What is an Entrepreneur?

• An Entrepreneur (ahn’tra pra nur) is a person who

organizes and manages a business undertaking,
assuming the risk for the sake of profit. Any person
(any age) who starts and operates a business is an
entrepreneur.
• Are individuals acting independently or as part of an
organization
• Create a new venture or develop an innovation &
take risks entering them into the marketplace
• Can be independent individuals
• Can surface in an organization at any level
• Ent =Creation of a new company
Defining Entrepreneurship
Strategic Entrepreneurship:- Ent. actions based on a
strategic perspective
Ent. actions based on a strategic perspective

Corporate Entrepreneurship
An individual or a group in an organization creates a new
venture or develops an innovation
Invention
Creating or developing a new product or process
Innovation
Creating a commercial product from an invention

Imitation
Adoption of innovation by a population of similar firms
• The Entrepreneurial Process involves all the
functions, activities and actions associated with perceiving
opportunities and creating organizations to pursue them
• The Nature of Entrepreneurship
Entrepreneur
 Someone who engages in entrepreneurship.

Entrepreneurship
 The process of planning, organizing, operating, and assuming the risk of a business
venture.

• 3 M’s of ENTREPRENEURSHIP
 Management
 Money
 Marketing
 Innovation

 Innovation is the process of creating a commercial

product from an invention

• Invention brings something new into being

• Innovation brings something new into use

 Innovation is a key outcome firms seek through

entrepreneurship and is often the source of competitive
success
 Innovations produced in large established firms
are often referred to as corporate
entrepreneurship
 Definition of International
Entrepreneurship
•International entrepreneurship is a combination of innovative,
proactive and risk-seeking behaviour that crosses national
borders and is intended to create value in organizations
(McDougall and Oviatt, 2000).

•Entrepreneurship can:
– Fuel economic growth
– Create employment
– Generate prosperity for citizens
There’s a strong positive relationship between rates of entrepreneurial activity &
economic development in a nation

•There must be a balance (in the culture) between

Successful entrepreneurial firms
–Provide appropriate autonomy
–Incentives for individual initiative
–Promote cooperation and group ownership of an innovation
The Role of Entrepreneurship in Society
Capital formation
Generation of employment
Increase in Per capita income
Reduce concentration of wealth
Balanced regional development
Resource mobilization

The Entrepreneur Indicator

The Talent Chain
Inner-Outer Ego Balance
The Talent-Temperament Relationship
The Strength of Team
The Presence (or otherwise) of Social
TALENT, TEMPERAMENT, TECHNIQUE

Temperament

Talent Technique
THE ENTREPRENEUR’S FACETS -
The six character themes
STRUCTURE OF ENTREPRENEURIAL ORGANIZATIONS

Identifying a Genuine Business Opportunity

Where are they?

Who are my
customers?

At what price
will they buy my
In what product?
quantities will
they buy?

How will my product

vary from those of
Who are my
my competitors?
competitors?
ENTREPRENEUR, OPPORTUNITY AND RESOURCE

Uncertainty

Entrepreneur Opportunity

Fits & Gaps

Uncertainty Uncertainty

Resource
s
Uncertainty
Entrepreneurial Framework
CONTEXT

Adaptation
ENTREPRENEUR

Creativity
Analyze
Fits & Conviction
OPPORTUNITY Gaps

Communication RESOURCES

12 |
 Entrepreneurial Process
Individual variables: skill, profile, motivations…
Group-level variables: reactions from customers, investors, potential employees…
Societal-level variables: governmental policies, economic conditions…

Idea / Assembling
Decision Analysing
Opportunity resources: Launch
to proceed the project
recognition team, etc …

Build /
Grow

Harness
 A MODEL OF THE ENTREPRENEURIAL PROCESS
Personal Personal Sociological Personal Organizational
Achievement Risk taking Networks Entrepreneur Team
Locus of control Job Teams Leader Strategy
Ambiguity dissatisfaction Parents Manager Structure
tolerance Job loss Family Commitment Culture
Risk taking Education Role models Vision Products
Personal values Age
Education Commitment
Experience

