Entrepreneurship-Setting the Stage

8/8/2019 Entrepreneurship-Setting the Stage

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A presentation by J.M.Pant

Module 1: Entrepreneurship-Setting The stage What Motivates Entrepreneurs?

The Making Of An Entrepreneur- Paradigm Shift

Paradigm Busters

J.M.PantManagement Consultant, Trainer and Visiting Professor(0)9811030273, [email protected]

Program on Educational Entrepreneurship


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What Motivates You?


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Brief Overview of Motivation

The process of motivation

Inner state of Disequilibria-Gap in need,

Desire orexpectation

Motivation Desired

behaviour

Goal

Accomplished

Hygiene factors and motivators-Money

Awards, recognition, moreResponsibility, Power,

Achievement, Affiliation


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Self Development, Self motivation(Passion, Interest)

Energisingothers Energy Execution

Entrepreneurial Leader


Cutting edge


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Self fulfilment needs

Esteem NeedsSocial Needs

Safety Needs

Physiological Needs

Motivational Needs (Maslow Hierarchy)


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Brief Overview of Motivation Achievement Motivation Desire for excellence, sets high

standards, prefers challenge. Likes to take moderate risks.

Tends to persist in the face of adversity.

Uses failures as a learning experience. Self driven, takes initiative Enjoys autonomy and flexibility Hunger for more .

Not satisfied, once goals areachieved, sets higher goals.

Wants feedback and learns fromfeedback


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Power MotivationEnjoys being in chargeStrives to have influence over

othersPrefers to be placed in competitiveand control oriented situationsTends to be more concerned withprestige and gaining influenceover others than with effectiveperformance



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Affiliation MotivationStrives for friendshipPrefers cooperativesituations rather thancompetitive onesDesires relationshipswith a high degree ofmutual understanding


Kumbh mela

Kanwarias journey


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What Motivates An Entrepreneur?

GoalsGoals motivate people toachieve them.

A certain amount of stretchand stress is motivatingAbsence of work, confusedgoals and no targets toachieve is demotivating tomost people.


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What Motivates An Entrepreneur?AutonomyMaking Money, FinancialIndependenceOpportunity to think innovatively,desire to create something new,most times from scratch

Achievement, including achievementof personal objectivesAction, Doing somethingNot wanting to work for anyone elseDesire to be ones own bossJob satisfactionMore opportunitiesFlexibility in work timings, choice ofwork


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What Motivates An Entrepreneur?Thrill excitement ofentrepreneurshipIntellectual and physical challengeContribution to society, nation,world

Outcome is not known and thatadds to excitementEntrepreneurship motivates justlike a person is motivated to playsports or a game:

Physical activityCreativitySocial groupingTension, unexpected results


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Locus of controlAn attribute indicating the sense of control aperson has over life

Concern of entrepreneurWhether he or she will have the drive and energyto overcome inertia in forming something newEnergy to mange the new enterprise

Are you internally or externally driven?Most successful entrepreneurs are internallydriven


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What Motivates An Entrepreneur?Childhood family environment

First born child receives special attention and develops more selfconfidenceEntrepreneurs tend to have self employed or entrepreneurial parentsEntrepreneurs Family environment- supportive and encouragingindependence, achievement and responsibility

EducationEducation is critical but not a formal, degree focused educationEntrepreneurs like to learn, explore, research, study what is intereststhem and is useful for their enterprise.

Personal ValuesSuperior product quality

Quality service to customersFlexibilityAdapt to changeHigh caliber leadershipEthics


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AgeAge is not a factor for starting entrepreneurshipWhat is important is energy, passion and driveMost entrepreneurs initiate entrepreneurial careers

between 22 to 45.Every five years or so, many people get an urge to becomean entrepreneur

ExperienceExperience in similar area and relevant to business likesales, finance, technology is beneficialYears not important, Quality of experience isEntrepreneurial experience- the best venture is generallynot the first one


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Role ModelsIndividuals influencing entrepreneurs career choice and style

Role models could beSuccessful entrepreneurs in India and globallySuccessful entrepreneurs from ones community,region, school, college/universityParents, in-lawsBrothers or sistersOther relatives


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What Motivates An Entrepreneur?In your own business, you are all alone. It is lonely at the top.Need to establish support groups to keep the entrepreneur going

Professional support network Individuals who help the entrepreneurs in business activitiesMentors- coach, sounding board-for sharing problems andsuccesses,Business associates- suppliers, consultants, professionals,

customers, self employed individualsTrade associationsPersonal affiliations-clubs, alumni, sporting events, shared hobbies,social networking sites

Moral support network Having an understanding cheering crowd gives encouragement to

entrepreneur to persist through difficulties and problemsIndividuals who give psychological support to entrepreneursFamily and friends-a cheering crowdSpouse, friends, children, parents, uncles


