L1 & L2 Introduction to Entrepreneurship Two broad objectives for learning the subject called as ...

ENTREPRENEURSHIP

1. To understand the anatomy of an entrepreneur

2. Building and Developing Successsful Businesses

What do you mean by Entrepreneur ( Oxford Dictionary) The person who undertakes an enterprise with chances of profit and loss Entrepreneur (Britannica ) An individual who bears the risk of operating business in the face of uncertainty about the future conditions Common Meaning One who starts his own business

Notes by Gautam Chitanis

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The word derived from .. Entrepreneur Entrepreneurship Person Process or Philosophy

Enterprise Object

Entre enter

Pre before

Neur Nerve Centre

Thus entrepreneurship can also be described as a creative and innovative response to the environment. What do you mean by Entrepreneurship It is the process of creating something different by devoting the necessary time and effort, assuming the accompanying financial social risks and receiving the resulting rewards of monetary and personal satisfaction Common Meaning Process of creating and managing a business to the desired objective Exercise .. Try creating your own definition of Entrepreneurship

My definition ..
Entrepreneurship is like raising children; it starts with a moment of enthusiasm, followed by decades of hard work

5 more Definitions of Entrepreneurship : 1. Creation of an innovative economic organization for the purpose of gain or growth under conditions of risk and uncertainty 2. Self-employment through business ownership that includes significant elements of risk, control, and reward (Coleman Foundation) 3. Organizing a business venture assuming a certain amount of risk to make a profit (Burns and Bolton) 4. Profits from bearing uncertainty and risk 5. Purposeful activity to initiate and develop a profit-oriented business

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In context to indulging into business.. Questions often asked but arent the most important 1. What can I do? What business should I start? 2. Can I get a grant? 3. What business will earn lots of money? 4. What about e-commerce? Questions often not asked but should be!! 1. Am I an entrepreneur? 2. Is there a market? 3. Can I profitably tap that market? 4. How do I get to market?

Some Interesting Facts .

Credit Cards were not invented by banks

Instant photography was not started by large camera manufacturers

Large office equipment manufacturer did not create office coping machines

Exercises given to groups, answers by next session. 2marks

Entrepreneurship in short

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Who can be an Entrepreneur? Who can take calculated risks Who has ability to work hard Who can capitalize on opportunities Who has some financial strength Who feels the need for achievement Who has desire for responsibility Who has perception of probability of success Who gets stimulation by feedback Who possess skills in organizing Who can be male or female Who may not have previous experience Characteristics of an Entrepreneur Mental ability Clear objectives Business secrecy H.R. ability Communication ability Technical knowledge

Achievement-oriented Perseverance Ethical Motivator Self-confident Long term involvement

High energy level Problem solver Initiator Goal setter Risk taker

Entrepreneurs Background and Characteristics Family environment Education Age Physical attributes Marital status Working history Family contacts Professional contacts Personal values Lifestyle Notes by Gautam Chitanis Pg 4

THE ENTREPRENEURIAL PROCESS: 9 KEY ELEMENTS

1.Moti vation to make a di fference 4.Dealing wi th Obstacles 9. Financi a l, Social & capital

2. Spotting

oppor tunities

8. Controlling the business

3. Finding The resources require d

5.Showing Deter minatio n in the face of adversity

7. Using Networks extensi vely 6.Managing risk

Assignment Study the Profile of a Successful Entrepreneur and identify six key elements in order of priority. (Source of information personal contacts & internet) Assignment to be submitted on 17th or 24th December 2009. Any chosen one would be asked to present from any group In each class two groups to take an Indian entrepreneur and three groups a Foreign National CRs of both the classes note that no two groups should take the same entrepreneur, for this take booking on first come first served basis Format for submission soft copy word document not more than 5pages, font size 11, line spacing 1.5, one inch margin on all four sides of each page (applicable to all groups) Any further questions can be asked in the next session i.e. on 10th December 2009 ( I hope u all remember Dhiraj..) All the Best !!! Advantages of entrepreneurship To an Individual Self Employment Employment for near & dear Prolonged career for next generations Freedom to use own ideas - Innovation and creativity Unlimited income / higher retained income Independence Satisfaction To the nation Provides larger employment Results in wider distribution of wealth Mobilizes local resources, skills and savings Accelerates the pace of economic development Stimulates innovation & efficiency Notes by Gautam Chitanis Pg 5

MARKS

What makes it hard to be evidence based ? You may well be trying to bring the best evidence to bear on your decisions. You follow the business press, indulge in extensive reporting, buy business books, hire consultants, and attend seminars featuring business experts. But evidence-based management is still hard to apply. Heres what youre up against. Theres too much evidence. Theres not enough good evidence. The evidence doesnt quite apply. People are trying to mislead you. You are trying to mislead yourself. The side effects outweigh the cure. Stories are more persuasive, anyway.

Companies religiously follow evidence based Marketing tactics

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Can Benchmarking Produce Evidence? Automobile companies have for decades benchmarked Toyota, the world leader in auto manufacturing. Theyve installed just-in-time inventory systems, statistical process control charts, and TQM etc. To answer ask yourself 3Qs ? ? ? 1. Are the conditions at our company strategy, business model, workforce similar enough to those at the benchmarked company to make the learning useful? Just as doctors who do neurosurgery learn mostly from other neurosurgeons, not from orthopedists, you and your company should seek to learn from relevant others. 2. Why does a given practice enhance performance? And what is the logic that links it to bottom-line results? 3. What are the downsides of implementing the practice even if it is a good idea overall? Becoming a Company of Evidence - Based Managers It is one thing to believe that organizations would perform better if leaders knew and applied the best evidence. It is another thing to put that belief into practice. The demands for decisions are relentless, information is incomplete, and even the very best executives make many mistakes and undergo constant criticism and second-guessing from people inside and outside their companies. As a leader in your organization, you can begin to nurture an evidence-based approach immediately by doing a few simple things that reflect the proper mind-set. Proper Mindset: The attitude of Wisdom If you ask for evidence of efficacy every time a change is proposed, people will sit up and take notice. If you take the time to parse the logic behind that evidence, people will become more disciplined in their own thinking. If you treat the organization like an unfinished prototype and encourage trial programs, pilot studies, and experimentation and reward learning from these activities, even when something new fails your organization will begin to develop its own evidence base.

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