Innovation Triggering event Implementation Growth

Environment Environment Environment

Opportunities Competition Competitors
Role models Resources Customers
Creativity Incubator Suppliers
Government policy Investors
Bankers
Lawyers
Resources
 ENTREPRENEUR?
The Ten D’s (1)
Dream
– Entrepreneurs have a vision of what the future could be like for them and their
business. And, more importantly, they have the ability to implement their
dreams.
Decisiveness
– They don't procrastinate. They make decisions swiftly. Their swiftness is a key
factor in their success.
Doers
– Once they decide on a course of action, they implement it as quickly as possible.
Determination
– They implement their ventures with total commitment. They seldom give up,
even when confronted by obstacles that seem insurmountable.
Dedication
– They are totally dedicated to their business, sometimes at considerable cost to
their relationships with their friends and families. They work tirelessly. Twelve-
hour days, and seven-day work weeks are not uncommon when an
entrepreneur is striving to get a business off the ground.
 The Ten D’s (2)
Devotion
– Entrepreneurs love what they do. It is that love that sustains them when the
going gets tough. And it is love of their product or service that makes them so
effective at selling it.
Details
– It is said that the devil resides in the details. That is never more true than in
starting and growing a business. The entrepreneur must be on top of the critical
details.
Destiny
– They want to be in charge of their own destiny rather than dependent on an
employer.
D-Marks
– Getting rich is not the prime motivator of entrepreneurs. Money is more a
measure of their success. They assume that if they are successful they will be
rewarded.
Distribute
– Entrepreneurs distribute the ownership of their business with key employees
who are critical to the success of the business.
INGREDIENTS FOR A SUCCESSFUL NEW BUSINESS
The Ten F’s
Founders:Every startup company must have a first-class entrepreneur.
Focused:Entrepreneurial companies focus on niche markets. They specialize.
Fast :They make decisions quickly and implement them swiftly.
Flexible:They keep an open mind. They respond to change.
Forever-innovating :They are tireless innovators.
Flat:Entrepreneurial organizations have as few layers of management as
possible.
Frugal:By keeping overhead low and productivity high, entrepreneurial
organizations keep costs down.
Friendly:Entrepreneurial companies are friendly to their customers, suppliers,
and workers.
Fun:It's fun to be associated with an entrepreneurial company.
Fanatic:Completely devoted to the cause
 Successful
Entrepreneurship

The key to success with entrepreneurship and

innovation is moving from:

the invention of ideas

to effective commercialization

& acceptance in the marketplace

 Attributes of Entrepreneurial failure
• Pride/Ego
• ‘Wrong Decisions’: business partner
• Financial problems
• Lack of Expertise
• Too many people involved
• Conflicts
• Not understanding the business fully
• Lack of Devotion to the business rather than its outcome

The entrepreneurial orientation (Miller, 1983)

• Innovation
• Proactive
• Risk Taking
 Agri-Entrepreneurs Example
Fishing Guide
 Three Aspects of Entrepreneurship
1. The identification/recognition of market
opportunity and the generation of a business
idea (product or service) to address the
opportunity.
2. The marshalling and commitment of resources
in the face of risk to pursue the opportunity
3. The creation of an operating business
organization to implement the opportunity-
motivated business
 Successful Entrepreneurs
According to the Small Business Administration, successful
entrepreneurs have five characteristics:
1. Drive, which is defined as the most important attribute. Entrepreneurs
can expect long hours, high stress and endless problems, as they launch
a new business.
2. Thinking Ability, or the characteristic that encompasses creativity,
critical thinking, analytical abilities and originality.
3. Aptitude for Human Relations. This characteristic recognizes the
importance of the ability to motivate employees, sell customers,
negotiate with suppliers and convince lenders. Personality plays a big
part in success in this area.
4. Communication Skills, or the ability to make yourself understood.
5. Technical Ability speaks to the need of the entrepreneur to know their
product and their market. They must consider the long- and short-term
implications of their decisions, their strengths and weaknesses, and their
competition. In short, they need strategic management skills.
Innovation Types:

