Entrepreneurship and Design

Thinking
Unit_5

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This Unit will Cover :-
 Social Entrepreneurship
 Family Business
 Women Entrepreneurship

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Social Entrepreneurship

 Social entrepreneurship is an approach by start-up

companies and entrepreneurs, in which they develop, fund
and implement solutions to social, cultural, or
environmental issues.

 This concept may be applied to a wide range of

organizations, which vary in size, aims, and beliefs.

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Challenges faced by Social Entrepreneurs

 Managing diversification
 Increasing competition
 Accessing finance
 Collaboration
 Retaining social purpose

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Social Entrepreneurs In India

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1. URVASHI SAHNI

She is the founder and CEO of SHEF (Study Hall Education Foundation), an
organization dedicated to offering education to the most disadvantaged girls in India.
Urvashi Sahni has worked with over 900 schools and changed the life of 150,000
girls (directly) and 270,000 girls (indirectly) with her program.

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SANTOSH PARULEKAR

 Santosh Parulekar worked to create job opportunities for the unemployed

youth in rural India. He started ‘Pipal Tree’, a company that aims to impart
formal training to the youth and provides them with reputable jobs in
companies across the country. Operating since 2007, Pipal Tree has trained
over 1,500 workers and intends to open training centres pan India in the
coming years.

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3. Neel Mehta
Neel Mehta received his Master’s degree in Biomedical Informatics.
While assembling his team, he partnered with Robert Yao, a fellow innovator
fixated on the difficulties of diagnosing epilepsy. After observing Robert’s complex
algorithm for diagnosing patients with epilepsy, Neel and Robert took the research
and built an app, thus setting the stage for EpiFinder.
Neel and Robert are passionate about making a difference in the lives of patients
with epilepsy. To them, EpiFinder is not just a business venture, but also a way to
bring about positive change in the lives of many.

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Social Entrepreneurs

https://m.youtube.com/watch?v=CutJBcLkkao

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Family Business

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Family Business

• A family business is a commercial organization in which decision-

making is influenced by multiple generations of a family, related
by blood or marriage or adoption.

• Family business is the oldest and most common model of economic

organization.

• The vast majority of businesses throughout the world—from corner shops

to multinational publicly listed organizations with hundreds of thousands
of employees—can be considered family businesses

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Challenges Faced in Family Business
 The interests of a family member may not be aligned with the
interest of the business.
For example, if a family member wants to be president but is
not as competent as a non-family member.

 The interest of one family member may not be aligned with

another family member.

For example, a family member who is an owner may want to

sell the business to maximize their return, but a family member
who is an owner and also a manager may want to keep the
company because it represents their career and they want their
children to have the opportunity to work in the company.

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The three circles model

Owners

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 The three circles model

• A three-circles model is often used to show the three principal roles

in a family-owned or -controlled organization: Family, Ownership
and Management.
• This model shows how the roles may overlap.
• There is really only one way to maintain family harmony and
simultaneously build a great family business: establish clear
responsibilities and ensure disciplined decision-making.
• Without clarity and agreement as to who is responsible to whom
for what, and maintaining strict discipline in this respect, the long-
term future of the business will be bleak.

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The three circles model

Here’s how these three groups should be managed:

1. The family:

• Family matters are not part of the business, and the family is
not the supreme authority.
• It operates alongside the other interest groups and it should
spend its time developing family unity, eliminating conflict that
may spill over into the business, and developing family talent.
• Family discussions should take place in a formal council that
involves the wider family and meets routinely.

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The three circles model

2. The owners:

• They have the supreme authority in the business.

• These people set the vision, values and goals of the
business.
• They select the board members, and normally meet
with the board once a year at the annual general
meeting, where they receive the year-end report and
make the decisions about dividend payments.

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The three circles model

3. The management:

• This is the engine room, run by full-time managers led by the

CEO. They are responsible to the board, and report, usually
monthly, to the directors, keeping them informed on matters
affecting the future of the business.

• By keeping family and business decisions separate, business

stand a good chance of building a great, long-lasting business
that remains under the control of the family.

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 The three circles model

A few people—for example, the founder or a senior family

member—may hold all three roles: family member, owner
and employee. These individuals are intensely connected to
the family business, and concerned with any or all of the above
sources of value creation.

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Parallel planning processes

All businesses require planning, but business families face the

additional planning task of balancing family and business
demands.
There are five critical issues where the needs of the family and
the demands of the business overlap :-

 Capital How are the firm’s financial resources should be

decided ?
 Control Who has decision-making power in the family and
firm?
 Careers How are individuals selected for senior leadership and
governance positions in the firm or family?
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Parallel planning processes

 Conflict How do we prevent this natural element of

human relationships from becoming the default
pattern of interaction?

 Culture How are the family and business values

sustained and transmitted to owners, employees and
younger family members?

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Women Entrepreneurship

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Women Entrepreneurship
 Women entrepreneur may be defined as a woman or
group of women who initiate, organize, and run a business
enterprise.

 Accordingly, the Government of India has defined women

entrepreneur as “an enterprise owned and controlled by
a women having a minimum financial interest of 51 per
cent of the capital and giving at least 51 per cent of the
employment generated in the enterprise to women.”

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Challenges in Women Entrepreneurship

1. Problem of Finance
2. Limited Mobility
3. Family Ties
4. Lack of Education
5. Male-Dominated Society
6. Low Risk-Bearing Ability

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Most Successful Women Entrepreneurs in
India ( 2019)
1.Vandana Luthra – Founder of VLCC
2.Suchi Mukherjee – Founder & CEO of Limeroad
3.Falguni Nayar - Founder & CEO of Nykaa
4.Vani Kola - Founder & Managing Director of Kalaari
Capital( “ The Mother of Venture Capitalism in India”)
5. Pranshu Patni - Co-founder of Culture Alley (Hello
English)
6. Upasana Taku - Co-founder of Mobikwik

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