Introduction to Entrepreneurship and Business Opportunities.
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Transcript of Introduction to Entrepreneurship and Business Opportunities.
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Introduction to Entrepreneurship and Business
Opportunities
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What does entrepreneurship involve?
Wealth Creation
New Venture Management
Innovation
Creativity
Risk Taking
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What is entrepreneurship ?
It is the process of creating something newby devoting...by assuming certain ... risksand receiving some ... rewards
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What is entrepreneurship ?
“It is the process of creating something new, with value, by devoting the necessary time and effort
assuming the accompanying financial, psychic, and social risks,
and receiving rewards of monetary and personal satisfaction and independence”
Hisrich and Peters, Entrepreneurship, pg 10
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What is entrepreneurship ?
“It is the process of creating something new, with value, by devoting the necessary time and effort
assuming the accompanying financial, psychic, and social risks,
and receiving rewards of monetary and personal satisfaction and independence”
Hisrich and Peters, Entrepreneurship, pg 10
CREATING VALUE
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What is entrepreneurship ?
Delivering Value to Customers who are
willing to Pay an amount which covers your Costs
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When does a person become an entrepreneur?
Let's list some of these conditions or events.
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources.
Harvard Business School
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources.
Harvard Business School
THE OPPORTUNITY
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources.
Harvard Business School
LEVERAGING RESOURCES
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources
Harvard Business School
An entrepreneur is opportunity-obsessed
with the goal of creating value
without regard to resources currently controlled.
Stanford University
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What is Entrepreneurship ?
Opportunity identification
Leveraging resources
Value creation
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What is Entrepreneurship ?
Opportunity identification
Leveraging resources
Value creation
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How to spot an opportunity ?
“Solving a problem”
many entrepreneurs
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How to spot an opportunity ?
“Solving a problem”
many entrepreneurs
Vinod Khosla's clip (30 sec.)
http://edcorner.stanford.edu/authorMaterialInfo.html?mid=26
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Sources of Business Opportunities
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Change as a source of business opportunities
Sources of Business Opportunities
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The big company
versus
The start-up
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The big company vs. the start-up
Established companies (incumbent players) have
products or servicessmooth operationsestablished business models loyal set of customersfunctional teams ……
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The big company vs. the start-up
Start-ups have
passionhunger to growlower costslack of hierarchyflexibilityeligibility for certain funding schemes...
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The big company vs. the start-up
Established companies (incumbent players) – they have products or services, smooth operations, established business models, loyal set of customers, functional teams ……
Start-ups have passion, hunger to grow, lower costs, lack of hierarchy and flexibility, eligibility for certain funding schemes...
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Change as a Source of Opportunity
Status-quo is good for incumbent players
Change brings in disruption – that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance
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Change as a Source of Opportunity
Status-quo is good for incumbent players
Change brings in disruption – that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance
Change produces a level-playing field which is actually loaded in favour of a new player because of its flexibility, adaptiveness
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Examples of Entrepreneurs Exploiting Change
Chaudhry Raghavendra Singh
21 colonies including
Greater Kailash, South Extension and Hauz Khas
http://in.rediff.com/money/2006/apr/08forbes.htm
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Broad Categories of Change
Demographic
Economic
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Broad Categories of Change
Demographic
Economic
Socio-cultural
Technological
Political
Legal and Regulatory
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Median age
Working population as the % of total population
Life expectancy
Health-care needs
Urban-rural ratio
Literacy
Male-female ratio
Demographic Changes
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Economic Changes
Gross Domestic Product and Per Capita Income
Availability of credit at all levels
Size of the middle class
Level of exports and imports
Inflation and interest rates
Various growth rates – industrial growth, productivity growth, exports growth
Level of unemployment
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Value systems – globalization and local assertions
Accepted norms of behaviour
Role of religion and spirituality
Pursuit of expertise, knowledge, wealth, possessionsMeasure of “time” – attention span, priorities, conveniences
Socio-Cultural Changes
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Technological Changes
Availability and wide-spread assimilation of technology
Information Technology and it pervasiveness
Costs and disposable incomes
Performance, variety, ease of acquisition
Cross applications – interdisciplinary developments
Comfort level of technology usage
Examples: CD ROM drives and mobile phones
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Transition from centrally planned to market economy (India, 1991)
Transition from communism to “market socialism” (China, 1978-80)
IPR laws
Labour reforms
Political and Regulatory Changes
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Analyze all the changes that are happening in the target market
Estimate the time constants of change – fast or slow
Worry about the fickleness of customer tastes (esp. fashions, movies)
Make reasonable guesses
Validate your hypotheses at each stage as new field data arises
Study human psychology or consumer behaviour
Entrepreneur as a Visionary must Anticipate
A
B
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Analyze all the changes that are happening in the target market
Estimate the time constants of change – fast or slow
Worry about the fickleness of customer tastes (esp. fashions, movies)
Make reasonable guesses
Validate your hypotheses at each stage as new field data arises
Study human psychology or consumer behaviour
Entrepreneur as a Visionary must Anticipate
A
B
Jeff Hawkins' clip 3.50 min
http://edcorner.stanford.edu/authorMaterialInfo.html?mid=55
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Examples of Entrepreneurs Exploiting Change
“Ted's mind is always 5 to 10 years down the road. Right now he's probably living in 1995”
Ted Turner, founder of CNN, about whom this was said in 1985.
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What is entrepreneurship ?
What are the stages from an idea onwards?
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An introduction to entrepreneurship
Idea > Prototype > Development > Scale-up
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An introduction to entrepreneurship
Functional areas: ????
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An introduction to entrepreneurship
Functional areas
Service/technology developmentHRFinanceStrategyMarketing
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Function-timeframe matrix
LiquidityPrototype Development Scale-upIdea
Strategy
Mktg
HR
Finance
Service/Technology
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What is entrepreneurship?
The entrepreneurial process will create a better world.
It's not just about new companies, capital and job formation, norinnovation, nor creativity, nor breakthroughs.
It is also about fostering an ingenious human spirit and improvinghumankind.
Jeffry A Timmons, Franklin W. Olin Distinguished Professor ofEntrepreneurship, Babson College
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Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of today's class planning what you are going to do with this money.
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Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of today's class planning what you are going to do with this money.
Friday afternoon is allocated for you to make your sales. Group Supervisor (moderator) commits to issuing receipts in case that is required for your customers.
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Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of today's class planning what you are going to do with this money.
Friday afternoon is allocated for you to make your sales. Group Supervisor (moderator) commits to issuing receipts in case that is required for your customers.
Saturday morning: come and tell us what you did and how much you earned. You can keep the extra money that you made.
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Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of today's class planning what you are going to do with this money.
Friday afternoon is allocated for you to make your sales. Group Supervisor (moderator) will issue receipts in case that is required for your customers.
Saturday morning: come and tell us what you did and how much you earned. You can keep the extra money that you made.
In case you didn't try to make money, you must return the Rs. 50/-.
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An introduction to entrepreneurship
Credits
Entrepreneurship, 5th Edition, 2002D. Hisrich and M. P. Peters
Stanford Technologies Venture Program (STVP)