Entrepreneur

1. Entrepreneur • Meaning- • Er and eco dev. as catalyst for dev/socio-eco prosperity. • Various def but yet not precise due to variations in skills and abilities. • Def differs country wise as stages and levels of dev r different • Er word derived from French verb enterpredre means to undertake. • In many countries er –a person who starts his own new and small business. b it in mfr or trade or services or farming. • Er –one who innovates, raise and assembles 3 M,s and set-up org • Innovation –either 1- a product improvisation-its quality, packing etc, 2-new product, 3-demand discovery or source of supply, 4- changes in org and mgt • Basics of er -fig

2. Schumpeter's def of er-specific in adv economy -an individual introducing something new in economy thru reforms or revolutions thru innovations or even imitations in any area of business • Peter Drucker's – Innovation -as a specific tool of er, means to exploit changes as opportunity. So er to search purposefully for source of innovation with opportunities for its success. • His 3 conditions to b fulfilled by er-1-innovation at work, Requires knowledge and ingenuity. It makes great demand on diligence, persistence, and commitment.2-to succeed innovation must build on their strength, 3-innovation to b close to mkt focus, mkt driven • Sources of innovative opportunities- 1- unexpected, future events 2- incongruity, gap bet reality and actual 3-industry structure, mkt structure,4-changes outside industry related to cbb- perceptions, demographics, new trends • Francis A Walker’s views- er –one who is endowed with more than average capacities for- task , organizing and coordinating.

3. New concept of er – who detects, evaluates envoi. conceives enterprise with purpose, with vast initiative, grit and determinations. performs one or more of fallowing- • 1-percives opportunities for profitable investments • 2-explores the prospects of starting such a mfrng enterprise • 3-obtain necessary industrial licenses, • 4-arranges initial capital • 5-provides personal guarantees to f.i., • 6-promises to meet shortfall in capital • 7- supplies tech know how • Key elements of er- fig and ex of jrd, da, nm etc and family businesses changed to big corporate • Importance of er- • Imp input for eco dev of a country ,region. • Makes a difference in rate of eco growth • Speed up the process of production • Speed-up dispersal of eco activities • Development of tribal and backward areas.

4. Creation of employment opportunities. • Improvement in standard of living of weaker sections of society • Involvement all sections in process of growth- shg’s • Nature and type of er- • As per types of business, use of professional skills, motivation, growth and stages of dev and area • 1-as per business-business er, trading er, industrial er- large, sme etc, corporate er, agriculture er, retail er, service er • 2-As per technology- techs or non techs, professional, high tech or low tech • 3-As per motivation-pure, induced, motivated spontaneous. • 4-As per growth- growth or super growth • 5-As per stages of dev- 1st gene, modern, classical, • 6- as per area- rural, urban • 7- women er

5. ingredients of a successful er- • Confident in facing challenges and eager to achieve • Identifies product • Plans fro a venture • Selects technology in tune with available resources and socio eco envoi. • Eager to improve quality • Able to manage men and material • Finds markets • Innovative • Progressive • Always strives to climb up • always imbibes new technology for improvement • Always strives to modernization and diversifications • Well informed • Strives to meet the changing needs of customer as customer is king

6. Traits-Characteristics-of er- • Technical competence, initiative, good judgment, intelligence, leadership qualities, self confidence, energy, attitude, creativeness, fairness, honesty, tactfulness and emotional stability. • 1-Mental ability- comprising intelligence and creative thinking, analytical power to study satiation, forecast and decide • 2-clear objectives- about nature of product, service, if subsidiary, for profits or to render social change • 3-Business secrecy- so proper selection of supporting people • 4-HR ability- an imp personality trait leading to emotional stability, personal relations, consideration and tactfulness. Relations with Customer , employee , suppliers, creditors and community depends on good hr • 5-communication ability- stake holders needs clarity in business • 6-technical knowledge. • Additional- motivator-team leader, self confidence- self belief to achieve goals, long term involvement, high energy level.. • Fig of characteristics

7. Culture and er. • Every er emerge from available environment so prevailing business culture or social culture provides envoi base for er • So er-ship of er is influenced by combo of envoi factors viz socio-economics , family background, level of edu, political stability and govt policy, caste religious affiliations, availability of infra facilities, achievement motivation, personality • Democratic society, desire to make money thru its applications rather than holding, encouraging policies of govt provides trigger to er. • Culture – a complex whole of knowledge+ belief+ art+ moral+ law+ custom+ habits acquired as a member of society. A total life way of people, Sum total of social behavior- knowledge+ belief+ ideals+ preferences • Org culture- Interpersonal , mutual relationships – open, close, flat. Hierarchy of org etc +work patterns-professional, autocratic • Cultural conformity– society insures the people do indeed meet their role obligations