Most innovations are incremental

Incremental Builds on existing knowledge bases
innovation Provides small improvements in the current
product lines

• Provides significant technological

Radical breakthroughs
innovation • Creates new knowledge
• Is rare because of difficulty and risk
• Requires substantial creativity
• Radical innovations are often best
developed in separate units that start
internal ventures
 Creating Value through Internal Innovation
Process

Cross-functional
product development
teams
Creating value
Entrepreneurial
through
mind set
innovation
Facilitating integration
and innovation
• Shared values
• Entrepreneurial
leadership
 Entrepreneurship
Some advantages
– You are your own boss
– Enjoy the profits from you efforts
– Sense of pride in your business
– Flexibility in your work schedule

Some disadvantages
– Will need to put in long hours
– Need money to start
– Have to keep up with government rules and regulations
– May have to mark hard decisions (hiring, firing, etc.)
– May lose money
 The field of Entrepreneurship
“The scholarly examination of how, by whom, and with what effects
opportunities to create future goods and services are discovered,
evaluated and exploited.
Consequently the field involves the study of sources of
opportunities; the process of discovery, evaluation and
exploitation of opportunities; and the set of individuals who
discover, evaluate and exploit them”

Competition has a new meaning

Competition as positioning (outside-in)
Competition as dominating
(inside-out)
Competition as innovating
(Stevenson & Gumpert, 1985)

The entrepreneurial continuum

Promoter Trustee

Strategic Orientation Driven by perception of Driven by controlled

opportunities resources
Commitment to Opportunities Revolutionary Evolutionary

Commitment of Resources Many stages Single stage

Control of Resources Episodic use or rent Ownership and employment

Management Structure Flat Hierarchical

 Promoter Vs Trustee in Strategic
Orientation
Where is the opportunity? What resources do I
What resources do I need control?
to capitalize on it? What structure
What structure is determines our
appropriate? organization’s relationship
to its mkt?
What opportunity is
appropriate?
 Behind the Business Idea...
Scope
Pursued
quality
Meaning of developme
profit nt

Managerial and
organizational
‘philosophy’

Role in competitive Role towards main

arena stakeholders

Time horizon Pursued

dimensional Competitive system
growth Substitutes
Niche/segm
Suppliers Competitors ent

e
an c
Clients Stakeholders

son
New entrants

con

c on
son
Normann’s

a
nc e
Business Idea

Product system Firm’s structure Offered perspectives/

required contributions
consonance
…the Underlying Strategic
Orientation
Pursued
Scope quality
development
Meaning of
profit

Managerial and
organizational
‘philosophy’

Role in Role towards main

competitive stakeholders
arena Pursued
Time dimensional
horizon growth
 Tension to growth
Securing a
responsibility
entrepreneur’s Stagnation of ‘Diffused tension’
position in
growth Modafil Sell-off of determinants
growing,
orientation market after Euronova
managerially
sharp decline (1989-92)
sophisticated
firms
Availability of Availability of ‘Direct tension’
forty-years address files and determinants
Reduced mail-order sales data-analysis
1 Strong will to grow 2 experience. tools and
growth
potential techniques

3 Availability of 'Cultural' family

financial resources Existing growth Non Previous experience tendency towards
Tension to grow 4
potential competition (Miss Beauté) 'natural' products
agreement

Tension to grow in Direct tension

5 towards a specific
the mail-order
sector business area
(i.e., cosmetics)

Tension to grow in the

mail-order sale of
goods
 The role of knowledge
External context/Environment

Organizational context
External resources/competencies

Organizational and
Governance
Structure
Attitude towards resource/knowledge
Content.
combinations.
Entrepreneurial behavior:
Pursuit of entrepreneurial opportunities,
regardless of internal resources currently
Growth orientation controlled