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Negative Motivators

Bad experiencesDissatisfaction with job, boredom and frustration, nogrowth/promotionLoss of jobUnable to get a jobConflict of ethics and values

Lack of educationNot having certified degree educationCircumstances forced one to give up on education

ProvocationsHumiliation by friends, relatives, spouse/girl friendBeing told you are not fit to do anything


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Paradigm Shift-Process of Making of an Entrepreneur

1. Identity SearchIdentity crisis

Experiences dissatisfaction with present identityDiscomfort in existing situationCould be lack of challenge, frustration and boredom,less money, fight with boss, loss of job, VRS and soforth

Exploration-look for ways of reducing the dissatisfactionTransitional stress-experiences conflicts andapprehensions about the new identity


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1. Identity SearchSearch alternatives

Searches entrepreneurial alternativesUses professional and moral support networkDeliberation- weighs pros and cons of eachalternative

Choice- makes a tentative choice from amongstthe alternatives


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2. Identity FormationPre-enterprise preparation- makes preparation:

Acquiring relevant knowledge, skills etcGains relevant experienceMeets experts

Enterprise building-takes steps towardsestablishment of an enterpriseNew Identity- acquires new identity of anentrepreneur


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3. Identity EstablishmentEnterprise management- begin to manage theenterpriseRole stress- experiences entrepreneur conflict andstressIdentity integration- identifies with other entrepreneursLinkage building- establishes linkages with otherentrepreneurs and support systems for effectivefunctioning.


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Paradigm Busters

Michael Dell, Dell Inc.Changed the rules of the PC business byeliminating intermediaries and pioneering alow inventory made-to-order model.

Herb Kelleher, South West AirlinesIntroduced the concept of low cost flying andserved it up with a dash of fun, and warm on-board service


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Paradigm Busters

Howard Schultz, StarbucksThrough a combination of clever marketingand vision, turned the coffee bar into an

upscale must-have experienceJeff Bezos, Amazon.com

Most successful online retailers in the face of

skepticism about selling on the internet.


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Paradigm Busters

C.K.Ranganathan, CavinKareStormed the FMCG sector by constantinnovation in packaging, distribution andpricing.Launch of Spinz talc in 20g, 50, 100g, 400g in1997 just after 1996 world cup (spinz fromspin), Spinz deodarants, Nyle creams,Natural Fairever, Meera herbal shampoo in8ml, 25 ml and 100 ml, and so forth.Satchets and small packings made itconvenient for frequent travellers.


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Paradigm Busters

Kishore Biyani, Future group -Pantaloon and Big Bazar

Started as a trouser manufacturing unit, Pantaloon hasbecome a big retail company.

Changed the face of retail business in India.Fromfashion to food to furniture to real estate to stationery tofinance everything under one umbrella.

K V Kamath, CEO ICICIChange the rules of banking making it like FMCG: ATMs,personal, consumer and auto loans for mass.Expanding the model to rural areas.


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Paradigm Busters

Over time we take paradigm shift for granted.We forget how business was done before.A good start is never enough- innovation hasto be continuous.For reigning incumbents will hit back plusthere are copycats.


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Paradigm Busters

Robert Frost I took the road less travelled by, andthat has made all the difference.Paradigm shifters are more risk friendly.They have a big dream.Failures dont deter them - it makes them hungrier.For example, Biyanis initial set of failures (floppedfilms, managing Hanse Cronje, initial failures inPantaloon and Big Bazar)Air Deccans inaugural flight -one engine caught fireNo journey is complete without pitfalls.


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Paradigm Busters

Reliance Industries started in 1966 as a smalltextile manufacturer. Now it ranks among one of theworlds largest oil and gas companies.Suzlon energy- Tulsi Tanti started a textile mill inGujaratran into problems because of erraticpower supplies and rising energy costs.Set up two windmills in 1990 with turbines importedfrom a German company. Suzlon is now one of the

worlds fastest growing wind energy equipmentmakers.What would have happened if both had continuedwith textiles is anyones guess.


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Paradigm Busters

Business stuck in sunset industries mustradically overhaul their business.Wipro- Azim Premjis initiative transformed afamily run vegetable oil firm into a major ITservices and products supplier.Max India- stared as pharma company,acquired telecom licence, sold telecombusiness, entered into insurance andhealthcare segment.


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Making the shift

Paradigm shiftCompany Original Business Current Business

Reliance Textiles Oil, petrochemicals, realestate, infrastructure-power, communication

Suzlon Energy Textiles Wind energy generation

Wipro Vegetable Oil IT

Max India Drug manufacturer Insurance and health care

Unitech Construction Real Estate development

GMR Infrastructure Textiles InfrastructureICICI Development

financingBanking, insurance, stocktrading, financial services


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A presentation by J M Pant

Entrepreneurship-Setting the Stage

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