Session 1 to 8 - Entrepreneurship & SBM - Prof Maulik Thaker

7/28/2019 Session 1 to 8 - Entrepreneurship & SBM - Prof Maulik Thaker

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Entrepreneurship & Small

Business ManagementProf. Maulik Thaker


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Scope

Who is entrepreneur? Is entrepreneur an inventor?

All commercialized ideas/items came from

entrepreneurs!

What is Entrepreneurship?


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What is an Entrepreneur?

An Entrepreneur (ahntra pra nur) is a person who organizes and

manages a business undertaking, assuming the risk for the sake ofprofit. Any person (any age) who starts and operates a business isan entrepreneur.

Our defination: Individual who leads the undertaking venture withinnovative idea or activities for sake of profit making or socialbenefit.

Our defination: Individual


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Entrepreneur who? He is a person who develops and owns his own enterprise

He is a moderate risk taker and works under uncertainty for achieving the goal.

He is innovative

He peruses the deviant pursuits

Reflects strong urge to be independent.

Persistently tries to do something better.

Dissatisfied with routine activities.

Prepared to withstand the hard life.

Determined but patient

Exhibits sense of leadership

Also exhibits sense of competitiveness

Takes personals responsibility

Oriented towards the future.

Tends to persist in the face to adversity

Convert a situation into opportune


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Academic Definition:

An Entrepreneur (ahntra

pra nur) is a personwho organizes and manages a businessundertaking, assuming the risk for the sake of

profit. Any person (any age) who starts andoperates a business is an entrepreneur.

Our Definition:

An entrepreneur is enterprise, moderate risk-taker, innovative, CEO/MD, Opportunist,

Independent, hardworking, good manager,honest, discovery of market, sake of making

profit,

An Entrepreneur who starts and/or run an enterprise

with innovative way, vision & leadership and a motiveof earning profit by taking moderate risk


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Entrepreneur vs. Inventor

Thomas Edison Vs. Albert Einstein

Great ideas are a dime a dozen.Action is what differentiates

an entrepreneur from an inventor.

Being an entrepreneur has more to do with a state of mind

than a state of employment.

Entrepreneurs spend more time on business plans than just

about anything else. But business plans are often useless,

even counterproductive; the old adage that "planning is

everything; plans are nothing

The important thing is theprocess of planning but youalso have to be willing to throw out that plan. The single

biggest advantage you have as a start-up versus an

established business is your ability to be nimble, to act, to

change. If you're beholden to your ideas or to your business

plan, you will fail.


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Type of Entrepreneurs

1. Adviser: Some entrepreneurs are

paid for giving advice, such as lawyers,accountants, and financial advisers.

2. Administrator/Organizer: Like

organizing? You can plan weddings,

oversee projects, or take care of

accounts, databases, and order

fulfilment.

3. Builders/Creators: Artists, bakers,

carpenters, and designers are

examples of entrepreneurs driven to

create something tangible where it did

not exist before. 4. Caretaker: People with a helping

personality find opportunities taking

care of people, plants or property.

5. Communicator/Trainer: If you can

transmit information or communicate in

different languages you might find

6. Entertainer/Host: If you thrive on

being with people, you may find anentrepreneurial opening in the

hospitality industry or service industries

such as hairdressing. Or you may be

an entertainer, actor, musician, or

singer.

7. Investor/Owner: If you have money

to invest you can put your capital to

work for you investing in stocks, real

estate or businesses.

8. Seller: This covers salespeople and

brokers in our purchases, from realestate to insurance to art.

9. Technologist/Engineer: If you love

figuring out computers, autos and

engines, you may want to explore

entrepreneurial opportunities in

software development, engineering ortechnolo .


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Entrepreneurship

1.

A theory of evolution of economic activities.2. A continuous process of economic development.

3. An ingredient to economic development.

4. Essentially a creative activity or an innovative

function.5. A risk taking factor which is responsible for an end

result.

6. Usually understood with reference to individual

business.7. The name given to the factor of production, which

performs the functions of enterprise.

