entreprenuership

Entrepreneurship & Small Business Enterprises

Prof. Om PrakashCMRIMS

April 8, 2023 1Entrepreneurship

Module 1

• Entrepreneurship Perspective: – Nature and Importance of Entrepreneurship– Entrepreneurial decision making process– Role of entrepreneurship in economic development– Entrepreneurial and Intrapreneurial Mind– The Individual Entrepreneurial Dimensions– Entrepreneurship feelings, background and

characteristics, motivation, role models and support systems

– International Entrepreneurship


Module 2

• Creating and starting the new venture:– Creativity & Business Idea, Creative Problem

Solving, Product Planning & Development, Legal Issues for Entrepreneurs, Patents, Trademarks, Copyrights, Licensing, Product Safety & Liability, Insurance, Contracts, Business Plan, Using and Implementing Business Plan, Failure of Business Plan, Marketing Plan, Financial Plan, Organizational Plan, Services Venture


Module 3

• Financing, Managing, Growing & Ending the New Venture: – Sources of Capital, Risk Capital & Venture Capital,

Internal Vs External Funds, Grants, Private Placement, Bootstrap, Preparing for Launch-early management Decisions, Managing early growth, Expansion Strategy & Innovation, Going Public, Ending the Venture, Reorganizing Strategy, Turnaround, Exit Strategy, Liquidation


Module 4

• Small & Medium Enterprises: – Identifying Business Opportunity- SSI’s in India –

Nature, role and growth and problems - Institutions supporting Small Business Enterprises - Strategic Management in Small Business – Financial Management – Production Management – Marketing Management – HR Management in Small Business


Module 5

• SME's in India:– Women Entrepreneurs, Family Businesses,

Problems of SME's, Sickness & Turnaround Strategies, Government Support for SME's. Industrial Clusters, R & D in SME's, NTBF & OTBF


Books

1. Robert D. Hisrich and Michael P.Peters, ‘ENTREPRENEURSHIP’. Mcgraw-Hill

2. Entreprenuership-‘A contemprorary approach’ Donald Roratko & Richard Hodgetts

3. David Holt ‘New venture Creation’-, Prentice Hall India

4. Richard L. Hargrems, ‘Starting a business’-Heineman Publishers

5. Poornima M Charantimath, Entrepreneurship Development & Small Business Enterprises, Pearson Education


Entrepreneurship

• Process of creating something new and assuming the risks and rewards

• Innovating, Creating something new of Value• Devoting time & effort• Financial, Psychic, Social Risk• Monetary Rewards, Personal Satisfaction &

Independence


• Entrepreneurial Decision– Deciding to become an entrepreneur by leaving

present activity

• Intrapreneurship– Entrepreneurship within an organization– Eg: Tata Ace


Entrepreneurship & Economic Development

• Increased Per Capita Output & Income• Initiate & constitute change in structure of business &

society• More wealth divided to masses• Innovation-develops new products/services &

stimulates investment in new ventures• Investment-expands capacity (Supply side) & Spending

(Demand side) • Product-evolution Process-Need/Initiation/iterative

Synthesis/Development/Commercialization• Ordinary, Technological, Breakthrough InnovationApril 8, 2023 10Entrepreneurship

Entrepreneur Vs Manager

• Strategic Orientation– Perception of Opportunity having diminishing returns

• Commitment to opportunity– Quick Action & Short Time span

• Commitment of Resources– Maximize resource utilization

• Control of Resources– Rent, resources as needed basis

• Management Structure– Independence, Flat structure, Informal networks


7 Key Qualities of a Successful Entrepreneur

1. Inner Drive to Succeed– See bigger picture, Massive goals for themselves

2. Strong belief in Themselves– Strong & Assertive personality, Focused, Determined, Flamboyant

3. Search for New Ideas & Innovation– Passionate Desire to do better, improve their products/services

4. Openness to Change– If not working-Change, Up to Date with latest & ready to change

5. Competitive by Nature– Thrive on Competition, compete with other successful Businesses

6. Highly Motivated & Energetic– Always on the move, full of energy, highly motivated

7. Accept Constructive Criticism– Readjust to constructive criticism, disregard pessimism


Start-up Types

• Lifestyle firms– Privately held, Modest growth

• Foundation Companies– Created from R&D, New Business Area, Private

Investor

• High-potential Ventures– Greatest Investment interest & Publicity, Rapid

growth, Gazelles


Differences• Managers Vs Entrepreneurs Vs Intrapreneurs– Primary Motives– Time Orientation– Activity– Risk– Status– Failure & Mistakes– Decisions– Who serves– Family History– Relationship with others


Benefits of Entrepreneurship

• Opportunity to – create your own destiny– Make a difference– Reach your full potential– Reap impressive Profits– Contribute to society & be recognized– Do what U enjoy & have fun at it


Drawbacks of Entrepreneurship

• Potential drawbacks– Uncertainity of Income– Risk of losing your entire investment– Long hours & Hard work– Lower quality of life until the Business is established– High levels of stress– Complete responsibility– Discouragement


