Anda di halaman 1dari 37

Entrepreneurship and Entrepreneurs

Ravikumar M.V Mentor, AEEC

Agenda for this talk


Introduction The Entrepreneur Nature Nurture Model Basic Concepts Why few become an entrepreneur? Characteristics of Entrepreneur Successful Entrepreneurs Conclusion

Entrepreneurship An Understanding
Entrepreneurship is neither an art or science; it is a practice .Prof. Peter Drucker Entrepreneurship is a process of understanding opportunities in the environment, with respect to ones own abilities and perceived risks, with a view of creating wealth for oneself (ethically). .. Ravikumar

Entrepreneurship The Process


Environment Entrepreneurs Mind

Entrepreneurship Process

Customer Satisfaction

Market

The Entrepreneur
The Entrepreneur
The Opportunity Spotter

The Project Champion

The Idea

Exploiting Engaging Realising the the idea the Opportunity and Opportunity to build Opportunity Value

The Entrepreneur Triangle

Basic Concept of Entrepreneurship


Entrepreneurship covers mainly 3 aspects Entrepreneur Environment Enterprise With a facilitating environment and growing market opportunities, the entrepreneurial capacity of the social system is bound to expand.

Why some one likes to become an entrepreneur?


Being own boss and boss other people Put ones ideas to practice Creating wealth for oneself as well as for others Provide employment One can be creative and innovative One can choose the field / area of work Opportunity to build high value for oneself These are just a few reasons..

Entrepreneurial Characteristics
The characteristics of an entrepreneur can be best explained by Eight Essentials of Entrepreneurship (3Es) as propounded by Babson College for Entrepreneurship, which is a pioneer in Entrepreneurship Research and education. They are

Opportunity recognition, assessment and shaping Creative Resource marshalling Entrepreneurial Mind The E-Team and a Team Locus of Control Extended Enterprise Management Creativity Communication Leadership

Entrepreneurial Characteristics .Contd.


1.Opportunity Recognition, Assessment and Shaping Recognising the right market opportunity with respect to ones competency / skill-set is critical for the success of any enterprise. It is also important to assess the opportunity with respect to existing competition, life-span of the proposed product/ service and develop the business idea into a feasible Business Plan

Entrepreneurial Characteristics .Contd.


2.Creative Resource marshalling
Acquiring resources (4Ms) in a creative manner is very important to ensure optimum cost of establishment of the enterprise. This would call for networking, being aware of various of policies and programmes of Govt., ability to evaluate and make decisions.

Entrepreneurial Characteristics .Contd.


3. Entrepreneurial Mind
While most of the successful entrepreneurs have certain traits (discussed later), one must be passionate about his / her business. It has to be 24x7 situation at least during the set-up phase of the business which could be anywhere between 1-3 years (without expecting any great ROI / Salary).

Entrepreneurial Characteristics .Contd.


4.The E-Team and a Team Locus of Control Depending on the type and size envisaged for the enterprise, it is very important to develop the right team that would create synergy and cover all the major managerial functions. It is also important to decide, who will do what, to enable smooth decision-making. Trust and confidence in each others professionalism and competence are very important for the smooth functioning of the enterprise.

Entrepreneurial Characteristics .Contd.


5.Extended Enterprise Management Other than managing the enterprise, it is very important that the entrepreneur is aware liasoning with govt. officials, industry associations and society which would come handy in successfully managing the business.

Entrepreneurial Characteristics .Contd.


6. Creativity It is very important that entrepreneur is creative enough to ensure differentiation in the market place. With increased competition, it is creativity / innovation is the key tool which differentiates good entrepreneurs from the also-ran ones.

Entrepreneurial Characteristics .Contd.


7. Communication It is very important that the entrepreneur is a good communicator (in all types), though this is also equally important for managers. Being emotionally stable under all situations will enable good communication.

Entrepreneurial Characteristics .Contd.


8. Leadership Apart from being a good leader, it is very important on the part of the entrepreneur to build leadership qualities in his subordinates so that he can do more creative / higher level jobs.

