Professional Documents
Culture Documents
Introduction
What is Entrepreneurship?
Eship can be described as a creative and innovative response to the environment. Such responses can take place in any field of social endeavour business, agriculture, education, social work and the like. Doing new things or doing things that are already being done in a new way is Eship. Joseph Schumpeter says Eship is a process requiring innovation.
Importance of Eship
Wealth creation Economic Development Self Development Employment including Self employment Nation Building Social Eship
Characteristics of Eship
Need for achievement Desire for responsibility Preference for moderate risks Perception of probability of success Stimulation by feedback
The Individual
3 main factors which influence individuals behavior: Entrepreneurial motivation Personal involvement Coping capability
Environment
Economic and political environment Awareness of financial & commercial institutions Should know which industries are encouraged for small entrepreneurs Should know what raw materials are available & where. Should be well aware of the infrastructure, transportation facilities, power, market in proposed locations of his enterprise
Socio-cultural factors
Family background & norms & values of immediate social circle contribute to Eship development. Following aspects of normative behavior relevant 4 Eship: - Family expectations & pressures - Familys role in small business
Support Systems
Govt support Banks & other financial institutions
Women Entrepreneurship
Introduction
Main reasons for slow economic growth absence of women in mainstream economic activities Not many women in corporate world Increasing slowly in corporate world..
Examples
Shehnaz Hussein Ekta Kapoor Vandana Luthra VLCC Shri Mahila Udyog Lijjat Papad Kiran Mazumdar Shaw Biocon Ltd
Innovation
Introduction
Intense competition Fast changing markets Technologies
Innovation acquired Importance
What is Innovation?
Its not a technical term, neither science or technology Its an economic & social term Is investing of resources 2 create new wealth or Investing of wealth 2 create new resources Always mkt focused as measured by assessing its impact on environment
Requires disciplined work force I = f (E) Not restricted to a large enterprise but includes any kind of activity
Innovation is an effort to create purposeful focused change in an enterprises economic or social potential..
Ruling assumption of Innovative strategy: WHATEVER EXISTS IS AGING Is on the premise that existing pdts & services, mkts, distribution channels sooner or later go down..
Motto of strategy of Ongoing business BETTER & MORE Innovation NEW & DIFFERENT Innovative strategy is planned out by systematically getting rid of old & obsolete..
One needs innovation: To face competition To stand out in clutter To survive To solve problems..
Understand the pdt ( also competitors) Visualise by making lot of prototypes Evaluate & Re-evaluate Implement Team need leaders & mentors, not bosses Fresh ideas occur faster in a fun workplace
Rural Entrepreneurship
Barriers to Entrepreneurship
Eship fail due to several barriers & problems: Lack of viable concept Lack of market knowledge Lack of technical knowledge
Lack of seed capital Lack of business know-how Competency-lack of motivation Legal constraints & regulations
Types of Entrepreneurs
Innovating Entrepreneurs: they are creative, aggressive on experimentation, cleverly put attractive possibilities into practice, helpful for the country, transformation in lifestyle, commonly found in developed countries. Imitative Entrepreneurs: readiness to adopt innovation, imitate technology, suitable for underdeveloped countries.
Fabian Entrepreneurs: traditionally bounded, Very cautious skeptical while practicing any change, shy and lazy, follow footsteps of their predecessors, use old techniques of production, Dealings determined by customs, religion, tradition & past practices
Drone Entrepreneurs: conservative or orthodox in outlook, Refusal to adopt & use opportunities to make changes in production, May even suffer loses, Laggards as they continue in tradition methods, When their pdt loses marketability they are pushed out of mkt
Intrapreneurship
Definition
Intrapreneur is an entrepreneur within an already existing (established) organisation. It is an entrepreneurial behaviour displayed by people within large organisations.
Characteristics of an Intrapreneur
Creates new ventures Innovates products/services Innovates processes Proactive Risk-taking Renews organisation Competitively aggressive
Push factors: Reactive reasons Global expansion as a compulsion due to competition & rigidity in the domestic market
Tariff Barriers: Tax levied on goods traded internationally When imposed on goods entering into the country is referred to import duty To increase the demand of domestic pdts Quota: Limit on the no. of units that can be imported
Technical Barriers Exchange controls Direct & Indirect Restrictions on Foreign Investment Transportation cost