Strategic context Internal resources/competencies

Behavioral context/Past experiences

 Entrepreneurship Culture
Why an What constitutes an What do citizens
entrepreneurship entrepreneurship culture? want?
culture?
E = relationship with Growth in concentration of firms, A safer society
economic growth & building networks & linkages
social capital
A clean green
Higher levels of education, skills & environment
Best form of job creation for learning
yourself and others in times
More spending on
of ‘jobless’ growth
Growth in intermediary organisations health & education
to whom some tasks are delegated,
Entrepreneurship lasts longer & in different forms of
Caring communities
than any functional aspect of entrepreneurship – new firms, social
business entrepreneurship, entrepreneurial
culture A well-performing
economy & growth
The way we live creatively
in business sectors
with change Direct influence of
internationalisation – technology,
human resources, capital & Style, design,
information flows culture
 What Information are
Entrepreneurs Missing?
Research has identified four areas where entrepreneurial
information is typically incomplete:

1. Risk in the form of financial return to investors

2. Complexity -- the number of inputs with which a business must
deal
3. Ignorance -- what the entrepreneur doesn’t know that he
doesn’t know
4. Indeterminism – not knowing how an entrepreneur’s actions
will affect the outcome
 FFA and Entrepreneurship
During the past decade the Kauffman
Foundation has supported a new FFA initiative
to support entrepreneurship activities
– Awards program (and money)
– Video “You’re the Boss”
– Materials
 Small Scale Industrial
Undertakings
The following requirements are to be complied with by an
industrial undertaking to be graded as Small Scale Industrial
undertaking w.e.f. 21.12.1999

An industrial undertaking in which the investment in fixed assets

in plant and machinery whether held on ownership terms on
lease or on hire purchase does not exceed Rs 10 million.
(Subject to the condition that the unit is not owned,
controlled or subsidiary of any other industrial undertaking)
(Subject to the condition that the unit is not owned, controlled
or subsidiary of any other industrial undertaking)
 Ancillary Industrial Undertakings
The following requirements are to be complied with by an
industrial undertaking for being regarded as ancillary industrial
undertaking: -
An industrial undertaking which is engaged or is proposed to be
engaged in the manufacture or production of parts,
components, sub-assemblies, tooling or intermediates, or the
rendering of services and the undertaking supplies or renders or
proposes to supply or render not less than 50 per cent of its
production or services, as the case may be, to one or more other
industrial undertakings and whose investment in fixed assets in
plant and machinery whether held on ownership terms or on
lease or on hire-purchase, does not exceed Rs 10 million.
 Tiny Enterprises& Women
Entrepreneurs
Tiny Enterprises:
Investment limit in plant and machinery in respect of tiny enterprises
is Rs 2.5 million irrespective of location of the unit.

Women Entrepreneurs:
A Small Scale Industrial Unit/ Industry related service or business
enterprise, managed by one or more women entrepreneurs in
proprietary concerns, or in which she/ they individually or jointly have
a share capital of not less than 51% as Partners/ Shareholders/
Directors of Private Limits Company/ Members of Cooperative
Society.
List of Items Reserved for Exclusive
Manufacture
– Food And Allied Industries
– Textile Products Including Hosiery
– Art Silk/Man-Made Fibre Hosiery
– Wood And Wood Products
– Paper Products
– Leather And Leather Products Including Footwear
– Rubber Products
– Plastic Products
– Injection Moulding Thermo Plastic Products (1)
– Injection Moulding Thermo Plastic Products (2)
– Chemicals And Chemical Products Laboratory Chemicals And
Reagents
 FFA Agri-Entrepreneurship Program
Each state recognizes the agricultural student who has the
best entrepreneurship program.
There is cash award of $100 at the state level.
All entries at the state level go on for national competition.
At the national level, 10 outstanding entrepreneurship
students are recognized.
There is cash award of $1000 for each national winner
The FFA chapters of the national award winners each
receive $500.