1. Entrepreneurship And Business Plan Session 1st By: - Neeraj Gupta

2. Meaning ‘Entrepreneurship‘: - refers to a process by which individuals launch and manage their business and industrial enterprises. It is a dynamic process of creating wealth. ‘Entrepreneurs’: - are the ones who risk and invest their own capital into the business and industrial-ventures. And the fact is everybody is an entrepreneur. We ask how is everybody an entrepreneur anyone who exhibits the characteristics of self-development, creativity, self-decision making and risk-taking can be rightly called as a person with entrepreneurial traits. And if these traits are exhibited by a business person than he is called an entrepreneur.

3. Meaning & Definition Acc. To Dictionary: - Person who reorganizes and manages only enterprise specially involving high risk. But actually entrepreneurs are the ones who cleverly try to reduce risk and increase profitability. Acc. To economist: - Person who brings resources, labour, material, and other assets into combinations that make their value greater than before and also one who introduces changes, innovations and a new order. Acc to Psychologist: - Person who is typically driven by some forces, which create a desire to attain something. Acc to Sociologist: - Person whose actions determine his social status and who contributes to society. Management experts define him as a person who has a vision and generates an action plan to achieve it

4. Entrepreneurship involves 4 aspects 1.Entrepreneurship involves the creation process—creating something new of value to the entrepreneur and to the audience. 2.It requires the devotion of the necessary time and effort. 3.It involves assuming the necessary risks. 4.The rewards of being an entrepreneur are independence, personal satisfaction, and monetary reward. The entrepreneurial experience is filled with enthusiasm, frustration, anxiety, and hard work. 1.For many reasons there is a high failure rate among business owners. 2.The financial and emotional risk can be very high.

5. Evolution of Entrepreneurship Earliest Period  Marco Polo, who acted as a go-between and attempted to establish trade routes to the far east, was an early example.  The profits were divided between the capitalist and the merchant. Middle Ages  The term entrepreneur was used to describe both an actor and a person who managed large production projects.  A typical entrepreneur was the cleric who managed architectural projects. 17 th Century  entrepreneur -a person who entered contract with govt. to perform a service.  Any profits or losses were, tying risk to the entrepreneur for the first time.  John Law, a Frenchman, established a royal bank which evolved into an exclusive franchise trading company in the New World, leading eventually to Law’s downfall.  Richard Cantillon, a noted economist of the 1700s, developed early theories of the entrepreneur and is regarded as the founder of the term.  He viewed the entrepreneur as a risk taker who “buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk.”

6. Evolution of Entrepreneurship 18th century  entrepreneur was distinguished from the capital provider.  Inventors Eli Whitney and Thomas Edison (both were capital users) were unable to finance invention themselves and raised money from venture capitalists.  A venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on investments. 19 th and 20 th Century  The entrepreneur “contributes his own initiative, skill & ingenuity in planning, organizing and administering the enterprise… assume[ing] the chance of loss and gain.”  Andrew Carnegie is one example, building the American steel industry through competitiveness rather than creativity.  In the middle of the 20th century, the notion of an entrepreneur as an innovator was established.

7. Nature and Development of Entrepreneurship Entrepreneurs can contribute a lot to society so researchers have tried to analyze them on the whole. Acc. To David McClelland in 1960’s entreprenerur’s like careers, and have high need for achievement and always take calculated risks. Five Dimensions of Entrepreneurs by Thomas Bigley and David Boyd given in mid 1980’s  High in Need for achievement  They like to think and don’t depend on luck or fate  Willing to take moderate risks  Ability to tolerate ambiguity  Drive to get more done in less time

8. Traits of Entrepreneurs By John Hornday of Bobson College Self Confidence and Optimism Positive response to challenges Ability to take calculated risk Flexibility and ability to adapt Knowledge of markets Ability to get along with others better Independent mindedness Versatile knowledge Energy and efficiency

9. Traits of Entrepreneurs By John Hornday of Bobson College Creativity, need to achieve Dynamic leadership Responsive to suggestions Take initiatives Resourceful and persevering Perceptive with foresight Responsive to criticism Energy and efficiency

10. Skills Required of Entrepreneur Technical Business Management Personal WritingPlanningInner Control Oral CommunicationDecision Making Risk Taking Monitoring The Environment Human Relations Innovative Use Technology Marketing (Selling) Change-Oriented Visionary

11. Entrepreneurial Decision Present Lifestyle New Enterprise Desirable Desirable Possible Possible Catalyst

12. Entrepreneurial Decision Process Entrepreneurial decision process entails a movement from something to something. Change from Present Lifestyle Two work environments good for spawning new enterprises: R&D and marketing. A stronger incentive to leave a present live-style comes from a negative force—disruption.  Companies formed by people retired, moved, or been fired.  Completing an educational degree. The decision to start a new company occurs when an individual perceives that forming a new enterprise is both desirable and possible.

