Transcript entrepreneurs

MANAGERIAL PROCESS SKILLS
(ENTREPRENEURSHIP)
MMS Sem.-II 2009
Dr. (Mrs.) Vilasini G. Patkar
[email protected]
Dynamics of Entrepreneurship
Entrepreneurs Role In National Development
 A nation cannot march forward if the entrepreneurs are
not at the centre stage of all development efforts.
 Entrepreneurs
play a key role in the economic
development of the nation.
 Strategies have to be implemented effectively with stress
on encouraging entrepreneurship.
Concept of Entrepreneurship
 An entrepreneur is a creative genius who visualizes a
concept and uses ones knowledge, initiative, creative
drive, energy, leadership skills and innovative abilities to
convert an idea into a business proposition.
 Establishes the business activity; undertakes risk, for high
achievement/profits, to attain success in the business
venture.
 Thus, an Entrepreneur is a person and Entrepreneurship
is a process of developing and operating ones own
business.
Unique Traits of Entrepreneurs
 Entrepreneurs are owners and initiators of their business
enterprises who may or may not be managers as well.
 Entrepreneurs are essentially risk-takers, enterprising,
innovative, opportunistic, possess business acumen.
 Entrepreneurs create employment opportunities, create
wealth for themselves, family and nation.
 Entrepreneurs show their presence in every walk of life
– industry, service and business – in the form of micro,
small and medium enterprises.
 Entrepreneurs are dynamic business leaders who
shoulder great responsibilities; have multi-tasking
abilities; have definite planned motives and are highly
focused.
Key Entrepreneurship Skills
 Time Management
 Delegation
 Communication Skill
 Assertiveness (not aggressiveness)
 Dealing with Stress (strength, stability)
 Negotiating Skill
 Vision
 Passion (energy)
 In-depth Understanding (intelligence, understanding)
Decision Making Skills
Intelligence Activity – Environment
Analysis – Study the Conditions
Design Activity – Inventing, developing,
analysing, possible courses of action
Choice Activity – Selecting a particular
course of action
Dynamics of Decision Making Process
 Entrepreneurial Decisions would have both Strategic &
Behavioural Implications (Rational & Participative):
1. Consider Long Term Perspective
2. Economic & Financial Implications
3. Holistic Perspective – entire organisation
4. Employee Considerations
5. Long Lead Time for realising the outcome
6. Difficulty in intervention for changes
7. Policies, Vision & Future Goals
8. Doctrine of Delegation
The Essence of Entrepreneurship
 An entrepreneural enterprise is defined as a Micro, Small,
Medium or large Manufacturing or Service Enterprise,
managed by one or more entrepreneurs as proprietary
concern or other form of organization.
 Entrepreneurship is the practice of starting new
organisations or revitalizing mature organisations,
particularly new businesses generally in response to
identified opportunities.
 Entrepreneurship is a challenge – needs to be handled
smartly.
 Entrepreneurial activities are substantially different
depending on the type of organization that is being started.
The Essence of Entrepreneurship......
 Entrepreneurship ranges in scale from solo projects
(even involving the entrepreneur only for part-time) to
major undertakings creating many job opportunities.
 Many "high-profile" entrepreneurial ventures seek
venture capital or angel funding in order to raise capital
to build the business.
 Angel investors generally seek returns of 20-30% and
more extensive involvement in the business.
 Many kinds of organizations now exist to support
would-be entrepreneurs - specialized government
agencies, business incubators, science parks, and some
NGOs.
Why Entrepreneurship?
Entrepreneurship stems from:
 Economic urge of being self-employed so as to do
something positive.
 Social urge of exercising power over resources and
people.
 Entrepreneurs personal urge of being an independent
decision maker.
 Aspirations of high motivation and enterprising vision.
 Dynamic attitude, unfolding the beaten track and
exploring new vistas of socio-economic ideas.
Thus, entrepreneurs are the pace setters for
future generations in their quest for economic
independence.
Outlook Towards Entrepreneurs
 Political scientists regard entrepreneurs as leaders of the
system .
 Economist view entrepreneurs as the accelerators of
economic growth.
 Sociologists regard entrepreneurs as the torch bearers of
liberalization.
In modern times, more and more youth should make their
livelihood choice - by becoming ‘self-employed’ with the
motive of reasonable earnings and national development –
through the launching of business activities that are broadbased,
competitive
and
profitable.
.
Categories of Entrepreneurs

Entrepreneurs with educational and professional
qualifications who take the initiative and manage
medium and large-scale units.

Entrepreneurs who do not have education or any
formal training in management but have developed
practical skills required for the small-scale sector –
traditional business.

Social entrepreneurs who work in cities and slums to
help communities with lower means of livelihood to
become economically independent.
Categories of Entrepreneurs .....


First generation entrepreneurs who need
government / institutional support in obtaining
finance at concessional rates; along with
entrepreneurship and marketing training.
Entrepreneurs who form Self Help Groups (SHGs)
consisting of minimum 10 members, by pooling
their small savings for starting their own
entrepreneurial activities. They are encouraged by
Banks, Financial Institutions and NGO’s by
sanctioning micro finance, especially for those who
are below the poverty line; thus contributing to the
economic and social wellbeing of their families and
the nation.
Challenges Faced By Entrepreneurs
 The experience of starting business has its own share of roadblocks
– financial, infrastructural ...
 Entrepreneurs face immense challenges in the present globalized
economic circumstances.
 Initial difficulties owing to lack of support of relevant knowledge -
base, legal requirements and network.
 Changing business environment, the choice of business types and
sectors, information gaps, lack of contacts, competitive strategies...
Tips for Entrepreneurial Success
 Learn Reasons for making certain Decisions
 Develop Analytical Skills
 Evolve Great Ideas
 Take a Plunge (Dig a hole and jump into it)
 Be Straight Forward & Outspoken
 Develop tactics of dealing with difficult people
 Adapt to environment – new places, people, situations
 Be Adventurous - Ready to Change, handle Risks
 Aim to give the Unexpected to your Customers