Entreprenuership: An Overview
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Transcript of Entreprenuership: An Overview
1 Anil Kumar RathJitendra Sahoo
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LEARNING OBJECTIVES Entrepreneur Vs. Businessman Entrepreneurship Factors Motivating Entrepreneurship Entrepreneurship Process Availability of Resources Contribution towards Economy Education, Innovation and Entrepreneurship Problems of an Entrepreneur 21st Century Trend in Entrepreneurship Research Why Become an Entrepreneur ? Some Cases
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THE EVOLUTION OF ENTREPRENEURSHIP
Entrepreneur is derived from the French entreprendre, meaning “to undertake.” The entrepreneur is one who undertakes to
organize, manage, and assume the risks of a business.
Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject.
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ENTREPRENEUR
“The initiative and voluntary act of managing risk and assuming responsibility in transforming creativity and innovation to unique product for the purpose of providing effective and efficient solutions to consumers, while achieving long-term profitability and contributing growth to the economy as a whole. ”
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QUALITIES
Initiative
Voluntarism
Risk Management and Responsibility
Creativity and Innovation
Passion to win
Providing Effective Consumer Solution
Long Term Profitability
Contributing Growth To Economy
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ENTREPRENEUR VS. BUSINESSMAN
ENTREPRENEURS VS MANAGERS
High
Inventor
Entrepreneur
Promoter
Manager,
administrator
Creativity and Innovation
General management skills, business know-how, networks High
Low
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ENTREPRENEURSHIP
“Entrepreneurship is an act of being an entrepreneur which can be precisely defined as "one who undertakes innovation, finance and business acumen in an order to transform innovations into economic goods”
It is a mind set that is: Opportunity focused Innovative Growth oriented
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FACTORS MOTIVATING ENTREPRENEURSHIP
Personal attributes:-
1. Higher internal locus of control
2. Desire for financial success
3. Desire to achieve self-realization
4. Joy of innovation
5. Risk Tolerance
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Environmental Factors:-
1. Local, Regional, or National attitudes towards
entrepreneurship
2. Social and cultural pressures for or against risk
taking and entrepreneurship
3. Access to entrepreneurial role models
4. Responsibilities to family and community
5. General Govt. facilities
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ENTREPRENEURIAL PROCESS:-
Identifying opportunity
Assess and acquire necessary resources
Execution
-producing the product or service
-Marketing
-designing and building a company
-responding to the environment
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AVAILABILITY OF EARLY STAGE FINANCE
Self financing
-own saving
-family business
-borrowed from family and friends
Bank finance
Angel investor
Venture capital
Private equity
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BANK FINANCE
Traditional bank financing- Adequate collateral to judge credit-worthiness.
Difficult at the start-up stage Comparatively easy at the growth stage.
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ANGEL INVESTOR
Angel investors are typically high-net-worth individuals (HNIs) who have often been successful entrepreneurs themselves.
Institutional seed funds They invest in new-idea enterprises and help
to bring these ideas to market take significant risks
VENTURE CAPITAL Venture capital funding provides funds for early
stage companies once they have passed the seed stage and report some returns.
developing, launching and expanding new products or services.
lesser degrees of risk invest more money.
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PRIVATE EQUITY
Private Equity (PE) funds are among the largest sources of funding for enterprises.
Requiring significantly large funds for expansion and growth.
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ENCOURAGING ENTREPRENEURSHIP IN INDIA
A transparent rating system for SMEs formed, where the cost of credit is linked to the credit rating of the enterprise.
Credit Information Bureau (India) Limited (CIBIL), Dun & Bradstreet Information Services India Private Limited (D&B), SIDBI, and a few other banks have together set up SMERA (SME Rating Agency)
Banks have also reported reduction in interest rate by 25 to 100 basis points for ‘SMERA rated companies.
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MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT (MSME ACT):
Key aim is to facilitate access to finance and incentivize efficient use of funds by entrepreneurs.
Bring about greater growth in numbers and overall competitiveness.
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MUTUAL CREDIT GUARANTEE
First MGAs appeared in Europe in the 1940s In India, the Indian Institute of Rural
Development (IIRD), with support from UNIDO, launched the Mutual Credit Guarantee Fund Scheme (MCGFS) in 2000.
To help hand block printing textile clusters & overcome the difficulty in accessing credit arising from the inability to offer traditional forms of collateral.
ALEAP Credit Guarantee Association (ACGA) agreement with Andhra Bank and CGTSI for implementation of MCGS in the state of Andhra Pradesh .
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CONTRIBUTION TOWARDS ECONOMY
New combination of means of production,
New industry formation,
Increasing opportunities for employment,
Additional wealth creation,
Introduction and dissemination of new
methods & technology,
Overall economic growth.
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Government
Family
Education
Finance community
Idea Risk aptitude
Skills
Finance
Space
JobsWealthEntrepreneurs
The Entrepreneurial Ecosystem
Facilitators
Deliverables
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FIGURE 1.2: ENTREPRENEURSHIP AND TECHNOLOGICAL CHANGE
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AN INTEGRATIVE MODEL OF ENTREPRENEURIAL INPUTS AND OUTCOMES
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Education is indispensable for skill development
and fundamental to Entrepreneurship and
innovation.
Innovation catalyzes Entrepreneurship by
providing ideas that can be converted into wealth
(through goods and services).
An entrepreneurial culture drives creation of
wealth from knowledge and generates impetus
for further innovation.
Education, Innovation and Entrepreneurship
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EDUCATION--SKILL DEVELOPMENT & F.E--CREATING INNOVATION
Higher and Professional Education
Vocational Education & Training- (Skill
Development) 96% in Korea 75% in Germany 80% in Japan 68% in United Kingdom
05% in India
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PROBLEM OF AN ENTREPRENEUR
Infrastructure Legal system Labour laws Corruptions Information Taxation Licensing
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21ST CENTURY TRENDS IN ENTREPRENEURSHIP
Venture Financing
Social Entrepreneurshi
p
Corporate Entrepreneurshi
p
Trends in Entrepreneurship
Research
Entrepreneurial Cognition
Global Entrepreneurial
Movement Family
Businesses
Women Entrepreneurs
Entrepreneurial Education
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You will be an entrepreneur.. or
Work for an entrepreneur…..?
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WHY BECOME ENTREPRENEUR……..?
Be your own Boss.
To create jobs than search for a job
To get financial reward
To involve in total process of the business
Prestige
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STEVE JOBS Founded Apple Computers- 1976
Former Chairman-cum-CEO Pioneer of the PC Revolution Product- i pod, i phone, i pad,
PCs
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BABA RAMDEV Founder- Divya Yoga Trust & Patanjali yoga trust Product- Daily consumer
products Ayurvedic Medicines Brand- Patanjali, Divya
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DR. ACHYUTA SAMANTA
Founder- KIIT & KIIS KIIT- Established 1992 Awarded- Deemed university status in 2004 Awards -Nominated for UK-India Business Awards-2009-Asia’s Best Social Entrepreneur - 2010 by the World
HRD Congress-The Times of India Orissa Icon 2011 Awards (Social
Service)
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SHAHRUKH KHAN AS AN ENTREPRENEUR
o Founded RED CHILLIES ENTERTAINMENT in 2002 .
o Now the turn over of this company in 2011-12 financial year is 150+ crore
o Successful movies made under this banner are:-
Chalte chalte(2003) Main hoon na(2004) Paheli (2005) Om Shanti Om (2007) Ra.one(2011)
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BIBLIOGRAFY
www.google.com National Knowledge Commission Survey Entrepreneur Magazine
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