8. Creates awareness among people about economic

activity.


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Three Aspects of Entrepreneurship

1. The identification/recognition of market opportunityand the generation of a business idea (product or

service) to address the opportunity


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2. The marshalling and commitment of resources inthe face of risk to pursue the opportunity


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3. The creation of an operating businessorganization to implement the opportunity-motivated

business idea


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Aspect of Entrepreneurship (2nd

thought)

We would first have productive entrepreneurship. This would

include those activities identified by Schumpeter with the possible

addition of a few additional types of combinations.

Then we might think ofunproductive entrepreneurship. Firms can

base their profits on a special relationship to government or a special

provision of the law that favors them. Think of "crony

capitalism." Some people term this type of activity, "rent-

seeking." You might even think of corruption as fitting in here. If the

formal institutions of a country worked well, none of these type of

activities could exist. What is also clear is that the opportunities for

unproductive entrepreneurship could pull some individuals away

from productive entrepreneurship. There is less risk.

If we can have unproductive entrepreneurship, might there not

be destructive entrepreneurship? We might even call the people

who engage in this type of entrepreneurship criminals. Is crime a

matter of passion, or just a matter of work? Think of drug dealers.


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Entrepreneurship

Some advantages You are your own boss

Enjoy the profits from you efforts

Sense of pride in your business

Flexibility in your work schedule


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Entrepreneurship

Some disadvantages Will need to put in long hours

Need money to start

Have to keep up with government rules and regulations

May have to mark hard decisions (hiring, firing, etc.)

May lose money


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What motivate entrepreneurs?


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Corporate Entrepreneurship


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Type of Entrepreneurship

1. Small BusinessEntrepreneurship

There are 5.7 million small businessesin the U.S. They make up 99.7% of all

companies and employ 50% of all non-

governmental workers. In India 41% in

Urban India are Self-Employed.

2. Scalable StartupEntrepreneurship

Unlike small businesses, scalable startups

are what Silicon Valley entrepreneurs

and their venture investors do. These

entrepreneurs start a company knowing

from day one that their vision could

change the world. They attract

investment from equally crazy financial

investors venture capitalists.

3. Large CompanyEntrepreneurship

Large companies have finite life cycles.

Most grow through sustaining

innovation, offering new products that

are variants around their core products.

Changes in customer tastes, newtechnologies, legislation, new

competitors, etc. can create pressure

for moredisruptive innovation

requiring large companies to create

entirely new products sold into new

customers in new markets. Existingcompanies do this by either acquiring

innovative companies or attempting to

build a disruptive product inside.

Ironically, large company size and

culture make disruptive innovation

extremely difficult to execute.4. Soc ialEntrepreneurship

Social entrepreneurs are innovators

who focus on creating products and

services that solve social needs and

problems.


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Next session

1-F SCOPE OFENTERPRENEURSHIP Robert,Michele &DeanPage: 1 -57

5%2-S Corporate entrepreneurship

3-S

Individual

entrepreneurship: Part time,

small and medium ventures4-W Profile of an individualentrepreneur: Aptitude,skills, and knowledge set

White paper:History's 10 greatestentrepreneursAssignment: What ittakes to be asuccessfulentrepreneur? (1)

Robert,Michele &DeanPage: 58 -

73

10%5-F6-S Entrepreneurial mindset:Creativity and innovation-S

8-WProfile of every individualstudents in terms ofentrepreneurial traits


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Entrepreneurial mindset: Creativity

and innovation

The Creative Process has six phases1. Inspiration: In which you research and generate

many ideas

2. Clarification: In which you focus on your goals

3. Evaluation: In which you review your work andlearn from it

4. Distillation: In which you decide which of your

ideas to work on

5. Incubation: In which you leave the work alone

6. Perspiration: In which you work determindedly on

your best ideas


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Entrepreneurial creativity 5 action

areas


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25 Common Characteristics of

Successful Entrepreneurs

1. Do what you enjoy: What you get out of your business in the form of

personal satisfaction, financial gain, stability and enjoyment will be the sumof what you put into your business.