Boom in Entrepreneurship

• What’s feeding the Entrepreneurial Fire?– Entrepreneurs as Heros– Shift to Service Economy– Technological Advancements– Independent Lifestyle– E-Commerce & WWW– International Opportunities


Cultural Diversity of Entrepreneurship

– Young Entrepreneurs– Women Entrepreneurs– Minority Enterprises– Immigrant Entrepreneurs– Part-time Entrepreneurs– Home based Businesses– Family Businesses– Copreneurs– Corporate Castoffs & Dropouts


10 Mistakes of Entrepreneurs– Management mistakes -Good judgment at top

– Lack of Experience – Technical, People skills, Visualize

– Poor Financial Control– Shoestring Budget, Cash flow, debt control

– Weak Marketing – Sustained, creative, economic marketing effort

– Failure to develop a Strategic Plan– Create competitive edge

– Uncontrolled Growth– Planned & Controlled Growth

– Poor Location– Sales not availability

– Inventory Control– Stock outs, Excess, Wrong invemtory

– Incorrect Pricing– Overpriced, underpriced, competitor’s price

– Entrepreneurial Transition– Different Management styles


How should Entrepreneurs avoid Pitfalls

– Know your Business in Depth-Knowledge Sponges

– Develop Solid Business Plan– Answer crucial questions

– Manage Financial Resources– Startup Capital, Cash, Profit, growth

– Understanding Financial Statements– Mirror

– Manage People effectively– Trained & Motivated, Attract, Retain

– Keep in tune with Yourself– Time, Stress, Passion


Must Skills for Entrepreneur

• Technical Skills– Writing, Oral, Computer, Interpersonal, Listening, Organizing,

Networking, Coaching, Team Building

• Business Management Skills– Planning & Goal Setting, Decision Making, Human Relations, Marketing,

Finance, Accounting, Negotiating, Controlling, Managing Growth

• Personal Entrepreneurial Skills– Personal Discipline, Risk Taking, Innovative, Change oriented,

Persistent, Visionary


Ethics & Social Responsibility of Entrepreneurs

• Daily Stressful situations, Pressures from Society, Competitors, Community Norms

• Balance between Ethical – economic – social responsibility

• Morally correct Business Practices


Do you have the characteristics to be an entrepreneur?

1. Primary Motivation for Starting a business is:A. Money C. Be Independent E. Be FamousB. Job security D. be Powerful

2. To be successful in business, you need:A. Money C. Hard Work E. AllB. Luck D. Good Idea

3. Entrepreneurs are best as:A. Managers C. PlannersB. Venture Capitalists D. Doers


Corporate Vs Intrapreneurial Culture

• Environment of particular Organization-CC• Environment of an entrepreneurial-oriented org-IC

• Entrepreneurs are threatening Corporations• They are Smaller, aggressive, quick new products

April 8, 2023 Entrepreneurship 25

• Corporate Culture– Climate, reward conservative decision making– Risky decisions postponed/consultants hired– Many approvals make no one responsible– Not conducive for Creativity, Flexibility, Ownership &

Risk taking– Hierarchical Structure- Rigid lines of authority

• Intrapreneurship Culture– Develop Visions, Goals, Action Plans– Be rewarded, Try & experiment– Take responsibility & ownership– Flat Structure with Teamwork, Mentors, trust


Intrapreneurship Climate• Operate on frontiers of technology• New ideas, Trial & Error Encouraged• Failures allowed• Resources made available & accessible• Long time Horizon• Volunteer program• Reward system• Sponsors & Champions available• Support of Top Management


Intrapreneurial Leadership Characteristics

• Creative, Visionary & Flexible• Understands Environment• Creates management options• Encourages Teamwork, Open discussion• Builds coalition of supporters• Persists


“Band Baaja Baraat” Video Case Study1. What Business?– Why? Reasons for choosing?– Experience? – Market Survey? Feasibility Study?– Vision? Long Term Plan?

2. Differences between 2 partners– Reason for entering business, Vision– Style of Working, Strengths, Weaknesses


“Band Baaja Baraat” Video Case Study3. Marketing Skills?– Initial Contract?– Convincing Skills– Pricing? Profits?– Networking, Advertising, Sales Promotion

4. Setting up Office– Considerations– Location– Office Layout & Interiors


“Band Baaja Baraat” Video Case Study5. Support – Specialists– Vendors - Quality– Managing Vendors

6. Work life Balance– Enthusiasm, Energy Levels– Working Hours


“Band Baaja Baraat” Video Case Study7. Partnership – Advantages– Problems– Clarity in partnership, Long term View– Relationship & Partnership

8. Managing Growth– Big Leap– Organizational Changes– Egos & Problems


“Band Baaja Baraat” Video Case Study9. Finances – Profitability– Sources of Income / Expense– Distribution of Profits– Documentation


Entrepreneur Background & Characteristics

• Childhood Family Environment– Tata/Birla Vs SC/ST/OBC– Parental Support & encouragement

• Education– Communication, Finance, Marketing....

• Personal Values & Ethics• Age and Work environment• Role Models & Support Systems– Moral & Professional Support Network


Male Vs Female Entrepreneurs

• Differ in Motivation, Business Skills, Occupational background


entreprenuership

Documents

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