented safety razor etc.

STAGES IN ENTREPRENEURIAL PROCESS

• Identification of an opportunity• Evaluation of the opportunity• Preparation of the business plan• Determination and organizing the resources• Management of the enterprise

Role of Entrepreneur in Economic Development

• Innovation plays very important role in economic growth both in developing new products or services and stimulating idea of investment in new venture.

• Entrepreneur bridges the gap between science and the market place , creating new enterprises and brings new products and services into the market.

• Those activities of an entrepreneur significantly effect the economy of an area by building economic base and providing jobs.

Entrepreneurship in India

• It started as family business known to be around 1850s with the starting of cotton mill in Bombay.

• From then on ,entrepreneurship had grown in all directions from cotton mill to manufacture , to services , electronic goods , health care , exports and imports , information technology, education , transport , space technology etc.

Past:• The following points are noteworthy with respect to the

entrepreneurship in the(i.) Manufacture and supply of a product was based on demand.

The traders used to book orders from the required people and get them from the producer.

(ii) All the members of the family were involved in the business from planning to manufacture stage and finally selling them.

(iii) The industrial activity was controlled by the cast system. For example , weavers used to weave cloths , goldsmiths used to make ornaments , formers used to produce food products etc.

(iv) The skill of any enterprise was inherited from ancestors.(v) The trade activity was dependent on caste system

Present:• There is tremendous growth of industries and services

over last 50-60 years.• Banking ,automobiles , software development ,

petrochemicals, cement, steel , communication etc are some of major modern entrepreneurship areas, where lot of innovations had taken place.

• Some of the highly talented entrepreneurs of india are : G.D.Birla , J.R.D Tata , Aditya Birla , Godrej , Jamnalal Bajaj , Wadia, Hindujas , Azim Prem ji of wipro , Narayan Murthy of Infosys, dhirubai ambani of Reliance , Karanbhai Patel of Nirma etc.

Barriers of Entrepreneurship(i.) Lack of Capital(ii.) Lack of technical knowledge(iii.) Economic Business cycles(iv.) Non-availability of raw materials and

resources.(V) Government regulations(VI)Obsolescence of technology or idea(VII) Unstable and unpredictable market(VIII)Globalisation and entry of foreign goods(IX)Risk

Top 10 Women Entrepreneur of India

Mallika SrinivasanPosition: Director TAFE (Tractor and

Farm Equipment)

For more detail: http://explore10.blogspot.in/2014/01/top-10-women-entrepreneur-of-india.html

10

http://explore10.blogspot.in/2014/01/top-10-women-entrepreneur-of-india.html

Priya PaulPosition: Chair Person, Appejay Park

Hotels


9


Sulajja Firodia Motwani

Position: JMD, Kinetic Motors


8


Neelam DhawanPosition: MD, HP-India


7


Simone TataPosition: Chair Person, Trent Limited


6


Indu JainPosition: Founder President: The Ladies

wing of FICCI and Chair Person: The Bharatiya Jnanpith Trust


5


Chanda KocharPosition: MD and CEO: ICICI Bank


4


Kiran Mazumdar Shaw

Position: CMD, Biocon


3


Naina Lal KidwaiPosition: Country Head, HSBC Bank


2


Indra NooyiPosition: Chairman and CFO: PepsiCo.


1


Women Entrepreneurs• Women Entrepreneur may be defined as “a women or group of

women who initiate , organize and run a business enterprise”• Government of India has defined women entrepreneur as "An

enterprise owned and controlled by a woman having minimum financial participation of 51% of the capital and giving at 51% of employment generated in the in the enterprise to women”

• As an entrepreneur, a women has to perform all the functions involved in establishing an enterprise. These include idea generation and screening , determination of objectives , project preparation ,product analysis, completion of promotional formalities, raising funds , procuring man power and other resources and operation of business.

Functions of women entrepreneur(i.) Exploration of the prospects of starting a new

business.(ii.) Pool up the resources(iii.) Establish the industrial enterprise(iv.) Manage the business(v) Development of strategies(vi) To assume risk and uncertainty(vii) To develop business and business decision(viii) Motivation(ix) Supervision and Leadership

Problems of women entrepreneurs

(i) Problem of finance(ii) Lack of education(iii) Limited mobility(iv) Family ties(v) Scarcity of raw materials(vi) Stiff competition(vii)Low –risk bearing capacity(viii)Social problems(ix) Male domination

Steps to be taken to develop women entrepreneurship

• Though government is giving lot of support through institutions like National Bank for Agriculture and Rural Development (NABARD). Non- Government Organisations (NGO’s), Nationalised banks, the issue of women entrepreneurship is not improved

The following steps may be taken to develop/improve women entrepreneurship.

(i) Provide basic education and establish special institutions to train women entrepreneurs.

(ii) Conduct special workshops to women for better awareness

(iii) Liberal financial support to motivate women entrepreneurs

(iv) Favourable credit policies to women

(v) provide better marketing help to women entrepreneurs

(vi) Establish self –help Groups (SHGs) , Voluntary agencies and social welfare organizations for women entrepreneurs

(vii) Provide concessions to women entrepreneurs

Entrepreneurship Development Programme(EDP)

• EDP Focuses on identifying entrepreneurship qualities of an individual , providing required training , Preparing related project reports , Preparing the entrepreneurs to manage finance , production ,technology marketing and infrastructure facilities.

Objectives of EDP

(i) To develop and Strengthen their entrepreneurial quality(ii) To analyse environmental set up relating to small

industry and small business.(iii) To select product.(iv) To formulate project report for a product.(v) To know the good and bad in becoming entrepreneur(vi) To appreciate the need of entrepreneurship(vii) To understand the process and procedures and

formalities involved in setting up enterprise.

(viii) To give the knowledge of source of help , concessions and help available for starting a small-scale industry.

(ix) To acquire the basic skills(x) To let the entrepreneur to set or reset the

objectives his business or service.

Entrepreneurship

Engineering

Transcript of Entrepreneurship