2. Take what you do seriously: You cannot expect to be effective and

successful in business unless you truly believe in your business and in the

goods and services that you sell.

3. Plan everything: Planning every aspect of your home business is not only amust, but also builds habits that every home business owner should

develop, implement, and maintain. The act of business planning is so

important because it requires you to analyze each business situation,

research and compile data, and make conclusions based mainly on the

facts as revealed through the research.

4. Manage money wisely: There are two aspects to wise money management.

The money you receive from clients in exchange for your goods and services

you provide (income)

The money you spend on inventory, supplies, wages and other items

required to keep your business operating. (expenses)


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5. Ask for the sale:A home business entrepreneur must always remember that

marketing, advertising, or promotional activities are completely worthless, regardless

of how clever, expensive, or perfectly targeted they are, unless one simple thing is

accomplished--ask for the sale.

6. Remember it's all about the customer:

7. Become a shameless self-promoter (without becoming obnoxious): One of the

greatest myths about personal or business success is that eventually your business,

personal abilities, products or services will get discovered and be embraced by the

masses that will beat a path to your door to buy what you are selling. But how can this

happen if no one knows who you are, what you sell and why they should be buying?

Self-promotion is one of the most beneficial, yet most underutilized, marketing tools

that the majority of home business owners have at their immediate disposal.8. Project a positive business image:

9. Get to know your customers:

10. Level with the technology:

11. Build a top-notch business team:

12. Become known as an expert:13. Create a competitive advantage:

14. Invest in yourself: Top entrepreneurs buy and read business and marketing books,

magazines, reports, journals, newsletters, websites and industry publications, knowing

that these resources will improve their understanding of business and marketing

functions and skills. They join business associations and clubs, and they network with

other skilled business people to learn their secrets of success and help define theirown goals and objectives.


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15. Be accessible:

16. Build a rock-solid reputation:

17. Sell benefits.

18. Get involved.

19. Grab attention: Small-business owners cannot waste time, money

and energy on promotional activities aimed at building awareness

solely through long-term, repeated exposure. If you do, chances are

you will go broke long before this goal is accomplished. Instead,

every promotional activity you engage in, must put money back in

your pocket so that you can continue to grab more attention and

grow your business.

20. Master the art of negotiations.

21. Design Your workspace for success.22. Get and stay organized.

23. Take time off.

24. Limit the number of hats you wear.

25. Follow-up constantly.


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Reference:

http://www.wherecreativitygoestoschool.com

To check how creative you are!!!


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End-sem Presentation

1. Jack welch - straight from the gut

2. Icon - Steve jobs - the greatest second

3. How 11 Indians pulled off the impossible-Making

breakthrough innovation happen - Porus Munshi

4. Lee Iacocca - autobiography (Chrysler)5. Sam Walton - Made in America

Made in Japan - Akio Morita & Sony

6. Simply Fly - Caption Gopinath (Deccan)

7. Business Legends - Gita Piramal (Birla, Tata, WalchandHirachand, Kasturbhai Lalbhai)

8. Business Maharajas - Gita Piramal (Ambani, Bajaj,

Birla, Goekna, Khaitan, Bharat and Vijay Shah, Tata)

9. Richard Branson Loosing virginity [Taken]


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Due-diligence & Valuation Criteria


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Financial Risk Cycle


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When its Self-finance!!


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ISBE-B1-FC3(1)List of concepts

Branding

CBBE Model Brand Equity

Brand Positioning

Brand Strategy Making Creating a Brand!!!

POPs & PODs

BCG

BSC

Strategy Map

Continuous Process Improvement

BI Business Intelligence - Gognos

AI Artificial Intelligence

Market Opportunity Analysis

GAP Analysis

F ibili S d f L hi f N


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Feasibility Study of Launching of New

Car

Objective Statement:

Twasha To select a car which has adequate

demand to create an opportunity of sales for

achieving 20% market share (including existing

model) in a given segment within a year.

Documents

Session 1 to 8 - Entrepreneurship & SBM - Prof Maulik Thaker