8. Business culture and society- • Vibrant and constantly evolving, changing trends in society or in business . So progressive culture readily stimulates er-ship • Large scale migrations- entry of mnc’s changes business culture • Leaderships , governance also changes b culture – lpg • Meaning of er culture- comprise- tangibles – products , infra + intangibles -law, morals, values, skills ,acceptable to society • Business ethics –satyam –punishments • Productivity culture- manpower efficiency • Total quality culture- conforming to global practices • Org culture- behavior, autocratic , professional • Top program- top of temple- productivity+ innovation+ new markets- fig • Individual leaders- great leader with vision-DA • Corporate values- leader. Facilitators • Entrepreneurial vs. admin culture- admin focus on existing opportunities, structure, procedural controls , vs. er governed by perceptions of opportunities, vision, social values, committed to ideas .Credo of entrepreneurs- list to ref

9. Barriers / reasons for failure of er due to personal pulls in spite of suitable envoi – • -Lack of 1-viable concept.2- market knowledge,3- technical skills,4-seed capital,5- business know how,6- motivation • 6-complecency,7- social stigma,8-distractions,9-legal constraints and regulations,10-monoploy and protectionism,11-inhibitions due to patents • Steps to change er culture- • Not a magical change but if one 1- starts at top and lead the enterprise, 2- attune to culture of innovation, 3-remove the hidden obstacles, 4-create a mkt culture, 5- create an integrated enterprise culture, 6- create listening envoi, 7-absorb competing technology and involve people, 8- don’t let product innovation fool u.9-be flexible and open for diversification, and new ideas,10-alwys b ready to change cultures • New generation er- • Matching to opening of economy and reforms, envoi friendly to society

10. Similarities and differences bet er and intrapreneur • Intrapreneur or corporate entrepreneur brings new ventures within the confines of existing corporation/co. expands, explore new opportunities thru new combination of existing resources of co. • Concept of intrapreneurship requires that top exe inside the co should b encouraged to er within the enterprise rather than going outside. • Differentiating points – • 1-er an independent businessman vs. intra is semi-independent on the promoter/owner of corp. • 2-er himself raise capital from various sources and guarantees returns to investors. Creditors • 3- er bears full risk of his business , intra does not for business he develops. • 4- er operates from outside and intra fro within an org. • Similarities- both innovate, brings growth, manage risks, aggressive, posses skills. produce results, take decisions • Mgr vs. er-

12. Intrapreneur activities- • 1-Corporate venturing- like exploring new markets, forming separate sbu for new product development,2- organizational innovativeness- like new systems procedures, 3-self renewal- reorganizing strategies etc,4- proactive ness. aggressive, bold, risk taking approaches, not as a follower in competition • Types of corporate entrepreneurs- • Er-ship in1-Administrative- introducing integrated, holistic approaches, 2-opportunistic- bank mgr advances loans in high risk for better returns , 3-acqusitive- creating jv’s, m&a, 4-Immitative,- piggy rides 5-Incubative-creating futuristic startups. • Intrapreneur culture vs. corporate cultures- • flat, and not hierarchical working, close , enjoyable working relationship, more direct involvement, no whims and fancies ,set styles and over restrictive.Climate of encouragement, trial and experimentation, no insistence as per preconceived initial parameters, mutidisplinary team approach, long term horizon, volunteering, reward systems, top mgt wholehearted supports • Fostering intrapreneurial cultures- thru corporate strategies, learning org, values to new developments, encourage diverse thinking.

14. Entrepreneurship Development • Concepts of E.D.fig • What is Entrepreneurship ?– • A process undertaken by e.r to augment business interest. • An exercise involving innovation and creativity that will go towards establishing enterprise. • A composite skill comprising many qualities and traits- like tangible-imagination, readiness for taking risks, ability to use all factors of production, capital. Labor, land + intangible- ability to mobilize scientific and technological advances, An ability to best use of resources and put for max advantages. • the propensity of mind to take calculated risks with confidence to achieve a predetermined business or industrial objective. The risk taking ability of the individual broadly coupled with correct decision making. • Commercial class is a myth- guju,nadar community-any one can join class. of e-ship. • Mercantile societies-with traders outlook, market oriented outlook / performances r long established in various countries

15. But desirable for developing economies in our national interest, need is new species of e.r. for serving balanced socio economic development • Conflict between social objectives and economic imperatives to b resolved by e.r. in own mind and then initiate/to participate in economic growth including industrial development. So e-ship needs high sense of social objectivity.-fig • Stimulation of e.r-ship- based on internal and external business environment variables available in country-like family run or psu domination or educated young, capital formation, supportive govt programs, availability of training , scope for innovations, culture for collaborative relationships. • Def- A.H.Cole – Entrepreneurship is purposeful activity of an individual or a group of associated individuals undertake to initiate , maintain or organize a profit oriented business unit for the production or distribution of economic goods and services. • A function of creating something new, organizing and coordinating and undertaking risk and handling economic uncertainty.