Successful Entrepreneurs
Some of the common characteristics that most of the successful entrepreneurs possess are: 1.Creativity 7. Problem Solving 2.Innovation 8. Goal orientation 3.Dynamism 9. Risk Taking and 4.Leadership Decision Making 5.Team Building ability 6.Achievement 10. Commitment Motivation

Successful Entrepreneurs
1. Creativity

..Contd.

Creativity is the ability to bring something new into existence. Ideas evolve through creative process which involves 5 stages before it becomes an activity. a. Germination - Seeding Process b. Preparation - Conscious search for alternatives c. Incubation Intellect assuming conscious control d. Illumination Idea resurfaces as realistic creation e. Verification Verifying in terms of usefulness and feasibility to take it up as an activity

Successful Entrepreneurs

..Contd.

2. Innovation Innovation is key tool of entrepreneurs. It is an act that endows resources with a new capacity to create wealth. Successful entrepreneurs, whatever be their motives money, power, curiosity or status, try to create value and to make contribution.

Successful Entrepreneurs

..Contd.

3. Dynamism Innovation together with dynamism constitutes potential combination for prosperity. Dynamism revises the target of the enterprise time and again. A dynamic entrepreneur is always pragmatic. It is important to create win-win situation.

Successful Entrepreneurs
4. Leadership

..Contd.

Leadership qualities will enable a person to stand apart in whatever profession he/she might be in. Some of the areas in which leader distinguish themselves are: a. Communication b. Handling of Crisis situation / problems c. Generating resources d. Building relationships and utilizing networks

Successful Entrepreneurs

..Contd.

5. Team Building An entrepreneur should have ability to build a team. A team is a group of individuals with a common purpose, that is focused and aligned to achieve a specific task.

A good team will be able to share knowledge, core competency and goals.

Successful Entrepreneurs
6. Achievement Motivation

..Contd.

Entrepreneurs normally have high need for achievement motivation and are guided by their inner self, motivating their behaviour towards accomplishment. The concept of achievement motive has 5 components a. Expressing oneself through work b. Creating something new c. Achieving targets and standards d. Developing ones capability for these e. An ability and willingness to forego some amount of financial security

Successful Entrepreneurs
7. Problem Solving

..Contd.

Entrepreneurs normally solve the problems and normally do not avoid. A formal problem-solving model is a. Define the problem b. Gather information c. Identify various solutions d. Evaluate alternatives e. Take action f. Evaluate the action taken

Successful Entrepreneurs

..Contd.

8. Goal Orientation Goal setting is achievement of targets and objectives for the successful performance of an entrepreneurs, both long term and short term. It helps to measure how well the individuals and groups are meeting the performance standards.

Successful Entrepreneurs

..Contd.

9. Risk taking and Decision-making ability Entrepreneurs have to make decisions under conditions of uncertainty and therefore, are ready to bear risk, but never gamble with results. A good entrepreneur normally avoids excessively high or low risk situations.

Entrepreneur Vs Professional Manager


Parameter Entrepreneurial Mind Managerial Mind

1.Goals/Objectives Set by self Set by others 2.Empowerment Free to think / decide hierarchical 3.Driving force Means driven Goals driven 4.Orientation Creativity Efficiency 5. Mindset Doing something new Doing right things even if it is wrong in the right way

Any Questions?

Idea Generation and Screening

Idea Generation
Introduction Eco System for Idea generation Idea to Enterprise The process Screening Process for Incubation Importance of Entrepreneurial traits in converting Idea to Enterprise The Power of Ideas Conclusion

Eco System
Family Environment Social and Cultural Systems Political and Economic Systems

Idea-Enterprise
Decision to start a venture Market survey for the product /service Identifying Resources Risk Analysis Business Model Implementation Plan Incubation

Idea Screening
Individual / Team Strengths Opportunity for the product /service Resource requirements Time to Market Sustainability Ability to attract investments

Importance of Entrepreneurial Traits


Opportunity recognition, assessment and shaping Creative Resource marshalling Entrepreneurial Mind The E-Team and a Team Locus of Control Extended Enterprise Management Creativity Communication Leadership

The Power of Ideas


2009 No. of Applications 12,000 Group Mentoring 1,000 Finalists 254 VC Funded (9) + 28 Under consideration (19) 2010 16,000 850 ? ?

Any Questions?