13. Drivers of New Venture Formation Desirability Influences  Culture/Subculture  Family/Peers  Teachers Possibility Factors  Government  Background  Market  Marketing  Role Models  Finances

14. Entrepreneurial Decision Process On lookout for opportunity and minimization of risk Experience based decisions Market Situation based Profit margin taken into account Market expansion Goodwill etc.

15. Role and Scope of Entrepreneurship in Economic Development Role and type of career lays down his pattern of living, determines his social status and controls his present and future life  It provides numerous opportunities for self-expression and realization of one's passion for doing something new and different.  There are numerous opportunities for growth and self-development.  Monetary rewards are greater.  Entrepreneur enjoys the power of decision-making. \  Reward of working on one's own leads to immense satisfaction.  Product-Evolution Process  Iterative Synthesis  Innovation  Technology Transfer  Development of community  Generates employment

16. Careers/Education Life Space  Work/Occupation  Individual/Personal  Nonwork/family Skills Required  Technical  Business Management  Personal

17. Entrepreneurial Checklist-What it takes to be an Entrepreneur Business skills, Attitude, and Experience Health and Stress Management Confidence, Optimism, and self reliance People skills Creativity and Innovation

18. Ethics & Social Responsibility Ethics- Behavior/Morals in Business Social Responsibility Value System  Peer Pressure  Social Norms  Competitors  Individual vs. Community

19. Entrepreneurial Process What entrepreneurs do can be explained as a six step process: -  They see opportunities where others don't.  They have a 'vision', a clear understanding of the concept and of what they're trying to do.  They persuade others of their vision, they can communicate the concept effectively.  They gather resources to make their vision become a reality (money, people, things).  They organize these resources to create a new venture, product or market (leadership, teams).  They constantly change/adapt themselves according to the changing demands of the market.

21. Entrepreneurial Process Identify an Opportunity Establish a Vision Persuade Others Gather Resources

22. Entrepreneurial Process-Gather Resources Resources can be classified into 4 categories : -  Financial Personal SavingsFamily and Friends Retained CapitalCommercial Partnerships Floating Public IssuesVenture Capital Government InstitutionsBanks Non-Governmental Organizations  Operating: -Tangible MachineriesRaw material Land and BuildingsOffice Equipments  Operating: -Intangible Company’s imageOperating Procedures TransportationManagement  Information PrimarySecondary

23. Entrepreneurial Process-Gather Resources Human  Whether to employ permanent or temporary/casual employees?  What should be amount and type of manpower in organization?  What should be the system for training the employees?  How should the compensation system be designed?  What method of performance appraisal should be used by the organization?  What should be the system of rewards?  How can healthy IR be maintained between the employees and the employer?  What method of grievance procedure should be adopted?  How to maintain a healthy organizational culture?  What should be the procedure for recruitment and selection to acquire the best of the resources available in the market?

24. Entrepreneurial Process Create New Venture Change/Adapt with time

25. Intrapreneurship It is the practice of entrepreneurial skills and approaches by or within the company. This means that to retain the entrepreneurs within the organization they should be provided entrepreneurial chances within the organization. For this managers who listen and respond to new ideas and are willing to risk their future, a system that rewards managers who may fail but who have generated and experimented with ideas.

26. Intrapreneurial Activities New Business Venturing New Business Venturing Innovation Innovation Self-Renewal Self-Renewal Proactive Proactive

27. Intrapreneuring & Characterstics of Intra preneurs Intrapreneuring : - means entrepreneurial activities that acquire organizational sanctionsand commitments of resources for the sole objective of innovative results. Characterstics: -  Intrapreneurs bridge gap between inventors and managers. They take new ideas and turn them into profitable realities.  They have a vision and the courage to realize it.  They can imagine what business prospects will follow from the way customers respond to their innovations.  They have ability to plan necessary steps for actualization of idea.  They have high need for achievement and they take moderate calculated risks.  They are dedicated to their work that they shut out other concerns, including their family life.