16. Def-Higgins-The function of seeing investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labor, arranging for supply of r.m. and selecting top mgr’s for day 2 day operation of et-se • Characteristics of entrepreneurship- • Peter Ducker- neither a science nor n art, It is a practice with knowledge base i.e. - means to an end and end is also visible thru practice. Fig • Innovation and entrepreneurship interrelated, a complex phenomenon, an attitude in society- vision- few provide role models • SME’s to industry need right climate for successful entrepreneurship. • Climate to provide technical know-how, managerial skills and all business management skills- growth in mgt education provides a good base. • Technological advances in socio economic environment create new needs for er-ship- lpg provides a base.

17. Japanese experience- participative mgt, work culture-quality circles, loyalty and pride of org provide mutual respect for other developing countries to strategize and bring er-ship culture. • Theories of entrepreneurships r mainly related to • 1-theory economic growth and economic systems- capitalism or socialism or mixed economy • 2-theory high achievements • 3- theory of change • 4- theory of profit • 5- theory of social change • 6- theory of market equilibrium • 7- theory of cultural values- attitudes • Flow chart of industrial en-ship-fig • Evolution of concept of Entrepreneur- • E-r- an imp input in eco.dev.a catalyst of dev as we all prosper with him or else remain poor. • Concept of e.r. varies from country to country and period to period and level of eco dev thoughts and perception

18. Entrepreneur vs. entrepreneurship • Refers to person vs. refers to process, visualiser - vision- so on-ex • Entrepreneur vs. manager- • Two sides of coin • A professional manager- specialized in work of planning, organizing, leading, directing and controlling the efforts of others with the help of systems , knowledge and principles, • subscribes to standard practices , codes , ethics • To be p. mgr – 1-gets good insight of job, 2-updates continuously, 3-maintains performance oriented relationships with colleagues, 4- collaborative , cooperative with stake holders and customers, 5- communicative • Professional mgt- features – 1-has sound mgt knowledge, 2-uses mgt tools-analytical, appraisals etc,3- separates mgt disciplines- coo, cfo etc, 4- maintain code of conducts- consumer satisfactions, educations, csr, 5- membership with professional associations

19. Entrepreneurship Development. 1- Concept of E.D. • Industrialization is an ongoing process which accelerates economic growth and induces social change. • The success of India’s economic growth closely linked to its capabilities to manufacture and export quality products. • Emphasis on growth thru market oriented process influenced mainly changing customer, competition, changed conditions thru LPG • The process of socio economic change is an intrinsic part of human civilization. Agriculture, industrial, information activities benefited all. • Economic reforms of 1991- its invigorating effects, gdp growth, needs to sustained with transparency, quality awareness,tqm, in globally competitive environment. • Sustained economic growth - To achieve need to devise efficient and effective political, economic, social, technological and cultural strategies in coordinated manner for all sectors of the economy with involvement of people.

20. Economic development- possible thru comprehensive national planning for socio economic transformation. For rapid ad balanced development Needs 1-objective planning,2-generate favorable public response • Laws of dynamics of eco-dev- • 1-social law- developmental urge of society, impulse of change, for self reliance and willingness to observe discipline leading actions • 2-political law- Harmonizing conflicting claims between undeveloped and under developed regions ,sectors, section of society etc • 3-technological law-ED depends upon identification and insistence of economies of scale and operational choice of technology of high degree resolutions ,conflict of capital with labor. so balanced lse+sme. capital intensive or labor intensive. • 4-administrative law—ed takes place in relation to admin caliber ,motivation and infrastructure facilities-of social, educational, financial, technical, distributional, medical, logistical etc.

21. 5-enterprenurial law-ed originates and fosters in relation to strength and health of local entrepreneurship with innovative propensity, management capabilities. ER powers the process of ED • 6-commercial law- Ed depends upon balance of trade ,Imports and exports composition relates - capital goods etc, • 7-Financial law – ED directly relates to national savings, income, investments policies in conformity with national priorities and real needs on social justice, economic stability, and national security leads to increased savings • Direction of ED-trends affecting ED. • 1- Technology as resource,2-domestic and international mkts,3-role of inventions,,4-govt as stimulator, 5-enterperneurial and intra-preneurial dev,6-innovative capital formation,7-active financial sector,8-innovative etrperebeuraship,9-progressive mgt,10-quality as agoal,11-customer as king,12-collaborative relationships. • Man -crucial factor in development, Human resource. • Lack of entrepreneurship inhibits the process of industrialsation