MODULE - ONE

Learning Objectives….

Nature and importance of Entrepreneurs Entrepreneurships – schools of thought Entrepreneurial decision process New venture creation – types of start ups Role of Entrepreneurship in Economic

Development Intrapreneurship Future of Entrepreneurship

Decoding Entrepreneurship……

Entrepreneurship—a way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach, and leadership balanced

Entrepreneurship Results

Value:CreationEnhancementRealizationRenewal

For:OwnersStakeholdersAll Participants

Entrepreneurial Requirements

Willingness to take risksPersonal FinancialCalculated

Shift the odds of success Balancing risks with rewards

Entrepreneurship is NOT just “Start-Ups Only” It includes companies and organizations

All typesAt all stages

Can occur and fail to occurIn old and new firmsSmall and large firmsFast and slow growing firmsPrivate, not-for-profit, and public sectorsAll geographic pointsAll stages of a nation’s development

Metaphors for Entrepreneurship

Improvisational Quick Clever Creative Resourceful Inventive Complex – compare to music (jazz or symphony

conductor), sports (golf), chess

Paradoxes of Entrepreneurship

An opportunity with no or very low potential can be an enormously big opportunity.

To make money you have to first lose money. To create and build wealth, one must relinquish

wealth. To succeed, one first has to experience failure Entrepreneurship requires considerable thought,

preparation, and planning, yet is basically an unplannable event.

For creativity and innovativeness to prosper, rigor and discipline must accompany the process.

Entrepreneurship requires a bias toward action and a sense of urgency, but also demands patience and perseverance.

The greater the organization, orderliness, discipline, and control, the less you will control your ultimate destiny.

Adhering to management best practice (especially staying close to the customer that created industry leaders in the 1980s), became a seed of self-destruction and loss of leadership to upstart competitors.

To realize the long-term equity value, you have to forgo the temptations of short-term profitability

The Entrepreneurial Process

It is opportunity driven It is driven by a lead entrepreneur and an

entrepreneurial team It is resource parsimonious and creative It depends on the fit and balance among these It is integrated and holistic

The Entrepreneurial Nexus……

Definitions – Three schools of thought

1.Entrepreneur as an Innovator

According to Hagen “ the entrepreneur is an economic man, who tries to maximize his profits by innovations. Innovations involve problem solving and the entrepreneur gets satisfaction using capabilities in attacking problems”.

According to Joseph Schumpeter: “an entrepreneur basically is an innovator who carries out new combinations to initiate and accelerate the process of economic development”.

Innovations of an entrepreneur are in 5 forms ???????

2. Entrepreneurship as a risk bearer –

Richard Cantillon “a person who buys factor services at certain prices to sell it at uncertain prices”.

F.H Knight “entrepreneurs are a specialized group of persons who bear risk and deal with uncertainty”.

3. Entrepreneurship as an organizer –

J.B Say “is the economic agent who unites all means of production, the labour force of one, the capital or land of others and who finds in the value of products which results from their employment, the reconstitution of the entire capital that he utilizes and the value of the wages, the interest and the rent which he pays as well as profit belonging to himself”

Drucker’s thoughts…..

Peter Drucker “an entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity”.

Further he says, - an entrepreneur should try to be clever in design

or execution otherwise he is bound to fail. - he should innovate for the present and not for the

future- innovation should be simple otherwise it would not

work

- innovation requires knowledge, ingenuity, diligence, persistence and commitment

- an entrepreneur must be an innovator as well as a leader

- must be capable of analyzing the opportunities and exploit them successfully.

TYPES OF ENTREPRENEURS

INNOVATIVE ENTREPRENEURS IMITATIVE ENTREPRENEURS FABIAN ENTREPRENEURS DRONE ENTREPRENEURS

RELATIONSHIP BETWEEN ENTREPRENEUR AND ENTREPRENEURSHIP

ENTREPRENEUR PERSON ORGANISER INNOVATOR RISK BEARER MOTIVATOR CREATOR VISUALISER LEADER IMITATOR

ENTREPRENEURSHIP PROCESS ORGANISATION INNOVATION RISK BEARING MOTIVATION CREATION VISION LEADERSHIP IMITATION

Conclusion……

"When you reach an obstacle, turn it into an opportunity. You have the choice. You can overcome and be a winner, or you can allow it to overcome you and be a loser. The choice is yours and yours alone. Refuse to throw in the towel. Go that extra mile that failures refuse to travel. It is far better to be exhausted from success than to be rested from failure."

Mary Kay Ash, founder of Mary Kay Cosmetics