28. Reasons for Promoting Intrapreneurs in Organization Intrapreneurs thrive and vibrate in all organizations: big or small. Through their expertise and rich experience in organization. Basic Differences between Managers, Entrepreneurs and Intrapreneurs

29. Building and Nurturing Intrapreneurs: A Theoretical Model: Analysis

30. Similarities and Economic differences Between Entrepreneur and Intrapreneur Economic Differences: - Entrepreneur is starting a business while Intrapreneur is developing a new product in an already existing business. Intrapreneurs succeed when you as the owner: -  Walk your own talk  Select people with more breadth than depth  Pick champions with marketplace, distribution, product and technology experts.  Choose “doers” who are talked about  Don’t lead your good people to a slaughter  Don’t ask your Intrapreneur to fix your entire sales, marketing or organization plan

31. Intrapreneurs Fail When you as a Owner tolerate Leadership lip service Insurmountable politics A dysfunctional culture- to fix it change 4 S’s SystemStaffSalary Structure

32. What to do as an Intrapreneur Seize the moment  Your corporate and salaried people do not feel empowered to make needed changes but you do.  Your hourly people do not connect the quality of quantity of their work to the success of your company or an increase in their pay but you do.  No one in your company, including your sales force, has really had to sell an idea, product, or service to make a mortgage payment but you have.  You see your organization going along to get along but you can't.

33. What to do as an Intrapreneur Pass on the opportunity and perhaps become and entrepreneur when you see  Your owners are motivated more by protecting their wealth then they are by creating new value.  Your owners are threatened, weak and don't really want to change.  Insiders protecting the status quo control your organization.  The pain of your organization changing is greater than the pain of your organization not changing.

34. Corporate Vs Intrapreneurial Culture Corporate Sum of values, cultures, traditions etc. Sum of values, cultures, traditions etc. Climate/Reward System Favors Conservatism Climate/Reward System Favors Conservatism Follow Instructions, No Initiative Follow Instructions, No Initiative Hierarchy Of Authority Hierarchy Of Authority Stimulates innovation Stimulates innovationIntrapreneurial The character of an organization The character of an organization Develop Vision, Goals, & Plans Develop Vision, Goals, & Plans Suggest, Try, Experiment Suggest, Try, Experiment Flat Organizational Structure- Networking & Teamwork Flat Organizational Structure- Networking & Teamwork

35. Cultural Norms/Values CorporateIntrapreneurial FragmentedWhole InstructionVision Controlled In Control Outer-DirectedInner-Directed AlienationResponsibility “Chores”Enthusiasm/Motivation Defined Limits Space/Freedom InterferenceTrust Distrust Belief In People ExpendableExpandable Limiting People Growing People

36. Climate for Intrapreneurship Technology Technology New Ideas Encouraged New Ideas Encouraged Trial/Error Encouraged Trial/Error Encouraged Failure Allowed Failure Allowed No Opportunity Parameters No Opportunity Parameters Resources Available & Accessible Resources Available & Accessible Multidiscipline Teams Multidiscipline Teams Long Time Horizon Long Time Horizon Volunteer Program Volunteer Program Appropriate Reward System Appropriate Reward System Sponsors/Champions Available Sponsors/Champions Available Support of Top Management Support of Top Management

37. Intrapreneurial Leaders Understand Environment Understand Environment Have Vision/Flexibility Have Vision/Flexibility Create Management Options Create Management Options Encourage Teamwork Encourage Teamwork Encourage Open Discussion Encourage Open Discussion Build Coalitions Build Coalitions Persist Persist

38. Evaluating Intrapreneurship Proposals  Corporate Fit  Initial Investment  Experienced Venture Champion  Experience With Product/Service  Competitive Threat  Proprietary Technology  Gross Margin  Rate Of Return

39. Barriers To Intrapreneurship Inherent Nature of Large Organizations Inherent Nature of Large Organizations No Long-Term Commitment No Long-Term Commitment Lack Of Autonomy For Decision Making Lack Of Autonomy For Decision Making Lack of Intrapreneurial Talent Lack of Intrapreneurial Talent Inappropriate Compensation Methods Inappropriate Compensation Methods Constrained Environment Constrained Environment

40. Thank You